HSB 592 (LSB 5252XD (6) 86)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF COMMERCE/ALCOHOLIC BEVERAGES DIVISION BILL)

A BILL FOR

An Act providing for the personal importation of wine and beer, and making taxes and penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  123.146  Importation of beer for personal use.
   Except as otherwise provided in this chapter, a person shall not import beer. However, an individual of legal age may import into the state without a certificate, permit, or license an amount of beer not to exceed two and one-quarter gallons per calendar month that the individual personally obtained outside the state or, in the case of beer personally obtained outside the United States, a quantity which does not exceed the amount allowed by federal law governing the importation of alcoholic beverages into the United States for personal consumption. Beer imported pursuant to this section shall be for personal consumption in a private home or other private accommodation and only if the beer is not sold, exchanged, bartered, dispensed, or given in consideration of purchase for any property or services or in evasion of the requirements of this chapter.
    Sec. 2.  Section 123.171, Code 2016, is amended to read as follows:
   123.171  Wine certificate, permit, or license required —— exception for personal use.

   1.  A person shall not cause the manufacture, importation, or sale of wine in this state unless a certificate or permit as provided in this subchapter, or a liquor control license as provided in subchapter I of this chapter, is first obtained which authorizes that manufacture, importation, or sale.
   2.  Notwithstanding subsection 1, an individual of legal age may import into the state without a certificate, permit, or license an amount of wine not to exceed eighteen liters per calendar month that the individual personally obtained outside the state or, in the case of wine personally obtained outside the United States, a quantity which does not exceed the amount allowed by federal law governing the importation of alcoholic beverages into the United States for personal consumption. Wine imported pursuant to this subsection shall be for personal consumption in a private home or other private accommodation and only if the wine is not sold, exchanged, bartered, dispensed, or given in consideration of purchase for any property or services or in evasion of the requirements of this chapter.
    Sec. 3.  Section 123.183, subsections 1 and 3, Code 2016, are amended to read as follows:
   1.  In addition to the annual permit fee to be paid by each class “A” wine permittee, a wine gallonage tax shall be levied and collected from each class “A” wine permittee on all wine manufactured for sale and sold in this state at wholesale and on all wine imported into this state for sale at wholesale and sold in this state at wholesale. A wine gallonage tax shall also be levied and collected on the direct shipment of wine pursuant to section 123.187 and on the personal shipment of wine pursuant to section 123.188. The rate of the wine gallonage tax is one dollar and seventy-five cents for each wine gallon. The same rate shall apply for the fractional parts of a wine gallon. The wine gallonage tax shall not be levied or collected on wine sold by one class “A” wine permittee to another class “A” wine permittee.
   3.  The revenue collected from the wine gallonage tax on wine imported into this state for sale at wholesale and sold in this state at wholesale, and on wine subject to direct shipment as provided in section 123.187 by a wine manufacturer licensed or permitted pursuant to laws regulating alcoholic beverages in another state, and on wine subject to personal shipment as provided in section 123.188, shall be deposited in the beer and liquor control fund created in section 123.17.
    Sec. 4.  Section 123.184, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  Each personal wine shipment license holder shall make a report under oath to the division electronically, or in a manner prescribed by the administrator, on or before the tenth day of the calendar months of June and December, showing the exact number of gallons of wine and fractional parts of gallons purchased and shipped pursuant to section 123.188 during the preceding six-month calendar period. The report shall also state whatever reasonable additional information the administrator requires. The license holder at the time of filing this report shall pay to the division the amount of tax due at the rate fixed in section 123.183. A penalty of ten percent of this amount shall be assessed and collected if the report required to be filed pursuant to this subsection is not filed and the tax paid within the time required by this subsection.
    Sec. 5.  NEW SECTION.  123.188  Personal wine shipment license.
   1.  An individual of legal age desiring to import wine that has not been personally obtained or is in excess of the amount provided for in section 123.171, subsection 2, shall first make application for and shall be issued a personal wine shipment license by the administrator for that purpose.
   2.  Except as otherwise provided in this chapter, a personal wine shipment license shall be issued to an individual who complies with all of the following:
   a.  Submits an application for the license electronically, or in a manner prescribed by the administrator, which shall state under oath:
   (1)  The name and place of residence of the applicant.
   (2)  That the applicant is a citizen of the state of Iowa.
   (3)  That the applicant is a person of good moral character as defined by this chapter.
   b.  Submits a license fee of one hundred dollars payable to the division.
   3.  A license issued pursuant to this section may be renewed annually by resubmitting an application as required by this section, accompanied by the one hundred dollar license fee.
   4.  The personal shipment of wine to a license holder pursuant to this section is subject to the following requirements and restrictions:
   a.  The wine shall only be shipped to the license holder at the address listed on the application.
   b.  The wine shall be for the license holder’s personal use and consumption in a private home or other private accommodation and only if the wine is not sold, exchanged, bartered, dispensed, or given in consideration of purchase for any property or services or in evasion of the requirements of this chapter.
   c.  The wine shall be lawfully obtained.
   d.  The wine shall be properly registered with the federal alcohol and tobacco tax and trade bureau.
   e.  The wine shall not be shipped directly from a manufacturer or wholesaler licensed or permitted pursuant to the laws regulating alcoholic beverages in this state or any other jurisdiction.
   f.  All containers of wine shipped pursuant to this section shall be conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” or shall be conspicuously labeled with alternative wording preapproved by the administrator.
   g.  All containers of wine shipped pursuant to this section shall be shipped by an alcohol carrier licensed as provided in section 123.187, subsection 6.
   5.  a.  In addition to the annual license fee, each personal wine shipment license holder shall remit to the division an amount equivalent to the wine gallonage tax on wine subject to direct shipment at the rate specified in section 123.183 for deposit as provided in section 123.183, subsection 3. The amount shall be remitted at the time and in the manner provided in section 123.184, subsection 3, and the ten percent penalty specified therein shall be applicable.
   b.  Shipment of wine pursuant to this section does not require a refund value for beverage container control purposes under chapter 455C.
   6.  Each personal wine shipment license holder shall be deemed to have consented to the jurisdiction of the division or any other agency or court in this state concerning enforcement of this section and any related laws, rules, or regulations. Each license holder shall permit the division to perform an audit of shipping records upon request.
   7.  A personal wine shipment license does not exempt the holder from federal requirements for shipments of wine originating outside the United States.
   8.  A violation of this section shall subject a license holder to the penalty provisions of section 123.39.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill concerns the personal importation of wine and beer into this state.
   New Code section 123.146 allows an individual of legal age to personally obtain outside the state and import into the state for personal use a certain amount of beer without a certificate, permit, or license. The bill limits the amount of beer to be imported for personal use to an amount of beer not to exceed two and one-quarter gallons per calendar month or, in the case of beer personally obtained outside the United States, a quantity which does not exceed the amount allowed by federal law governing the importation of alcoholic beverages into the United States for personal consumption.
   Code section 123.171 is amended to allow an individual of legal age to personally obtain outside the state and import into the state for personal use a certain amount of wine without a certificate, permit, or license. The bill limits the amount of wine to be imported for personal use to an amount of wine not to exceed 18 liters per calendar month or, in the case of wine personally obtained outside the United States, a quantity which does not exceed the amount allowed by federal law governing the importation of alcoholic beverages into the United States for personal consumption.
   New Code section 123.188 establishes a personal wine shipment license for an individual desiring to import wine into the state for personal use in an amount in excess of the amount allowed under Code section 123.171 as amended by the bill. The bill provides for an annual license fee of $100 for this new license. The bill provides that wine shipped pursuant to this new license shall be shipped only to the address of the license holder, shall be for personal use, shall be lawfully obtained and registered with the federal alcohol and tobacco tax and trade bureau, shall not be shipped directly from a manufacturer or wholesaler, and shall be subject to certain labeling and shipping requirements. The bill requires the license holder to pay the wine gallonage tax on wine shipped. Penalties applicable to a wine manufacturer with a wine direct shipper license are also made applicable to a holder of the new license. Code sections 123.183 and 123.184, concerning the wine gallonage tax, are amended to provide for the requirement to pay the wine gallonage tax and to report on the gallons of wine sold and shipped by a holder of a personal wine shipment license.