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House Study Bill 59 - IntroducedA Bill ForAn Act 1relating to low-proof spirit beverages.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, Code 2019, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 27A. “Low-proof spirit beverage” means a
4mixed drink or cocktail that is premixed and packaged in an
5original container and contains more than six and twenty-five
6hundredths percent of alcohol by volume but not more than
7seventeen and one-half percent of alcohol by volume.
8 NEW SUBSECTION. 28A. “Mixed drink or cocktail” means an
9alcoholic beverage, composed in whole or in part of alcoholic
10liquor, that is combined with other alcoholic beverages or
11nonalcoholic beverages or ingredients including but not limited
12to ice, water, soft drinks, or flavorings.
13 Sec. 2. Section 123.130, subsections 1 and 2, Code 2019, are
14amended to read as follows:
151. Any person holding a class “A” beer permit issued by
16the division shall be authorized to manufacture and sell, or
17sell at wholesale, beer and low-proof spirit beverages for
18consumption off the premises, such sales within the state to
19be made only to persons holding subsisting class “A”, “B”, or
20“C” beer permits, both a class “C” native wine permit and a
21class “A” wine permit pursuant to section 123.178B, subsection
224, or liquor control licenses issued in accordance with the
23provisions of this chapter. A class “A” or special class “A”
24beer permit does not grant authority to manufacture wine as
25defined in section 123.3, subsection 48.
262. All class “A” premises shall be located within the
27state. All beer and low-proof spirit beverages received by
28the holder of a class “A” beer permit from the holder of a
29certificate of compliance before being resold must first come
30to rest on the licensed premises of the permit holder, must be
31inventoried, and is subject to the barrel tax when resold as
32provided in section 123.136. A class “A” beer permittee shall
33not store beer or a low-proof spirit beverage overnight except
34on premises licensed under a class “A” beer permit.
35 Sec. 3. Section 123.131, subsection 1, Code 2019, is amended
-1-1to read as follows:
21. Subject to the provisions of this chapter, any person
3holding a class “B” beer permit shall be authorized to sell
4beer and a low-proof spirit beverage for consumption on or off
5the premises. Sales of beer and a low-proof spirit beverage
6 for consumption off the premises made pursuant to this section
7shall be made in original containers except as provided in
8subsection 2. However, unless otherwise provided in this
9chapter, no sale of beer and a low-proof spirit beverage shall
10be made for consumption on the premises unless the place
11where such service is made is equipped with tables and seats
12sufficient to accommodate not less than twenty-five persons at
13one time.
14 Sec. 4. Section 123.132, subsection 1, Code 2019, is amended
15to read as follows:
161. The holder of a class “C” beer permit shall be allowed
17to sell beer and a low-proof spirit beverage to consumers
18at retail for consumption off the premises. The sales made
19pursuant to this section shall be made in original containers
20except as provided in subsection 2.
21 Sec. 5. Section 123.132, subsection 2, unnumbered paragraph
221, Code 2019, is amended to read as follows:
23Subject to the rules of the division, sales of beer made
24pursuant to this section may be made in a container other
25than the original container only if all of the following
26requirements are met:
27 Sec. 6. Section 123.136, subsection 1, Code 2019, is amended
28to read as follows:
291. In addition to the annual permit fee to be paid by
30all class “A” beer permittees under this chapter there shall
31be levied and collected from the permittees on all beer and
32low-proof spirit beverages manufactured for sale or sold in
33this state at wholesale and on all beer and low-proof spirit
34beverages imported into this state for sale at wholesale and
35sold in this state at wholesale, and from special class “A”
-2-1beer permittees on all beer manufactured for consumption on the
2premises and on all beer and low-proof spirit beverages sold
3at retail at the manufacturing premises for consumption off
4the premises pursuant to section 123.130, subsection 3, a tax
5of five and eighty-nine hundredths dollars for every barrel
6containing thirty-one gallons, and at a like rate for any other
7quantity or for the fractional part of a barrel. However,
8no tax shall be levied or collected on beer and low-proof
9spirit beverages shipped outside this state by a class “A” beer
10permittee or sold by one class “A” beer permittee to another
11class “A” beer permittee.
12 Sec. 7. Section 123.178B, subsection 4, Code 2019, is
13amended to read as follows:
144. A person holding a class “C” native wine permit and a
15class “A” wine permit whose primary purpose is manufacturing
16native wine may purchase beer and a low-proof spirit beverage
17 from a wholesaler holding a class “A” beer permit for sale at
18retail for consumption on or off the premises covered by the
19class “C” native wine permit.
20 Sec. 8. Section 123A.2, Code 2019, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 9A. “Low-proof spirit beverage” means as
23defined in section 123.3.
24 Sec. 9. NEW SECTION. 123A.13 Low-proof spirit beverage —
25applicability of chapter.
26The provisions of this chapter that apply to a brewer and
27wholesaler of beer shall apply to a manufacturer and wholesaler
28of low-proof spirit beverages.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill concerns low-proof spirit beverages.
33Code section 123.3 is amended by adding definitions for
34“low-proof spirit beverage” and “mixed drink or cocktail”.
35“Low-proof spirit beverage” is defined as a mixed drink or
-3-1cocktail that is premixed, packaged in an original container,
2and contains more than 6.25 percent, but not more than 17.5
3percent, of alcohol by volume. “Mixed drink or cocktail”
4is defined as an alcoholic beverage, consisting in whole or
5in part of alcoholic liquors, that is combined with other
6alcoholic or nonalcoholic beverages.
7The bill authorizes a class “A” beer permittee to
8manufacture and sell, or sell at wholesale, low-proof spirit
9beverages to persons holding class “A”, “B”, or “C” beer
10permits, both a class “C” native wine permit and a class “A”
11wine permit, or liquor control licenses. In addition, the
12bill provides that a holder of a class “B” beer permit may
13sell a low-proof spirit beverage for consumption on or off the
14premises and allows a holder of a class “C” beer permit to sell
15a low-proof spirit beverage for consumption off the premises.
16The bill also allows a holder of a class “C” native wine permit
17and a class “A” wine permit to purchase and sell a low-proof
18spirit beverage for consumption on or off the premises covered
19by the class “C” native wine permit.
20Code section 123.136 is amended to provide that the barrel
21tax on beer also applies to low-proof spirit beverages.
22New Code section 123A.13 provides that the provisions of
23Code chapter 123A that apply to brewers and wholesalers of beer
24also apply to manufacturers and wholesalers of low-proof spirit
25beverages.
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2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, Code 2019, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 27A. “Low-proof spirit beverage” means a
4mixed drink or cocktail that is premixed and packaged in an
5original container and contains more than six and twenty-five
6hundredths percent of alcohol by volume but not more than
7seventeen and one-half percent of alcohol by volume.
8 NEW SUBSECTION. 28A. “Mixed drink or cocktail” means an
9alcoholic beverage, composed in whole or in part of alcoholic
10liquor, that is combined with other alcoholic beverages or
11nonalcoholic beverages or ingredients including but not limited
12to ice, water, soft drinks, or flavorings.
13 Sec. 2. Section 123.130, subsections 1 and 2, Code 2019, are
14amended to read as follows:
151. Any person holding a class “A” beer permit issued by
16the division shall be authorized to manufacture and sell, or
17sell at wholesale, beer and low-proof spirit beverages for
18consumption off the premises, such sales within the state to
19be made only to persons holding subsisting class “A”, “B”, or
20“C” beer permits, both a class “C” native wine permit and a
21class “A” wine permit pursuant to section 123.178B, subsection
224, or liquor control licenses issued in accordance with the
23provisions of this chapter. A class “A” or special class “A”
24beer permit does not grant authority to manufacture wine as
25defined in section 123.3, subsection 48.
262. All class “A” premises shall be located within the
27state. All beer and low-proof spirit beverages received by
28the holder of a class “A” beer permit from the holder of a
29certificate of compliance before being resold must first come
30to rest on the licensed premises of the permit holder, must be
31inventoried, and is subject to the barrel tax when resold as
32provided in section 123.136. A class “A” beer permittee shall
33not store beer or a low-proof spirit beverage overnight except
34on premises licensed under a class “A” beer permit.
35 Sec. 3. Section 123.131, subsection 1, Code 2019, is amended
-1-1to read as follows:
21. Subject to the provisions of this chapter, any person
3holding a class “B” beer permit shall be authorized to sell
4beer and a low-proof spirit beverage for consumption on or off
5the premises. Sales of beer and a low-proof spirit beverage
6 for consumption off the premises made pursuant to this section
7shall be made in original containers except as provided in
8subsection 2. However, unless otherwise provided in this
9chapter, no sale of beer and a low-proof spirit beverage shall
10be made for consumption on the premises unless the place
11where such service is made is equipped with tables and seats
12sufficient to accommodate not less than twenty-five persons at
13one time.
14 Sec. 4. Section 123.132, subsection 1, Code 2019, is amended
15to read as follows:
161. The holder of a class “C” beer permit shall be allowed
17to sell beer and a low-proof spirit beverage to consumers
18at retail for consumption off the premises. The sales made
19pursuant to this section shall be made in original containers
20except as provided in subsection 2.
21 Sec. 5. Section 123.132, subsection 2, unnumbered paragraph
221, Code 2019, is amended to read as follows:
23Subject to the rules of the division, sales of beer made
24pursuant to this section may be made in a container other
25than the original container only if all of the following
26requirements are met:
27 Sec. 6. Section 123.136, subsection 1, Code 2019, is amended
28to read as follows:
291. In addition to the annual permit fee to be paid by
30all class “A” beer permittees under this chapter there shall
31be levied and collected from the permittees on all beer and
32low-proof spirit beverages manufactured for sale or sold in
33this state at wholesale and on all beer and low-proof spirit
34beverages imported into this state for sale at wholesale and
35sold in this state at wholesale, and from special class “A”
-2-1beer permittees on all beer manufactured for consumption on the
2premises and on all beer and low-proof spirit beverages sold
3at retail at the manufacturing premises for consumption off
4the premises pursuant to section 123.130, subsection 3, a tax
5of five and eighty-nine hundredths dollars for every barrel
6containing thirty-one gallons, and at a like rate for any other
7quantity or for the fractional part of a barrel. However,
8no tax shall be levied or collected on beer and low-proof
9spirit beverages shipped outside this state by a class “A” beer
10permittee or sold by one class “A” beer permittee to another
11class “A” beer permittee.
12 Sec. 7. Section 123.178B, subsection 4, Code 2019, is
13amended to read as follows:
144. A person holding a class “C” native wine permit and a
15class “A” wine permit whose primary purpose is manufacturing
16native wine may purchase beer and a low-proof spirit beverage
17 from a wholesaler holding a class “A” beer permit for sale at
18retail for consumption on or off the premises covered by the
19class “C” native wine permit.
20 Sec. 8. Section 123A.2, Code 2019, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 9A. “Low-proof spirit beverage” means as
23defined in section 123.3.
24 Sec. 9. NEW SECTION. 123A.13 Low-proof spirit beverage —
25applicability of chapter.
26The provisions of this chapter that apply to a brewer and
27wholesaler of beer shall apply to a manufacturer and wholesaler
28of low-proof spirit beverages.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill concerns low-proof spirit beverages.
33Code section 123.3 is amended by adding definitions for
34“low-proof spirit beverage” and “mixed drink or cocktail”.
35“Low-proof spirit beverage” is defined as a mixed drink or
-3-1cocktail that is premixed, packaged in an original container,
2and contains more than 6.25 percent, but not more than 17.5
3percent, of alcohol by volume. “Mixed drink or cocktail”
4is defined as an alcoholic beverage, consisting in whole or
5in part of alcoholic liquors, that is combined with other
6alcoholic or nonalcoholic beverages.
7The bill authorizes a class “A” beer permittee to
8manufacture and sell, or sell at wholesale, low-proof spirit
9beverages to persons holding class “A”, “B”, or “C” beer
10permits, both a class “C” native wine permit and a class “A”
11wine permit, or liquor control licenses. In addition, the
12bill provides that a holder of a class “B” beer permit may
13sell a low-proof spirit beverage for consumption on or off the
14premises and allows a holder of a class “C” beer permit to sell
15a low-proof spirit beverage for consumption off the premises.
16The bill also allows a holder of a class “C” native wine permit
17and a class “A” wine permit to purchase and sell a low-proof
18spirit beverage for consumption on or off the premises covered
19by the class “C” native wine permit.
20Code section 123.136 is amended to provide that the barrel
21tax on beer also applies to low-proof spirit beverages.
22New Code section 123A.13 provides that the provisions of
23Code chapter 123A that apply to brewers and wholesalers of beer
24also apply to manufacturers and wholesalers of low-proof spirit
25beverages.
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