House
File
639
-
Introduced
HOUSE
FILE
639
BY
JONES
A
BILL
FOR
An
Act
authorizing
the
direct
shipment
and
delivery
of
native
1
distilled
spirits,
providing
for
fees,
and
making
penalties
2
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
123.3,
subsection
34,
Code
2021,
is
1
amended
to
read
as
follows:
2
34.
“Native
distilled
spirits”
means
spirits
fermented,
3
distilled,
manufactured
or,
for
a
period
of
two
years,
barrel
4
matured
on
the
licensed
premises
of
the
native
distillery
5
where
fermented,
distilled,
manufactured
or
matured.
“Native
6
distilled
spirits”
also
includes
blended
or
mixed
spirits
7
comprised
solely
of
spirits
fermented,
distilled,
manufactured
8
or,
for
a
period
of
two
years,
barrel
matured
at
a
native
9
distillery.
10
Sec.
2.
Section
123.32,
subsection
1,
paragraph
b,
Code
11
2021,
is
amended
by
adding
the
following
new
subparagraphs:
12
NEW
SUBPARAGRAPH
.
(12)
A
native
distilled
spirits
direct
13
shipper
permit
as
provided
in
section
123.43B.
14
NEW
SUBPARAGRAPH
.
(13)
A
native
distilled
spirits
carrier
15
permit
as
provided
in
section
123.43C.
16
Sec.
3.
Section
123.43A,
subsection
2,
Code
2021,
is
amended
17
to
read
as
follows:
18
2.
A
native
distillery
shall
not
sell
more
than
one
and
19
one-half
liters
per
person
per
day,
of
native
distilled
spirits
20
on
the
premises
of
the
native
distillery.
However,
a
native
21
distillery
which,
combining
all
production
facilities
of
the
22
business,
produces
and
manufactures
not
more
than
one
hundred
23
thousand
proof
gallons
of
native
distilled
spirits
on
an
annual
24
basis,
may
sell
not
more
than
nine
liters
per
person
per
day,
25
of
native
distilled
spirits.
In
addition,
a
Except
as
provided
26
in
section
123.43B,
a
native
distillery
shall
not
directly
27
ship
native
distilled
spirits
for
sale
at
retail.
The
native
28
distillery
shall
maintain
records
of
individual
purchases
of
29
native
distilled
spirits
at
the
native
distillery
for
three
30
years.
31
Sec.
4.
NEW
SECTION
.
123.43B
Direct
shipment
of
native
32
distilled
spirits
——
permit
and
requirements.
33
1.
A
manufacturer
of
native
distilled
spirits
licensed
or
34
permitted
pursuant
to
laws
regulating
alcoholic
beverages
in
35
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this
state
or
another
state
may
apply
for
a
direct
shipper
1
permit,
as
provided
in
this
section.
All
shipments
of
native
2
distilled
spirits
shall
be
made
through
the
state’s
wholesale
3
distribution
system.
4
2.
a.
Only
a
manufacturer
of
native
distilled
spirits
that
5
holds
a
direct
shipper
permit
issued
pursuant
to
this
section
6
shall
sell
native
distilled
spirits
at
retail
for
direct
7
shipment
to
any
person
within
this
state
or
another
state.
8
This
section
shall
not
prohibit
an
authorized
retail
licensee
9
or
permittee
from
delivering
native
distilled
spirits
pursuant
10
to
section
123.46A.
11
b.
A
manufacturer
of
native
distilled
spirits
applying
12
for
a
direct
shipper
permit
shall
submit
an
application
for
13
the
permit
electronically,
or
in
a
manner
prescribed
by
the
14
administrator,
accompanied
by
a
true
copy
of
the
manufacturer’s
15
current
alcoholic
beverage
license
or
permit
issued
by
the
16
state
where
the
manufacturer
is
primarily
located
and
a
copy
17
of
the
manufacturer’s
basic
permit
issued
by
the
alcohol
and
18
tobacco
tax
and
trade
bureau
of
the
United
States
department
of
19
the
treasury.
20
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
21
be
accompanied
by
a
permit
fee
in
the
amount
of
twenty-five
22
dollars.
23
d.
An
application
submitted
pursuant
to
paragraph
“b”
24
shall
also
be
accompanied
by
a
bond
in
the
amount
of
five
25
thousand
dollars
in
the
form
prescribed
and
furnished
by
the
26
division
with
good
and
sufficient
sureties
to
be
approved
by
27
the
division
conditioned
upon
compliance
with
this
chapter.
28
e.
A
permit
issued
pursuant
to
this
section
may
be
29
renewed
annually
by
submitting
a
renewal
application
with
the
30
administrator
in
a
manner
prescribed
by
the
administrator,
31
accompanied
by
the
twenty-five
dollar
permit
fee.
32
3.
The
direct
shipment
of
native
distilled
spirits
pursuant
33
to
this
section
shall
be
subject
to
the
following
requirements
34
and
restrictions:
35
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a.
All
native
distilled
spirits
shipped
directly
to
a
1
resident
of
this
state
shall
only
be
shipped
to
a
resident
2
who
is
at
least
twenty-one
years
of
age,
for
the
resident’s
3
personal
use
and
consumption
and
not
for
resale.
4
b.
Native
distilled
spirits
subject
to
direct
shipping
shall
5
be
properly
registered
with
the
federal
alcohol
and
tobacco
tax
6
and
trade
bureau,
and
manufactured
on
the
native
distillery
7
premises
of
the
direct
shipper
permittee.
8
c.
All
containers
of
native
distilled
spirits
shipped
9
directly
to
a
resident
of
this
state
shall
be
conspicuously
10
labeled
with
the
words
“CONTAINS
ALCOHOL:
SIGNATURE
OF
11
PERSON
AGE
21
OR
OLDER
REQUIRED
FOR
DELIVERY”
or
shall
be
12
conspicuously
labeled
with
alternative
wording
preapproved
by
13
the
administrator.
14
d.
All
containers
of
native
distilled
spirits
shipped
15
directly
to
a
resident
of
this
state
shall
be
shipped
by
a
16
holder
of
a
native
distilled
spirits
carrier
permit
as
provided
17
in
section
123.43C.
18
e.
Shipment
of
native
distilled
spirits
pursuant
to
this
19
subsection
does
not
require
a
refund
value
for
beverage
20
container
control
purposes
under
chapter
455C.
21
4.
A
direct
shipper
permittee
shall
be
deemed
to
have
22
consented
to
the
jurisdiction
of
the
division
or
any
other
23
agency
or
court
in
this
state
concerning
enforcement
of
this
24
section
and
any
related
laws,
rules,
or
regulations.
A
permit
25
holder
shall
allow
the
division
to
perform
an
audit
of
shipping
26
records
upon
request.
27
5.
A
violation
of
this
section
shall
subject
the
permittee
28
to
the
general
penalties
provided
in
this
chapter
and
shall
29
constitute
grounds
for
imposition
of
a
civil
penalty
or
30
suspension
or
revocation
of
the
permit
pursuant
to
section
31
123.39.
32
Sec.
5.
NEW
SECTION
.
123.43C
Native
distilled
spirits
33
carrier
——
permit
and
requirements.
34
1.
A
person
desiring
to
deliver
native
distilled
spirits
35
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subject
to
direct
shipment
within
this
state
pursuant
to
1
section
123.43B
shall
submit
an
application
for
a
native
2
distilled
spirits
carrier
permit
electronically,
or
in
a
manner
3
prescribed
by
the
administrator,
which
shall
be
accompanied
by
4
a
fee
in
the
amount
of
one
hundred
dollars.
5
2.
The
administrator
may
in
accordance
with
this
chapter
6
issue
a
native
distilled
spirits
carrier
permit
which
shall
7
be
valid
for
one
year
from
the
date
of
issuance
unless
it
is
8
sooner
suspended
or
revoked
for
a
violation
of
this
chapter.
9
3.
A
permit
issued
pursuant
to
this
section
may
be
10
renewed
annually
by
submitting
a
renewal
application
with
the
11
administrator
in
a
manner
prescribed
by
the
administrator,
12
accompanied
by
the
one
hundred
dollar
permit
fee.
13
4.
The
delivery
of
native
distilled
spirits
pursuant
to
14
this
section
shall
be
subject
to
the
following
requirements
and
15
restrictions:
16
a.
A
native
distilled
spirits
carrier
permittee
shall
not
17
deliver
native
distilled
spirits
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
native
distilled
spirits
carrier
permittee
shall
obtain
21
valid
proof
of
identity
and
age
prior
to
delivery,
and
shall
22
obtain
the
signature
of
an
adult
as
a
condition
of
delivery.
23
c.
A
native
distilled
spirits
carrier
permittee
shall
24
maintain
records
of
native
distilled
spirits
shipped
which
25
include
the
permit
number
and
name
of
the
native
distilled
26
spirits
manufacturer,
quantity
of
native
distilled
spirits
27
shipped,
recipient’s
name
and
address,
and
an
electronic
or
28
paper
form
of
signature
from
the
recipient
of
the
native
29
distilled
spirits.
Records
shall
be
submitted
to
the
division
30
on
a
monthly
basis
in
a
form
and
manner
to
be
determined
by
the
31
division.
32
5.
A
violation
of
this
section
shall
subject
the
permittee
33
to
the
general
penalties
provided
in
this
chapter
and
shall
34
constitute
grounds
for
imposition
of
a
civil
penalty
or
35
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639
suspension
or
revocation
of
the
permit
pursuant
to
section
1
123.39.
2
Sec.
6.
Section
123.46A,
subsection
4,
Code
2021,
is
amended
3
to
read
as
follows:
4
4.
Nothing
in
this
section
shall
impact
the
direct
shipment
5
of
wine
as
regulated
by
section
123.187
or
direct
shipment
of
6
native
distilled
spirits
as
regulated
by
section
123.89
.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
authorizes
a
manufacturer
of
native
distilled
11
spirits
licensed
or
permitted
pursuant
to
state
laws
regulating
12
alcoholic
beverages
to
apply
for
a
direct
shipper
permit.
All
13
shipments
of
native
distilled
spirits
shall
be
made
through
14
the
state’s
wholesale
distribution
system.
A
direct
shipper
15
permit
is
required
in
order
to
sell
native
distilled
spirits
at
16
retail
for
direct
shipment
to
any
person
within
the
state
or
17
another
state.
The
annual
permit
fee
is
$25.
A
direct
shipper
18
license
allows
a
licensee
to
ship
native
distilled
spirits
to
19
a
resident
of
this
state
who
is
at
least
21
years
of
age,
for
20
the
resident’s
personal
use
and
consumption
and
not
for
resale.
21
The
bill
requires
that
native
distilled
spirits
subject
to
22
direct
shipping
be
properly
registered,
manufactured
on
the
23
premises
of
the
direct
shipper
permittee,
and
conspicuously
24
labeled
as
set
out
in
the
bill.
25
The
bill
establishes
a
native
distilled
spirits
carrier
26
permit
for
persons
to
deliver
native
distilled
spirits
subject
27
to
direct
shipment
within
Iowa.
The
annual
permit
fee
is
$100.
28
The
bill
requires
that
a
carrier
permittee
not
deliver
native
29
distilled
spirits
to
any
person
under
21
years
of
age,
or
to
30
any
person
who
either
is
or
appears
to
be
in
an
intoxicated
31
state
or
condition;
obtain
valid
proof
of
identity
and
age
32
prior
to
delivery
and
obtain
the
signature
of
an
adult
as
33
a
condition
of
delivery;
and
maintain
shipping
records
as
34
provided
in
the
bill.
35
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The
bill
modifies
the
definition
of
“native
distilled
1
spirits”
by
striking
references
to
fermenting
and
distilling
2
spirits
and
instead
including
manufacturing
of
spirits.
Under
3
current
law,
“manufacture”
means
to
distill,
rectify,
ferment,
4
brew,
make,
mix,
concoct,
or
process
any
substance
capable
5
of
producing
a
beverage
containing
more
than
one-half
of
one
6
percent
of
alcohol
by
volume
and
includes
blending,
bottling,
7
or
the
preparation
for
sale.
8
Penalty
provisions
of
Code
chapter
123,
including
a
civil
9
penalty
of
up
to
$1,000
or
suspension
or
revocation
of
a
10
permit,
are
made
applicable
to
the
permits
established
by
the
11
bill.
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