H.F. 2108 Section 1. Section 123.28, subsection 5, Code 2022, is 1 amended to read as follows: 2 5. This section does not affect the right of a liquor 3 control license holder to purchase, possess, or transport 4 alcoholic liquors subject to this chapter . In addition, this 5 section shall not impact the direct shipment of alcoholic 6 liquor as regulated by section 123.42A. 7 Sec. 2. Section 123.32, subsection 1, paragraph b, Code 8 2022, is amended by adding the following new subparagraph: 9 NEW SUBPARAGRAPH . (4A) An alcoholic liquor direct shipper 10 permit as provided in section 123.42A. 11 Sec. 3. Section 123.32, subsection 1, paragraph b, 12 subparagraph (11), Code 2022, is amended to read as follows: 13 (11) A wine An alcoholic beverage carrier permit as provided 14 in section 123.188 . 15 Sec. 4. Section 123.41, subsection 1, Code 2022, is amended 16 to read as follows: 17 1. Each completed application to obtain or renew a 18 manufacturer’s license shall be submitted to the division 19 electronically, or in a manner prescribed by the administrator, 20 and shall be accompanied by a fee of three hundred fifty 21 dollars payable to the division. The administrator may in 22 accordance with this chapter grant and issue to a manufacturer 23 a manufacturer’s license, valid for a one-year period after 24 date of issuance, which shall allow the manufacture, storage, 25 and wholesale disposition and sale of alcoholic liquors to the 26 division and to customers outside of the state pursuant to the 27 laws of that jurisdiction . 28 Sec. 5. NEW SECTION . 123.42A Direct shipment of alcoholic 29 liquor —— permit and requirements. 30 1. An alcoholic liquor manufacturer licensed or permitted 31 pursuant to laws regulating alcoholic beverages in this state 32 or another state may apply for an alcoholic liquor direct 33 shipper permit, as provided in this section. For the purposes 34 of this section, an “alcoholic liquor manufacturer” means a 35 -1- LSB 5262YH (6) 89 ec/rn 1/ 7

H.F. 2108 person who distills, blends, bottles, handles, or prepares 1 alcoholic liquor. 2 2. a. Only an alcoholic liquor manufacturer that holds 3 an alcoholic liquor direct shipper permit issued pursuant to 4 this section shall sell alcoholic liquor at retail for direct 5 shipment to any person within this state. This section shall 6 not prohibit an authorized retail licensee or permittee from 7 delivering alcoholic liquor pursuant to section 123.46A. 8 b. An alcoholic liquor manufacturer applying for an 9 alcoholic liquor direct shipper permit shall submit an 10 application for the permit electronically, or in a manner 11 prescribed by the administrator, accompanied by a true copy of 12 the manufacturer’s current alcoholic beverage license or permit 13 issued by the state where the manufacturer is primarily located 14 and a copy of the manufacturer’s basic permit issued by the 15 alcohol and tobacco tax and trade bureau of the United States 16 department of the treasury. 17 c. An application submitted pursuant to paragraph “b” shall 18 be accompanied by a permit fee in the amount of twenty-five 19 dollars. 20 d. An application submitted pursuant to paragraph “b” 21 shall also be accompanied by a bond in the amount of five 22 thousand dollars in the form prescribed and furnished by the 23 division with good and sufficient sureties to be approved by 24 the division conditioned upon compliance with this chapter. 25 e. A permit issued pursuant to this section may be 26 renewed annually by submitting a renewal application with the 27 administrator in a manner prescribed by the administrator, 28 accompanied by the twenty-five dollar permit fee. 29 3. The direct shipment of alcoholic liquor pursuant to this 30 section shall be subject to the following requirements and 31 restrictions: 32 a. Alcoholic liquor shall only be shipped to a resident of 33 this state who is at least twenty-one years of age, for the 34 resident’s personal use and consumption and not for resale. 35 -2- LSB 5262YH (6) 89 ec/rn 2/ 7

H.F. 2108 b. Alcoholic liquor subject to direct shipping shall be 1 properly registered with the federal alcohol and tobacco tax 2 and trade bureau, and manufactured on the licensed premises of 3 the alcoholic liquor direct shipper permittee. 4 c. Alcoholic liquor subject to direct shipping shall be 5 properly registered with the division. Products which are not 6 listed for bailment must be registered electronically with the 7 division for direct shipping. This registration will include 8 the name of the manufacturer, the name of the brand, the 9 standard of fill, the wholesale price, and other information 10 as requested by the division. 11 d. All containers of alcoholic liquor shipped directly to a 12 resident of this state shall be conspicuously labeled with the 13 words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER 14 REQUIRED FOR DELIVERY” or shall be conspicuously labeled with 15 alternative wording preapproved by the administrator. 16 e. All containers of alcoholic liquor shipped directly 17 to a resident of this state shall be shipped by a holder of 18 an alcoholic beverage carrier permit as provided in section 19 123.188. 20 f. Shipment of alcoholic liquor pursuant to this subsection 21 does not require a refund value for beverage container control 22 purposes under chapter 455C. 23 4. An alcoholic liquor direct shipper permittee shipping 24 alcoholic liquor to this state shall remit the following amount 25 to the division in a manner as directed by the division: 26 a. For alcoholic liquor that is listed for sale by the 27 division, an amount equivalent to fifty percent of the 28 wholesale price paid by the division for the alcoholic liquor 29 as provided in section 123.24. 30 b. For alcoholic liquor that is not listed for sale 31 by the division, an amount equivalent to fifty percent of 32 the wholesale price as registered with the division under 33 subsection 3. 34 5. Each alcoholic liquor direct shipper permittee shall 35 -3- LSB 5262YH (6) 89 ec/rn 3/ 7

H.F. 2108 make a report under oath to the division electronically, or 1 in a manner prescribed by the administrator, on or before 2 the tenth day of each month, which includes the following 3 information: 4 a. The products and quantities shipped directly to residents 5 of this state in the preceding month. 6 b. The name and address of the individuals to whom the 7 alcoholic liquor was sold in each sale. 8 c. The wholesale price of the alcoholic liquor sold. 9 d. The purchase price of the alcoholic liquor sold and 10 the amount of taxes charged to the individual purchasing the 11 alcoholic liquor. 12 e. The alcoholic beverage carrier permittee who delivered 13 the shipment. 14 6. An alcoholic liquor direct shipper permittee shall be 15 deemed to have consented to the jurisdiction of the division or 16 any other agency or court in this state concerning enforcement 17 of this section and any related laws, rules, or regulations. A 18 permit holder shall allow the division to perform an audit of 19 shipping records upon request. 20 7. A violation of this section shall subject the permittee 21 to the general penalties provided in this chapter and shall 22 constitute grounds for imposition of a civil penalty or 23 suspension or revocation of the permit pursuant to section 24 123.39. 25 Sec. 6. Section 123.46A, subsection 5, Code 2022, is amended 26 to read as follows: 27 5. Nothing in this section shall impact the direct shipment 28 of alcoholic liquor as regulated by section 123.42A or the 29 direct shipment of wine as regulated by section 123.187 . 30 Sec. 7. Section 123.187, subsection 3, paragraph d, Code 31 2022, is amended to read as follows: 32 d. All containers of wine shipped directly to a resident of 33 this state shall be shipped by a holder of a wine an alcoholic 34 beverage carrier permit as provided in section 123.188 . 35 -4- LSB 5262YH (6) 89 ec/rn 4/ 7

H.F. 2108 Sec. 8. Section 123.188, subsections 1, 2, and 4, Code 2022, 1 are amended to read as follows: 2 1. A person desiring to deliver alcoholic liquor subject 3 to direct shipment within this state pursuant to section 4 123.42A and wine subject to direct shipment within this state 5 pursuant to section 123.187 shall submit an application for a 6 wine an alcoholic beverage carrier permit electronically, or 7 in a manner prescribed by the administrator, which shall be 8 accompanied by a fee in the amount of one hundred dollars. 9 2. The administrator may in accordance with this chapter 10 issue a wine an alcoholic beverage carrier permit which shall 11 be valid for one year from the date of issuance unless it is 12 sooner suspended or revoked for a violation of this chapter . 13 4. The delivery of alcoholic liquor and wine pursuant to 14 this section shall be subject to the following requirements and 15 restrictions: 16 a. A wine An alcoholic beverage carrier permittee shall not 17 deliver alcoholic liquor or wine to any person under twenty-one 18 years of age, or to any person who either is or appears to be in 19 an intoxicated state or condition. 20 b. A wine An alcoholic beverage carrier permittee shall 21 obtain valid proof of identity and age prior to delivery, 22 and shall obtain the signature of an adult as a condition of 23 delivery. 24 c. A wine An alcoholic beverage carrier permittee shall 25 maintain records of alcoholic liquor and wine shipped which 26 include the permit number and name of the alcoholic liquor 27 or wine manufacturer, quantity of alcoholic liquor and wine 28 shipped, recipient’s name and address, and an electronic or 29 paper form of signature from the recipient of the alcoholic 30 liquor and wine. Records shall be submitted to the division 31 on a monthly basis in a form and manner to be determined by the 32 division. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -5- LSB 5262YH (6) 89 ec/rn 5/ 7

H.F. 2108 the explanation’s substance by the members of the general assembly. 1 This bill allows for the direct shipment of alcoholic liquor 2 within the state. 3 New Code section 123.42A provides for the direct shipment of 4 alcoholic liquor and provides for an alcoholic liquor direct 5 shipper permit. Provisions governing the direct shipment 6 of wine and the wine direct shipper permit are generally 7 made applicable to the new Code section providing for the 8 direct shipment of alcoholic liquor. In addition to these 9 requirements, the new Code section requires all alcoholic 10 liquor subject to direct shipping to be properly registered 11 with the alcoholic beverages division and that products which 12 are not listed for bailment must be registered to include 13 information on the name of the manufacturer, the name of the 14 brand, the standard of fill, the wholesale price, and other 15 information as requested by the division. The new Code section 16 also requires each alcoholic liquor direct shipper permittee to 17 make a monthly report to the alcoholic beverages division that 18 lists the products and quantities shipped directly to residents 19 of this state in the preceding month, the name and address of 20 the individuals to whom the alcoholic liquor was sold in each 21 sale, the wholesale price of the alcoholic liquor sold, the 22 purchase price and taxes charged of the alcoholic liquor sold, 23 and the alcoholic beverage carrier permittee who delivered 24 each shipment. Finally, the new Code section provides that an 25 alcoholic liquor direct shipper permittee shall remit an amount 26 to the alcoholic beverages division depending on whether the 27 alcoholic liquor shipped is listed for sale by the division. 28 If the alcoholic liquor is listed for sale by the division, the 29 permittee shall remit to the division an amount equivalent to 30 50 percent of the wholesale price paid by the division for the 31 alcoholic liquor. If the alcoholic liquor is not listed for 32 sale by the division, the permittee shall remit to the division 33 an amount equivalent to 50 percent of the wholesale price of 34 the alcoholic liquor as registered with the division. 35 -6- LSB 5262YH (6) 89 ec/rn 6/ 7