Bill Text: IA HF521 | 2017-2018 | 87th 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 108)(See HF 607.)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2017-03-28 - Withdrawn. H.J. 803. [HF521 Detail]
Download: Iowa-2017-HF521-Introduced.html
House File 521 - Introduced HOUSE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 108) 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 1266HV (2) 87 ec/nh PAG LIN 1 1 DIVISION I 1 2 ALCOHOLIC BEVERAGE CONTROL 1 3 Section 1. Section 123.3, subsection 25, Code 2017, is 1 4 amended to read as follows: 1 5 25. "Licensed premises" or "premises" means all rooms, 1 6 enclosures, contiguous areas, or places susceptible of precise 1 7 description satisfactory to the administrator where alcoholic 1 8 beverages, wine, or beer is sold or consumed under authority 1 9 of a liquor control license, wine permit, or beer permit. 1 10 A single licensed premises may consist of multiple rooms, 1 11 enclosures, areas, or places if they are wholly within the 1 12 confines of a single building or contiguous grounds, or areas 1 13 or places susceptible of precise description satisfactory to 1 14 the administrator. 1 15 Sec. 2. Section 123.3, Code 2017, is amended by adding the 1 16 following new subsection: 1 17 NEW SUBSECTION. 30A. "Original container" means a vessel 1 18 containing an alcoholic beverage that has been lawfully 1 19 obtained, bears a label approved by the alcohol and tobacco 1 20 tax and trade bureau of the United States department of the 1 21 treasury, and has been securely capped, sealed, or corked at 1 22 the location of manufacture. 1 23 Sec. 3. Section 123.22, Code 2017, is amended to read as 1 24 follows: 1 25 123.22 State monopoly. 1 26 1. The division has the exclusive right of importation 1 27 into the state of all forms of alcoholic liquor, except as 1 28 otherwise provided in this chapter, and a person shall not 1 29 import alcoholic liquor, except that an individual of legal age 1 30 may import and have in the individual's possession an amount 1 31 of alcoholic liquor not exceeding one liter or, in the case of 1 32 alcoholic liquor personally obtained outside the United States, 1 33 four liters for personal consumption only in a private home 1 34 or other private accommodation. A distillery shall not sell 1 35 alcoholic liquor within the state to any person but only to 2 1 the division, except as otherwise provided in this chapter. 2 2 This section vests in the division exclusive control within the 2 3 state as purchaser of all alcoholic liquor sold by distilleries 2 4 within the state or imported, except beer and wine, and except 2 5 as otherwise provided in this chapter. The division shall 2 6 receive alcoholic liquor on a bailment system for resale by the 2 7 division in the manner set forth in this chapter. The division 2 8 shall act as the sole wholesaler of alcoholic liquor to class 2 9 "E" liquor control licensees. 2 10 2. No person, acting individually or through another 2 11 acting for the person shall directly or indirectly, or upon 2 12 any pretense, or by any device, manufacture, sell, exchange, 2 13 barter, dispense, give in consideration of the purchase of any 2 14 property or of any services or in evasion of this chapter, or 2 15 keep for sale, or have possession of any intoxicating liquor, 2 16 except as provided in this chapter; or own, keep, or be in any 2 17 way concerned, engaged, or employed in owning or keeping, any 2 18 intoxicating liquor with intent to violate any provision of 2 19 this chapter, or authorize or permit the same to be done; or 2 20 manufacture, own, sell, or have possession of any manufactured 2 21 or compounded article, mixture or substance, not in a liquid 2 22 form, and containing alcohol which may be converted into a 2 23 beverage by a process of pressing or straining the alcohol 2 24 therefrom, or any instrument intended for use and capable of 2 25 being used in the manufacture of intoxicating liquor; or own 2 26 or have possession of any material used exclusively in the 2 27 manufacture of intoxicating liquor; or use or have possession 2 28 of any material with intent to use it in the manufacture of 2 29 intoxicating liquors; however, alcohol may be manufactured 2 30 for industrial and nonbeverage purposes by persons who have 2 31 qualified for that purpose as provided by the laws of the 2 32 United States and the laws of this state. Such alcohol, so 2 33 manufactured, may be denatured, transported, used, possessed, 2 34 sold, and bartered and dispensed, subject to the limitations, 2 35 prohibitions and restrictions imposed by the laws of the United 3 1 States and this state. Any person may manufacture, sell, or 3 2 transport ingredients and devices other than alcohol for the 3 3 making of homemade wine or beer. 3 4 Sec. 4. Section 123.23, subsection 2, Code 2017, is amended 3 5 to read as follows: 3 6 2. At the time of applying for a certificate of compliance, 3 7 each applicant shall submit to the division electronically, 3 8 or in a manner prescribed by the administrator, the name and 3 9 address of its authorized agent for service of process which 3 10 shall remain effective until changed for another, and a list 3 11 of names and addresses of all representatives, employees, or 3 12 attorneys whom the applicant has appointed in the state of Iowa 3 13 to represent it for any purpose. The listing shall be amended 3 14from time to timeby the certificate holder as necessary to 3 15 keep the listing current with the division. 3 16 Sec. 5. Section 123.28, Code 2017, is amended to read as 3 17 follows: 3 18 123.28 Restrictions on transportation. 3 19 1. It is lawful to transport, carry, or convey alcoholic 3 20 liquors from the place of purchase by the division to a state 3 21 warehouse or depot established by the division or from one such 3 22 place to another and, when so permitted by this chapter, it is 3 23 lawful for the division, a common carrier, or other person to 3 24 transport, carry, or convey alcoholic liquor sold from a state 3 25 warehouse, depot, or point of purchase by the state to any 3 26 place to which the liquor may be lawfully delivered under this 3 27 chapter. 3 28 2. The division shall deliver alcoholic liquor purchased 3 29 by class "E" liquor control licensees. Class "E" liquor 3 30 control licensees may deliver alcoholic liquor purchased by 3 31 class "A", "B", or "C" liquor control licensees or class 3 32 "C" micro=distilled spirits liquor control licensees, and 3 33 class "A", "B", or "C" liquor control licensees or class "C" 3 34 micro=distilled spirits liquor control licensees may transport 3 35 alcoholic liquor purchased from class "E" liquor control 4 1 licensees. 4 2 3. A common carrier or other person shall not break or 4 3 open or allow to be broken or opened a container or package 4 4 containing alcoholic liquor or use or drink or allow to be used 4 5 or drunk any alcoholic liquor while it is being transported or 4 6 conveyed, but this. 4 7 4. This section does not prohibit a private person from 4 8 transporting individual bottles or containers of alcoholic 4 9 liquor exempted pursuant to section 123.22 and individual 4 10 bottles or containers bearing the identifying mark prescribed 4 11 in section 123.26 which have been opened previous to the 4 12 commencement of the transportation. 4 13 5. This section does not affect the right of a special 4 14 permit or liquor control license holder to purchase, possess, 4 15 or transport alcoholic liquors subject to this chapter. 4 16 Sec. 6. Section 123.30, subsection 1, paragraph c, Code 4 17 2017, is amended to read as follows: 4 18 c. As a further condition for the issuance of a class "E" 4 19 liquor control license, the applicant shall post a bond in 4 20 a sum of not less than five thousand nor more than fifteen 4 21 thousand dollars as determined on a sliding scale established 4 22 by the division; however, a bond shall not be required if all 4 23 purchases of alcoholic liquor from the division by the licensee 4 24 are madeby cash payment orby means that ensure that the 4 25 division will receive full payment in advance of delivery of 4 26 the alcoholic liquor. 4 27 Sec. 7. Section 123.31, subsections 6 and 7, Code 2017, are 4 28 amended by striking the subsections. 4 29 Sec. 8. Section 123.32, subsection 6, paragraph b, Code 4 30 2017, is amended to read as follows: 4 31 b. Upon receipt of an application having been approved by 4 32 the local authority, the division shall make an investigation 4 33 as the administrator deems necessary to determine that the 4 34 applicant complies with all requirements for holding a license 4 35 or permit, and may require the applicant to appear to be 5 1 examined under oath to demonstrate that the applicant complies 5 2 with all of the requirements to hold a license or permit. If 5 3 the administrator requires the applicant to appear and to 5 4 testify under oath, a record shall be made of all testimony or 5 5 evidence and the record shall become a part of the application. 5 6 The administrator may appoint a member of the division or 5 7 may request an administrative law judge of the department of 5 8 inspections and appeals to receive the testimony under oath 5 9 and evidence, and to issue a proposed decision to approve 5 10 or disapprove the application for a license or permit. The 5 11 administrator may affirm, reverse, or modify the proposed 5 12 decision to approve or disapprove the application for the 5 13 license or permit. If the application is approved by the 5 14 administrator, the license or permit shall be issued. If the 5 15 application is disapproved by the administrator, the applicant 5 16and the appropriate local authorityshall be so notified by 5 17 certified mail and the appropriate local authority shall be 5 18 notified electronically, or in a manner prescribed by the 5 19 administrator. 5 20 Sec. 9. Section 123.33, Code 2017, is amended to read as 5 21 follows: 5 22 123.33 Records. 5 23 Every holder of aliquor controllicenseshall keep a daily 5 24 record, in printed or electronic format, of the gross receipts 5 25 of the holder's businessor permit under this chapter shall 5 26 maintain records, in printed and electronic format, which 5 27 include income statements, balance sheets, purchase and sales 5 28 invoices, purchase and sales ledgers, and any other records as 5 29 the administrator may require. The records required and the 5 30 premises of the licensee or permittee shall be accessible and 5 31 open to inspection pursuant to section 123.30, subsection 1, 5 32 during normal business hours of the licensee or permittee. 5 33 Sec. 10. Section 123.34, subsection 1, Code 2017, is amended 5 34 to read as follows: 5 35 1. Liquor control licenses, wine permits, and beer permits, 6 1 unless sooner suspended or revoked, expire one year from 6 2 date of issuance. The administrator shall give sixty days' 6 3 written notice of the expiration to each licensee or permittee. 6 4 However, the administrator may issue six=month or eight=month 6 5 seasonal licenses, class "B" wine permits, or class "B" beer 6 6 permits for a proportionate part of the license or permit fee 6 7 or may issue fourteen=day liquor control licenses, native wine 6 8 permits, or beer permits as provided in subsection 2. No 6 9 refund shall be made for seasonal licenses or permits or for 6 10 fourteen=day liquor control licenses, native wine permits, or 6 11 beer permits. No seasonal license or permit shall be renewed 6 12except. However, after a period of two months the applicant 6 13 may apply for a new seasonal license or permit for the same 6 14 location. 6 15 Sec. 11. Section 123.49, subsection 2, paragraph b, Code 6 16 2017, is amended to read as follows: 6 17 b. Sell or dispense any alcoholic beverageor beeron 6 18 the premises covered by the license or permit, or permit its 6 19 consumption thereon between the hours of 2:00 a.m. and 6:00 6 20 a.m. on a weekday, and between the hours of 2:00 a.m. on Sunday 6 21 and 6:00 a.m. on the following Monday, however, a holder of a 6 22 liquor control license or retail wine or beer permit granted 6 23 the privilege of selling alcoholic liquor, wine, or beer on 6 24 Sunday may sell or dispense alcoholic liquor, wine, or beer 6 25 between the hours of 8:00 a.m. on Sunday and 2:00 a.m. on the 6 26 following Monday. 6 27 Sec. 12. Section 123.49, subsection 2, paragraph k, Code 6 28 2017, is amended by striking the paragraph. 6 29 Sec. 13. Section 123.51, subsection 1, Code 2017, is amended 6 30 to read as follows: 6 31 1. No signs or other matter advertising any brand of 6 32 alcoholic liquor, beer, or wine shall be erected or placed upon 6 33 the outside of any premises occupied by a licensee or permittee 6 34 authorized to sell alcoholic liquor, beer, or wine at retail. 6 35This subsection does not prohibit the use of signsHowever, 7 1 signs or other advertising matter may be erected or placed 7 2 inside the premises, inside a fence or similar enclosure which 7 3 wholly or partially surrounds thelicensedpremises, or inside 7 4 a window facing outward from the premises. 7 5 Sec. 14. Section 123.175, Code 2017, is amended by striking 7 6 the section and inserting in lieu thereof the following: 7 7 123.175 Class "A" or retail wine permit application and 7 8 issuance. 7 9 1. A person applying for a class "A" or retail wine permit 7 10 shall submit an application electronically, or in a manner 7 11 prescribed by the administrator, which shall set forth under 7 12 oath the following: 7 13 a. The name and place of residence of the applicant. 7 14 b. The names and addresses of all persons or, in the case of 7 15 a corporation, the officers, directors, and persons owning or 7 16 controlling ten percent or more of the capital stock thereof, 7 17 having a financial interest, by way of loan, ownership, or 7 18 otherwise, in the business. 7 19 c. The location of the premises where the applicant intends 7 20 to operate. 7 21 d. The name of the owner of the premises and if the owner of 7 22 the premises is not the applicant, whether the applicant is the 7 23 actual lessee of the premises. 7 24 e. When required by the administrator, and in such form and 7 25 containing such information as the administrator may require, 7 26 a description of the premises where the applicant intends to 7 27 use the permit, to include a sketch or drawing of the premises 7 28 and, if applicable, the number of square feet of interior floor 7 29 space which comprises the retail sales area of the premises. 7 30 f. Whether any person specified in paragraph "b" has ever 7 31 been convicted of any offense against the laws of the United 7 32 States, or any state or territory thereof, or any political 7 33 subdivision of any such state or territory. 7 34 g. Any other information as required by the administrator. 7 35 2. The administrator shall issue a class "A" or retail wine 8 1 permit to any applicant who establishes all of the following: 8 2 a. That the applicant has submitted a completed application 8 3 as required by subsection 1. 8 4 b. That the applicant is a person of good moral character as 8 5 provided in section 123.3, subsection 34. 8 6 c. That the applicant is a citizen of the state of Iowa 8 7 or, if a corporation, that the applicant is authorized to do 8 8 business in the state. 8 9 d. That the premises where the applicant intends to use the 8 10 permit conforms to all applicable laws, health regulations, and 8 11 fire regulations, and constitutes a safe and proper place or 8 12 building. 8 13 e. That the applicant gives consent to a person, pursuant 8 14 to section 123.30, subsection 1, to enter upon the premises 8 15 without a warrant during the business hours of the applicant 8 16 to inspect for violations of the provisions of this chapter or 8 17 ordinances and regulations that local authorities may adopt. 8 18 f. That the applicant has submitted, in the case of a class 8 19 "A" wine permit, a bond in the amount of five thousand dollars 8 20 in a manner prescribed by the administrator with good and 8 21 sufficient sureties to be approved by the division conditioned 8 22 upon compliance with this chapter. 8 23 Sec. 15. Section 123.178B, subsection 4, Code 2017, is 8 24 amended to read as follows: 8 25 4. A person holding a class "C" native wine permit and a 8 26 class "A" wine permit whose primary purpose is manufacturing 8 27 native wine may purchase beer from a wholesaler holding a class 8 28 "A" beer permit for sale at retail for consumption on or off 8 29 the premises covered by the class "C" native wine permit. 8 30 Sec. 16. Section 123.180, subsection 2, Code 2017, is 8 31 amended to read as follows: 8 32 2. At the time of applying for a vintner's certificate of 8 33 compliance, each applicant shall file with the division a list 8 34 of all class "A" wine permittees with whom it intends to do 8 35 business. The listing of class "A" wine permittees as filed 9 1 with the divisionmayshall be amendedfrom time to timeby the 9 2 holder of the certificate of compliance as necessary to keep 9 3 the listing current with the division. 9 4 Sec. 17. Section 123.183, subsection 2, paragraph a, Code 9 5 2017, is amended to read as follows: 9 6 a. Revenue collected from the wine gallonage tax on wine 9 7 manufactured for sale and sold at wholesale in this state, 9 8 and on wine subject to direct shipment as provided in section 9 9 123.187 by a wine manufacturer licensed or permitted pursuant 9 10 to laws regulating alcoholic beverages in this state, shall be 9 11 deposited in the wine gallonage tax fund as created in this 9 12 section. 9 13 Sec. 18. Section 123.187, subsection 2, paragraph c, Code 9 14 2017, is amended to read as follows: 9 15 c. An application submitted pursuant to paragraph "a" 9 16 shall also be accompanied by a bond in the amount of five 9 17 thousand dollars in the form prescribed and furnished by the 9 18 division with good and sufficient sureties to be approved by 9 19 the division conditioned upon compliance with this chapter. 9 20 However, a wine manufacturer that has submitted a bond pursuant 9 21 to section 123.175, subsection32, paragraph "f", shall not be 9 22 required to provide a bond as provided in this paragraph. 9 23 DIVISION II 9 24 BEER PERMITS 9 25 Sec. 19. Section 123.30, subsection 3, paragraph e, 9 26 subparagraph (1), Code 2017, is amended to read as follows: 9 27 (1) A class "E" liquor control license may be issued and 9 28 shall authorize the holder to purchase alcoholic liquor from 9 29 the division only and high alcoholic content beer from a class 9 30"AA""A" beer permittee only and to sell the alcoholic liquor 9 31 and high alcoholic content beer to patrons for consumption off 9 32 the licensed premises and to other liquor control licensees. 9 33 A holder of a class "E" liquor control license may hold other 9 34 retail liquor control licenses or retail wine or beer permits, 9 35 but the premises licensed under a class "E" liquor control 10 1 license shall be separate from other licensed premises, though 10 2 the separate premises may have a common entrance. However, 10 3 the holder of a class "E" liquor control license may also hold 10 4 a class "B" wine or class "C" beer permit or both for the 10 5 premises licensed under a class "E" liquor control license. 10 6 Sec. 20. Section 123.124, Code 2017, is amended by striking 10 7 the section and inserting in lieu thereof the following: 10 8 123.124 Beer permits == classes. 10 9 Permits for the manufacture and sale, or sale, of beer shall 10 10 be divided into four classes, known as class "A", special 10 11 class "A", class "B", or class "C" beer permits. A holder of 10 12 a class "A" or special class "A" beer permit shall have the 10 13 authority as provided in section 123.130. A holder of a class 10 14 "B" beer permit shall have the authority as provided in section 10 15 123.131, and a holder of a class "C" beer permit shall have the 10 16 authority as provided in section 123.132. 10 17 Sec. 21. Section 123.125, Code 2017, is amended to read as 10 18 follows: 10 19 123.125 Issuance of beer permits. 10 20 The administrator shall issue class "A", special class "A", 10 21class "AA", special class "AA",class "B", and class "C" beer 10 22 permits and may suspend or revoke permits for cause as provided 10 23 in this chapter. 10 24 Sec. 22. Section 123.127, Code 2017, is amended by striking 10 25 the section and inserting in lieu thereof the following: 10 26 123.127 Class "A" and special class "A" beer permit 10 27 application and issuance. 10 28 1. A person applying for a class "A" or special class "A" 10 29 beer permit shall submit an application electronically, or in a 10 30 manner prescribed by the administrator, which shall set forth 10 31 under oath the following: 10 32 a. The name and place of residence of the applicant. 10 33 b. The names and addresses of all persons or, in the case of 10 34 a corporation, the officers, directors, and persons owning or 10 35 controlling ten percent or more of the capital stock thereof, 11 1 having a financial interest, by way of loan, ownership, or 11 2 otherwise, in the business. 11 3 c. The location of the premises where the applicant intends 11 4 to operate. 11 5 d. The name of the owner of the premises and if the owner of 11 6 the premises is not the applicant, whether the applicant is the 11 7 actual lessee of the premises. 11 8 e. When required by the administrator, and in such form and 11 9 containing such information as the administrator may require, 11 10 a description of the premises where the applicant intends to 11 11 use the permit, to include a sketch or drawing of the premises 11 12 and, if applicable, the number of square feet of interior floor 11 13 space which comprises the retail sales area of the premises. 11 14 f. Whether any person specified in paragraph "b" has ever 11 15 been convicted of any offense against the laws of the United 11 16 States, or any state or territory thereof, or any political 11 17 subdivision of any such state or territory. 11 18 g. Any other information as required by the administrator. 11 19 2. The administrator shall issue a class "A" or special 11 20 class "A" beer permit to any applicant who establishes all of 11 21 the following: 11 22 a. That the applicant has submitted a completed application 11 23 as required by subsection 1. 11 24 b. That the applicant is a person of good moral character as 11 25 provided in section 123.3, subsection 34. 11 26 c. That the applicant is a citizen of the state of Iowa 11 27 or, if a corporation, that the applicant is authorized to do 11 28 business in the state. 11 29 d. That the premises where the applicant intends to use the 11 30 permit conforms to all applicable laws, health regulations, and 11 31 fire regulations, and constitutes a safe and proper place or 11 32 building. 11 33 e. That the applicant gives consent to a person, pursuant 11 34 to section 123.30, subsection 1, to enter upon the premises 11 35 without a warrant during the business hours of the applicant 12 1 to inspect for violations of the provisions of this chapter or 12 2 ordinances and regulations that local authorities may adopt. 12 3 f. That the applicant has submitted a bond in the amount 12 4 of ten thousand dollars in a manner prescribed by the 12 5 administrator with good and sufficient sureties to be approved 12 6 by the division conditioned upon compliance with this chapter. 12 7 g. If the person is applying for a special class "A" beer 12 8 permit, that the applicant holds or has applied for a class "C" 12 9 liquor control license or class "B" beer permit. 12 10 Sec. 23. Section 123.128, subsection 1, paragraph a, Code 12 11 2017, is amended to read as follows: 12 12 a. All the information required of an applicant by section 12 13 123.127, subsection 1, paragraph "a". 12 14 Sec. 24. Section 123.128, subsection 2, Code 2017, is 12 15 amended to read as follows: 12 16 2. Fulfills the requirements of section 123.127, subsection 12 1712,paragraphparagraphs "b", "c", and "d". 12 18 Sec. 25. Section 123.129, subsection 2, paragraphs a and b, 12 19 Code 2017, are amended to read as follows: 12 20 a. Submits an application electronically, or in a manner 12 21 prescribed by the administrator, which shall state under 12 22 oath all the information required of an applicant by section 12 23 123.127, subsection 1, paragraph "a". 12 24 b.Establishes that the person is of good moral character as 12 25 defined by this chapterFulfills the requirements of section 12 26 123.127, subsection 2, paragraphs "b", "c", and "d". 12 27 Sec. 26. Section 123.129, subsection 2, paragraph d, Code 12 28 2017, is amended by striking the paragraph. 12 29 Sec. 27. Section 123.130, Code 2017, is amended to read as 12 30 follows: 12 31 123.130 Authority under class "A", class "AA",and special 12 32 class "A", and special class "AA"beer permits. 12 33 1. Any person holding a class "A"or class "AA"beer permit 12 34 issued by the division shall be authorized to manufacture 12 35 and sell, or sell at wholesale, beer for consumption off 13 1 the premises, such sales within the state to be made only 13 2 to persons holding subsisting class "A", "B", or "C" beer 13 3 permits, or liquor control licenses issued in accordance with 13 4 the provisions of this chapter. A class "A", class "AA", 13 5or special class "A", or special class "AA"beer permit does 13 6 not grant authority to manufacture wine as defined in section 13 7 123.3, subsection 47. 13 8 2. All class "A"and class "AA"premises shall be located 13 9 within the state. All beer received by the holder of a 13 10 class "A"or class "AA"beer permit from the holder of a 13 11 certificate of compliance before being resold must first come 13 12 to rest on the licensed premises of the permit holder, must be 13 13 inventoried, and is subject to the barrel tax when resold as 13 14 provided in section 123.136. A class "A"or class "AA"beer 13 15 permittee shall not store beer overnight except on premises 13 16 licensed under a class "A"or class "AA"beer permit. 13 17 3. All special class "A"and special class "AA"premises 13 18 shall be located within the state. A person who holds a 13 19 special class "A"or special class "AA"beer permit for the 13 20 same location at which the person holds a class "C" liquor 13 21 control license or class "B" beer permit may manufacture 13 22 and sell beer to be consumed on the premises, may sell at 13 23 retail at the manufacturing premises for consumption off the 13 24 premises beer that is transferred at the time of sale from 13 25 the original container to another container that is no larger 13 26 than seventy=two ounces, may sell beer to a class "A"or class 13 27 "AA"beer permittee for resale purposes, and may sell beer to 13 28 distributors outside of the state that are authorized by the 13 29 laws of that jurisdiction to sell beer at wholesale. 13 30 Sec. 28. Section 123.131, Code 2017, is amended to read as 13 31 follows: 13 32 123.131 Authority under class "B" beer permit. 13 33 1. Subject to the provisions of this chapter, any person 13 34 holding a class "B" beer permit shall be authorized to sell 13 35 beer for consumption on or off the premises. Sales of beer 14 1 for consumption off the premises made pursuant to this section 14 2 shall be made in original containers except as provided in 14 3 subsection 2. However, unless otherwise provided in this 14 4 chapter, no sale of beer shall be made for consumption on 14 5 the premises unless the place where such service is made is 14 6 equipped with tables and seats sufficient to accommodate not 14 7 less than twenty=five persons at one time. 14 8 2. Subject to the rules of the division, sales of beer for 14 9 consumption off the premises made pursuant to this section may 14 10 be made in a container other than the original container only 14 11 if all of the following requirements are met: 14 12 a. The beer is transferred from the original container to 14 13 the container to be sold on the licensed premises at the time 14 14 of sale. 14 15 b. The person transferring the beer from the original 14 16 container to the container to be sold shall be eighteen years 14 17 of age or more. 14 18 c. The container to be sold shall be no larger than 14 19 seventy=two ounces. 14 20 d. The container to be sold shall be securely sealed by a 14 21 method authorized by the division that is designed so that if 14 22 the sealed container is reopened or the seal tampered with, it 14 23 is visibly apparent that the seal on the container of beer has 14 24 been tampered with or the sealed container has otherwise been 14 25 reopened. 14 26 3. A container of beer other than the original container 14 27 that is sold and sealed in compliance with the requirements of 14 28 subsection 2 and the rules of the division shall not be deemed 14 29 an open container subject to the requirements of sections 14 30 321.284 and 321.284A if the sealed container is unopened and 14 31 the seal has not been tampered with, and the contents of the 14 32 container have not been partially removed. 14 33 Sec. 29. Section 123.134, subsection 1, Code 2017, is 14 34 amended to read as follows: 14 35 1. The annual permit fee for a class "A" or special class 15 1 "A" beer permit istwoseven hundred fifty dollars. 15 2 Sec. 30. Section 123.134, subsection 2, Code 2017, is 15 3 amended by striking the subsection. 15 4 Sec. 31. Section 123.135, Code 2017, is amended to read as 15 5 follows: 15 6 123.135 Certificate of compliance == civil penalty. 15 7 1. A manufacturer, brewer, bottler, importer, or vendor of 15 8 beer, or any agent thereof, desiring to ship or sell beer, or 15 9 have beer brought into this state for resale by a class "A" 15 10or class "AA"beer permittee, shall first make application 15 11 for and be issued a brewer's certificate of compliance by the 15 12 administrator for that purpose. The certificate of compliance 15 13 expires at the end of one year from the date of issuance 15 14 and shall be renewed for a like period upon application to 15 15 the administrator unless otherwise revoked for cause. Each 15 16 application for a certificate of compliance or renewal of a 15 17 certificate shall be submitted electronically, or in a manner 15 18 prescribed by the administrator, and shall be accompanied 15 19 by a fee of five hundred dollars payable to the division. 15 20 Each holder of a certificate of compliance shall furnish the 15 21 information in a manner the administrator requires. 15 22 2. At the time of applying for a certificate of compliance, 15 23 each applicant shall file with the division a list of all class 15 24 "A"and class "AA"beer permittees with whom it intends to do 15 25 business and shall designate the geographic area in which its 15 26 products are to be distributed by such permittee. The listing 15 27 of class "A"and class "AA"beer permittees and geographic area 15 28 as filed with the divisionmayshall be amendedfrom time to 15 29 timeby the holder of a certificate of compliance as necessary 15 30 to keep the listing current with the division. 15 31 3. All class "A"and class "AA"beer permit holders shall 15 32 sell only those brands of beer which are manufactured, brewed, 15 33 bottled, shipped, or imported by a person holding a current 15 34 certificate of compliance. Any employee or agent working for 15 35 or representing the holder of a certificate of compliance 16 1 within this state shall submit electronically, or in a manner 16 2 prescribed by the administrator, the employee's or agent's name 16 3 and address with the division. 16 4 4. It shall be unlawful for any holder of a certificate of 16 5 compliance or the holder's agent, or any class "A"or class 16 6 "AA"beer permit holder or the beer permit holder's agent, to 16 7 grant to any retail beer permit holder, directly or indirectly, 16 8 any rebates, free goods, or quantity discounts on beer which 16 9 are not uniformly offered to all retail permittees. 16 10 5. Notwithstanding any other penalties provided by this 16 11 chapter, any holder of a certificate of compliance or any class 16 12 "A"or class "AA"beer permit holder who violates this chapter 16 13 or the rules adopted pursuant to this chapter is subject to a 16 14 civil penalty not to exceed one thousand dollars or suspension 16 15 of the holder's certificate or permit for a period not to 16 16 exceed one year, or both such civil penalty and suspension. 16 17 Civil penalties imposed under this section shall be collected 16 18 and retained by the division. 16 19 Sec. 32. Section 123.136, subsection 1, Code 2017, is 16 20 amended to read as follows: 16 21 1. In addition to the annual permit fee to be paid by all 16 22 class "A"and class "AA"beer permittees under this chapter 16 23 there shall be levied and collected from the permittees on all 16 24 beer manufactured for sale or sold in this state at wholesale 16 25 and on all beer imported into this state for sale at wholesale 16 26 and sold in this state at wholesale, and from special class "A" 16 27and special class "AA"beer permittees on all beer manufactured 16 28 for consumption on the premises and on all beer sold at retail 16 29 at the manufacturing premises for consumption off the premises 16 30 pursuant to section 123.130, subsection 3, a tax of five and 16 31 eighty=nine hundredths dollars for every barrel containing 16 32 thirty=one gallons, and at a like rate for any other quantity 16 33 or for the fractional part of a barrel. However, no tax shall 16 34 be levied or collected on beer shipped outside this state by a 16 35 class "A"or class "AA"beer permittee or sold by one class "A" 17 1or class "AA"beer permittee to another class "A"or class "AA"17 2 beer permittee. 17 3 Sec. 33. Section 123.137, subsection 1, Code 2017, is 17 4 amended to read as follows: 17 5 1. A person holding a class "A", class "AA",or special 17 6 class "A", or special class "AA"beer permit shall, on or 17 7 before the tenth day of each calendar month commencing on the 17 8 tenth day of the calendar month following the month in which 17 9 the person is issued a beer permit, make a report under oath 17 10 to the division electronically, or in a manner prescribed by 17 11 the administrator, showing the exact number of barrels of 17 12 beer, or fractional parts of barrels, sold by the beer permit 17 13 holder during the preceding calendar month. The report shall 17 14 also state information the administrator requires, and beer 17 15 permit holders shall at the time of filing a report pay to the 17 16 division the amount of tax due at the rate fixed in section 17 17 123.136. 17 18 Sec. 34. Section 123.138, subsection 1, Code 2017, is 17 19 amended to read as follows: 17 20 1. Each class "A", class "AA",or special class "A", or 17 21 special class "AA"beer permittee shall keep proper records 17 22 showing the amount of beer sold by the permittee, and these 17 23 records shall be at all times open to inspection by the 17 24 administrator and to other persons pursuant to section 123.30, 17 25 subsection 1. Each class "B" beer permittee, class "C" beer 17 26 permittee, or retail liquor control licensee shall keep proper 17 27 records showing each purchase of beer made by the permittee 17 28 or licensee, and the date and the amount of each purchase and 17 29 the name of the person from whom each purchase was made, which 17 30 records shall be open to inspection pursuant to section 123.30, 17 31 subsection 1, during normal business hours of the permittee or 17 32 licensee. 17 33 Sec. 35. Section 123.139, Code 2017, is amended to read as 17 34 follows: 17 35 123.139 Separate locations == class "A", class "AA",or 18 1 special class "A", or special class "AA"beer permit. 18 2 A class "A", class "AA",or special class "A", or special 18 3 class "AA"beer permittee having more than one place of 18 4 business is required to have a separate beer permit for each 18 5 separate place of business maintained by the permittee where 18 6 beer is stored, warehoused, or sold. 18 7 Sec. 36. Section 123.142, Code 2017, is amended to read as 18 8 follows: 18 9 123.142 Unlawful sale and importation. 18 10 1. It is unlawful for the holder of a class "B" or class 18 11 "C" beer permit issued under this chapter to sell beer, except 18 12 beer brewed on the premises covered by a special class "A" 18 13or special class "AA"beer permit or beer purchased from a 18 14 person holding a class "A"or class "AA"beer permit issued in 18 15 accordance with this chapter, and on which the tax provided in 18 16 section 123.136 has been paid. However, this section does not 18 17 apply to class "D" liquor control licensees as provided in this 18 18 chapter. 18 19 2. It shall be unlawful for any person not holding a class 18 20 "A"or class "AA"beer permit to import beer into this state 18 21 for the purpose of sale or resale. 18 22 Sec. 37. Section 123.143, subsection 3, Code 2017, is 18 23 amended to read as follows: 18 24 3. Barrel tax revenues collected on beer manufactured in 18 25 this state from a class "A"or class "AA"beer permittee which 18 26 owns and operates a brewery located in Iowa shall be credited 18 27 to the barrel tax fund hereby created in the office of the 18 28 treasurer of state. Moneys deposited in the barrel tax fund 18 29 shall not revert to the general fund of the state without a 18 30 specific appropriation by the general assembly. Moneys in the 18 31 barrel tax fund are appropriated to the economic development 18 32 authority for purposes of section 15E.117. 18 33 Sec. 38. Section 123.144, subsection 1, Code 2017, is 18 34 amended to read as follows: 18 35 1. No person shall bottle beer within the state of Iowa, 19 1 except class "A",and special class "A", class "AA", and 19 2 special class "AA"beer permittees who have complete equipment 19 3 for bottling beer and who have received the approval of the 19 4 local board of health as to sanitation. It shall be the duty of 19 5 local boards of health to inspect the premises and equipment of 19 6 class "A",and special class "A", class "AA", and special class 19 7 "AA"beer permittees who desire to bottle beer. 19 8 DIVISION III 19 9 MICRO=DISTILLED SPIRITS 19 10 Sec. 39. Section 123.3, subsection 29, Code 2017, is amended 19 11 to read as follows: 19 12 29. "Micro=distillery" means a business with an operational 19 13 still which, combining all production facilities of the 19 14 business, produces and manufactures less thanfiftyone hundred 19 15 thousand proof gallons of distilled spirits on an annual basis. 19 16 Sec. 40. Section 123.30, subsection 3, paragraph c, Code 19 17 2017, is amended by adding the following new subparagraph: 19 18 NEW SUBPARAGRAPH. (3) A class "C" micro=distilled spirits 19 19 liquor control license may be issued to a micro=distillery but 19 20 shall be issued in the name of the individuals who actually 19 21 own the business. The license shall authorize the holder to 19 22 sell micro=distilled spirits manufactured on the premises of 19 23 the micro=distillery to patrons by the individual drink for 19 24 consumption on the premises. All micro=distilled spirits sold 19 25 by a micro=distillery for on=premises consumption shall be 19 26 purchased from a class "E" liquor control licensee. 19 27 Sec. 41. Section 123.32, subsection 1, Code 2017, is amended 19 28 to read as follows: 19 29 1. Filing of application. An application for a class "A", 19 30 class "B", class "C", or class "E" liquor control license, for 19 31 a class "C" micro=distilled spirits liquor control license, 19 32 for a class "A" micro=distilled spiritspermitlicense, for a 19 33 retail beer permit as provided in sections 123.128 and 123.129, 19 34 or for a class "B", class "B" native, or class "C" native 19 35 retail wine permit as provided in section 123.178, 123.178A, 20 1 or 123.178B, accompanied by the necessary fee and bond, if 20 2 required, shall be filed with the appropriate city council if 20 3 the premises for which the license or permit is sought are 20 4 located within the corporate limits of a city, or with the 20 5 board of supervisors if the premises for which the license or 20 6 permit is sought are located outside the corporate limits of a 20 7 city. An application for a class "D" liquor control license 20 8 and for a class "A" beer or class "A" wine permit, accompanied 20 9 by the necessary fee and bond, if required, shall be submitted 20 10 to the division electronically, or in a manner prescribed by 20 11 the administrator, which shall proceed in the same manner as in 20 12 the case of an application approved by local authorities. 20 13 Sec. 42. NEW SECTION. 123.43 Class "C" micro=distilled 20 14 spirits liquor control license ==== application and issuance ==== 20 15 fees. 20 16 1. A person applying for a class "C" micro=distilled 20 17 spirits liquor control license shall submit an application 20 18 electronically, or in a manner prescribed by the administrator, 20 19 which shall set forth under oath the following: 20 20 a. The name and place of residence of the applicant. 20 21 b. The names and addresses of all persons or, in the case of 20 22 a corporation, the officers, directors, and persons owning or 20 23 controlling ten percent or more of the capital stock thereof, 20 24 having a financial interest, by way of loan, ownership, or 20 25 otherwise, in the business. 20 26 c. The location of the premises where the applicant intends 20 27 to operate. 20 28 d. The name of the owner of the premises and if the owner of 20 29 the premises is not the applicant, whether the applicant is the 20 30 actual lessee of the premises. 20 31 e. When required by the administrator, and in such form and 20 32 containing such information as the administrator may require, a 20 33 description of the premises where the applicant intends to use 20 34 the liquor control license, to include a sketch or drawing of 20 35 the premises and, if applicable, the number of square feet of 21 1 interior floor space which comprises the retail sales area of 21 2 the premises. 21 3 f. Whether any person specified in paragraph "b" has ever 21 4 been convicted of any offense against the laws of the United 21 5 States, or any state or territory thereof, or any political 21 6 subdivision of any such state or territory. 21 7 g. Any other information as required by the administrator. 21 8 2. Except as otherwise provided in this chapter, the 21 9 administrator shall issue a class "C" micro=distilled spirits 21 10 liquor control license to any applicant who establishes all of 21 11 the following: 21 12 a. That the applicant has submitted a completed application 21 13 as required by subsection 1. 21 14 b. That the applicant is a person of good moral character as 21 15 provided in section 123.3, subsection 34. 21 16 c. That the applicant is a citizen of the state of Iowa 21 17 or, if a corporation, that the applicant is authorized to do 21 18 business in the state. 21 19 d. That the premises for which the liquor control license 21 20 is sought is and will continue to be equipped with sufficient 21 21 tables and seats to accommodate twenty=five persons at one 21 22 time, and in areas where such business is permitted by any 21 23 valid zoning ordinance or will be so permitted on the effective 21 24 date of the liquor control license. 21 25 e. That the premises where the applicant intends to use the 21 26 liquor control license conforms to all applicable laws, health 21 27 regulations, and fire regulations, and constitutes a safe and 21 28 proper place or building. 21 29 f. That the applicant is not engaged in the business of 21 30 manufacturing beer. 21 31 g. That the applicant gives consent to a person, pursuant 21 32 to section 123.30, subsection 1, to enter upon the premises 21 33 without a warrant during the business hours of the applicant 21 34 to inspect for violations of the provisions of this chapter or 21 35 ordinances and regulations that local authorities may adopt. 22 1 3. A manufacturer of micro=distilled spirits may be issued 22 2 a class "C" micro=distilled spirits liquor control license 22 3 regardless of whether the manufacturer is also a manufacturer 22 4 of native wine pursuant to a class "A" wine permit. 22 5 4. A class "C" micro=distilled spirits liquor control 22 6 license for a micro=distillery shall be issued and renewed 22 7 annually upon payment of a fee of two hundred fifty dollars. 22 8 Sec. 43. Section 123.43A, subsection 1, Code 2017, is 22 9 amended to read as follows: 22 10 1. Subject to rules of the division, a micro=distillery 22 11 holding a class "A" micro=distilled spiritspermitlicense 22 12 pursuant to this section may sell or offer for sale 22 13 micro=distilled spirits. As provided in this section, sales 22 14 may be made at retail for off=premises consumption when sold 22 15 on the premises of the micro=distillery that manufactures 22 16 micro=distilled spirits. All sales shall be made through the 22 17 state's wholesale distribution system. 22 18 Sec. 44. Section 123.43A, subsection 2, Code 2017, is 22 19 amended to read as follows: 22 20 2. A micro=distillery shall not sell more thanone and 22 21 one=halfnine liters per person per day, of micro=distilled 22 22 spirits on the premises of the micro=distillery. In addition, 22 23 a micro=distillery shall not directly ship micro=distilled 22 24 spirits for sale at retail. The micro=distillery shall 22 25 maintain records of individual purchases of micro=distilled 22 26 spirits at the micro=distillery for three years. 22 27 Sec. 45. Section 123.43A, subsection 4, Code 2017, is 22 28 amended to read as follows: 22 29 4. A class "A" micro=distilled spiritspermitlicense for 22 30 a micro=distillery shall be issued and renewed annually upon 22 31 payment of a fee of five hundred dollars. 22 32 Sec. 46. Section 123.43A, Code 2017, is amended by adding 22 33 the following new subsection: 22 34 NEW SUBSECTION. 4A. Notwithstanding any other provision of 22 35 this chapter, a person engaged in the business of manufacturing 23 1 micro=distilled spirits may sell the micro=distilled spirits 23 2 the person manufactures at retail for consumption on the 23 3 premises of the manufacturing facility by applying for a class 23 4 "C" micro=distilled spirits liquor control license as provided 23 5 in section 123.43. A manufacturer of micro=distilled spirits 23 6 may be granted not more than one class "C" micro=distilled 23 7 spirits liquor control license. 23 8 Sec. 47. Section 123.43A, subsection 6, Code 2017, is 23 9 amended to read as follows: 23 10 6. The division shall issue no more than threepermits 23 11class "A" micro=distilled spirits licenses under this section 23 12 to a person. In addition, a micro=distillery issued apermit 23 13license under this section shall file with the division, on or 23 14 before the fifteenth day of each calendar month, all documents 23 15 filed by the micro=distillery with the alcohol and tobacco 23 16 tax and trade bureau of the United States department of the 23 17 treasury, including all production, storage, and processing 23 18 reports. 23 19 Sec. 48. Section 123.43A, subsection 7, Code 2017, is 23 20 amended by striking the subsection and inserting in lieu 23 21 thereof the following: 23 22 7. A micro=distillery may sell the micro=distilled spirits 23 23 it manufactures to customers outside the state. 23 24 Sec. 49. NEW SECTION. 123.43B Authority under class "C" 23 25 micro=distilled spirits liquor control license. 23 26 1. A person holding a class "C" micro=distilled spirits 23 27 liquor control license for the same location at which the 23 28 person holds a class "A" micro=distilled spirits license may 23 29 sell the person's micro=distilled spirits only at retail to 23 30 patrons by the individual drink for consumption on the licensed 23 31 premises where it was manufactured. 23 32 2. A person holding a class "C" micro=distilled spirits 23 33 liquor control license shall purchase micro=distilled spirits 23 34 the person manufactures from a class "E" liquor control 23 35 licensee only. 24 1 3. Unless otherwise provided by this chapter, the 24 2 provisions of this chapter applicable to liquor control 24 3 licenses shall also apply to class "C" micro=distilled spirits 24 4 liquor control licenses. 24 5 Sec. 50. Section 123.56, subsection 5, Code 2017, is amended 24 6 to read as follows: 24 7 5. Notwithstanding any other provision of this chapter, a 24 8 person engaged in the business of manufacturing native wine may 24 9 sell native wine at retail for consumption on the premises of 24 10 the manufacturing facility by applying for a class "C" native 24 11 wine permit as provided in section 123.178B. A manufacturer 24 12 of native wine may be granted not more than one class "C" 24 13 native wine permit. A manufacturer of native wine may be 24 14 issued a class "C" native wine permit regardless of whether the 24 15 manufacturer is also a manufacturer of micro=distilled spirits 24 16 pursuant to a class "A" micro=distilled spirits license. 24 17 EXPLANATION 24 18 The inclusion of this explanation does not constitute agreement with 24 19 the explanation's substance by the members of the general assembly. 24 20 This bill concerns alcoholic beverage control and matters 24 21 under the purview of the alcoholic beverages division of the 24 22 department of commerce. 24 23 DIVISION I ==== ALCOHOLIC BEVERAGE CONTROL. Code section 24 24 123.3, providing definitions, is amended. The bill adds a 24 25 definition for "original container", which means a vessel 24 26 containing an alcoholic beverage that bears a federally 24 27 approved label and is appropriately sealed at the location 24 28 of manufacture. In addition, the definition of "licensed 24 29 premises" is amended to include noncontiguous areas or places 24 30 susceptible of a precise description. 24 31 Code section 123.22 is amended to allow individuals to 24 32 manufacture, sell, or transport ingredients and devices used to 24 33 make homemade beer. Current law allows this for homemade wine. 24 34 Code section 123.23, concerning a distiller's certificate of 24 35 compliance, is amended to delete a reference that a listing of 25 1 authorized agents of the certificate holder be amended "from 25 2 time to time". The bill does not eliminate the requirement 25 3 that the listing be amended as necessary. 25 4 Code section 123.28, concerning restrictions on 25 5 transportation, is amended by dividing the section into 25 6 numbered subsections and adding a reference to class "C" 25 7 micro=distilled liquor control licenses created by the bill. 25 8 Code section 123.30, concerning liquor control licenses, 25 9 is amended by removing cash payment as a type of payment 25 10 for purchasing alcoholic liquor from the alcoholic beverages 25 11 division. The bill retains language in current law that 25 12 requires payment by other means that ensure the division 25 13 receives full payment in advance of delivery of alcoholic 25 14 liquor. 25 15 Code section 123.31, concerning application contents for 25 16 a liquor control license, is amended by striking provisions 25 17 requiring the applicant to set forth whether the applicant 25 18 possesses a federal gambling stamp and whether, if required, 25 19 all designated security employees have received security 25 20 employee training and certification as required by Code section 25 21 123.32. 25 22 Code section 123.32 is amended to provide that if an 25 23 application for a liquor control license or other permit is 25 24 disapproved by the administrator of the alcoholic beverages 25 25 division, the appropriate local authority shall be notified 25 26 electronically, or in a manner prescribed by the administrator, 25 27 instead of by certified mail. The applicant is still required 25 28 to be notified of the disapproval by certified mail. 25 29 Code section 123.33, concerning records required to be 25 30 maintained by a licensee or permittee, is amended to describe 25 31 the types of records to be maintained, which shall include 25 32 income statements, balance sheets, and purchase and sale 25 33 invoices and ledgers. 25 34 Code section 123.34, concerning seasonal licenses, is 25 35 amended to provide that an applicant may apply for a new 26 1 seasonal permit or license at the same location after two 26 2 months. 26 3 Code section 123.49 is amended to consolidate the rules 26 4 governing Sunday sales of alcoholic liquor, wine, or beer 26 5 within subsection 2, paragraph "b", of that section. 26 6 Code section 123.51, concerning allowable signs and branded 26 7 advertising of a licensee authorized to sell liquor, wine, 26 8 or beer at retail, is amended to provide that signs or other 26 9 advertising matter may be erected inside the premises and 26 10 inside a window facing outward from the premises. 26 11 Code section 123.175, concerning class "A" or retail 26 12 wine permit applications, is stricken and rewritten by the 26 13 bill. The bill provides specifically for the contents of 26 14 the application to be submitted to the administrator of the 26 15 alcoholic beverages division and what the applicant must 26 16 establish before the administrator issues a permit. In 26 17 addition to requirements currently provided in Code section 26 18 123.175, the bill provides that an applicant that is a 26 19 corporation shall list all officers and persons with a certain 26 20 financial interest in the corporation in the application. The 26 21 bill also requires an applicant to state in the application 26 22 whether certain persons required to be listed in the 26 23 application have been convicted of any offense and, if required 26 24 by the administrator of the division, to include in the 26 25 application a sketch or drawing of the premises. Code section 26 26 123.187 is amended to reflect the rewritten Code section. 26 27 Code section 123.178B, concerning class "C" native wine 26 28 permits, is amended to specify that a permittee authorized to 26 29 purchase beer for sale at retail may sell it for consumption 26 30 on or off the premises covered by the class "C" native wine 26 31 permit. 26 32 Code section 123.180, concerning a vintner's certificate of 26 33 compliance, is amended to provide that the listing of class "A" 26 34 wine permittees the applicant intends to do business with that 26 35 is filed with the alcoholic beverages division shall be amended 27 1 as necessary to keep the listing current. 27 2 Code section 123.183 is amended to provide that the 27 3 gallonage tax on wine is collected when the wine is sold at 27 4 wholesale. 27 5 DIVISION II ==== BEER PERMITS. This division eliminates 27 6 class "AA" and special class "AA" beer permits and makes other 27 7 changes relative to beer permits. 27 8 Code section 123.124, concerning beer permit classes, is 27 9 rewritten to reflect the elimination of class "AA" and special 27 10 class "AA" beer permits. The Code section is also amended to 27 11 refer to the Code sections that describe the authority for each 27 12 beer permit class. 27 13 Code section 123.127, concerning class "A" or class "AA" 27 14 and special class "A" or special class "AA" beer permits, is 27 15 stricken and rewritten by the bill. The bill eliminates the 27 16 class "AA" and special class "AA" beer permits and provides 27 17 specifically for the contents of the application to be 27 18 submitted to the administrator of the alcoholic beverages 27 19 division and what the applicant must establish before the 27 20 administrator issues a permit. The bill also increases from 27 21 $5,000 to $10,000 the amount of the bond an applicant must 27 22 submit to the administrator. 27 23 In addition to requirements currently provided in Code 27 24 section 123.127, the bill provides that an applicant that is a 27 25 corporation shall list all officers and persons with a certain 27 26 financial interest in the corporation in the application. The 27 27 bill also requires an applicant to state in the application 27 28 whether certain persons required to be listed in the 27 29 application have been convicted of any offense and, if required 27 30 by the administrator of the division, to include in the 27 31 application a sketch or drawing of the premises. Code sections 27 32 123.128 and 123.129, concerning class "B" and class "C" beer 27 33 permits, are amended to reflect the rewritten Code section. 27 34 Code section 123.130, is amended to eliminate class "AA" 27 35 and special class "AA" beer permits and provides that certain 28 1 special class "A" beer permittees may sell at retail at the 28 2 manufacturing premises for consumption off the premises beer 28 3 that is transferred at the time of sale from the original 28 4 container to another container that is no larger than 72 28 5 ounces. 28 6 Code section 123.131, concerning authority under a class 28 7 "B" beer permit, is amended to provide that sales of beer 28 8 for consumption off the premises may be made in a container 28 9 other than the original container that is no larger than 72 28 10 ounces under certain circumstances and shall be deemed an open 28 11 container for purposes of Code sections 321.284 and 321.284A. 28 12 Code section 123.134, concerning beer permit fees, is 28 13 amended to increase the annual fee for a class "A" or special 28 14 class "A" beer permit from $250 to $750. 28 15 Code section 123.135, concerning a certificate of compliance 28 16 concerning beer, is amended to provide that the listing of 28 17 class "A" permittees and geographic area as filed with the 28 18 alcoholic beverages division shall be amended as necessary to 28 19 keep the listing current. 28 20 Code section 123.136, concerning the barrel tax on beer, 28 21 is amended to provide that the tax applies to all beer 28 22 sold at retail by a special class "A" beer permittee at the 28 23 manufacturing premises for consumption off the premises. 28 24 DIVISION III ==== MICRO=DISTILLED SPIRITS. Code section 28 25 123.3(29), concerning the definition of a micro=distillery, is 28 26 amended to provide that a micro=distillery is a business that 28 27 produces less than 100,000 proof gallons of distilled spirits 28 28 instead of the current limit of 50,000. 28 29 Code section 123.30, concerning liquor control licenses, 28 30 is amended to provide for the issuance of a class "C" 28 31 micro=distilled spirits license which authorizes the holder to 28 32 sell micro=distilled spirits manufactured on the premises for 28 33 consumption on the premises. 28 34 Code section 123.32, concerning applications for certain 28 35 licenses, is amended to add a reference to the class "C" 29 1 micro=distilled spirits liquor control license and to change 29 2 a reference to a class "A" micro=distilled spirits permit to 29 3 a license. 29 4 New Code section 123.43 provides for the information 29 5 necessary for a person to apply for and be issued a class 29 6 "C" micro=distilled spirits liquor control license. The 29 7 bill requires the applicant to submit information regarding 29 8 the applicant and the location of the micro=distillery. The 29 9 application shall also provide that the applicant is of good 29 10 moral character and that the premises for which the permit 29 11 is sought is authorized to sell spirits for consumption 29 12 on the premises by applicable zoning ordinance and is of 29 13 sufficient size. The applicant shall not be engaged in the 29 14 business of manufacturing beer. In addition, a manufacturer of 29 15 micro=distilled spirits may be issued a license regardless of 29 16 whether the manufacturer also manufactures native wine. The 29 17 annual fee for the license shall be $250. 29 18 Code section 123.43A, providing for a class "A" 29 19 micro=distilled spirits permit, is amended. The bill changes 29 20 the permit to a license and eliminates the current one and 29 21 one=half liters per day limit on sales of micro=distilled 29 22 spirits on the premises and instead allows sales of nine liters 29 23 per person per day. The bill also allows the micro=distillery 29 24 to sell the spirits it manufactures to customers outside the 29 25 state. The bill also allows the micro=distillery to sell the 29 26 spirits it manufactures for consumption on the premises of 29 27 the manufacturing facility by applying for a new class "C" 29 28 micro=distilled spirits liquor control license. The bill 29 29 limits a manufacturer to no more than one of the new class "C" 29 30 licenses. 29 31 New Code section 123.43B establishes the authority for a 29 32 class "C" micro=distilled spirits liquor control license. The 29 33 Code section provides that a person holding a license for the 29 34 same location for which it holds a class "A" micro=distilled 29 35 spirits license may sell its micro=distilled spirits only at 30 1 retail to patrons by the individual drink for consumption on 30 2 the licensed premises where it was manufactured, and that the 30 3 person holding the license shall purchase micro=distilled 30 4 spirits it manufactures from a class "E" liquor control 30 5 licensee only. 30 6 Code section 123.56, concerning native wines, is amended to 30 7 allow a manufacturer of native wine to be issued a class "C" 30 8 native wine permit regardless of whether the manufacturer also 30 9 manufactures micro=distilled spirits. LSB 1266HV (2) 87 ec/nh
