House File 260 - IntroducedA Bill ForAn Act 1providing for the direct shipment of beer and including
2effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 123.32, subsection 1, paragraph b, Code
22023, is amended by adding the following new subparagraph:
3   NEW SUBPARAGRAPH.  (06)  A beer direct shipper license as
4provided in section 123.147.
5   Sec. 2.  Section 123.46A, subsection 5, Code 2023, is amended
6to read as follows:
   75.  Nothing in this section shall impact the direct shipment
8of beer as regulated by section 123.147 or the
direct shipment
9of wine as regulated by section 123.187.
10   Sec. 3.  Section 123.136, subsection 1, Code 2023, is amended
11to read as follows:
   121.  In addition to the annual permit fee to be paid by
13all class “A” beer permittees under this chapter there shall
14be levied and collected from the permittees on all beer
15manufactured for sale or sold in this state at wholesale and
16on all beer imported into this state for sale at wholesale and
17sold in this state at wholesale, and from special class “A”
18beer permittees on all beer manufactured for consumption on the
19premises and on all beer sold at retail at the manufacturing
20premises for consumption off the premises pursuant to section
21123.130, subsection 4, a tax of five and eighty-nine hundredths
22dollars for every barrel containing thirty-one gallons, and at
23a like rate for any other quantity or for the fractional part
24of a barrel. A barrel tax shall also be levied and collected
25on the direct shipment of beer pursuant to section 123.147.

26 However, no tax shall be levied or collected on beer shipped
27outside this state by a class “A” beer permittee or special
28class “A” beer permittee or on beer sold to a class “A” beer
29permittee by a special class “A” beer permittee or another
30class “A” beer permittee.
31   Sec. 4.  Section 123.137, Code 2023, is amended by adding the
32following new subsection:
33   NEW SUBSECTION.  1A.  Each beer direct shipper license holder
34shall make a report under oath to the division electronically,
35or in a manner prescribed by the administrator, on or before
-1-1the tenth day of the calendar months of June and December,
2showing the exact number of barrels of beer and fractional
3parts of barrels sold and shipped pursuant to section 123.147
4during the preceding six-month calendar period. The report
5shall also state whatever reasonable additional information
6the administrator requires. The license holder at the time of
7filing this report shall pay to the division the amount of tax
8due at the rate fixed in section 123.136.
9   Sec. 5.  NEW SECTION.  123.147  Direct shipment of beer —
10license and requirements.
   111.  A beer manufacturer licensed or permitted pursuant to
12laws regulating alcoholic beverages in this state or another
13state may apply for a beer direct shipper permit, as provided
14in this section.
   152.  a.  Only a beer manufacturer that holds a beer direct
16shipper license issued pursuant to this section shall sell beer
17at retail for direct shipment to any person within this state.
18This section shall not prohibit an authorized retail licensee
19from delivering beer pursuant to section 123.46A.
   20b.  A beer manufacturer applying for a beer direct
21shipper license shall submit an application for the license
22electronically, or in a manner prescribed by the administrator,
23accompanied by a true copy of the manufacturer’s current
24alcoholic beverage license or permit issued by the state
25where the manufacturer is primarily located and a copy of the
26manufacturer’s basic permit issued by the alcohol and tobacco
27tax and trade bureau of the United States department of the
28treasury.
   29c.  An application submitted pursuant to paragraph “b” shall
30be accompanied by a license fee in the amount of twenty-five
31dollars.
   32d.  A license issued pursuant to this section may be
33renewed annually by submitting a renewal application with the
34administrator in a manner prescribed by the administrator,
35accompanied by the twenty-five-dollar license fee.
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   13.  The direct shipment of beer pursuant to this
2section shall be subject to the following requirements and
3restrictions:
   4a.  Beer shall only be shipped to a resident of this state
5who is at least twenty-one years of age, for the resident’s
6personal use and consumption and not for resale.
   7b.  Beer subject to direct shipping shall be properly
8registered with the federal alcohol and tobacco tax and trade
9bureau, and manufactured on the licensed premises of the beer
10direct shipper licensee.
   11c.  All containers of beer shipped directly to a resident
12of this state shall be conspicuously labeled with the words
13“CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER
14REQUIRED FOR DELIVERY” or shall be conspicuously labeled with
15alternative wording preapproved by the administrator.
   16d.  All containers of beer shipped directly to a resident
17of this state shall be shipped by a holder of an alcoholic
18beverage carrier permit as provided in section 123.188.
   19e.  Shipment of beer pursuant to this subsection does not
20require a refund value for beverage container control purposes
21under chapter 455C.
   224.  A beer direct shipper licensee shall remit to the
23division an amount equivalent to the barrel tax on beer subject
24to direct shipment at the rate specified in section 123.136
25for deposit as provided in section 123.136, subsection 2.
26The amount shall be remitted at the time and in the manner
27provided in section 123.137, subsection 1A, and the ten percent
28penalty specified in section 123.137, subsection 2, shall be
29applicable.
   305.  A beer direct shipper licensee shall be deemed to have
31consented to the jurisdiction of the division or any other
32agency or court in this state concerning enforcement of this
33section and any related laws, rules, or regulations. A license
34holder shall allow the division to perform an audit of shipping
35records upon request.
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   16.  A violation of this section shall subject the licensee
2to the general penalties provided in this chapter and shall
3constitute grounds for imposition of a civil penalty or
4suspension or revocation of the license pursuant to section
5123.39.
6   Sec. 6.  Section 123.188, subsections 1, 2, and 4, Code 2023,
7are amended to read as follows:
   81.  A person desiring to deliver beer subject to direct
9shipment within this state pursuant to section 123.147 and

10 wine subject to direct shipment within this state pursuant
11to section 123.187 shall submit an application for a wine
12
 an alcoholic beverage carrier permit electronically, or in
13a manner prescribed by the administrator, which shall be
14accompanied by a fee in the amount of one hundred dollars.
   152.  The administrator may in accordance with this chapter
16issue a wine an alcoholic beverage carrier permit which shall
17be valid for one year from the date of issuance unless it is
18sooner suspended or revoked for a violation of this chapter.
   194.  The delivery of beer and wine pursuant to this
20section shall be subject to the following requirements and
21restrictions:
   22a.  A wine An alcoholic beverage carrier permittee shall
23not deliver beer or wine to any person under twenty-one years
24of age, or to any person who either is or appears to be in an
25intoxicated state or condition.
   26b.  A wine An alcoholic beverage carrier permittee shall
27obtain valid proof of identity and age prior to delivery,
28and shall obtain the signature of an adult as a condition of
29delivery.
   30c.  A wine An alcoholic beverage carrier permittee shall
31maintain records of beer and wine shipped which include the
32permit number and name of the beer and wine manufacturer,
33quantity of beer and wine shipped, recipient’s name and
34address, and an electronic or paper form of signature from the
35recipient of the beer and wine. Records shall be submitted
-4-1to the division on a monthly basis in a form and manner to be
2determined by the division.
3   Sec. 7.  EFFECTIVE DATE.  This Act takes effect January 1,
42024.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
   8This bill allows for the direct shipment of beer within the
9state.
   10New Code section 123.147 provides for the direct shipment
11of beer and provides for a beer direct shipper license.
12Provisions governing the direct shipment of wine and the wine
13direct shipper permit are generally made applicable to the new
14Code section providing for the direct shipment of beer. The
15bill provides for application requirements and establishes the
16annual fee for the license as $25. The bill also provides that
17a licensee under the new Code section shall pay the barrel tax
18on beer subject to direct shipment at the rate specified for
19beer sold in the state. Code section 123.135, concerning the
20barrel tax, and Code section 123.136, concerning report of
21barrel sales, are made applicable to beer subject to direct
22shipment.
   23Code section 123.188, providing for a wine carrier permit,
24is amended to provide for the direct shipment of beer as
25provided by the bill.
   26The bill takes effect January 1, 2024.
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