HF 459 (LSB 2431YH (2) 91)

HOUSE FILE 459

BY  JONES

A BILL FOR

An Act concerning native distilled spirits listed and sold by the department of revenue.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.10, subsection 3, Code 2025, is amended to read as follows:
   3.  Regulating the purchase of alcoholic liquor generally and the furnishing of the liquor to class “E” retail alcohol licensees under this chapter, and determining the classes, varieties, and brands of alcoholic liquors to be kept in state warehouses.  However, the director shall not delist a native distillery’s native distilled spirits based solely on a failure to meet sales guidelines once the director determines to list the native distillery’s native distilled spirits.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the director of revenue (director) has authority to regulate the purchase of alcoholic liquor generally and to determine the classes, varieties, and brands of alcoholic liquors to be kept in state warehouses. The department of revenue (department) is the sole wholesaler of all brands and types of alcoholic liquor, including native distilled spirits, sold in the state. Native distilleries are businesses with operating stills located in the state that produce and manufacture native distilled spirits. Native distilled spirits may be purchased through a bailment system by the department, then listed and sold to class “E” retail alcohol licensees. Class “E” retail alcohol licensees sell alcoholic beverages for off-premises consumption to individuals and sell at wholesale to class “C” retail alcohol licensees for resale to individuals for on-premises consumption.
   This bill limits the director’s authority to delist a native distillery’s native distilled spirits based solely on a failure to meet sales guidelines once the director determines to list and sell the native distillery’s native distilled spirits in the state to class “E” retail alcohol licensees.