Bill Text: IA SF2374 | 2021-2022 | 89th General Assembly | Enrolled

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Bill Title: A bill for an act concerning the regulation of food and beverages, relating to alcoholic beverage control and delivery of restaurant food, providing for fees and civil penalties, and including effective date and applicability provisions. (Formerly SF 2350, SSB 3140.) Effective date: 07/01/2022, 06/07/2022, 01/01/2023. Applicability date: 07/01/2022.

Spectrum: Committee Bill

Status: (Passed) 2022-06-27 - Fiscal note. [SF2374 Detail]

Download: Iowa-2021-SF2374-Enrolled.html

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Senate File 2374 - Enrolled
Senate File 2374
AN ACT
CONCERNING THE REGULATION OF FOOD AND BEVERAGES, RELATING
TO ALCOHOLIC BEVERAGE CONTROL AND DELIVERY OF RESTAURANT
FOOD, PROVIDING FOR FEES AND CIVIL PENALTIES, AND INCLUDING
EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
RETAIL ALCOHOL LICENSES
Section 1. Section 123.30, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.30 Retail alcohol licenses —— classes.
1. a. A retail alcohol license may be issued to any person
who is of good moral character as defined by this chapter.
b. As a condition for issuance of a retail alcohol license
or wine or beer permit, the applicant must give consent
to members of the fire, police, and health departments and
the building inspector of cities; the county sheriff or
deputy sheriff; members of the department of public safety;
representatives of the division and of the department of
inspections and appeals; certified police officers; and
any official county health officer to enter upon areas of
the premises where alcoholic beverages are stored, served,
or sold, without a warrant during business hours of the
licensee or permittee to inspect for violations of this
chapter or ordinances and regulations that cities and boards
of supervisors may adopt. However, a subpoena issued under

Senate File 2374, p. 2
section 421.17 or a warrant is required for inspection of
private records, a private business office, or attached living
quarters. Persons who are not certified peace officers shall
limit the scope of their inspections of licensed premises
to the regulatory authority under which the inspection is
conducted. All persons who enter upon a licensed premises to
conduct an inspection shall present appropriate identification
to the owner of the establishment or the person who appears
to be in charge of the establishment prior to commencing
an inspection; however, this provision does not apply to
undercover criminal investigations conducted by peace officers.
c. As a further condition for the issuance of a class “E”
retail alcohol 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 means that ensure that the division will receive
full payment in advance of delivery of the alcoholic liquor.
d. A class “E” retail alcohol license may be issued to a
city council for premises located within the limits of the city
if there are no class “E” retail alcohol licensees operating
within the limits of the city and no other applications for a
class “E” license for premises located within the limits of
the city at the time the city council’s application is filed.
If a class “E” retail alcohol license is subsequently issued
to a private person for premises located within the limits of
the city, the city council shall surrender its license to the
division within one year of the date that the class “E” retail
alcohol licensee begins operating, liquidate any remaining
assets connected with the liquor store, and cease operating the
liquor store.
2. A retail alcohol license shall not be issued for premises
which do not constitute a safe and proper place or building
and which do not conform to all applicable laws, ordinances,
resolutions, and health and fire regulations. A licensee
shall not have or maintain any interior access to residential
or sleeping quarters unless permission is granted by the
administrator in the form of a living quarters permit.

Senate File 2374, p. 3
3. Retail alcohol licenses issued under this chapter shall
be of the following classes:
a. Class “B”.
(1) (a) A class “B” retail alcohol license may be
issued and shall authorize the holder to purchase wine from
a class “A” wine permittee only and beer from a class “A”
beer permittee only, and to sell wine and beer in original
unopened containers at retail to patrons for consumption off
the licensed premises.
(b) The holder of a class “B” retail alcohol license may
sell wine to class “C”, special class “C”, class “D”, and class
“F” retail alcohol licensees for resale for consumption on
the premises. Such wine sales shall be in quantities of less
than one case of any wine brand but not more than one such
sale shall be made to the same retail alcohol licensee in a
twenty-four-hour period.
(c) The holder of a class “B” retail alcohol license may
sell beer to class “C”, special class “C”, class “D”, and class
“F” retail alcohol licensees for resale for consumption on
the premises. Such beer sales shall be in quantities of not
more than five cases of beer, high alcoholic content beer, and
canned cocktails, but not more than one such sale shall be
made to the same retail alcohol licensee in a twenty-four-hour
period. A class “A” beer permittee shall be held harmless
concerning any beer resold as authorized by this subparagraph
division.
(2) A special class “B” retail native wine license shall
authorize the holder to purchase wine from a native winery
holding a class “A” wine permit and to sell native wine only at
retail for consumption off the licensed premises.
b. Class “C”.
(1) (a) A class “C” retail alcohol license may be issued to
a commercial establishment but must be issued in the name of
the individuals who actually own the entire business.
(b) The holder of a class “C” retail alcohol license shall
be authorized to purchase alcoholic beverages as follows:
(i) Alcoholic liquors in original unopened containers from
class “E” retail alcohol licensees only.
(ii) Wine from class “A” wine permittees.

Senate File 2374, p. 4
(iii) Wine from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of less than one
case of any wine brand in a twenty-four-hour period, but not
more than one such purchase shall be made by the licensee in a
twenty-four-hour period.
(iv) Beer from class “A” beer permittees.
(v) Beer from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of not more than
five cases of beer, high alcoholic content beer, and canned
cocktails, but not more than one such purchase shall be made by
the licensee in a twenty-four-hour period. A class “A” beer
permittee shall be held harmless concerning any beer resold as
authorized by this subparagraph subdivision.
(c) The holder of a class “C” retail alcohol license
shall be authorized to sell alcoholic beverages to patrons by
the individual drink for consumption on the premises only.
However, alcoholic liquor, wine, and beer in original unopened
containers may also be sold for consumption off the premises.
In addition, mixed drinks or cocktails may also be sold for
consumption off the premises subject to the requirements of
section 123.49, subsection 2, paragraph “d” .
(d) The holder of a class “C” retail alcohol license may
also hold a special class “A” beer permit for the premises
licensed under a class “C” retail alcohol license for the
purpose of operating a brewpub pursuant to this chapter.
(2) (a) A special class “C” retail alcohol license may be
issued to a commercial establishment.
(b) The holder of a special class “C” retail alcohol license
shall be authorized to purchase alcoholic beverages as follows:
(i) Wine from class “A” wine permittees.
(ii) Wine from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of less than one
case of any wine brand in a twenty-four-hour period, but not
more than one such purchase shall be made by the licensee in a
twenty-four-hour period.
(iii) Beer from class “A” beer permittees.
(iv) Beer from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of not more than
five cases of beer, high alcoholic content beer, and canned

Senate File 2374, p. 5
cocktails, but not more than one such purchase shall be made by
the licensee in a twenty-four-hour period. A class “A” beer
permittee shall be held harmless concerning any beer resold as
authorized by this subparagraph subdivision.
(c) The holder of a special class “C” retail alcohol
license shall be authorized to sell wine and beer to patrons
by the individual drink for consumption on the premises only.
However, wine and beer in original unopened containers may also
be sold for consumption off the premises.
(d) The license issued to holders of a special class “C”
retail alcohol license shall clearly state on its face that the
license is limited.
c. Class “D”.
(1) A class “D” retail alcohol license may be issued
to a railway corporation, to an air common carrier, and to
passenger-carrying boats or ships for hire with a capacity of
twenty-five persons or more operating in inland or boundary
waters, and shall authorize the holder to sell or furnish
alcoholic beverages to passengers for consumption only on
trains, watercraft as described in this section, or aircraft,
respectively. Each license is valid throughout the state.
Only one license is required for all trains, watercraft, or
aircraft operated in the state by the licensee. However, if a
watercraft is an excursion gambling boat licensed under chapter
99F, the owner shall obtain a separate class “D” retail alcohol
license for each excursion gambling boat operating in the
waters of this state.
(2) A class “D” retail alcohol licensee who operates a train
or a watercraft intrastate only, or an excursion gambling boat
licensed under chapter 99F, shall be authorized to purchase
alcoholic beverages as follows:
(a) Alcoholic liquors in original unopened containers from
class “E” retail alcohol licensees only.
(b) Wine from class “A” wine permittees.
(c) Wine from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of less than one
case of any wine brand in a twenty-four-hour period, but not
more than one such purchase shall be made by the licensee in a
twenty-four-hour period.

Senate File 2374, p. 6
(d) Beer from class “A” beer permittees.
(e) Beer from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of not more than
five cases of beer, high alcoholic content beer, and canned
cocktails, but not more than one such purchase shall be made by
the licensee in a twenty-four-hour period. A class “A” beer
permittee shall be held harmless concerning any beer resold as
authorized by this subparagraph division.
d. Class “E”.
(1) A class “E” retail alcohol license may be issued and
shall authorize the holder to purchase alcoholic liquor in
original unopened containers from the division only, wine
from a class “A” wine permittee only, and beer from a class
“A” beer permittee only; to sell alcoholic liquor, wine, and
beer in original unopened containers at retail to patrons for
consumption off the licensed premises; and to sell alcoholic
liquor and high alcoholic content beer at wholesale to other
retail alcohol licensees, provided the holder has filed with
the division a basic permit issued by the alcohol and tobacco
tax and trade bureau of the United States department of the
treasury.
(2) A holder of a class “E” retail alcohol license may hold
other retail alcohol licenses, but the premises licensed under
a class “E” retail alcohol license shall be separate from other
licensed premises, though the separate premises may have a
common entrance.
(3) The holder of a class “E” retail alcohol license may
sell wine to class “C”, special class “C”, class “D”, and class
“F” retail alcohol licensees for resale for consumption on
the premises. Such wine sales shall be in quantities of less
than one case of any wine brand but not more than one such
sale shall be made to the same retail alcohol licensee in a
twenty-four-hour period.
(4) The holder of a class “E” retail alcohol license may
sell beer to class “C”, special class “C”, class “D”, and class
“F” retail alcohol licensees for resale for consumption on
the premises. Such beer sales shall be in quantities of not
more than five cases of beer, high alcoholic content beer, and
canned cocktails, but not more than one such sale shall be

Senate File 2374, p. 7
made to the same retail alcohol licensee in a twenty-four-hour
period. A class “A” beer permittee shall be held harmless
concerning any beer resold as authorized by this subparagraph.
(5) The division may issue a class “E” retail alcohol
license for premises covered by a retail alcohol license
for on-premises consumption under any of the following
circumstances:
(a) If the premises are in a county having a population
under nine thousand five hundred in which no other class “E”
retail alcohol license has been issued by the division, and no
other application for a class “E” retail alcohol license has
been made within the previous twelve consecutive months.
(b) If, notwithstanding any provision of this chapter to the
contrary, the premises covered by a retail alcohol license is a
grocery store that is at least five thousand square feet.
e. Class “F”.
(1) A class “F” retail alcohol license may be issued to a
club and shall authorize the holder to sell alcoholic beverages
to bona fide members and their guests by the individual drink
for consumption on the premises only.
(2) The holder of a class “F” retail alcohol license shall
be authorized to purchase alcoholic beverages as follows:
(a) Alcoholic liquors in original unopened containers from
class “E” retail alcohol licensees only.
(b) Wine from class “A” wine permittees.
(c) Wine from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of less than one
case of any wine brand in a twenty-four—hour period, but not
more than one such purchase shall be made by the licensee in a
twenty-four-hour period.
(d) Beer from class “A” beer permittees.
(e) Beer from class “B” retail alcohol licensees or class
“E” retail alcohol licensees in quantities of not more than
five cases of beer, high alcoholic content beer, and canned
cocktails, but not more than one such purchase shall be made by
the licensee in a twenty-four-hour period. A class “A” beer
permittee shall be held harmless concerning any beer resold as
authorized by this subparagraph division.
4. Notwithstanding any provision of this chapter to the

Senate File 2374, p. 8
contrary, a person holding a retail alcohol license to sell
alcoholic beverages for consumption on the licensed premises
may permit a customer to remove one unsealed bottle of wine
for consumption off the premises if the customer has purchased
and consumed a portion of the bottle of wine on the licensed
premises. The licensee or the licensee’s agent shall securely
reseal such bottle in a bag designed so that it is visibly
apparent that the resealed bottle of wine has not been tampered
with and provide a dated receipt for the resealed bottle of
wine to the customer. A wine bottle resealed pursuant to the
requirements of this subsection is subject to the requirements
of sections 321.284 and 321.284A. A person holding a retail
alcohol license to sell alcoholic beverages for consumption on
the licensed premises may permit a customer to carry an open
container of wine from the person’s licensed premises into
another immediately adjacent licensed premises that is covered
by a license or permit that authorizes the consumption of wine,
a temporarily closed public right-of-way, or a private place.
Sec. 2. Section 123.31, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.31 Retail alcohol licenses —— application.
1. A person applying for a retail alcohol license shall
submit a completed 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, limited liability company, or any other similar
legal entity, 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,

Senate File 2374, p. 9
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. The retail alcohol license shall only be issued to an
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 40.
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
license conforms to all applicable laws, health regulations,
and fire regulations, and constitutes a safe and proper place
or building and that the applicant shall not have or maintain
any interior access to residential or sleeping quarters unless
permission is granted by the administrator in the form of a
living quarters permit.
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.
Sec. 3. NEW SECTION . 123.31A Authority under class “B”,
class “C”, special class “C”, and class “E” retail alcohol
license.
1. The holder of a class “B”, class “C”, special class “C”,
or class “E” retail alcohol license shall be allowed to sell
beer and wine to consumers at retail for consumption off the
premises. The sales made pursuant to this section shall be
made in original containers except as provided in subsection 3.
2. Every person holding a class “B”, class “C”, special

Senate File 2374, p. 10
class “C”, or class “E” retail alcohol license having more
than one place of business where beer and wine is sold which
places do not constitute a single premises within the meaning
of section 123.3, subsection 29, shall be required to have a
separate license for each separate place of business, except as
otherwise provided by this chapter.
3. Subject to the rules of the division, sales 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 or wine 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 or wine from the
original container to the container to be sold shall be
eighteen years of age or older.
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
or wine has been tampered with or the sealed container has
otherwise been reopened.
4. A container of beer or wine other than the original
container that is sold and sealed in compliance with the
requirements of subsection 3 and the division’s rules 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.
5. a. The holder of a class “C” or special class “C” retail
alcohol license, or the licensee’s agents or employees, shall
not sell beer or wine to other retail alcohol license holders
knowing or having reasonable cause to believe that the beer
will be resold in another licensed establishment.
b. A holder of any retail alcohol permit shall not sell wine
except wine which is purchased from a person holding a class
“A” wine permit and on which the tax imposed by section 123.183

Senate File 2374, p. 11
has been paid.
Sec. 4. NEW SECTION . 123.31B Authority under special class
“B” retail native wine license.
1. A person holding a special class “B” retail native wine
license may sell native wine only at retail for consumption off
the premises. Native wine shall be sold for consumption off
the premises in original containers.
2. A special class “B” retail native wine licensee having
more than one place of business where wine is sold shall obtain
a separate license for each place of business.
Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131,
123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022,
are repealed.
Sec. 6. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION II
ALCOHOLIC BEVERAGE CONTROL FEES
Sec. 7. Section 123.23, subsection 1, Code 2022, is amended
to read as follows:
1. Any manufacturer, distiller, or importer of alcoholic
liquors shipping, selling, or having alcoholic liquors brought
into this state for resale by the state shall, as a condition
precedent to the privilege of so trafficking in alcoholic
liquors in this state, annually make application for and hold
a distiller’s certificate of compliance which shall be issued
by the administrator for that purpose. No brand of alcoholic
liquor shall be sold by the division in this state unless
the manufacturer, distiller, importer, and all other persons
participating in the distribution of that brand in this state
have obtained a certificate. The certificate of compliance
shall expire 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 suspended or revoked for cause.
Each completed application for a certificate of compliance
or renewal shall be submitted electronically, or in a manner
prescribed by the administrator, and shall be accompanied by
a fee of fifty two hundred dollars payable to the division.
However, this subsection need not apply to a manufacturer,
distiller, or importer who ships or sells in this state no more

Senate File 2374, p. 12
than eleven gallons or its case equivalent during any fiscal
year as a result of “special orders” which might be placed,
as defined and allowed by divisional rules adopted under this
chapter .
Sec. 8. Section 123.36, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.36 Retail alcohol license fees.
1. The following fees shall be paid to the division annually
for retail alcohol licenses issued under section 123.30:
a. Class “B” retail alcohol license fees shall be determined
as follows:
(1) For premises located within the corporate limits of a
city with a population of two thousand five hundred or less, a
fee determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, seventy-five dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, one
hundred fifty dollars.
(c) For a premises with a square footage of more than two
thousand but not more than five thousand, two hundred fifty
dollars.
(d) For a premises with a square footage over five thousand,
three hundred fifty dollars.
(2) For premises located within the corporate limits of a
city with a population of more than two thousand five hundred
but less than fifteen thousand, a fee determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, one hundred fifty dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, two
hundred fifty dollars.
(c) For a premises with a square footage of more than two
thousand but not more than five thousand, three hundred fifty
dollars.
(d) For a premises with a square footage over five thousand,
five hundred dollars.
(3) For premises located within the corporate limits of
a city with a population of fifteen thousand or more, a fee

Senate File 2374, p. 13
determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, two hundred fifty dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, three
hundred fifty dollars.
(c) For a premises with a square footage of more than two
thousand but not more than five thousand, five hundred dollars.
(d) For a premises with a square footage over five thousand,
seven hundred fifty dollars.
(4) For premises located outside the corporate limits of
any city, a fee equal to that charged to a premises with the
same square footage in the incorporated city located nearest
the premises to be licensed. If there is doubt as to which
of two or more differing corporate limits is the nearest, the
license fee which is the largest shall prevail. However, if
the premises is located in an unincorporated town, for purposes
of this paragraph, the unincorporated town shall be treated as
if it is a city.
b. Special class “B” retail native wine license fees shall
be one hundred twenty-five dollars.
c. Class “C” retail alcohol license fees shall be determined
as follows:
(1) Commercial establishments located within the corporate
limits of cities of two thousand five hundred population or
less, five hundred fifty dollars.
(2) Commercial establishments located within the corporate
limits of cities of over two thousand five hundred and less
than fifteen thousand population, nine hundred dollars.
(3) Commercial establishments located within the corporate
limits of cities of fifteen thousand population and over, one
thousand two hundred fifty dollars.
(4) Commercial establishments located outside the corporate
limits of any city, a fee equal to that charged in the
incorporated city located nearest the premises to be licensed,
and in case there is doubt as to which of two or more differing
corporate limits is the nearest, the license fee which is the
largest shall prevail. However, if a commercial establishment
is located in an unincorporated town, for purposes of this

Senate File 2374, p. 14
paragraph, the unincorporated town shall be treated as if it
is a city.
d. Special class “C” retail alcohol license fees shall be
determined as follows:
(1) Commercial establishments located within the corporate
limits of cities of two thousand five hundred population or
less, one hundred fifty dollars.
(2) Commercial establishments located within the corporate
limits of cities of over two thousand five hundred and less
than fifteen thousand population, three hundred dollars.
(3) Commercial establishments located within the corporate
limits of cities of fifteen thousand population and over, four
hundred fifty dollars.
(4) Commercial establishments located outside the corporate
limits of any city, a fee equal to that charged in the
incorporated city located nearest the premises to be licensed,
and in case there is doubt as to which of two or more differing
corporate limits is the nearest, the license fee which is the
largest shall prevail. However, if a commercial establishment
is located in an unincorporated town, for purposes of this
paragraph, the unincorporated town shall be treated as if it
is a city.
e. Class “D” retail alcohol license fees shall be determined
as follows:
(1) For watercraft, one hundred fifty dollars.
(2) For trains, five hundred dollars.
(3) For air common carriers, each company shall pay five
hundred dollars.
f. Class “E” retail alcohol license fees shall be determined
as follows:
(1) For premises located within the corporate limits of a
city with a population of two thousand five hundred or less, a
fee determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, seven hundred fifty dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, one
thousand five hundred dollars.
(c) For a premises with a square footage of more than two

Senate File 2374, p. 15
thousand but not more than five thousand, two thousand five
hundred dollars.
(d) For a premises with a square footage over five thousand,
three thousand five hundred dollars.
(2) For premises located within the corporate limits of a
city with a population of more than two thousand five hundred
but less than fifteen thousand, a fee determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, one thousand five hundred dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, two
thousand five hundred dollars.
(c) For a premises with a square footage of more than two
thousand but not more than five thousand, three thousand five
hundred dollars.
(d) For a premises with a square footage over five thousand,
five thousand dollars.
(3) For premises located within the corporate limits of
a city with a population of fifteen thousand or more, a fee
determined as follows:
(a) For a premises with a square footage of one thousand
five hundred or less, two thousand five hundred dollars.
(b) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, three
thousand five hundred dollars.
(c) For a premises with a square footage of more than
two thousand but not more than five thousand, five thousand
dollars.
(d) For a premises with a square footage over five thousand,
seven thousand five hundred dollars.
(4) For premises located outside the corporate limits of
any city, a fee equal to that charged to a premises with the
same square footage in the incorporated city located nearest
the premises to be licensed. If there is doubt as to which
of two or more differing corporate limits is the nearest, the
license fee which is the largest shall prevail. However, if
the premises is located in an unincorporated town, for purposes
of this paragraph, the unincorporated town shall be treated as
if it is a city.

Senate File 2374, p. 16
g. Class “F” retail alcohol license fees shall be six
hundred dollars, except that for class “F” licenses in cities
of less than two thousand population, and for clubs of less
than two hundred fifty members, the license fee shall be four
hundred dollars; however, the fee shall be two hundred dollars
for any club which is a post, branch, or chapter of a veterans
organization chartered by the Congress of the United States, if
the club does not sell or permit the consumption of alcoholic
beverages on the premises more than one day in any week or
more than a total of fifty-two days in a year, and if the
application for a license states that the club does not and
will not sell or permit the consumption of alcoholic beverages
on the premises more than one day in any week or more than a
total of fifty-two days in a year.
2. The division shall credit all fees to the beer and liquor
control fund. The division shall remit to the appropriate
local authority a sum equal to sixty-five percent of the fees
collected for each class “B”, class “C”, or class “F” license
except special class “C” licenses or class “E” licenses,
covering premises located within the local authority’s
jurisdiction. The division shall remit to the appropriate
local authority a sum equal to seventy-five percent of the fees
collected for each special class “C” license covering premises
located within the local authority’s jurisdiction. Those fees
collected for each class “E” retail alcohol license shall be
credited to the beer and liquor control fund.
3. There is imposed a surcharge on the fee for each class
“C”, special class “C”, or class “F” retail alcohol license
equal to thirty percent of the scheduled license fee. The
surcharges collected under this subsection shall be deposited
in the beer and liquor control fund, and notwithstanding
subsection 2, no portion of the surcharges collected under this
subsection shall be remitted to the local authority.
Sec. 9. Section 123.41, subsection 1, Code 2022, is amended
to read as follows:
1. Each completed application to obtain or renew a
manufacturer’s license shall be submitted to the division
electronically, or in a manner prescribed by the administrator,
and shall be accompanied by a fee of three hundred fifty

Senate File 2374, p. 17
dollars payable to the division. The administrator may in
accordance with this chapter grant and issue to a manufacturer
a manufacturer’s license, valid for a one-year period after
date of issuance, which shall allow the manufacture, storage,
and wholesale disposition and sale of alcoholic liquors to the
division and to customers outside of the state.
Sec. 10. Section 123.43, subsection 3, Code 2022, is amended
to read as follows:
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 three hundred dollars.
Sec. 11. Section 123.134, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.134 Beer permit fees.
1. The annual permit fee for a class “A” beer permit is
seven hundred fifty dollars.
2. The annual permit fee for a class “A” beer permit for a
native brewery is three hundred dollars.
3. The annual permit fee for a special class “A” beer permit
is three hundred dollars.
Sec. 12. Section 123.135, subsection 1, Code 2022, is
amended to read as follows:
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”
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 completed 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 two
hundred dollars payable to the division. Each holder of a
certificate of compliance shall furnish the information in a
manner the administrator requires.
Sec. 13. Section 123.179, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:

Senate File 2374, p. 18
123.179 Wine permit and license fees.
1. The annual permit fee for a class “A” wine permit that
is not issued to a native wine manufacturer is seven hundred
fifty dollars.
2. The annual permit fee for a class “A” wine permit issued
to a native wine manufacturer is one hundred dollars.
3. The fee for a charity beer, spirits, and wine special
event license is one hundred dollars.
Sec. 14. Section 123.180, subsection 1, Code 2022, is
amended to read as follows:
1. A manufacturer, vintner, bottler, importer, or vendor of
wine, or an agent thereof, desiring to ship, sell, or have wine
brought into this state for sale at wholesale by a class “A”
permittee shall first make application for and shall be issued
a vintner’s certificate of compliance by the administrator
for that purpose. The vintner’s certificate of compliance
shall expire 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
completed application for a vintner’s 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 one two hundred dollars payable to the
division. Each holder of a vintner’s certificate of compliance
shall furnish the information required by the administrator in
the form the administrator requires. A vintner or wine bottler
whose plant is located in Iowa and who otherwise holds a class
“A” wine permit to sell wine at wholesale is exempt from the
fee, but not the other terms and conditions. The holder of a
vintner’s certificate of compliance may also hold a class “A”
wine permit.
Sec. 15. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION III
ALCOHOLIC BEVERAGE CONTROL
Sec. 16. Section 123.3, subsections 9, 11, 22, 29, and 30,
Code 2022, are amended to read as follows:
9. “Brewpub” means a commercial establishment authorized to
sell beer at retail for consumption on or off the premises that

Senate File 2374, p. 19
is operated by a person who holds a class “C” liquor control or
special class “C” retail alcohol license or a class “B” beer
permit and who also holds a special class “A” beer permit that
authorizes the holder to manufacture and sell beer pursuant to
this chapter .
11. “Canned cocktail” means a mixed drink or cocktail that
is premixed and packaged in a metal can and contains more than
six and twenty-five hundredths one-half of one percent of
alcohol by volume but not more than fifteen percent of alcohol
by volume. A mixed drink or cocktail mixed and packaged in a
metal can pursuant to section 123.49, subsection 2 , paragraph
“d” , subparagraph (3), shall not be considered a canned
cocktail.
22. “High alcoholic content beer” means beer which contains
more than six and twenty-five hundredths percent of alcohol by
volume, but not more than fifteen nineteen percent of alcohol
by volume, that is made by the fermentation of an infusion
in potable water of barley, malt, and hops, with or without
unmalted grains or decorticated and degerminated grains. Not
more than one and five-tenths percent of the volume of a “high
alcoholic content beer” may consist of alcohol derived from
added flavors and other nonbeverage ingredients containing
alcohol. The added flavors and other nonbeverage ingredients
may not include added caffeine or other added stimulants
including but not limited to guarana, ginseng, and taurine.
29. “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 retail alcohol 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.
30. “Local authority” means the city council of any
incorporated city in this state, or the county board of
supervisors of any county in this state, which is empowered by
this chapter to approve or deny applications for retail beer or
wine permits and liquor control alcohol licenses; empowered to
recommend that such permits or licenses be granted and issued

Senate File 2374, p. 20
by the division; and empowered to take other actions reserved
to them by this chapter .
Sec. 17. Section 123.3, subsection 40, paragraph b, Code
2022, is amended to read as follows:
b. The person is not prohibited by section 123.40 from
obtaining a liquor control retail alcohol license or a wine or
beer permit.
Sec. 18. Section 123.3, subsection 45, Code 2022, is amended
by striking the subsection and inserting in lieu thereof the
following:
45. “Retail alcohol license” means a class “B”, class “C”,
special class “C”, class “D”, class “E”, or class “F” retail
alcohol license, or a special class “B” retail native wine
license issued under this chapter.
Sec. 19. Section 123.3, subsection 46, Code 2022, is amended
by striking the subsection.
Sec. 20. Section 123.9, subsections 5 and 7, Code 2022, are
amended to read as follows:
5. To grant and issue beer permits, wine permits, liquor
control retail alcohol licenses, and other licenses; and to
suspend or revoke all such permits and licenses for cause under
this chapter .
7. To accept alcoholic liquors ordered delivered to the
alcoholic beverages division pursuant to chapter 809A , and
offer for sale and deliver the alcoholic liquors to class
“E” liquor control retail alcohol licensees, unless the
administrator determines that the alcoholic liquors may be
adulterated or contaminated. If the administrator determines
that the alcoholic liquors may be adulterated or contaminated,
the administrator shall order their destruction.
Sec. 21. Section 123.10, subsections 3, 6, and 14, Code
2022, are amended to read as follows:
3. Regulating the purchase of alcoholic liquor generally
and the furnishing of the liquor to class “E” liquor control
retail alcohol licensees under this chapter , and determining
the classes, varieties, and brands of alcoholic liquors to be
kept in state warehouses.
6. Providing for the issuance and electronic distribution
of price lists which show the price to be paid by class “E”

Senate File 2374, p. 21
liquor control retail alcohol licensees for each brand,
class, or variety of liquor kept for sale by the division,
providing for the filing or posting of prices charged in sales
between class “A” beer and class “A” wine permit holders and
retailers, as provided in this chapter , and establishing or
controlling the prices based on minimum standards of fill,
quantity, or alcoholic content for each individual sale of
alcoholic beverages as deemed necessary for retail or consumer
protection. However, the division shall not regulate markups,
prices, discounts, allowances, or other terms of sale at which
alcoholic liquor may be purchased by the retail public or
liquor control retail alcohol licensees from class “E” liquor
control retail alcohol licensees or at which wine may be
purchased and sold by class “A” and retail wine permittees, or
change, nullify, or vary the terms of an agreement between a
holder of a vintner certificate of compliance and a class “A”
wine permittee.
14. Prescribing the uniform fee to be assessed against
a class “B” beer permittee, class “C” native wine permittee,
or liquor control retail alcohol licensee, except a class
“B”, special class “B”, or class “E” liquor control retail
alcohol licensee, to cover the administrative costs incurred
by the division resulting from the failure of the licensee or
permittee to maintain dramshop liability insurance coverage
pursuant to section 123.92, subsection 2 , paragraph “a” .
Sec. 22. Section 123.15, Code 2022, is amended to read as
follows:
123.15 Favors from licensee or permittee.
A person responsible for the administration or enforcement
of this chapter shall not accept or solicit donations,
gratuities, political advertising, gifts, or other favors,
directly or indirectly, from any liquor control retail alcohol
licensee, wine permittee, or beer permittee.
Sec. 23. Section 123.16, subsections 6 and 7, Code 2022, are
amended to read as follows:
6. The number of liquor control retail alcohol licenses,
wine permits, and beer permits issued, by class, the number in
effect on the last day included in the report, and the number
which have been suspended or revoked during the period covered

Senate File 2374, p. 22
by the report.
7. Amount of fees paid to the division from liquor control
retail alcohol licenses, wine permits, and beer permits, in
gross, and the amount of liquor control retail alcohol license
fees returned to local subdivisions of government as provided
under this chapter .
Sec. 24. Section 123.22, subsection 1, Code 2022, is amended
to read as follows:
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 nine liters per calendar month
that the individual personally obtained outside the state.
Alcoholic liquor imported by an individual pursuant to this
subsection shall be 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 retail alcohol licensees.
Sec. 25. Section 123.24, Code 2022, is amended to read as
follows:
123.24 Alcoholic liquor sales by the division —— dishonored
payments —— liquor prices.
1. The division shall sell alcoholic liquor at wholesale
only. The division shall sell alcoholic liquor to class “E”
liquor control retail alcohol licensees only. The division
shall offer the same price on alcoholic liquor to all class “E”
liquor control retail alcohol licensees without regard for the
quantity of purchase or the distance for delivery.
2. The price of alcoholic liquor sold by the division shall

Senate File 2374, p. 23
consist of the following:
a. The manufacturer’s price.
b. A markup of up to fifty percent of the wholesale price
paid by the division for the alcoholic liquor. The division
may increase the markup on selected kinds of alcoholic liquor
sold by the division if the average return to the division on
all sales of alcoholic liquor does not exceed the wholesale
price paid by the division and the fifty percent markup.
c. A split case charge in an amount determined by the
division when alcoholic liquor is sold in quantities which
require a case to be split.
d. A bottle surcharge in an amount sufficient, when added
to the amount not refunded to class “E” liquor control retail
alcohol licensees pursuant to section 455C.2 , to pay the costs
incurred by the division for collecting and properly disposing
of the liquor containers. The amount collected pursuant to
this paragraph, in addition to any amounts not refunded to
class “E” liquor control retail alcohol licensees pursuant
to section 455C.2 , shall be deposited in the beer and liquor
control fund established under section 123.17 .
3. a. The division may accept from a class “E” liquor
control retail alcohol licensee electronic funds transferred
by automated clearing house, wire transfer, or another method
deemed acceptable by the administrator, in payment of alcoholic
liquor. If a payment is subsequently dishonored, the division
shall cause a notice of nonpayment and penalty to be served
upon the class “E” liquor control retail alcohol licensee or
upon any person in charge of the licensed premises. The notice
shall state that if payment or satisfaction for the dishonored
payment is not made within ten days of the service of notice,
the licensee’s liquor control retail alcohol license may be
suspended under section 123.39 . The notice of nonpayment and
penalty shall be in a form prescribed by the administrator, and
shall be sent by certified mail.
b. If upon notice and hearing under section 123.39 and
pursuant to the provisions of chapter 17A concerning a
contested case hearing, the administrator determines that the
class “E” liquor control retail alcohol licensee failed to
satisfy the obligation for which the payment was issued within

Senate File 2374, p. 24
ten days after the notice of nonpayment and penalty was served
on the licensee as provided in paragraph “a” of this subsection ,
the administrator may suspend the licensee’s class “E” liquor
control retail alcohol license for a period not to exceed ten
days.
4. The administrator may refuse to sell alcoholic liquor
to a class “E” liquor control retail alcohol licensee who
tenders a payment which is subsequently dishonored until the
outstanding obligation is satisfied.
Sec. 26. Section 123.26, Code 2022, is amended to read as
follows:
123.26 Restrictions on sales —— seals —— labeling.
Alcoholic liquor shall not be sold by a class “E” liquor
control retail alcohol licensee except in a sealed container
with identifying markers as prescribed by the administrator
and affixed in the manner prescribed by the administrator, and
no such container shall be opened upon the premises of a state
warehouse. The division shall cooperate with the department
of natural resources so that only one identifying marker or
mark is needed to satisfy the requirements of this section and
section 455C.5, subsection 1 . Possession of alcoholic liquors
which do not carry the prescribed identifying markers is a
violation of this chapter except as provided in section 123.22 .
Sec. 27. Section 123.28, subsections 2 and 5, Code 2022, are
amended to read as follows:
2. The division shall deliver alcoholic liquor purchased by
class “E” liquor control retail alcohol licensees. Class “E”
liquor control retail alcohol licensees may deliver alcoholic
liquor purchased by class “A”, class “B”, class “C”, class “C”
native distilled spirits, or class “D” liquor control , or class
“F” retail alcohol licensees, and class “A”, class “B”, class
“C”, class “C” native distilled spirits, or class “D” liquor
control , or class “F” retail alcohol licensees may transport
alcoholic liquor purchased from class “E” liquor control retail
alcohol licensees.
5. This section does not affect the right of a liquor
control retail alcohol license holder to purchase, possess, or
transport alcoholic liquors subject to this chapter .
Sec. 28. Section 123.32, Code 2022, is amended to read as

Senate File 2374, p. 25
follows:
123.32 Action by local authorities and division on
applications for liquor control retail alcohol licenses, native
distilled spirits licenses, and wine and beer permits.
1. Filing of application.
a. A completed application for a class “A”, class “B”, class
“C”, special class “C”, class “C” native distilled spirits, or
class “E” liquor control retail alcohol license as provided
in section 123.31 , 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 123.175 except a class “D” retail alcohol license ,
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.
b. A completed application for a class “D” liquor
control retail alcohol license and for any of the following
certificates, licenses, or permits 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:
(1) A certificate of compliance as provided in sections
123.23 , 123.135 , and 123.180 .
(2) A class “D” liquor control retail alcohol license as
provided in section 123.31 .
(3) A manufacturer’s license as provided in section 123.41 .
(4) A broker’s permit as provided in section 123.42 .
(5) A class “A” native distilled spirits license as provided
in section 123.43 .
(6) A class “A” or special class “A” beer permit as provided
in section 123.127 .
(7) A charity beer, spirits, and wine auction permit special
event license as provided in section 123.173A .
(8) A charity beer, spirits, and wine event permit as
provided in section 123.173B .
(9) (8) A class “A” wine permit as provided in section
123.175 .

Senate File 2374, p. 26
(10) (9) A wine direct shipper’s permit as provided in
section 123.187 .
(11) (10) A wine carrier permit as provided in section
123.188 .
2. Action by local authorities. The local authority shall
either approve or disapprove the issuance of a liquor control
retail alcohol license, a retail wine permit, or a retail
beer permit, shall endorse its approval or disapproval on
the application, and shall forward the application with the
necessary fee and bond, if required, to the division. There
is no limit upon the number of liquor control retail alcohol
licenses , retail wine permits, or retail beer permits which may
be approved for issuance by local authorities.
3. Licensed premises for local events. A local authority
may define, by motion of the local authority, licensed premises
which shall be used by holders of liquor control retail alcohol
licenses , beer permits, and wine permits at festivals, fairs,
or celebrations which are sponsored or authorized by the local
authority. The licensed premises defined by motion of the
local authority shall be used by the holders of five-day or
fourteen-day class “A”, class “B”, class “C”, special class
“C”, or class “D” liquor control , or class “F” retail alcohol
licenses , or five-day or fourteen-day class “B” or class “C”
native wine permits, or class “B” beer permits only .
4. Security employee training. A local authority, as a
condition of obtaining and holding a license or permit for
on-premises consumption, may require a designated security
employee as defined in section 123.3 to be trained and
certified in security methods. The training shall include but
is not limited to de-escalation techniques, anger management
techniques, civil rights or unfair practices awareness as
provided in section 216.7 , recognition of fake or altered
identification, information on laws applicable to the serving
of alcohol at a licensed premises, use of force and techniques
for safely removing patrons, and instruction on the proper
physical restraint methods used against a person who has become
combative.
5. Occupancy rates. A local authority located in a county
with a population that exceeds three hundred thousand persons,

Senate File 2374, p. 27
as a condition of obtaining and holding a license or permit
for on-premises consumption, shall require the applicant , or
licensee , or permittee to provide, and update if necessary, the
occupancy rate of the licensed premises.
6. Action by administrator.
a. Upon receipt of an application having been disapproved
by the local authority, the administrator shall notify the
applicant that the applicant may appeal the disapproval of
the application to the administrator. The applicant shall
be notified by certified mail or personal service, and the
application, the fee, and any bond shall be returned to the
applicant.
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 shall be so notified by certified mail or personal
service and the appropriate local authority shall be notified
electronically, or in a manner prescribed by the administrator.
7. Appeal to administrator. An applicant for a liquor
control retail alcohol license , wine permit, or beer permit may
appeal from the local authority’s disapproval of an application
for a license or permit to the administrator. In the appeal

Senate File 2374, p. 28
the applicant shall be allowed the opportunity to demonstrate
in an evidentiary hearing conducted pursuant to chapter 17A
that the applicant complies with all of the requirements for
holding the license or permit. The administrator may appoint
a member of the division or may request an administrative law
judge from the department of inspections and appeals to conduct
the evidentiary hearing and to render a proposed decision to
approve or disapprove the issuance of the license or permit.
The administrator may affirm, reverse, or modify the proposed
decision. If the administrator determines that the applicant
complies with all of the requirements for holding a license
or permit, the administrator shall order the issuance of the
license or permit. If the administrator determines that the
applicant does not comply with the requirements for holding
a license or permit, the administrator shall disapprove the
issuance of the license or permit.
8. Judicial review. The applicant or the local authority
may seek judicial review of the action of the administrator
in accordance with the terms of the Iowa administrative
procedure Act, chapter 17A . Notwithstanding the terms of the
Iowa administrative procedure Act, chapter 17A , petitions
for judicial review may be filed in the district court of
the county where the premises covered by the application are
situated.
9. Suspension by local authority. A liquor control retail
alcohol licensee or a wine or beer permittee whose license
or permit has been suspended or revoked or a civil penalty
imposed by a local authority for a violation of this chapter
or suspended by a local authority for violation of a local
ordinance may appeal the suspension, revocation, or civil
penalty to the administrator. The administrator may appoint
a member of the division or may request an administrative law
judge from the department of inspections and appeals to hear
the appeal which shall be conducted in accordance with chapter
17A and to issue a proposed decision. The administrator may
review the proposed decision upon the motion of a party to the
appeal or upon the administrator’s own motion in accordance
with chapter 17A . Upon review of the proposed decision, the
administrator may affirm, reverse, or modify the proposed

Senate File 2374, p. 29
decision. A liquor control retail alcohol licensee , wine or
beer permittee, or a local authority aggrieved by a decision
of the administrator may seek judicial review of the decision
pursuant to chapter 17A .
Sec. 29. Section 123.34, Code 2022, is amended to read as
follows:
123.34 Expiration of licenses, permits, and certificates
of compliance —— seasonal Seasonal , fourteen-day, and five-day
licenses and permits —— fees.
1. All licenses, permits, and certificates of compliance,
unless sooner suspended or revoked, expire one year from date
of issuance. The administrator shall notify a license, permit,
or certificate holder electronically, or in a manner prescribed
by the administrator, sixty days prior to the expiration of
each license, permit, or certificate.
2. 1. a. The administrator may issue six-month or
eight-month seasonal class “A”, class “B”, class “C”, special
class “C”, and class “D” liquor control and class “F” retail
alcohol licenses , class “B” wine permits, class “B” or class
“C” native wine permits, or class “B” beer permits .
b. The fee for a six-month or an eight-month seasonal
license or permit issued pursuant to this subsection shall be
for a proportionate part fifty percent of the license or permit
fee for that class of license or permit . However, the fee for
a seasonal class “B” native wine permit shall be the permit fee
provided in section 123.179, subsection 4 , and the fee for a
seasonal class “C” native wine permit shall be the permit fee
provided in section 123.179, subsection 5 .
3. 2. a. The administrator may issue fourteen-day class
“A”, class “B”, class “C”, special class “C”, and class “D”
liquor control and class “F” retail alcohol licenses , and
fourteen-day class “B” beer permits, class “B” native wine
permits, and class “C” native wine permits .
b. A fourteen-day retail alcohol license or permit , if
granted, is valid for fourteen consecutive days , but the holder
shall not sell on the two Sundays in the fourteen-day period
unless the holder qualifies for and obtains the privilege to
sell on Sundays contained in section 123.36, subsection 6 , and
section 123.134, subsection 4 .

Senate File 2374, p. 30
c. (1) The fee for a fourteen-day liquor control retail
alcohol license or beer permit is one quarter of the annual fee
for that class of liquor control retail alcohol license or beer
permit . The fee for the privilege to sell on the two Sundays in
the fourteen-day period is twenty percent of the price of the
fourteen-day liquor control license or beer permit.
(2) The fee for a fourteen-day class “B” native wine permit
shall be the permit fee provided in section 123.179, subsection
4 , and the fee for a fourteen-day class “C” native wine permit
is the permit fee provided in section 123.179, subsection 5 .
4. 3. a. The administrator may issue five-day class “A”,
class “B”, class “C”, special class “C”, and class “D” liquor
control , and class “F” retail alcohol licenses , and five-day
class “B” beer permits, class “B” native wine permits, and
class “C” native wine permits .
b. A five-day retail alcohol license or permit is valid for
five consecutive days , but the holder shall not sell alcoholic
beverages on Sunday in the five-day period unless the holder
qualifies for and obtains the privilege to sell on Sunday
pursuant to section 123.36, subsection 6, and section 123.134,
subsection 4 .
c. (1) The fee for the five-day liquor control retail
alcohol license or beer permit is one-eighth of the annual fee
for that class of license or permit. The fee for the privilege
to sell on a Sunday in the five-day period is ten percent of the
price of the five-day liquor control license or beer permit.
(2) The fee for a five-day class “B” native wine permit
shall be the permit fee provided in section 123.179, subsection
4 , and the fee for a five-day class “C” native wine permit is
the permit fee provided in section 123.179, subsection 5 .
5. 4. A refund of fees paid shall not be made for seasonal
licenses or permits , or for fourteen-day or five-day liquor
control retail alcohol licenses , native wine permits, or beer
permits . In addition, a seasonal, fourteen-day, or five-day
license or permit shall not be renewed.
Sec. 30. NEW SECTION . 123.35 Expiration of licenses,
permits, and certificates of compliance —— automatic renewals.
1. Except as otherwise provided by this chapter, all
licenses, permits, and certificates of compliance, unless

Senate File 2374, p. 31
sooner suspended or revoked, expire one year from date of
issuance.
2. Notwithstanding section 123.31 and any other provision
of this chapter to the contrary, a class “E” retail alcohol
license shall automatically renew without the endorsement
of a local authority or approval by the administrator upon
collection of the annual fee by the division, provided all of
the following conditions are met since the preceding license
was issued:
a. The licensee has given written consent to the division
to have the license automatically renewed as provided in this
section.
b. The license has not been suspended or revoked.
c. A civil penalty has not been imposed against the
licensee.
d. An administrative proceeding is not pending against the
licensee to suspend or revoke the license or to impose a civil
penalty under this chapter.
e. The licensee has not submitted payment for alcoholic
liquor to the division that was subsequently dishonored.
f. The licensee and all persons associated with the licensee
as described in section 123.3, subsection 40, paragraph “e” ,
have not been convicted of a violation of this chapter.
g. The licensed premises constitutes a safe and proper place
or building and conforms with all applicable federal, state,
and local laws, orders, ordinances, rules, resolutions, and
health and fire regulations.
h. A local authority has not notified the division, in
a manner established by the division and made available to
local authorities, that automatic renewal should not occur and
that further review of the licensee by the division and the
applicable local authority is warranted.
3. Notwithstanding sections 123.23, 123.135, 123.180,
and any other provision of this chapter to the contrary, a
distiller’s, brewer’s, or vintner’s certificate of compliance
shall automatically renew without approval by the administrator
upon collection of the annual fee by the division, provided
all of the following conditions are met since the preceding
certificate was issued:

Senate File 2374, p. 32
a. The certificate holder has given written consent to
the division to have the certificate automatically renewed as
provided in this section.
b. The certificate has not been suspended or revoked.
c. A civil penalty has not been imposed against the
certificate holder.
d. An administrative proceeding is not pending against the
certificate holder to suspend or revoke the certificate or to
impose a civil penalty under this chapter.
e. The certificate holder and all persons associated
with the certificate holder as described in section 123.3,
subsection 40, paragraph “e” , have not been convicted of a
violation of this chapter.
4. Notwithstanding section 123.187 and any other provision
of this chapter to the contrary, a wine direct shipper’s permit
shall automatically renew without approval by the administrator
upon collection of the annual fee by the division, provided all
of the following conditions are met since the preceding permit
was issued:
a. The permittee has given written consent to the division
to have the permit automatically renewed as provided in this
section.
b. The permit has not been suspended or revoked.
c. A civil penalty has not been imposed against the
permittee.
d. An administrative proceeding is not pending against the
permittee to suspend or revoke the permit or to impose a civil
penalty under this chapter.
e. The permittee has filed all required reports and remitted
all wine gallonage tax owed pursuant to section 123.183.
f. The permittee and all persons associated with the
permittee as described in section 123.3, subsection 40,
paragraph “e” , have not been convicted of a violation of this
chapter.
Sec. 31. Section 123.38, subsection 1, Code 2022, is amended
to read as follows:
1. A liquor control retail alcohol license, wine permit,
or beer permit is a personal privilege and is revocable for
cause. It is not property nor is it subject to attachment

Senate File 2374, p. 33
and execution nor alienable nor assignable, and it shall
cease upon the death of the permittee or licensee. However,
the administrator of the division may in the administrator’s
discretion allow the executor or administrator of the estate of
a permittee or licensee to operate the business of the decedent
for a reasonable time not to exceed the expiration date of the
permit or license. Every permit or license shall be issued in
the name of the applicant and no person holding a permit or
license shall allow any other person to use it.
Sec. 32. Section 123.38, subsection 2, paragraph a,
subparagraph (4), Code 2022, is amended to read as follows:
(4) No refund shall be made for any liquor control retail
alcohol license, wine permit, or beer permit surrendered more
than nine months after issuance.
Sec. 33. Section 123.39, subsection 1, paragraph a, Code
2022, is amended to read as follows:
a. (1) The administrator or the local authority may suspend
a class “A”, class “B”, special class “B” native wine, class
“C”, special class “C”, class “C” native distilled spirits, or
class “E” liquor control , or class “F” retail alcohol license ,
or retail wine or beer permit charity beer, spirits, and wine
special event license for a period not to exceed one year,
revoke the license or permit , or impose a civil penalty not to
exceed one thousand dollars per violation.
(2) The administrator may suspend a certificate of
compliance, a class “D” liquor control retail alcohol license,
a manufacturer’s license, a broker’s permit, a class “A” native
distilled spirits license, a class “A” or special class “A”
beer permit, a charity beer, spirits, and wine auction permit,
a class “A” wine permit, a wine direct shipper’s permit, or a
wine carrier permit for a period not to exceed one year, revoke
the license, permit, or certificate, or impose a civil penalty
not to exceed one thousand dollars per violation.
Sec. 34. Section 123.39, subsection 1, paragraph b,
subparagraph (3), Code 2022, is amended to read as follows:
(3) Any change in the ownership or interest in the business
operated under a liquor control retail alcohol license , or any
wine or beer permit, which change was not previously reported
in a manner prescribed by the administrator within thirty days

Senate File 2374, p. 34
of the change and subsequently approved by the local authority,
when applicable, and the division.
Sec. 35. Section 123.39, subsections 2 and 3, Code 2022, are
amended to read as follows:
2. Local authorities may suspend any liquor control retail
alcohol license or retail wine or beer permit for a violation
of any ordinance or regulation adopted by the local authority.
Local authorities may adopt ordinances or regulations for the
location of the premises of liquor control retail alcohol
licensed and retail wine or beer permitted establishments
and local authorities may adopt ordinances, not in conflict
with this chapter and that do not diminish the hours during
which alcoholic beverages may be sold or consumed at retail,
governing any other activities or matters which may affect the
retail sale and consumption of alcoholic beverages and the
health, welfare and morals of the community involved.
3. When a liquor control retail alcohol license or retail
wine or beer permit is suspended after a hearing as a result
of violations of this chapter by the licensee , permittee
or the licensee’s or permittee’s agents or employees, the
premises which were licensed by the license or permit shall
not be relicensed for a new applicant until the suspension
has terminated or time of suspension has elapsed, or ninety
days have elapsed since the commencement of the suspension,
whichever occurs first. However, this section does not
prohibit the premises from being relicensed to a new applicant
before the suspension has terminated or before the time of
suspension has elapsed or before ninety days have elapsed from
the commencement of the suspension, if the premises prior to
the time of the suspension had been purchased under contract,
and the vendor under that contract had exercised the person’s
rights under chapter 656 and sold the property to a different
person who is not related to the previous licensee or permittee
by marriage or within the third degree of consanguinity or
affinity and if the previous licensee or permittee does not
have a financial interest in the business of the new applicant.
Sec. 36. Section 123.40, Code 2022, is amended to read as
follows:
123.40 Effect of revocation.

Senate File 2374, p. 35
Any liquor control retail alcohol licensee, wine permittee,
or beer permittee whose license or permit is revoked under this
chapter shall not thereafter be permitted to hold a liquor
control retail alcohol license, wine permit, or beer permit in
the state of Iowa for a period of two years from the date of
revocation. A spouse or business associate holding ten percent
or more of the capital stock or ownership interest in the
business of a person whose license or permit has been revoked
shall not be issued a liquor control retail alcohol license,
wine permit, or beer permit, and no liquor control retail
alcohol license, wine permit, or beer permit shall be issued
which covers any business in which such person has a financial
interest for a period of two years from the date of revocation.
If a license or permit is revoked, the premises which had been
covered by the license or permit shall not be relicensed for
one year.
Sec. 37. Section 123.43A, subsection 2, Code 2022, is
amended to read as follows:
2. A native distillery shall not sell more than one and
one-half nine liters per person per day, of native distilled
spirits on the premises of the 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 native
distillery shall not directly ship native distilled spirits for
sale at retail. The native distillery shall maintain records
of individual purchases of native distilled spirits at the
native distillery for three years.
Sec. 38. Section 123.43A, subsection 6, Code 2022, is
amended to read as follows:
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

Senate File 2374, p. 36
of the native distillery for consumption on the premises by
applying for be granted a class “C” native distilled spirits
liquor control retail alcohol license as provided defined in
section 123.30 . A native distillery may be granted not more
than two class “C” native distilled spirits liquor control
retail alcohol licenses. All native distilled spirits sold
by a native distillery for on-premises consumption and mixed
drinks or cocktails sold for consumption off the premises
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 retail
alcohol license regardless of whether the manufacturer is also
a manufacturer of beer pursuant to a class “A” beer permit or
a manufacturer of native wine pursuant to a class “A” wine
permit.
Sec. 39. Section 123.45, subsection 1, paragraph d, Code
2022, is amended to read as follows:
d. Hold a retail liquor control alcohol license or retail
wine or beer permit, unless the licensee or permittee holding a
retail liquor control alcohol license or retail wine or beer
permit does not purchase or sell the alcoholic beverages of
the person engaged in the business of manufacturing, bottling,
or wholesaling alcoholic beverages. However, a person engaged
in the business of manufacturing wine that is not native wine
may purchase and sell the person’s wine under the authority
of a special class “C” liquor control retail alcohol license
and a class “B” wine permit retail alcohol license provided
the licensed premises is the principal office, as defined in
section 490.140 , of the person.
Sec. 40. Section 123.45, subsection 3, Code 2022, is amended
to read as follows:
3. A person engaged in the wholesaling of beer or wine
may sell only disposable glassware, which is constructed of
paper, paper laminated, or plastic materials and designed
primarily for personal consumption on a one-time usage
basis, to retailers for use within the premises of licensed
establishments, for an amount which is greater than or equal
to an amount which represents the greater of either the amount
paid for the disposable glassware by the supplier or the amount

Senate File 2374, p. 37
paid for the disposable glassware by the wholesaler. Also, a
person engaged in the business of manufacturing beer may sell
beer at retail for consumption on or off the premises of the
manufacturing facility and, notwithstanding any other provision
of this chapter or the fact that a person is the holder of a
class “A” beer permit, a native brewery may be granted not more
than two class “B” beer permits “C” retail alcohol licenses as
defined in section 123.124 for that purpose 123.30 regardless
of whether that person is also a manufacturer of native
distilled spirits pursuant to a class “A” native distilled
spirits license or a manufacturer of native wine pursuant to a
class “A” wine permit.
Sec. 41. Section 123.46, subsection 2, Code 2022, is amended
to read as follows:
2. A person shall not use or consume alcoholic liquor, wine,
or beer upon the public streets or highways. A person shall
not use or consume alcoholic liquor in any public place except
premises covered by a liquor control retail alcohol license.
A person shall not possess or consume alcoholic liquors,
wine, or beer on public school property or while attending a
public or private school-related function. A person shall not
be intoxicated in a public place. A person violating this
subsection is guilty of a simple misdemeanor.
Sec. 42. Section 123.46A, Code 2022, is amended to read as
follows:
123.46A Delivery of alcoholic beverages by retailers.
1. Licensees and permittees authorized to sell alcoholic
liquor, wine, or beer in original unopened containers for
consumption off the licensed premises may deliver alcoholic
liquor, wine, or beer to a home, another licensed premises if
there is identical ownership of the premises by the licensee
or permittee , or other designated location in this state.
Deliveries shall be limited to alcoholic beverages authorized
by the licensee’s or permittee’s license or permit . Orders
delivered to another licensed premises shall contain only
those alcoholic beverages authorized for sale by the liquor
control retail alcohol license or retail wine or beer permit
covering the premises to which the alcoholic beverages will
be delivered. Orders delivered to another licensed premises

Senate File 2374, p. 38
shall be fulfilled using the alcoholic beverages inventory
owned by the licensee or permittee who will receive the order
for delivery. If the recipient refuses or fails to pick up
the delivery, or is ineligible to receive the delivery, the
alcoholic beverages shall be returned to the licensee or
permittee who fulfilled the order.
2. Licensees and permittees authorized to sell wine, beer,
or mixed drinks or cocktails for consumption off the licensed
premises in a container other than the original container may
deliver the wine, beer, or mixed drinks or cocktails to a
home or other designated location in this state only if the
container other than the original container has been sold and
securely sealed in compliance with this chapter or the rules
of the division. Deliveries shall be limited to alcoholic
beverages authorized by the licensee’s or permittee’s license
or permit.
3. All deliveries of alcoholic liquor, wine, beer, or
mixed drinks or cocktails shall be subject to the following
requirements and restrictions:
a. Payment for the alcoholic liquor, wine, beer, or mixed
drinks or cocktails shall be received by the licensee or
permittee at the time of order.
b. Orders for deliveries may be taken by the licensee or
permittee between the hours of 2:00 a.m. and 6:00 a.m.
on a day other than Sunday, and orders for deliveries may
be taken between the hours of 2:00 a.m. and 6:00 a.m. on a
Sunday provided the licensee or permittee has been granted
the privilege of selling alcoholic liquor, wine, beer, or
mixed drinks or cocktails on Sunday on any day of the week ,
notwithstanding any provision of section 123.49, subsection 2 ,
paragraph “b” , to the contrary.
c. Alcoholic liquor, wine, beer, or mixed drinks or
cocktails delivered to a person shall be for personal use and
not for resale.
d. Deliveries shall only be made to persons in this state
who are twenty-one years of age or older.
e. Deliveries shall not be made to a person who is
intoxicated or is simulating intoxication.
f. Deliveries shall occur between 6:00 a.m. and 10:00 p.m.

Senate File 2374, p. 39
Monday through Sunday on the same day the order for alcoholic
liquor, wine, beer, or mixed drinks or cocktails is removed
from the licensed premises .
g. Delivery of alcoholic liquor, wine, beer, or mixed drinks
or cocktails shall be made by the licensee or permittee , the
licensee’s or permittee’s employee, or a third party, provided
the licensee or permittee has entered into a written agreement
with the third party that authorizes the third party to act
as an agent of the licensee or permittee for the purpose of
delivering alcoholic liquor, wine, beer, or mixed drinks or
cocktails. Each licensee or permittee shall submit to the
division electronically, or in a manner prescribed by the
administrator, a list of names and addresses of all third
parties it has authorized to act as its agent for the purpose
of delivering alcoholic liquor, wine, beer, or mixed drinks
or cocktails. The licensee or permittee shall provide the
division with amendments to the list as necessary to ensure the
division possesses an accurate, current list.
h. Delivery personnel shall be twenty-one years of age or
older.
i. Valid proof of the recipient’s identity and age shall
be obtained at the time of delivery, and the signature of a
person twenty-one years of age or older shall be obtained as a
condition of delivery.
j. Licensees and permittees shall maintain records
of deliveries which include the quantity delivered, the
recipient’s name and address, and the signature of the
recipient of the alcoholic liquor, wine, beer, or mixed drinks
or cocktails. The records shall be maintained on the licensed
premises for a period of three years.
4. A violation of this section or any other provision
of this chapter shall subject the licensee or permittee to
the penalty provisions of section 123.39 . If the licensee
or permittee , an employee of the licensee or permittee , or
a person delivering alcoholic liquor, wine, beer, or mixed
drinks or cocktails for a third party acting on behalf of the
licensee or permittee pursuant to a written agreement violates
this section , the licensee or permittee shall not be assessed
a penalty under section 123.39 if the licensee or permittee

Senate File 2374, p. 40
establishes all of the following:
a. The violation was committed off of the licensee’s
or permittee’s premises after the liquor, wine, beer, or
mixed drinks or cocktails was removed from the licensee’s or
permittee’s premises in fulfillment of a delivery order.
b. (1) If the person who committed the violation is an
employee of the licensee or permittee , that no other violation
of this section was committed by any employee of the licensee
or permittee within the two-year period immediately preceding
the date of violation.
(2) If the person who committed the violation is a person
delivering for a third party acting on behalf of the licensee
or permittee , that no other violation of this section was
committed by any person delivering for the same third party
while the third party was acting on behalf of the licensee or
permittee within the two-year period immediately preceding the
date of violation.
5. Nothing in this section shall impact the direct shipment
of wine as regulated by section 123.187 .
Sec. 43. Section 123.47, subsection 3, Code 2022, is amended
to read as follows:
3. A person or persons under legal age shall not purchase
or attempt to purchase, consume, or individually or jointly
have alcoholic beverages in their possession or control; except
in the case of any alcoholic beverage given or dispensed to
a person under legal age within a private home and with the
knowledge, presence, and consent of the parent or guardian, for
beverage or medicinal purposes or as administered to the person
by either a physician or dentist for medicinal purposes and
except to the extent that a person under legal age may handle
alcoholic beverages during the regular course of the person’s
employment by a liquor control retail alcohol licensee, or wine
or beer permittee under this chapter .
Sec. 44. Section 123.48, subsections 1 and 3, Code 2022, are
amended to read as follows:
1. If a liquor control retail alcohol licensee or wine or
beer permittee or an employee of the licensee or permittee
has a reasonable belief based on factual evidence that a
driver’s license as defined in section 321.1, subsection

Senate File 2374, p. 41
20A , or nonoperator’s identification card issued pursuant to
section 321.190 offered by a person who wishes to purchase
an alcoholic beverage at the licensed premises is altered
or falsified or belongs to another person, the licensee ,
permittee, or employee may retain the driver’s license or
nonoperator’s identification card. Within twenty-four hours,
the license or card shall be delivered to the appropriate
city or county law enforcement agency of the jurisdiction in
which the licensed premises is located. When the license or
card is delivered to the appropriate law enforcement agency,
the licensee shall file a written report of the circumstances
under which the license or card was retained. The local law
enforcement agency may investigate whether a violation of
section 321.216 , 321.216A , or 321.216B has occurred. If an
investigation is not initiated or a probable cause is not
established by the local law enforcement agency, the driver’s
license or nonoperator’s identification card shall be delivered
to the person to whom it was issued. The local law enforcement
agency may forward the license or card with the report to the
department of transportation for investigation, in which case,
the department may investigate whether a violation of section
321.216 , 321.216A , or 321.216B has occurred. The department of
transportation shall return the license or card to the person
to whom it was issued if an investigation is not initiated or a
probable cause is not established.
3. A liquor control retail alcohol licensee or wine or
beer permittee or an employee of the licensee or permittee
is not subject to criminal prosecution for, or to civil
liability for damages alleged to have resulted from, the
retention and delivery of a driver’s license or a nonoperator’s
identification card which is taken pursuant to subsections
1 and 2 . This section shall not be construed to relieve a
licensee , permittee, or employee of the licensee or permittee
from civil liability for damages resulting from the use of
unreasonable force in obtaining the altered or falsified
driver’s license or nonoperator’s identification card or the
driver’s license or nonoperator’s identification card believed
to belong to another person.
Sec. 45. Section 123.49, subsection 2, unnumbered paragraph

Senate File 2374, p. 42
1, Code 2022, is amended to read as follows:
A person holding a liquor control retail alcohol license or
retail wine or beer permit under this chapter , and the person’s
agents or employees, shall not do any of the following:
Sec. 46. Section 123.49, subsection 2, paragraph b, Code
2022, is amended to read as follows:
b. Sell or dispense any alcoholic beverage 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 6:00 a.m. on Sunday and 2:00 a.m. on the following
Monday any day of the week .
Sec. 47. Section 123.49, subsection 2, paragraph d,
subparagraphs (1) and (3), Code 2022, are amended to read as
follows:
(1) Keep on premises covered by a liquor control retail
alcohol license any alcoholic liquor in any container except
the original package purchased from the division, and except
mixed drinks or cocktails mixed on the premises for immediate
consumption on the licensed premises or as otherwise provided
by this paragraph “d” . This prohibition does not apply to
holders of a class “D” liquor control retail alcohol license
or to alcoholic liquor delivered in accordance with section
123.46A .
(3) Mixed drinks or cocktails mixed on premises covered by
a class “C” liquor control retail alcohol license or a class
“C” native distilled spirits liquor control retail alcohol
license for consumption off the licensed premises may be
sold if the mixed drink or cocktail is immediately filled in
a sealed container and is promptly taken from the licensed
premises prior to consumption of the mixed drink or cocktail.
A mixed drink or cocktail that is sold in a sealed container in
compliance with the requirements of this subparagraph and rules
adopted by the division shall not be deemed an open container
subject to the requirements of sections 321.284 and 321.284A

Senate File 2374, p. 43
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.
Sec. 48. Section 123.49, subsection 2, paragraphs g and j,
Code 2022, are amended to read as follows:
g. Allow any person other than the licensee , permittee,
or employees of the licensee or permittee, to use or keep
on the licensed premises any alcoholic liquor in any bottle
or other container which is designed for the transporting of
such beverages, except as permitted in section 123.95 . This
paragraph does not apply to the lodging quarters of a class
“B” liquor control licensee or wine or beer permittee hotel
or motel holding a retail alcohol license , or to holders of a
class “D” liquor control retail alcohol license.
j. Knowingly permit or engage in any criminal activity
on the premises covered by the license or permit . However,
the absence of security personnel on the licensed premises
is insufficient, without additional evidence, to prove that
criminal activity occurring on the licensed premises was
knowingly permitted in violation of this paragraph “j” . For
purposes of this paragraph “j” , “premises” includes parking lots
and areas adjacent to the premises of a liquor control retail
alcohol licensee or wine or beer permittee authorized to sell
alcoholic beverages for consumption on the licensed premises
and used by patrons of the liquor control retail alcohol
licensee or wine or beer permittee .
Sec. 49. Section 123.49, subsection 3, Code 2022, is amended
to read as follows:
3. A person under legal age shall not misrepresent the
person’s age for the purpose of purchasing or attempting
to purchase any alcoholic beverage from any liquor control
retail alcohol licensee or wine or beer permittee . If any
person under legal age misrepresents the person’s age, and
the licensee or permittee establishes that the licensee or
permittee made reasonable inquiry to determine whether the
prospective purchaser was over legal age, the licensee or
permittee is not guilty of selling alcoholic beverages to a
person under legal age.
Sec. 50. Section 123.49, subsection 4, Code 2022, is amended

Senate File 2374, p. 44
by striking the subsection.
Sec. 51. Section 123.50, subsections 1, 2, 4, and 5, Code
2022, are amended to read as follows:
1. Any person who violates any of the provisions of section
123.49 , except section 123.49, subsection 2 , paragraph “h” ,
or who fails to affix upon sale, defaces, or fails to record
a keg identification sticker label or produce a record of keg
identification stickers labels pursuant to section 123.138 ,
shall be guilty of a simple misdemeanor. A person who violates
section 123.49, subsection 2 , paragraph “h” , commits a simple
misdemeanor punishable as a scheduled violation under section
805.8C, subsection 2 .
2. The conviction of any liquor control retail alcohol
licensee or wine or beer permittee for a violation of any of
the provisions of section 123.49 , subject to subsection 3 of
this section , is grounds for the suspension or revocation of
the license or permit by the division or the local authority.
However, if any liquor control retail alcohol licensee is
convicted of any violation of section 123.49, subsection 2 ,
paragraph “a” , “d” , or “e” , or any wine or beer permittee retail
alcohol licensee, excluding a special class “B” or class “D”
retail alcohol licensee, is convicted of a violation of section
123.49, subsection 2 , paragraph “a” or “e” “d” , the liquor
control retail alcohol license or wine or beer permit shall be
revoked and shall immediately be surrendered by the holder,
and the bond, if any, of the license or permit holder shall be
forfeited to the division. However, the division shall retain
only that portion of the bond equal to the amount the division
determines the license or permit holder owes the division.
4. In addition to any other penalties imposed under this
chapter , the division shall assess a civil penalty up to
the amount of five thousand dollars upon a class “E” liquor
control retail alcohol licensee when the class “E” liquor
retail alcohol license is revoked for a violation of section
123.59 . Failure to pay the civil penalty as required under
this subsection shall result in forfeiture of the bond to the
division. However, the division shall retain only that portion
of the bond equal to the amount the division determines the
license or permit holder owes the division.

Senate File 2374, p. 45
5. If an employee of a liquor control retail alcohol
licensee or wine or beer permittee violates section 123.49,
subsection 2 , paragraph “h” , the licensee or permittee shall
not be assessed a penalty under subsection 3 , and the violation
shall be deemed not to be a violation of section 123.49,
subsection 2 , paragraph “h” , for the purpose of determining
the number of violations for which a penalty may be assessed
pursuant to subsection 3 , if the employee holds a valid
certificate of completion of the alcohol compliance employee
training program pursuant to section 123.50A at the time of the
violation, and if the violation involves selling, giving, or
otherwise supplying any alcoholic beverage to a person between
the ages of eighteen and twenty years of age. A violation
involving a person under the age of eighteen years of age
shall not qualify for the bar against assessment of a penalty
pursuant to subsection 3 , for a violation of section 123.49,
subsection 2 , paragraph “h” . A licensee or permittee may assert
only once in a four-year period the bar under this subsection
against assessment of a penalty pursuant to subsection 3 , for a
violation of section 123.49, subsection 2 , paragraph “h” , that
takes place at the same place of business location.
Sec. 52. Section 123.50, subsection 3, unnumbered paragraph
1, Code 2022, is amended to read as follows:
If any liquor control retail alcohol licensee , wine or
beer permittee, or employee of a licensee or permittee is
convicted or found in violation of section 123.49, subsection
2 , paragraph “h” , the administrator or local authority shall,
in addition to criminal penalties fixed for violations by this
section , assess a civil penalty as follows:
Sec. 53. Section 123.92, subsection 2, paragraphs a and c,
Code 2022, are amended to read as follows:
a. Every liquor control retail alcohol licensee, class “B”
beer permittee, and class “C” native wine permittee, except
a class “B”, special class “B”, or class “E” liquor control
retail alcohol licensee, shall furnish proof of financial
responsibility by the existence of a liability insurance
policy in an amount determined by the division. If an insurer
provides dramshop liability insurance at a new location to
a licensee or permittee who has a positive loss experience

Senate File 2374, p. 46
at other locations for which such insurance is provided by
the insurer, and the insurer bases premium rates at the new
location on the negative loss history of the previous licensee
or permittee at that location, the insurer shall examine and
consider adjusting the premium for the new location not less
than thirty months after the insurance is issued, based on the
loss experience of the licensee or permittee at that location
during that thirty-month period of time.
c. The purpose of dramshop liability insurance is to provide
protection for members of the public who experience damages
as a result of licensees or permittees serving patrons any
alcoholic beverage to a point that reaches or exceeds the
standard set forth in law for liability. Minimum coverage
requirements for such insurance are not for the purpose of
making the insurance affordable for all licensees or permittees
regardless of claims experience. A dramshop liability
insurance policy obtained by a licensee or permittee shall meet
the minimum insurance coverage requirements as determined by
the division and is a mandatory condition for holding a license
or permit .
Sec. 54. Section 123.92, subsection 3, paragraphs a and b,
Code 2022, are amended to read as follows:
a. Notwithstanding section 123.49, subsection 1 , any
person who is injured in person or property or means of
support by an intoxicated person who is under legal age or
resulting from the intoxication of a person who is under
legal age, has a right of action for all damages actually
sustained, severally or jointly, against a person who is
not a licensee or permittee and who dispensed or gave any
alcoholic beverage to the intoxicated underage person when the
nonlicensee or nonpermittee who dispensed or gave the alcoholic
beverage to the underage person knew or should have known the
underage person was intoxicated, or who dispensed or gave any
alcoholic beverage to the underage person to a point where the
nonlicensee or nonpermittee knew or should have known that the
underage person would become intoxicated.
b. If the injury was caused by an intoxicated person who is
under legal age, a person who is not a licensee or permittee
and who dispensed or gave the alcoholic beverage to the

Senate File 2374, p. 47
underage person may establish as an affirmative defense that
the intoxication did not contribute to the injurious action of
the underage person.
Sec. 55. Section 123.95, subsection 2, paragraphs a and c,
Code 2022, are amended to read as follows:
a. The holder of an annual class “B” liquor control license
or an annual class “C” liquor control retail alcohol license
may act as the agent of a private social host for the purpose
of providing and serving alcoholic beverages as part of a food
catering service for a private social gathering in a private
place, provided the licensee has applied for and been granted a
catering privilege by the division. The holder of an annual
special class “C” liquor control retail alcohol license shall
not act as the agent of a private social host for the purpose of
providing and serving wine and beer as part of a food catering
service for a private social gathering in a private place.
An applicant for a class “B” or class “C” liquor control
retail alcohol license shall state on the application for the
license that the licensee intends to engage in catering food
and alcoholic beverages for private social gatherings and the
catering privilege shall be noted on the license.
c. Section 123.92 does not apply to a liquor control retail
alcohol licensee who acts in accordance with this section when
the liquor control retail alcohol licensee is providing and
serving food and alcoholic beverages as an agent of a private
social host at a private social gathering in a private place
which is not on the licensed premises.
Sec. 56. Section 123.122, subsection 1, Code 2022, is
amended to read as follows:
1. A person shall not cause the manufacture, importation,
or sale of beer in this state unless a certificate or permit as
provided in this subchapter , or a liquor control retail alcohol
license as provided in subchapter I of this chapter , is first
obtained which authorizes that manufacture, importation, or
sale.
Sec. 57. Section 123.124, Code 2022, is amended to read as
follows:
123.124 Beer permits —— classes.
Permits for the manufacture and sale, or sale, of beer shall

Senate File 2374, p. 48
be divided into four classes, known as class “A” , and 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. 58. Section 123.125, Code 2022, is amended to read as
follows:
123.125 Issuance of beer permits.
The administrator shall issue class “A” , and special class
“A” , class “B”, and class “C” beer permits and may suspend or
revoke permits for cause as provided in this chapter .
Sec. 59. Section 123.127, subsection 2, paragraph h, Code
2022, is amended to read as follows:
h. 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 or special class “C” retail alcohol license or
class “B” beer permit .
Sec. 60. Section 123.130, subsection 1, paragraph a, Code
2022, is amended to read as follows:
a. Any person holding a class “A” 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 a
subsisting class “A” , “B”, or “C” beer permits permit , both
a class “C” native wine permit and a class “A” wine permit
pursuant to section 123.178B, subsection 4 , or liquor control
retail alcohol licenses , excluding a special class “B” retail
native wine license, issued in accordance with the provisions
of this chapter . However, a person holding a class “A” beer
permit issued by the division who also holds a brewer’s notice
issued by the alcohol and tobacco tax and trade bureau of the
United States department of the treasury shall be authorized
to sell, at wholesale, no more than thirty thousand barrels of
beer on an annual basis for consumption off the premises to a
licensee or permittee authorized under this chapter to sell
beer at retail.
Sec. 61. Section 123.130, subsections 2 and 4, Code 2022,

Senate File 2374, p. 49
are amended to read as follows:
2. Pursuant to section 123.45, subsection 3 , a native
brewery may be granted not more than two class “B” beer permits
as defined in section 123.124 for the purpose of selling
beer at retail for consumption on or off the premises of the
manufacturing facility class “C” retail alcohol licenses .
4. All special class “A” premises shall be located within
the state. A person who holds a special class “A” beer permit
for the same location at which the person holds a class “C”
liquor control or special class “C” retail alcohol license or
class “B” beer permit for the purpose of operating as a brewpub
may manufacture and sell beer to be consumed on the premises,
may sell beer 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” 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. The
permit issued to holders of a special class “A” beer permit
shall clearly state on its face that the permit is limited.
Sec. 62. Section 123.135, subsection 4, Code 2022, is
amended to read as follows:
4. It shall be unlawful for any holder of a certificate
of compliance or the holder’s agent, or any class “A” beer
permit holder or the beer permit holder’s agent, to grant to
any retail beer permit alcohol license holder, directly or
indirectly, any rebates, free goods, or quantity discounts on
beer which are not uniformly offered to all retail permittees
alcohol licensees .
Sec. 63. Section 123.138, subsection 1, Code 2022, is
amended to read as follows:
1. Each class “A” or special class “A” 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 alcohol licensee as described in section 123.30 shall

Senate File 2374, p. 50
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. 64. Section 123.138, subsection 2, paragraph a, Code
2022, is amended to read as follows:
a. Each class “B”, “C”, or special class “C” liquor control
retail alcohol licensee and class “B” or “C” beer permittee who
sells beer for off-premises consumption shall affix to each
keg of beer an identification sticker label provided by the
administrator. The sticker label provided shall allow for its
full removal when common external keg cleaning procedures are
performed. For the purposes of this subsection , “keg” means
all durable and disposable containers with a liquid capacity
of five gallons or more. Each class “B”, “C”, or special class
“C” liquor control retail alcohol licensee and class “B” or “C”
beer permittee shall also keep a record of the identification
sticker label number of each keg of beer sold by the licensee
or permittee with the name and address of the purchaser and
the number of the purchaser’s driver’s license, nonoperator’s
identification card, or military identification card, if the
military identification card contains a picture and signature.
This information shall be retained by the licensee or permittee
for a minimum of ninety days. The records kept pursuant to
this subsection shall be available for inspection by any law
enforcement officer during normal business hours.
Sec. 65. Section 123.138, subsection 2, paragraph b, Code
2022, is amended to read as follows:
b. (1) The division shall provide the keg identification
stickers labels described in paragraph “a” and shall, prior to
utilizing a sticker label , notify licensed brewers and licensed
beer importers of the type of sticker label to be utilized.
Each sticker label shall contain a number and the following
statement:
It is unlawful to sell, give, or otherwise supply any
alcoholic beverage, wine, or beer to any person under legal
age. Any person who defaces this sticker label shall be guilty

Senate File 2374, p. 51
of criminal mischief punishable pursuant to section 716.6 and
shall cause the forfeiture of any deposit, if applicable .
(2) The identification sticker label shall be placed on
the keg at the time of retail sale. The licensee or permittee
shall purchase obtain the stickers labels referred to in this
subsection from the division and shall remit to the division
deposits forfeited pursuant to this lettered paragraph due to
defacement . The cost of the stickers labels to licensees and
permittees shall not exceed the division’s cost of producing
and distributing the stickers labels . The moneys collected by
the division relating to the sale of stickers and forfeited
deposits labels shall be credited to the beer and liquor
control fund.
Sec. 66. Section 123.138, subsection 2, paragraph d, Code
2022, is amended by striking the paragraph.
Sec. 67. Section 123.141, Code 2022, is amended to read as
follows:
123.141 Keeping liquor where beer is sold.
No alcoholic liquor for beverage purposes shall be used,
or kept for any purpose in the place of business of a special
class “B” beer permittees “C” retail alcohol licensee , or on
the premises of such special class “B” beer permittees “C”
retail alcohol licensee , at any time. A violation of any
provision of this section shall be grounds for suspension or
revocation of the beer permit pursuant to section 123.50,
subsection 3 . This section shall not apply in any manner or
in any way to the premises of any hotel or motel for which a
special class “B” beer permit “C” retail alcohol license has
been issued, other than that part of such premises regularly
used by the hotel or motel for the principal purpose of selling
beer or food to the general public, to a premises for which
both a class “B” beer permit and a class “A” native distilled
spirits license have been issued, or to keep a pharmacy from
having alcohol in stock for medicinal and compounding purposes.
Sec. 68. Section 123.142, subsection 1, Code 2022, is
amended to read as follows:
1. It is unlawful for the holder of a class “B” or class “C”
beer permit retail alcohol license issued under this chapter
to sell beer, except beer brewed on the premises covered by a

Senate File 2374, p. 52
special class “A” beer permit or beer purchased from a person
holding a class “A” 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 retail alcohol licensees as provided in this
chapter .
Sec. 69. Section 123.143, subsection 1, Code 2022, is
amended by striking the subsection.
Sec. 70. Section 123.143, subsection 2, Code 2022, is
amended to read as follows:
2. All permit fees collected by the division under this
subchapter shall accrue to the beer and liquor control fund,
except as otherwise provided. All permit fees and taxes
collected by the division under this subchapter shall accrue to
the state general fund, except as otherwise provided.
Sec. 71. Section 123.171, subsection 1, Code 2022, is
amended to read as follows:
1. A person shall not cause the manufacture, importation,
or sale of wine in this state unless a certificate or permit as
provided in this subchapter , or a liquor control retail alcohol
license as provided in subchapter I of this chapter , is first
obtained which authorizes that manufacture, importation, or
sale.
Sec. 72. Section 123.173, Code 2022, is amended to read as
follows:
123.173 Wine permits permit —— classes class “A” ——
authority.
1. Except as provided in section 123.187 , permits a permit
exclusively for the sale or manufacture and sale of wine shall
be divided into four classes, and shall be known as a class
“A” , “B”, “B” native, or “C” native wine permits permit .
2. A class “A” wine permit allows the holder to manufacture
and sell, or sell at wholesale, in this state, wine. The
holder of a class “A” wine permit may manufacture in this state
wine having an alcoholic content greater than seventeen percent
by weight or twenty-one and twenty-five hundredths percent of
alcohol by volume for shipment outside this state. All class
“A” premises shall be located within the state. A class “B” or
class “B” native wine permit allows the holder to sell wine at

Senate File 2374, p. 53
retail for consumption off the premises. A class “B” or class
“B” native wine permittee who also holds a class “E” liquor
control license may sell wine to class “A”, class “B”, class
“C”, special class “C”, and class “D” liquor control licensees
for resale for consumption on the premises. Such wine sales
shall be in quantities of less than one case of any wine brand
but not more than one such sale shall be made to the same liquor
control licensee in a twenty-four-hour period. A class “B” or
class “B” native wine permittee shall not sell wine to other
class “B” or class “B” native wine permittees. A class “C”
native wine permit allows the holder to sell native wine for
consumption on or off the premises.
3. A class “A” wine permittee shall be required to deliver
wine to a retail wine permittee alcohol licensee , and a retail
wine permittee alcohol licensee shall be required to accept
delivery of wine from a class “A” wine permittee, only at
the licensed premises of the retail wine permittee alcohol
licensee . Except as specifically permitted by the division
upon good cause shown, delivery or transfer of wine from an
unlicensed premises to a licensed retail wine permittee’s
alcohol licensee’s premises, or from one licensed retail wine
permittee’s alcohol licensee’s premises to another licensed
retail wine permittee’s alcohol licensee’s premises, even if
there is common ownership of all of the premises by one retail
permittee, is prohibited. A class “B” or class “B” native wine
permittee who also holds a class “E” liquor control license
shall keep and maintain records for each sale of wine to liquor
control licensees showing the name of the establishment to
which wine was sold, the date of sale, and the brands and
number of bottles sold to the liquor control licensee.
4. When a class “B” or class “B” native wine permittee who
also holds a class “E” liquor control license sells wine to a
liquor control licensee, the liquor control licensee shall sign
a report attesting to the purchase. The class “B” or class “B”
native wine permittee who also holds a class “E” liquor control
license shall submit a report to the division electronically,
or in a manner prescribed by the administrator, not later than
the tenth of each month stating each sale of wine to liquor
control licensees during the preceding month, the date of each

Senate File 2374, p. 54
sale, and the brands and numbers of bottles with each sale.
A class “B” permittee who holds a class “E” liquor control
license may sell to class “A”, class “B”, or class “C” liquor
control licensees only if the licensed premises of the liquor
control licensee is located within the geographic territory of
the class “A” wine permittee from which the wine was originally
purchased by the class “B” or class “B” native wine permittee.
Sec. 73. Section 123.173A, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.173A Charity beer, spirits, and wine special event
license.
1. For purposes of this section:
a. “Authorized nonprofit entity” includes a nonprofit
entity which has a principal office in the state, a nonprofit
corporation organized under chapter 504, or a foreign
corporation as defined in section 504.141, whose income is
exempt from federal taxation under section 501(c) of the
Internal Revenue Code.
b. “Charity auction” means an auction conducted by an
authorized nonprofit entity which includes beer, spirits, and
wine.
c. “Charity event” means an event at which an authorized
nonprofit entity may serve the event’s attendees beer,
spirits, and wine for consumption on the premises of the event,
regardless of whether the entity charges an admission fee to
the event or otherwise collects the cost of the beer, spirits,
and wine served from the event’s attendees.
d. “Charity special event” means a charity auction, charity
event, or a combined charity auction and charity event.
2. Upon application to the division and receipt of a charity
beer, spirits, and wine special event license, an authorized
nonprofit entity may conduct a charity special event subject to
the requirements of this section.
3. A charity auction conducted by a charity beer, spirits,
and wine special event licensee shall comply with the following
requirements:
a. The authorized nonprofit entity conducting the charity
auction shall obtain the beer, spirits, and wine to be
auctioned at the charity auction from an Iowa retail alcohol

Senate File 2374, p. 55
licensee, or may receive donations of beer, spirits, or wine to
be auctioned at the charity auction from persons who purchased
the donated beer, spirits, or wine from an Iowa retail alcohol
licensee or an Iowa class “A” native distilled spirits licensee
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 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.
b. The beer, spirits, and wine sold at the charity auction
shall be in original containers for consumption off of the
premises where the charity auction is conducted. No other
alcoholic beverage may be sold by the charity beer, spirits,
and wine special event licensee at the charity auction. A
purchaser of beer, spirits, or wine at a charity auction shall
not take possession of the beer, spirits, or wine until the
person is leaving the event. A purchaser of beer, spirits,
or wine at a charity auction shall not open the container or
consume or permit the consumption of the beer, spirits, or
wine purchased on the premises where the charity auction is
conducted. A purchaser of beer, spirits, or wine at a charity
auction shall not resell the beer, spirits, or wine.
c. A retail alcohol licensee or class “A” native distilled
spirits licensee shall not purchase beer, spirits, or wine at
a charity auction. The charity auction may be conducted on
a premises for which a class “B” or class “C” retail alcohol
license has been issued, provided that the retail alcohol
licensee does not participate in the charity auction, supply
beer, spirits, or wine to be auctioned at the charity auction,
or receive any of the proceeds of the charity auction.
4. A charity event conducted by a charity beer, spirits,
and wine special event licensee shall comply with the following
requirements:
a. The charity event shall be conducted on a premises
covered by a valid retail alcohol license issued by the
division.
b. The authorized nonprofit entity conducting a charity
event shall have a written agreement with the retail alcohol
licensee covering the premises where the charity event is to be

Senate File 2374, p. 56
conducted specifying that that licensee shall act as the agent
of the authorized nonprofit entity for the purpose of providing
and serving alcoholic beverages to the attendees of the charity
event.
c. The retail alcohol licensee covering the premises where
the charity event is to be conducted shall supply all alcoholic
beverages served to the attendees of the charity event.
d. Only those types of alcoholic beverages as are authorized
to be sold by the retail alcohol license covering the premises
where the charity event is to be conducted are to be served to
the attendees of the charity event.
5. An application for a charity beer, spirits, and wine
special event license to conduct a charity special event shall
include all of the following information:
a. The date and time when the charity special event is to be
conducted and the location of the premises in this state where
the charity special event is to be physically conducted.
b. The retail alcohol license number issued by the division
for the premises where a charity event is to be conducted, if
applicable.
c. A certification that the objective of the charity special
event is to raise funds solely to be used for educational,
religious, or charitable purposes and that the entire proceeds
from the charity special event are to be expended for any of
the purposes described in section 423.3, subsection 78.
6. An authorized nonprofit entity shall be eligible to
receive no more than two charity beer, spirits, and wine
special event licenses during a calendar year and each charity
beer, spirits, and wine special event license shall be valid
for a period not to exceed thirty-six consecutive hours.
7. Any violation of the requirements of this chapter or
the rules adopted pursuant to this chapter shall subject
the charity beer, spirits, and wine special event license
holder to the general penalties provided in this chapter and
shall constitute grounds for imposition of a civil penalty,
suspension of the license, or revocation of the permit after
notice and opportunity for a hearing pursuant to section 123.39
and chapter 17A.
Sec. 74. Section 123.175, subsection 1, unnumbered

Senate File 2374, p. 57
paragraph 1, Code 2022, is amended to read as follows:
A person applying for a class “A” or retail wine permit shall
submit a completed application electronically, or in a manner
prescribed by the administrator, which shall set forth under
oath the following:
Sec. 75. Section 123.175, subsection 1, paragraph e, Code
2022, is amended to read as follows:
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 .
Sec. 76. Section 123.175, subsection 2, unnumbered
paragraph 1, Code 2022, is amended to read as follows:
The administrator shall issue a class “A” or retail wine
permit to any applicant who establishes all of the following:
Sec. 77. Section 123.175, subsection 2, paragraphs d and g,
Code 2022, are amended to read as follows:
d. That , in the case of a class “A” wine permit, the
applicant has filed with the division a basic permit issued
by the alcohol and tobacco tax and trade bureau of the United
States department of the treasury, and that the applicant will
faithfully observe and comply with all the laws, rules, and
regulations governing the manufacture and sale of wine.
g. 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. 78. Section 123.176, subsections 2, 5, and 7, Code
2022, are amended to read as follows:
2. Native wine may be sold at retail for off-premises
consumption when sold on the premises of the manufacturer, or
in a retail establishment operated by the manufacturer. Sales
may also be made to class “A” or retail wine permittees or
liquor control alcohol licensees as authorized by sections
123.173 123.30 and 123.177 . A manufacturer of native wines
shall not sell the wines other than as permitted in this

Senate File 2374, p. 58
chapter and shall not allow wine sold to be consumed upon the
premises of the manufacturer. However, prior to sale, native
wines may be tasted pursuant to the rules of the division
on the premises where made, when no charge is made for the
tasting.
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 be granted a
class “C” native wine permit retail alcohol license as provided
defined in section 123.178B 123.30 . A manufacturer of native
wine may be granted not more than two class “C” native wine
permits retail alcohol licenses . A manufacturer of native wine
may be issued a class “C” native wine permit retail alcohol
license regardless of whether the manufacturer is also a
manufacturer of beer pursuant to a class “A” beer permit or a
manufacturer of native distilled spirits pursuant to a class
“A” native distilled spirits license.
7. A manufacturer may use the space and equipment of another
manufacturer for the purpose of manufacturing native wine,
provided that such an alternating proprietorship arrangement
is approved by the alcohol and tobacco tax and trade bureau
of the United States department of the treasury. A separate
class “A” wine permit shall be issued to each manufacturer,
and each manufacturer shall be subject to the provisions of
this chapter and the rules of the division. Notwithstanding
subsection 5 , not more than one class “C” native wine permit
retail alcohol license shall be issued to a premises with
alternating proprietorships.
Sec. 79. Section 123.177, subsection 1, Code 2022, is
amended to read as follows:
1. A person holding a class “A” wine permit may manufacture
and sell, or sell at wholesale, wine for consumption off the
premises. Sales within the state may be made only to persons
holding a class “A” or “B” wine permit and to persons holding a
retail liquor control alcohol license. However, if the person
holding the class “A” permit is a manufacturer of native wine,
the person may sell only native wine to a person holding a
retail wine permit or a retail liquor control alcohol license.

Senate File 2374, p. 59
A person holding a class “A” wine permit may sell wine to
distributors outside of the state that are authorized by the
laws of that jurisdiction to sell wine at wholesale. A class
“A” wine permittee having more than one place of business shall
obtain a separate permit for each place of business where wine
is to be manufactured, stored, warehoused, or sold.
Sec. 80. Section 123.177, subsection 3, Code 2022, is
amended by striking the subsection.
Sec. 81. Section 123.180, subsection 4, Code 2022, is
amended to read as follows:
4. It is unlawful for a holder of a vintner’s certificate
of compliance or the holder’s agent, or any class “A” wine
permittee or the permittee’s agent, to discriminate between
class “B” wine permittees class “B”, special class “B”, and
class “E” retail alcohol licensees authorized to sell wine at
retail.
Sec. 82. Section 123.181, subsection 1, Code 2022, is
amended by striking the subsection.
Sec. 83. Section 123.181, subsection 2, Code 2022, is
amended to read as follows:
2. A class “A” wine permittee shall not sell wine on
credit to a retail alcohol licensee or permittee for a period
exceeding thirty days from date of delivery.
Sec. 84. Section 123.187, subsection 2, paragraph a, Code
2022, is amended to read as follows:
a. Only a wine manufacturer that holds a wine direct shipper
permit issued pursuant to this section shall sell wine at
retail for direct shipment to any person within this state.
This section shall not prohibit an authorized retail licensee
or permittee from delivering wine pursuant to section 123.46A .
Sec. 85. Section 123.187, subsection 2, paragraph d, Code
2022, is amended by striking the paragraph.
Sec. 86. Section 125.59, unnumbered paragraph 1, Code 2022,
is amended to read as follows:
The treasurer of state, on each July 1 for that fiscal
year, shall transfer the estimated amounts to be received from
section 123.36, subsection 8 and section 123.143, subsection 1
for purposes of this section to the department.
Sec. 87. REPEAL. Sections 123.97, 123.123, 123.150,

Senate File 2374, p. 60
123.172, 123.173B, and 123.185, Code 2022, are repealed.
Sec. 88. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION IV
CONFORMING CHANGES
Sec. 89. Section 7D.16, Code 2022, is amended to read as
follows:
7D.16 Alcoholic beverages in state capitol or on complex
grounds.
Notwithstanding any contrary provision of law prohibiting
the use and consumption of alcoholic beverages in a public
place, the executive council may authorize, by resolution,
the temporary use and consumption of alcoholic beverages,
as defined in section 123.3 , in the state capitol or on the
state capitol complex grounds, as if the state capitol or
state capitol complex grounds were a private place. The
authorization by resolution shall be limited to the use and
consumption of alcoholic beverages as an accompaniment to food
at a single award ceremony, social event, or other occasion
deemed appropriate by the executive council. The authorization
shall require that the person providing the food and alcoholic
beverages possess an appropriate liquor control retail alcohol
license in accordance with section 123.95 . The secretary
of the executive council shall inform the secretary of the
legislative council and the director of the department of
administrative services of the approval of any such resolution.
Sec. 90. Section 12.43, subsection 5, paragraph e, Code
2022, is amended to read as follows:
e. Liquor, beer, and wine sales must not exceed twenty
percent of annual sales for establishments holding a class
“C” liquor retail alcohol license issued pursuant to section
123.30 .
Sec. 91. Section 99B.3, subsection 2, Code 2022, is amended
to read as follows:
2. A person whose license is revoked under this section
who is a person for whom a class “A”, class “B”, class “C”, or
class “D” liquor control retail alcohol license has been issued
pursuant to chapter 123 shall have the person’s liquor control
retail alcohol license suspended for a period of fourteen days

Senate File 2374, p. 61
in the same manner as provided in section 123.50, subsection
3 , paragraph “a” .
Sec. 92. Section 99B.3, subsection 3, Code 2022, is amended
by striking the subsection.
Sec. 93. Section 99B.43, subsection 1, unnumbered paragraph
1, Code 2022, is amended to read as follows:
Social gambling is lawful on the premises of an
establishment for which a class “A”, class “B”, class “C”,
special class “C”, or class “D” liquor control , or class “F”
retail alcohol license , or class “B” beer permit has been
issued pursuant to chapter 123 when, subject to the provisions
of section 99B.42 , all of the following requirements are met:
Sec. 94. Section 99B.43, subsection 1, paragraph a, Code
2022, is amended to read as follows:
a. The liquor control retail alcohol licensee or beer
permittee has submitted an application for a social gambling
license and a license fee of one hundred fifty dollars to the
department, and a license has been issued.
Sec. 95. Section 99B.43, subsection 2, unnumbered paragraph
1, Code 2022, is amended to read as follows:
A liquor control retail alcohol licensee or beer permittee
with a social gambling license issued pursuant to this section
may conduct a sports betting pool if all of the requirements of
this subsection are met.
Sec. 96. Section 99B.43, subsection 3, Code 2022, is amended
to read as follows:
3. An establishment issued a social gambling license under
this section that is required to obtain a new liquor retail
alcohol license or permit under chapter 123 due to a change in
ownership shall be required to obtain a new social gambling
license under this section to conduct social gambling.
Sec. 97. Section 99B.53, subsections 2, 3, 4, and 13, Code
2022, are amended to read as follows:
2. Except as provided in subsection 3 , an electrical or
mechanical amusement device requiring registration may be
located on premises for which a class “A”, class “B”, class
“C”, special class “C”, or class “D” liquor control , or class
“F” retail alcohol license has been issued pursuant to chapter
123 .

Senate File 2374, p. 62
3. a. An electrical or mechanical amusement device
requiring registration may be located on premises for which a
class “B” or class “C” beer permit “E” retail alcohol license
has been issued pursuant to chapter 123 , but the department
shall not initially register an electrical or mechanical
amusement device to an owner or distributor for a location for
which a class “B” or class “C” beer permit “E” retail alcohol
license has been issued pursuant to chapter 123 on or after
April 28, 2004.
b. A distributor that owns an amusement device at a location
for which only a class “B” or class “C” beer permit “E” retail
alcohol license has been issued pursuant to chapter 123 shall
not relocate an amusement device registered as provided in
this section to a location other than a location for which a
class “A”, class “B”, class “C”, special class “C”, or class
“D” liquor , or class “F” retail alcohol license has been issued
and shall not transfer, assign, sell, or lease an amusement
device registered as provided in this section to another person
for which only a class “B” or class “C” beer permit “E” retail
alcohol license has been issued pursuant to chapter 123 after
April 28, 2004.
c. If ownership of the location changes, the class “B”
or class “C” beer permit
“E” retail alcohol license does not
lapse, and the device is not removed from the location, the
device may remain at the location.
4. An electrical or mechanical amusement device required
to be registered and at a location for which only a class “B”
or class “C” beer permit “E” retail alcohol license has been
issued pursuant to chapter 123 shall include on the device
a security mechanism which prevents the device from being
operated by a person until action is taken by the owner or
owner’s designee to allow the person to operate the device.
13. A person owning or leasing an electrical or mechanical
amusement device required to be registered by this section
shall not relocate and place into operation an amusement
device in any location other than a location which has been
issued an appropriate liquor control retail alcohol license in
good standing and to which the device has been appropriately
registered with the department.

Senate File 2374, p. 63
Sec. 98. Section 99B.55, subsection 2, Code 2022, is amended
to read as follows:
2. a. A person who commits an offense of awarding a cash
prize of fifty dollars or less in violation of section 99B.52,
subsection 3 , pursuant to rules adopted by the department,
shall be subject to a civil penalty in the amount of two
hundred fifty dollars. Additional sanctions beyond the civil
penalty prescribed by this paragraph, including but not limited
to the suspension or revocation of any liquor control retail
alcohol license issued pursuant to chapter 123 or registration
issued pursuant to section 99B.53 or 99B.56 , shall not be
applicable.
b. A person who commits, within two years, a second offense
of awarding a cash prize of fifty dollars or less in violation
of section 99B.52, subsection 3 , or a person who commits an
offense of awarding a cash prize of more than fifty dollars in
violation of section 99B.52, subsection 3 , pursuant to rules
adopted by the department, shall be subject to revocation of
the person’s registration and the following:
(1) If the person whose registration is revoked under this
paragraph “b” is a person for which a class “A”, class “B”,
class “C”, special class “C”, or class “D” liquor control , or
class “F” retail alcohol license has been issued pursuant to
chapter 123 , the person’s liquor control retail alcohol license
shall be suspended for a period of fourteen days in the same
manner as provided in section 123.50, subsection 3 , paragraph
“a” .
(2) If the person whose registration is revoked under this
paragraph “b” is a person for which only a class “B” or class
“C” beer permit “E” retail alcohol license has been issued
pursuant to chapter 123 , the person’s class “B” or class “C”
beer permit “E” retail alcohol license shall be suspended for
a period of fourteen days in the same manner as provided in
section 123.50, subsection 3 , paragraph “a” .
(3) If a person owning or employed by an establishment
having a class “A”, class “B”, class “C”, special class “C”, or
class “D” liquor control , or class “F” retail alcohol license
issued pursuant to chapter 123 commits an offense as provided
in this paragraph “b” , the liquor control retail alcohol

Senate File 2374, p. 64
license of the establishment shall be suspended for a period of
fourteen days in the same manner as provided in section 123.50,
subsection 3 , paragraph “a” .
(4) If a person owning or employed by an establishment
having a class “B” or class “C” beer permit “E” retail alcohol
license issued pursuant to chapter 123 commits an offense as
provided in this paragraph “b” , the beer permit retail alcohol
license of the establishment shall be suspended for a period of
fourteen days in the same manner as provided in section 123.50,
subsection 3 , paragraph “a” .
Sec. 99. Section 137F.1, subsection 9, paragraph c, Code
2022, is amended to read as follows:
c. A premises covered by a class “A” wine permit or a class
“B” wine permit as provided in chapter 123 .
Sec. 100. Section 331.303, subsection 4, Code 2022, is
amended to read as follows:
4. Act upon applications for liquor control retail alcohol
licenses and retail beer permits in accordance with section
123.32 .
Sec. 101. Section 455C.4, subsection 4, Code 2022, is
amended to read as follows:
4. A class “E” liquor control retail alcohol licensee
may refuse to accept and to pay the refund value on an empty
alcoholic liquor container from a dealer or a redemption center
or from a person acting on behalf of or who has received empty
alcoholic liquor containers from a dealer or a redemption
center.
Sec. 102. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION V
RESTAURANT FOOD DELIVERY
Sec. 103. NEW SECTION . 137G.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Consent” means a mutual acknowledgment by a restaurant
and a food delivery platform, which may be obtained
electronically.
2. “Food delivery platform” or “platform” means a business
that acts as a third-party intermediary by taking and arranging

Senate File 2374, p. 65
for the delivery or pickup of orders from multiple restaurants
for consumers, not including delivery or pickup orders placed
directly with, and fulfilled by, a restaurant. “Food delivery
platform” does not include websites, mobile applications, or
other electronic services that do not post restaurant menus,
logos, or pricing information on the platform.
3. “Likeness” means a mark or trade name.
4. “Mark” means a trademark or service mark, regardless of
whether the trademark or service mark is actually registered
with the state or other entity.
5. “Restaurant” means a business in the state that operates
its own permanent food service facilities with commercial
cooking equipment on its premises and prepares and offers to
sell multiple entrees for consumption on or off the premises.
6. “Trade name” means a name used by a person or entity to
identify a person or entity’s vocation.
Sec. 104. NEW SECTION . 137G.2 Restaurant and food delivery
platform —— requirements —— penalties.
1. A food delivery platform shall be prohibited from all of
the following:
a. Using a restaurant’s likeness without the consent of the
restaurant owner or the owner’s designee in a manner that could
be reasonably interpreted to falsely suggest sponsorship or
endorsement by the restaurant.
b. Taking and arranging for the delivery or pickup of an
order from a restaurant without the consent of the restaurant
owner or the owner’s designee.
c. Intentionally inflating or altering a restaurant’s
pricing without the consent of the restaurant owner or the
owner’s designee, except that a food delivery platform may
charge additional fees to the consumer if the fees are noted
separately to the consumer.
d. Attempting to charge a restaurant, or expecting the
restaurant to pay or absorb any fee, commission, or charge
without the consent of the restaurant owner or the owner’s
designee.
2. A food delivery platform shall do all of the following:
a. Clearly provide to the consumer a mechanism to express
concerns regarding an order directly to the food delivery

Senate File 2374, p. 66
platform.
b. Remove a restaurant from the food delivery platform’s
services within ten days of receiving the restaurant’s request
for removal unless an agreement between the food delivery
platform and the restaurant states otherwise.
3. An agreement between a food delivery platform and a
restaurant to take and arrange for the delivery or pickup of
orders shall include all of the following:
a. Authorization for the food delivery platform to take
and arrange for the delivery and pickup of orders from the
restaurant.
b. Clear identification of any fee, commission, or charge
that the restaurant will be required to pay or absorb.
4. An agreement between a food delivery platform and a
restaurant to take and arrange for the delivery or pickup of
orders shall not include provisions, clauses, or covenants that
require a restaurant to indemnify a food delivery platform,
or any employee, independent contractor, or agent of the food
delivery platform, for any damages or harm caused by the
actions or omissions of the food delivery platform or any
employee, independent contractor, or agent of the food delivery
platform.
5. a. A provision of an agreement between a food delivery
platform and a restaurant, or the obtaining of consent, that is
contrary to this chapter is void and unenforceable.
b. An aggrieved restaurant or the attorney general may seek
judicial enforcement of the requirements of this chapter in an
action brought against a food delivery platform in the county
in which the violation occurred. The following civil penalties
shall be imposed for a violation of this chapter:
(1) A one thousand dollar penalty for a first violation.
(2) A two thousand five hundred dollar penalty for a second
violation.
(3) A ten thousand dollar penalty for a third and subsequent
violation.
6. a. The attorney general or a restaurant may, in addition
to penalties imposed pursuant to subsection 5, bring an action
to enjoin a violation of this chapter. If the court finds a
violation of this chapter, the court shall issue an injunction

Senate File 2374, p. 67
against a food delivery platform and may require the platform
to pay to the injured restaurant all profits derived from, or
damages resulting from, the wrongful acts and order that the
wrongful acts be terminated.
b. If the court finds that the food delivery platform
committed a wrongful act in bad faith in violation of this
chapter by not entering into an agreement or obtaining consent,
the court, in the court’s discretion, shall:
(1) Enter a judgment in an amount not to exceed three times
the amount of profits and damages.
(2) Award reasonable attorney’s fees to the restaurant.
Sec. 105. NEW SECTION . 137G.3 Food safety —— liability.
1. Orders delivered through a food delivery platform shall
be transported in a manner that meets all of the following
requirements:
a. The order shall be maintained at a holding temperature
necessary to prevent spoilage.
b. All bags or containers in which orders are being
transported or delivered from a restaurant to a customer shall
be closed or sealed by the restaurant with a tamper-resistant
method.
c. The individual delivering orders shall not have any
passengers, including animals or children when orders for
delivery are being transported in the vehicle, except for
one adult passenger not engaging in payment for ride-share
services.
d. Smoking or vaping in the vehicle while orders are in the
vehicle shall be prohibited.
2. A food delivery platform transporting orders shall be
liable for any harm or injury caused by a failure by the food
delivery platform to meet the requirements of this chapter.
Sec. 106. APPLICABILITY. This division of this Act applies
to agreements entered into between a restaurant and a food
delivery platform on or after the effective date of this Act.
DIVISION VI
TRANSITION PROVISIONS
Sec. 107. TRANSITION PROVISIONS.
1. Any license or permit issued by the alcoholic beverages
division of the department of commerce that is repealed,

Senate File 2374, p. 68
merged, or altered in this Act, and in effect on January
1, 2023, shall continue in full force and effect with the
authority granted by that license or permit until expiration
or renewal.
2. The alcoholic beverages division of the department of
commerce shall be authorized to adopt alternative procedures
for the issuance of any license or permit that is repealed,
merged, or altered in this Act on January 1, 2023, that are
issued on or after the effective date of this division of this
Act but before January 1, 2023. The alternative procedures
shall not be inconsistent with the provisions of this Act
governing the issuance of licenses or permits on or after
January 1, 2023.
Sec. 108. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
______________________________ ______________________________
JAKE CHAPMAN PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2374, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2022 ______________________________
KIM REYNOLDS
Governor