House File 661 - Introduced
HOUSE FILE
BY ELGIN
(COMPANION TO LSB 2200SS
BY DVORSKY)
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 permit fee.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2200HH 81
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PAG LIN
1 1 Section 1. Section 123.32, subsection 1, Code 2005, is
1 2 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, or in a retail establishment
2 6 operated by the manufacturer. Any other sale shall only be
2 7 made to the division for wholesale disposition and sale by the
2 8 division.
2 9 2. For the purposes of this section, "native distilled
2 10 spirits" means distilled spirits manufactured by a distillery
2 11 located in this state in which at least eighty percent of the
2 12 raw materials consumed in the production of the distilled
2 13 spirits are grown in this state.
2 14 3. A manufacturer of native distilled spirits shall not
2 15 sell more than five thousand gallons of native distilled
2 16 spirits on the premises of the manufacturer, or in a retail
2 17 establishment operated by the manufacturer, annually.
2 18 4. A manufacturer of native distilled spirits shall not
2 19 sell native distilled spirits other than as permitted in this
2 20 chapter and shall not allow native distilled spirits sold to
2 21 be consumed upon the premises of the manufacturer except as
2 22 provided in subsection 6. However, prior to sale, native
2 23 distilled spirits may be sampled on the premises where made,
2 24 when no charge is made for the sampling. A person may
2 25 manufacture native distilled spirits for consumption on the
2 26 manufacturer's premises, when the native distilled spirits or
2 27 any part of the native distilled spirits are not manufactured
2 28 for sale.
2 29 5. A class "A" native distilled spirits permit for a
2 30 native distilled spirits manufacturer shall be issued and
2 31 renewed annually upon payment of a fee of twenty=five dollars
2 32 which shall be in lieu of any other license fee required by
2 33 this chapter. The class "A" permit shall allow the native
2 34 distilled spirits manufacturer to sell, keep, or offer for
2 35 sale the manufacturer's native distilled spirits as provided
3 1 under this section.
3 2 6. A class "B" native distilled spirits permit for a
3 3 native distilled spirits manufacturer shall be issued and
3 4 renewed annually upon payment of a fee of twenty=five dollars
3 5 which shall be in lieu of any other license fee required by
3 6 this chapter. The class "B" permit shall allow the native
3 7 distilled spirits manufacturer to sell native distilled
3 8 spirits at retail for consumption on the premises of the
3 9 manufacturing facility, or in a retail establishment operated
3 10 by the manufacturer. A manufacturer of native distilled
3 11 spirits may be granted not more than one class "B" native
3 12 distilled spirits permit.
3 13 7. For the purposes of this section, "manufacturer"
3 14 includes only those persons who process in Iowa the Iowa=grown
3 15 raw materials consumed in the production of distilled spirits
3 16 by the person.
3 17 8. For the purposes of this section, section 123.43 shall
3 18 not apply to a manufacturer of native distilled spirits.
3 19 9. The sale of native distilled spirits to the division
3 20 for wholesale disposition and sale by the division shall be
3 21 subject to the requirements of this chapter regarding such
3 22 disposition and sale.
3 23 EXPLANATION
3 24 This bill relates to the manufacture and sale of native
3 25 distilled spirits, and provides for the obtaining of specified
3 26 classes of native distilled spirit permits.
3 27 The bill provides that a manufacturer of native distilled
3 28 spirits may sell, keep, or offer for sale native distilled
3 29 spirits for off=premises consumption either through sales on
3 30 the manufacturer's premises, or in a retail establishment
3 31 operated by the manufacturer. The bill restricts any other
3 32 form of sale to sales made to the alcoholic beverages division
3 33 for wholesale disposition and sale by the division. The bill
3 34 defines "native distilled spirits" to mean distilled spirits
3 35 manufactured by a distillery located in Iowa in which at least
4 1 eighty percent of the raw materials consumed in the production
4 2 of distilled spirits are Iowa=grown.
4 3 The bill provides that a manufacturer shall not sell more
4 4 than 5,000 gallons of native distilled spirits on the premises
4 5 of the manufacturer, or in a retail establishment operated by
4 6 the manufacturer, annually. The bill specifies that unless a
4 7 manufacturer has obtained a class "B" native distilled spirits
4 8 permit, the manufacturer shall not allow native distilled
4 9 spirits sold to be consumed upon the premises of the
4 10 manufacturer, but that prior to sale they may be sampled on
4 11 the premises where made, when no charge is made for the
4 12 sampling.
4 13 The bill provides for two new permits applicable to native
4 14 distilled spirits, both requiring a fee of $25 for initial
4 15 issuance and annual renewal. A class "A" native distilled
4 16 spirits permit allows a manufacturer to sell, keep, or offer
4 17 for sale the manufacturer's native distilled spirits, and a
4 18 class "B" native distilled spirits permit allows a
4 19 manufacturer to sell native distilled spirits at retail for
4 20 consumption on the premises of the manufacturing facility, or
4 21 in a retail establishment operated by the manufacturer. The
4 22 bill provides that a manufacturer may be granted not more than
4 23 one class "B" native distilled spirits permit.
4 24 The bill provides that a "manufacturer" of native distilled
4 25 spirits includes only those persons who process in Iowa the
4 26 Iowa=grown raw materials consumed in the production of
4 27 distilled spirits by the person. The bill also provides that
4 28 the sale of native distilled spirits to the alcoholic
4 29 beverages division for wholesale disposition and sale by the
4 30 division shall be subject to the requirements of Code chapter
4 31 123 relating to liquor sales and distribution by the division.
4 32 The bill provides that a manufacturer of native distilled
4 33 spirits is not considered a manufacturer pursuant to Code
4 34 sections 123.41 and 123.43, which require a license allowing
4 35 the manufacture, storage, and wholesale disposition and sale
5 1 of alcoholic liquors to the division and to customers outside
5 2 of the state.
5 3 The bill makes conforming changes to provisions in Code
5 4 chapter 123.
5 5 LSB 2200HH 81
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