Bill Text: IA HF607 | 2017-2018 | 87th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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.

Sponsorship: Committee Bill

Status: (Passed) 2017-05-09 - Signed by Governor. H.J. 1149. [HF607 Detail]

Download: Iowa-2017-HF607-Introduced.html

---

House File 607 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 521)
                                 (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 1266HZ (3) 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 123.22, Code 2017, is amended to read as
  1 16 follows:
  1 17    123.22  State monopoly.
  1 18    1.  The division has the exclusive right of importation
  1 19 into the state of all forms of alcoholic liquor, except as
  1 20 otherwise provided in this chapter, and a person shall not
  1 21 import alcoholic liquor, except that an individual of legal age
  1 22 may import and have in the individual's possession an amount
  1 23 of alcoholic liquor not exceeding one liter or, in the case of
  1 24 alcoholic liquor personally obtained outside the United States,
  1 25 four liters for personal consumption only in a private home
  1 26 or other private accommodation. A distillery shall not sell
  1 27 alcoholic liquor within the state to any person but only to
  1 28 the division, except as otherwise provided in this chapter.
  1 29 This section vests in the division exclusive control within the
  1 30 state as purchaser of all alcoholic liquor sold by distilleries
  1 31 within the state or imported, except beer and wine, and except
  1 32 as otherwise provided in this chapter. The division shall
  1 33 receive alcoholic liquor on a bailment system for resale by the
  1 34 division in the manner set forth in this chapter. The division
  1 35 shall act as the sole wholesaler of alcoholic liquor to class
  2  1 "E" liquor control licensees.
  2  2    2.  No person, acting individually or through another
  2  3 acting for the person shall directly or indirectly, or upon
  2  4 any pretense, or by any device, manufacture, sell, exchange,
  2  5 barter, dispense, give in consideration of the purchase of any
  2  6 property or of any services or in evasion of this chapter, or
  2  7 keep for sale, or have possession of any intoxicating liquor,
  2  8 except as provided in this chapter; or own, keep, or be in any
  2  9 way concerned, engaged, or employed in owning or keeping, any
  2 10 intoxicating liquor with intent to violate any provision of
  2 11 this chapter, or authorize or permit the same to be done; or
  2 12 manufacture, own, sell, or have possession of any manufactured
  2 13 or compounded article, mixture or substance, not in a liquid
  2 14 form, and containing alcohol which may be converted into a
  2 15 beverage by a process of pressing or straining the alcohol
  2 16 therefrom, or any instrument intended for use and capable of
  2 17 being used in the manufacture of intoxicating liquor; or own
  2 18 or have possession of any material used exclusively in the
  2 19 manufacture of intoxicating liquor; or use or have possession
  2 20 of any material with intent to use it in the manufacture of
  2 21 intoxicating liquors; however, alcohol may be manufactured
  2 22 for industrial and nonbeverage purposes by persons who have
  2 23 qualified for that purpose as provided by the laws of the
  2 24 United States and the laws of this state. Such alcohol, so
  2 25 manufactured, may be denatured, transported, used, possessed,
  2 26 sold, and bartered and dispensed, subject to the limitations,
  2 27 prohibitions and restrictions imposed by the laws of the United
  2 28 States and this state. Any person may manufacture, sell, or
  2 29 transport ingredients and devices other than alcohol for the
  2 30 making of homemade wine or beer.
  2 31    Sec. 3.  Section 123.23, subsection 2, Code 2017, is amended
  2 32 to read as follows:
  2 33    2.  At the time of applying for a certificate of compliance,
  2 34 each applicant shall submit to the division electronically,
  2 35 or in a manner prescribed by the administrator, the name and
  3  1 address of its authorized agent for service of process which
  3  2 shall remain effective until changed for another, and a list
  3  3 of names and addresses of all representatives, employees, or
  3  4 attorneys whom the applicant has appointed in the state of Iowa
  3  5 to represent it for any purpose. The listing shall be amended
  3  6 from time to time by the certificate holder as necessary to
  3  7 keep the listing current with the division.
  3  8    Sec. 4.  Section 123.28, Code 2017, is amended to read as
  3  9 follows:
  3 10    123.28  Restrictions on transportation.
  3 11    1.  It is lawful to transport, carry, or convey alcoholic
  3 12 liquors from the place of purchase by the division to a state
  3 13 warehouse or depot established by the division or from one such
  3 14 place to another and, when so permitted by this chapter, it is
  3 15 lawful for the division, a common carrier, or other person to
  3 16 transport, carry, or convey alcoholic liquor sold from a state
  3 17 warehouse, depot, or point of purchase by the state to any
  3 18 place to which the liquor may be lawfully delivered under this
  3 19 chapter.
  3 20    2.  The division shall deliver alcoholic liquor purchased by
  3 21 class "E" liquor control licensees. Class "E" liquor control
  3 22 licensees may deliver alcoholic liquor purchased by class "A",
  3 23 "B", or "C" liquor control licensees, and class "A", "B", or
  3 24 "C" liquor control licensees may transport alcoholic liquor
  3 25 purchased from class "E" liquor control licensees.
  3 26    3.  A common carrier or other person shall not break or
  3 27 open or allow to be broken or opened a container or package
  3 28 containing alcoholic liquor or use or drink or allow to be used
  3 29 or drunk any alcoholic liquor while it is being transported or
  3 30 conveyed, but this.
  3 31    4.  This section does not prohibit a private person from
  3 32 transporting individual bottles or containers of alcoholic
  3 33 liquor exempted pursuant to section 123.22 and individual
  3 34 bottles or containers bearing the identifying mark prescribed
  3 35 in section 123.26 which have been opened previous to the
  4  1 commencement of the transportation.
  4  2    5.  This section does not affect the right of a special
  4  3 permit or liquor control license holder to purchase, possess,
  4  4 or transport alcoholic liquors subject to this chapter.
  4  5    Sec. 5.  Section 123.30, subsection 1, paragraph c, Code
  4  6 2017, is amended to read as follows:
  4  7    c.  As a further condition for the issuance of a class "E"
  4  8 liquor control license, the applicant shall post a bond in
  4  9 a sum of not less than five thousand nor more than fifteen
  4 10 thousand dollars as determined on a sliding scale established
  4 11 by the division; however, a bond shall not be required if all
  4 12 purchases of alcoholic liquor from the division by the licensee
  4 13 are made by cash payment or by means that ensure that the
  4 14 division will receive full payment in advance of delivery of
  4 15 the alcoholic liquor.
  4 16    Sec. 6.  Section 123.31, subsections 6 and 7, Code 2017, are
  4 17 amended by striking the subsections.
  4 18    Sec. 7.  Section 123.32, subsection 6, paragraph b, Code
  4 19 2017, is amended to read as follows:
  4 20    b.  Upon receipt of an application having been approved by
  4 21 the local authority, the division shall make an investigation
  4 22 as the administrator deems necessary to determine that the
  4 23 applicant complies with all requirements for holding a license
  4 24 or permit, and may require the applicant to appear to be
  4 25 examined under oath to demonstrate that the applicant complies
  4 26 with all of the requirements to hold a license or permit. If
  4 27 the administrator requires the applicant to appear and to
  4 28 testify under oath, a record shall be made of all testimony or
  4 29 evidence and the record shall become a part of the application.
  4 30 The administrator may appoint a member of the division or
  4 31 may request an administrative law judge of the department of
  4 32 inspections and appeals to receive the testimony under oath
  4 33 and evidence, and to issue a proposed decision to approve
  4 34 or disapprove the application for a license or permit. The
  4 35 administrator may affirm, reverse, or modify the proposed
  5  1 decision to approve or disapprove the application for the
  5  2 license or permit. If the application is approved by the
  5  3 administrator, the license or permit shall be issued. If the
  5  4 application is disapproved by the administrator, the applicant
  5  5 and the appropriate local authority shall be so notified by
  5  6 certified mail and the appropriate local authority shall be
  5  7 notified electronically, or in a manner prescribed by the
  5  8 administrator.
  5  9    Sec. 8.  Section 123.33, Code 2017, is amended to read as
  5 10 follows:
  5 11    123.33  Records.
  5 12    Every holder of a liquor control license shall keep a daily
  5 13 record, in printed or electronic format, of the gross receipts
  5 14 of the holder's business or permit under this chapter shall
  5 15 maintain records, in printed and electronic format, which
  5 16 include income statements, balance sheets, purchase and sales
  5 17 invoices, purchase and sales ledgers, and any other records as
  5 18 the administrator may require. The records required and the
  5 19 premises of the licensee or permittee shall be accessible and
  5 20 open to inspection pursuant to section 123.30, subsection 1,
  5 21 during normal business hours of the licensee or permittee.
  5 22    Sec. 9.  Section 123.34, subsection 1, Code 2017, is amended
  5 23 to read as follows:
  5 24    1.  Liquor control licenses, wine permits, and beer permits,
  5 25 unless sooner suspended or revoked, expire one year from
  5 26 date of issuance. The administrator shall give sixty days'
  5 27 written notice of the expiration to each licensee or permittee.
  5 28 However, the administrator may issue six=month or eight=month
  5 29 seasonal licenses, class "B" wine permits, or class "B" beer
  5 30 permits for a proportionate part of the license or permit fee
  5 31 or may issue fourteen=day liquor control licenses, native wine
  5 32 permits, or beer permits as provided in subsection 2. No
  5 33 refund shall be made for seasonal licenses or permits or for
  5 34 fourteen=day liquor control licenses, native wine permits, or
  5 35 beer permits. No seasonal license or permit shall be renewed
  6  1 except. However, after a period of two months the applicant
  6  2 may apply for a new seasonal license or permit for the same
  6  3 location.
  6  4    Sec. 10.  Section 123.49, subsection 2, paragraph b, Code
  6  5 2017, is amended to read as follows:
  6  6    b.  Sell or dispense any alcoholic beverage or beer on
  6  7 the premises covered by the license or permit, or permit its
  6  8 consumption thereon between the hours of 2:00 a.m. and 6:00
  6  9 a.m. on a weekday, and between the hours of 2:00 a.m. on Sunday
  6 10 and 6:00 a.m. on the following Monday, however, a holder of a
  6 11 liquor control license or retail wine or beer permit granted
  6 12 the privilege of selling alcoholic liquor, wine, or beer on
  6 13 Sunday may sell or dispense alcoholic liquor, wine, or beer
  6 14 between the hours of 8:00 a.m. on Sunday and 2:00 a.m. on the
  6 15 following Monday.
  6 16    Sec. 11.  Section 123.49, subsection 2, paragraph k, Code
  6 17 2017, is amended by striking the paragraph.
  6 18    Sec. 12.  Section 123.51, subsection 1, Code 2017, is amended
  6 19 to read as follows:
  6 20    1.  No signs or other matter advertising any brand of
  6 21 alcoholic liquor, beer, or wine shall be erected or placed upon
  6 22 the outside of any premises occupied by a licensee or permittee
  6 23 authorized to sell alcoholic liquor, beer, or wine at retail.
  6 24 This subsection does not prohibit the use of signs However,
  6 25 signs or other advertising matter may be erected or placed
  6 26 inside the premises, inside a fence or similar enclosure which
  6 27 wholly or partially surrounds the licensed premises, or inside
  6 28 a window facing outward from the premises.
  6 29    Sec. 13.  Section 123.175, Code 2017, is amended by striking
  6 30 the section and inserting in lieu thereof the following:
  6 31    123.175  Class "A" or retail wine permit application and
  6 32 issuance.
  6 33    1.  A person applying for a class "A" or retail wine permit
  6 34 shall submit an application electronically, or in a manner
  6 35 prescribed by the administrator, which shall set forth under
  7  1 oath the following:
  7  2    a.  The name and place of residence of the applicant.
  7  3    b.  The names and addresses of all persons or, in the case of
  7  4 a corporation, the officers, directors, and persons owning or
  7  5 controlling ten percent or more of the capital stock thereof,
  7  6 having a financial interest, by way of loan, ownership, or
  7  7 otherwise, in the business.
  7  8    c.  The location of the premises where the applicant intends
  7  9 to operate.
  7 10    d.  The name of the owner of the premises and if the owner of
  7 11 the premises is not the applicant, whether the applicant is the
  7 12 actual lessee of the premises.
  7 13    e.  When required by the administrator, and in such form and
  7 14 containing such information as the administrator may require,
  7 15 a description of the premises where the applicant intends to
  7 16 use the permit, to include a sketch or drawing of the premises
  7 17 and, if applicable, the number of square feet of interior floor
  7 18 space which comprises the retail sales area of the premises.
  7 19    f.  Whether any person specified in paragraph "b" has ever
  7 20 been convicted of any offense against the laws of the United
  7 21 States, or any state or territory thereof, or any political
  7 22 subdivision of any such state or territory.
  7 23    g.  Any other information as required by the administrator.
  7 24    2.  The administrator shall issue a class "A" or retail wine
  7 25 permit to any applicant who establishes all of the following:
  7 26    a.  That the applicant has submitted a completed application
  7 27 as required by subsection 1.
  7 28    b.  That the applicant is a person of good moral character as
  7 29 provided in section 123.3, subsection 34.
  7 30    c.  That the applicant is a citizen of the state of Iowa
  7 31 or, if a corporation, that the applicant is authorized to do
  7 32 business in the state.
  7 33    d.  That the premises where the applicant intends to use the
  7 34 permit conforms to all applicable laws, health regulations, and
  7 35 fire regulations, and constitutes a safe and proper place or
  8  1 building.
  8  2    e.  That the applicant gives consent to a person, pursuant
  8  3 to section 123.30, subsection 1, to enter upon the premises
  8  4 without a warrant during the business hours of the applicant
  8  5 to inspect for violations of the provisions of this chapter or
  8  6 ordinances and regulations that local authorities may adopt.
  8  7    f.  That the applicant has submitted, in the case of a class
  8  8 "A" wine permit, a bond in the amount of five thousand dollars
  8  9 in a manner prescribed by the administrator with good and
  8 10 sufficient sureties to be approved by the division conditioned
  8 11 upon compliance with this chapter.
  8 12    Sec. 14.  Section 123.177, Code 2017, is amended by adding
  8 13 the following new subsection:
  8 14    NEW SUBSECTION.  3.  A class "A" wine permit holder may sell
  8 15 wine to a person holding both a class "B" beer permit and a
  8 16 class "A" beer permit pursuant to section 123.131, subsection
  8 17 4.
  8 18    Sec. 15.  Section 123.178B, subsection 4, Code 2017, is
  8 19 amended to read as follows:
  8 20    4.  A person holding a class "C" native wine permit and a
  8 21 class "A" wine permit whose primary purpose is manufacturing
  8 22 native wine may purchase beer from a wholesaler holding a class
  8 23 "A" beer permit for sale at retail for consumption on or off
  8 24 the premises covered by the class "C" native wine permit.
  8 25    Sec. 16.  Section 123.180, subsection 2, Code 2017, is
  8 26 amended to read as follows:
  8 27    2.  At the time of applying for a vintner's certificate of
  8 28 compliance, each applicant shall file with the division a list
  8 29 of all class "A" wine permittees with whom it intends to do
  8 30 business. The listing of class "A" wine permittees as filed
  8 31 with the division may shall be amended from time to time by the
  8 32 holder of the certificate of compliance as necessary to keep
  8 33 the listing current with the division.
  8 34    Sec. 17.  Section 123.183, subsection 2, paragraph a, Code
  8 35 2017, is amended to read as follows:
  9  1    a.  Revenue collected from the wine gallonage tax on wine
  9  2 manufactured for sale and sold at wholesale in this state,
  9  3 and on wine subject to direct shipment as provided in section
  9  4 123.187 by a wine manufacturer licensed or permitted pursuant
  9  5 to laws regulating alcoholic beverages in this state, shall be
  9  6 deposited in the wine gallonage tax fund as created in this
  9  7 section.
  9  8    Sec. 18.  Section 123.187, subsection 2, paragraph c, Code
  9  9 2017, is amended to read as follows:
  9 10    c.  An application submitted pursuant to paragraph "a"
  9 11 shall also be accompanied by a bond in the amount of five
  9 12 thousand dollars in the form prescribed and furnished by the
  9 13 division with good and sufficient sureties to be approved by
  9 14 the division conditioned upon compliance with this chapter.
  9 15 However, a wine manufacturer that has submitted a bond pursuant
  9 16 to section 123.175, subsection 3 2, paragraph "f", shall not be
  9 17 required to provide a bond as provided in this paragraph.
  9 18                           DIVISION II
  9 19                          BEER PERMITS
  9 20    Sec. 19.  Section 123.30, subsection 3, paragraph e,
  9 21 subparagraph (1), Code 2017, is amended to read as follows:
  9 22    (1)  A class "E" liquor control license may be issued and
  9 23 shall authorize the holder to purchase alcoholic liquor from
  9 24 the division only and high alcoholic content beer from a class
  9 25 "AA" "A" beer permittee only and to sell the alcoholic liquor
  9 26 and high alcoholic content beer to patrons for consumption off
  9 27 the licensed premises and to other liquor control licensees.
  9 28 A holder of a class "E" liquor control license may hold other
  9 29 retail liquor control licenses or retail wine or beer permits,
  9 30 but the premises licensed under a class "E" liquor control
  9 31 license shall be separate from other licensed premises, though
  9 32 the separate premises may have a common entrance. However,
  9 33 the holder of a class "E" liquor control license may also hold
  9 34 a class "B" wine or class "C" beer permit or both for the
  9 35 premises licensed under a class "E" liquor control license.
 10  1    Sec. 20.  Section 123.124, Code 2017, is amended by striking
 10  2 the section and inserting in lieu thereof the following:
 10  3    123.124  Beer permits ==== classes.
 10  4    Permits for the manufacture and sale, or sale, of beer shall
 10  5 be divided into four classes, known as class "A", special
 10  6 class "A", class "B", or class "C" beer permits.  A holder of
 10  7 a class "A" or special class "A" beer permit shall have the
 10  8 authority as provided in section 123.130.  A holder of a class
 10  9 "B" beer permit shall have the authority as provided in section
 10 10 123.131, and a holder of a class "C" beer permit shall have the
 10 11 authority as provided in section 123.132.
 10 12    Sec. 21.  Section 123.125, Code 2017, is amended to read as
 10 13 follows:
 10 14    123.125  Issuance of beer permits.
 10 15    The administrator shall issue class "A", special class "A",
 10 16 class "AA", special class "AA", class "B", and class "C" beer
 10 17 permits and may suspend or revoke permits for cause as provided
 10 18 in this chapter.
 10 19    Sec. 22.  Section 123.127, Code 2017, is amended by striking
 10 20 the section and inserting in lieu thereof the following:
 10 21    123.127  Class "A" and special class "A" beer permit
 10 22 application and issuance.
 10 23    1.  A person applying for a class "A" or special class "A"
 10 24 beer permit shall submit an application electronically, or in a
 10 25 manner prescribed by the administrator, which shall set forth
 10 26 under oath the following:
 10 27    a.  The name and place of residence of the applicant.
 10 28    b.  The names and addresses of all persons or, in the case of
 10 29 a corporation, the officers, directors, and persons owning or
 10 30 controlling ten percent or more of the capital stock thereof,
 10 31 having a financial interest, by way of loan, ownership, or
 10 32 otherwise, in the business.
 10 33    c.  The location of the premises where the applicant intends
 10 34 to operate.
 10 35    d.  The name of the owner of the premises and if the owner of
 11  1 the premises is not the applicant, whether the applicant is the
 11  2 actual lessee of the premises.
 11  3    e.  When required by the administrator, and in such form and
 11  4 containing such information as the administrator may require,
 11  5 a description of the premises where the applicant intends to
 11  6 use the permit, to include a sketch or drawing of the premises
 11  7 and, if applicable, the number of square feet of interior floor
 11  8 space which comprises the retail sales area of the premises.
 11  9    f.  Whether any person specified in paragraph "b" has ever
 11 10 been convicted of any offense against the laws of the United
 11 11 States, or any state or territory thereof, or any political
 11 12 subdivision of any such state or territory.
 11 13    g.  Any other information as required by the administrator.
 11 14    2.  The administrator shall issue a class "A" or special
 11 15 class "A" beer permit to any applicant who establishes all of
 11 16 the following:
 11 17    a.  That the applicant has submitted a completed application
 11 18 as required by subsection 1.
 11 19    b.  That the applicant is a person of good moral character as
 11 20 provided in section 123.3, subsection 34.
 11 21    c.  That the applicant is a citizen of the state of Iowa
 11 22 or, if a corporation, that the applicant is authorized to do
 11 23 business in the state.
 11 24    d.  That the premises where the applicant intends to use the
 11 25 permit conforms to all applicable laws, health regulations, and
 11 26 fire regulations, and constitutes a safe and proper place or
 11 27 building.
 11 28    e.  That the applicant gives consent to a person, pursuant
 11 29 to section 123.30, subsection 1, to enter upon the premises
 11 30 without a warrant during the business hours of the applicant
 11 31 to inspect for violations of the provisions of this chapter or
 11 32 ordinances and regulations that local authorities may adopt.
 11 33    f.  That the applicant has submitted a bond in the amount
 11 34 of ten thousand dollars in a manner prescribed by the
 11 35 administrator with good and sufficient sureties to be approved
 12  1 by the division conditioned upon compliance with this chapter.
 12  2    g.  If the person is applying for a special class "A" beer
 12  3 permit, that the applicant holds or has applied for a class "C"
 12  4 liquor control license or class "B" beer permit.
 12  5    Sec. 23.  Section 123.128, subsection 1, paragraph a, Code
 12  6 2017, is amended to read as follows:
 12  7    a.  All the information required of an applicant by section
 12  8 123.127, subsection 1, paragraph "a".
 12  9    Sec. 24.  Section 123.128, subsection 2, Code 2017, is
 12 10 amended to read as follows:
 12 11    2.  Fulfills the requirements of section 123.127, subsection
 12 12 1 2, paragraph paragraphs "b", "c", and "d".
 12 13    Sec. 25.  Section 123.129, subsection 2, paragraphs a and b,
 12 14 Code 2017, are amended to read as follows:
 12 15    a.  Submits an application electronically, or in a manner
 12 16 prescribed by the administrator, which shall state under
 12 17 oath all the information required of an applicant by section
 12 18 123.127, subsection 1, paragraph "a".
 12 19    b.  Establishes that the person is of good moral character as
 12 20 defined by this chapter Fulfills the requirements of section
 12 21 123.127, subsection 2, paragraphs "b", "c", and "d".
 12 22    Sec. 26.  Section 123.129, subsection 2, paragraph d, Code
 12 23 2017, is amended by striking the paragraph.
 12 24    Sec. 27.  Section 123.130, Code 2017, is amended to read as
 12 25 follows:
 12 26    123.130  Authority under class "A", class "AA", and special
 12 27 class "A", and special class "AA" beer permits.
 12 28    1.  Any person holding a class "A" or class "AA" beer permit
 12 29 issued by the division shall be authorized to manufacture
 12 30 and sell, or sell at wholesale, beer for consumption off the
 12 31 premises, such sales within the state to be made only to
 12 32 persons holding subsisting class "A", "B", or "C" beer permits,
 12 33 both a class "C" native wine permit and a class "A" wine
 12 34 permit pursuant to section 123.178B, subsection 4, or liquor
 12 35 control licenses issued in accordance with the provisions of
 13  1 this chapter. A class "A", class "AA", or special class "A",
 13  2 or special class "AA" beer permit does not grant authority to
 13  3 manufacture wine as defined in section 123.3, subsection 47.
 13  4    2.  All class "A" and class "AA" premises shall be located
 13  5 within the state. All beer received by the holder of a
 13  6 class "A" or class "AA" beer permit from the holder of a
 13  7 certificate of compliance before being resold must first come
 13  8 to rest on the licensed premises of the permit holder, must be
 13  9 inventoried, and is subject to the barrel tax when resold as
 13 10 provided in section 123.136. A class "A" or class "AA" beer
 13 11 permittee shall not store beer overnight except on premises
 13 12 licensed under a class "A" or class "AA" beer permit.
 13 13    3.  All special class "A" and special class "AA" premises
 13 14 shall be located within the state. A person who holds a
 13 15 special class "A" or special class "AA" beer permit for the
 13 16 same location at which the person holds a class "C" liquor
 13 17 control license or class "B" beer permit may manufacture
 13 18 and sell beer to be consumed on the premises, may sell at
 13 19 retail at the manufacturing premises for consumption off
 13 20 the premises beer that is transferred at the time of sale
 13 21 to another container subject to the requirements of section
 13 22 123.131, subsection 2, may sell beer to a class "A" or class
 13 23 "AA" beer permittee for resale purposes, and may sell beer to
 13 24 distributors outside of the state that are authorized by the
 13 25 laws of that jurisdiction to sell beer at wholesale.
 13 26    Sec. 28.  Section 123.131, Code 2017, is amended to read as
 13 27 follows:
 13 28    123.131  Authority under class "B" beer permit.
 13 29    1.  Subject to the provisions of this chapter, any person
 13 30 holding a class "B" beer permit shall be authorized to sell
 13 31 beer for consumption on or off the premises.  Sales of beer
 13 32 for consumption off the premises made pursuant to this section
 13 33 shall be made in original containers except as provided in
 13 34 subsection 2. However, unless otherwise provided in this
 13 35 chapter, no sale of beer shall be made for consumption on
 14  1 the premises unless the place where such service is made is
 14  2 equipped with tables and seats sufficient to accommodate not
 14  3 less than twenty=five persons at one time.
 14  4    2.  Subject to the rules of the division, sales of beer for
 14  5 consumption off the premises made pursuant to this section may
 14  6 be made in a container other than the original container only
 14  7 if all of the following requirements are met:
 14  8    a.  The beer is transferred from the original container to
 14  9 the container to be sold on the licensed premises at the time
 14 10 of sale.
 14 11    b.  The person transferring the beer from the original
 14 12 container to the container to be sold shall be eighteen years
 14 13 of age or more.
 14 14    c.  The container to be sold shall be no larger than
 14 15 seventy=two ounces.
 14 16    d.  The container to be sold shall be securely sealed by a
 14 17 method authorized by the division that is designed so that if
 14 18 the sealed container is reopened or the seal tampered with, it
 14 19 is visibly apparent that the seal on the container of beer has
 14 20 been tampered with or the sealed container has otherwise been
 14 21 reopened.
 14 22    3.  A container of beer other than the original container
 14 23 that is sold and sealed in compliance with the requirements of
 14 24 subsection 2 and the rules of the division shall not be deemed
 14 25 an open container subject to the requirements of sections
 14 26 321.284 and 321.284A if the sealed container is unopened and
 14 27 the seal has not been tampered with, and the contents of the
 14 28 container have not been partially removed.
 14 29    4.  A person holding a class "B" beer permit and a class "A"
 14 30 beer permit whose primary purpose is manufacturing beer may
 14 31 purchase wine from a wholesaler holding a class "A" wine permit
 14 32 for sale at retail for consumption on the premises covered by
 14 33 the class "B" beer permit.
 14 34    Sec. 29.  Section 123.134, subsection 1, Code 2017, is
 14 35 amended to read as follows:
 15  1    1.  The annual permit fee for a class "A" or special class
 15  2 "A" beer permit is two seven hundred fifty dollars.
 15  3    Sec. 30.  Section 123.134, subsection 2, Code 2017, is
 15  4 amended by striking the subsection.
 15  5    Sec. 31.  Section 123.135, Code 2017, is amended to read as
 15  6 follows:
 15  7    123.135  Certificate of compliance ==== civil penalty.
 15  8    1.  A manufacturer, brewer, bottler, importer, or vendor of
 15  9 beer, or any agent thereof, desiring to ship or sell beer, or
 15 10 have beer brought into this state for resale by a class "A"
 15 11 or class "AA" beer permittee, shall first make application
 15 12 for and be issued a brewer's certificate of compliance by the
 15 13 administrator for that purpose. The certificate of compliance
 15 14 expires at the end of one year from the date of issuance
 15 15 and shall be renewed for a like period upon application to
 15 16 the administrator unless otherwise revoked for cause. Each
 15 17 application for a certificate of compliance or renewal of a
 15 18 certificate shall be submitted electronically, or in a manner
 15 19 prescribed by the administrator, and shall be accompanied
 15 20 by a fee of five hundred dollars payable to the division.
 15 21 Each holder of a certificate of compliance shall furnish the
 15 22 information in a manner the administrator requires.
 15 23    2.  At the time of applying for a certificate of compliance,
 15 24 each applicant shall file with the division a list of all class
 15 25 "A" and class "AA" beer permittees with whom it intends to do
 15 26 business and shall designate the geographic area in which its
 15 27 products are to be distributed by such permittee. The listing
 15 28 of class "A" and class "AA" beer permittees and geographic area
 15 29 as filed with the division may shall be amended from time to
 15 30 time by the holder of a certificate of compliance as necessary
 15 31 to keep the listing current with the division.
 15 32    3.  All class "A" and class "AA" beer permit holders shall
 15 33 sell only those brands of beer which are manufactured, brewed,
 15 34 bottled, shipped, or imported by a person holding a current
 15 35 certificate of compliance. Any employee or agent working for
 16  1 or representing the holder of a certificate of compliance
 16  2 within this state shall submit electronically, or in a manner
 16  3 prescribed by the administrator, the employee's or agent's name
 16  4 and address with the division.
 16  5    4.  It shall be unlawful for any holder of a certificate of
 16  6 compliance or the holder's agent, or any class "A" or class
 16  7 "AA" beer permit holder or the beer permit holder's agent, to
 16  8 grant to any retail beer permit holder, directly or indirectly,
 16  9 any rebates, free goods, or quantity discounts on beer which
 16 10 are not uniformly offered to all retail permittees.
 16 11    5.  Notwithstanding any other penalties provided by this
 16 12 chapter, any holder of a certificate of compliance or any class
 16 13 "A" or class "AA" beer permit holder who violates this chapter
 16 14 or the rules adopted pursuant to this chapter is subject to a
 16 15 civil penalty not to exceed one thousand dollars or suspension
 16 16 of the holder's certificate or permit for a period not to
 16 17 exceed one year, or both such civil penalty and suspension.
 16 18 Civil penalties imposed under this section shall be collected
 16 19 and retained by the division.
 16 20    Sec. 32.  Section 123.136, subsection 1, Code 2017, is
 16 21 amended to read as follows:
 16 22    1.  In addition to the annual permit fee to be paid by all
 16 23 class "A" and class "AA" beer permittees under this chapter
 16 24 there shall be levied and collected from the permittees on all
 16 25 beer manufactured for sale or sold in this state at wholesale
 16 26 and on all beer imported into this state for sale at wholesale
 16 27 and sold in this state at wholesale, and from special class "A"
 16 28 and special class "AA" beer permittees on all beer manufactured
 16 29 for consumption on the premises and on all beer sold at retail
 16 30 at the manufacturing premises for consumption off the premises
 16 31 pursuant to section 123.130, subsection 3, a tax of five and
 16 32 eighty=nine hundredths dollars for every barrel containing
 16 33 thirty=one gallons, and at a like rate for any other quantity
 16 34 or for the fractional part of a barrel. However, no tax shall
 16 35 be levied or collected on beer shipped outside this state by a
 17  1 class "A" or class "AA" beer permittee or sold by one class "A"
 17  2 or class "AA" beer permittee to another class "A" or class "AA"
 17  3  beer permittee.
 17  4    Sec. 33.  Section 123.137, subsection 1, Code 2017, is
 17  5 amended to read as follows:
 17  6    1.  A person holding a class "A", class "AA", or special
 17  7 class "A", or special class "AA" beer permit shall, on or
 17  8 before the tenth day of each calendar month commencing on the
 17  9 tenth day of the calendar month following the month in which
 17 10 the person is issued a beer permit, make a report under oath
 17 11 to the division electronically, or in a manner prescribed by
 17 12 the administrator, showing the exact number of barrels of
 17 13 beer, or fractional parts of barrels, sold by the beer permit
 17 14 holder during the preceding calendar month. The report shall
 17 15 also state information the administrator requires, and beer
 17 16 permit holders shall at the time of filing a report pay to the
 17 17 division the amount of tax due at the rate fixed in section
 17 18 123.136.
 17 19    Sec. 34.  Section 123.138, subsection 1, Code 2017, is
 17 20 amended to read as follows:
 17 21    1.  Each class "A", class "AA", or special class "A", or
 17 22 special class "AA" beer permittee shall keep proper records
 17 23 showing the amount of beer sold by the permittee, and these
 17 24 records shall be at all times open to inspection by the
 17 25 administrator and to other persons pursuant to section 123.30,
 17 26 subsection 1. Each class "B" beer permittee, class "C" beer
 17 27 permittee, or retail liquor control licensee shall keep proper
 17 28 records showing each purchase of beer made by the permittee
 17 29 or licensee, and the date and the amount of each purchase and
 17 30 the name of the person from whom each purchase was made, which
 17 31 records shall be open to inspection pursuant to section 123.30,
 17 32 subsection 1, during normal business hours of the permittee or
 17 33 licensee.
 17 34    Sec. 35.  Section 123.139, Code 2017, is amended to read as
 17 35 follows:
 18  1    123.139  Separate locations ==== class "A", class "AA", or
 18  2  special class "A", or special class "AA" beer permit.
 18  3    A class "A", class "AA", or special class "A", or special
 18  4 class "AA" beer permittee having more than one place of
 18  5 business is required to have a separate beer permit for each
 18  6 separate place of business maintained by the permittee where
 18  7 beer is stored, warehoused, or sold.
 18  8    Sec. 36.  Section 123.142, Code 2017, is amended to read as
 18  9 follows:
 18 10    123.142  Unlawful sale and importation.
 18 11    1.  It is unlawful for the holder of a class "B" or class
 18 12 "C" beer permit issued under this chapter to sell beer, except
 18 13 beer brewed on the premises covered by a special class "A"
 18 14 or special class "AA" beer permit or beer purchased from a
 18 15 person holding a class "A" or class "AA" beer permit issued in
 18 16 accordance with this chapter, and on which the tax provided in
 18 17 section 123.136 has been paid. However, this section does not
 18 18 apply to class "D" liquor control licensees as provided in this
 18 19 chapter.
 18 20    2.  It shall be unlawful for any person not holding a class
 18 21 "A" or class "AA" beer permit to import beer into this state
 18 22 for the purpose of sale or resale.
 18 23    Sec. 37.  Section 123.143, subsection 3, Code 2017, is
 18 24 amended to read as follows:
 18 25    3.  Barrel tax revenues collected on beer manufactured in
 18 26 this state from a class "A" or class "AA" beer permittee which
 18 27 owns and operates a brewery located in Iowa shall be credited
 18 28 to the barrel tax fund hereby created in the office of the
 18 29 treasurer of state. Moneys deposited in the barrel tax fund
 18 30 shall not revert to the general fund of the state without a
 18 31 specific appropriation by the general assembly. Moneys in the
 18 32 barrel tax fund are appropriated to the economic development
 18 33 authority for purposes of section 15E.117.
 18 34    Sec. 38.  Section 123.144, subsection 1, Code 2017, is
 18 35 amended to read as follows:
 19  1    1.  No person shall bottle beer within the state of Iowa,
 19  2 except class "A", and special class "A", class "AA", and
 19  3 special class "AA" beer permittees who have complete equipment
 19  4 for bottling beer and who have received the approval of the
 19  5 local board of health as to sanitation. It shall be the duty of
 19  6 local boards of health to inspect the premises and equipment of
 19  7 class "A", and special class "A", class "AA", and special class
 19  8 "AA" beer permittees who desire to bottle beer.
 19  9                          DIVISION III
 19 10                    NATIVE DISTILLED SPIRITS
 19 11    Sec. 39.  Section 123.3, subsections 28 and 29, Code 2017,
 19 12 are amended to read as follows:
 19 13    28.  "Micro=distilled "Native distilled spirits" means
 19 14 distilled spirits fermented, distilled, or, for a period of
 19 15 two years, barrel matured on the licensed premises of the
 19 16 micro=distillery native distillery where fermented, distilled,
 19 17 or matured. "Micro=distilled spirits" "Native distilled spirits"
 19 18  also includes blended or mixed spirits comprised solely of
 19 19 spirits fermented, distilled, or, for a period of two years,
 19 20 barrel matured at a micro=distillery native distillery.
 19 21    29.  "Micro=distillery" "Native distillery" means a
 19 22 business with an operational operating still which, combining
 19 23 all production facilities of the business, produces and
 19 24 manufactures less than fifty thousand proof gallons of native
 19 25  distilled spirits on an annual basis.
 19 26    Sec. 40.  Section 123.30, subsection 3, paragraph c, Code
 19 27 2017, is amended by adding the following new subparagraph:
 19 28    NEW SUBPARAGRAPH.  (3)  A class "C" native distilled spirits
 19 29 liquor control license may be issued to a native distillery but
 19 30 shall be issued in the name of the individuals who actually own
 19 31 the business and shall only be issued to a native distillery
 19 32 which, combining all production facilities of the business,
 19 33 produces and manufactures not more than one hundred thousand
 19 34 proof gallons of distilled spirits on an annual basis. The
 19 35 license shall authorize the holder to sell native distilled
 20  1 spirits manufactured on the premises of the native distillery
 20  2 to patrons by the individual drink for consumption on the
 20  3 premises. All native distilled spirits sold by a native
 20  4 distillery for on=premises consumption shall be purchased from
 20  5 a class "E" liquor control licensee.
 20  6    Sec. 41.  Section 123.32, subsection 1, Code 2017, is amended
 20  7 to read as follows:
 20  8    1.  Filing of application.  An application for a class "A",
 20  9 class "B", class "C", or class "E" liquor control license,   for
 20 10 a class "A" micro=distilled native distilled spirits permit
 20 11  license, for a retail beer permit as provided in sections
 20 12 123.128 and 123.129, or for a class "B", class "B" native, or
 20 13 class "C" native retail wine permit as provided in section
 20 14 123.178, 123.178A, or 123.178B, accompanied by the necessary
 20 15 fee and bond, if required, shall be filed with the appropriate
 20 16 city council if the premises for which the license or permit
 20 17 is sought are located within the corporate limits of a city,
 20 18 or with the board of supervisors if the premises for which the
 20 19 license or permit is sought are located outside the corporate
 20 20 limits of a city. An application for a class "D" liquor
 20 21 control license and for a class "A" beer or class "A" wine
 20 22 permit, accompanied by the necessary fee and bond, if required,
 20 23 shall be submitted to the division electronically, or in a
 20 24 manner prescribed by the administrator, which shall proceed in
 20 25 the same manner as in the case of an application approved by
 20 26 local authorities.
 20 27    Sec. 42.  Section 123.36, Code 2017, is amended by adding the
 20 28 following new subsection:
 20 29    NEW SUBSECTION.  3A.  Class "C" native distilled spirits
 20 30 liquor control license, the sum of two hundred fifty dollars.
 20 31    Sec. 43.  Section 123.36, subsection 5, Code 2017, is amended
 20 32 to read as follows:
 20 33    5.  Any club, hotel, motel, native distillery, or commercial
 20 34 establishment holding a liquor control license, subject to
 20 35 section 123.49, subsection 2, paragraph "b", may apply for and
 21  1 receive permission to sell and dispense alcoholic liquor and
 21  2 wine to patrons on Sunday for consumption on the premises only,
 21  3 and beer for consumption on or off the premises between the
 21  4 hours of 8:00 a.m. on Sunday and 2:00 a.m. on the following
 21  5 Monday. A class "D" liquor control licensee may apply for and
 21  6 receive permission to sell and dispense alcoholic beverages to
 21  7 patrons for consumption on the premises only between the hours
 21  8 of 8:00 a.m. on Sunday and 2:00 a.m. on the following Monday.
 21  9 For the privilege of selling beer, wine, and alcoholic liquor
 21 10 on the premises on Sunday the liquor control license fee of the
 21 11 applicant shall be increased by twenty percent of the regular
 21 12 fee prescribed for the license pursuant to this section, and
 21 13 the privilege shall be noted on the liquor control license.
 21 14    Sec. 44.  NEW SECTION.  123.43  Class "A" native distilled
 21 15 spirits license ==== application and issuance ==== fees.
 21 16    1.  A person applying for a class "A" native distilled
 21 17 spirits license shall submit an application electronically, or
 21 18 in a manner prescribed by the administrator, which shall set
 21 19 forth under oath the following:
 21 20    a.  The name and place of residence of the applicant.
 21 21    b.  The names and addresses of all persons or, in the case of
 21 22 a corporation, the officers, directors, and persons owning or
 21 23 controlling ten percent or more of the capital stock thereof,
 21 24 having a financial interest, by way of loan, ownership, or
 21 25 otherwise, in the business.
 21 26    c.  The location of the premises where the applicant intends
 21 27 to operate.
 21 28    d.  The name of the owner of the premises and if the owner of
 21 29 the premises is not the applicant, whether the applicant is the
 21 30 actual lessee of the premises.
 21 31    e.  When required by the administrator, and in such form and
 21 32 containing such information as the administrator may require,
 21 33 a description of the premises where the applicant intends to
 21 34 use the license, to include a sketch or drawing of the premises
 21 35 and, if applicable, the number of square feet of interior floor
 22  1 space which comprises the retail sales area of the premises.
 22  2    f.  Whether any person specified in paragraph "b" has ever
 22  3 been convicted of any offense against the laws of the United
 22  4 States, or any state or territory thereof, or any political
 22  5 subdivision of any such state or territory.
 22  6    g.  Any other information as required by the administrator.
 22  7    2.  Except as otherwise provided in this chapter, the
 22  8 administrator shall issue a class "A" native distilled spirits
 22  9 license to any applicant who establishes all of the following:
 22 10    a.  That the applicant has submitted a completed application
 22 11 as required by subsection 1.
 22 12    b.  That the applicant is a person of good moral character as
 22 13 provided in section 123.3, subsection 34.
 22 14    c.  That the applicant is a citizen of the state of Iowa
 22 15 or, if a corporation, that the applicant is authorized to do
 22 16 business in the state.
 22 17    d.  That the applicant is a bona fide manufacturer of
 22 18 alcoholic liquors, and that the applicant will faithfully
 22 19 observe and comply with all laws, rules, and regulations
 22 20 governing the manufacture and sale of alcoholic liquor.
 22 21    e.  That the premises where the applicant intends to use the
 22 22 license conforms to all applicable laws, health regulations,
 22 23 and fire regulations, and constitutes a safe and proper place
 22 24 or building.
 22 25    f.  That the applicant gives consent to a person, pursuant
 22 26 to section 123.30, subsection 1, to enter upon the premises
 22 27 without a warrant during the business hours of the applicant
 22 28 to inspect for violations of the provisions of this chapter or
 22 29 ordinances and regulations that local authorities may adopt.
 22 30    3.  A class "A" native distilled spirits license for a native
 22 31 distillery shall be issued and renewed annually upon payment of
 22 32 a fee of five hundred dollars.
 22 33    4.  A violation of the requirements of this chapter shall
 22 34 subject the licensee to the general penalties provided in this
 22 35 chapter and shall constitute grounds for imposition of a civil
 23  1 penalty or suspension or revocation of the license after notice
 23  2 and opportunity for a hearing pursuant to section 123.39 and
 23  3 chapter 17A.
 23  4    Sec. 45.  Section 123.43A, Code 2017, is amended to read as
 23  5 follows:
 23  6    123.43A  Micro=distilled spirits ==== permit Native
 23  7 distilleries.
 23  8    1.  Subject to rules of the division, a micro=distillery
 23  9  native distillery holding a class "A" micro=distilled native
 23 10 distilled spirits permit pursuant to this section license
 23 11 issued pursuant to section 123.43 may sell or offer for sale
 23 12 micro=distilled native distilled spirits. As provided in this
 23 13 section, sales of native distilled spirits manufactured on the
 23 14 premises may be made at retail for off=premises consumption
 23 15 when sold on the premises of the micro=distillery native
 23 16 distillery that manufactures micro=distilled native distilled
 23 17  spirits. All sales intended for resale in this state shall be
 23 18 made through the state's wholesale distribution system.
 23 19    2.  A micro=distillery native distillery shall not sell
 23 20 more than one and one=half liters per person per day, of
 23 21 micro=distilled native distilled spirits on the premises of
 23 22 the micro=distillery native distillery.  However, a native
 23 23 distillery which, combining all production facilities of
 23 24 the business, produces and manufactures not more than one
 23 25 hundred thousand proof gallons of native distilled spirits
 23 26 on an annual basis, may sell not more than nine liters per
 23 27 person per day, of native distilled spirits. In addition, a
 23 28 micro=distillery native distillery shall not directly ship
 23 29 micro=distilled native distilled spirits for sale at retail.
 23 30 The micro=distillery native distillery shall maintain records
 23 31 of individual purchases of micro=distilled native distilled
 23 32  spirits at the micro=distillery native distillery for three
 23 33 years.
 23 34    3.  A micro=distillery native distillery shall not sell
 23 35 micro=distilled native distilled spirits other than as
 24  1 permitted in this chapter and shall not allow micro=distilled
 24  2  native distilled spirits sold for consumption off the premises
 24  3  to be consumed upon the premises of the micro=distillery native
 24  4 distillery. However, as a part of a micro=distillery tour,
 24  5 micro=distilled native distilled spirits may be tasted pursuant
 24  6 to the rules of the division on the premises where fermented,
 24  7 distilled, or matured, when no charge is made for the tasting.
 24  8    4.  A class "A" micro=distilled spirits permit for a
 24  9 micro=distillery shall be issued and renewed annually upon
 24 10 payment of a fee of five hundred dollars.
 24 11    5.  The sale of micro=distilled native distilled spirits to
 24 12 the division for wholesale disposition and sale by the division
 24 13 shall be subject to the requirements of this chapter regarding
 24 14 such disposition and sale.
 24 15    6.  5.  The division shall issue no more than three permits
 24 16 under this section class "A" native distilled spirits licenses
 24 17  to a person. In addition, a micro=distillery native distillery
 24 18  issued a permit under this section class "A" native distilled
 24 19 spirits license shall file with the division, on or before the
 24 20 fifteenth day of each calendar month, all documents filed by
 24 21 the micro=distillery native distillery with the alcohol and
 24 22 tobacco tax and trade bureau of the United States department of
 24 23 the treasury, including all production, storage, and processing
 24 24 reports.
 24 25    7.  Micro=distilled spirits purchased at a micro=distillery
 24 26 shall not be consumed on any property owned, operated, or
 24 27 controlled by a micro=distillery.
 24 28    6.  Notwithstanding any provision of this chapter to the
 24 29 contrary or the fact that a person is the holder of a class
 24 30 "A" native distilled spirits license, a native distillery
 24 31 which, combining all production facilities of the business,
 24 32 produces and manufactures not more than one hundred thousand
 24 33 proof gallons of native distilled spirits on an annual basis
 24 34 may sell those native distilled spirits manufactured on the
 24 35 premises of the native distillery for consumption on the
 25  1 premises by applying for a class "C" native distilled spirits
 25  2 liquor control license as provided in section 123.30.  A native
 25  3 distillery may be granted not more than one class "C" native
 25  4 distilled spirits liquor control license.  All native distilled
 25  5 spirits sold by a native distillery for on=premises consumption
 25  6 shall be purchased from a class "E" liquor control licensee. A
 25  7 manufacturer of native distilled spirits may be issued a class
 25  8 "C" native distilled spirits liquor control license regardless
 25  9 of whether the manufacturer is also a manufacturer of native
 25 10 wine pursuant to a class "A" wine permit.  A native distillery
 25 11 engaged in the business of manufacturing beer shall not be
 25 12 issued a class "C" native distilled spirits liquor control
 25 13 license.
 25 14    7.  A native distillery may sell the native distilled spirits
 25 15 it manufactures to customers outside the state.
 25 16    Sec. 46.  Section 123.56, subsection 5, Code 2017, is amended
 25 17 to read as follows:
 25 18    5.  Notwithstanding any other provision of this chapter, a
 25 19 person engaged in the business of manufacturing native wine may
 25 20 sell native wine at retail for consumption on the premises of
 25 21 the manufacturing facility by applying for a class "C" native
 25 22 wine permit as provided in section 123.178B. A manufacturer
 25 23 of native wine may be granted not more than one class "C"
 25 24 native wine permit.  A manufacturer of native wine may be
 25 25 issued a class "C" native wine permit regardless of whether the
 25 26 manufacturer is also a manufacturer of native distilled spirits
 25 27 pursuant to a class "A" native distilled spirits license.
 25 28    Sec. 47.  Section 123.173A, subsections 4 and 7, Code 2017,
 25 29 are amended to read as follows:
 25 30    4.  The authorized nonprofit entity conducting the charity
 25 31 beer, spirits, and wine auction shall obtain the beer, spirits,
 25 32 and wine to be auctioned at the charity beer, spirits, and wine
 25 33 auction from an Iowa retail beer permittee, an Iowa retail
 25 34 liquor control licensee, or an Iowa retail wine permittee, or
 25 35 may receive donations of beer, spirits, or wine to be auctioned
 26  1 at the charity beer, spirits, and wine auction from persons
 26  2 who purchased the donated beer, spirits, or wine from an Iowa
 26  3 retail beer permittee, an Iowa retail liquor control licensee,
 26  4 an Iowa micro=distilled class "A" native distilled spirits
 26  5 permittee licensee, or an Iowa retail wine permittee and who
 26  6 present a receipt documenting the purchase at the time the
 26  7 beer, spirits, or wine is donated. The authorized nonprofit
 26  8 entity conducting the charity beer, spirits, and wine auction
 26  9 shall retain a copy of the receipt for a period of one year from
 26 10 the date of the charity beer, spirits, and wine auction.
 26 11    7.  A liquor control licensee, beer permittee,
 26 12 micro=distilled class "A" native distilled spirits permittee
 26 13  licensee, or wine permittee shall not purchase beer, spirits,
 26 14 or wine at a charity beer, spirits, and wine auction. The
 26 15 charity beer, spirits, and wine auction may be conducted on a
 26 16 premises for which a class "B" liquor control license or class
 26 17 "C" liquor control license has been issued, provided that the
 26 18 liquor control licensee does not participate in the charity
 26 19 beer, spirits, and wine auction, supply beer, spirits, or wine
 26 20 to be auctioned at the charity beer, spirits, and wine auction,
 26 21 or receive any of the proceeds of the charity beer, spirits,
 26 22 and wine auction.
 26 23                           EXPLANATION
 26 24 The inclusion of this explanation does not constitute agreement with
 26 25 the explanation's substance by the members of the general assembly.
 26 26    This bill concerns alcoholic beverage control and matters
 26 27 under the purview of the alcoholic beverages division of the
 26 28 department of commerce.
 26 29    DIVISION I ==== ALCOHOLIC BEVERAGE CONTROL.  Code section
 26 30 123.3, providing definitions, is amended.  The bill amends the
 26 31 definition of "licensed premises" to include noncontiguous
 26 32 areas or places susceptible of a precise description.
 26 33    Code section 123.22 is amended to allow individuals to
 26 34 manufacture, sell, or transport ingredients and devices used to
 26 35 make homemade beer.  Current law allows this for homemade wine.
 27  1 Code section 123.23, concerning a distiller's certificate of
 27  2 compliance, is amended to delete a reference that a listing of
 27  3 authorized agents of the certificate holder be amended "from
 27  4 time to time".  The bill does not eliminate the requirement
 27  5 that the listing be amended as necessary.
 27  6    Code section 123.28, concerning restrictions on
 27  7 transportation, is amended by dividing the section into
 27  8 numbered subsections.
 27  9    Code section 123.30, concerning liquor control licenses,
 27 10 is amended by removing cash payment as a type of payment
 27 11 for purchasing alcoholic liquor from the alcoholic beverages
 27 12 division.  The bill retains language in current law that
 27 13 requires payment by other means that ensure the division
 27 14 receives full payment in advance of delivery of alcoholic
 27 15 liquor.
 27 16    Code section 123.31, concerning application contents for
 27 17 a liquor control license, is amended by striking provisions
 27 18 requiring the applicant to set forth whether the applicant
 27 19 possesses a federal gambling stamp and whether, if required,
 27 20 all designated security employees have received security
 27 21 employee training and certification as required by Code section
 27 22 123.32.
 27 23    Code section 123.32 is amended to provide that if an
 27 24 application for a liquor control license or other permit is
 27 25 disapproved by the administrator of the alcoholic beverages
 27 26 division, the appropriate local authority shall be notified
 27 27 electronically, or in a manner prescribed by the administrator,
 27 28 instead of by certified mail.  The applicant is still required
 27 29 to be notified of the disapproval by certified mail.
 27 30    Code section 123.33, concerning records required to be
 27 31 maintained by a licensee or permittee, is amended to describe
 27 32 the types of records to be maintained, which shall include
 27 33 income statements, balance sheets, and purchase and sale
 27 34 invoices and ledgers.
 27 35    Code section 123.34, concerning seasonal licenses, is
 28  1 amended to provide that an applicant may apply for a new
 28  2 seasonal permit or license at the same location after two
 28  3 months.
 28  4    Code section 123.49 is amended to consolidate the rules
 28  5 governing Sunday sales of alcoholic liquor, wine, or beer
 28  6 within subsection 2, paragraph "b", of that section.
 28  7    Code section 123.51, concerning allowable signs and branded
 28  8 advertising of a licensee authorized to sell liquor, wine,
 28  9 or beer at retail, is amended to provide that signs or other
 28 10 advertising matter may be erected inside the premises and
 28 11 inside a window facing outward from the premises.
 28 12    Code section 123.175, concerning class "A" or retail
 28 13 wine permit applications, is stricken and rewritten by the
 28 14 bill. The bill provides specifically for the contents of
 28 15 the application to be submitted to the administrator of the
 28 16 alcoholic beverages division and what the applicant must
 28 17 establish before the administrator issues a permit.  In
 28 18 addition to requirements currently provided in Code section
 28 19 123.175, the bill provides that an applicant that is a
 28 20 corporation shall list all officers and persons with a certain
 28 21 financial interest in the corporation in the application.  The
 28 22 bill also requires an applicant to state in the application
 28 23 whether certain persons required to be listed in the
 28 24 application have been convicted of any offense and, if required
 28 25 by the administrator of the division, to include in the
 28 26 application a sketch or drawing of the premises.  Code section
 28 27 123.187 is amended to reflect the rewritten Code section.
 28 28    The bill also amends Code section 123.177 to allow a class
 28 29 "A" wine permit holder to sell wine to a person holding both a
 28 30 class "B" beer permit and a class "A" beer permit.
 28 31    Code section 123.178B, concerning class "C" native wine
 28 32 permits, is amended to specify that a permittee authorized to
 28 33 purchase beer for sale at retail may sell it for consumption
 28 34 on or off the premises covered by the class "C" native wine
 28 35 permit.
 29  1 Code section 123.180, concerning a vintner's certificate of
 29  2 compliance, is amended to provide that the listing of class "A"
 29  3 wine permittees the applicant intends to do business with that
 29  4 is filed with the alcoholic beverages division shall be amended
 29  5 as necessary to keep the listing current.
 29  6    Code section 123.183 is amended to provide that the
 29  7 gallonage tax on wine is collected when the wine is sold at
 29  8 wholesale.
 29  9    DIVISION II ==== BEER PERMITS.  This division eliminates
 29 10 class "AA" and special class "AA" beer permits and makes other
 29 11 changes relative to beer permits.
 29 12    Code section 123.124, concerning beer permit classes, is
 29 13 rewritten to reflect the elimination of class "AA" and special
 29 14 class "AA" beer permits. The Code section is also amended to
 29 15 refer to the Code sections that describe the authority for each
 29 16 beer permit class.
 29 17    Code section 123.127, concerning class "A" or class "AA"
 29 18 and special class "A" or special class "AA" beer permits, is
 29 19 stricken and rewritten by the bill.  The bill eliminates the
 29 20 class "AA" and special class "AA" beer permits and provides
 29 21 specifically for the contents of the application to be
 29 22 submitted to the administrator of the alcoholic beverages
 29 23 division and what the applicant must establish before the
 29 24 administrator issues a permit. The bill also increases from
 29 25 $5,000 to $10,000 the amount of the bond an applicant must
 29 26 submit to the administrator.
 29 27    In addition to requirements currently provided in Code
 29 28 section 123.127, the bill provides that an applicant that is a
 29 29 corporation shall list all officers and persons with a certain
 29 30 financial interest in the corporation in the application.  The
 29 31 bill also requires an applicant to state in the application
 29 32 whether certain persons required to be listed in the
 29 33 application have been convicted of any offense and, if required
 29 34 by the administrator of the division, to include in the
 29 35 application a sketch or drawing of the premises.  Code sections
 30  1 123.128 and 123.129, concerning class "B" and class "C" beer
 30  2 permits, are amended to reflect the rewritten Code section.
 30  3    Code section 123.130, is amended to eliminate class "AA" and
 30  4 special class "AA" beer permits, allow a class "A" beer permit
 30  5 holder to sell beer to persons holding both a class "C" native
 30  6 wine permit and a class "A" wine permit, and provides that
 30  7 certain special class "A" beer permittees may sell at retail
 30  8 at the manufacturing premises for consumption off the premises
 30  9 beer that is transferred at the time of sale to another
 30 10 container subject to the requirements of Code section 123.131
 30 11 as provided in the bill.
 30 12    Code section 123.131, concerning authority under a class "B"
 30 13 beer permit, is amended to allow a class "B" beer permittee
 30 14 whose primary purpose is manufacturing beer that also holds
 30 15 a class "A" beer permit to purchase wine from a wholesaler
 30 16 for sale at retail or consumption on the premises covered by
 30 17 the class "B" beer permit. In addition, the Code section is
 30 18 amended to provide that sales of beer for consumption off the
 30 19 premises may be made in a container other than the original
 30 20 container that is no larger than 72 ounces under certain
 30 21 circumstances and shall not be deemed an open container for
 30 22 purposes of Code sections 321.284 and 321.284A.
 30 23    Code section 123.134, concerning beer permit fees, is
 30 24 amended to increase the annual fee for a class "A" or special
 30 25 class "A" beer permit from $250 to $750.
 30 26    Code section 123.135, concerning a certificate of compliance
 30 27 concerning beer, is amended to provide that the listing of
 30 28 class "A" permittees and geographic area as filed with the
 30 29 alcoholic beverages division shall be amended as necessary to
 30 30 keep the listing current.
 30 31    Code section 123.136, concerning the barrel tax on beer,
 30 32 is amended to provide that the tax applies to all beer
 30 33 sold at retail by a special class "A" beer permittee at the
 30 34 manufacturing premises for consumption off the premises.
 30 35    DIVISION III ==== NATIVE DISTILLED SPIRITS.  Code section
 31  1 123.3, providing definitions, is amended to change the terms
 31  2 "micro=distilled spirits" and "micro=distillery" to "native
 31  3 distilled spirits" and "native distillery".  In addition, the
 31  4 bill eliminates the requirement that a native distillery has to
 31  5 produce and manufacture less than 50 proof gallons of distilled
 31  6 spirits annually.  Corresponding changes in Code chapter 123
 31  7 are made to reflect the changed definitions.
 31  8    Code section 123.30, concerning liquor control licenses,
 31  9 is amended to provide for the issuance of a class "C" native
 31 10 distilled spirits license to a native distillery that produces
 31 11 not more than 100,000 proof gallons of native distilled spirits
 31 12 on an annual basis which authorizes the holder to sell native
 31 13 distilled spirits manufactured on the premises for consumption
 31 14 on the premises.
 31 15    Code section 123.32, concerning applications for certain
 31 16 licenses, is amended to change a reference to a class "A"
 31 17 micro=distilled spirits permit to a class "A" native distilled
 31 18 spirits license.
 31 19    Code section 123.36 is amended to allow a native distillery
 31 20 the ability to make certain sales of alcoholic liquor, wine,
 31 21 and beer on Sundays in the same manner as a club, hotel, motel,
 31 22 or other commercial establishment.
 31 23    New Code section 123.43 provides for the information
 31 24 necessary for a person to apply for and be issued a class
 31 25 "A" native distilled spirits license. The bill requires the
 31 26 applicant to submit information regarding the applicant and the
 31 27 location of the native distillery. The application shall also
 31 28 provide that the applicant is of good moral character, that the
 31 29 applicant is a bona fide manufacturer of alcoholic liquors and
 31 30 will comply with laws relating to alcoholic liquors, and that
 31 31 the premises for which the license is sought complies with all
 31 32 applicable zoning ordinances.   The annual fee for the license
 31 33 shall be $500. The bill also provides that a violation of the
 31 34 requirements of Code chapter 123 shall subject the licensee to
 31 35 the penalties provided by the Code chapter and shall constitute
 32  1 grounds for imposition of a civil penalty or suspension or
 32  2 revocation of the license.
 32  3    Code section 123.43A, providing for a class "A"
 32  4 micro=distilled spirits permit, is amended to reflect the
 32  5 change of the term to native distilled spirits. The bill
 32  6 changes the permit to a license and provides an exception to
 32  7 the current one and one=half liters per day limit on sales
 32  8 of such spirits on the premises and instead allows sales of
 32  9 nine liters per person per day for those native distilleries
 32 10 that produce not more than 100,000 proof gallons of native
 32 11 distilled spirits on an annual basis.  The bill also allows
 32 12 a native distillery to sell the spirits it manufactures to
 32 13 customers outside the state. The bill also allows a native
 32 14 distillery that produces not more than 100,000 proof gallons
 32 15 of native distilled spirits on an annual basis to sell the
 32 16 spirits it manufactures for consumption on the premises of the
 32 17 manufacturing facility by applying for a new class "C" native
 32 18 distilled spirits liquor control license. The bill limits a
 32 19 native distillery to no more than one of the new class "C"
 32 20 licenses. The bill also provides that a native distillery
 32 21 may be issued a class "C" license regardless of whether the
 32 22 manufacturer is also a manufacturer of native wine but shall
 32 23 not be issued a class "C" license if the native distillery is
 32 24 engaged in the business of manufacturing beer.
 32 25    Code section 123.56, concerning native wines, is amended to
 32 26 allow a manufacturer of native wine to be issued a class "C"
 32 27 native wine permit regardless of whether the manufacturer also
 32 28 manufactures native distilled spirits.
       LSB 1266HZ (3) 87
       ec/nh