S.F. _____ H.F. _____ Section 1. NEW SECTION . 123.146 Importation of beer for 1 personal use. 2 Except as otherwise provided in this chapter, a person shall 3 not import beer. However, an individual of legal age may 4 import into the state without a certificate, permit, or license 5 an amount of beer not to exceed two and one-quarter gallons 6 per calendar month that the individual personally obtained 7 outside the state or, in the case of beer personally obtained 8 outside the United States, a quantity which does not exceed 9 the amount allowed by federal law governing the importation 10 of alcoholic beverages into the United States for personal 11 consumption. Beer imported pursuant to this section shall be 12 for personal consumption in a private home or other private 13 accommodation and only if the beer is not sold, exchanged, 14 bartered, dispensed, or given in consideration of purchase for 15 any property or services or in evasion of the requirements of 16 this chapter. 17 Sec. 2. Section 123.171, Code 2016, is amended to read as 18 follows: 19 123.171 Wine certificate, permit, or license required —— 20 exception for personal use . 21 1. A person shall not cause the manufacture, importation, 22 or sale of wine in this state unless a certificate or permit 23 as provided in this subchapter , or a liquor control license as 24 provided in subchapter I of this chapter , is first obtained 25 which authorizes that manufacture, importation, or sale. 26 2. Notwithstanding subsection 1, an individual of legal 27 age may import into the state without a certificate, permit, 28 or license an amount of wine not to exceed eighteen liters 29 per calendar month that the individual personally obtained 30 outside the state or, in the case of wine personally obtained 31 outside the United States, a quantity which does not exceed 32 the amount allowed by federal law governing the importation 33 of alcoholic beverages into the United States for personal 34 consumption. Wine imported pursuant to this subsection shall 35 -1- LSB 5252XD (6) 86 ec/nh 1/ 6

S.F. _____ H.F. _____ be for personal consumption in a private home or other private 1 accommodation and only if the wine is not sold, exchanged, 2 bartered, dispensed, or given in consideration of purchase for 3 any property or services or in evasion of the requirements of 4 this chapter. 5 Sec. 3. Section 123.183, subsections 1 and 3, Code 2016, are 6 amended to read as follows: 7 1. In addition to the annual permit fee to be paid by each 8 class “A” wine permittee, a wine gallonage tax shall be levied 9 and collected from each class “A” wine permittee on all wine 10 manufactured for sale and sold in this state at wholesale and 11 on all wine imported into this state for sale at wholesale 12 and sold in this state at wholesale. A wine gallonage tax 13 shall also be levied and collected on the direct shipment of 14 wine pursuant to section 123.187 and on the personal shipment 15 of wine pursuant to section 123.188 . The rate of the wine 16 gallonage tax is one dollar and seventy-five cents for each 17 wine gallon. The same rate shall apply for the fractional 18 parts of a wine gallon. The wine gallonage tax shall not 19 be levied or collected on wine sold by one class “A” wine 20 permittee to another class “A” wine permittee. 21 3. The revenue collected from the wine gallonage tax on 22 wine imported into this state for sale at wholesale and sold in 23 this state at wholesale, and on wine subject to direct shipment 24 as provided in section 123.187 by a wine manufacturer licensed 25 or permitted pursuant to laws regulating alcoholic beverages 26 in another state, and on wine subject to personal shipment as 27 provided in section 123.188, shall be deposited in the beer and 28 liquor control fund created in section 123.17 . 29 Sec. 4. Section 123.184, Code 2016, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 3. Each personal wine shipment license 32 holder shall make a report under oath to the division 33 electronically, or in a manner prescribed by the administrator, 34 on or before the tenth day of the calendar months of June and 35 -2- LSB 5252XD (6) 86 ec/nh 2/ 6

S.F. _____ H.F. _____ December, showing the exact number of gallons of wine and 1 fractional parts of gallons purchased and shipped pursuant to 2 section 123.188 during the preceding six-month calendar period. 3 The report shall also state whatever reasonable additional 4 information the administrator requires. The license holder 5 at the time of filing this report shall pay to the division 6 the amount of tax due at the rate fixed in section 123.183. 7 A penalty of ten percent of this amount shall be assessed 8 and collected if the report required to be filed pursuant to 9 this subsection is not filed and the tax paid within the time 10 required by this subsection. 11 Sec. 5. NEW SECTION . 123.188 Personal wine shipment 12 license. 13 1. An individual of legal age desiring to import wine that 14 has not been personally obtained or is in excess of the amount 15 provided for in section 123.171, subsection 2, shall first make 16 application for and shall be issued a personal wine shipment 17 license by the administrator for that purpose. 18 2. Except as otherwise provided in this chapter, a personal 19 wine shipment license shall be issued to an individual who 20 complies with all of the following: 21 a. Submits an application for the license electronically, or 22 in a manner prescribed by the administrator, which shall state 23 under oath: 24 (1) The name and place of residence of the applicant. 25 (2) That the applicant is a citizen of the state of Iowa. 26 (3) That the applicant is a person of good moral character 27 as defined by this chapter. 28 b. Submits a license fee of one hundred dollars payable to 29 the division. 30 3. A license issued pursuant to this section may be renewed 31 annually by resubmitting an application as required by this 32 section, accompanied by the one hundred dollar license fee. 33 4. The personal shipment of wine to a license holder 34 pursuant to this section is subject to the following 35 -3- LSB 5252XD (6) 86 ec/nh 3/ 6

S.F. _____ H.F. _____ requirements and restrictions: 1 a. The wine shall only be shipped to the license holder at 2 the address listed on the application. 3 b. The wine shall be for the license holder’s personal 4 use and consumption in a private home or other private 5 accommodation and only if the wine is not sold, exchanged, 6 bartered, dispensed, or given in consideration of purchase for 7 any property or services or in evasion of the requirements of 8 this chapter. 9 c. The wine shall be lawfully obtained. 10 d. The wine shall be properly registered with the federal 11 alcohol and tobacco tax and trade bureau. 12 e. The wine shall not be shipped directly from a 13 manufacturer or wholesaler licensed or permitted pursuant to 14 the laws regulating alcoholic beverages in this state or any 15 other jurisdiction. 16 f. All containers of wine shipped pursuant to this section 17 shall be conspicuously labeled with the words “CONTAINS 18 ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR 19 DELIVERY” or shall be conspicuously labeled with alternative 20 wording preapproved by the administrator. 21 g. All containers of wine shipped pursuant to this section 22 shall be shipped by an alcohol carrier licensed as provided in 23 section 123.187, subsection 6. 24 5. a. In addition to the annual license fee, each personal 25 wine shipment license holder shall remit to the division an 26 amount equivalent to the wine gallonage tax on wine subject 27 to direct shipment at the rate specified in section 123.183 28 for deposit as provided in section 123.183, subsection 3. The 29 amount shall be remitted at the time and in the manner provided 30 in section 123.184, subsection 3, and the ten percent penalty 31 specified therein shall be applicable. 32 b. Shipment of wine pursuant to this section does not 33 require a refund value for beverage container control purposes 34 under chapter 455C. 35 -4- LSB 5252XD (6) 86 ec/nh 4/ 6

S.F. _____ H.F. _____ 6. Each personal wine shipment license holder shall be 1 deemed to have consented to the jurisdiction of the division or 2 any other agency or court in this state concerning enforcement 3 of this section and any related laws, rules, or regulations. 4 Each license holder shall permit the division to perform an 5 audit of shipping records upon request. 6 7. A personal wine shipment license does not exempt 7 the holder from federal requirements for shipments of wine 8 originating outside the United States. 9 8. A violation of this section shall subject a license 10 holder to the penalty provisions of section 123.39. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill concerns the personal importation of wine and beer 15 into this state. 16 New Code section 123.146 allows an individual of legal age 17 to personally obtain outside the state and import into the 18 state for personal use a certain amount of beer without a 19 certificate, permit, or license. The bill limits the amount of 20 beer to be imported for personal use to an amount of beer not to 21 exceed two and one-quarter gallons per calendar month or, in 22 the case of beer personally obtained outside the United States, 23 a quantity which does not exceed the amount allowed by federal 24 law governing the importation of alcoholic beverages into the 25 United States for personal consumption. 26 Code section 123.171 is amended to allow an individual of 27 legal age to personally obtain outside the state and import 28 into the state for personal use a certain amount of wine 29 without a certificate, permit, or license. The bill limits the 30 amount of wine to be imported for personal use to an amount 31 of wine not to exceed 18 liters per calendar month or, in the 32 case of wine personally obtained outside the United States, a 33 quantity which does not exceed the amount allowed by federal 34 law governing the importation of alcoholic beverages into the 35 -5- LSB 5252XD (6) 86 ec/nh 5/ 6

S.F. _____ H.F. _____ United States for personal consumption. 1 New Code section 123.188 establishes a personal wine 2 shipment license for an individual desiring to import wine 3 into the state for personal use in an amount in excess of the 4 amount allowed under Code section 123.171 as amended by the 5 bill. The bill provides for an annual license fee of $100 for 6 this new license. The bill provides that wine shipped pursuant 7 to this new license shall be shipped only to the address of the 8 license holder, shall be for personal use, shall be lawfully 9 obtained and registered with the federal alcohol and tobacco 10 tax and trade bureau, shall not be shipped directly from a 11 manufacturer or wholesaler, and shall be subject to certain 12 labeling and shipping requirements. The bill requires the 13 license holder to pay the wine gallonage tax on wine shipped. 14 Penalties applicable to a wine manufacturer with a wine direct 15 shipper license are also made applicable to a holder of the new 16 license. Code sections 123.183 and 123.184, concerning the 17 wine gallonage tax, are amended to provide for the requirement 18 to pay the wine gallonage tax and to report on the gallons of 19 wine sold and shipped by a holder of a personal wine shipment 20 license. 21 -6- LSB 5252XD (6) 86 ec/nh 6/ 6