Senate File 342

                                    SENATE FILE       
                                    BY  COMMITTEE ON NATURAL RESOURCES
                                           AND ENVIRONMENT

                                    (SUCCESSOR TO SSB 1125)


    Passed Senate, Date                Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the sale of wine produced by native wineries
  2    in this state.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2669SV 80
  5 rn/sh/8

PAG LIN

  1  1    Section 1.  Section 123.56, subsection 1, Code 2003, is
  1  2 amended to read as follows:
  1  3    1.  Subject to rules of the division, manufacturers of
  1  4 native wines from grapes, cherries, other fruits or other
  1  5 fruit juices, vegetables, vegetable juices, dandelions,
  1  6 clover, honey, or any combination of these ingredients,
  1  7 holding a class "A" wine permit as required by this chapter,
  1  8 may sell, keep, or offer for sale and deliver the wine.  Sales
  1  9 may be made at retail for off=premises consumption when sold
  1 10 on the premises of the manufacturer, or in a retail
  1 11 establishment operated by the manufacturer which is no closer
  1 12 than five miles from an existing native winery.  Sales may
  1 13 also be made to class "A" or retail wine permittees or liquor
  1 14 control licensees as authorized by the class "A" wine permit.
  1 15    Sec. 2.  Section 123.179, subsection 2, Code 2003, is
  1 16 amended to read as follows:
  1 17    2.  The annual permit fee for a class "B" wine permit is
  1 18 five hundred dollars.  However, a person who has been issued a
  1 19 class "C" beer permit and who sells wine produced by a
  1 20 vineyard located in this state for consumption off the
  1 21 premises shall be assessed an annual permit fee corresponding
  1 22 to the permit fee the person is assessed pursuant to section
  1 23 123.134, subsection 3, for the sale of beer for consumption
  1 24 off the premises.
  1 25                           EXPLANATION
  1 26    This bill provides for the deletion of a requirement that
  1 27 sales of wine by manufacturers of native wines made for off=
  1 28 premises consumption at a retail establishment operated by the
  1 29 manufacturer may occur only when the retail establishment is
  1 30 no closer than five miles from an existing native winery.
  1 31    The bill also provides that a person who has been issued a
  1 32 class "B" retail wine permit, which authorizes the permittee
  1 33 to sell wine in original containers for consumption off the
  1 34 premises, and who also holds a class "C" beer permit, which
  1 35 authorizes the permittee as a grocery store or pharmacy to
  2  1 sell beer at retail for off=the=premises consumption, shall be
  2  2 assessed an annual wine permit fee corresponding to the level
  2  3 of the fee assessed for the class "C" beer permit.  The bill
  2  4 provides that this provision applies to a permittee selling
  2  5 wine produced by vineyards located in this state.  The
  2  6 practical effect of the bill would be to reduce the level of
  2  7 the wine permit fee, because the fees assessed for class "C"
  2  8 beer permits are lower than the $500 fee assessed for a class
  2  9 "B" wine permit.
  2 10 LSB 2669SV 80
  2 11 rn/sh/8