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Senate
File
2138
-
Introduced
SENATE
FILE
2138
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3037)
(COMPANION
TO
LSB
5479HV
BY
COMMITTEE
ON
STATE
GOVERNMENT)
A
BILL
FOR
An
Act
relating
to
prohibited
activities
in
the
administration
1
of
alcoholic
beverage
control
by
the
department
of
revenue,
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5479SV
(1)
91
jm/ns
S.F.
2138
Section
1.
Section
123.5,
subsection
3,
Code
2026,
is
1
amended
to
read
as
follows:
2
3.
Members
of
the
commission
shall
be
chosen
on
the
basis
3
of
managerial
ability
and
experience
as
business
executives.
4
Not
more
than
two
members
of
the
commission
may
be
the
holder
5
of
or
have
an
interest
in
a
permit
or
license
to
manufacture
6
alcoholic
liquor,
wine,
or
beer
or
to
sell
alcoholic
liquor,
7
wine,
or
beer
at
wholesale
or
retail
directly
or
indirectly;
8
individually;
as
a
member
of
a
partnership
or
an
association;
9
as
a
member,
owner,
or
stockholder,
except
as
an
institutional
10
investor,
of
a
corporation
or
other
entity;
or
as
a
relative
to
11
an
individual
by
blood
or
marriage
within
the
second
degree,
12
do
any
of
the
following:
13
a.
Hold
a
permit
or
license
to
manufacture
alcoholic
14
beverages
or
sell
alcoholic
beverages
at
wholesale
or
retail
.
15
b.
Have
an
interest
in
the
manufacture
of
or
dealing
in
16
alcoholic
beverages
or
in
an
enterprise
or
industry
in
which
17
alcoholic
beverages
are
required.
18
c.
Receive
a
commission
or
profit
on
the
purchase
or
sale
of
19
alcoholic
beverages
by
any
person.
20
d.
Have
an
interest
in
or
mortgage
or
deed
of
trust
on
any
21
land
or
building
where
alcoholic
beverages
are
manufactured
for
22
sale,
offered
for
sale,
or
sold,
or
in
any
personal
property
23
used
in
the
manufacture
or
sale
of
alcoholic
beverages.
24
Sec.
2.
Section
123.5,
Code
2026,
is
amended
by
adding
the
25
following
new
subsections:
26
NEW
SUBSECTION
.
3A.
In
addition
to
the
requirements
of
27
chapter
68B,
members
of
the
commission
shall
not
directly
or
28
indirectly
use
the
office
of
the
member
to
influence,
persuade,
29
or
induce
any
person
to
adopt
their
political
views
or
to
favor
30
any
particular
candidate
for
an
elective
or
appointive
public
31
office.
32
NEW
SUBSECTION
.
6.
This
section
does
not
prohibit
a
33
commission
member
from
lawfully
purchasing
and
keeping
34
alcoholic
beverages
in
the
possession
of
the
commission
member.
35
-1-
LSB
5479SV
(1)
91
jm/ns
1/
4
S.F.
2138
Sec.
3.
Section
123.13,
Code
2026,
is
amended
by
striking
1
the
section
and
inserting
in
lieu
thereof
the
following:
2
123.13
Prohibitions
——
director
and
employees.
3
1.
For
purposes
of
this
section,
“director”
means
the
4
director
of
revenue
but
does
not
include
the
director’s
5
designee.
6
2.
The
requirements
of
this
section
are
in
addition
to
the
7
requirements
of
chapter
68B.
8
3.
The
director
shall
not
directly
or
indirectly;
9
individually;
as
a
member
of
a
partnership
or
an
association;
10
as
a
member,
owner,
or
stockholder,
except
as
an
institutional
11
investor,
of
a
corporation
or
other
entity;
or
as
a
relative
to
12
an
individual
by
blood
or
marriage
within
the
second
degree,
13
do
any
of
the
following:
14
a.
Have
an
interest
in
the
manufacture
of
or
dealing
in
15
alcoholic
beverages
or
in
an
enterprise
or
industry
in
which
16
alcoholic
beverages
are
required.
17
b.
Receive
a
commission
or
profit
from
the
purchase
or
sale
18
of
alcoholic
beverages
by
any
person.
19
c.
Have
an
interest
in
or
mortgage
or
deed
of
trust
on
any
20
land
or
building
where
alcoholic
beverages
are
manufactured
for
21
sale,
offered
for
sale,
or
sold,
or
in
any
personal
property
22
used
in
the
manufacture
or
sale
of
alcoholic
beverages.
23
4.
An
employee
of
the
department
shall
not
license,
24
permit,
or
participate
in
the
licensing
or
permitting
of
a
25
person,
business,
or
organization
that
requires
a
license
or
26
permit
under
the
laws
and
rules
governing
alcoholic
beverages,
27
if
the
employee
has
an
ownership
interest
related
to
that
28
person,
business,
or
organization,
or
is
in
a
position
to
29
exercise
any
control
over
the
purchasing
of
alcoholic
beverages
30
through
a
position
of
employment
with
the
person,
business,
or
31
organization.
32
5.
An
employee
of
the
department
shall
not
enforce
any
33
law
or
rule
governing
alcoholic
beverages
against
a
person,
34
business,
or
organization
that
requires
a
license
or
permit
35
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LSB
5479SV
(1)
91
jm/ns
2/
4
S.F.
2138
under
the
laws
and
rules
governing
alcoholic
beverages,
1
if
the
employee
has
an
ownership
interest
related
to
that
2
person,
business,
or
organization,
or
is
in
a
position
to
3
exercise
any
control
over
the
purchase
of
alcoholic
beverages
4
through
a
position
of
employment
with
the
person,
business,
or
5
organization.
6
6.
The
director
or
an
employee
of
the
department
violating
7
this
section
or
any
other
provision
of
this
chapter
shall,
in
8
addition
to
any
other
penalties
provided
by
law,
be
subject
9
to
disciplinary
action
up
to
and
including
discharge
from
10
employment.
11
7.
This
section
does
not
prohibit
the
director
or
an
12
employee
of
the
department
from
lawfully
purchasing
and
keeping
13
alcoholic
beverages
in
the
possession
of
the
director
or
the
14
employee.
15
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
16
importance,
takes
effect
upon
enactment.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
prohibited
activities
in
the
21
administration
of
alcoholic
beverage
control
by
the
department
22
of
revenue
(IDR).
23
The
bill
specifies
that
not
more
than
two
members
of
the
24
alcoholic
beverages
commission
(member)
shall
directly
or
25
indirectly
have
an
interest
in
alcohol-related
enterprises,
26
except
as
institutional
investors.
The
bill
prohibits
a
member
27
from
influencing,
persuading,
or
inducing
others
to
adopt
28
political
views
of
the
member
or
favor
any
particular
elective
29
or
appointive
candidates.
30
The
bill
prohibits
the
director
of
revenue
from
having
31
any
interest
in
alcohol-related
enterprises,
except
as
an
32
institutional
investor.
33
The
bill
prohibits
an
IDR
employee
from
licensing,
34
permitting,
or
participating
in
the
licensing
or
permitting
of
35
-3-
LSB
5479SV
(1)
91
jm/ns
3/
4
S.F.
2138
a
person,
business,
or
organization
under
the
laws
governing
1
alcoholic
beverages,
if
the
employee
has
an
ownership
interest
2
related
to
that
person,
business,
or
organization,
or
is
in
3
a
position
to
exercise
any
control
over
the
purchasing
of
4
alcoholic
beverages
through
a
position
of
employment
with
the
5
person,
business,
or
organization.
The
bill
also
prohibits
an
6
IDR
employee
from
enforcing
any
law
or
rule
governing
alcoholic
7
beverages
against
a
person,
business,
or
organization,
if
the
8
employee
has
an
ownership
interest
related
to
that
person,
9
business,
or
organization,
or
is
in
a
position
to
exercise
10
any
control
over
the
purchasing
of
alcoholic
beverages
11
through
a
position
of
employment
with
the
person,
business,
or
12
organization.
13
The
bill
provides
the
director
of
revenue
or
an
IDR
employee
14
who
violates
the
bill
shall,
in
addition
to
any
other
penalties
15
provided
by
law,
be
subject
to
disciplinary
action
up
to
and
16
including
discharge
from
employment.
17
The
bill
does
not
prohibit
a
member,
the
director
of
revenue,
18
or
an
IDR
employee
from
lawfully
purchasing
and
keeping
an
19
alcoholic
beverage
in
the
person’s
possession.
20
The
bill
takes
effect
upon
enactment.
21
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5479SV
(1)
91
jm/ns
4/
4