Bill Text: IA HF2322 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act providing an automated dispensing device privilege for certain liquor control licensees and beer and wine permittees. (Formerly HSB 594)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2016-03-11 - Rereferred to State Government. H.J. 456. [HF2322 Detail]
Download: Iowa-2015-HF2322-Introduced.html
House File 2322 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 594) A BILL FOR 1 An Act providing an automated dispensing device privilege 2 for certain liquor control licensees and beer and wine 3 permittees. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5243HV (2) 86 ec/nh PAG LIN 1 1 Section 1. Section 123.3, Code 2016, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 6A. "Automated dispensing device" means any 1 4 mechanized device capable of dispensing beer, wine, or spirits 1 5 directly or by remote activation to a patron by an authorized 1 6 liquor control licensee, beer permittee, or wine permittee. 1 7 Sec. 2. NEW SECTION. 123.151 Automated dispensing device 1 8 privilege. 1 9 1. A liquor control licensee, beer permittee, or wine 1 10 permittee shall not allow a patron to serve themselves wine, 1 11 beer, or alcoholic liquor through an automated dispensing 1 12 device except as otherwise authorized pursuant to this section. 1 13 2. A liquor control licensee, beer permittee, or wine 1 14 permittee may apply for and receive authorization from the 1 15 administrator for the privilege to allow patrons to serve 1 16 themselves beer, wine, or spirits, as authorized by the 1 17 license or permit, through an automated dispensing device for 1 18 consumption on the licensed or permitted premises, subject to 1 19 the requirements of this chapter. The privilege of allowing 1 20 patrons to serve themselves beer, wine, or spirits through 1 21 an automated dispensing device shall be noted on the liquor 1 22 control license or permit. 1 23 3. The administrator shall only grant the privilege of 1 24 allowing patrons to serve themselves beer, wine, or spirits 1 25 through an automated dispensing device to the holder of a 1 26 liquor control license, beer permit, or wine permit that 1 27 authorizes the sale of beer, wine, or spirits for consumption 1 28 on the licensed or permitted premises. 1 29 4. The division shall establish by rule the terms and 1 30 conditions under which an automated dispensing device may 1 31 be operated by an authorized liquor control licensee, beer 1 32 permittee, or wine permittee. The rules shall include but not 1 33 be limited to the following: 1 34 a. A requirement that the authorized liquor control 1 35 licensee, beer permittee, or wine permittee activate the 2 1 automated dispensing device and any associated component 2 2 designed to grant access to the device before a patron 2 3 independently dispenses beer, wine, or spirits. 2 4 b. A requirement that the authorized liquor control 2 5 licensee, beer permittee, or wine permittee deactivate the 2 6 automated dispensing device and any associated component 2 7 designed to grant access to the device at the end of each 2 8 business day. 2 9 c. A requirement that the authorized liquor control 2 10 licensee, beer permittee, or wine permittee control and limit 2 11 the amount of beer, wine, or spirits dispensed by the automated 2 12 dispensing device in a single transaction. 2 13 d. A requirement that the authorized liquor control 2 14 licensee, beer permittee, or wine permittee exercise all 2 15 necessary care and employ an adequate number of employees to 2 16 ensure that each purchase through the automated dispensing 2 17 device is made by a person of legal age and that all beer, wine, 2 18 or spirits dispensed through an automated dispensing device is 2 19 only consumed by persons of legal age. 2 20 e. A requirement that the authorized liquor control 2 21 licensee, beer permittee, or wine permittee exercise all 2 22 necessary care and employ an adequate number of employees to 2 23 ensure that a patron served beer, wine, or spirits through an 2 24 automated dispensing device is not intoxicated. 2 25 5. In addition to the penalty provisions of section 123.39, 2 26 the division may rescind the privilege granted a liquor control 2 27 licensee, beer permittee, or wine permittee to allow patrons to 2 28 serve themselves beer, wine, or spirits through an automated 2 29 dispensing device for failure to comply with the requirements 2 30 of this section. 2 31 Sec. 3. TRANSITION AND WAIVER PROVISION. 2 32 1. Notwithstanding any provision of section 123.151, 2 33 as enacted by this Act, to the contrary, a liquor control 2 34 licensee, beer permittee, or wine permittee granted a waiver 2 35 to dispense wine or beer through an automated dispensing 3 1 device as of the effective date of this Act shall be permitted 3 2 to continue to dispense wine or beer through an automated 3 3 dispensing device subject to the conditions provided in the 3 4 waiver until September 30, 2016. 3 5 2. A licensee or permittee who had applied for and 3 6 was denied a waiver to dispense wine or beer through an 3 7 automated dispensing device prior to January 1, 2016, may 3 8 apply for and be granted a privilege to dispense beer, wine, 3 9 or spirits through an automated dispensing device pursuant 3 10 to section 123.151, as enacted by this Act, notwithstanding 3 11 the requirement in section 123.151, subsection 4, paragraph 3 12 "b", that the automated dispensing device and any associated 3 13 component designed to grant access to the device be deactivated 3 14 at the end of each business day, if the licensee or permittee 3 15 acquired the automated dispensing device incapable of being 3 16 deactivated prior to January 1, 2016, and designates, in the 3 17 application, that the automated dispensing device is the device 3 18 that will be used to dispense beer, wine, or spirits pursuant 3 19 to the privilege, if granted. If the licensee or permittee 3 20 replaces or ceases to use the automated dispensing device 3 21 that is incapable of being deactivated, the authority of the 3 22 alcoholic beverages division of the department of commerce to 3 23 grant the licensee or permittee the privilege pursuant to this 3 24 subsection 2 shall cease and the licensee or permittee shall be 3 25 required to comply with all the requirements of section 123.151 3 26 to be granted the privilege to dispense beer, wine, or spirits 3 27 through an automated dispensing device. 3 28 EXPLANATION 3 29 The inclusion of this explanation does not constitute agreement with 3 30 the explanation's substance by the members of the general assembly. 3 31 This bill authorizes certain liquor control licensees, 3 32 beer permittees, and wine permittees to allow patrons to 3 33 serve themselves wine, beer, or spirits through an automated 3 34 dispensing device. 3 35 Code section 123.3 (definitions) is amended to define an 4 1 "automated dispensing device" as any mechanized device capable 4 2 of dispensing beer, wine, or spirits directly or by remote 4 3 activation to a patron by the licensee or permittee. 4 4 New Code section 123.151 authorizes the administrator 4 5 of the alcoholic beverages division of the department of 4 6 commerce to grant the privilege of dispensing wine, beer, 4 7 or spirits through an automated dispensing device to liquor 4 8 control licensees, beer permittees, and wine permittees under 4 9 certain conditions. The privilege, which shall be noted on 4 10 the applicable liquor control license or permit, shall only 4 11 be granted to holders of a license or permit authorized to 4 12 sell beer, wine, or spirits for consumption on the licensed 4 13 premises. The bill directs the alcoholic beverages division to 4 14 adopt rules requiring the applicable liquor control licensee, 4 15 beer permittee, or wine permittee to activate the device and 4 16 any component designed to grant access to the device before 4 17 a patron independently dispenses beer, wine, or spirits, to 4 18 deactivate the device at the end of each business day, to 4 19 limit the amount of wine, beer, or spirits dispensed in a 4 20 single transaction, and to exercise care and employ sufficient 4 21 persons to ensure that only persons of legal age may obtain 4 22 beer, wine, or spirits from the device and that a patron served 4 23 beer, wine, or spirits through an automated dispensing device 4 24 is not intoxicated. The bill grants the alcoholic beverages 4 25 division the authority to rescind the automated dispensing 4 26 device privilege for failure to comply with the requirements of 4 27 this new section. 4 28 The bill includes a transition and waiver provision. The 4 29 transition provision allows a liquor control licensee, beer 4 30 permittee, or wine permittee granted a waiver to dispense 4 31 wine or beer through an automated dispensing device as of the 4 32 effective date of the bill to continue to dispense wine or 4 33 beer through an automated dispensing device subject to the 4 34 conditions provided in the waiver until September 30, 2016. 4 35 The waiver provision provides that a licensee or permittee that 5 1 had applied for and been denied a waiver to dispense wine or 5 2 beer through an automated dispensing device prior to January 1, 5 3 2016, because the device was incapable of being deactivated at 5 4 the end of the business day may have this requirement waived 5 5 and be granted a privilege to dispense beer, wine, or spirits, 5 6 as provided by the bill. LSB 5243HV (2) 86 ec/nh