SF 2167 (LSB 5838XS (3) 90)

SENATE FILE 2167

BY  SHIPLEY

A BILL FOR

An Act providing for the direct shipment of beer, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.32, subsection 1, paragraph b, Code 2024, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (06)  A beer direct shipper license as provided in section 123.147.
    Sec. 2.  Section 123.32, subsection 1, paragraph b, subparagraph (10), Code 2024, is amended to read as follows:
   (10)  A wine An alcoholic beverage carrier permit as provided in section 123.188.
    Sec. 3.  Section 123.39, subsection 1, paragraph a, subparagraph (2), Code 2024, is amended to read as follows:
   (2)  The director may suspend a certificate of compliance, a class “D” retail alcohol license, a manufacturer’s license, a broker’s permit, a class “A” native distilled spirits license, a class “A” or special class “A” beer permit, a class “A” wine permit, a wine direct shipper’s permit, or a wine an alcoholic beverage carrier permit for a period not to exceed one year, revoke the license, permit, or certificate, or impose a civil penalty not to exceed one thousand dollars per violation.
    Sec. 4.  Section 123.46A, subsection 5, Code 2024, is amended to read as follows:
   5.  Nothing in this section shall impact the direct shipment of beer as regulated by section 123.147 or the direct shipment of wine as regulated by section 123.187.
    Sec. 5.  Section 123.136, subsection 1, Code 2024, is amended to read as follows:
   1.  In addition to the annual permit fee to be paid by all class “A” beer permittees under this chapter there shall be levied and collected from the permittees on all beer manufactured for sale or sold in this state at wholesale and on all beer imported into this state for sale at wholesale and sold in this state at wholesale, and from special class “A” beer permittees on all beer manufactured for consumption on the premises and on all beer sold at retail at the manufacturing premises for consumption off the premises pursuant to section 123.130, subsection 4, a tax of five and eighty-nine hundredths dollars for every barrel containing thirty-one gallons, and at a like rate for any other quantity or for the fractional part of a barrel.  A barrel tax shall also be levied and collected on the direct shipment of beer pursuant to section 123.147. However, no tax shall be levied or collected on beer shipped outside this state by a class “A” beer permittee or special class “A” beer permittee or on beer sold to a class “A” beer permittee by a special class “A” beer permittee or another class “A” beer permittee.
    Sec. 6.  Section 123.137, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Each beer direct shipper license holder shall make a report under oath to the department electronically, or in a manner prescribed by the director, on or before the tenth day of the calendar months of June and December, showing the exact number of barrels of beer and fractional parts of barrels sold and shipped pursuant to section 123.147 during the preceding six-month calendar period. The report shall also state whatever reasonable additional information the director requires. The license holder at the time of filing this report shall pay to the department the amount of tax due at the rate fixed in section 123.136.
    Sec. 7.  NEW SECTION.  123.147  Direct shipment of beer —— license and requirements.
   1.  A beer manufacturer licensed or permitted pursuant to laws regulating alcoholic beverages in this state or another state may apply for a beer direct shipper license, as provided in this section.
   2.  a.  Only a beer manufacturer that holds a beer direct shipper license issued pursuant to this section shall sell beer at retail for direct shipment to any person within this state. This section shall not prohibit an authorized retail licensee from delivering beer pursuant to section 123.46A.
   b.  A beer manufacturer applying for a beer direct shipper license shall submit an application for the license electronically, or in a manner prescribed by the director, accompanied by a true copy of the manufacturer’s current alcoholic beverage license or permit issued by the state where the manufacturer is primarily located and a copy of the manufacturer’s basic permit issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury.
   c.  An application submitted pursuant to paragraph “b” shall be accompanied by a license fee in the amount of twenty-five dollars.
   d.  A license issued pursuant to this section may be renewed annually by submitting a renewal application with the director in a manner prescribed by the director, accompanied by the twenty-five-dollar license fee.
   3.  The direct shipment of beer pursuant to this section shall be subject to the following requirements and restrictions:
   a.  Beer shall only be shipped to a resident of this state who is at least twenty-one years of age, for the resident’s personal use and consumption and not for resale.
   b.  Beer subject to direct shipping shall be properly registered with the federal alcohol and tobacco tax and trade bureau, and manufactured on the licensed premises of the beer direct shipper licensee.
   c.  All containers of beer shipped directly to a resident of this state shall be conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” or shall be conspicuously labeled with alternative wording preapproved by the director.
   d.  All containers of beer shipped directly to a resident of this state shall be shipped by a holder of an alcoholic beverage carrier permit as provided in section 123.188.
   e.  Shipment of beer pursuant to this subsection does not require a refund value for beverage container control purposes under chapter 455C.
   4.  A beer direct shipper licensee shall remit to the department an amount equivalent to the barrel tax on beer subject to direct shipment at the rate specified in section 123.136 for deposit as provided in section 123.136, subsection 2. The amount shall be remitted at the time and in the manner provided in section 123.137, subsection 1A, and the ten percent penalty specified in section 123.137, subsection 2, shall be applicable.
   5.  A beer direct shipper licensee shall be deemed to have consented to the jurisdiction of the department or any other agency or court in this state concerning enforcement of this section and any related laws, rules, or regulations. A license holder shall allow the department to perform an audit of shipping records upon request.
   6.  A violation of this section shall subject the licensee to the general penalties provided in this chapter and shall constitute grounds for imposition of a civil penalty or suspension or revocation of the license pursuant to section 123.39.
    Sec. 8.  Section 123.187, subsection 3, paragraph d, Code 2024, is amended to read as follows:
   d.  All containers of wine shipped directly to a resident of this state shall be shipped by a holder of a wine an alcoholic beverage carrier permit as provided in section 123.188.
    Sec. 9.  Section 123.188, subsections 1, 2, and 4, Code 2024, are amended to read as follows:
   1.  A person desiring to deliver beer subject to direct shipment within this state pursuant to section 123.147 and wine subject to direct shipment within this state pursuant to section 123.187 shall submit an application for a wine an alcoholic beverage carrier permit electronically, or in a manner prescribed by the director, which shall be accompanied by a fee in the amount of one hundred dollars.
   2.  The director may in accordance with this chapter issue a wine an alcoholic beverage carrier permit which shall be valid for one year from the date of issuance unless it is sooner suspended or revoked for a violation of this chapter.
   4.  The delivery of beer and wine pursuant to this section shall be subject to the following requirements and restrictions:
   a.  A wine An alcoholic beverage carrier permittee shall not deliver beer or wine to any person under twenty-one years of age, or to any person who either is or appears to be in an intoxicated state or condition.
   b.  A wine An alcoholic beverage carrier permittee shall obtain valid proof of identity and age prior to delivery, and shall obtain the signature of an adult as a condition of delivery.
   c.  A wine An alcoholic beverage carrier permittee shall maintain records of beer and wine shipped which include the permit number and name of the beer and wine manufacturer, quantity of beer and wine shipped, recipient’s name and address, and an electronic or paper form of signature from the recipient of the beer and wine. Records shall be submitted to the department on a monthly basis in a form and manner to be determined by the department.
    Sec. 10.  EFFECTIVE DATE.  This Act takes effect January 1, 2025.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill allows for the direct shipment of beer within the state.
   New Code section 123.147 provides for the direct shipment of beer and provides for a beer direct shipper license. Provisions governing the direct shipment of wine and the wine direct shipper permit are generally made applicable to the new Code section providing for the direct shipment of beer. The bill provides for application requirements and establishes the annual fee for the license as $25. The bill also provides that a licensee under the new Code section shall pay the barrel tax on beer subject to direct shipment at the rate specified for beer sold in the state. Code section 123.135, concerning the barrel tax, and Code section 123.136, concerning report of barrel sales, are made applicable to beer subject to direct shipment.
   Code section 123.188, providing for a wine carrier permit, is amended to provide for the direct shipment of beer as provided by the bill.
   The bill takes effect January 1, 2025.