HF 2314 (LSB 5848YH (5) 89)

HOUSE FILE 2314

BY  FRY

A BILL FOR

An Act relating to the authority granted native distilleries.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.30, subsection 3, paragraph c, subparagraph (3), Code 2022, is amended to read as follows:
   (3)  A class “C” native distilled spirits liquor control license may be issued to a native distillery but shall be issued in the name of the individuals who actually own the business and shall only be issued to a native distillery which, combining all production facilities of the business, produces and manufactures not more than one hundred thousand proof gallons of distilled spirits on an annual basis. The license shall authorize the holder to sell native distilled spirits manufactured on the premises of the native distillery, beer manufactured by a native brewery, and native wine, to patrons by the individual drink for consumption on the premises and. The license shall also authorize the holder to sell mixed drinks or cocktails for consumption off the premises subject to the requirements of section 123.49, subsection 2, paragraph “d”. All native distilled spirits sold by a native distillery for on-premises consumption and mixed drinks or cocktails sold for consumption off the premises shall be purchased from a class “E” liquor control licensee in original unopened containers.
    Sec. 2.  Section 123.43A, subsections 2 and 6, Code 2022, are amended to read as follows:
   2.  A native distillery shall not sell more than one and one-half nine liters per person per day, of native distilled spirits on the premises of the native distillery. However, a native distillery which, combining all production facilities of the business, produces and manufactures not more than one hundred thousand proof gallons of native distilled spirits on an annual basis, may sell not more than nine liters per person per day, of native distilled spirits. In addition, a native distillery shall not directly ship native distilled spirits for sale at retail. The native distillery shall maintain records of individual purchases of native distilled spirits at the native distillery for three years.
   6.  Notwithstanding any provision of this chapter to the contrary or the fact that a person is the holder of a class “A” native distilled spirits license, a native distillery which, combining all production facilities of the business, produces and manufactures not more than one hundred thousand proof gallons of native distilled spirits on an annual basis may sell those beer manufactured by a native brewery, native wine, and native distilled spirits manufactured on the premises of the native distillery for consumption on the premises by applying for a class “C” native distilled spirits liquor control license as provided in section 123.30. A native distillery may be granted not more than two class “C” native distilled spirits liquor control licenses. All native distilled spirits sold by a native distillery for on-premises consumption and mixed drinks or cocktails sold for consumption off the premises shall be purchased from a class “E” liquor control licensee. A manufacturer of native distilled spirits may be issued a class “C” native distilled spirits liquor control license regardless of whether the manufacturer is also a manufacturer of beer pursuant to a class “A” beer permit or a manufacturer of native wine pursuant to a class “A” wine permit.
    Sec. 3.  Section 137F.1, subsection 8, Code 2022, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  o.  Premises covered by a current class “C” native distilled spirits liquor control license as provided in chapter 123.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to native distilleries.
   Code section 123.30 is amended to allow a holder of a class “C” native distilled spirits liquor control license to sell beer manufactured by a native brewery and native wine for consumption on the premises of the licensee. The bill also allows a holder of a class “C” native distilled spirits liquor control license to sell native distilled spirits regardless of whether the spirits were manufactured on the premises of the native distillery. A corresponding change is made in Code section 123.43A concerning native distilleries.
   Code section 123.43A is also amended to allow a native distillery, regardless of how much native distilled spirits the distillery produces, the ability to sell not more than nine liters per person per day of native distilled spirits on the premises of the native distillery and to apply for a class “C” native distilled spirits liquor control license. Under current law, a native distillery that produces and manufactures more than 100,000 proof gallons of native distilled spirits on an annual basis may sell no more than 1.5 liters per person per day and is not authorized to apply for a class “C” native distilled spirits liquor control license.
   Code section 137F.1 is amended to provide that a food establishment, subject to licensure under Code chapter 137, does not include premises covered by a current class “C” native distilled spirits liquor control license.