House Study Bill 573 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON VANDER LINDEN) A BILL FOR An Act permitting the direct shipment of wine by a retailer of 1 another state and making fees and penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5624YC (4) 86 ec/nh
H.F. _____ Section 1. Section 123.183, subsection 3, Code 2016, is 1 amended to read as follows: 2 3. The revenue collected from the wine gallonage tax on wine 3 imported into this state for sale at wholesale and sold in this 4 state at wholesale, and on wine subject to direct shipment as 5 provided in section 123.187 by a wine manufacturer or eligible 6 wine retailer licensed or permitted pursuant to laws regulating 7 alcoholic beverages in another state, shall be deposited in the 8 beer and liquor control fund created in section 123.17 . 9 Sec. 2. Section 123.187, subsection 1, Code 2016, is amended 10 to read as follows: 11 1. a. A wine manufacturer licensed or permitted pursuant to 12 laws regulating alcoholic beverages in this state or another 13 state or an eligible wine retailer may apply for a wine direct 14 shipper license, as provided in this section . 15 b. For the purposes of this section , a : 16 (1) “Eligible wine retailer” means a person licensed or 17 permitted pursuant to laws regulating alcoholic beverages in 18 another state to sell and ship wine out of the state. 19 (2) “wine “Wine manufacturer” means a person who processes 20 the fruit, vegetables, dandelions, clover, honey, or any 21 combination of these ingredients, by fermentation into wines. 22 Sec. 3. Section 123.187, subsection 2, paragraphs a and c, 23 Code 2016, are amended to read as follows: 24 a. The administrator shall issue a wine direct shipper 25 license to a wine manufacturer or eligible wine retailer who 26 submits an application for the license electronically, or in a 27 manner prescribed by the administrator, accompanied by a true 28 copy of the manufacturer’s or eligible wine retailer’s current 29 alcoholic beverage license or permit and , if applicable, a copy 30 of the manufacturer’s winery license issued by the federal 31 alcohol and tobacco tax and trade bureau. 32 c. An application submitted pursuant to paragraph “a” 33 shall also be accompanied by a bond in the amount of five 34 thousand dollars in the form prescribed and furnished by the 35 -1- LSB 5624YC (4) 86 ec/nh 1/ 2
H.F. _____ division with good and sufficient sureties to be approved by 1 the division conditioned upon compliance with this chapter . 2 However, a wine manufacturer or eligible wine retailer that 3 has submitted a bond pursuant to section 123.175, subsection 4 3 , shall not be required to provide a bond as provided in this 5 paragraph. 6 Sec. 4. Section 123.187, subsection 6, paragraph c, Code 7 2016, is amended to read as follows: 8 c. An alcohol carrier licensee shall maintain records of 9 wine shipped which include the license number and name of 10 the wine manufacturer or eligible wine retailer , quantity of 11 wine shipped, recipient’s name and address, and an electronic 12 or paper form of signature from the recipient of the wine. 13 Records shall be submitted to the division on a monthly basis 14 in a form and manner to be determined by the division by rule. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill allows a wine retailer licensed or permitted 19 pursuant to laws regulating alcoholic beverages in another 20 state to sell and ship wine out of the state to obtain a wine 21 direct shipper license pursuant to Code section 123.187 in 22 the same manner as a wine manufacturer. The annual fee for 23 this license is $25. A wine direct shipper license allows a 24 licensee to ship wine to a resident of this state who is at 25 least 21 years of age, for the resident’s personal use and 26 consumption and not for resale. 27 -2- LSB 5624YC (4) 86 ec/nh 2/ 2