SF 486 (LSB 2779XS (1) 91)

SENATE FILE 486

BY  PETERSEN

A BILL FOR

An Act concerning native distilleries, including distilling classes offered to individuals.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.22, subsection 2, paragraph b, Code 2025, is amended to read as follows:
   b.  However, alcohol may be manufactured for industrial and nonbeverage purposes by persons who have qualified for that purpose as provided by the laws of the United States and the laws of this state. Such alcohol, so manufactured, may be denatured, transported, used, possessed, sold, and bartered and dispensed, subject to the limitations, prohibitions, and restrictions imposed by the laws of the United States and this state.  Additionally, an individual may manufacture alcoholic liquor when participating in a supervised distilling class at a native distillery as provided in section 123.43A, subsection 9.
    Sec. 2.  Section 123.43A, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  9.  A native distillery holding a class “A” native distilled spirits license that does not also hold a class “C” retail alcohol license for the same licensed premises as the native distillery may provide supervised distilling classes to individuals subject to all of the following:
   a.  Individuals conducting the classes and participating in the classes shall be of legal age.
   b.  The amount of alcoholic liquor each individual participating in each class may produce shall be limited to seven hundred fifty milliliters.
   c.  Alcoholic beverages, including the alcoholic liquor produced in the class, shall not be consumed on the premises. This paragraph does not prohibit tastings of native distilled spirits conducted in accordance with subsection 3.
   d.  The native distillery shall remit to the department in a manner as directed by the department an amount equivalent to fifty percent of the wholesale price for the alcoholic liquor being manufactured by the individuals in the distilling class that is also generally the same type of alcoholic liquor manufactured by the native distillery and listed for sale by the department.
   e.  A native distillery shall allow not more than three hundred gallons of alcoholic liquor to be produced on an annual basis by individuals participating in distilling classes.
   f.  The director may adopt rules establishing processes and procedures to support operational, product, and public safety in distilling classes conducted under this subsection.
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 native distillery that does not hold a class “C” retail alcohol license for the premises of the native distillery to provide supervised distilling classes to individuals on the premises of the native distillery if the individuals conducting the class and participating in the class are at least 21 years old; the amount of alcoholic liquor each individual in the class produces is limited to 750 milliliters; alcoholic beverages, including those produced in the class, are not consumed on the premises, except for tastings; the native distillery remits 50 percent of the wholesale price for the alcoholic liquor being manufactured by the individuals in the distilling class to the department of revenue; and the native distillery allows not more than 300 gallons of alcoholic liquor to be produced on an annual basis by individuals participating in distilling classes.