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Senate Study Bill 1021 - IntroducedA Bill ForAn Act 1relating to manufacturers of native distilled spirits
2and beer.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.43A, subsection 6, Code 2019, is
2amended to read as follows:
36. Notwithstanding any provision of this chapter to the
4contrary or the fact that a person is the holder of a class
5“A” native distilled spirits license, a native distillery
6which, combining all production facilities of the business,
7produces and manufactures not more than one hundred thousand
8proof gallons of native distilled spirits on an annual basis
9may sell those native distilled spirits manufactured on the
10premises of the native distillery for consumption on the
11premises by applying for a class “C” native distilled spirits
12liquor control license as provided in section 123.30. A native
13distillery may be granted not more than one class “C” native
14distilled spirits liquor control license. All native distilled
15spirits sold by a native distillery for on-premises consumption
16shall be purchased from a class “E” liquor control licensee. A
17manufacturer of native distilled spirits may be issued a class
18“C” native distilled spirits liquor control license regardless
19of whether the manufacturer is also a manufacturer of beer
20pursuant to a class “A” beer permit or a manufacturer of native
21wine pursuant to a class “A” wine permit. A native distillery
22engaged in the business of manufacturing beer shall not be
23issued a class “C” native distilled spirits liquor control
24license.
25 Sec. 2. Section 123.45, subsection 2, Code 2019, is amended
26to read as follows:
272. However, a person engaged in the wholesaling of beer or
28wine may sell only disposable glassware, which is constructed
29of paper, paper laminated, or plastic materials and designed
30primarily for personal consumption on a one-time usage
31basis, to retailers for use within the premises of licensed
32establishments, for an amount which is greater than or equal
33to an amount which represents the greater of either the amount
34paid for the disposable glassware by the supplier or the amount
35paid for the disposable glassware by the wholesaler. Also, a
-1-1person engaged in the business of manufacturing beer may sell
2beer at retail for consumption on or off the premises of the
3manufacturing facility and, notwithstanding any other provision
4of this chapter or the fact that a person is the holder of a
5class “A” beer permit, may be granted not more than one class
6“B” beer permit as defined in section 123.124 for that purpose
7regardless of whether that person is also a manufacturer
8of native distilled spirits pursuant to a class “A” native
9distilled spirits license.
10 Sec. 3. Section 123.141, Code 2019, is amended to read as
11follows:
12123.141 Keeping liquor where beer is sold.
13No alcoholic liquor for beverage purposes shall be used,
14or kept for any purpose in the place of business of class “B”
15beer permittees, or on the premises of such class “B” beer
16permittees, at any time. A violation of any provision of
17this section shall be grounds for suspension or revocation
18of the beer permit pursuant to section 123.50, subsection
193. This section shall not apply in any manner or in any way
20to the premises of any hotel or motel for which a class “B”
21beer permit has been issued, other than that part of such
22premises regularly used by the hotel or motel for the principal
23purpose of selling beer or food to the general public, to a
24premises for which both a class “B” beer permit and a class
25“A” native distilled spirits license have been issued, or to
26keep a pharmacy from having alcohol in stock for medicinal and
27compounding purposes.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the authority of manufacturers of beer
32and manufacturers of native distilled spirits.
33Code section 123.43A, concerning native distilleries, is
34amended to authorize a manufacturer of native distilled spirits
35to be issued a class “C” native distilled spirits liquor
-2-1control license regardless of whether the manufacturer is also
2a manufacturer of beer.
3Code section 123.45, concerning limitations on business
4interests, is amended to provide that a manufacturer of beer
5may be granted one class “B” beer permit for the purpose
6of selling beer at retail for consumption on or off the
7premises of the manufacturing facility regardless of whether
8the manufacturer is also a manufacturer of native distilled
9spirits.
10Code section 123.141, concerning keeping liquor where beer
11is sold, is amended to allow alcoholic liquor for beverage
12purposes to be used or kept at a premises for which both a class
13“B” beer permit and class “A” native distilled spirits license
14have been issued.
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2and beer.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.43A, subsection 6, Code 2019, is
2amended to read as follows:
36. Notwithstanding any provision of this chapter to the
4contrary or the fact that a person is the holder of a class
5“A” native distilled spirits license, a native distillery
6which, combining all production facilities of the business,
7produces and manufactures not more than one hundred thousand
8proof gallons of native distilled spirits on an annual basis
9may sell those native distilled spirits manufactured on the
10premises of the native distillery for consumption on the
11premises by applying for a class “C” native distilled spirits
12liquor control license as provided in section 123.30. A native
13distillery may be granted not more than one class “C” native
14distilled spirits liquor control license. All native distilled
15spirits sold by a native distillery for on-premises consumption
16shall be purchased from a class “E” liquor control licensee. A
17manufacturer of native distilled spirits may be issued a class
18“C” native distilled spirits liquor control license regardless
19of whether the manufacturer is also a manufacturer of beer
20pursuant to a class “A” beer permit or a manufacturer of native
21wine pursuant to a class “A” wine permit. A native distillery
22engaged in the business of manufacturing beer shall not be
23issued a class “C” native distilled spirits liquor control
24license.
25 Sec. 2. Section 123.45, subsection 2, Code 2019, is amended
26to read as follows:
272. However, a person engaged in the wholesaling of beer or
28wine may sell only disposable glassware, which is constructed
29of paper, paper laminated, or plastic materials and designed
30primarily for personal consumption on a one-time usage
31basis, to retailers for use within the premises of licensed
32establishments, for an amount which is greater than or equal
33to an amount which represents the greater of either the amount
34paid for the disposable glassware by the supplier or the amount
35paid for the disposable glassware by the wholesaler. Also, a
-1-1person engaged in the business of manufacturing beer may sell
2beer at retail for consumption on or off the premises of the
3manufacturing facility and, notwithstanding any other provision
4of this chapter or the fact that a person is the holder of a
5class “A” beer permit, may be granted not more than one class
6“B” beer permit as defined in section 123.124 for that purpose
7regardless of whether that person is also a manufacturer
8of native distilled spirits pursuant to a class “A” native
9distilled spirits license.
10 Sec. 3. Section 123.141, Code 2019, is amended to read as
11follows:
12123.141 Keeping liquor where beer is sold.
13No alcoholic liquor for beverage purposes shall be used,
14or kept for any purpose in the place of business of class “B”
15beer permittees, or on the premises of such class “B” beer
16permittees, at any time. A violation of any provision of
17this section shall be grounds for suspension or revocation
18of the beer permit pursuant to section 123.50, subsection
193. This section shall not apply in any manner or in any way
20to the premises of any hotel or motel for which a class “B”
21beer permit has been issued, other than that part of such
22premises regularly used by the hotel or motel for the principal
23purpose of selling beer or food to the general public, to a
24premises for which both a class “B” beer permit and a class
25“A” native distilled spirits license have been issued, or to
26keep a pharmacy from having alcohol in stock for medicinal and
27compounding purposes.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the authority of manufacturers of beer
32and manufacturers of native distilled spirits.
33Code section 123.43A, concerning native distilleries, is
34amended to authorize a manufacturer of native distilled spirits
35to be issued a class “C” native distilled spirits liquor
-2-1control license regardless of whether the manufacturer is also
2a manufacturer of beer.
3Code section 123.45, concerning limitations on business
4interests, is amended to provide that a manufacturer of beer
5may be granted one class “B” beer permit for the purpose
6of selling beer at retail for consumption on or off the
7premises of the manufacturing facility regardless of whether
8the manufacturer is also a manufacturer of native distilled
9spirits.
10Code section 123.141, concerning keeping liquor where beer
11is sold, is amended to allow alcoholic liquor for beverage
12purposes to be used or kept at a premises for which both a class
13“B” beer permit and class “A” native distilled spirits license
14have been issued.
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