Senate File 230 - Introduced SENATE FILE 230 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1021) A BILL FOR An Act relating to manufacturers of native distilled spirits 1 and beer. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1087SV (1) 88 ec/rn
S.F. 230 Section 1. Section 123.43A, subsection 6, Code 2019, is 1 amended to read as follows: 2 6. Notwithstanding any provision of this chapter to the 3 contrary or the fact that a person is the holder of a class 4 “A” native distilled spirits license, a native distillery 5 which, combining all production facilities of the business, 6 produces and manufactures not more than one hundred thousand 7 proof gallons of native distilled spirits on an annual basis 8 may sell those native distilled spirits manufactured on the 9 premises of the native distillery for consumption on the 10 premises by applying for a class “C” native distilled spirits 11 liquor control license as provided in section 123.30 . A native 12 distillery may be granted not more than one class “C” native 13 distilled spirits liquor control license. All native distilled 14 spirits sold by a native distillery for on-premises consumption 15 shall be purchased from a class “E” liquor control licensee. A 16 manufacturer of native distilled spirits may be issued a class 17 “C” native distilled spirits liquor control license regardless 18 of whether the manufacturer is also a manufacturer of beer 19 pursuant to a class “A” beer permit or a manufacturer of native 20 wine pursuant to a class “A” wine permit. A native distillery 21 engaged in the business of manufacturing beer shall not be 22 issued a class “C” native distilled spirits liquor control 23 license. 24 Sec. 2. Section 123.45, subsection 2, Code 2019, is amended 25 to read as follows: 26 2. However, a person engaged in the wholesaling of beer or 27 wine may sell only disposable glassware, which is constructed 28 of paper, paper laminated, or plastic materials and designed 29 primarily for personal consumption on a one-time usage 30 basis, to retailers for use within the premises of licensed 31 establishments, for an amount which is greater than or equal 32 to an amount which represents the greater of either the amount 33 paid for the disposable glassware by the supplier or the amount 34 paid for the disposable glassware by the wholesaler. Also, a 35 -1- LSB 1087SV (1) 88 ec/rn 1/ 3
S.F. 230 person engaged in the business of manufacturing beer may sell 1 beer at retail for consumption on or off the premises of the 2 manufacturing facility and, notwithstanding any other provision 3 of this chapter or the fact that a person is the holder of a 4 class “A” beer permit, may be granted not more than one class 5 “B” beer permit as defined in section 123.124 for that purpose 6 regardless of whether that person is also a manufacturer 7 of native distilled spirits pursuant to a class “A” native 8 distilled spirits license . 9 Sec. 3. Section 123.141, Code 2019, is amended to read as 10 follows: 11 123.141 Keeping liquor where beer is sold. 12 No alcoholic liquor for beverage purposes shall be used, 13 or kept for any purpose in the place of business of class “B” 14 beer permittees, or on the premises of such class “B” beer 15 permittees, at any time. A violation of any provision of 16 this section shall be grounds for suspension or revocation 17 of the beer permit pursuant to section 123.50, subsection 18 3 . This section shall not apply in any manner or in any way 19 to the premises of any hotel or motel for which a class “B” 20 beer permit has been issued, other than that part of such 21 premises regularly used by the hotel or motel for the principal 22 purpose of selling beer or food to the general public, to a 23 premises for which both a class “B” beer permit and a class 24 “A” native distilled spirits license have been issued, or to 25 keep a pharmacy from having alcohol in stock for medicinal and 26 compounding purposes. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to the authority of manufacturers of beer 31 and manufacturers of native distilled spirits. 32 Code section 123.43A, concerning native distilleries, is 33 amended to authorize a manufacturer of native distilled spirits 34 to be issued a class “C” native distilled spirits liquor 35 -2- LSB 1087SV (1) 88 ec/rn 2/ 3
S.F. 230 control license regardless of whether the manufacturer is also 1 a manufacturer of beer. 2 Code section 123.45, concerning limitations on business 3 interests, is amended to provide that a manufacturer of beer 4 may be granted one class “B” beer permit for the purpose 5 of selling beer at retail for consumption on or off the 6 premises of the manufacturing facility regardless of whether 7 the manufacturer is also a manufacturer of native distilled 8 spirits. 9 Code section 123.141, concerning keeping liquor where beer 10 is sold, is amended to allow alcoholic liquor for beverage 11 purposes to be used or kept at a premises for which both a class 12 “B” beer permit and class “A” native distilled spirits license 13 have been issued. 14 -3- LSB 1087SV (1) 88 ec/rn 3/ 3