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:
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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.
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