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