House File 2549 - Introduced



                                       HOUSE FILE       
                                       BY  DAVITT


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

                                      A BILL FOR

  1 An Act relating to the manufacture and sale of native distilled
  2    spirits, and establishing a related permit fee.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5052YH 81
  5 ec/gg/14

PAG LIN



  1  1    Section 1.  Section 123.32, subsection 1, Code Supplement
  1  2 2005, is 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" or class "B" native distilled spirits permit, for
  1  6 a retail beer permit as provided in sections 123.128 and
  1  7 123.129, or for a class "B", class "B" native, or class "C"
  1  8 native retail wine permit as provided in section 123.178,
  1  9 123.178A, or 123.178B, accompanied by the necessary fee and
  1 10 bond, if required, shall be filed with the appropriate city
  1 11 council if the premises for which the license or permit is
  1 12 sought are located within the corporate limits of a city, or
  1 13 with the board of supervisors if the premises for which the
  1 14 license or permit is sought are located outside the corporate
  1 15 limits of a city.  An application for a class "D" liquor
  1 16 control license and for a class "A" beer or class "A" wine
  1 17 permit, accompanied by the necessary fee and bond, if
  1 18 required, shall be filed with the division, which shall
  1 19 proceed in the same manner as in the case of an application
  1 20 approved by local authorities.
  1 21    Sec. 2.  Section 123.41, subsection 1, Code 2005, is
  1 22 amended to read as follows:
  1 23    1.  Upon application in the prescribed form and accompanied
  1 24 by a fee of three hundred fifty dollars, the administrator may
  1 25 in accordance with this chapter grant and issue a license,
  1 26 valid for a one=year period after date of issuance, to a
  1 27 manufacturer, other than a manufacturer of native distilled
  1 28 spirits licensed pursuant to section 123.43A, which shall
  1 29 allow the manufacture, storage, and wholesale disposition and
  1 30 sale of alcoholic liquors to the division and to customers
  1 31 outside of the state.
  1 32    Sec. 3.  NEW SECTION.  123.43A  NATIVE DISTILLED SPIRITS ==
  1 33 PERMITS.
  1 34    1.  Subject to rules of the division, a manufacturer of
  1 35 native distilled spirits holding a class "A" native distilled
  2  1 spirits permit pursuant to this section may sell, keep, or
  2  2 offer for sale native distilled spirits.  As provided in this
  2  3 section, sales may be made at retail for off=premises
  2  4 consumption when sold on the premises of the manufacturer of
  2  5 the native distilled spirits.  Any other sale shall only be
  2  6 made to the division for wholesale disposition and sale by the
  2  7 division.
  2  8    2.  For the purposes of this section, "native distilled
  2  9 spirits" means distilled spirits manufactured by a distillery
  2 10 located in this state.
  2 11    3.  A manufacturer of native distilled spirits shall not
  2 12 sell native distilled spirits other than as permitted in this
  2 13 chapter and shall not allow native distilled spirits sold to
  2 14 be consumed upon the premises of the manufacturer except as
  2 15 provided in subsection 5.  However, prior to sale, native
  2 16 distilled spirits may be sampled on the premises where made,
  2 17 when no charge is made for the sampling.  A person may
  2 18 manufacture native distilled spirits for consumption on the
  2 19 manufacturer's premises, when the native distilled spirits or
  2 20 any part of the native distilled spirits are not manufactured
  2 21 for sale.
  2 22    4.  A class "A" native distilled spirits permit for a
  2 23 native distilled spirits manufacturer shall be issued and
  2 24 renewed annually upon payment of a fee of twenty=five dollars
  2 25 which shall be in lieu of any other license fee required by
  2 26 this chapter.  The class "A" permit shall allow the native
  2 27 distilled spirits manufacturer to sell, keep, or offer for
  2 28 sale the manufacturer's native distilled spirits as provided
  2 29 under this section.
  2 30    5.  A class "B" native distilled spirits permit for a
  2 31 native distilled spirits manufacturer shall be issued and
  2 32 renewed annually upon payment of a fee of twenty=five dollars
  2 33 which shall be in lieu of any other license fee required by
  2 34 this chapter.  The class "B" permit shall allow the native
  2 35 distilled spirits manufacturer to sell native distilled
  3  1 spirits at retail for consumption on the premises of the
  3  2 manufacturing facility, or in a retail establishment operated
  3  3 by the manufacturer.  A manufacturer of native distilled
  3  4 spirits may be granted not more than one class "B" native
  3  5 distilled spirits permit.
  3  6    6.  For the purposes of this section, "manufacturer"
  3  7 includes only those persons who process in Iowa raw materials
  3  8 consumed in the production of distilled spirits by the person.
  3  9    7.  For the purposes of this section, section 123.43 shall
  3 10 not apply to a manufacturer of native distilled spirits.
  3 11    8.  The sale of native distilled spirits to the division
  3 12 for wholesale disposition and sale by the division shall be
  3 13 subject to the requirements of this chapter regarding such
  3 14 disposition and sale.
  3 15                           EXPLANATION
  3 16    This bill relates to the manufacture and sale of native
  3 17 distilled spirits, and provides for the obtaining of specified
  3 18 classes of native distilled spirit permits.
  3 19    The bill provides that a manufacturer of native distilled
  3 20 spirits may sell, keep, or offer for sale native distilled
  3 21 spirits for off=premises consumption through sales on the
  3 22 manufacturer's premises.  The bill restricts any other form of
  3 23 sale to sales made to the alcoholic beverages division for
  3 24 wholesale disposition and sale by the division.  The bill
  3 25 defines "native distilled spirits" to mean distilled spirits
  3 26 manufactured by a distillery located in Iowa.
  3 27    The bill specifies that unless a manufacturer has obtained
  3 28 a class "B" native distilled spirits permit, the manufacturer
  3 29 shall not allow native distilled spirits sold to be consumed
  3 30 upon the premises of the manufacturer, but that prior to sale
  3 31 they may be sampled on the premises where made, when no charge
  3 32 is made for the sampling.
  3 33    The bill provides for two new permits applicable to native
  3 34 distilled spirits, both requiring a fee of $25 for initial
  3 35 issuance and annual renewal.  A class "A" native distilled
  4  1 spirits permit allows a manufacturer to sell, keep, or offer
  4  2 for sale the manufacturer's native distilled spirits, and a
  4  3 class "B" native distilled spirits permit allows a
  4  4 manufacturer to sell native distilled spirits at retail for
  4  5 consumption on the premises of the manufacturing facility.
  4  6 The bill provides that a manufacturer may be granted not more
  4  7 than one class "B" native distilled spirits permit.
  4  8    The bill provides that a "manufacturer" of native distilled
  4  9 spirits includes only those persons who process in Iowa raw
  4 10 materials consumed in the production of distilled spirits by
  4 11 the person.  The bill also provides that the sale of native
  4 12 distilled spirits to the alcoholic beverages division for
  4 13 wholesale disposition and sale by the division shall be
  4 14 subject to the requirements of Code chapter 123 relating to
  4 15 liquor sales and distribution by the division.
  4 16    The bill provides that a manufacturer of native distilled
  4 17 spirits is not considered a manufacturer pursuant to Code
  4 18 sections 123.41 and 123.43, which require a license allowing
  4 19 the manufacture, storage, and wholesale disposition and sale
  4 20 of alcoholic liquors to the division and to customers outside
  4 21 of the state.
  4 22    The bill makes conforming changes to provisions in Code
  4 23 chapter 123.
  4 24 LSB 5052YH 81
  4 25 ec:nh/gg/14