House File 569 - Introduced
HOUSE FILE
BY SORENSON, TYMESON, WINDSCHITL,
HAGENOW, COWNIE, UPMEYER,
HELLAND, FORRISTALL, WAGNER,
THOMAS, LUKAN, BAUDLER, SANDS,
HUSEMAN, ROBERTS, D. TAYLOR,
T. TAYLOR, SCHULTZ, LENSING,
T. OLSON, WILLEMS, SCHULTE,
and JACOBY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning the manufacture and sale of native distilled
2 spirits, and establishing a related permit fee and excise tax.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 123.32, subsection 1, Code 2009, is
1 2 amended to read as follows:
1 3 1. FILING OF APPLICATION. An application for a class "A",
1 4 class "B", class "C", or class "E" liquor control license, for
1 5 a class "A" native distilled spirits permit, for a retail beer
1 6 permit as provided in sections 123.128 and 123.129, or for a
1 7 class "B", class "B" native, or class "C" native retail wine
1 8 permit as provided in section 123.178, 123.178A, or 123.178B,
1 9 accompanied by the necessary fee and bond, if required, shall
1 10 be filed with the appropriate city council if the premises for
1 11 which the license or permit is sought are located within the
1 12 corporate limits of a city, or with the board of supervisors
1 13 if the premises for which the license or permit is sought are
1 14 located outside the corporate limits of a city. An
1 15 application for a class "D" liquor control license and for a
1 16 class "A" beer or class "A" wine permit, accompanied by the
1 17 necessary fee and bond, if required, shall be filed with the
1 18 division, which shall proceed in the same manner as in the
1 19 case of an application approved by local authorities.
1 20 Sec. 2. Section 123.41, subsection 1, Code 2009, is
1 21 amended to read as follows:
1 22 1. Upon application in the prescribed form and accompanied
1 23 by a fee of three hundred fifty dollars, the administrator may
1 24 in accordance with this chapter grant and issue a license,
1 25 valid for a one=year period after date of issuance, to a
1 26 manufacturer, other than a manufacturer of native distilled
1 27 spirits licensed pursuant to section 123.43A, which shall
1 28 allow the manufacture, storage, and wholesale disposition and
1 29 sale of alcoholic liquors to the division and to customers
1 30 outside of the state.
1 31 Sec. 3. NEW SECTION. 123.43A NATIVE DISTILLED SPIRITS ==
1 32 PERMIT == EXCISE TAX.
1 33 1. Subject to rules of the division, a manufacturer of
1 34 native distilled spirits holding a class "A" native distilled
1 35 spirits permit pursuant to this section may sell, keep, or
2 1 offer for sale native distilled spirits. As provided in this
2 2 section, sales may be made at retail for off=premises
2 3 consumption when sold on the premises of the manufacturer of
2 4 the native distilled spirits. Any other sale shall only be
2 5 made to the division for wholesale disposition and sale by the
2 6 division.
2 7 2. For the purposes of this section, "native distilled
2 8 spirits" means distilled spirits manufactured by a distillery
2 9 located in this state.
2 10 3. A manufacturer of native distilled spirits shall not
2 11 sell more than five thousand proof gallons of native distilled
2 12 spirits on the premises of the manufacturer, annually. For
2 13 each proof gallon sold in a month, the manufacturer of native
2 14 distilled spirits shall remit an excise tax of fifteen dollars
2 15 per proof gallon to the division on or before the tenth day of
2 16 the following month. All revenue derived from the excise tax
2 17 shall be deposited in the general fund of the state.
2 18 4. A manufacturer of native distilled spirits shall not
2 19 sell native distilled spirits other than as permitted in this
2 20 chapter and shall not allow native distilled spirits sold to
2 21 be consumed upon the premises of the manufacturer. However,
2 22 prior to sale, native distilled spirits may be sampled on the
2 23 premises where made, when no charge is made for the sampling.
2 24 5. A class "A" native distilled spirits permit for a
2 25 native distilled spirits manufacturer shall be issued and
2 26 renewed annually upon payment of a fee of twenty=five dollars
2 27 which shall be in lieu of any other license fee required by
2 28 this chapter. The class "A" permit shall allow the native
2 29 distilled spirits manufacturer to sell, keep, or offer for
2 30 sale the manufacturer's native distilled spirits as provided
2 31 under this section.
2 32 6. For the purposes of this section, section 123.43 shall
2 33 not apply to a manufacturer of native distilled spirits.
2 34 7. The sale of native distilled spirits to the division
2 35 for wholesale disposition and sale by the division shall be
3 1 subject to the requirements of this chapter regarding such
3 2 disposition and sale.
3 3 EXPLANATION
3 4 This bill relates to the manufacture and sale of native
3 5 distilled spirits, and provides for the obtaining of a class
3 6 "A" native distilled spirits permit.
3 7 The bill provides that a manufacturer of native distilled
3 8 spirits may sell, keep, or offer for sale native distilled
3 9 spirits for off=premises consumption through sales on the
3 10 manufacturer's premises. The bill restricts any other form of
3 11 sale to sales made to the alcoholic beverages division for
3 12 wholesale disposition and sale by the division. The bill
3 13 defines "native distilled spirits" to mean distilled spirits
3 14 manufactured by a distillery located in Iowa.
3 15 The bill provides that a manufacturer shall not sell more
3 16 than 5,000 proof gallons of native distilled spirits on the
3 17 premises of the manufacturer, annually. The bill also imposes
3 18 an excise tax of $15 payable to the division to be deposited
3 19 in the general fund for each proof gallon sold by a
3 20 manufacturer. The bill specifies that a manufacturer shall
3 21 not allow native distilled spirits sold to be consumed upon
3 22 the premises of the manufacturer, but that prior to sale they
3 23 may be sampled on the premises where made, when no charge is
3 24 made for the sampling.
3 25 The bill provides for a new permit applicable to native
3 26 distilled spirits, requiring a fee of $25 for initial issuance
3 27 and annual renewal. The class "A" native distilled spirits
3 28 permit allows a manufacturer to sell, keep, or offer for sale
3 29 the manufacturer's native distilled spirits.
3 30 The bill also provides that the sale of native distilled
3 31 spirits to the alcoholic beverages division for wholesale
3 32 disposition and sale by the division shall be subject to the
3 33 requirements of Code chapter 123 relating to liquor sales and
3 34 distribution by the division.
3 35 The bill provides that a manufacturer of native distilled
4 1 spirits is not considered a manufacturer pursuant to Code
4 2 sections 123.41 and 123.43, which require a license allowing
4 3 the manufacture, storage, and wholesale disposition and sale
4 4 of alcoholic liquors to the division and to customers outside
4 5 of the state.
4 6 The bill makes conforming changes to provisions in Code
4 7 chapter 123.
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