HF 830 (LSB 1452YH (3) 91)

HOUSE FILE 830

BY  BAETH and WILZ

A BILL FOR

An Act concerning the wholesale price of alcoholic liquor offered for sale by the department of revenue.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.24, subsection 2, paragraphs a and b, Code 2025, are amended to read as follows:
   a.  The manufacturer’s price or the minimum unit price, whichever is greater.
   b.  A markup of up to fifty percent of the wholesale price paid by the department for the alcoholic liquor or the minimum unit price, whichever is greater. The department may increase the markup on selected kinds of alcoholic liquor sold by the department if the average return to the department on all sales of alcoholic liquor does not exceed the wholesale price paid by the department or the minimum unit price, whichever is greater, and the fifty percent markup.
    Sec. 2.  Section 123.24, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  For purposes of this section, “minimum unit price” means an amount equal to fifty cents per eighteen milliliters of alcohol in the package of alcoholic liquor, as determined by the department.
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 price of alcoholic liquor sold by the department of revenue (department) to class “E” retail alcohol licensees (licensees) consists of, among other things, the manufacturer’s price and a markup of up to 50 percent of the wholesale price paid by the department for the alcoholic liquor. The department is the sole wholesaler of alcoholic liquor sold to licensees located in this state. Licensees are authorized to sell liquor, wine, and beer in original unopened containers at retail to patrons for consumption off the licensed premises. Licensees may also sell alcoholic liquor, high alcoholic content beer, and limited quantities of beer and wine at wholesale to other retail alcohol licensees.
   This bill provides that if the minimum unit price of the alcoholic liquor is higher than the manufacturer’s price or, for purposes of the 50 percent markup, higher than the wholesale price paid by the department, the minimum unit price is used to calculate the price of the alcoholic liquor sold by the department. The minimum unit price is an amount equal to 50 cents per 18 milliliters of alcohol in the package of alcoholic liquor, as determined by the department.