H.F. _____ Section 1. Section 123.3, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 33A. “Person engaged in the business of 3 manufacturing, bottling, or wholesaling alcoholic beverages, 4 wine, or beer” means a person issued a license or permit by 5 the division to manufacture, bottle, or wholesale alcoholic 6 beverages. 7 Sec. 2. Section 123.186, subsection 1, Code 2017, is amended 8 to read as follows: 9 1. The division shall adopt as rules the substance of the 10 federal regulations 27 C.F.R. pt. 6 , 27 C.F.R. pt. 8 , 27 C.F.R. 11 pt. 10 , and 27 C.F.R. pt. 11 as they relate to transactions 12 between manufacturers, wholesalers , and retailers. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to limitations on business interests 17 concerning alcoholic beverage control. 18 The bill defines the phrase “person engaged in the business 19 of manufacturing, bottling, or wholesaling alcoholic beverages, 20 wine, or beer” for purposes of Code chapter 123 as being 21 limited to only those persons who have been issued a permit 22 or license to manufacture, bottle, or wholesale alcoholic 23 beverages by the alcoholic beverages division. The phrase 24 defined occurs only in Code section 123.45 relating to 25 limitations on business interests. 26 Code section 123.186, concerning the adoption of federal 27 regulations by the alcoholic beverages division, is amended to 28 require that the division adopt as rules federal regulations 29 on tied-house, exclusive outlets, commercial bribery, 30 and consignment sales relating to transactions between 31 manufacturers, wholesalers, and retailers. Current law limits 32 the adoption of these federal regulations to those regulations 33 that relate only to transactions between wholesalers and 34 retailers. 35 -1- LSB 2310YC (1) 87 ec/nh 1/ 1