HF 2403 (LSB 5994YH (3) 91)

HOUSE FILE 2403

BY  WILLS

A BILL FOR

An Act repealing the state monopoly on the importation of alcoholic liquor, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.10, subsection 13, Code 2026, is amended to read as follows:
   13.  Providing for the issuance of a waiver for an individual of legal age desiring to import alcoholic liquor, wine, or beer in excess of the amount provided in section 123.22, 123.122, or 123.171, as applicable. The waiver shall be limited to those individuals who were domiciled outside the state within one year of the request for a waiver and shall provide that any alcoholic liquor, wine, or beer imported pursuant to the waiver shall be for personal consumption only in a private home or other private accommodation.
    Sec. 2.  Section 123.26, Code 2026, is amended to read as follows:
   123.26  Restrictions on sales —— seals —— labeling.
   Alcoholic liquor shall not be sold by a class “E” retail alcohol licensee except in a sealed container with identifying markers as prescribed by the director and affixed in the manner prescribed by the director, and no such container shall be opened upon the premises of a state warehouse. The department shall cooperate with the department of natural resources so that only one identifying marker or mark is needed to satisfy the requirements of this section and section 455C.5, subsection 1. Possession of alcoholic liquors which do not carry the prescribed identifying markers is a violation of this chapter except as provided in section 123.22.
    Sec. 3.  Section 123.28, subsection 4, Code 2026, is amended to read as follows:
   4.  This section does not prohibit a private person from transporting individual bottles or containers of alcoholic liquor exempted pursuant to section 123.22 and individual bottles or containers bearing the identifying mark prescribed in section 123.26 which have been opened previous to the commencement of the transportation.
    Sec. 4.  REPEAL.  Section 123.22, Code 2026, is repealed.
    Sec. 5.  DEPARTMENT OF REVENUE —— PROPOSED LEGISLATION.  The department of revenue shall review chapter 123 and any associated alcoholic beverage control provisions based on the elimination of the state monopoly on the importation of alcoholic liquor, as enacted by this Act, including but not limited to the department’s powers and duties under law, tax and other financial implications, and administrative implications, and shall submit any proposed legislation pursuant to section 2.16 for consideration by the general assembly during the 2027 regular session of the Ninety-second General Assembly. The proposed legislation must also provide for the disposal of associated warehouses or other state infrastructure determined to be no longer necessary.
    Sec. 6.  EFFECTIVE DATE.
   1.  Except as provided in subsection 2, this Act takes effect July 1, 2027.
   2.  The section of this Act directing the department of revenue to review the implications of this Act and submit proposed legislation, being deemed of immediate importance, takes effect upon enactment.
    Sec. 7.  APPLICABILITY.  This Act applies to the importation of alcoholic liquors into the state on or after July 1, 2027.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill repeals the state monopoly on the importation of alcoholic liquor.
   Currently, the department of revenue (department) has a monopoly on the importation of most forms of alcoholic liquors imported into the state. The bill repeals the department’s monopoly, and instructs the department to review the implications of the repeal and submit any proposed legislation to the general assembly for consideration during the 2027 regular session.
   The bill takes effect July 1, 2027. However, the provision instructing the department to review the implications of the bill and to submit proposed legislation takes effect upon enactment.
   The bill applies to the importation of alcoholic liquors into the state on or after July 1, 2027.