Bill Text: IA HF2330 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to alcoholic beverage control and matters under the purview of the alcoholic beverages division of the department of commerce. (Formerly HSB 553)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2016-03-01 - Withdrawn. H.J. 374. [HF2330 Detail]
Download: Iowa-2015-HF2330-Introduced.html
House File 2330 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 553) (COMPANION TO SF 2151 BY COMMITTEE ON STATE GOVERNMENT) A BILL FOR 1 An Act relating to alcoholic beverage control and matters under 2 the purview of the alcoholic beverages division of the 3 department of commerce. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5233HV (3) 86 ec/nh PAG LIN 1 1 Section 1. Section 123.9, subsection 5, Code 2016, is 1 2 amended to read as follows: 1 3 5. To grant and issue beer permits, wine permits, special 1 4 permits, liquor control licenses, and other licenses; and to 1 5 suspend or revoke all such permits and licenses for cause under 1 6 this chapter. 1 7 Sec. 2. Section 123.10, subsections 4 and 6, Code 2016, are 1 8 amended to read as follows: 1 9 4. Prescribing forms or information blanks to be used for 1 10 the purposes of this chapter.The division shall prepare, 1 11 print, and furnish all forms and information blanks required 1 12 under this chapter.1 13 6. Providing for the issuance and electronic distribution 1 14 of price lists which show the price to be paid by class "E" 1 15 liquor control licensees for each brand, class, or variety 1 16 of liquor kept for sale by the division, providing for the 1 17 filing or posting of prices charged in sales between class 1 18 "A" beer and class "A" wine permit holders and retailers, as 1 19 provided in this chapter, and establishing or controlling 1 20 the prices based on minimum standards of fill, quantity, or 1 21 alcoholic content for each individual sale of intoxicating 1 22 liquor or beer as deemed necessary for retail or consumer 1 23 protection. However, the division shall not regulate markups, 1 24 prices, discounts, allowances, or other terms of sale at 1 25 which alcoholic liquor may be purchased by the retail public 1 26 or liquor control licensees from class "E" liquor control 1 27 licensees or at which wine may be purchased and sold by class 1 28 "A" and retail wine permittees, or change, nullify, or vary the 1 29 terms of an agreement between a holder of a vintner certificate 1 30 of compliance and a class "A" wine permittee. 1 31 Sec. 3. Section 123.30, subsection 4, Code 2016, is amended 1 32 to read as follows: 1 33 4. Notwithstanding any provision of this chapter to the 1 34 contrary, a person holding a liquor control license to sell 1 35 alcoholicliquorsbeverages for consumption on the licensed 2 1 premises may permit a customer to remove one unsealed bottle 2 2 of wine for consumption off the premises if the customer has 2 3 purchased and consumed a portion of the bottle of wine on the 2 4 licensed premises. The licensee or the licensee's agent shall 2 5 securely reseal such bottle in a bag designed so that it is 2 6 visibly apparent that the resealed bottle of wine has not been 2 7 tampered with and provide a dated receipt for the resealed 2 8 bottle of wine to the customer. A wine bottle resealed 2 9 pursuant to the requirements of this subsection is subject to 2 10 the requirements of sections 321.284 and 321.284A. 2 11 Sec. 4. Section 123.32, subsection 3, Code 2016, is amended 2 12 to read as follows: 2 13 3. Licensed premises for local events. A local authority 2 14 may define, by motion of the local authority, licensed premises 2 15 which shall be used by holders of liquor control licenses, beer 2 16 permits, and wine permits at festivals, fairs, or celebrations 2 17 which are sponsored or authorized by the local authority. The 2 18 licensed premises defined by motion of the local authority 2 19 shall be used by the holders of five=day or fourteen=day class 2 20 "B", class "C", special class "C", or class "D" liquor control 2 21 licenses, or five=day or fourteen=day class "C" native wine or 2 22 class "B" beer permits only. 2 23 Sec. 5. Section 123.34, Code 2016, is amended to read as 2 24 follows: 2 25 123.34 Expiration == seasonal, five=day, or fourteen=day 2 26 license or permit. 2 27 1. Liquor control licenses, wine permits, and beer permits, 2 28 unless sooner suspended or revoked, expire one year from 2 29 date of issuance. The administrator shall give sixty days' 2 30 written notice of the expiration to each licensee or permittee. 2 31 However, the administrator may issue six=month or eight=month 2 32 seasonal licenses, class "B" wine permits, or class "B" beer 2 33 permits for a proportionate part of the license or permit fee 2 34 or may issue fourteen=day liquor control licenses, native wine 2 35 permits, or beer permits as provided in subsection 2. No 3 1 refund shall be made for seasonal licenses or permits or for 3 2 fourteen=day liquor control licenses, native wine permits, or 3 3 beer permits. No seasonal license or permit shall be renewed 3 4 except after a period of two months. 3 5 2. The administrator may issue fourteen=day class "A", 3 6 class "B", class "C", special class "C", and class "D" liquor 3 7 control licenses and fourteen=day class "B" beer and class "C" 3 8 native wine permits. A fourteen=day license or permit, if 3 9 granted, is valid for fourteen consecutive days, but the holder 3 10 shall not sell on the two Sundays in the fourteen=day period 3 11 unless the holder qualifies for and obtains the privilege to 3 12 sell on Sundays contained in section 123.36, subsection 5, and 3 13 section 123.134, subsection 5. 3 14 3. The fee for a fourteen=day liquor control license or 3 15 beer permit is one quarter of the annual fee for that class 3 16 of liquor control license or beer permit. The fee for the 3 17 privilege to sell on the two Sundays in the fourteen=day period 3 18 is twenty percent of the price of the fourteen=day liquor 3 19 control license or beer permit. The fee for a fourteen=day 3 20 class "C" native wine permit is the permit fee provided in 3 21 section 123.179, subsection 4. 3 22 4. The administrator may issue five=day class "A", class 3 23 "B", class "C", special class "C", and class "D" liquor control 3 24 licenses and five=day class "B" beer and class "C" native 3 25 wine permits. A five=day license or permit is valid for five 3 26 consecutive days, but the holder shall not sell alcoholic 3 27 beverages on Sunday in the five=day period unless the holder 3 28 qualifies for and obtains the privilege to sell on Sunday 3 29 pursuant to sections 123.36 and 123.134. 3 30 5. The fee for the five=day liquor control license or 3 31 beer permit is one=eighth of the annual fee for that class of 3 32 license or permit. The fee for the privilege to sell on a 3 33 Sunday in the five=day period is ten percent of the price of 3 34 the five=day liquor control license or beer permit. The fee 3 35 for a five=day class "C" native wine permit is the permit fee 4 1 provided in section 123.179, subsection 4. 4 2 Sec. 6. Section 123.38, subsections 1 and 2, Code 2016, are 4 3 amended to read as follows: 4 4 1. A specialliquorpermit, liquor control license, wine 4 5 permit, or beer permit is a personal privilege and is revocable 4 6 for cause. It is not property nor is it subject to attachment 4 7 and execution nor alienable nor assignable, and it shall 4 8 cease upon the death of the permittee or licensee. However, 4 9 the administrator of the division may in the administrator's 4 10 discretion allow the executor or administrator of a permittee 4 11 or licensee to operate the business of the decedent for a 4 12 reasonable time not to exceed the expiration date of the permit 4 13 or license. Every permit or license shall be issued in the 4 14 name of the applicant and no person holding a permit or license 4 15 shall allow any other person to use it. 4 16 2. Any licensee or permittee, or the licensee's or 4 17 permittee's executor or administrator, or any person duly 4 18 appointed by the court to take charge of and administer the 4 19 property or assets of the licensee or permittee for the benefit 4 20 of the licensee's or permittee's creditors, may voluntarily 4 21 surrender a license or permit to the division. When a license 4 22 or permit is surrendered the division shall notify the local 4 23 authority, and the division or the local authority shall 4 24 refund to the person surrendering the license or permit, a 4 25 proportionate amount of the fee received by the division or 4 26 the local authority for the license or permit as follows: if 4 27 a license or permit is surrendered during the first three 4 28 months of the period for which it was issued, the refund shall 4 29 be three=fourths of the amount of the fee; if surrendered 4 30 more than three months but not more than six months after 4 31 issuance, the refund shall be one=half of the amount of the 4 32 fee; if surrendered more than six months but not more than 4 33 nine months after issuance, the refund shall be one=fourth of 4 34 the amount of the fee. No refund shall be made, however, for 4 35 any specialliquorpermit,nor for aliquor control license, 5 1 wine permit, or beer permit surrendered more than nine months 5 2 after issuance. For purposes of this subsection, any portion 5 3 of license or permit fees used for the purposes authorized in 5 4 section 331.424, subsection 1, paragraph "a", subparagraphs 5 5 (1) and (2), and in section 331.424A, shall not be deemed 5 6 received either by the division or by a local authority. No 5 7 refund shall be made to any licensee or permittee,upon the 5 8 surrender of the license or permit,if there is at the time 5 9 of surrender,a complaint filed with the division or local 5 10 authority,charging the licensee or permittee with a violation 5 11 of this chapter. If upon a hearing on a complaint the license 5 12 or permit is not revoked or suspended, then the licensee or 5 13 permittee is eligible, upon surrender of the license or permit, 5 14 to receive a refund as provided in this section; but. However, 5 15 if the license or permit is revoked or suspended upon hearing, 5 16 the licensee or permittee is not eligible for the refund of any 5 17 portion of the license or permit fee. 5 18 Sec. 7. Section 123.43A, subsection 3, Code 2016, is amended 5 19 to read as follows: 5 20 3. A micro=distillery shall not sell micro=distilled 5 21 spirits other than as permitted in this chapter and shall 5 22 not allow micro=distilled spirits sold to be consumed upon 5 23 the premises of the micro=distillery. However, as a part of 5 24 a micro=distillery tour, micro=distilled spiritsof no more 5 25 than two ounces per person per daymay be tasted pursuant to 5 26 the rules of the division on the premises where fermented, 5 27 distilled, or matured, when no charge is made for the tasting. 5 28 Sec. 8. Section 123.56, subsections 2 and 6, Code 2016, are 5 29 amended to read as follows: 5 30 2. Native wine may be sold at retail for off=premises 5 31 consumption when sold on the premises of the manufacturer, 5 32 or in a retail establishment operated by the manufacturer. 5 33 Sales may also be made to class "A" or retail wine permittees 5 34 or liquor control licensees as authorized by the class 5 35 "A" wine permit. A manufacturer of native wines shall not 6 1 sell the wines other than as permitted in this chapter and 6 2 shall not allow wine sold to be consumed upon the premises 6 3 of the manufacturer. However, prior to sale, native wines 6 4 may be tasted pursuant to the rules of the division on the 6 5 premises where made, when no charge is made for the tasting. 6 6A person may manufacture native wine for consumption on the 6 7 manufacturer's premises, when the wine or any part of it is not 6 8 manufactured for sale.6 9 6. Notwithstanding any other provision of this chapter, 6 10 a person employed by a manufacturer of native wine holding a 6 11 class "A"nativewinepermitteepermit may be employed by a 6 12 brewery with a class "A"nativebeer permit provided the person 6 13 has no ownership interest in either licensed premises. 6 14 Sec. 9. Section 123.92, subsection 2, paragraph a, Code 6 15 2016, is amended to read as follows: 6 16 a. Every liquor control licenseeand, class "B" beer 6 17 permittee, and class "C" native wine permittee, except a class 6 18 "E" liquor control licensee, shall furnish proof of financial 6 19 responsibility by the existence of a liability insurance 6 20 policy in an amount determined by the division. If an insurer 6 21 provides dramshop liability insurance at a new location to 6 22 a licensee or permittee who has a positive loss experience 6 23 at other locations for which such insurance is provided by 6 24 the insurer, and the insurer bases premium rates at the new 6 25 location on the negative loss history of the previous licensee 6 26 or permittee at that location, the insurer shall examine and 6 27 consider adjusting the premium for the new location not less 6 28 than thirty months after the insurance is issued, based on the 6 29 loss experience of the licensee or permittee at that location 6 30 during that thirty=month period of time. 6 31 Sec. 10. Section 123.171, Code 2016, is amended to read as 6 32 follows: 6 33 123.171 Wine certificate, permit, or license required == 6 34 exception for personal use. 6 35 1. A person shall not cause the manufacture, importation, 7 1 or sale of wine in this state unless a certificate or permit 7 2 as provided in this subchapter, or a liquor control license as 7 3 provided in subchapter I of this chapter, is first obtained 7 4 which authorizes that manufacture, importation, or sale. 7 5 2. Any person of legal age may manufacture wine for 7 6 personal use without a class "A" wine permit, subject to the 7 7 requirements of this subsection. Such wine may be consumed 7 8 on the premises or removed from the premises where it was 7 9 manufactured only if the wine is not sold, exchanged, bartered, 7 10 dispensed, or given in consideration of purchase for any 7 11 property or services or in evasion of the requirements of this 7 12 chapter. 7 13 Sec. 11. Section 123.173, subsection 2, Code 2016, is 7 14 amended to read as follows: 7 15 2. A class "A" wine permit allows the holder to manufacture 7 16 and sell, or sell at wholesale, in this state, wineas defined 7 17 in section 123.3, subsection 47. The holder of a class "A" 7 18 wine permit may manufacture in this state wine having an 7 19 alcoholic content greater than seventeen percent by weight or 7 20 twenty=one and twenty=five hundredths percent of alcohol by 7 21 volume for shipment outside this state. All class "A" premises 7 22 shall be located within the state. A class "B" or class "B" 7 23 native wine permit allows the holder to sell wine at retail 7 24 for consumption off the premises. A class "B" or class "B" 7 25 native wine permittee who also holds a class "E" liquor control 7 26 license may sell wine to class "A", class "B",andclass "C", 7 27 and special class "C" liquor control licensees for resale for 7 28 consumption on the premises. Such wine sales shall be in 7 29 quantities of less than one case of any wine brand but not more 7 30 than one such sale shall be made to the same liquor control 7 31 licensee in a twenty=four=hour period. A class "B" or class 7 32 "B" native wine permittee shall not sell wine to other class 7 33 "B" or class "B" native wine permittees. A class "C" native 7 34 wine permit allows the holder to sell wine for consumption on 7 35 or off the premises. 8 1 EXPLANATION 8 2 The inclusion of this explanation does not constitute agreement with 8 3 the explanation's substance by the members of the general assembly. 8 4 This bill makes several changes relative to matters 8 5 under the purview of the alcoholic beverages division of the 8 6 department of commerce. 8 7 Code section 123.9 is amended to add wine permits to the list 8 8 of licenses and permits that are issued by the administrator of 8 9 the alcoholic beverages division. 8 10 Code section 123.10 is amended by striking the requirement 8 11 that the alcoholic beverages division prepare, print, 8 12 and furnish paper forms and by allowing the alcoholic 8 13 beverages division to distribute monthly pricing to licensees 8 14 electronically. 8 15 Code section 123.30(4), concerning the ability of a 8 16 licensee to reseal bottles of wine that have been purchased and 8 17 partially consumed on the premises by their patrons, is amended 8 18 to grant this authority to all liquor control licensees that 8 19 sell alcoholic beverages, and not just to those licensees that 8 20 sell alcoholic liquor. 8 21 Code section 123.32 is amended to specifically list the 8 22 types of liquor control licenses and wine or beer permits that 8 23 may be issued on a temporary basis for local events. 8 24 Code section 123.34, concerning temporary licenses, is 8 25 amended to provide that a special class "C" liquor control 8 26 license and a class "C" native wine permit may be issued on a 8 27 temporary basis and to provide that the fee to obtain a 5=day 8 28 or 14=day class "C" native wine permit is the same as the fee to 8 29 obtain the annual permit. 8 30 Code section 123.38, concerning the nature of a permit 8 31 or license, is amended to eliminate the term "liquor" when 8 32 referring to a special permit. 8 33 Code section 123.43A, concerning micro=distilled spirits, is 8 34 amended to eliminate the amount limit for a tasting as part of 8 35 a tour of the manufacturing facility. The bill provides that 9 1 micro=distilled spirits may be tasted pursuant to rules of the 9 2 alcoholic beverages division. 9 3 Code section 123.56, concerning native wines, is amended 9 4 to provide that tastings of native wine on the premises 9 5 where made shall be allowed pursuant to rules adopted by the 9 6 alcoholic beverages division. The section is also amended to 9 7 strike reference to a class "A" native beer permit and instead 9 8 references a class "A" beer permit in language relating to 9 9 employment of persons who are also employed by a native wine 9 10 manufacturer. The bill also strikes language that pertains 9 11 to wine that is made for personal use when it is made on the 9 12 premises of a manufacturer. 9 13 Code section 123.92, concerning dramshop liability, is 9 14 amended to require class "C" native wine permit holders to 9 15 furnish proof of financial responsibility by obtaining dramshop 9 16 insurance as a condition of obtaining a new or renewal permit. 9 17 Code section 123.171 is amended to allow any person of legal 9 18 age to manufacture wine for personal use without a class "A" 9 19 wine permit if the wine is not sold or otherwise given in 9 20 consideration of purchase for any property or services or in 9 21 evasion of the requirements of Code chapter 123. 9 22 Code section 123.173(2) is amended to authorize class "E" 9 23 liquor control license holders to sell limited quantities of 9 24 wine at wholesale to special class "C" liquor control license 9 25 holders. LSB 5233HV (3) 86 ec/nh
