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House File 2525 - IntroducedA Bill ForAn Act 1providing for the direct shipment of alcoholic liquor
2and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.28, subsection 5, Code 2022, is
2amended to read as follows:
35. This section does not affect the right of a liquor
4control license holder to purchase, possess, or transport
5alcoholic liquors subject to this chapter. In addition, this
6section shall not impact the direct shipment of alcoholic
7liquor as regulated by section 123.42A.
8 Sec. 2. Section 123.32, subsection 1, paragraph b, Code
92022, is amended by adding the following new subparagraph:
10 NEW SUBPARAGRAPH. (4A) An alcoholic liquor direct shipper
11license as provided in section 123.42A.
12 Sec. 3. Section 123.32, subsection 1, paragraph b,
13subparagraph (11), Code 2022, is amended to read as follows:
14(11) A wine An alcoholic beverage carrier permit as provided
15in section 123.188.
16 Sec. 4. Section 123.41, subsection 1, Code 2022, is amended
17to read as follows:
181. Each completed application to obtain or renew a
19manufacturer’s license shall be submitted to the division
20electronically, or in a manner prescribed by the administrator,
21and shall be accompanied by a fee of three hundred fifty
22dollars payable to the division. The administrator may in
23accordance with this chapter grant and issue to a manufacturer
24a manufacturer’s license, valid for a one-year period after
25date of issuance, which shall allow the manufacture, storage,
26and wholesale disposition and sale of alcoholic liquors to the
27division and to customers outside of the state pursuant to the
28laws of that jurisdiction.
29 Sec. 5. Section 123.41, Code 2022, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 1A. A manufacturer of alcoholic liquor
32may ship alcoholic liquor in closed containers to individual
33purchasers inside this state by obtaining an alcoholic liquor
34direct shipper license pursuant to section 123.42A.
35 Sec. 6. NEW SECTION. 123.42A Direct shipment of alcoholic
-1-1liquor — license and requirements.
21. An alcoholic liquor manufacturer licensed or permitted
3pursuant to laws regulating alcoholic beverages in this state
4or another state may apply for an alcoholic liquor direct
5shipper license, as provided in this section. For the purposes
6of this section, an “alcoholic liquor manufacturer” means a
7business with an operating still which distills spirits, barrel
8matures spirits for a period of two years on the licensed
9premises of the distillery where matured, or blends or mixes
10spirits comprised solely of spirits distilled or barrel matured
11for a period of two years on the licensed premises of the
12distillery, and which, combining all production facilities
13of the business, produces and manufactures not more than one
14hundred thousand proof gallons of native distilled spirits on
15an annual basis.
162. a. Only an alcoholic liquor manufacturer that holds
17an alcoholic liquor direct shipper license issued pursuant to
18this section shall sell alcoholic liquor at retail for direct
19shipment to any person within this state. This section shall
20not prohibit an authorized retail licensee or permittee from
21delivering alcoholic liquor pursuant to section 123.46A.
22b. An alcoholic liquor manufacturer applying for an
23alcoholic liquor direct shipper license shall submit an
24application for the license electronically, or in a manner
25prescribed by the administrator, accompanied by a true copy
26of the manufacturer’s current alcoholic beverage license or
27permit issued by the state where the manufacturer is primarily
28located, a copy of the manufacturer’s basic permit issued by
29the alcohol and tobacco tax and trade bureau of the United
30States department of the treasury, and documents filed by the
31manufacturer with the alcohol and tobacco tax and trade bureau
32of the United States department of the treasury that show the
33total number of proof gallons of distilled spirits produced and
34manufactured by the manufacturer for the preceding calendar
35year.
-2- 1c. An application submitted pursuant to paragraph “b” shall
2be accompanied by a license fee in the amount of twenty-five
3dollars.
4d. An application submitted pursuant to paragraph “b”
5shall also be accompanied by a bond in the amount of five
6thousand dollars in the form prescribed and furnished by the
7division with good and sufficient sureties to be approved by
8the division conditioned upon compliance with this chapter.
9e. A license issued pursuant to this section may be
10renewed annually by submitting a renewal application with the
11administrator in a manner prescribed by the administrator,
12accompanied by the twenty-five dollar license fee.
133. The direct shipment of alcoholic liquor pursuant to this
14section shall be subject to the following requirements and
15restrictions:
16a. Alcoholic liquor shall only be shipped to a resident of
17this state who is at least twenty-one years of age, for the
18resident’s personal use and consumption and not for resale.
19b. Alcoholic liquor subject to direct shipping shall be
20properly registered with the federal alcohol and tobacco tax
21and trade bureau, and manufactured on the licensed premises of
22the alcoholic liquor direct shipper licensee.
23c. Alcoholic liquor subject to direct shipping shall
24be properly registered with the division. Products which
25are not listed for sale by the division must be registered
26electronically with the division for direct shipping. This
27registration will include the name of the manufacturer, the
28name of the brand, the standard of fill, the wholesale price,
29and other information as requested by the division. The
30registration shall be updated as necessary to ensure the
31division possesses an accurate, current registration.
32d. All containers of alcoholic liquor shipped directly to a
33resident of this state shall be conspicuously labeled with the
34words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
35REQUIRED FOR DELIVERY” or shall be conspicuously labeled with
-3-1alternative wording preapproved by the administrator.
2e. All containers of alcoholic liquor shipped directly
3to a resident of this state shall be shipped by a holder of
4an alcoholic beverage carrier permit as provided in section
5123.188.
6f. Shipment of alcoholic liquor pursuant to this subsection
7does not require a refund value for beverage container control
8purposes under chapter 455C.
94. An alcoholic liquor direct shipper licensee shipping
10alcoholic liquor to this state shall remit the following amount
11to the division in a manner as directed by the division:
12a. For alcoholic liquor that is listed for sale by the
13division, an amount equivalent to fifty percent of the listed
14wholesale price.
15b. For alcoholic liquor that is not listed for sale
16by the division, an amount equivalent to fifty percent of
17the wholesale price as registered with the division under
18subsection 3.
195. Each alcoholic liquor direct shipper licensee shall make
20a report under oath to the division electronically, or in a
21manner prescribed by the administrator, on or before the tenth
22day of each month, which includes the following information:
23a. The products and quantities shipped directly to residents
24of this state in the preceding month.
25b. The name and address of the individuals to whom the
26alcoholic liquor was sold in each sale.
27c. The wholesale price of the alcoholic liquor sold.
28d. The purchase price of the alcoholic liquor sold and
29the amount of taxes charged to the individual purchasing the
30alcoholic liquor.
31e. The alcoholic beverage carrier permittee who delivered
32the shipment.
33f. All documents filed by the alcoholic liquor direct
34shipper licensee with the alcohol and tobacco tax and trade
35bureau of the United States department of treasury for the
-4-1preceding month, including all production, storage, and
2processing reports.
36. The license holder at the time of filing the report as
4required by subsection 5 shall pay to the division the amount
5as required pursuant to subsection 4. A penalty of ten percent
6of the amount due shall be assessed and collected if the report
7required to be filed pursuant to this section and the amount
8required to be paid as provided by subsection 4 is not filed
9and the amount paid within the time required by this section.
107. An alcoholic liquor direct shipper licensee shall be
11deemed to have consented to the jurisdiction of the division or
12any other agency or court in this state concerning enforcement
13of this section and any related laws, rules, or regulations. A
14license holder shall allow the division to perform an audit of
15shipping records upon request.
168. A violation of this section shall subject the licensee
17to the general penalties provided in this chapter and shall
18constitute grounds for imposition of a civil penalty or
19suspension or revocation of the license pursuant to section
20123.39.
21 Sec. 7. Section 123.43A, subsection 2, Code 2022, is amended
22to read as follows:
232. A native distillery shall not sell more than one and
24one-half liters per person per day, of native distilled spirits
25on the premises of the native distillery. However, a native
26distillery which, combining all production facilities of the
27business, produces and manufactures not more than one hundred
28thousand proof gallons of native distilled spirits on an
29annual basis, may sell not more than nine liters per person
30per day, of native distilled spirits. In addition, a native
31distillery shall not directly may ship native distilled spirits
32for sale at retail manufactured by the native distillery in
33closed containers to individual purchasers inside this state by
34obtaining an alcoholic liquor direct shipper license pursuant
35to section 123.42A. The native distillery shall maintain
-5-1records of individual purchases of native distilled spirits at
2the native distillery for three years.
3 Sec. 8. Section 123.43A, subsection 7, Code 2022, is amended
4to read as follows:
57. A native distillery may sell the native distilled spirits
6it manufactures to customers outside the state, pursuant to the
7laws of that jurisdiction.
8 Sec. 9. Section 123.46A, subsection 5, Code 2022, is amended
9to read as follows:
105. Nothing in this section shall impact the direct shipment
11of alcoholic liquor as regulated by section 123.42A or the
12direct shipment of wine as regulated by section 123.187.
13 Sec. 10. Section 123.187, subsection 3, paragraph d, Code
142022, is amended to read as follows:
15d. All containers of wine shipped directly to a resident of
16this state shall be shipped by a holder of a wine an alcoholic
17beverage carrier permit as provided in section 123.188.
18 Sec. 11. Section 123.188, subsections 1, 2, and 4, Code
192022, are amended to read as follows:
201. A person desiring to deliver alcoholic liquor subject
21to direct shipment within this state pursuant to section
22123.42A and wine subject to direct shipment within this state
23pursuant to section 123.187 shall submit an application for a
24wine an alcoholic beverage carrier permit electronically, or
25in a manner prescribed by the administrator, which shall be
26accompanied by a fee in the amount of one hundred dollars.
272. The administrator may in accordance with this chapter
28issue a wine an alcoholic beverage carrier permit which shall
29be valid for one year from the date of issuance unless it is
30sooner suspended or revoked for a violation of this chapter.
314. The delivery of alcoholic liquor and wine pursuant to
32this section shall be subject to the following requirements and
33restrictions:
34a. A wine An alcoholic beverage carrier permittee shall not
35deliver alcoholic liquor or wine to any person under twenty-one
-6-1years of age, or to any person who either is or appears to be in
2an intoxicated state or condition.
3b. A wine An alcoholic beverage carrier permittee shall
4obtain valid proof of identity and age prior to delivery,
5and shall obtain the signature of an adult as a condition of
6delivery.
7c. A wine An alcoholic beverage carrier permittee shall
8maintain records of alcoholic liquor and wine shipped which
9include the permit number and name of the alcoholic liquor
10or wine manufacturer, quantity of alcoholic liquor and wine
11shipped, recipient’s name and address, and an electronic or
12paper form of signature from the recipient of the alcoholic
13liquor and wine. Records shall be submitted to the division
14on a monthly basis in a form and manner to be determined by the
15division.
16 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1,
172023.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill allows for the direct shipment of alcoholic liquor
22within the state.
23New Code section 123.42A provides for the direct shipment of
24alcoholic liquor and provides for an alcoholic liquor direct
25shipper license. The bill provides that only alcoholic liquor
26manufacturers that produce and manufacture not more than
27100,000 proof gallons of native distilled spirits on an annual
28basis are eligible for this license. Provisions governing the
29direct shipment of wine and the wine direct shipper permit are
30generally made applicable to the new Code section providing
31for the direct shipment of alcoholic liquor. In addition to
32these requirements, the new Code section requires all alcoholic
33liquor subject to direct shipping to be properly registered
34with the alcoholic beverages division and that products which
35are not listed for sale by the division must be registered
-7-1to include information on the name of the manufacturer, the
2name of the brand, the standard of fill, the wholesale price,
3and other information as requested by the division. The
4new Code section also requires each alcoholic liquor direct
5shipper licensee to make a monthly report to the alcoholic
6beverages division that lists the products and quantities
7shipped directly to residents of this state in the preceding
8month, the name and address of the individuals to whom the
9alcoholic liquor was sold in each sale, the wholesale price of
10the alcoholic liquor sold, the purchase price and taxes charged
11of the alcoholic liquor sold, the alcoholic beverage carrier
12permittee who delivered each shipment, and documents filed by
13the licensee with the alcohol and tobacco tax and trade bureau
14of the United States department of treasury for the preceding
15month, including all production, storage, and processing
16reports. Finally, the new Code section provides that an
17alcoholic liquor direct shipper licensee shall remit an amount
18to the alcoholic beverages division depending on whether the
19alcoholic liquor shipped is listed for sale by the division.
20If the alcoholic liquor is listed for sale by the division, the
21permittee shall remit to the division an amount equivalent to
2250 percent of the wholesale price paid by the division for the
23alcoholic liquor. If the alcoholic liquor is not listed for
24sale by the division, the permittee shall remit to the division
25an amount equivalent to 50 percent of the wholesale price of
26the alcoholic liquor as registered with the division. The bill
27provides that a penalty of 10 percent of the amount due shall
28be assessed and collected if the amount required to be paid to
29the division as provided by the bill is not paid within the
30time required.
31The bill allows a manufacturer of alcoholic liquor and a
32native distillery to ship alcoholic liquor or native distilled
33spirits, as applicable, to individual purchasers inside this
34state by obtaining an alcoholic liquor direct shipper license
35as established in the bill.
-8- 1Code section 123.188, providing for a wine carrier permit,
2is amended to provide for the direct shipment of alcoholic
3liquor as provided by the bill.
4The bill takes effect January 1, 2023.
-9-ec/rn
2and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.28, subsection 5, Code 2022, is
2amended to read as follows:
35. This section does not affect the right of a liquor
4control license holder to purchase, possess, or transport
5alcoholic liquors subject to this chapter. In addition, this
6section shall not impact the direct shipment of alcoholic
7liquor as regulated by section 123.42A.
8 Sec. 2. Section 123.32, subsection 1, paragraph b, Code
92022, is amended by adding the following new subparagraph:
10 NEW SUBPARAGRAPH. (4A) An alcoholic liquor direct shipper
11license as provided in section 123.42A.
12 Sec. 3. Section 123.32, subsection 1, paragraph b,
13subparagraph (11), Code 2022, is amended to read as follows:
14(11) A wine An alcoholic beverage carrier permit as provided
15in section 123.188.
16 Sec. 4. Section 123.41, subsection 1, Code 2022, is amended
17to read as follows:
181. Each completed application to obtain or renew a
19manufacturer’s license shall be submitted to the division
20electronically, or in a manner prescribed by the administrator,
21and shall be accompanied by a fee of three hundred fifty
22dollars payable to the division. The administrator may in
23accordance with this chapter grant and issue to a manufacturer
24a manufacturer’s license, valid for a one-year period after
25date of issuance, which shall allow the manufacture, storage,
26and wholesale disposition and sale of alcoholic liquors to the
27division and to customers outside of the state pursuant to the
28laws of that jurisdiction.
29 Sec. 5. Section 123.41, Code 2022, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 1A. A manufacturer of alcoholic liquor
32may ship alcoholic liquor in closed containers to individual
33purchasers inside this state by obtaining an alcoholic liquor
34direct shipper license pursuant to section 123.42A.
35 Sec. 6. NEW SECTION. 123.42A Direct shipment of alcoholic
-1-1liquor — license and requirements.
21. An alcoholic liquor manufacturer licensed or permitted
3pursuant to laws regulating alcoholic beverages in this state
4or another state may apply for an alcoholic liquor direct
5shipper license, as provided in this section. For the purposes
6of this section, an “alcoholic liquor manufacturer” means a
7business with an operating still which distills spirits, barrel
8matures spirits for a period of two years on the licensed
9premises of the distillery where matured, or blends or mixes
10spirits comprised solely of spirits distilled or barrel matured
11for a period of two years on the licensed premises of the
12distillery, and which, combining all production facilities
13of the business, produces and manufactures not more than one
14hundred thousand proof gallons of native distilled spirits on
15an annual basis.
162. a. Only an alcoholic liquor manufacturer that holds
17an alcoholic liquor direct shipper license issued pursuant to
18this section shall sell alcoholic liquor at retail for direct
19shipment to any person within this state. This section shall
20not prohibit an authorized retail licensee or permittee from
21delivering alcoholic liquor pursuant to section 123.46A.
22b. An alcoholic liquor manufacturer applying for an
23alcoholic liquor direct shipper license shall submit an
24application for the license electronically, or in a manner
25prescribed by the administrator, accompanied by a true copy
26of the manufacturer’s current alcoholic beverage license or
27permit issued by the state where the manufacturer is primarily
28located, a copy of the manufacturer’s basic permit issued by
29the alcohol and tobacco tax and trade bureau of the United
30States department of the treasury, and documents filed by the
31manufacturer with the alcohol and tobacco tax and trade bureau
32of the United States department of the treasury that show the
33total number of proof gallons of distilled spirits produced and
34manufactured by the manufacturer for the preceding calendar
35year.
-2- 1c. An application submitted pursuant to paragraph “b” shall
2be accompanied by a license fee in the amount of twenty-five
3dollars.
4d. An application submitted pursuant to paragraph “b”
5shall also be accompanied by a bond in the amount of five
6thousand dollars in the form prescribed and furnished by the
7division with good and sufficient sureties to be approved by
8the division conditioned upon compliance with this chapter.
9e. A license issued pursuant to this section may be
10renewed annually by submitting a renewal application with the
11administrator in a manner prescribed by the administrator,
12accompanied by the twenty-five dollar license fee.
133. The direct shipment of alcoholic liquor pursuant to this
14section shall be subject to the following requirements and
15restrictions:
16a. Alcoholic liquor shall only be shipped to a resident of
17this state who is at least twenty-one years of age, for the
18resident’s personal use and consumption and not for resale.
19b. Alcoholic liquor subject to direct shipping shall be
20properly registered with the federal alcohol and tobacco tax
21and trade bureau, and manufactured on the licensed premises of
22the alcoholic liquor direct shipper licensee.
23c. Alcoholic liquor subject to direct shipping shall
24be properly registered with the division. Products which
25are not listed for sale by the division must be registered
26electronically with the division for direct shipping. This
27registration will include the name of the manufacturer, the
28name of the brand, the standard of fill, the wholesale price,
29and other information as requested by the division. The
30registration shall be updated as necessary to ensure the
31division possesses an accurate, current registration.
32d. All containers of alcoholic liquor shipped directly to a
33resident of this state shall be conspicuously labeled with the
34words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
35REQUIRED FOR DELIVERY” or shall be conspicuously labeled with
-3-1alternative wording preapproved by the administrator.
2e. All containers of alcoholic liquor shipped directly
3to a resident of this state shall be shipped by a holder of
4an alcoholic beverage carrier permit as provided in section
5123.188.
6f. Shipment of alcoholic liquor pursuant to this subsection
7does not require a refund value for beverage container control
8purposes under chapter 455C.
94. An alcoholic liquor direct shipper licensee shipping
10alcoholic liquor to this state shall remit the following amount
11to the division in a manner as directed by the division:
12a. For alcoholic liquor that is listed for sale by the
13division, an amount equivalent to fifty percent of the listed
14wholesale price.
15b. For alcoholic liquor that is not listed for sale
16by the division, an amount equivalent to fifty percent of
17the wholesale price as registered with the division under
18subsection 3.
195. Each alcoholic liquor direct shipper licensee shall make
20a report under oath to the division electronically, or in a
21manner prescribed by the administrator, on or before the tenth
22day of each month, which includes the following information:
23a. The products and quantities shipped directly to residents
24of this state in the preceding month.
25b. The name and address of the individuals to whom the
26alcoholic liquor was sold in each sale.
27c. The wholesale price of the alcoholic liquor sold.
28d. The purchase price of the alcoholic liquor sold and
29the amount of taxes charged to the individual purchasing the
30alcoholic liquor.
31e. The alcoholic beverage carrier permittee who delivered
32the shipment.
33f. All documents filed by the alcoholic liquor direct
34shipper licensee with the alcohol and tobacco tax and trade
35bureau of the United States department of treasury for the
-4-1preceding month, including all production, storage, and
2processing reports.
36. The license holder at the time of filing the report as
4required by subsection 5 shall pay to the division the amount
5as required pursuant to subsection 4. A penalty of ten percent
6of the amount due shall be assessed and collected if the report
7required to be filed pursuant to this section and the amount
8required to be paid as provided by subsection 4 is not filed
9and the amount paid within the time required by this section.
107. An alcoholic liquor direct shipper licensee shall be
11deemed to have consented to the jurisdiction of the division or
12any other agency or court in this state concerning enforcement
13of this section and any related laws, rules, or regulations. A
14license holder shall allow the division to perform an audit of
15shipping records upon request.
168. A violation of this section shall subject the licensee
17to the general penalties provided in this chapter and shall
18constitute grounds for imposition of a civil penalty or
19suspension or revocation of the license pursuant to section
20123.39.
21 Sec. 7. Section 123.43A, subsection 2, Code 2022, is amended
22to read as follows:
232. A native distillery shall not sell more than one and
24one-half liters per person per day, of native distilled spirits
25on the premises of the native distillery. However, a native
26distillery which, combining all production facilities of the
27business, produces and manufactures not more than one hundred
28thousand proof gallons of native distilled spirits on an
29annual basis, may sell not more than nine liters per person
30per day, of native distilled spirits. In addition, a native
31distillery shall not directly may ship native distilled spirits
32for sale at retail manufactured by the native distillery in
33closed containers to individual purchasers inside this state by
34obtaining an alcoholic liquor direct shipper license pursuant
35to section 123.42A. The native distillery shall maintain
-5-1records of individual purchases of native distilled spirits at
2the native distillery for three years.
3 Sec. 8. Section 123.43A, subsection 7, Code 2022, is amended
4to read as follows:
57. A native distillery may sell the native distilled spirits
6it manufactures to customers outside the state, pursuant to the
7laws of that jurisdiction.
8 Sec. 9. Section 123.46A, subsection 5, Code 2022, is amended
9to read as follows:
105. Nothing in this section shall impact the direct shipment
11of alcoholic liquor as regulated by section 123.42A or the
12direct shipment of wine as regulated by section 123.187.
13 Sec. 10. Section 123.187, subsection 3, paragraph d, Code
142022, is amended to read as follows:
15d. All containers of wine shipped directly to a resident of
16this state shall be shipped by a holder of a wine an alcoholic
17beverage carrier permit as provided in section 123.188.
18 Sec. 11. Section 123.188, subsections 1, 2, and 4, Code
192022, are amended to read as follows:
201. A person desiring to deliver alcoholic liquor subject
21to direct shipment within this state pursuant to section
22123.42A and wine subject to direct shipment within this state
23pursuant to section 123.187 shall submit an application for a
24wine an alcoholic beverage carrier permit electronically, or
25in a manner prescribed by the administrator, which shall be
26accompanied by a fee in the amount of one hundred dollars.
272. The administrator may in accordance with this chapter
28issue a wine an alcoholic beverage carrier permit which shall
29be valid for one year from the date of issuance unless it is
30sooner suspended or revoked for a violation of this chapter.
314. The delivery of alcoholic liquor and wine pursuant to
32this section shall be subject to the following requirements and
33restrictions:
34a. A wine An alcoholic beverage carrier permittee shall not
35deliver alcoholic liquor or wine to any person under twenty-one
-6-1years of age, or to any person who either is or appears to be in
2an intoxicated state or condition.
3b. A wine An alcoholic beverage carrier permittee shall
4obtain valid proof of identity and age prior to delivery,
5and shall obtain the signature of an adult as a condition of
6delivery.
7c. A wine An alcoholic beverage carrier permittee shall
8maintain records of alcoholic liquor and wine shipped which
9include the permit number and name of the alcoholic liquor
10or wine manufacturer, quantity of alcoholic liquor and wine
11shipped, recipient’s name and address, and an electronic or
12paper form of signature from the recipient of the alcoholic
13liquor and wine. Records shall be submitted to the division
14on a monthly basis in a form and manner to be determined by the
15division.
16 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1,
172023.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill allows for the direct shipment of alcoholic liquor
22within the state.
23New Code section 123.42A provides for the direct shipment of
24alcoholic liquor and provides for an alcoholic liquor direct
25shipper license. The bill provides that only alcoholic liquor
26manufacturers that produce and manufacture not more than
27100,000 proof gallons of native distilled spirits on an annual
28basis are eligible for this license. Provisions governing the
29direct shipment of wine and the wine direct shipper permit are
30generally made applicable to the new Code section providing
31for the direct shipment of alcoholic liquor. In addition to
32these requirements, the new Code section requires all alcoholic
33liquor subject to direct shipping to be properly registered
34with the alcoholic beverages division and that products which
35are not listed for sale by the division must be registered
-7-1to include information on the name of the manufacturer, the
2name of the brand, the standard of fill, the wholesale price,
3and other information as requested by the division. The
4new Code section also requires each alcoholic liquor direct
5shipper licensee to make a monthly report to the alcoholic
6beverages division that lists the products and quantities
7shipped directly to residents of this state in the preceding
8month, the name and address of the individuals to whom the
9alcoholic liquor was sold in each sale, the wholesale price of
10the alcoholic liquor sold, the purchase price and taxes charged
11of the alcoholic liquor sold, the alcoholic beverage carrier
12permittee who delivered each shipment, and documents filed by
13the licensee with the alcohol and tobacco tax and trade bureau
14of the United States department of treasury for the preceding
15month, including all production, storage, and processing
16reports. Finally, the new Code section provides that an
17alcoholic liquor direct shipper licensee shall remit an amount
18to the alcoholic beverages division depending on whether the
19alcoholic liquor shipped is listed for sale by the division.
20If the alcoholic liquor is listed for sale by the division, the
21permittee shall remit to the division an amount equivalent to
2250 percent of the wholesale price paid by the division for the
23alcoholic liquor. If the alcoholic liquor is not listed for
24sale by the division, the permittee shall remit to the division
25an amount equivalent to 50 percent of the wholesale price of
26the alcoholic liquor as registered with the division. The bill
27provides that a penalty of 10 percent of the amount due shall
28be assessed and collected if the amount required to be paid to
29the division as provided by the bill is not paid within the
30time required.
31The bill allows a manufacturer of alcoholic liquor and a
32native distillery to ship alcoholic liquor or native distilled
33spirits, as applicable, to individual purchasers inside this
34state by obtaining an alcoholic liquor direct shipper license
35as established in the bill.
-8- 1Code section 123.188, providing for a wine carrier permit,
2is amended to provide for the direct shipment of alcoholic
3liquor as provided by the bill.
4The bill takes effect January 1, 2023.
-9-ec/rn