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House File 639 - IntroducedA Bill ForAn Act 1authorizing the direct shipment and delivery of native
2distilled spirits, providing for fees, and making penalties
3applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, subsection 34, Code 2021, is
2amended to read as follows:
334. “Native distilled spirits” means spirits fermented,
4distilled, manufactured or, for a period of two years, barrel
5matured on the licensed premises of the native distillery
6where fermented, distilled, manufactured or matured. “Native
7distilled spirits” also includes blended or mixed spirits
8comprised solely of spirits fermented, distilled, manufactured
9 or, for a period of two years, barrel matured at a native
10distillery.
11 Sec. 2. Section 123.32, subsection 1, paragraph b, Code
122021, is amended by adding the following new subparagraphs:
13 NEW SUBPARAGRAPH. (12) A native distilled spirits direct
14shipper permit as provided in section 123.43B.
15 NEW SUBPARAGRAPH. (13) A native distilled spirits carrier
16permit as provided in section 123.43C.
17 Sec. 3. Section 123.43A, subsection 2, Code 2021, is amended
18to read as follows:
192. A native distillery shall not sell more than one and
20one-half liters per person per day, of native distilled spirits
21on the premises of the native distillery. However, a native
22distillery which, combining all production facilities of the
23business, produces and manufactures not more than one hundred
24thousand proof gallons of native distilled spirits on an annual
25basis, may sell not more than nine liters per person per day,
26of native distilled spirits. In addition, a Except as provided
27in section 123.43B, a native distillery shall not directly
28ship native distilled spirits for sale at retail. The native
29distillery shall maintain records of individual purchases of
30native distilled spirits at the native distillery for three
31years.
32 Sec. 4. NEW SECTION. 123.43B Direct shipment of native
33distilled spirits — permit and requirements.
341. A manufacturer of native distilled spirits licensed or
35permitted pursuant to laws regulating alcoholic beverages in
-1-1this state or another state may apply for a direct shipper
2permit, as provided in this section. All shipments of native
3distilled spirits shall be made through the state’s wholesale
4distribution system.
52. a. Only a manufacturer of native distilled spirits that
6holds a direct shipper permit issued pursuant to this section
7shall sell native distilled spirits at retail for direct
8shipment to any person within this state or another state.
9This section shall not prohibit an authorized retail licensee
10or permittee from delivering native distilled spirits pursuant
11to section 123.46A.
12b. A manufacturer of native distilled spirits applying
13for a direct shipper permit shall submit an application for
14the permit electronically, or in a manner prescribed by the
15administrator, accompanied by a true copy of the manufacturer’s
16current alcoholic beverage license or permit issued by the
17state where the manufacturer is primarily located and a copy
18of the manufacturer’s basic permit issued by the alcohol and
19tobacco tax and trade bureau of the United States department of
20the treasury.
21c. An application submitted pursuant to paragraph “b” shall
22be accompanied by a permit fee in the amount of twenty-five
23dollars.
24d. An application submitted pursuant to paragraph “b”
25shall also be accompanied by a bond in the amount of five
26thousand dollars in the form prescribed and furnished by the
27division with good and sufficient sureties to be approved by
28the division conditioned upon compliance with this chapter.
29e. A permit issued pursuant to this section may be
30renewed annually by submitting a renewal application with the
31administrator in a manner prescribed by the administrator,
32accompanied by the twenty-five dollar permit fee.
333. The direct shipment of native distilled spirits pursuant
34to this section shall be subject to the following requirements
35and restrictions:
-2- 1a. All native distilled spirits shipped directly to a
2resident of this state shall only be shipped to a resident
3who is at least twenty-one years of age, for the resident’s
4personal use and consumption and not for resale.
5b. Native distilled spirits subject to direct shipping shall
6be properly registered with the federal alcohol and tobacco tax
7and trade bureau, and manufactured on the native distillery
8premises of the direct shipper permittee.
9c. All containers of native distilled spirits shipped
10directly to a resident of this state shall be conspicuously
11labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF
12PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” or shall be
13conspicuously labeled with alternative wording preapproved by
14the administrator.
15d. All containers of native distilled spirits shipped
16directly to a resident of this state shall be shipped by a
17holder of a native distilled spirits carrier permit as provided
18in section 123.43C.
19e. Shipment of native distilled spirits pursuant to this
20subsection does not require a refund value for beverage
21container control purposes under chapter 455C.
224. A direct shipper permittee shall be deemed to have
23consented to the jurisdiction of the division or any other
24agency or court in this state concerning enforcement of this
25section and any related laws, rules, or regulations. A permit
26holder shall allow the division to perform an audit of shipping
27records upon request.
285. A violation of this section shall subject the permittee
29to the general penalties provided in this chapter and shall
30constitute grounds for imposition of a civil penalty or
31suspension or revocation of the permit pursuant to section
32123.39.
33 Sec. 5. NEW SECTION. 123.43C Native distilled spirits
34carrier — permit and requirements.
351. A person desiring to deliver native distilled spirits
-3-1subject to direct shipment within this state pursuant to
2section 123.43B shall submit an application for a native
3distilled spirits carrier permit electronically, or in a manner
4prescribed by the administrator, which shall be accompanied by
5a fee in the amount of one hundred dollars.
62. The administrator may in accordance with this chapter
7issue a native distilled spirits carrier permit which shall
8be valid for one year from the date of issuance unless it is
9sooner suspended or revoked for a violation of this chapter.
103. A permit issued pursuant to this section may be
11renewed annually by submitting a renewal application with the
12administrator in a manner prescribed by the administrator,
13accompanied by the one hundred dollar permit fee.
144. The delivery of native distilled spirits pursuant to
15this section shall be subject to the following requirements and
16restrictions:
17a. A native distilled spirits carrier permittee shall not
18deliver native distilled spirits to any person under twenty-one
19years of age, or to any person who either is or appears to be in
20an intoxicated state or condition.
21b. A native distilled spirits carrier permittee shall obtain
22valid proof of identity and age prior to delivery, and shall
23obtain the signature of an adult as a condition of delivery.
24c. A native distilled spirits carrier permittee shall
25maintain records of native distilled spirits shipped which
26include the permit number and name of the native distilled
27spirits manufacturer, quantity of native distilled spirits
28shipped, recipient’s name and address, and an electronic or
29paper form of signature from the recipient of the native
30distilled spirits. Records shall be submitted to the division
31on a monthly basis in a form and manner to be determined by the
32division.
335. A violation of this section shall subject the permittee
34to the general penalties provided in this chapter and shall
35constitute grounds for imposition of a civil penalty or
-4-1suspension or revocation of the permit pursuant to section
2123.39.
3 Sec. 6. Section 123.46A, subsection 4, Code 2021, is amended
4to read as follows:
54. Nothing in this section shall impact the direct shipment
6of wine as regulated by section 123.187 or direct shipment of
7native distilled spirits as regulated by section 123.89.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill authorizes a manufacturer of native distilled
12spirits licensed or permitted pursuant to state laws regulating
13alcoholic beverages to apply for a direct shipper permit. All
14shipments of native distilled spirits shall be made through
15the state’s wholesale distribution system. A direct shipper
16permit is required in order to sell native distilled spirits at
17retail for direct shipment to any person within the state or
18another state. The annual permit fee is $25. A direct shipper
19license allows a licensee to ship native distilled spirits to
20a resident of this state who is at least 21 years of age, for
21the resident’s personal use and consumption and not for resale.
22The bill requires that native distilled spirits subject to
23direct shipping be properly registered, manufactured on the
24premises of the direct shipper permittee, and conspicuously
25labeled as set out in the bill.
26The bill establishes a native distilled spirits carrier
27permit for persons to deliver native distilled spirits subject
28to direct shipment within Iowa. The annual permit fee is $100.
29The bill requires that a carrier permittee not deliver native
30distilled spirits to any person under 21 years of age, or to
31any person who either is or appears to be in an intoxicated
32state or condition; obtain valid proof of identity and age
33prior to delivery and obtain the signature of an adult as
34a condition of delivery; and maintain shipping records as
35provided in the bill.
-5- 1The bill modifies the definition of “native distilled
2spirits” by striking references to fermenting and distilling
3spirits and instead including manufacturing of spirits. Under
4current law, “manufacture” means to distill, rectify, ferment,
5brew, make, mix, concoct, or process any substance capable
6of producing a beverage containing more than one-half of one
7percent of alcohol by volume and includes blending, bottling,
8or the preparation for sale.
9Penalty provisions of Code chapter 123, including a civil
10penalty of up to $1,000 or suspension or revocation of a
11permit, are made applicable to the permits established by the
12bill.
-6-je/rn
2distilled spirits, providing for fees, and making penalties
3applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, subsection 34, Code 2021, is
2amended to read as follows:
334. “Native distilled spirits” means spirits fermented,
4distilled, manufactured or, for a period of two years, barrel
5matured on the licensed premises of the native distillery
6where fermented, distilled, manufactured or matured. “Native
7distilled spirits” also includes blended or mixed spirits
8comprised solely of spirits fermented, distilled, manufactured
9 or, for a period of two years, barrel matured at a native
10distillery.
11 Sec. 2. Section 123.32, subsection 1, paragraph b, Code
122021, is amended by adding the following new subparagraphs:
13 NEW SUBPARAGRAPH. (12) A native distilled spirits direct
14shipper permit as provided in section 123.43B.
15 NEW SUBPARAGRAPH. (13) A native distilled spirits carrier
16permit as provided in section 123.43C.
17 Sec. 3. Section 123.43A, subsection 2, Code 2021, is amended
18to read as follows:
192. A native distillery shall not sell more than one and
20one-half liters per person per day, of native distilled spirits
21on the premises of the native distillery. However, a native
22distillery which, combining all production facilities of the
23business, produces and manufactures not more than one hundred
24thousand proof gallons of native distilled spirits on an annual
25basis, may sell not more than nine liters per person per day,
26of native distilled spirits. In addition, a Except as provided
27in section 123.43B, a native distillery shall not directly
28ship native distilled spirits for sale at retail. The native
29distillery shall maintain records of individual purchases of
30native distilled spirits at the native distillery for three
31years.
32 Sec. 4. NEW SECTION. 123.43B Direct shipment of native
33distilled spirits — permit and requirements.
341. A manufacturer of native distilled spirits licensed or
35permitted pursuant to laws regulating alcoholic beverages in
-1-1this state or another state may apply for a direct shipper
2permit, as provided in this section. All shipments of native
3distilled spirits shall be made through the state’s wholesale
4distribution system.
52. a. Only a manufacturer of native distilled spirits that
6holds a direct shipper permit issued pursuant to this section
7shall sell native distilled spirits at retail for direct
8shipment to any person within this state or another state.
9This section shall not prohibit an authorized retail licensee
10or permittee from delivering native distilled spirits pursuant
11to section 123.46A.
12b. A manufacturer of native distilled spirits applying
13for a direct shipper permit shall submit an application for
14the permit electronically, or in a manner prescribed by the
15administrator, accompanied by a true copy of the manufacturer’s
16current alcoholic beverage license or permit issued by the
17state where the manufacturer is primarily located and a copy
18of the manufacturer’s basic permit issued by the alcohol and
19tobacco tax and trade bureau of the United States department of
20the treasury.
21c. An application submitted pursuant to paragraph “b” shall
22be accompanied by a permit fee in the amount of twenty-five
23dollars.
24d. An application submitted pursuant to paragraph “b”
25shall also be accompanied by a bond in the amount of five
26thousand dollars in the form prescribed and furnished by the
27division with good and sufficient sureties to be approved by
28the division conditioned upon compliance with this chapter.
29e. A permit issued pursuant to this section may be
30renewed annually by submitting a renewal application with the
31administrator in a manner prescribed by the administrator,
32accompanied by the twenty-five dollar permit fee.
333. The direct shipment of native distilled spirits pursuant
34to this section shall be subject to the following requirements
35and restrictions:
-2- 1a. All native distilled spirits shipped directly to a
2resident of this state shall only be shipped to a resident
3who is at least twenty-one years of age, for the resident’s
4personal use and consumption and not for resale.
5b. Native distilled spirits subject to direct shipping shall
6be properly registered with the federal alcohol and tobacco tax
7and trade bureau, and manufactured on the native distillery
8premises of the direct shipper permittee.
9c. All containers of native distilled spirits shipped
10directly to a resident of this state shall be conspicuously
11labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF
12PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” or shall be
13conspicuously labeled with alternative wording preapproved by
14the administrator.
15d. All containers of native distilled spirits shipped
16directly to a resident of this state shall be shipped by a
17holder of a native distilled spirits carrier permit as provided
18in section 123.43C.
19e. Shipment of native distilled spirits pursuant to this
20subsection does not require a refund value for beverage
21container control purposes under chapter 455C.
224. A direct shipper permittee shall be deemed to have
23consented to the jurisdiction of the division or any other
24agency or court in this state concerning enforcement of this
25section and any related laws, rules, or regulations. A permit
26holder shall allow the division to perform an audit of shipping
27records upon request.
285. A violation of this section shall subject the permittee
29to the general penalties provided in this chapter and shall
30constitute grounds for imposition of a civil penalty or
31suspension or revocation of the permit pursuant to section
32123.39.
33 Sec. 5. NEW SECTION. 123.43C Native distilled spirits
34carrier — permit and requirements.
351. A person desiring to deliver native distilled spirits
-3-1subject to direct shipment within this state pursuant to
2section 123.43B shall submit an application for a native
3distilled spirits carrier permit electronically, or in a manner
4prescribed by the administrator, which shall be accompanied by
5a fee in the amount of one hundred dollars.
62. The administrator may in accordance with this chapter
7issue a native distilled spirits carrier permit which shall
8be valid for one year from the date of issuance unless it is
9sooner suspended or revoked for a violation of this chapter.
103. A permit issued pursuant to this section may be
11renewed annually by submitting a renewal application with the
12administrator in a manner prescribed by the administrator,
13accompanied by the one hundred dollar permit fee.
144. The delivery of native distilled spirits pursuant to
15this section shall be subject to the following requirements and
16restrictions:
17a. A native distilled spirits carrier permittee shall not
18deliver native distilled spirits to any person under twenty-one
19years of age, or to any person who either is or appears to be in
20an intoxicated state or condition.
21b. A native distilled spirits carrier permittee shall obtain
22valid proof of identity and age prior to delivery, and shall
23obtain the signature of an adult as a condition of delivery.
24c. A native distilled spirits carrier permittee shall
25maintain records of native distilled spirits shipped which
26include the permit number and name of the native distilled
27spirits manufacturer, quantity of native distilled spirits
28shipped, recipient’s name and address, and an electronic or
29paper form of signature from the recipient of the native
30distilled spirits. Records shall be submitted to the division
31on a monthly basis in a form and manner to be determined by the
32division.
335. A violation of this section shall subject the permittee
34to the general penalties provided in this chapter and shall
35constitute grounds for imposition of a civil penalty or
-4-1suspension or revocation of the permit pursuant to section
2123.39.
3 Sec. 6. Section 123.46A, subsection 4, Code 2021, is amended
4to read as follows:
54. Nothing in this section shall impact the direct shipment
6of wine as regulated by section 123.187 or direct shipment of
7native distilled spirits as regulated by section 123.89.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill authorizes a manufacturer of native distilled
12spirits licensed or permitted pursuant to state laws regulating
13alcoholic beverages to apply for a direct shipper permit. All
14shipments of native distilled spirits shall be made through
15the state’s wholesale distribution system. A direct shipper
16permit is required in order to sell native distilled spirits at
17retail for direct shipment to any person within the state or
18another state. The annual permit fee is $25. A direct shipper
19license allows a licensee to ship native distilled spirits to
20a resident of this state who is at least 21 years of age, for
21the resident’s personal use and consumption and not for resale.
22The bill requires that native distilled spirits subject to
23direct shipping be properly registered, manufactured on the
24premises of the direct shipper permittee, and conspicuously
25labeled as set out in the bill.
26The bill establishes a native distilled spirits carrier
27permit for persons to deliver native distilled spirits subject
28to direct shipment within Iowa. The annual permit fee is $100.
29The bill requires that a carrier permittee not deliver native
30distilled spirits to any person under 21 years of age, or to
31any person who either is or appears to be in an intoxicated
32state or condition; obtain valid proof of identity and age
33prior to delivery and obtain the signature of an adult as
34a condition of delivery; and maintain shipping records as
35provided in the bill.
-5- 1The bill modifies the definition of “native distilled
2spirits” by striking references to fermenting and distilling
3spirits and instead including manufacturing of spirits. Under
4current law, “manufacture” means to distill, rectify, ferment,
5brew, make, mix, concoct, or process any substance capable
6of producing a beverage containing more than one-half of one
7percent of alcohol by volume and includes blending, bottling,
8or the preparation for sale.
9Penalty provisions of Code chapter 123, including a civil
10penalty of up to $1,000 or suspension or revocation of a
11permit, are made applicable to the permits established by the
12bill.
-6-je/rn