SSB 1080 (LSB 1728XC (2) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act concerning alcoholic beverage control relating to alternating proprietorship arrangements for beer manufacturers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.130, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  a.  For purposes of this subsection, “manufacturer” includes only those persons who hold a class “A” beer permit and manufacture beer in Iowa.
   b.  A manufacturer may use the space and equipment of another manufacturer for the purpose of manufacturing beer, provided that such an alternating proprietorship arrangement is approved by the alcohol and tobacco tax and trade bureau of the United States department of the treasury. A separate class “A” beer permit shall be issued to each manufacturer, and each manufacturer shall be subject to the provisions of this chapter and the rules of the division. Notwithstanding subsection 2, not more than one class “C” retail alcohol license shall be issued to a premises with alternating proprietorships.
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 a manufacturer of beer in Iowa to use the space and equipment of another manufacturer of beer in Iowa for the purpose of manufacturing beer pursuant to an alternating proprietorship arrangement that is approved by the alcohol and tobacco tax and trade bureau of the United States department of the treasury. The bill provides that no more than one class “C” retail alcohol license shall be issued to a premises with alternating proprietorships for beer.