Bill Text: IA SSB3112 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to alcoholic beverage control and matters under the purview of the alcoholic beverages division of the department of commerce.

Spectrum: Committee Bill

Status: (N/A - Dead) 2018-02-12 - Subcommittee recommends amendment and passage. [SSB3112 Detail]

Download: Iowa-2017-SSB3112-Introduced.html

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Senate Study Bill 3112 - Introduced
SENATE/HOUSE FILE _____
BY (PROPOSED DEPARTMENT
OF COMMERCE/ALCOHOLIC
BEVERAGES DIVISION BILL)
A BILL FOR
An Act relating to alcoholic beverage control and matters under
the purview of the alcoholic beverages division of the
department of commerce.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 123.3, Code 2018, is amended by adding
the following new subsection:
NEW SUBSECTION . 8A. “Brewpub” means a commercial
establishment authorized to sell beer at retail for consumption
on or off the premises that is operated by a person who holds a
class “C” liquor control 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.
Sec. 2. Section 123.3, subsection 5, Code 2018, is amended
to read as follows:
5. “Alcoholic liquor” or “intoxicating liquor” means the
varieties of liquor defined in subsections 3 and 43 which
contain more than five percent of alcohol by weight, beverages
made as described in subsection 7 which beverages contain more
than five percent of alcohol by weight or six and twenty-five
hundredths percent of alcohol by volume but which are not
wine as defined in subsection 47 or high alcoholic content
beer as defined in subsection 19 , and every other liquid or
solid, patented or not, containing spirits and every beverage
obtained by the process described in subsection 47 containing
more than seventeen percent alcohol by weight or twenty-one
and twenty-five hundredths percent of alcohol by volume, and
susceptible of being consumed by a human being, for beverage
purposes. Alcohol manufactured in this state for use as fuel
pursuant to an experimental distilled spirits plant permit or
its equivalent issued by the federal bureau of alcohol, tobacco
and firearms is not an “alcoholic liquor” .
Sec. 3. Section 123.3, subsection 9, Code 2018, is amended
to read as follows:
9. “Broker” means a person who represents or promotes
alcoholic liquor within the state on behalf of the holder of a
distiller’s certificate of compliance through an agreement with
the distiller, and whose name is disclosed on a distiller’s
current certificate of compliance as its representative in
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the state , a manufacturer’s license, or a class “A” native
distilled spirits license . An employee of the holder of
a distiller’s certificate of compliance , a manufacturer’s
license, or a class “A” native distilled spirits license is not
a broker.
Sec. 4. Section 123.4, Code 2018, is amended to read as
follows:
123.4 Alcoholic beverages division created.
An alcoholic beverages division is created within the
department of commerce to administer and enforce the laws of
this state concerning beer, wine, and alcoholic liquor beverage
control .
Sec. 5. Section 123.9, subsections 5, 6, and 7, Code 2018,
are amended to read as follows:
5. To grant and issue beer permits, wine permits, special
permits, liquor control licenses, and other licenses; and to
suspend or revoke all such permits and licenses for cause under
this chapter .
6. To license, inspect, and control the manufacture of
beer, wine, and alcoholic liquors beverages and regulate the
entire beer, wine, and liquor alcoholic beverage industry in
the state.
7. To accept intoxicating alcoholic liquors ordered
delivered to the alcoholic beverages division pursuant to
chapter 809A , and offer for sale and deliver the intoxicating
alcoholic liquors to class “E” liquor control licensees,
unless the administrator determines that the intoxicating
alcoholic liquors may be adulterated or contaminated. If
the administrator determines that the intoxicating alcoholic
liquors may be adulterated or contaminated, the administrator
shall order their destruction.
Sec. 6. Section 123.10, subsection 6, Code 2018, is amended
to read as follows:
6. Providing for the issuance and electronic distribution
of price lists which show the price to be paid by class “E”
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liquor control 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 intoxicating liquor or
beer 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 licensees from class “E” liquor control
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.
Sec. 7. Section 123.14, subsection 1, Code 2018, is amended
to read as follows:
1. The department of public safety is the primary beer,
wine, and liquor alcoholic beverage control law enforcement
authority for this state.
Sec. 8. Section 123.22, subsection 2, Code 2018, is amended
to read as follows:
2. No person, acting individually or through another
acting for the person shall directly or indirectly, or upon
any pretense, or by any device, manufacture, sell, exchange,
barter, dispense, give in consideration of the purchase of any
property or of any services or in evasion of this chapter ,
or keep for sale, or have possession of any intoxicating
alcoholic liquor, except as provided in this chapter ; or
own, keep, or be in any way concerned, engaged, or employed
in owning or keeping, any intoxicating alcoholic liquor with
intent to violate any provision of this chapter , or authorize
or permit the same to be done; or manufacture, own, sell, or
have possession of any manufactured or compounded article,
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mixture or substance, not in a liquid form, and containing
alcohol which may be converted into a beverage by a process
of pressing or straining the alcohol therefrom, or any
instrument intended for use and capable of being used in the
manufacture of intoxicating alcoholic liquor; or own or have
possession of any material used exclusively in the manufacture
of intoxicating alcoholic liquor; or use or have possession
of any material with intent to use it in the manufacture
of intoxicating alcoholic liquors; however, alcohol may be
manufactured for industrial and nonbeverage purposes by persons
who have qualified for that purpose as provided by the laws of
the United States and the laws of this state. Such alcohol, so
manufactured, may be denatured, transported, used, possessed,
sold, and bartered and dispensed, subject to the limitations,
prohibitions and restrictions imposed by the laws of the United
States and this state. Any person may manufacture, sell, or
transport ingredients and devices other than alcohol for the
making of homemade wine or beer.
Sec. 9. Section 123.23, subsections 1 and 5, Code 2018, are
amended to read as follows:
1. Any manufacturer, distiller, or importer of alcoholic
beverages liquors shipping, selling, or having alcoholic
beverages 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 application
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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 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 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 .
5. This section shall not require the listing of those
persons who are employed on premises where alcoholic beverages
liquors are manufactured, processed, bottled or packaged in
Iowa or persons who are thereafter engaged in the transporting
of such alcoholic beverages liquors to the division.
Sec. 10. Section 123.25, Code 2018, is amended to read as
follows:
123.25 Consumption on premises.
An officer, clerk, agent, or employee of the division
employed in a state-owned warehouse shall not allow any
alcoholic liquor beverage to be consumed on the premises, nor
shall a person consume any alcoholic liquor on the premises
except for testing or sampling purposes only.
Sec. 11. Section 123.28, subsections 2 and 5, Code 2018, are
amended to read as follows:
2. The division shall deliver alcoholic liquor purchased
by class “E” liquor control licensees. Class “E” liquor
control licensees may deliver alcoholic liquor purchased by
class “A”, “B”, or “C” , “C” native distilled spirits, or “D”
liquor control licensees, and class “A”, “B”, or “C” , “C”
native distilled spirits, or “D” liquor control licensees may
transport alcoholic liquor purchased from class “E” liquor
control licensees.
5. This section does not affect the right of a special
permit or liquor control license holder to purchase, possess,
or transport alcoholic liquors subject to this chapter .
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Sec. 12. Section 123.30, subsection 3, Code 2018, is amended
to read as follows:
3. Liquor control licenses issued under this chapter shall
be of the following classes:
a. Class “A”. A class “A” liquor control license may be
issued to a club and shall authorize the holder to purchase
alcoholic liquors from class “E” liquor control licensees
only, wine from class “A” wine permittees or class “B” wine
permittees who also hold class “E” liquor control licenses only
as provided in section 123.173 and section 123.177 , and native
wines from native wine manufacturers, and to sell liquors,
wine, and beer alcoholic beverages to bona fide members and
their guests by the individual drink for consumption on the
premises only.
b. Class “B”. A class “B” liquor control license may be
issued to a hotel or motel and shall authorize the holder
to purchase alcoholic liquors from class “E” liquor control
licensees only, wine from class “A” wine permittees or class
“B” wine permittees who also hold class “E” liquor control
licenses only as provided in section 123.173 and section
123.177 , and native wines from native wine manufacturers,
and to sell liquors, wine, and beer alcoholic beverages to
patrons by the individual drink for consumption on the premises
only. However, beer may also be sold for consumption off the
premises. Each license shall be effective throughout the
premises described in the application.
c. Class “C”.
(1) A class “C” liquor control license may be issued to
a commercial establishment but must be issued in the name
of the individuals who actually own the entire business and
shall authorize the holder to purchase alcoholic liquors from
class “E” liquor control licensees only, wine from class “A”
wine permittees or class “B” wine permittees who also hold
class “E” liquor control licenses only as provided in section
123.173 and section 123.177 , and native wines from native wine
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manufacturers, and to sell liquors, wine, and beer alcoholic
beverages to patrons by the individual drink for consumption
on the premises only. However, beer may also be sold for
consumption off the premises. The holder of a class “C” liquor
control license may also hold a special class “A” beer permit
for the premises licensed under a class “C” liquor control
license for the purpose of operating a brewpub pursuant to this
chapter.
(2) A special class “C” liquor control license may be issued
to a commercial establishment and shall authorize the holder
to purchase wine from class “A” wine permittees or class “B”
wine permittees who also hold class “E” liquor control licenses
only as provided in section 123.173 and section 123.177 , and
to sell wine and beer to patrons by the individual drink for
consumption on the premises only. However, beer may also be
sold for consumption off the premises. The license issued to
holders of a special class “C” liquor control license shall
clearly state on its face that the license is limited.
(3) A class “C” native distilled spirits liquor control
license may be issued to a native distillery but shall be
issued in the name of the individuals who actually own the
business and shall only be issued to a native distillery
which, combining all production facilities of the business,
produces and manufactures not more than one hundred thousand
proof gallons of distilled spirits on an annual basis. The
license shall authorize the holder to sell native distilled
spirits manufactured on the premises of the native distillery
to patrons by the individual drink for consumption on the
premises. All native distilled spirits sold by a native
distillery for on-premises consumption shall be purchased from
a class “E” liquor control licensee.
d. Class “D”.
(1) A class “D” liquor control 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
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twenty-five persons or more operating in inland or boundary
waters, and shall authorize the holder to sell or furnish
alcoholic beverages , wine, and beer 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” liquor control license for each excursion
gambling boat operating in the waters of this state.
(2) A class “D” liquor control licensee who operates a train
or a watercraft intrastate only, or an excursion gambling boat
licensed under chapter 99F , shall purchase alcoholic liquor
from a class “E” liquor control licensee only, wine from a
class “A” wine permittee or a class “B” wine permittee who also
holds a class “E” liquor control license only as provided in
section 123.173 and section 123.177 , and beer from a class “A”
beer permittee only.
e. Class “E”.
(1) A class “E” liquor control license may be issued
and shall authorize the holder to purchase alcoholic liquor
from the division only and high alcoholic content beer from
a class “A” beer permittee only and to sell the alcoholic
liquor and high alcoholic content beer at retail to patrons
for consumption off the licensed premises and at wholesale to
other liquor control 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 . A holder of a class “E” liquor control license
may hold other retail liquor control licenses or retail wine
or beer permits, but the premises licensed under a class “E”
liquor control license shall be separate from other licensed
premises, though the separate premises may have a common
entrance. However, the holder of a class “E” liquor control
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license may also hold a class “B” wine or class “C” beer permit
or both for the premises licensed under a class “E” liquor
control license.
(2) The division may issue a class “E” liquor control
license for premises covered by a liquor control license
or wine or beer permit for on-premises consumption, if the
premises are in a county having a population under nine
thousand five hundred in which no other class “E” liquor
control license has been issued by the division, and no other
application for a class “E” liquor control license has been
made within the previous twelve consecutive months.
Sec. 13. Section 123.32, subsection 1, Code 2018, is amended
to read as follows:
1. Filing of application. An application for a class “A”,
class “B”, class “C”, or class “E” liquor control license, for
a class “A” native distilled spirits license, for a retail
beer permit as provided in sections 123.128 and 123.129 , or
for a class “B”, class “B” native, or class “C” native retail
wine permit as provided in section 123.178 , 123.178A , or
123.178B 123.175 , accompanied by the necessary fee and bond,
if required, shall be filed with the appropriate city council
if the premises for which the license or permit is sought are
located within the corporate limits of a city, or with the
board of supervisors if the premises for which the license or
permit is sought are located outside the corporate limits of a
city. An application for a class “D” liquor control license
and for a class “A” beer or class “A” wine permit, accompanied
by the necessary fee and bond, if required, shall be submitted
to the division electronically, or in a manner prescribed by
the administrator, which shall proceed in the same manner as in
the case of an application approved by local authorities.
Sec. 14. Section 123.33, Code 2018, is amended to read as
follows:
123.33 Records.
Every holder of a license or permit under this chapter shall
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maintain records, in printed and or electronic format, which
include income statements, balance sheets, purchase and sales
invoices, purchase and sales ledgers, and any other records as
the administrator may require. The records required and the
premises of the licensee or permittee shall be accessible and
open to inspection pursuant to section 123.30, subsection 1 ,
during normal business hours of the licensee or permittee.
Sec. 15. Section 123.34, subsection 1, Code 2018, is amended
to read as follows:
1. Liquor control licenses, wine permits, and beer permits,
unless sooner suspended or revoked, expire one year from date
of issuance. The administrator shall give notify a license or
permit holder electronically, or in a manner prescribed by the
administrator, sixty days’ written notice of days prior to the
expiration to of each licensee license or permittee permit .
However, the administrator may issue six-month or eight-month
seasonal licenses, class “B” wine permits, or class “B” beer
permits for a proportionate part of the license or permit fee
or may issue fourteen-day liquor control licenses, native wine
permits, or beer permits as provided in subsection 2 . No
refund shall be made for seasonal licenses or permits or for
fourteen-day liquor control licenses, native wine permits, or
beer permits. No seasonal license or permit shall be renewed.
However, after a period of two months the applicant may apply
for a new seasonal license or permit for the same location.
Sec. 16. Section 123.36, subsections 1 and 6, Code 2018, are
amended to read as follows:
1. Class “A” liquor control licenses, the sum of six hundred
dollars, except that for class “A” 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
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beverages , wine, or beer 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 , wine, or beer on the premises more than one day in
any week or more than a total of fifty-two days in a year.
6. Any club, hotel, motel, native distillery, or commercial
establishment holding a liquor control license, subject to
section 123.49, subsection 2 , paragraph “b” , may apply for
and receive permission to sell and dispense alcoholic liquor
and wine beverages as authorized by section 123.30 to patrons
on Sunday for consumption on the premises only, and beer for
consumption on or off the premises between the hours of 8:00
a.m. on Sunday and 2:00 a.m. on the following Monday. A
class “D” liquor control licensee may apply for and receive
permission to sell and dispense alcoholic beverages to patrons
for consumption on the premises only between the hours of 8:00
a.m. on Sunday and 2:00 a.m. on the following Monday. For
the privilege of selling beer, wine, and alcoholic liquor on
the premises on Sunday the liquor control license fee of the
applicant shall be increased by twenty percent of the regular
fee prescribed for the license pursuant to this section , and
the privilege shall be noted on the liquor control license.
Sec. 17. Section 123.37, subsection 1, Code 2018, is amended
to read as follows:
1. The power to establish licenses and permits and levy
taxes as imposed in this chapter is vested exclusively with
the state. Unless specifically provided, a local authority
shall not require the obtaining of a special license or permit
for the sale of alcoholic beverages , wine, or beer at any
establishment, or require the obtaining of a license by any
person as a condition precedent to the person’s employment in
the sale, serving, or handling of alcoholic beverages , wine,
or beer, within an establishment operating under a license or
permit.
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Sec. 18. Section 123.38, subsections 1 and 2, Code 2018, are
amended to read as follows:
1. A special permit, liquor control 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
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 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.
2. Any licensee or permittee, or the licensee’s or
permittee’s executor or administrator, or any person duly
appointed by the court to take charge of and administer the
property or assets of the licensee or permittee for the benefit
of the licensee’s or permittee’s creditors, may voluntarily
surrender a license or permit to the division. When a license
or permit is surrendered the division shall notify the local
authority, and the division or the local authority shall
refund to the person surrendering the license or permit, a
proportionate amount of the fee received by the division or
the local authority for the license or permit as follows: if
a license or permit is surrendered during the first three
months of the period for which it was issued, the refund shall
be three-fourths of the amount of the fee; if surrendered
more than three months but not more than six months after
issuance, the refund shall be one-half of the amount of the
fee; if surrendered more than six months but not more than nine
months after issuance, the refund shall be one-fourth of the
amount of the fee. No refund shall be made, however, for any
special permit, liquor control license, wine permit, or beer
permit surrendered more than nine months after issuance. For
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purposes of this subsection , any portion of license or permit
fees used for the purposes authorized in section 331.424,
subsection 1 , paragraph “a” , subparagraphs (1) and (2), and in
section 331.424A , shall not be deemed received either by the
division or by a local authority. No refund shall be made to
any licensee or permittee upon the surrender of the license or
permit if there is at the time of surrender a complaint filed
with the division or local authority charging the licensee
or permittee with a violation of this chapter . If upon a
hearing on a complaint the license or permit is not revoked or
suspended, then the licensee or permittee is eligible, upon
surrender of the license or permit, to receive a refund as
provided in this section . However, if the license or permit is
revoked or suspended upon hearing, the licensee or permittee
is not eligible for the refund of any portion of the license or
permit fee.
Sec. 19. Section 123.39, subsection 1, paragraph b,
subparagraph (3), Code 2018, is amended to read as follows:
(3) Any change in the ownership or interest in the business
operated under a class “A”, class “B”, or class “C” liquor
control license, or any wine or beer permit, which change
was not previously reported to in a manner prescribed by the
administrator within thirty days of the change and subsequently
approved by the local authority and the division.
Sec. 20. Section 123.39, subsection 1, paragraph c, Code
2018, is amended to read as follows:
c. A criminal conviction is not a prerequisite to
suspension, revocation, or imposition of a civil penalty
pursuant to this section . A local authority which acts
pursuant to this section , or section 123.32 , or section 123.50
shall notify the division in writing of the action taken,
and shall notify the licensee or permit holder of the right
to appeal a suspension, revocation, or imposition of a civil
penalty to the division. Civil penalties imposed and collected
by the local authority under this section shall be retained by
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the local authority. Civil penalties imposed and collected
by the division under this section shall be retained by the
division.
Sec. 21. Section 123.39, subsections 2 and 3, Code 2018, are
amended to read as follows:
2. Local authorities may suspend any retail wine or beer
permit or liquor control 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 retail
wine or beer and liquor control 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 beer, wine, or alcoholic
beverages may be sold or consumed at retail, governing any
other activities or matters which may affect the retail sale
and consumption of beer, wine, and alcoholic liquor beverages
and the health, welfare and morals of the community involved.
3. When a liquor control 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
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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. 22. Section 123.41, subsection 2, Code 2018, is amended
to read as follows:
2. As a condition precedent to the approval and granting
of a manufacturer’s license, an applicant shall file 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 a statement under oath with the division that the
applicant is a bona fide manufacturer of alcoholic liquors, and
that the applicant will faithfully observe and comply with all
laws, rules, and regulations governing the manufacture and sale
of alcoholic liquor.
Sec. 23. Section 123.42, subsection 1, Code 2018, is amended
to read as follows:
1. Prior to representing or promoting a distiller’s
alcoholic liquor products in the state, the broker shall submit
an application to the division electronically, or in a manner
prescribed by the administrator, for a broker’s permit. The
administrator may in accordance with this chapter issue a
broker’s permit which shall be valid for one year from the
date of issuance unless it is sooner suspended or revoked
for a violation of this chapter . A broker’s permit is valid
throughout the state, and a broker who represents more than one
distiller is required to obtain only one broker’s permit.
Sec. 24. Section 123.42, Code 2018, is amended by adding the
following new subsections:
NEW SUBSECTION . 1A. At the time of applying for a broker’s
permit, each applicant shall submit to the division a list
of names and addresses of all manufacturers, distillers, and
importers whom the applicant has been appointed to represent
the applicant in the state of Iowa for any purpose. The
listing shall be amended by the broker as necessary to keep the
listing current with the division.
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NEW SUBSECTION . 1B. A broker’s permit is valid throughout
the state, and a broker who represents more than one
certificate or license holder is required to obtain only one
broker’s permit.
Sec. 25. Section 123.42, subsection 4, Code 2018, is amended
to read as follows:
4. The holder of a distiller’s certificate of compliance , a
manufacturer’s license, or a class “A” native distilled spirits
license is not required to appoint a broker to represent its
alcoholic liquor products in the state. If the holder of a
distiller’s certificate of compliance appoints a broker to
represent its alcoholic liquor products in the state, the
name and address of the broker shall be disclosed on the
distiller’s application for a certificate of compliance, and
the requirements in this section shall apply to the appointed
broker.
Sec. 26. Section 123.43, subsection 2, paragraph d, Code
2018, is amended to read as follows:
d. That the applicant is a bona fide manufacturer of
alcoholic liquors 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 laws,
rules, and regulations governing the manufacture and sale of
alcoholic liquor.
Sec. 27. Section 123.44, Code 2018, is amended to read as
follows:
123.44 Gift of liquors Gifts prohibited.
A manufacturer or broker shall not give away alcoholic
liquor at any time in connection with the manufacturer’s or
broker’s business except for testing or sampling purposes
only. A manufacturer, distiller, vintner, brewer, broker,
wholesaler, or importer, organized as a corporation pursuant
to the laws of this state or any other state, who deals in
alcoholic liquor, wine, or beer beverages subject to regulation
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under this chapter shall not offer or give anything of value
to a commission member, official or employee of the division,
or directly or indirectly contribute in any manner any money
or thing of value to a person seeking a public or appointive
office or a recognized political party or a group of persons
seeking to become a recognized political party.
Sec. 28. Section 123.47, subsection 1, Code 2018, is amended
to read as follows:
1. A person shall not sell, give, or otherwise supply any
alcoholic liquor, wine, or beer beverage to any person knowing
or having reasonable cause to believe that person to be under
legal age.
Sec. 29. Section 123.47, subsection 2, paragraph a, Code
2018, is amended to read as follows:
a. Except for the purposes described in subsection 3 , a
person who is the owner or lessee of, or who otherwise has
control over, property that is not a licensed premises, shall
not knowingly permit any person, knowing or having reasonable
cause to believe the person to be under the age of eighteen, to
consume or possess on such property any alcoholic liquor, wine,
or beer beverage .
Sec. 30. Section 123.47, subsection 2, paragraph c,
subparagraph (2), Code 2018, is amended to read as follows:
(2) A person under legal age who consumes or possesses any
alcoholic liquor, wine, or beer beverage in connection with a
religious observance, ceremony, or rite.
Sec. 31. Section 123.47, subsection 3, Code 2018, 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 liquor, wine, or beer beverages in their possession
or control; except in the case of liquor, wine, or beer 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
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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 , wine,
and beer during the regular course of the person’s employment
by a liquor control licensee, or wine or beer permittee under
this chapter .
Sec. 32. Section 123.47, subsection 4, paragraph a,
unnumbered paragraph 1, Code 2018, is amended to read as
follows:
A person who is eighteen, nineteen, or twenty years of age,
other than a licensee or permittee, who violates this section
regarding the purchase of, attempt to purchase, or consumption
of any alcoholic liquor, wine, or beer beverage , or possessing
or having control of any alcoholic liquor, wine, or beer
beverage , commits the following:
Sec. 33. Section 123.47, subsections 5, 6, and 7, Code 2018,
are amended to read as follows:
5. Except as otherwise provided in subsections 6 and 7 , a
person who is of legal age, other than a licensee or permittee,
who sells, gives, or otherwise supplies any alcoholic liquor,
wine, or beer beverage to a person who is under legal age
in violation of this section commits a serious misdemeanor
punishable by a minimum fine of five hundred dollars.
6. A person who is of legal age, other than a licensee
or permittee, who sells, gives, or otherwise supplies any
alcoholic liquor, wine, or beer beverage to a person who is
under legal age in violation of this section which results in
serious injury to any person commits an aggravated misdemeanor.
7. A person who is of legal age, other than a licensee
or permittee, who sells, gives, or otherwise supplies any
alcoholic liquor, wine, or beer beverage to a person who is
under legal age in violation of this section which results in
the death of any person commits a class “D” felony.
Sec. 34. Section 123.49, subsection 1, Code 2018, is amended
to read as follows:
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1. A person shall not sell, dispense, or give to an
intoxicated person, or one simulating intoxication, any
alcoholic liquor, wine, or beer beverage .
a. A person other than a person required to hold a
license or permit under this chapter who dispenses or gives
an alcoholic beverage , wine, or beer in violation of this
subsection is not civilly liable to an injured person or the
estate of a person for injuries inflicted on that person as
a result of intoxication by the consumer of the alcoholic
beverage , wine, or beer .
b. The general assembly declares that this subsection shall
be interpreted so that the holding of Clark v. Mincks , 364
N.W.2d 226 (Iowa 1985) is abrogated in favor of prior judicial
interpretation finding the consumption of alcoholic beverages ,
wine, or beer rather than the serving of alcoholic beverages ,
wine, or beer as the proximate cause of injury inflicted upon
another by an intoxicated person.
Sec. 35. Section 123.49, subsection 2, paragraphs c, f, h,
i, and j, Code 2018, are amended to read as follows:
c. Sell alcoholic beverages , wine, or beer to any person on
credit, except with a bona fide credit card. This provision
does not apply to sales by a club to its members, to sales by a
hotel or motel to bona fide registered guests, nor to retail
sales by the managing entity of a convention center, civic
center, or events center.
f. Employ a person under eighteen years of age in the sale
or serving of alcoholic liquor, wine, or beer beverages for
consumption on the premises where sold.
h. Sell, give, or otherwise supply any alcoholic beverage ,
wine, or beer to any person, knowing or failing to exercise
reasonable care to ascertain whether the person is under legal
age, or permit any person, knowing or failing to exercise
reasonable care to ascertain whether the person is under legal
age, to consume any alcoholic beverage , wine, or beer .
i. In the case of a retail beer wine or wine beer permittee,
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knowingly allow the mixing or adding of alcohol or any
alcoholic beverage to wine, beer, wine, or any other beverage
in or about the permittee’s place of business.
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
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 licensee or wine or beer
permittee.
Sec. 36. Section 123.49, subsections 3 and 4, Code 2018, are
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 , wine, or beer from any
liquor control 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 liquor, wine, or
beer beverages to a person under legal age.
4. No privilege of selling alcoholic liquor, wine, or beer
beverages on Sunday as provided in section 123.36, subsection
6 , and section 123.134, subsection 4 , shall be granted to
a club or other organization which places restrictions on
admission or membership in the club or organization on the
basis of sex, race, religion, or national origin. However, the
privilege may be granted to a club or organization which places
restrictions on membership on the basis of sex, if the club or
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organization has an auxiliary organization open to persons of
the other sex.
Sec. 37. Section 123.50, subsection 2, Code 2018, is amended
to read as follows:
2. The conviction of any liquor control licensee , or wine
permittee, 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 licensee is convicted of any
violation of section 123.49, subsection 2 , paragraph “a” ,
“d” , or “e” , or any wine or beer permittee is convicted of a
violation of section 123.49, subsection 2 , paragraph “a” or
“e” , the liquor control license , or wine permit, 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.
Sec. 38. Section 123.50, subsection 3, unnumbered paragraph
1, Code 2018, is amended to read as follows:
If any liquor control licensee, wine permittee, 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. 39. Section 123.50, subsection 5, Code 2018, is amended
to read as follows:
5. If an employee of a liquor control 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
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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 , wine, or beer 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. 40. Section 123.50A, subsection 1, Code 2018, is
amended to read as follows:
1. If sufficient funding is appropriated, the division
shall develop an alcohol compliance employee training program,
not to exceed two hours in length for employees and prospective
employees of licensees and permittees, to inform the employees
about state and federal liquor laws and regulations regarding
the sale of alcoholic liquor, wine, or beer beverages to
persons under legal age, and compliance with and the importance
of laws regarding the sale of alcoholic liquor, wine, or beer
beverages to persons under legal age. In developing the
alcohol compliance employee training program, the division may
consult with stakeholders who have expertise in the laws and
regulations regarding the sale of alcoholic liquor, wine, or
beer beverages to persons under legal age.
Sec. 41. Section 123.56, subsections 2 and 3, Code 2018, 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 licensees as authorized by the class “A” wine
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permit section 123.173 . A manufacturer of native wines shall
not sell the wines other than as permitted in this 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.
3. A manufacturer of native wines may ship wine in closed
containers to individual purchasers inside this state by
obtaining a wine direct shipper license permit pursuant to
section 123.187 .
Sec. 42. Section 123.81, Code 2018, is amended to read as
follows:
123.81 Forfeiture of bond.
If the owner of a property who has filed an abatement bond as
provided in this chapter fails to abate the alcoholic liquor,
wine, or beer nuisance on the premises covered by the bond, or
fails to prevent the maintenance of any alcoholic liquor, wine,
or beer nuisance on the premises at any time within a period of
one year after entry of the abatement order, the court shall,
after a hearing in which such fact is established, direct an
entry of the violation of the terms of the owner’s bond to be
made on the record and the undertaking of the owner’s bond
shall be forfeited.
Sec. 43. Section 123.84, Code 2018, is amended to read as
follows:
123.84 Judgment.
If the court after a hearing in an action filed pursuant
to section 123.82 finds a an alcoholic liquor, wine, or beer
nuisance has been maintained on the premises covered by the
abatement bond and that alcoholic liquor, wine, or beer has
been sold or kept for sale on the premises contrary to law
within one year from the date of the giving of the bond, then
the court shall order the forfeiture of the bond and enter
judgment for the full amount of the bond against the principal
and sureties on the bond. The lien on the real estate created
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pursuant to section 123.79 shall be decreed foreclosed and the
court shall provide for a special and general execution for the
enforcement of the decree and judgment.
Sec. 44. Section 123.91, unnumbered paragraph 1, Code 2018,
is amended to read as follows:
Any person who has been convicted, in a criminal action,
in any court of record, of a violation of a provision of this
chapter , a provision of the prior laws of this state relating
to intoxicating alcoholic liquors, wine, or beer which was in
force prior to the enactment of this chapter , or a provision
of the laws of the United States or of any other state relating
to intoxicating alcoholic liquors, wine, or beer, and who is
thereafter convicted of a subsequent criminal offense against
any provision of this chapter is guilty of the following
offenses:
Sec. 45. Section 123.92, subsection 1, paragraph a, Code
2018, is amended to read as follows:
a. Any person who is injured in person or property or means
of support by an intoxicated person or resulting from the
intoxication of a person, has a right of action for all damages
actually sustained, severally or jointly, against any licensee
or permittee, whether or not the license or permit was issued
by the division or by the licensing authority of any other
state, who sold and served any beer, wine, or intoxicating
liquor alcoholic beverage to the intoxicated person when the
licensee or permittee knew or should have known the person was
intoxicated, or who sold to and served the person to a point
where the licensee or permittee knew or should have known the
person would become intoxicated.
Sec. 46. Section 123.92, subsection 2, paragraph c, Code
2018, is amended to read as follows:
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 beer,
wine, or intoxicating liquor any alcoholic beverage to a point
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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. 47. Section 123.92, subsection 3, Code 2018, is amended
to read as follows:
3. 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 beer, wine, or intoxicating
liquor alcoholic beverage to the intoxicated underage person
when the nonlicensee or nonpermittee who dispensed or gave
the beer, wine, or intoxicating liquor alcoholic beverage to
the underage person knew or should have known the underage
person was intoxicated, or who dispensed or gave beer, wine, or
intoxicating liquor 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 beer, wine, or intoxicating liquor
the alcoholic beverage to the underage person may establish as
an affirmative defense that the intoxication did not contribute
to the injurious action of the underage person.
c. For purposes of this subsection , “dispensed” or “gave”
means the act of physically presenting a receptacle containing
beer, wine, or intoxicating liquor any alcoholic beverage to
the underage person whose actions or intoxication results in
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the sustaining of damages by another person. However, a person
who dispenses or gives beer, wine, or intoxicating liquor any
alcoholic beverage to an underage person shall only be liable
for any damages if the person knew or should have known that
the underage person was under legal age.
Sec. 48. Section 123.98, Code 2018, is amended to read as
follows:
123.98 Labeling shipments.
1. It shall be unlawful for any common carrier or for
any person to transport or convey by any means, whether for
compensation or not, within this state, any intoxicating
liquors alcoholic liquor, wine, or beer , unless the vessel or
other package containing such liquors alcoholic liquor, wine,
or beer shall be plainly and correctly identified, showing
the quantity and kind of liquors alcoholic liquor, wine, or
beer contained therein, the name of the party to whom they are
to be delivered, and the name of the shipper, or unless such
information is shown on a bill of lading or other document
accompanying the shipment. No person shall be authorized
to receive or keep such liquors alcoholic liquor, wine, or
beer unless the same be marked or labeled as required by this
section . The violation of any provision of this section by any
common carrier, or any agent or employee of any carrier, or
by any person, shall be punished under the provisions of this
chapter .
2. Liquors Any alcoholic liquor, wine, or beer conveyed,
carried, transported, or delivered in violation of this
section , whether in the hands of the carrier or someone to whom
they shall have been delivered, shall be subject to seizure and
condemnation, as liquors alcoholic liquor, wine, or beer kept
for illegal sale.
Sec. 49. Section 123.99, Code 2018, is amended to read as
follows:
123.99 False statements.
If any person, for the purpose of procuring the shipment,
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transportation, or conveyance of any intoxicating alcoholic
liquor, wine, or beer within this state, shall make to any
person, company, corporation, or common carrier, or to any
agent thereof, any false statements as to the character
or contents of any box, barrel, or other vessel or package
containing such alcoholic liquor, wine, or beer; or shall
refuse to give correct and truthful information as to the
contents of any such box, barrel, or other vessel or package so
sought to be transported or conveyed; or shall falsely mark,
brand, or label such box, barrel, or other vessel or package in
order to conceal the fact that the same contains intoxicating
alcoholic liquor, wine, or beer; or shall by any device or
concealment procure or attempt to procure the conveyance or
transportation of such alcoholic liquor, wine, or beer as
herein prohibited, the person shall be guilty of a simple
misdemeanor.
Sec. 50. Section 123.100, Code 2018, is amended to read as
follows:
123.100 Packages in transit.
Any peace officer of the county under process or warrant to
the peace officer directed shall have the right to open any
box, barrel, or other vessel or package for examination, if
the peace officer has reasonable ground for believing that it
contains intoxicating alcoholic liquor, wine, or beer, either
before or while the same is being so transported or conveyed.
Sec. 51. Section 123.101, Code 2018, is amended to read as
follows:
123.101 Record of shipments.
It shall be the duty of all common carriers, or corporations,
or persons who shall for hire carry any intoxicating alcoholic
liquor, wine, or beer into the state, or from one point
to another within the state, for the purpose of delivery,
and who shall deliver such intoxicating alcoholic liquor,
wine, or beer to any person, company, or corporation, to
maintain a proper record of the name of the consignor of
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each shipment of intoxicating alcoholic liquor, wine, or
beer from where shipped, the date of arrival, the quantity
and kind of intoxicating alcoholic liquor, wine, or beer,
so far as disclosed by lettering on the package or by the
carrier’s records, and to whom and where consigned, and the
date delivered.
Sec. 52. Section 123.103, Code 2018, is amended to read as
follows:
123.103 Record and certification upon delivery.
The full name and residence or place of business of
the consignee of a shipment billed in whole or in part as
intoxicating alcoholic liquor, wine, or beer, shall be properly
recorded at the time of delivery and the consignee shall
certify that the intoxicating alcoholic liquor, wine, or beer
is for the consignee’s own lawful purposes.
Sec. 53. Section 123.104, Code 2018, is amended to read as
follows:
123.104 Unlawful delivery.
It is a simple misdemeanor for any corporation, common
carrier, person, or any agent or employee thereof:
1. To deliver any intoxicating alcoholic liquor, wine, or
beer to any person other than to the consignee.
2. To deliver any intoxicating alcoholic liquor, wine, or
beer without having the same properly recorded as provided in
section 123.103 .
3. To deliver any intoxicating alcoholic liquor, wine, or
beer where there is reasonable ground to believe that such
intoxicating alcoholic liquor, wine, or beer is intended for
unlawful use.
Sec. 54. Section 123.106, Code 2018, is amended to read as
follows:
123.106 Federal statutes.
The requirements of this chapter relative to the shipment
and delivery of intoxicating alcoholic liquor, wine, or beer
and the records to be kept thereof shall be construed in
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harmony with federal statutes relating to interstate commerce
in such liquor, wine, or beer.
Sec. 55. Section 123.107, subsection 1, paragraph a, Code
2018, is amended to read as follows:
a. To set out exactly the kind or quantity of intoxicating
alcoholic liquor, wine, or beer manufactured, sold, given in
evasion of the statute, or kept for sale.
Sec. 56. Section 123.111, Code 2018, is amended to read as
follows:
123.111 Purchaser as witness.
The person purchasing any intoxicating alcoholic liquor,
wine, or beer sold in violation of this chapter shall in all
cases be a competent witness to prove such sale.
Sec. 57. Section 123.115, Code 2018, is amended to read as
follows:
123.115 Defense.
In any prosecution under this chapter for the unlawful
transportation of intoxicating alcoholic liquor, wine, or beer
it shall be a defense that the character and contents of the
shipment or thing transported were not known to the accused or
to the accused’s agent or employee.
Sec. 58. Section 123.116, Code 2018, is amended to read as
follows:
123.116 Right to receive alcoholic liquor, wine, or beer.
The consignee of intoxicating alcoholic liquor, wine,
or beer shall, on demand of the carrier transporting such
alcoholic liquor, wine, or beer, furnish the carrier, at the
place of delivery, with legal proof of the consignee’s legal
right to receive such alcoholic liquor, wine, or beer at the
time of delivery, and until such proof is furnished the carrier
shall be under no legal obligation to make delivery nor be
liable for failure to deliver.
Sec. 59. Section 123.119, Code 2018, is amended to read as
follows:
123.119 Evidence.
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In all actions, civil or criminal, under the provisions
of this chapter , the finding of intoxicating alcoholic
liquors or of instruments or utensils used in the manufacture
of intoxicating alcoholic liquors, or materials which are
being used, or are intended to be used in the manufacture of
intoxicating alcoholic liquors, in the possession of or under
the control of any person, under and by authority of a search
warrant or other process of law, and which shall have been
finally adjudicated and declared forfeited by the court, shall
be competent evidence of maintaining a nuisance or bootlegging,
or of illegal transportation of intoxicating alcoholic liquors,
as the case may be, by such person.
Sec. 60. Section 123.120, Code 2018, is amended to read as
follows:
123.120 Attempt to destroy.
The destruction of or attempt to destroy any liquid by
any person while in the presence of peace officers or while
a property is being searched by a peace officer, shall be
competent evidence that such liquid is intoxicating alcoholic
liquor, wine, or beer and intended for unlawful purposes.
Sec. 61. Section 123.121, Code 2018, is amended to read as
follows:
123.121 Venue.
1. In any prosecution under this chapter for the unlawful
sale of alcoholic liquor, wine, or beer, including a sale of
alcoholic liquor, wine, or beer which requires a shipment or
delivery of the alcoholic liquor, wine, or beer, shall be
deemed to be made in the county in which the delivery is made
by the carrier to the consignee, or the consignee’s agent or
employee.
2. In any prosecution under this chapter for the unlawful
transportation of intoxicating alcoholic liquor, wine, or beer,
the offense shall be held to have been committed in any county
in which such alcoholic liquor, wine, or beer is received for
transportation, through which it is transported, or in which it
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is delivered.
Sec. 62. Section 123.127, subsection 2, Code 2018, is
amended by adding the following new paragraph:
NEW PARAGRAPH . 0d. That 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 laws, rules, and regulations governing the
manufacture and sale of beer.
Sec. 63. Section 123.130, subsection 3, Code 2018, is
amended to read as follows:
3. 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 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 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. 64. Section 123.131, Code 2018, is amended by adding
the following new subsection:
NEW SUBSECTION . 5. A person holding a class “B” beer permit
may also hold a special class “A” beer permit for the premises
licensed under a class “B” beer permit for the purpose of
operating as a brewpub pursuant to this chapter.
Sec. 65. Section 123.139, Code 2018, is amended to read as
follows:
123.139 Separate locations —— class “A” or special class “A”
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beer permit.
A class “A” or special class “A” beer permittee having more
than one place of business is required to have a separate beer
permit for each separate place of business maintained by the
permittee where beer is manufactured, stored, warehoused, or
sold.
Sec. 66. Section 123.173, subsections 2 and 4, Code 2018,
are amended to read as follows:
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 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”, and 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.
4. When a class “B” or class “B” native wine permittee who
also holds a class “E” liquor control license sells wine to a
class “A”, class “B”, or class “C” 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
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prescribed by the administrator, not later than the tenth of
each month stating each sale of wine to class “A”, class “B”,
and class “C” liquor control licensees during the preceding
month, the date of each 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. 67. Section 123.175, subsection 2, Code 2018, is
amended by adding the following new paragraph:
NEW PARAGRAPH . 0d. 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.
Sec. 68. Section 123.177, subsection 1, Code 2018, 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 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 license. 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. 69. Section 123.181, subsection 2, Code 2018, is
amended to read as follows:
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2. A class “A” wine permittee shall not sell wine on credit
to a retail liquor licensee or wine permittee for a period
exceeding thirty days from date of delivery.
Sec. 70. Section 123.186, Code 2018, is amended by adding
the following new subsection:
NEW SUBSECTION . 3. A licensee or permittee who permits
or assents to or is a party in any way to a violation or
infringement of a rule adopted pursuant to this section is
guilty of a violation of this section. A violation of this
section shall subject the licensee or permittee to the general
penalties provided in this chapter and shall constitute grounds
for imposition of a civil penalty or suspension or revocation
of the license or permit pursuant to section 123.39.
Sec. 71. Section 123.187, Code 2018, is amended to read as
follows:
123.187 Direct shipment of wine —— licenses and requirements.
1. A wine manufacturer licensed or permitted pursuant to
laws regulating alcoholic beverages in this state or another
state may apply for a wine direct shipper license permit , as
provided in this section . For the purposes of this section ,
a “wine manufacturer” means a person who processes the fruit,
vegetables, dandelions, clover, honey, or any combination of
these ingredients, by fermentation into wines.
2. 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.
a. b. The administrator shall issue A wine manufacturer
applying for a wine direct shipper license to a wine
manufacturer who submits permit shall submit an application for
the license permit electronically, or in a manner prescribed
by the administrator, accompanied by a true copy of the
manufacturer’s current alcoholic beverage license or permit
issued by the state where the manufacturer is primarily located
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and a copy of the manufacturer’s winery license basic permit
issued by the federal alcohol and tobacco tax and trade bureau
of the United States department of the treasury .
b. c. An application submitted pursuant to paragraph “a”
“b” shall be accompanied by a license permit fee in the amount
of twenty-five dollars.
c. d. An application submitted pursuant to paragraph “a”
shall also be accompanied by a bond in the amount of five
thousand dollars in the form prescribed and furnished by the
division with good and sufficient sureties to be approved by
the division conditioned upon compliance with this chapter .
However, a wine manufacturer that has submitted a bond pursuant
to section 123.175, subsection 2 , paragraph “f” , shall not be
required to provide a bond as provided in this paragraph.
d. e. A license permit issued pursuant to this section may
be renewed annually by resubmitting the information required
in paragraph “a” submitting a renewal application with the
administrator in a manner prescribed by the administrator ,
accompanied by the twenty-five dollar license permit fee.
3. The direct shipment of wine pursuant to this
section shall be subject to the following requirements and
restrictions:
a. Wine may shall only be shipped by a wine direct shipper
licensee to a resident of this state who is at least twenty-one
years of age, for the resident’s personal use and consumption
and not for resale.
b. Wine subject to direct shipping shall be properly
registered with the federal alcohol and tobacco tax and trade
bureau, and fermented on the winery premises of the wine direct
shipper licensee permittee .
c. All containers of wine shipped directly to a resident
of this state shall be conspicuously labeled with the words
“CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
REQUIRED FOR DELIVERY” or shall be conspicuously labeled with
alternative wording preapproved by the administrator.
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d. All containers of wine shipped directly to a resident of
this state shall be shipped by an alcohol carrier licensed a
holder of a wine carrier permit as provided in subsection 6 .
e. Shipment of wine pursuant to this subsection does not
require a refund value for beverage container control purposes
under chapter 455C.
4. a. In addition to the annual license fee, a A wine
direct shipper licensee permittee shall remit to the division
an amount equivalent to the wine gallonage tax on wine subject
to direct shipment at the rate specified in section 123.183
for deposit as provided in section 123.183, subsections 2 and
3 . The amount shall be remitted at the time and in the manner
provided in section 123.184, subsection 2, and the ten percent
penalty specified therein shall be applicable.
b. Shipment of wine pursuant to this subsection does not
require a refund value for beverage container control purposes
under chapter 455C .
5. A wine direct shipper licensee permittee shall be deemed
to have consented to the jurisdiction of the division or any
other agency or court in this state concerning enforcement
of this section and any related laws, rules, or regulations.
A licensee permit holder shall permit allow the division to
perform an audit of shipping records upon request.
6. a. Wine subject to direct shipment within this state
pursuant to this section shall be delivered only by a carrier
having obtained from the division an alcohol carrier license.
An alcohol carrier license shall be issued upon payment of
holder of a wine carrier permit as provided in this subsection.
b. A person applying for a wine carrier permit shall submit
an application for the permit electronically, or in a manner
prescribed by the administrator.
c. An application for a wine carrier permit shall be
accompanied by a one hundred dollar license permit fee, and
shall be subject to requirements, and issued pursuant to
application forms, to be determined by the administrator by
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rule.
b. d. An alcohol A wine carrier licensee permittee shall
not deliver wine to any person under twenty-one years of
age, or to any person who either is or appears to be in an
intoxicated state or condition. A licensee permittee shall
obtain valid proof of identity and age prior to delivery,
and shall obtain the signature of an adult as a condition of
delivery.
c. e. An alcohol A wine carrier licensee permittee shall
maintain records of wine shipped which include the license
permit number and name of the wine manufacturer, quantity of
wine shipped, recipient’s name and address, and an electronic
or paper form of signature from the recipient of the wine.
Records shall be submitted to the division on a monthly basis
in a form and manner to be determined by the division by rule .
7. A violation of this section shall subject a licensee
the permittee to the penalty provisions of general penalties
provided in this chapter and shall constitute grounds for
imposition of a civil penalty or suspension or revocation of
the permit pursuant to section 123.39 .
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill concerns alcoholic beverage control and matters
under the purview of the alcoholic beverages division of the
department of commerce.
Code section 123.3, providing definitions, is amended.
The bill adds a definition for “brewpub” which means a
commercial establishment authorized to sell beer at retail
for consumption on or off the premises that is operated by
a retail class “C” liquor control licensee or class “B” beer
permittee who also holds a special class “A” beer permit to
manufacture and sell beer. The bill also amends the definition
of “broker” to provide that it also applies to a person who
represents or promotes alcoholic liquor on behalf of a holder
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of a manufacturer’s license or a class “A” native distilled
spirits license. The bill amends the definition of “alcoholic
liquor” by striking the alternative term “intoxicating liquor”.
The bill further replaces the term “alcoholic liquor” for
“intoxicating liquor” wherever the term appears in Code chapter
123.
Code section 123.4 is amended by substituting the defined
term “alcoholic beverage” for the terms “beer, wine, and
alcoholic liquor”. The term “alcoholic beverage” is defined to
include beer, wine, and alcoholic liquor.
Code section 123.9 is amended by striking the term “special
permits” and by substituting the defined term “alcoholic
beverage” for the terms “beer, wine, and alcoholic liquor”.
Code section 123.10 is amended by substituting the defined
term “alcoholic beverage” for the terms “intoxicating liquor or
beer”.
Code section 123.14 is amended by substituting the phrase
“alcoholic beverage control” for the terms “intoxicating liquor
or beer”.
Code section 123.23, concerning a distiller’s certificate of
compliance, is amended by substituting “alcoholic liquors” for
“alcoholic beverages” as the section is limited to alcoholic
liquor and is not applicable to wine or beer.
Code section 123.25 is amended to provide that the
consumption of any alcoholic beverages on the premises of the
state-owned warehouse is prohibited, with the exception of
alcoholic liquor that is consumed for sampling purposes.
Code section 123.28, concerning the delivery of liquor
purchased from class “E” liquor control license holders by
certain liquor control licensees is amended to include class
“C” native distilled spirits and class “D” liquor control
licensees. The section is also amended by striking a reference
to special permits.
Code section 123.30, concerning classes of liquor control
licenses, is amended. The bill authorizes a class “C” liquor
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control licensee to also hold a special class “A” beer permit
for the purpose of operating a brewpub. The bill also amends
provisions relative to a class “E” liquor control license by
providing that class “E” liquor control license holders are
authorized to sell at retail to the public and to sell at
wholesale to other retailers, provided they have been issued a
basic permit by the alcohol and tobacco tax and trade bureau of
the United States department of the treasury.
Code section 123.32, concerning action by local authorities
and the division on applications for liquor control licenses,
native distilled spirits licenses, and wine, and beer permits,
is amended by striking three Code citations that reference the
authority granted by various wine permits and replacing the
reference with a Code reference that describes the application
process for obtaining the permits.
Code section 123.33, concerning records, is amended to
allow licensees and permittees to keep records in printed or
electronic format and not both.
Code section 123.34, concerning the expiration of certain
shorter term licenses and permits, is amended to allow the
administrator to provide notice of expiration to licensees and
permit holders electronically in lieu of written notice.
Code section 123.36, concerning Sunday sales, is amended to
provide that certain liquor control licensees are authorized
to sell alcoholic beverages on Sunday as authorized by Code
section 123.30.
Code section 123.37 is amended by striking the terms “wine
or beer” after the term “alcoholic beverages” as the term
“alcoholic beverages” includes wine and beer.
Code section 123.38 is amended by striking the term “special
permits”.
Code section 123.39, concerning revocation or suspension of
licenses or permits, is amended to refer to all liquor control
licenses as the types of businesses that are required to report
ownership changes to the local authority and the alcoholic
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beverages division and further provides that licensees
shall report ownership changes in a manner prescribed by the
administrator of the alcoholic beverages division within 30
days of the change.
Code section 123.41, concerning manufacturer’s license for
alcoholic liquor, is amended to provide that an applicant for
a license file a basic permit issued to the applicant by the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury in lieu of a statement that proves
status as a “bona fide manufacturer of alcohol liquors”.
Code section 123.42, concerning a broker’s permit, is
amended to provide that the broker list on the application
for a permit shall list all manufacturers, distillers, and
importers the applicant will represent and is further required
to keep the list updated.
Code section 123.44, prohibiting certain gifts of liquor, is
amended by adding distiller and brewer to the list of persons
who are prohibited from providing gifts of alcoholic beverages
to the alcoholic beverages commission and employees of the
alcoholic beverages division.
Code sections 123.47 and 123.49 are amended by substituting
the defined term “alcoholic beverage” or “alcoholic beverages”
for the terms “beer, wine, and alcoholic liquor”.
Code section 123.50, concerning criminal and civil
penalties, is amended by striking the terms “wine or beer”
after the term “alcoholic beverage” as the term “alcoholic
beverage” includes wine and beer.
Code section 123.50A, concerning the alcohol compliance
employee training program, is amended by striking the phrase
“and federal liquor” in describing the subject matter of the
state training program and by substituting the term “alcoholic
beverages” for the terms “alcoholic liquor, wine, or beer”.
Code section 123.56, concerning native wines, is amended by
striking the phrase “the class “A” wine permit” and inserting
a reference to Code section 123.173 that addresses how native
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wine is sold to retailers.
Code sections 123.81 and 123.84 are amended by adding the
word “alcoholic” before the word “liquor”.
Code section 123.91 is amended by substituting the term
“alcoholic liquors” for “intoxicating liquors”.
Code section 123.92, concerning dramshop liability, is
amended by substituting “alcoholic beverage” for “beer, wine,
or intoxicating liquors” within the section.
Code section 123.98, concerning labeling shipments, is
amended by adding the terms “wine or beer” and by substituting
the term “alcoholic liquors” for “intoxicating liquors”.
Code sections 123.99, 123.100, 123.101, 123.103, 123.104,
123.106, 123.107, 123.111, 123.115, 123.116, 123.119, 123.120,
and 123.121 are amended by substituting the term “alcoholic
liquor” for “intoxicating liquor” and “liquor”.
Code section 123.127, concerning class “A” and special class
“A” beer permit application and issuance, is amended to provide
that an applicant file a basic permit issued to the applicant
by the alcohol and tobacco tax and trade bureau of the United
States department of the treasury.
Code section 123.130, concerning authority under a class “A”
and special class “A” beer permit, is amended to provide that
a holder of a special class “A” beer permit may operate as a
brewpub and that the authority of the permit is limited.
Code section 123.131, concerning authority under a class “B”
beer permit, is amended to specify how a class “B” beer permit
holder may operate as a brewpub.
Code section 123.139, concerning beer permits for separate
locations, is amended to provide that each place of business
where beer is manufactured requires a separate permit.
Code section 123.173, concerning wine permits, is amended by
adding class “D” liquor control licensee to the list of retail
licensees that may purchase wine from a class “A” wine permit
holder.
Code section 123.175, concerning certain wine permit
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applications and issuance, is amended to provide that an
applicant file a basic permit issued to the applicant by the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury.
Code section 123.177, concerning class “A” wine permits, is
amended to provide that each place of business where wine is
manufactured requires a separate permit.
Code section 123.181, concerning prohibited acts, is amended
by providing that a class “A” wine permittee is prohibited from
selling wine on credit to any retail licensee or permittee.
Code section 123.186, concerning federal regulation adopted
as rules, is amended to provide that a licensee or permittee
who violates a rule adopted pursuant to the Code section is
guilty of a violation of the Code section and subject to
the general penalties provided in Code chapter 123 and the
suspension, revocation, and civil penalty provisions of Code
section 123.39.
Code section 123.187, concerning direct shipment of wine, is
amended. The bill changes the wine direct shipper license to
a permit and replaces the alcohol carrier license with a wine
carrier permit. The bill specifically provides that only a
wine manufacturer that holds a wine direct shipper permit shall
sell wine at retail for direct shipment to any person within
this state and requires that an applicant for a wine direct
shipper permit file the manufacturer’s basic permit issued by
the alcohol and tobacco, tax and trade bureau of the United
States department of the treasury. The bill also provides that
a violation of this Code section shall subject the permittee
to the general penalties provided in Code chapter 123 and the
suspension, revocation, and civil penalty provisions of Code
section 123.39.
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