H.F. 2354 Section 1. Section 123.28, subsection 5, Code 2026, is 1 amended to read as follows: 2 5. This section does not affect the right of a retail 3 alcohol license holder to purchase, possess, or transport 4 alcoholic liquors subject to this chapter . In addition, this 5 section does not impact the direct shipment of alcoholic liquor 6 as regulated by section 123.42A. 7 Sec. 2. Section 123.32, subsection 1, paragraph b, Code 8 2026, is amended by adding the following new subparagraph: 9 NEW SUBPARAGRAPH . (05) An alcoholic liquor direct shipper 10 license as provided in section 123.42A. 11 Sec. 3. Section 123.32, subsection 1, paragraph b, 12 subparagraph (10), Code 2026, is amended to read as follows: 13 (10) A wine An alcoholic beverage carrier permit as provided 14 in section 123.188 . 15 Sec. 4. Section 123.39, subsection 1, paragraph a, 16 subparagraph (2), Code 2026, is amended to read as follows: 17 (2) The director may suspend a certificate of compliance, a 18 class “D” retail alcohol license, a manufacturer’s license, a 19 broker’s permit, an alcoholic liquor direct shipper license, 20 a class “A” native distilled spirits license, a class “A” or 21 special class “A” beer permit, a class “A” wine permit, a 22 wine direct shipper’s permit, or a wine an alcoholic beverage 23 carrier permit for a period not to exceed one year, revoke the 24 license, permit, or certificate, or impose a civil penalty not 25 to exceed one thousand dollars per violation. 26 Sec. 5. Section 123.41, subsection 1, Code 2026, is amended 27 to read as follows: 28 1. Each completed application to obtain or renew a 29 manufacturer’s license shall be submitted to the department 30 electronically, or in a manner prescribed by the director, and 31 shall be accompanied by a fee of three hundred dollars payable 32 to the department. The director may in accordance with this 33 chapter grant and issue to a manufacturer a manufacturer’s 34 license, valid for a one-year period after date of issuance, 35 -1- LSB 1058HW (2) 91 jm/ns 1/ 10

H.F. 2354 which shall allow the manufacture, storage, and wholesale 1 disposition and sale of alcoholic liquors to the department and 2 to customers outside of the state pursuant to the laws of that 3 jurisdiction . 4 Sec. 6. Section 123.41, Code 2026, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 1A. A manufacturer of alcoholic liquor 7 may ship alcoholic liquor in closed containers to individual 8 purchasers inside this state by obtaining an alcoholic liquor 9 direct shipper license pursuant to section 123.42A. 10 Sec. 7. NEW SECTION . 123.42A Direct shipment of alcoholic 11 liquor —— license and requirements. 12 1. An alcoholic liquor manufacturer licensed or permitted 13 pursuant to laws regulating alcoholic beverages in this state 14 or another state may apply for an alcoholic liquor direct 15 shipper license, as provided in this section. For the purposes 16 of this section, an “alcoholic liquor manufacturer” means a 17 business with an operating still which distills spirits, barrel 18 matures spirits for a period of two years on the licensed 19 premises of the distillery where matured, or blends or mixes 20 spirits comprised solely of spirits distilled or barrel matured 21 for a period of two years on the licensed premises of the 22 distillery. 23 2. a. Only an alcoholic liquor manufacturer that holds an 24 alcoholic liquor direct shipper license issued pursuant to this 25 section is authorized to sell alcoholic liquor at retail for 26 direct shipment to any person within this state. This section 27 does not prohibit an authorized retail licensee or permittee 28 from delivering alcoholic liquor pursuant to section 123.46A. 29 b. An alcoholic liquor manufacturer applying for an 30 alcoholic liquor direct shipper license shall submit an 31 application for the license electronically, or in a manner 32 prescribed by the director, accompanied by a true copy of 33 the manufacturer’s current alcoholic beverage license or 34 permit issued by the state where the manufacturer is primarily 35 -2- LSB 1058HW (2) 91 jm/ns 2/ 10

H.F. 2354 located, a copy of the manufacturer’s basic permit issued by 1 the alcohol and tobacco tax and trade bureau of the United 2 States department of the treasury, and documents filed by the 3 manufacturer with the alcohol and tobacco tax and trade bureau 4 of the United States department of the treasury that show the 5 total number of proof gallons of distilled spirits produced and 6 manufactured by the manufacturer for the preceding calendar 7 year. 8 c. An application submitted pursuant to paragraph “b” shall 9 be accompanied by a license fee in the amount of twenty-five 10 dollars. 11 d. A license issued pursuant to this section may be renewed 12 annually by submitting a renewal application with the director 13 in a manner prescribed by the director, accompanied by the 14 twenty-five dollar license fee. 15 3. The direct shipment of alcoholic liquor pursuant to this 16 section is subject to all of the following requirements and 17 restrictions: 18 a. Alcoholic liquor shall only be shipped to a resident of 19 this state who is at least twenty-one years of age, for the 20 resident’s personal use and consumption and not for resale as 21 follows: 22 (1) An alcoholic liquor direct shipper licensee may sell 23 and ship alcoholic liquor to any person who is at least 24 twenty-one years of age for personal use and not for resale if 25 the licensee produces in, or imports into, the United States 26 one hundred fifty thousand proof gallons or fewer of distilled 27 spirits per calendar year. 28 (2) An alcoholic liquor direct shipper licensee may sell and 29 ship up to nine liters of alcoholic liquor per calendar year to 30 any person who is at least twenty-one years of age for personal 31 use and not for resale if the licensee produces in, or imports 32 into, the United States more than one hundred fifty thousand 33 proof gallons of distilled spirits per calendar year. 34 b. Alcoholic liquor subject to direct shipping shall be 35 -3- LSB 1058HW (2) 91 jm/ns 3/ 10

H.F. 2354 properly registered with the federal alcohol and tobacco tax 1 and trade bureau, and manufactured on the licensed premises of 2 the alcoholic liquor direct shipper licensee. 3 c. Alcoholic liquor subject to direct shipping shall be 4 properly registered with the department. Products which are 5 not listed for sale by the department must be registered 6 electronically with the department for direct shipping. This 7 registration must include the name of the manufacturer, the 8 name of the brand, the standard of fill, the wholesale price, 9 and other information as requested by the department. The 10 registration shall be updated as necessary to ensure the 11 department possesses an accurate, current registration. 12 d. All containers of alcoholic liquor shipped directly to a 13 resident of this state shall be conspicuously labeled with the 14 words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER 15 REQUIRED FOR DELIVERY” or shall be conspicuously labeled with 16 alternative wording preapproved by the director. 17 e. All containers of alcoholic liquor shipped directly 18 to a resident of this state shall be shipped by a holder of 19 an alcoholic beverage carrier permit as provided in section 20 123.188. 21 f. Shipment of alcoholic liquor pursuant to this subsection 22 does not require a refund value for beverage container control 23 purposes under chapter 455C. 24 4. An alcoholic liquor direct shipper licensee shipping 25 alcoholic liquor to this state shall remit the following amount 26 to the department in a manner as directed by the department: 27 a. For alcoholic liquor that is listed for sale by the 28 department, an amount equivalent to fifty percent of the listed 29 wholesale price. 30 b. For alcoholic liquor that is not listed for sale by 31 the department, an amount equivalent to fifty percent of 32 the wholesale price as registered with the department under 33 subsection 3. 34 5. Each alcoholic liquor direct shipper licensee shall make 35 -4- LSB 1058HW (2) 91 jm/ns 4/ 10

H.F. 2354 a report under oath to the department electronically, or in a 1 manner prescribed by the director, on or before the tenth day 2 of each month, which includes all of the following information: 3 a. The products and quantities shipped directly to residents 4 of this state in the preceding month. 5 b. The name and address of the individuals to whom the 6 alcoholic liquor was sold in each sale. 7 c. The wholesale price of the alcoholic liquor sold. 8 d. The purchase price of the alcoholic liquor sold and 9 the amount of taxes charged to the individual purchasing the 10 alcoholic liquor. 11 e. The alcoholic beverage carrier permittee who delivered 12 the shipment. 13 f. All documents filed by the alcoholic liquor direct 14 shipper licensee with the alcohol and tobacco tax and trade 15 bureau of the United States department of treasury for the 16 preceding month, including all production, storage, and 17 processing reports. 18 6. The license holder at the time of filing the report as 19 required by subsection 5 shall pay to the department the amount 20 as required pursuant to subsection 4. The department shall 21 assess and collect a civil penalty of ten percent of the amount 22 due if the report required to be filed pursuant to this section 23 and the amount required to be paid as provided by subsection 24 4 is not filed and the amount paid within the time required by 25 this section. 26 7. An alcoholic liquor direct shipper licensee shall be 27 deemed to have consented to the jurisdiction of the department 28 or any other agency or court in this state concerning 29 enforcement of this section and any related laws, rules, or 30 regulations. A license holder shall allow the department to 31 perform an audit of shipping records upon request. 32 8. A violation of this section shall subject the licensee 33 to the general penalties provided in this chapter and shall 34 constitute grounds for imposition of a civil penalty or 35 -5- LSB 1058HW (2) 91 jm/ns 5/ 10

H.F. 2354 suspension or revocation of the license pursuant to section 1 123.39. 2 Sec. 8. Section 123.43A, subsection 2, Code 2026, is amended 3 to read as follows: 4 2. A native distillery shall not sell more than nine 5 liters per person per day, of native distilled spirits on 6 the premises of the native distillery. However, a native 7 distillery shall not directly may ship native distilled spirits 8 for sale at retail manufactured by the native distillery in 9 closed containers to individual purchasers inside the state by 10 obtaining an alcoholic liquor direct shipper license pursuant 11 to section 123.42A . The native distillery shall maintain 12 records of individual purchases of native distilled spirits at 13 the native distillery for three years. 14 Sec. 9. Section 123.43A, subsection 7, Code 2026, is amended 15 to read as follows: 16 7. A native distillery may sell the native distilled spirits 17 it manufactures to customers outside the state , pursuant to the 18 laws of that jurisdiction . 19 Sec. 10. Section 123.46A, subsection 5, Code 2026, is 20 amended to read as follows: 21 5. Nothing in this section shall impact the direct shipment 22 of alcoholic liquor as regulated by section 123.42A or the 23 direct shipment of wine as regulated by section 123.187 . 24 Sec. 11. Section 123.173C, subsection 4, paragraphs b and d, 25 Code 2026, are amended to read as follows: 26 b. A person, within or outside of the state, who desires 27 to ship wine from a private collection to a wine auction 28 permittee to be sold at auction shall do so through a holder of 29 a wine an alcoholic beverage carrier permit. The wine auction 30 permittee shall ensure that each bottle of wine so acquired 31 is permanently affixed with a label stating that the wine was 32 acquired from a private collection. 33 d. A permittee is responsible for the storage of all wines 34 that are to be offered at auction at the licensed premises, 35 -6- LSB 1058HW (2) 91 jm/ns 6/ 10

H.F. 2354 and for the subsequent shipment and delivery of all wines sold 1 at auction to the purchasers of the wines. Shipment of wine 2 pursuant to this paragraph shall only be done by a holder of a 3 wine an alcoholic beverage carrier permit. 4 Sec. 12. Section 123.187, subsection 3, paragraph d, Code 5 2026, is amended to read as follows: 6 d. All containers of wine shipped directly to a resident of 7 this state shall be shipped by a holder of a wine an alcoholic 8 beverage carrier permit as provided in section 123.188 . 9 Sec. 13. Section 123.188, subsections 1, 2, and 4, Code 10 2026, are amended to read as follows: 11 1. A person desiring to deliver alcoholic liquor subject to 12 direct shipment within this state pursuant to section 123.42A, 13 wine subject to direct shipment within this state pursuant to 14 section 123.187 , or to deliver wine shipped to or by a wine 15 auction permittee pursuant to section 123.173C , shall submit 16 an application for a wine an alcoholic beverage carrier permit 17 electronically, or in a manner prescribed by the director, 18 which shall be accompanied by a fee in the amount of one 19 hundred dollars. 20 2. The director may in accordance with this chapter issue a 21 wine an alcoholic beverage carrier permit which shall be valid 22 for one year from the date of issuance unless it is sooner 23 suspended or revoked for a violation of this chapter . 24 4. The delivery of alcoholic liquor or wine pursuant to this 25 section shall be is subject to the following requirements and 26 restrictions: 27 a. A wine An alcoholic beverage carrier permittee shall not 28 deliver alcoholic liquor or wine to any person under twenty-one 29 years of age, or to any person who either is or appears to be in 30 an intoxicated state or condition. 31 b. A wine An alcoholic beverage carrier permittee shall 32 obtain valid proof of identity and age prior to delivery, 33 and shall obtain the signature of an adult as a condition of 34 delivery. 35 -7- LSB 1058HW (2) 91 jm/ns 7/ 10

H.F. 2354 c. A wine An alcoholic beverage carrier permittee shall 1 maintain records of alcoholic liquor or wine shipped which 2 include the permit number and name of the alcoholic liquor 3 or wine manufacturer or wine auction permittee, quantity of 4 alcoholic liquor or wine shipped, recipient’s name and address, 5 and an electronic or paper form of signature from the recipient 6 of the alcoholic liquor or wine. Records shall be submitted 7 to the department on a monthly basis in a form and manner to be 8 determined by the department. 9 Sec. 14. EFFECTIVE DATE. This Act takes effect January 1, 10 2027. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill allows for the direct shipment of alcoholic liquor 15 within the state. 16 New Code section 123.42A provides for the direct shipment of 17 alcoholic liquor and provides for an alcoholic liquor direct 18 shipper license. An alcoholic liquor direct shipper licensee 19 (licensee) may sell and ship any amount of alcoholic liquor to 20 any person who is at least 21 years of age for personal use and 21 not for resale if the licensee produces in, or imports into, 22 the United States 150,000 proof gallons or fewer of distilled 23 spirits per calendar year. If the licensee produces or 24 imports more than 150,000 proof gallons of distilled spirits, 25 a licensee may sell and ship up to nine liters of alcoholic 26 liquor per calendar year to a person 21 years of age or older. 27 The annual fee for the license is $25. 28 Provisions governing the direct shipment of wine and the 29 wine direct shipper permit are generally made applicable to the 30 direct shipment of alcoholic liquor. 31 The bill requires all alcoholic liquor subject to direct 32 shipping to be properly registered with the department of 33 revenue (department) and that products which are not listed 34 for sale by the department must be registered to include 35 -8- LSB 1058HW (2) 91 jm/ns 8/ 10

H.F. 2354 information on the name of the manufacturer, the name of 1 the brand, the standard of fill, the wholesale price, and 2 other information as requested by the department. The bill 3 also requires each licensee to make a monthly report to the 4 department that lists the products and quantities shipped 5 directly to residents of this state in the preceding month, 6 the name and address of the individuals to whom the alcoholic 7 liquor was sold in each sale, the wholesale price of the 8 alcoholic liquor sold, the purchase price and taxes charged 9 of the alcoholic liquor sold, the alcoholic beverage carrier 10 permittee who delivered each shipment, and documents filed by 11 the licensee with the alcohol and tobacco tax and trade bureau 12 of the United States department of treasury for the preceding 13 month, including all production, storage, and processing 14 reports. 15 Finally, the bill requires a licensee to remit an amount 16 to the department depending on whether the alcoholic liquor 17 shipped is listed for sale by the department. If the alcoholic 18 liquor is listed for sale by the department, the permittee 19 shall remit to the department an amount equivalent to 50 20 percent of the wholesale price paid by the department for 21 the alcoholic liquor. If the alcoholic liquor is not listed 22 for sale by the department, the permittee shall remit to 23 the department an amount equivalent to 50 percent of the 24 wholesale price of the alcoholic liquor as registered with 25 the department. The bill provides that a civil penalty of 10 26 percent of the amount due shall be assessed and collected if 27 the amount required to be paid to the department as provided 28 by the bill is not paid within the time required. Generally, 29 moneys collected by the department under Code chapter 123 for 30 the issuance of permits and licenses, and other moneys and 31 receipts received by the department from any other source under 32 the Code chapter, are deposited in the beer and liquor control 33 fund (Code section 123.17). Civil penalties imposed and 34 collected by the department under the Code chapter are credited 35 -9- LSB 1058HW (2) 91 jm/ns 9/ 10

H.F. 2354 to the general fund of the state. 1 The bill allows a manufacturer of alcoholic liquor and a 2 native distillery to ship alcoholic liquor or native distilled 3 spirits, as applicable, to individual purchasers inside this 4 state by obtaining an alcoholic liquor direct shipper license 5 as established in the bill. 6 The bill replaces the wine carrier permit under current law 7 with an alcoholic beverage carrier permit to provide for the 8 direct shipment of alcoholic liquor as provided by the bill. 9 The bill takes effect January 1, 2027. 10 -10- LSB 1058HW (2) 91 jm/ns 10/ 10