Bill Text: IA HF607 | 2017-2018 | 87th General Assembly | Enrolled
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 HF 521 and HSB 108.) Effective 7-1-17.
Spectrum: Committee Bill
Status: (Passed) 2017-05-09 - Signed by Governor. H.J. 1149. [HF607 Detail]
Download: Iowa-2017-HF607-Enrolled.html
House File 607 - Enrolled
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 521)
(SUCCESSOR TO HSB 108)
\5
A BILL FOR
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House File 607
AN ACT
RELATING TO ALCOHOLIC BEVERAGE CONTROL AND MATTERS UNDER
THE PURVIEW OF THE ALCOHOLIC BEVERAGES DIVISION OF THE
DEPARTMENT OF COMMERCE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
ALCOHOLIC BEVERAGE CONTROL
Section 1. Section 123.3, subsection 25, Code 2017, is
amended to read as follows:
25. "Licensed premises" or "premises" means all rooms,
enclosures, contiguous areas, or places susceptible of precise
description satisfactory to the administrator where alcoholic
beverages, wine, or beer is sold or consumed under authority
of a liquor control license, wine permit, or beer permit.
A single licensed premises may consist of multiple rooms,
enclosures, areas, or places if they are wholly within the
confines of a single building or contiguous grounds, or areas
or places susceptible of precise description satisfactory to
the administrator.
Sec. 2. Section 123.22, Code 2017, is amended to read as
follows:
123.22 State monopoly.
1. The division has the exclusive right of importation
into the state of all forms of alcoholic liquor, except as
otherwise provided in this chapter, and a person shall not
import alcoholic liquor, except that an individual of legal age
may import and have in the individual's possession an amount
of alcoholic liquor not exceeding one liter or, in the case of
alcoholic liquor personally obtained outside the United States,
four liters for personal consumption only in a private home
or other private accommodation. A distillery shall not sell
alcoholic liquor within the state to any person but only to
the division, except as otherwise provided in this chapter.
This section vests in the division exclusive control within the
state as purchaser of all alcoholic liquor sold by distilleries
within the state or imported, except beer and wine, and except
as otherwise provided in this chapter. The division shall
receive alcoholic liquor on a bailment system for resale by the
division in the manner set forth in this chapter. The division
shall act as the sole wholesaler of alcoholic liquor to class
"E" liquor control licensees.
2. No person, acting individually or through another
acting for the person shall directly or indirectly, or upon
any pretense, or by any device, manufacture, sell, exchange,
barter, dispense, give in consideration of the purchase of any
property or of any services or in evasion of this chapter, or
keep for sale, or have possession of any intoxicating liquor,
except as provided in this chapter; or own, keep, or be in any
way concerned, engaged, or employed in owning or keeping, any
intoxicating liquor with intent to violate any provision of
this chapter, or authorize or permit the same to be done; or
manufacture, own, sell, or have possession of any manufactured
or compounded article, mixture or substance, not in a liquid
form, and containing alcohol which may be converted into a
beverage by a process of pressing or straining the alcohol
therefrom, or any instrument intended for use and capable of
being used in the manufacture of intoxicating liquor; or own
or have possession of any material used exclusively in the
manufacture of intoxicating liquor; or use or have possession
of any material with intent to use it in the manufacture of
intoxicating liquors; however, alcohol may be manufactured
for industrial and nonbeverage purposes by persons who have
qualified for that purpose as provided by the laws of the
United States and the laws of this state. Such alcohol, so
manufactured, may be denatured, transported, used, possessed,
sold, and bartered and dispensed, subject to the limitations,
prohibitions and restrictions imposed by the laws of the United
States and this state. Any person may manufacture, sell, or
transport ingredients and devices other than alcohol for the
making of homemade wine or beer.
Sec. 3. Section 123.23, subsection 2, Code 2017, is amended
to read as follows:
2. At the time of applying for a certificate of compliance,
each applicant shall submit to the division electronically,
or in a manner prescribed by the administrator, the name and
address of its authorized agent for service of process which
shall remain effective until changed for another, and a list
of names and addresses of all representatives, employees, or
attorneys whom the applicant has appointed in the state of Iowa
to represent it for any purpose. The listing shall be amended
from time to time by the certificate holder as necessary to
keep the listing current with the division.
Sec. 4. Section 123.28, Code 2017, is amended to read as
follows:
123.28 Restrictions on transportation.
1. It is lawful to transport, carry, or convey alcoholic
liquors from the place of purchase by the division to a state
warehouse or depot established by the division or from one such
place to another and, when so permitted by this chapter, it is
lawful for the division, a common carrier, or other person to
transport, carry, or convey alcoholic liquor sold from a state
warehouse, depot, or point of purchase by the state to any
place to which the liquor may be lawfully delivered under this
chapter.
2. The division shall deliver alcoholic liquor purchased by
class "E" liquor control licensees. Class "E" liquor control
licensees may deliver alcoholic liquor purchased by class "A",
"B", or "C" liquor control licensees, and class "A", "B", or
"C" liquor control licensees may transport alcoholic liquor
purchased from class "E" liquor control licensees.
3. A common carrier or other person shall not break or
open or allow to be broken or opened a container or package
containing alcoholic liquor or use or drink or allow to be used
or drunk any alcoholic liquor while it is being transported or
conveyed, but this.
4. This section does not prohibit a private person from
transporting individual bottles or containers of alcoholic
liquor exempted pursuant to section 123.22 and individual
bottles or containers bearing the identifying mark prescribed
in section 123.26 which have been opened previous to the
commencement of the transportation.
5. This section does not affect the right of a special
permit or liquor control license holder to purchase, possess,
or transport alcoholic liquors subject to this chapter.
Sec. 5. Section 123.30, subsection 1, paragraph c, Code
2017, is amended to read as follows:
c. As a further condition for the issuance of a class "E"
liquor control license, the applicant shall post a bond in
a sum of not less than five thousand nor more than fifteen
thousand dollars as determined on a sliding scale established
by the division; however, a bond shall not be required if all
purchases of alcoholic liquor from the division by the licensee
are made by cash payment or by means that ensure that the
division will receive full payment in advance of delivery of
the alcoholic liquor.
Sec. 6. Section 123.31, subsections 6 and 7, Code 2017, are
amended by striking the subsections.
Sec. 7. Section 123.32, subsection 6, paragraph b, Code
2017, is amended to read as follows:
b. Upon receipt of an application having been approved by
the local authority, the division shall make an investigation
as the administrator deems necessary to determine that the
applicant complies with all requirements for holding a license
or permit, and may require the applicant to appear to be
examined under oath to demonstrate that the applicant complies
with all of the requirements to hold a license or permit. If
the administrator requires the applicant to appear and to
testify under oath, a record shall be made of all testimony or
evidence and the record shall become a part of the application.
The administrator may appoint a member of the division or
may request an administrative law judge of the department of
inspections and appeals to receive the testimony under oath
and evidence, and to issue a proposed decision to approve
or disapprove the application for a license or permit. The
administrator may affirm, reverse, or modify the proposed
decision to approve or disapprove the application for the
license or permit. If the application is approved by the
administrator, the license or permit shall be issued. If the
application is disapproved by the administrator, the applicant
and the appropriate local authority shall be so notified by
certified mail and the appropriate local authority shall be
notified electronically, or in a manner prescribed by the
administrator.
Sec. 8. Section 123.33, Code 2017, is amended to read as
follows:
123.33 Records.
Every holder of a liquor control license shall keep a daily
record, in printed or electronic format, of the gross receipts
of the holder's business or permit under this chapter shall
maintain records, in printed and electronic format, which
include income statements, balance sheets, purchase and sales
invoices, purchase and sales ledgers, and any other records as
the administrator may require. The records required and the
premises of the licensee or permittee shall be accessible and
open to inspection pursuant to section 123.30, subsection 1,
during normal business hours of the licensee or permittee.
Sec. 9. Section 123.34, subsection 1, Code 2017, is amended
to read as follows:
1. Liquor control licenses, wine permits, and beer permits,
unless sooner suspended or revoked, expire one year from
date of issuance. The administrator shall give sixty days'
written notice of the expiration to each licensee or permittee.
However, the administrator may issue six=month or eight=month
seasonal licenses, class "B" wine permits, or class "B" beer
permits for a proportionate part of the license or permit fee
or may issue fourteen=day liquor control licenses, native wine
permits, or beer permits as provided in subsection 2. No
refund shall be made for seasonal licenses or permits or for
fourteen=day liquor control licenses, native wine permits, or
beer permits. No seasonal license or permit shall be renewed
except. However, after a period of two months the applicant
may apply for a new seasonal license or permit for the same
location.
Sec. 10. Section 123.49, subsection 2, paragraph b, Code
2017, is amended to read as follows:
b. Sell or dispense any alcoholic beverage or beer on
the premises covered by the license or permit, or permit its
consumption thereon between the hours of 2:00 a.m. and 6:00
a.m. on a weekday, and between the hours of 2:00 a.m. on Sunday
and 6:00 a.m. on the following Monday, however, a holder of a
liquor control license or retail wine or beer permit granted
the privilege of selling alcoholic liquor, wine, or beer on
Sunday may sell or dispense alcoholic liquor, wine, or beer
between the hours of 8:00 a.m. on Sunday and 2:00 a.m. on the
following Monday.
Sec. 11. Section 123.49, subsection 2, paragraph k, Code
2017, is amended by striking the paragraph.
Sec. 12. Section 123.51, subsection 1, Code 2017, is amended
to read as follows:
1. No signs or other matter advertising any brand of
alcoholic liquor, beer, or wine shall be erected or placed upon
the outside of any premises occupied by a licensee or permittee
authorized to sell alcoholic liquor, beer, or wine at retail.
This subsection does not prohibit the use of signs However,
signs or other advertising matter may be erected or placed
inside the premises, inside a fence or similar enclosure which
wholly or partially surrounds the licensed premises, or inside
a window facing outward from the premises.
Sec. 13. Section 123.175, Code 2017, is amended by striking
the section and inserting in lieu thereof the following:
123.175 Class "A" or retail wine permit application and
issuance.
1. A person applying for a class "A" or retail wine permit
shall submit an application electronically, or in a manner
prescribed by the administrator, which shall set forth under
oath the following:
a. The name and place of residence of the applicant.
b. The names and addresses of all persons or, in the case of
a corporation, the officers, directors, and persons owning or
controlling ten percent or more of the capital stock thereof,
having a financial interest, by way of loan, ownership, or
otherwise, in the business.
c. The location of the premises where the applicant intends
to operate.
d. The name of the owner of the premises and if the owner of
the premises is not the applicant, whether the applicant is the
actual lessee of the premises.
e. When required by the administrator, and in such form and
containing such information as the administrator may require,
a description of the premises where the applicant intends to
use the permit, to include a sketch or drawing of the premises
and, if applicable, the number of square feet of interior floor
space which comprises the retail sales area of the premises.
f. Whether any person specified in paragraph "b" has ever
been convicted of any offense against the laws of the United
States, or any state or territory thereof, or any political
subdivision of any such state or territory.
g. Any other information as required by the administrator.
2. The administrator shall issue a class "A" or retail wine
permit to any applicant who establishes all of the following:
a. That the applicant has submitted a completed application
as required by subsection 1.
b. That the applicant is a person of good moral character as
provided in section 123.3, subsection 34.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state.
d. That the premises where the applicant intends to use the
permit conforms to all applicable laws, health regulations, and
fire regulations, and constitutes a safe and proper place or
building.
e. That the applicant gives consent to a person, pursuant
to section 123.30, subsection 1, to enter upon the premises
without a warrant during the business hours of the applicant
to inspect for violations of the provisions of this chapter or
ordinances and regulations that local authorities may adopt.
f. That the applicant has submitted, in the case of a class
"A" wine permit, a bond in the amount of five thousand dollars
in a manner prescribed by the administrator with good and
sufficient sureties to be approved by the division conditioned
upon compliance with this chapter.
Sec. 14. Section 123.177, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 3. A class "A" wine permit holder may sell
wine to a person holding both a class "B" beer permit and a
class "A" beer permit pursuant to section 123.131, subsection
4.
Sec. 15. Section 123.178B, subsection 4, Code 2017, is
amended to read as follows:
4. A person holding a class "C" native wine permit and a
class "A" wine permit whose primary purpose is manufacturing
native wine may purchase beer from a wholesaler holding a class
"A" beer permit for sale at retail for consumption on or off
the premises covered by the class "C" native wine permit.
Sec. 16. Section 123.180, subsection 2, Code 2017, is
amended to read as follows:
2. At the time of applying for a vintner's certificate of
compliance, each applicant shall file with the division a list
of all class "A" wine permittees with whom it intends to do
business. The listing of class "A" wine permittees as filed
with the division may shall be amended from time to time by the
holder of the certificate of compliance as necessary to keep
the listing current with the division.
Sec. 17. Section 123.183, subsection 2, paragraph a, Code
2017, is amended to read as follows:
a. Revenue collected from the wine gallonage tax on wine
manufactured for sale and sold at wholesale in this state,
and on wine subject to direct shipment as provided in section
123.187 by a wine manufacturer licensed or permitted pursuant
to laws regulating alcoholic beverages in this state, shall be
deposited in the wine gallonage tax fund as created in this
section.
Sec. 18. Section 123.187, subsection 2, paragraph c, Code
2017, is amended to read as follows:
c. An application submitted pursuant to paragraph "a"
shall also be accompanied by a bond in the amount of five
thousand dollars in the form prescribed and furnished by the
division with good and sufficient sureties to be approved by
the division conditioned upon compliance with this chapter.
However, a wine manufacturer that has submitted a bond pursuant
to section 123.175, subsection 3 2, paragraph "f", shall not be
required to provide a bond as provided in this paragraph.
DIVISION II
BEER PERMITS
Sec. 19. Section 123.30, subsection 3, paragraph e,
subparagraph (1), Code 2017, is amended to read as follows:
(1) A class "E" liquor control license may be issued and
shall authorize the holder to purchase alcoholic liquor from
the division only and high alcoholic content beer from a class
"AA" "A" beer permittee only and to sell the alcoholic liquor
and high alcoholic content beer to patrons for consumption off
the licensed premises and to other liquor control licensees.
A holder of a class "E" liquor control license may hold other
retail liquor control licenses or retail wine or beer permits,
but the premises licensed under a class "E" liquor control
license shall be separate from other licensed premises, though
the separate premises may have a common entrance. However,
the holder of a class "E" liquor control license may also hold
a class "B" wine or class "C" beer permit or both for the
premises licensed under a class "E" liquor control license.
Sec. 20. Section 123.124, Code 2017, is amended by striking
the section and inserting in lieu thereof the following:
123.124 Beer permits ==== classes.
Permits for the manufacture and sale, or sale, of beer shall
be divided into four classes, known as class "A", special
class "A", class "B", or class "C" beer permits. A holder of
a class "A" or special class "A" beer permit shall have the
authority as provided in section 123.130. A holder of a class
"B" beer permit shall have the authority as provided in section
123.131, and a holder of a class "C" beer permit shall have the
authority as provided in section 123.132.
Sec. 21. Section 123.125, Code 2017, is amended to read as
follows:
123.125 Issuance of beer permits.
The administrator shall issue class "A", special class "A",
class "AA", special class "AA", class "B", and class "C" beer
permits and may suspend or revoke permits for cause as provided
in this chapter.
Sec. 22. Section 123.127, Code 2017, is amended by striking
the section and inserting in lieu thereof the following:
123.127 Class "A" and special class "A" beer permit
application and issuance.
1. A person applying for a class "A" or special class "A"
beer permit shall submit an application electronically, or in a
manner prescribed by the administrator, which shall set forth
under oath the following:
a. The name and place of residence of the applicant.
b. The names and addresses of all persons or, in the case of
a corporation, the officers, directors, and persons owning or
controlling ten percent or more of the capital stock thereof,
having a financial interest, by way of loan, ownership, or
otherwise, in the business.
c. The location of the premises where the applicant intends
to operate.
d. The name of the owner of the premises and if the owner of
the premises is not the applicant, whether the applicant is the
actual lessee of the premises.
e. When required by the administrator, and in such form and
containing such information as the administrator may require,
a description of the premises where the applicant intends to
use the permit, to include a sketch or drawing of the premises
and, if applicable, the number of square feet of interior floor
space which comprises the retail sales area of the premises.
f. Whether any person specified in paragraph "b" has ever
been convicted of any offense against the laws of the United
States, or any state or territory thereof, or any political
subdivision of any such state or territory.
g. Any other information as required by the administrator.
2. The administrator shall issue a class "A" or special
class "A" beer permit to any applicant who establishes all of
the following:
a. That the applicant has submitted a completed application
as required by subsection 1.
b. That the applicant is a person of good moral character as
provided in section 123.3, subsection 34.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state.
d. That the premises where the applicant intends to use the
permit conforms to all applicable laws, health regulations, and
fire regulations, and constitutes a safe and proper place or
building.
e. That the applicant gives consent to a person, pursuant
to section 123.30, subsection 1, to enter upon the premises
without a warrant during the business hours of the applicant
to inspect for violations of the provisions of this chapter or
ordinances and regulations that local authorities may adopt.
f. That the applicant has submitted a bond in the amount
of ten thousand dollars in a manner prescribed by the
administrator with good and sufficient sureties to be approved
by the division conditioned upon compliance with this chapter.
g. If the person is applying for a special class "A" beer
permit, that the applicant holds or has applied for a class "C"
liquor control license or class "B" beer permit.
Sec. 23. Section 123.128, subsection 1, paragraph a, Code
2017, is amended to read as follows:
a. All the information required of an applicant by section
123.127, subsection 1, paragraph "a".
Sec. 24. Section 123.128, subsection 2, Code 2017, is
amended to read as follows:
2. Fulfills the requirements of section 123.127, subsection
1 2, paragraph paragraphs "b", "c", and "d".
Sec. 25. Section 123.129, subsection 2, paragraphs a and b,
Code 2017, are amended to read as follows:
a. Submits an application electronically, or in a manner
prescribed by the administrator, which shall state under
oath all the information required of an applicant by section
123.127, subsection 1, paragraph "a".
b. Establishes that the person is of good moral character as
defined by this chapter Fulfills the requirements of section
123.127, subsection 2, paragraphs "b", "c", and "d".
Sec. 26. Section 123.129, subsection 2, paragraph d, Code
2017, is amended by striking the paragraph.
Sec. 27. Section 123.130, Code 2017, is amended to read as
follows:
123.130 Authority under class "A", class "AA", and special
class "A", and special class "AA" beer permits.
1. Any person holding a class "A" or class "AA" beer permit
issued by the division shall be authorized to manufacture
and sell, or sell at wholesale, beer for consumption off the
premises, such sales within the state to be made only to
persons holding subsisting class "A", "B", or "C" beer permits,
both a class "C" native wine permit and a class "A" wine
permit pursuant to section 123.178B, subsection 4, or liquor
control licenses issued in accordance with the provisions of
this chapter. A class "A", class "AA", or special class "A",
or special class "AA" beer permit does not grant authority to
manufacture wine as defined in section 123.3, subsection 47.
2. All class "A" and class "AA" premises shall be located
within the state. All beer received by the holder of a
class "A" or class "AA" beer permit from the holder of a
certificate of compliance before being resold must first come
to rest on the licensed premises of the permit holder, must be
inventoried, and is subject to the barrel tax when resold as
provided in section 123.136. A class "A" or class "AA" beer
permittee shall not store beer overnight except on premises
licensed under a class "A" or class "AA" beer permit.
3. All special class "A" and special class "AA" premises
shall be located within the state. A person who holds a
special class "A" or special class "AA" beer permit for the
same location at which the person holds a class "C" liquor
control license or class "B" beer permit may manufacture
and sell beer to be consumed on the premises, may sell at
retail at the manufacturing premises for consumption off
the premises beer that is transferred at the time of sale
to another container subject to the requirements of section
123.131, subsection 2, may sell beer to a class "A" or class
"AA" beer permittee for resale purposes, and may sell beer to
distributors outside of the state that are authorized by the
laws of that jurisdiction to sell beer at wholesale.
Sec. 28. Section 123.131, Code 2017, is amended to read as
follows:
123.131 Authority under class "B" beer permit.
1. Subject to the provisions of this chapter, any person
holding a class "B" beer permit shall be authorized to sell
beer for consumption on or off the premises. Sales of beer
for consumption off the premises made pursuant to this section
shall be made in original containers except as provided in
subsection 2. However, unless otherwise provided in this
chapter, no sale of beer shall be made for consumption on
the premises unless the place where such service is made is
equipped with tables and seats sufficient to accommodate not
less than twenty=five persons at one time.
2. Subject to the rules of the division, sales of beer for
consumption off the premises made pursuant to this section may
be made in a container other than the original container only
if all of the following requirements are met:
a. The beer is transferred from the original container to
the container to be sold on the licensed premises at the time
of sale.
b. The person transferring the beer from the original
container to the container to be sold shall be eighteen years
of age or more.
c. The container to be sold shall be no larger than
seventy=two ounces.
d. The container to be sold shall be securely sealed by a
method authorized by the division that is designed so that if
the sealed container is reopened or the seal tampered with, it
is visibly apparent that the seal on the container of beer has
been tampered with or the sealed container has otherwise been
reopened.
3. A container of beer other than the original container
that is sold and sealed in compliance with the requirements of
subsection 2 and the rules of the division shall not be deemed
an open container subject to the requirements of sections
321.284 and 321.284A if the sealed container is unopened and
the seal has not been tampered with, and the contents of the
container have not been partially removed.
4. A person holding a class "B" beer permit and a class "A"
beer permit whose primary purpose is manufacturing beer may
purchase wine from a wholesaler holding a class "A" wine permit
for sale at retail for consumption on the premises covered by
the class "B" beer permit.
Sec. 29. Section 123.134, subsection 1, Code 2017, is
amended to read as follows:
1. The annual permit fee for a class "A" or special class
"A" beer permit is two seven hundred fifty dollars.
Sec. 30. Section 123.134, subsection 2, Code 2017, is
amended by striking the subsection.
Sec. 31. Section 123.135, Code 2017, is amended to read as
follows:
123.135 Certificate of compliance ==== civil penalty.
1. A manufacturer, brewer, bottler, importer, or vendor of
beer, or any agent thereof, desiring to ship or sell beer, or
have beer brought into this state for resale by a class "A"
or class "AA" beer permittee, shall first make application
for and be issued a brewer's certificate of compliance by the
administrator for that purpose. The certificate of compliance
expires at the end of one year from the date of issuance
and shall be renewed for a like period upon application to
the administrator unless otherwise revoked for cause. Each
application for a certificate of compliance or renewal of a
certificate shall be submitted electronically, or in a manner
prescribed by the administrator, and shall be accompanied
by a fee of five hundred dollars payable to the division.
Each holder of a certificate of compliance shall furnish the
information in a manner the administrator requires.
2. At the time of applying for a certificate of compliance,
each applicant shall file with the division a list of all class
"A" and class "AA" beer permittees with whom it intends to do
business and shall designate the geographic area in which its
products are to be distributed by such permittee. The listing
of class "A" and class "AA" beer permittees and geographic area
as filed with the division may shall be amended from time to
time by the holder of a certificate of compliance as necessary
to keep the listing current with the division.
3. All class "A" and class "AA" beer permit holders shall
sell only those brands of beer which are manufactured, brewed,
bottled, shipped, or imported by a person holding a current
certificate of compliance. Any employee or agent working for
or representing the holder of a certificate of compliance
within this state shall submit electronically, or in a manner
prescribed by the administrator, the employee's or agent's name
and address with the division.
4. It shall be unlawful for any holder of a certificate of
compliance or the holder's agent, or any class "A" or class
"AA" beer permit holder or the beer permit holder's agent, to
grant to any retail beer permit holder, directly or indirectly,
any rebates, free goods, or quantity discounts on beer which
are not uniformly offered to all retail permittees.
5. Notwithstanding any other penalties provided by this
chapter, any holder of a certificate of compliance or any class
"A" or class "AA" beer permit holder who violates this chapter
or the rules adopted pursuant to this chapter is subject to a
civil penalty not to exceed one thousand dollars or suspension
of the holder's certificate or permit for a period not to
exceed one year, or both such civil penalty and suspension.
Civil penalties imposed under this section shall be collected
and retained by the division.
Sec. 32. Section 123.136, subsection 1, Code 2017, is
amended to read as follows:
1. In addition to the annual permit fee to be paid by all
class "A" and class "AA" beer permittees under this chapter
there shall be levied and collected from the permittees on all
beer manufactured for sale or sold in this state at wholesale
and on all beer imported into this state for sale at wholesale
and sold in this state at wholesale, and from special class "A"
and special class "AA" beer permittees on all beer manufactured
for consumption on the premises and on all beer sold at retail
at the manufacturing premises for consumption off the premises
pursuant to section 123.130, subsection 3, a tax of five and
eighty=nine hundredths dollars for every barrel containing
thirty=one gallons, and at a like rate for any other quantity
or for the fractional part of a barrel. However, no tax shall
be levied or collected on beer shipped outside this state by a
class "A" or class "AA" beer permittee or sold by one class "A"
or class "AA" beer permittee to another class "A" or class "AA"
beer permittee.
Sec. 33. Section 123.137, subsection 1, Code 2017, is
amended to read as follows:
1. A person holding a class "A", class "AA", or special
class "A", or special class "AA" beer permit shall, on or
before the tenth day of each calendar month commencing on the
tenth day of the calendar month following the month in which
the person is issued a beer permit, make a report under oath
to the division electronically, or in a manner prescribed by
the administrator, showing the exact number of barrels of
beer, or fractional parts of barrels, sold by the beer permit
holder during the preceding calendar month. The report shall
also state information the administrator requires, and beer
permit holders shall at the time of filing a report pay to the
division the amount of tax due at the rate fixed in section
123.136.
Sec. 34. Section 123.138, subsection 1, Code 2017, is
amended to read as follows:
1. Each class "A", class "AA", or special class "A", or
special class "AA" beer permittee shall keep proper records
showing the amount of beer sold by the permittee, and these
records shall be at all times open to inspection by the
administrator and to other persons pursuant to section 123.30,
subsection 1. Each class "B" beer permittee, class "C" beer
permittee, or retail liquor control licensee shall keep proper
records showing each purchase of beer made by the permittee
or licensee, and the date and the amount of each purchase and
the name of the person from whom each purchase was made, which
records shall be open to inspection pursuant to section 123.30,
subsection 1, during normal business hours of the permittee or
licensee.
Sec. 35. Section 123.139, Code 2017, is amended to read as
follows:
123.139 Separate locations ==== class "A", class "AA", or
special class "A", or special class "AA" beer permit.
A class "A", class "AA", or special class "A", or special
class "AA" beer permittee having more than one place of
business is required to have a separate beer permit for each
separate place of business maintained by the permittee where
beer is stored, warehoused, or sold.
Sec. 36. Section 123.142, Code 2017, is amended to read as
follows:
123.142 Unlawful sale and importation.
1. It is unlawful for the holder of a class "B" or class
"C" beer permit issued under this chapter to sell beer, except
beer brewed on the premises covered by a special class "A"
or special class "AA" beer permit or beer purchased from a
person holding a class "A" or class "AA" beer permit issued in
accordance with this chapter, and on which the tax provided in
section 123.136 has been paid. However, this section does not
apply to class "D" liquor control licensees as provided in this
chapter.
2. It shall be unlawful for any person not holding a class
"A" or class "AA" beer permit to import beer into this state
for the purpose of sale or resale.
Sec. 37. Section 123.143, subsection 3, Code 2017, is
amended to read as follows:
3. Barrel tax revenues collected on beer manufactured in
this state from a class "A" or class "AA" beer permittee which
owns and operates a brewery located in Iowa shall be credited
to the barrel tax fund hereby created in the office of the
treasurer of state. Moneys deposited in the barrel tax fund
shall not revert to the general fund of the state without a
specific appropriation by the general assembly. Moneys in the
barrel tax fund are appropriated to the economic development
authority for purposes of section 15E.117.
Sec. 38. Section 123.144, subsection 1, Code 2017, is
amended to read as follows:
1. No person shall bottle beer within the state of Iowa,
except class "A", and special class "A", class "AA", and
special class "AA" beer permittees who have complete equipment
for bottling beer and who have received the approval of the
local board of health as to sanitation. It shall be the duty of
local boards of health to inspect the premises and equipment of
class "A", and special class "A", class "AA", and special class
"AA" beer permittees who desire to bottle beer.
DIVISION III
NATIVE DISTILLED SPIRITS
Sec. 39. Section 123.3, subsections 28 and 29, Code 2017,
are amended to read as follows:
28. "Micro=distilled "Native distilled spirits" means
distilled spirits fermented, distilled, or, for a period of
two years, barrel matured on the licensed premises of the
micro=distillery native distillery where fermented, distilled,
or matured. "Micro=distilled spirits" "Native distilled spirits"
also includes blended or mixed spirits comprised solely of
spirits fermented, distilled, or, for a period of two years,
barrel matured at a micro=distillery native distillery.
29. "Micro=distillery" "Native distillery" means a
business with an operational operating still which, combining
all production facilities of the business, produces and
manufactures less than fifty thousand proof gallons of native
distilled spirits on an annual basis.
Sec. 40. Section 123.30, subsection 3, paragraph c, Code
2017, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (3) A class "C" native distilled spirits
liquor control license may be issued to a native distillery but
shall be issued in the name of the individuals who actually own
the business and shall only be issued to a native distillery
which, combining all production facilities of the business,
produces and manufactures not more than one hundred thousand
proof gallons of distilled spirits on an annual basis. The
license shall authorize the holder to sell native distilled
spirits manufactured on the premises of the native distillery
to patrons by the individual drink for consumption on the
premises. All native distilled spirits sold by a native
distillery for on=premises consumption shall be purchased from
a class "E" liquor control licensee.
Sec. 41. Section 123.32, subsection 1, Code 2017, is amended
to read as follows:
1. Filing of application. An application for a class "A",
class "B", class "C", or class "E" liquor control license, for
a class "A" micro=distilled native distilled spirits permit
license, for a retail beer permit as provided in sections
123.128 and 123.129, or for a class "B", class "B" native, or
class "C" native retail wine permit as provided in section
123.178, 123.178A, or 123.178B, accompanied by the necessary
fee and bond, if required, shall be filed with the appropriate
city council if the premises for which the license or permit
is sought are located within the corporate limits of a city,
or with the board of supervisors if the premises for which the
license or permit is sought are located outside the corporate
limits of a city. An application for a class "D" liquor
control license and for a class "A" beer or class "A" wine
permit, accompanied by the necessary fee and bond, if required,
shall be submitted to the division electronically, or in a
manner prescribed by the administrator, which shall proceed in
the same manner as in the case of an application approved by
local authorities.
Sec. 42. Section 123.36, Code 2017, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. Class "C" native distilled spirits
liquor control license, the sum of two hundred fifty dollars.
Sec. 43. Section 123.36, subsection 5, Code 2017, is amended
to read as follows:
5. Any club, hotel, motel, native distillery, or commercial
establishment holding a liquor control license, subject to
section 123.49, subsection 2, paragraph "b", may apply for and
receive permission to sell and dispense alcoholic liquor and
wine to patrons on Sunday for consumption on the premises only,
and beer for consumption on or off the premises between the
hours of 8:00 a.m. on Sunday and 2:00 a.m. on the following
Monday. A class "D" liquor control licensee may apply for and
receive permission to sell and dispense alcoholic beverages to
patrons for consumption on the premises only between the hours
of 8:00 a.m. on Sunday and 2:00 a.m. on the following Monday.
For the privilege of selling beer, wine, and alcoholic liquor
on the premises on Sunday the liquor control license fee of the
applicant shall be increased by twenty percent of the regular
fee prescribed for the license pursuant to this section, and
the privilege shall be noted on the liquor control license.
Sec. 44. NEW SECTION. 123.43 Class "A" native distilled
spirits license ==== application and issuance ==== fees.
1. A person applying for a class "A" native distilled
spirits license shall submit an application electronically, or
in a manner prescribed by the administrator, which shall set
forth under oath the following:
a. The name and place of residence of the applicant.
b. The names and addresses of all persons or, in the case of
a corporation, the officers, directors, and persons owning or
controlling ten percent or more of the capital stock thereof,
having a financial interest, by way of loan, ownership, or
otherwise, in the business.
c. The location of the premises where the applicant intends
to operate.
d. The name of the owner of the premises and if the owner of
the premises is not the applicant, whether the applicant is the
actual lessee of the premises.
e. When required by the administrator, and in such form and
containing such information as the administrator may require,
a description of the premises where the applicant intends to
use the license, to include a sketch or drawing of the premises
and, if applicable, the number of square feet of interior floor
space which comprises the retail sales area of the premises.
f. Whether any person specified in paragraph "b" has ever
been convicted of any offense against the laws of the United
States, or any state or territory thereof, or any political
subdivision of any such state or territory.
g. Any other information as required by the administrator.
2. Except as otherwise provided in this chapter, the
administrator shall issue a class "A" native distilled spirits
license to any applicant who establishes all of the following:
a. That the applicant has submitted a completed application
as required by subsection 1.
b. That the applicant is a person of good moral character as
provided in section 123.3, subsection 34.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state.
d. That the applicant is a bona fide manufacturer of
alcoholic liquors, and that the applicant will faithfully
observe and comply with all laws, rules, and regulations
governing the manufacture and sale of alcoholic liquor.
e. That the premises where the applicant intends to use the
license conforms to all applicable laws, health regulations,
and fire regulations, and constitutes a safe and proper place
or building.
f. That the applicant gives consent to a person, pursuant
to section 123.30, subsection 1, to enter upon the premises
without a warrant during the business hours of the applicant
to inspect for violations of the provisions of this chapter or
ordinances and regulations that local authorities may adopt.
3. A class "A" native distilled spirits license for a native
distillery shall be issued and renewed annually upon payment of
a fee of five hundred dollars.
4. A violation of the requirements of this chapter shall
subject the licensee to the general penalties provided in this
chapter and shall constitute grounds for imposition of a civil
penalty or suspension or revocation of the license after notice
and opportunity for a hearing pursuant to section 123.39 and
chapter 17A.
Sec. 45. Section 123.43A, Code 2017, is amended to read as
follows:
123.43A Micro=distilled spirits ==== permit Native
distilleries.
1. Subject to rules of the division, a micro=distillery
native distillery holding a class "A" micro=distilled native
distilled spirits permit pursuant to this section license
issued pursuant to section 123.43 may sell or offer for sale
micro=distilled native distilled spirits. As provided in this
section, sales of native distilled spirits manufactured on the
premises may be made at retail for off=premises consumption
when sold on the premises of the micro=distillery native
distillery that manufactures micro=distilled native distilled
spirits. All sales intended for resale in this state shall be
made through the state's wholesale distribution system.
2. A micro=distillery native distillery shall not sell
more than one and one=half liters per person per day, of
micro=distilled native distilled spirits on the premises of
the micro=distillery native distillery. However, a native
distillery which, combining all production facilities of
the business, produces and manufactures not more than one
hundred thousand proof gallons of native distilled spirits
on an annual basis, may sell not more than nine liters per
person per day, of native distilled spirits. In addition, a
micro=distillery native distillery shall not directly ship
micro=distilled native distilled spirits for sale at retail.
The micro=distillery native distillery shall maintain records
of individual purchases of micro=distilled native distilled
spirits at the micro=distillery native distillery for three
years.
3. A micro=distillery native distillery shall not sell
micro=distilled native distilled spirits other than as
permitted in this chapter and shall not allow micro=distilled
native distilled spirits sold for consumption off the premises
to be consumed upon the premises of the micro=distillery native
distillery. However, as a part of a micro=distillery tour,
micro=distilled native distilled spirits may be tasted pursuant
to the rules of the division on the premises where fermented,
distilled, or matured, when no charge is made for the tasting.
4. A class "A" micro=distilled spirits permit for a
micro=distillery shall be issued and renewed annually upon
payment of a fee of five hundred dollars.
5. The sale of micro=distilled native distilled spirits to
the division for wholesale disposition and sale by the division
shall be subject to the requirements of this chapter regarding
such disposition and sale.
6. 5. The division shall issue no more than three permits
under this section class "A" native distilled spirits licenses
to a person. In addition, a micro=distillery native distillery
issued a permit under this section class "A" native distilled
spirits license shall file with the division, on or before the
fifteenth day of each calendar month, all documents filed by
the micro=distillery native distillery with the alcohol and
tobacco tax and trade bureau of the United States department of
the treasury, including all production, storage, and processing
reports.
7. Micro=distilled spirits purchased at a micro=distillery
shall not be consumed on any property owned, operated, or
controlled by a micro=distillery.
6. Notwithstanding any provision of this chapter to the
contrary or the fact that a person is the holder of a class
"A" native distilled spirits license, a native distillery
which, combining all production facilities of the business,
produces and manufactures not more than one hundred thousand
proof gallons of native distilled spirits on an annual basis
may sell those native distilled spirits manufactured on the
premises of the native distillery for consumption on the
premises by applying for a class "C" native distilled spirits
liquor control license as provided in section 123.30. A native
distillery may be granted not more than one class "C" native
distilled spirits liquor control license. All native distilled
spirits sold by a native distillery for on=premises consumption
shall be purchased from a class "E" liquor control licensee. A
manufacturer of native distilled spirits may be issued a class
"C" native distilled spirits liquor control license regardless
of whether the manufacturer is also a manufacturer of native
wine pursuant to a class "A" wine permit. A native distillery
engaged in the business of manufacturing beer shall not be
issued a class "C" native distilled spirits liquor control
license.
7. A native distillery may sell the native distilled spirits
it manufactures to customers outside the state.
Sec. 46. Section 123.56, subsection 5, Code 2017, is amended
to read as follows:
5. Notwithstanding any other provision of this chapter, a
person engaged in the business of manufacturing native wine may
sell native wine at retail for consumption on the premises of
the manufacturing facility by applying for a class "C" native
wine permit as provided in section 123.178B. A manufacturer
of native wine may be granted not more than one class "C"
native wine permit. A manufacturer of native wine may be
issued a class "C" native wine permit regardless of whether the
manufacturer is also a manufacturer of native distilled spirits
pursuant to a class "A" native distilled spirits license.
Sec. 47. Section 123.173A, subsections 4 and 7, Code 2017,
are amended to read as follows:
4. The authorized nonprofit entity conducting the charity
beer, spirits, and wine auction shall obtain the beer, spirits,
and wine to be auctioned at the charity beer, spirits, and wine
auction from an Iowa retail beer permittee, an Iowa retail
liquor control licensee, or an Iowa retail wine permittee, or
may receive donations of beer, spirits, or wine to be auctioned
at the charity beer, spirits, and wine auction from persons
who purchased the donated beer, spirits, or wine from an Iowa
retail beer permittee, an Iowa retail liquor control licensee,
an Iowa micro=distilled class "A" native distilled spirits
permittee licensee, or an Iowa retail wine permittee and who
present a receipt documenting the purchase at the time the
beer, spirits, or wine is donated. The authorized nonprofit
entity conducting the charity beer, spirits, and wine auction
shall retain a copy of the receipt for a period of one year from
the date of the charity beer, spirits, and wine auction.
7. A liquor control licensee, beer permittee,
micro=distilled class "A" native distilled spirits permittee
licensee, or wine permittee shall not purchase beer, spirits,
or wine at a charity beer, spirits, and wine auction. The
charity beer, spirits, and wine auction may be conducted on a
premises for which a class "B" liquor control license or class
"C" liquor control license has been issued, provided that the
liquor control licensee does not participate in the charity
beer, spirits, and wine auction, supply beer, spirits, or wine
to be auctioned at the charity beer, spirits, and wine auction,
or receive any of the proceeds of the charity beer, spirits,
and wine auction.
LINDA UPMEYER
JACK WHITVER
CARMINE BOAL
TERRY E. BRANSTA
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