Senate File 277 - Introduced SENATE FILE 277 BY COURNOYER (COMPANION TO LSB 2475HH BY MOMMSEN) A BILL FOR An Act relating to manufacturers of alcoholic beverages. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2475SS (2) 88 ec/rn

S.F. 277 Section 1. Section 123.41, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. a. Each application to obtain or renew a manufacturer’s 3 license shall be submitted to the division electronically, 4 or in a manner prescribed by the administrator, and shall be 5 accompanied by a fee of three hundred fifty dollars payable to 6 the division. The administrator may in accordance with this 7 chapter grant and issue to a manufacturer a manufacturer’s 8 license, valid for a one-year period after date of issuance, 9 which shall allow the manufacture, storage, and wholesale 10 disposition and sale of alcoholic liquors to the division and 11 to customers outside of the state. 12 b. Notwithstanding any provision of this chapter to the 13 contrary, a manufacturer may be granted a manufacturer’s 14 license regardless of whether the manufacturer is a holder 15 of a class “A” native distilled spirits license, a class “C” 16 native distilled spirits liquor control license, a class “A” 17 wine permit, a class “C” native wine permit, or a wine direct 18 shipper permit. 19 Sec. 2. Section 123.43A, subsection 6, Code 2019, is amended 20 to read as follows: 21 6. Notwithstanding any provision of this chapter to the 22 contrary or the fact that a person is the holder of a class 23 “A” native distilled spirits license, a native distillery 24 which, combining all production facilities of the business, 25 produces and manufactures not more than one hundred thousand 26 proof gallons of native distilled spirits on an annual basis 27 may sell those native distilled spirits manufactured on the 28 premises of the native distillery for consumption on the 29 premises by applying for a class “C” native distilled spirits 30 liquor control license as provided in section 123.30 . A native 31 distillery may be granted not more than one class “C” native 32 distilled spirits liquor control license. All native distilled 33 spirits sold by a native distillery for on-premises consumption 34 shall be purchased from a class “E” liquor control licensee. 35 -1- LSB 2475SS (2) 88 ec/rn 1/ 4

S.F. 277 A manufacturer of native distilled spirits may be issued a 1 class “C” native distilled spirits liquor control license 2 regardless of whether the manufacturer holds an alcoholic 3 liquor manufacturer’s license or is also a manufacturer of 4 native wine pursuant to a class “A” wine permit. A native 5 distillery engaged in the business of manufacturing beer shall 6 not be issued a class “C” native distilled spirits liquor 7 control license. 8 Sec. 3. Section 123.45, subsection 2, Code 2019, is amended 9 to read as follows: 10 2. However, a person engaged in the wholesaling of beer or 11 wine may sell only disposable glassware, which is constructed 12 of paper, paper laminated, or plastic materials and designed 13 primarily for personal consumption on a one-time usage 14 basis, to retailers for use within the premises of licensed 15 establishments, for an amount which is greater than or equal 16 to an amount which represents the greater of either the amount 17 paid for the disposable glassware by the supplier or the amount 18 paid for the disposable glassware by the wholesaler. Also, a 19 person engaged in the business of manufacturing beer may sell 20 beer at retail for consumption on or off the premises of the 21 manufacturing facility and, notwithstanding any other provision 22 of this chapter or the fact that a person is the holder of a 23 class “A” beer permit, may be granted not more than one class 24 “B” beer permit as defined in section 123.124 for that purpose 25 regardless of whether that person is also a manufacturer 26 of native distilled spirits pursuant to a class “A” native 27 distilled spirits license or a manufacturer of native wine 28 pursuant to a class “A” wine permit . 29 Sec. 4. Section 123.56, subsection 5, Code 2019, is amended 30 to read as follows: 31 5. Notwithstanding any other provision of this chapter , a 32 person engaged in the business of manufacturing native wine may 33 sell native wine at retail for consumption on the premises of 34 the manufacturing facility by applying for a class “C” native 35 -2- LSB 2475SS (2) 88 ec/rn 2/ 4

S.F. 277 wine permit as provided in section 123.178B . A manufacturer 1 of native wine may be granted not more than one class “C” 2 native wine permit. A manufacturer of native wine may be 3 issued a class “C” native wine permit regardless of whether the 4 manufacturer holds an alcoholic liquor manufacturer’s license, 5 is a manufacturer of beer pursuant to a class “A” beer permit, 6 or is also a manufacturer of native distilled spirits pursuant 7 to a class “A” native distilled spirits license. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to manufacturers of alcoholic beverages 12 under Code chapter 123. 13 Code section 123.41, concerning an alcoholic liquor 14 manufacturer’s license, is amended to allow the issuance of a 15 license to a manufacturer that also holds a class “A” native 16 distilled spirits license, a class “C” native distilled spirits 17 liquor control license, a class “A” wine permit, a class “C” 18 native wine permit, or a wine direct shipper permit. 19 Code section 123.43A, concerning native distilleries, is 20 amended to provide that a manufacturer of native distilled 21 spirits may be issued a class “C” native distilled spirits 22 liquor control license regardless of whether the manufacturer 23 holds an alcoholic liquor manufacturer’s license. 24 Code section 123.45, concerning limitations on business 25 interests, is amended to provide that a manufacturer of beer 26 may be granted one class “B” beer permit for the purpose of 27 selling beer at retail for consumption on or off the premises 28 of the manufacturing facility regardless of whether the 29 manufacturer is also a manufacturer of native distilled spirits 30 or a manufacturer of native wine. 31 Code section 123.56, concerning native wines, is amended 32 to provide that a manufacturer of native wine may be issued 33 a class “C” native wine permit regardless of whether the 34 manufacturer holds an alcoholic liquor manufacturer’s license 35 -3- LSB 2475SS (2) 88 ec/rn 3/ 4

S.F. 277 or is a manufacturer of beer pursuant to a class “A” beer 1 permit. 2 -4- LSB 2475SS (2) 88 ec/rn 4/ 4