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House File 668 - ReprintedA Bill ForAn Act 1concerning alcoholic beverage control, relating to
2limitations on business interests of certain manufacturers,
3wholesalers, and retailers of alcoholic beverages.
4BE 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 subsection:
3 NEW SUBSECTION. 24A. “Institutional investor” means a
4person who maintains a diversified portfolio of investments
5through a state or federally chartered bank, a mutual fund,
6a retirement plan or account created by an employer, the
7person, or another individual to provide retirement benefits or
8deferred compensation to the person, a private investment firm,
9or a holding company publicly traded on the New York stock
10exchange, the American stock exchange, or NASDAQ stock market
11and who has a majority of investments in businesses other than
12businesses that manufacture, bottle, wholesale, or sell at
13retail alcoholic beverages.
14 Sec. 2. Section 123.45, subsection 1, unnumbered paragraph
151, Code 2019, is amended to read as follows:
16A Subject to such exceptions as otherwise authorized
17under this chapter, a person engaged in the business of
18manufacturing, bottling, or wholesaling alcoholic beverages,
19wine, or beer excluding an institutional investor, or any
20jobber, representative, broker, employee, or agent of such a
21person, shall not do any of the following:
22 Sec. 3. Section 123.45, subsection 1, paragraphs c and d,
23Code 2019, are amended to read as follows:
24c. Directly or indirectly be interested in the ownership,
25conduct, or operation of the business of another licensee or
26permittee authorized under this chapter to sell at retail,
27unless the licensee or permittee authorized under this
28chapter to sell at retail does not purchase or sell the
29alcoholic beverages of the person engaged in the business of
30manufacturing, bottling, or wholesaling alcoholic beverages.
31However, the licensee or permittee authorized under this
32chapter to sell at retail may purchase and sell the wine of the
33person engaged in the business of manufacturing wine that is
34not native wine provided the licensed premises is the principal
35office, as defined in section 490.140, of the person.
-1- 1d. Hold a retail liquor control license or retail wine or
2beer permit, unless the licensee or permittee holding a retail
3liquor control license or retail wine or beer permit does not
4purchase or sell the alcoholic beverages of the person engaged
5in the business of manufacturing, bottling, or wholesaling
6alcoholic beverages. However, a person engaged in the business
7of manufacturing wine that is not native wine may purchase and
8sell the person’s wine under the authority of a special class
9“C” liquor control license and a class “B” wine permit provided
10the licensed premises is the principal office, as defined in
11section 490.140, of the person.
12 Sec. 4. Section 123.45, Code 2019, is amended by adding the
13following new subsections:
14 NEW SUBSECTION. 1A. Notwithstanding any provision of law to
15the contrary, a broker, employee, or agent of a person engaged
16in the business of manufacturing, bottling, or wholesaling
17alcoholic beverages may be a broker, employee, or agent of
18another person engaged in the business of manufacturing,
19bottling, or wholesaling alcoholic beverages or a broker,
20employee, or agent of a business authorized under this chapter
21to sell alcoholic beverages at retail as long as the broker,
22employee, or agent is not an officer, owner, director, or
23employee in a position to exercise any control or influence
24over the types of sales or the purchasing of alcoholic
25beverages in either position of employment.
26 NEW SUBSECTION. 4. The exceptions established by
27subsection 1 to the general prohibition against tied interests
28shall be limited to their express terms so as not to undermine
29the general prohibition and shall therefore be construed
30accordingly, and shall not be construed to affect exceptions
31to the general prohibition against tied interests as otherwise
32authorized under this chapter.
33 Sec. 5. Section 123.130, subsection 1, Code 2019, is amended
34to read as follows:
351. a. Any person holding a class “A” beer permit issued
-2-1by the division shall be authorized to manufacture and sell,
2or sell at wholesale, beer for consumption off the premises,
3such sales within the state to be made only to persons holding
4subsisting class “A”, “B”, or “C” beer permits, both a class
5“C” native wine permit and a class “A” wine permit pursuant
6to section 123.178B, subsection 4, or liquor control licenses
7issued in accordance with the provisions of this chapter.
8However, a person holding a class “A” beer permit issued by
9the division who also holds a brewer’s notice issued by the
10alcohol and tobacco tax and trade bureau of the United States
11department of the treasury shall be authorized to sell, at
12wholesale, no more than thirty thousand barrels of beer on an
13annual basis for consumption off the premises to a licensee or
14permittee authorized under this chapter to sell beer at retail.
15b. A class “A” or special class “A” beer permit does not
16grant authority to manufacture wine as defined in section
17123.3, subsection 48.
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2limitations on business interests of certain manufacturers,
3wholesalers, and retailers of alcoholic beverages.
4BE 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 subsection:
3 NEW SUBSECTION. 24A. “Institutional investor” means a
4person who maintains a diversified portfolio of investments
5through a state or federally chartered bank, a mutual fund,
6a retirement plan or account created by an employer, the
7person, or another individual to provide retirement benefits or
8deferred compensation to the person, a private investment firm,
9or a holding company publicly traded on the New York stock
10exchange, the American stock exchange, or NASDAQ stock market
11and who has a majority of investments in businesses other than
12businesses that manufacture, bottle, wholesale, or sell at
13retail alcoholic beverages.
14 Sec. 2. Section 123.45, subsection 1, unnumbered paragraph
151, Code 2019, is amended to read as follows:
16A Subject to such exceptions as otherwise authorized
17under this chapter, a person engaged in the business of
18manufacturing, bottling, or wholesaling alcoholic beverages,
19wine, or beer excluding an institutional investor, or any
20jobber, representative, broker, employee, or agent of such a
21person, shall not do any of the following:
22 Sec. 3. Section 123.45, subsection 1, paragraphs c and d,
23Code 2019, are amended to read as follows:
24c. Directly or indirectly be interested in the ownership,
25conduct, or operation of the business of another licensee or
26permittee authorized under this chapter to sell at retail,
27unless the licensee or permittee authorized under this
28chapter to sell at retail does not purchase or sell the
29alcoholic beverages of the person engaged in the business of
30manufacturing, bottling, or wholesaling alcoholic beverages.
31However, the licensee or permittee authorized under this
32chapter to sell at retail may purchase and sell the wine of the
33person engaged in the business of manufacturing wine that is
34not native wine provided the licensed premises is the principal
35office, as defined in section 490.140, of the person.
-1- 1d. Hold a retail liquor control license or retail wine or
2beer permit, unless the licensee or permittee holding a retail
3liquor control license or retail wine or beer permit does not
4purchase or sell the alcoholic beverages of the person engaged
5in the business of manufacturing, bottling, or wholesaling
6alcoholic beverages. However, a person engaged in the business
7of manufacturing wine that is not native wine may purchase and
8sell the person’s wine under the authority of a special class
9“C” liquor control license and a class “B” wine permit provided
10the licensed premises is the principal office, as defined in
11section 490.140, of the person.
12 Sec. 4. Section 123.45, Code 2019, is amended by adding the
13following new subsections:
14 NEW SUBSECTION. 1A. Notwithstanding any provision of law to
15the contrary, a broker, employee, or agent of a person engaged
16in the business of manufacturing, bottling, or wholesaling
17alcoholic beverages may be a broker, employee, or agent of
18another person engaged in the business of manufacturing,
19bottling, or wholesaling alcoholic beverages or a broker,
20employee, or agent of a business authorized under this chapter
21to sell alcoholic beverages at retail as long as the broker,
22employee, or agent is not an officer, owner, director, or
23employee in a position to exercise any control or influence
24over the types of sales or the purchasing of alcoholic
25beverages in either position of employment.
26 NEW SUBSECTION. 4. The exceptions established by
27subsection 1 to the general prohibition against tied interests
28shall be limited to their express terms so as not to undermine
29the general prohibition and shall therefore be construed
30accordingly, and shall not be construed to affect exceptions
31to the general prohibition against tied interests as otherwise
32authorized under this chapter.
33 Sec. 5. Section 123.130, subsection 1, Code 2019, is amended
34to read as follows:
351. a. Any person holding a class “A” beer permit issued
-2-1by the division shall be authorized to manufacture and sell,
2or sell at wholesale, beer for consumption off the premises,
3such sales within the state to be made only to persons holding
4subsisting class “A”, “B”, or “C” beer permits, both a class
5“C” native wine permit and a class “A” wine permit pursuant
6to section 123.178B, subsection 4, or liquor control licenses
7issued in accordance with the provisions of this chapter.
8However, a person holding a class “A” beer permit issued by
9the division who also holds a brewer’s notice issued by the
10alcohol and tobacco tax and trade bureau of the United States
11department of the treasury shall be authorized to sell, at
12wholesale, no more than thirty thousand barrels of beer on an
13annual basis for consumption off the premises to a licensee or
14permittee authorized under this chapter to sell beer at retail.
15b. A class “A” or special class “A” beer permit does not
16grant authority to manufacture wine as defined in section
17123.3, subsection 48.
ec/rn/md