SF 277 (LSB 2475SS (2) 88)

SENATE FILE 277

BY  COURNOYER

(COMPANION TO LSB 2475HH BY MOMMSEN)

A BILL FOR

An Act relating to manufacturers of alcoholic beverages.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.41, subsection 1, Code 2019, is amended to read as follows:
   1.  a.  Each application to obtain or renew a manufacturer’s license shall be submitted to the division electronically, or in a manner prescribed by the administrator, and shall be accompanied by a fee of three hundred fifty dollars payable to the division. The administrator may in accordance with this chapter grant and issue to a manufacturer a manufacturer’s license, valid for a one-year period after date of issuance, which shall allow the manufacture, storage, and wholesale disposition and sale of alcoholic liquors to the division and to customers outside of the state.
   b.  Notwithstanding any provision of this chapter to the contrary, a manufacturer may be granted a manufacturer’s license regardless of whether the manufacturer is a holder of a class “A” native distilled spirits license, a class “C” native distilled spirits liquor control license, a class “A” wine permit, a class “C” native wine permit, or a wine direct shipper permit.
    Sec. 2.  Section 123.43A, subsection 6, Code 2019, is amended to read as follows:
   6.  Notwithstanding any provision of this chapter to the contrary or the fact that a person is the holder of a class “A” native distilled spirits license, a native distillery which, combining all production facilities of the business, produces and manufactures not more than one hundred thousand proof gallons of native distilled spirits on an annual basis may sell those native distilled spirits manufactured on the premises of the native distillery for consumption on the premises by applying for a class “C” native distilled spirits liquor control license as provided in section 123.30. A native distillery may be granted not more than one class “C” native distilled spirits liquor control license. All native distilled spirits sold by a native distillery for on-premises consumption shall be purchased from a class “E” liquor control licensee. A manufacturer of native distilled spirits may be issued a class “C” native distilled spirits liquor control license regardless of whether the manufacturer holds an alcoholic liquor manufacturer’s license or is also a manufacturer of native wine pursuant to a class “A” wine permit. A native distillery engaged in the business of manufacturing beer shall not be issued a class “C” native distilled spirits liquor control license.
    Sec. 3.  Section 123.45, subsection 2, Code 2019, is amended to read as follows:
   2.  However, a person engaged in the wholesaling of beer or wine may sell only disposable glassware, which is constructed of paper, paper laminated, or plastic materials and designed primarily for personal consumption on a one-time usage basis, to retailers for use within the premises of licensed establishments, for an amount which is greater than or equal to an amount which represents the greater of either the amount paid for the disposable glassware by the supplier or the amount paid for the disposable glassware by the wholesaler. Also, a person engaged in the business of manufacturing beer may sell beer at retail for consumption on or off the premises of the manufacturing facility and, notwithstanding any other provision of this chapter or the fact that a person is the holder of a class “A” beer permit, may be granted not more than one class “B” beer permit as defined in section 123.124 for that purpose regardless of whether that person is also a manufacturer of native distilled spirits pursuant to a class “A” native distilled spirits license or a manufacturer of native wine pursuant to a class “A” wine permit.
    Sec. 4.  Section 123.56, subsection 5, Code 2019, is amended to read as follows:
   5.  Notwithstanding any other provision of this chapter, a person engaged in the business of manufacturing native wine may sell native wine at retail for consumption on the premises of the manufacturing facility by applying for a class “C” native wine permit as provided in section 123.178B. A manufacturer of native wine may be granted not more than one class “C” native wine permit. A manufacturer of native wine may be issued a class “C” native wine permit regardless of whether the manufacturer holds an alcoholic liquor manufacturer’s license, is a manufacturer of beer pursuant to a class “A” beer permit, or is also a manufacturer of native distilled spirits pursuant to a class “A” native distilled spirits license.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to manufacturers of alcoholic beverages under Code chapter 123.
   Code section 123.41, concerning an alcoholic liquor manufacturer’s license, is amended to allow the issuance of a license to a manufacturer that also holds a class “A” native distilled spirits license, a class “C” native distilled spirits liquor control license, a class “A” wine permit, a class “C” native wine permit, or a wine direct shipper permit.
   Code section 123.43A, concerning native distilleries, is amended to provide that a manufacturer of native distilled spirits may be issued a class “C” native distilled spirits liquor control license regardless of whether the manufacturer holds an alcoholic liquor manufacturer’s license.
   Code section 123.45, concerning limitations on business interests, is amended to provide that a manufacturer of beer may be granted one class “B” beer permit for the purpose of selling beer at retail for consumption on or off the premises of the manufacturing facility regardless of whether the manufacturer is also a manufacturer of native distilled spirits or a manufacturer of native wine.
   Code section 123.56, concerning native wines, is amended to provide that a manufacturer of native wine may be issued a class “C” native wine permit regardless of whether the manufacturer holds an alcoholic liquor manufacturer’s license or is a manufacturer of beer pursuant to a class “A” beer permit.