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House File 682

Partial Bill History

Bill Text

PAG LIN
  1  1                                             HOUSE FILE 682
  1  2  
  1  3                             AN ACT 
  1  4 RELATING TO WINE BY PROVIDING FOR NATIVE WINE PERMITS, 
  1  5    PROVIDING WINE GALLONAGE TAX REVENUE TO SUPPORT GRAPE
  1  6    AND WINE DEVELOPMENT, PROVIDING FOR FEES, AND PROVIDING
  1  7    AN EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.  
  1  8 
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10 
  1 11    Section 1.  Section 123.3, Code 2003, is amended by adding
  1 12 the following new subsection:
  1 13    NEW SUBSECTION.  22A.  "Native wine" means wine
  1 14 manufactured in this state.
  1 15    Sec. 2.  Section 123.3, subsection 30, Code 2003, is
  1 16 amended to read as follows:
  1 17    30.  "Retail wine permit" means a class "B" wine permit,
  1 18 class "B" native wine permit, or class "C" native wine permit
  1 19 issued under this chapter.
  1 20    Sec. 3.  Section 123.32, subsection 1, Code 2003, is
  1 21 amended to read as follows:
  1 22    1.  FILING OF APPLICATION.  An application for a class "A",
  1 23 class "B", class "C", or class "E" liquor control license, for
  1 24 a retail beer permit as provided in sections 123.128 and
  1 25 123.129, or for a class "B", class "B" native, or class "C"
  1 26 native retail wine permit as provided in section 123.176
  1 27 123.178, 123.178A, or 123.178B, accompanied by the necessary
  1 28 fee and bond, if required, shall be filed with the appropriate
  1 29 city council if the premises for which the license or permit
  1 30 is sought are located within the corporate limits of a city,
  1 31 or with the board of supervisors if the premises for which the
  1 32 license or permit is sought are located outside the corporate
  1 33 limits of a city.  An application for a class "D" liquor
  1 34 control license and for a class "A" beer or class "A" wine
  1 35 permit, accompanied by the necessary fee and bond, if
  2  1 required, shall be filed with the division, which shall
  2  2 proceed in the same manner as in the case of an application
  2  3 approved by local authorities.
  2  4    Sec. 4.  Section 123.56, subsection 1, Code 2003, is
  2  5 amended to read as follows:
  2  6    1.  Subject to rules of the division, manufacturers of
  2  7 native wines from grapes, cherries, other fruits or other
  2  8 fruit juices, vegetables, vegetable juices, dandelions,
  2  9 clover, honey, or any combination of these ingredients,
  2 10 holding a class "A" wine permit as required by this chapter,
  2 11 may sell, keep, or offer for sale and deliver the wine.  Sales
  2 12 may be made at retail for off-premises consumption when sold
  2 13 on the premises of the manufacturer, or in a retail
  2 14 establishment operated by the manufacturer which is no closer
  2 15 than five miles from an existing native winery.  Sales may
  2 16 also be made to class "A" or retail wine permittees or liquor
  2 17 control licensees as authorized by the class "A" wine permit.
  2 18    Sec. 5.  Section 123.56, Code 2003, is amended by adding
  2 19 the following new subsection:
  2 20    NEW SUBSECTION.  6.  Notwithstanding any other provision of
  2 21 this chapter, a person engaged in the business of
  2 22 manufacturing native wine may sell native wine at retail for
  2 23 consumption on the premises of the manufacturing facility by
  2 24 applying for a class "C" native wine permit as provided in
  2 25 section 123.178B.  A manufacturer of native wine may be
  2 26 granted not more than one class "C" native wine permit.
  2 27    Sec. 6.  Section 123.127, subsection 1, paragraph c, Code
  2 28 2003, is amended by striking the paragraph and inserting in
  2 29 lieu thereof the following:
  2 30    c.  That the applicant is a person of good moral character
  2 31 as defined by this chapter.
  2 32    Sec. 7.  Section 123.173, Code 2003, is amended to read as
  2 33 follows:
  2 34    123.173  WINE PERMITS – CLASSES – AUTHORITY.
  2 35    Permits exclusively for the sale or manufacture and sale of
  3  1 wine shall be divided into two four classes, and shall be
  3  2 known as class "A", or "B", "B" native, or "C" native wine
  3  3 permits.
  3  4    A class "A" wine permit allows the holder to manufacture
  3  5 and sell, or sell at wholesale, in this state, wine as defined
  3  6 in section 123.3, subsection 37.  The holder of a class "A"
  3  7 wine permit may manufacture in this state wine having an
  3  8 alcoholic content greater than seventeen percent by weight for
  3  9 shipment outside this state.  All class "A" premises shall be
  3 10 located within the state.  A class "B" or class "B" native
  3 11 wine permit allows the holder to sell wine at retail for
  3 12 consumption off the premises.  A class "B" or class "B" native
  3 13 wine permittee who also holds a class "E" liquor control
  3 14 license may sell wine to class "A", class "B", and class "C"
  3 15 liquor control licensees for resale for consumption on the
  3 16 premises.  A class "B" wine permittee who also holds a class
  3 17 "E" liquor control license may sell wine to class "A", class
  3 18 "B", and class "C" liquor control licensees Such wine sales
  3 19 shall be in quantities of less than one case of any wine brand
  3 20 but not more than one such sale shall be made to the same
  3 21 liquor control licensee in a twenty-four hour period.  A class
  3 22 "B" or class "B" native wine permittee shall not sell wine to
  3 23 other class "B", or class "B" native wine permittees.  A class
  3 24 "C" native wine permit allows the holder to sell wine for
  3 25 consumption on or off the premises.
  3 26    A class "A" wine permittee shall be required to deliver
  3 27 wine to a class "B" retail wine permittee, and a class "B"
  3 28 retail wine permittee shall be required to accept delivery of
  3 29 wine from a class "A" wine permittee, only at the licensed
  3 30 premises of the class "B" retail wine permittee.  Except as
  3 31 specifically permitted by the division upon good cause shown,
  3 32 delivery or transfer of wine from an unlicensed premises to a
  3 33 licensed "B" retail wine permittee's premises, or from one
  3 34 licensed "B" retail wine permittee's premises to another
  3 35 licensed "B" retail wine permittee's premises, even if there
  4  1 is common ownership of all of the premises by one class "B"
  4  2 retail permittee, is prohibited.  A class "B" or class "B"
  4  3 native wine permittee who also holds a class "E" liquor
  4  4 control license shall keep and maintain records for each sale
  4  5 of wine to liquor control licensees showing the name of the
  4  6 establishment to which wine was sold, the date of sale, and
  4  7 the brands and number of bottles sold to the liquor control
  4  8 licensee.
  4  9    When a class "B" or class "B" native wine permittee who
  4 10 also holds a class "E" liquor control license sells wine to a
  4 11 class "A", class "B", or class "C" liquor control licensee,
  4 12 the liquor control licensee shall sign a report attesting to
  4 13 the purchase.  The class "B" or class "B" native wine
  4 14 permittee who also holds a class "E" liquor control license
  4 15 shall submit to the division, on forms supplied by the
  4 16 division, not later than the tenth of each month a report
  4 17 stating each sale of wine to class "A", class "B", and class
  4 18 "C" liquor control licensees during the preceding month, the
  4 19 date of each sale, and the brands and numbers of bottles with
  4 20 each sale.  A class "B" permittee who holds a class "E" liquor
  4 21 control license may sell to class "A", class "B", or class "C"
  4 22 liquor control licensees only if the licensed premises of the
  4 23 liquor control licensee is located within the geographic
  4 24 territory of the class "A" wine permittee from which the wine
  4 25 was originally purchased by the class "B" wine permittee.
  4 26    Sec. 8.  Section 123.174, Code 2003, is amended to read as
  4 27 follows:
  4 28    123.174  ISSUANCE OF WINE PERMITS.
  4 29    The administrator shall issue class "A" and "B" wine
  4 30 permits as provided in this chapter, and may suspend or revoke
  4 31 a wine permit for cause as provided in this chapter.
  4 32    Sec. 9.  Section 123.175, Code 2003, is amended to read as
  4 33 follows:
  4 34    123.175  CLASS "A" APPLICATION CONTENTS.
  4 35    Except as otherwise provided in this chapter, a class "A"
  5  1 or retail wine permit shall be issued to a person who complies
  5  2 with all of the following:
  5  3    1.  Submits a written application for the permit and states
  5  4 on the application under oath:
  5  5    a.  The name and place of residence of the applicant and
  5  6 the length of time the applicant has lived at the place of
  5  7 residence.
  5  8    b.  That the applicant is a citizen of the state of Iowa,
  5  9 or if a corporation, that the applicant is authorized to do
  5 10 business in Iowa.
  5 11    c.  The place of birth of the applicant, and if the
  5 12 applicant is a naturalized citizen, the time and place of
  5 13 naturalization, or if a corporation, the state of
  5 14 incorporation.  That the applicant is a person of good moral
  5 15 character as defined by this chapter.
  5 16    d.  The location of the premises where the applicant
  5 17 intends to use the permit.
  5 18    e.  The name of the owner of the premises, and if that
  5 19 owner is not the applicant, that the applicant is the actual
  5 20 lessee of the premises.
  5 21    2.  Establishes all of the following:
  5 22    a.  That the applicant meets the test of good moral
  5 23 character as provided in section 123.3, subsection 26.
  5 24    b.  That the premises where the applicant intends to use
  5 25 the permit conform to all applicable laws, health regulations,
  5 26 and fire regulations, and constitute a safe and proper place
  5 27 or building.
  5 28    3.  Submits, in the case of a class "A" wine permit, a bond
  5 29 in the amount of five thousand dollars in the form prescribed
  5 30 and furnished by the division with good and sufficient
  5 31 sureties to be approved by the division conditioned upon
  5 32 compliance with this chapter.
  5 33    4.  Consents to inspection as required in section 123.30,
  5 34 subsection 1.
  5 35    Sec. 10.  Section 123.177, subsection 1, Code 2003, is
  6  1 amended to read as follows:
  6  2    1.  A person holding a class "A" wine permit may
  6  3 manufacture and sell, or sell at wholesale, wine for
  6  4 consumption off the premises.  Sales within the state may be
  6  5 made only to persons holding a class "A" or "B" wine permit
  6  6 and to persons holding a class "A", "B", "C" or "D" retail
  6  7 liquor control license.  However, if the person holding the
  6  8 class "A" permit is a manufacturer of native wine, the person
  6  9 may sell only native wine to a person holding a retail wine
  6 10 permit or a retail liquor control license.  A class "A" wine
  6 11 permittee having more than one place of business shall obtain
  6 12 a separate permit for each place of business where wine is to
  6 13 be stored, warehoused, or sold.
  6 14    Sec. 11.  NEW SECTION.  123.178A  AUTHORITY UNDER CLASS "B"
  6 15 NATIVE PERMIT.
  6 16    1.  A person holding a class "B" native wine permit may
  6 17 sell native wine only at retail for consumption off the
  6 18 premises.  Native wine shall be sold for consumption off the
  6 19 premises in original containers only.
  6 20    2.  A class "B" native wine permittee having more than one
  6 21 place of business where wine is sold shall obtain a separate
  6 22 permit for each place of business.
  6 23    3.  A person holding a class "B" native wine permit may
  6 24 purchase wine for resale only from a native winery holding a
  6 25 class "A" wine permit.
  6 26    Sec. 12.  NEW SECTION.  123.178B  AUTHORITY UNDER CLASS "C"
  6 27 NATIVE PERMIT.
  6 28    1.  A person holding a class "C" native wine permit may
  6 29 sell native wine only at retail for consumption on or off the
  6 30 premises.
  6 31    2.  A class "C" native wine permittee having more than one
  6 32 place of business where wine is sold and served shall obtain a
  6 33 separate permit for each place of business.
  6 34    3.  A person holding a class "C" native wine permit may
  6 35 purchase wine for resale only from a native winery holding a
  7  1 class "A" wine permit.
  7  2    Sec. 13.  Section 123.179, Code 2003, is amended by adding
  7  3 the following new subsections:
  7  4    NEW SUBSECTION.  3.  The annual permit fee for a class "B"
  7  5 native wine permit is twenty-five dollars.
  7  6    NEW SUBSECTION.  4.  The annual permit fee for a class "C"
  7  7 native wine permit is twenty-five dollars.
  7  8    Sec. 14.  Section 123.183, subsection 3, paragraph a, Code
  7  9 2003, is amended to read as follows:
  7 10    a.  The revenue actually collected during each fiscal year
  7 11 from the wine gallonage tax on wine imported into this state
  7 12 at wholesale and sold in this state at wholesale that is in
  7 13 excess of the revenue estimated to be collected from such tax
  7 14 as last agreed to by the state revenue estimating conference
  7 15 during the previous fiscal year as provided in section 8.22A
  7 16 shall be deposited in the grape and wine development fund as
  7 17 created in section 175A.5.  However, not more than seventy-
  7 18 five thousand dollars from such tax shall be deposited into
  7 19 the grape and wine development fund during any fiscal year.
  7 20    Sec. 15.  Section 123.176, Code 2003, is repealed.
  7 21    Sec. 16.  LEGISLATION TO BE SUBMITTED.  The alcoholic
  7 22 beverages division of the department of commerce shall submit
  7 23 proposed legislation during the 2004 Regular Session of the
  7 24 Eightieth General Assembly which shall make additional
  7 25 conforming changes to chapter 123, and any other impacted
  7 26 provisions of the Code of Iowa, to fully implement the
  7 27 provisions of this Act.
  7 28    Sec. 17.  EFFECTIVE AND APPLICABILITY DATES.
  7 29    1.  This Act, being deemed of immediate importance, takes
  7 30 effect upon enactment.
  7 31    2.  The section of this Act amending section 123.183 and
  7 32 relating to the deposit of revenue collected from the wine
  7 33 gallonage tax in the grape and wine development fund is
  7 34 retroactively applicable to July 1, 2002.  The revenue
  7 35 collected during the fiscal year beginning on July 1, 2002,
  8  1 and ending on June 30, 2003, from the wine gallonage tax on
  8  2 wine imported into this state at wholesale and sold in this
  8  3 state at wholesale as provided in section 123.183 that is in
  8  4 excess of the revenue collected from such tax during the
  8  5 fiscal year beginning July 1, 2001, and ending on June 30,
  8  6 2002, shall be deposited in the grape and wine development
  8  7 fund as created in section 175.5.  However, not more than
  8  8 seventy-five thousand dollars from such tax shall be deposited
  8  9 into the fund.  
  8 10 
  8 11 
  8 12                                                             
  8 13                               CHRISTOPHER C. RANTS
  8 14                               Speaker of the House
  8 15 
  8 16 
  8 17                                                             
  8 18                               MARY E. KRAMER
  8 19                               President of the Senate
  8 20 
  8 21    I hereby certify that this bill originated in the House and
  8 22 is known as House File 682, Eightieth General Assembly.
  8 23 
  8 24 
  8 25                                                             
  8 26                               MARGARET THOMSON
  8 27                               Chief Clerk of the House
  8 28 Approved                , 2003
  8 29 
  8 30 
  8 31                            
  8 32 THOMAS J. VILSACK
  8 33 Governor
     

Text: HF00681                           Text: HF00683
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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