Bill Text: IA HF2670 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing for the direct shipment of alcoholic liquor and including effective date provisions.(Formerly HF 2629, HF 83.)
Spectrum: Committee Bill
Status: (Introduced) 2024-03-20 - Introduced, placed on Ways and Means calendar. H.J. 629. [HF2670 Detail]
Download: Iowa-2023-HF2670-Introduced.html
House
File
2670
-
Introduced
HOUSE
FILE
2670
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2629)
(SUCCESSOR
TO
HF
83)
A
BILL
FOR
An
Act
providing
for
the
direct
shipment
of
alcoholic
liquor
1
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
123.28,
subsection
5,
Code
2024,
is
1
amended
to
read
as
follows:
2
5.
This
section
does
not
affect
the
right
of
a
retail
3
alcohol
license
holder
to
purchase,
possess,
or
transport
4
alcoholic
liquors
subject
to
this
chapter
.
In
addition,
this
5
section
shall
not
impact
the
direct
shipment
of
alcoholic
6
liquor
as
regulated
by
section
123.42A.
7
Sec.
2.
Section
123.32,
subsection
1,
paragraph
b,
Code
8
2024,
is
amended
by
adding
the
following
new
subparagraph:
9
NEW
SUBPARAGRAPH
.
(05)
An
alcoholic
liquor
direct
shipper
10
license
as
provided
in
section
123.42A.
11
Sec.
3.
Section
123.32,
subsection
1,
paragraph
b,
12
subparagraph
(10),
Code
2024,
is
amended
to
read
as
follows:
13
(10)
A
wine
An
alcoholic
beverage
carrier
permit
as
provided
14
in
section
123.188
.
15
Sec.
4.
Section
123.39,
subsection
1,
paragraph
a,
16
subparagraph
(2),
Code
2024,
is
amended
to
read
as
follows:
17
(2)
The
director
may
suspend
a
certificate
of
compliance,
a
18
class
“D”
retail
alcohol
license,
a
manufacturer’s
license,
a
19
broker’s
permit,
a
class
“A”
native
distilled
spirits
license,
20
a
class
“A”
or
special
class
“A”
beer
permit,
a
class
“A”
wine
21
permit,
a
wine
direct
shipper’s
permit,
or
a
wine
an
alcoholic
22
beverage
carrier
permit
for
a
period
not
to
exceed
one
year,
23
revoke
the
license,
permit,
or
certificate,
or
impose
a
civil
24
penalty
not
to
exceed
one
thousand
dollars
per
violation.
25
Sec.
5.
Section
123.41,
subsection
1,
Code
2024,
is
amended
26
to
read
as
follows:
27
1.
Each
completed
application
to
obtain
or
renew
a
28
manufacturer’s
license
shall
be
submitted
to
the
department
29
electronically,
or
in
a
manner
prescribed
by
the
director,
and
30
shall
be
accompanied
by
a
fee
of
three
hundred
dollars
payable
31
to
the
department.
The
director
may
in
accordance
with
this
32
chapter
grant
and
issue
to
a
manufacturer
a
manufacturer’s
33
license,
valid
for
a
one-year
period
after
date
of
issuance,
34
which
shall
allow
the
manufacture,
storage,
and
wholesale
35
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disposition
and
sale
of
alcoholic
liquors
to
the
department
and
1
to
customers
outside
of
the
state
pursuant
to
the
laws
of
that
2
jurisdiction
.
3
Sec.
6.
Section
123.41,
Code
2024,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
1A.
A
manufacturer
of
alcoholic
liquor
6
may
ship
alcoholic
liquor
in
closed
containers
to
individual
7
purchasers
inside
this
state
by
obtaining
an
alcoholic
liquor
8
direct
shipper
license
pursuant
to
section
123.42A.
9
Sec.
7.
NEW
SECTION
.
123.42A
Direct
shipment
of
alcoholic
10
liquor
——
license
and
requirements.
11
1.
An
alcoholic
liquor
manufacturer
licensed
or
permitted
12
pursuant
to
laws
regulating
alcoholic
beverages
in
this
state
13
or
another
state
may
apply
for
an
alcoholic
liquor
direct
14
shipper
license,
as
provided
in
this
section.
For
the
purposes
15
of
this
section,
an
“alcoholic
liquor
manufacturer”
means
a
16
business
with
an
operating
still
which
distills
spirits,
barrel
17
matures
spirits
for
a
period
of
two
years
on
the
licensed
18
premises
of
the
distillery
where
matured,
or
blends
or
mixes
19
spirits
comprised
solely
of
spirits
distilled
or
barrel
matured
20
for
a
period
of
two
years
on
the
licensed
premises
of
the
21
distillery.
22
2.
a.
Only
an
alcoholic
liquor
manufacturer
that
holds
23
an
alcoholic
liquor
direct
shipper
license
issued
pursuant
to
24
this
section
shall
sell
alcoholic
liquor
at
retail
for
direct
25
shipment
to
any
person
within
this
state.
This
section
shall
26
not
prohibit
an
authorized
retail
licensee
or
permittee
from
27
delivering
alcoholic
liquor
pursuant
to
section
123.46A.
28
b.
An
alcoholic
liquor
manufacturer
applying
for
an
29
alcoholic
liquor
direct
shipper
license
shall
submit
an
30
application
for
the
license
electronically,
or
in
a
manner
31
prescribed
by
the
director,
accompanied
by
a
true
copy
of
32
the
manufacturer’s
current
alcoholic
beverage
license
or
33
permit
issued
by
the
state
where
the
manufacturer
is
primarily
34
located,
a
copy
of
the
manufacturer’s
basic
permit
issued
by
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the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
1
States
department
of
the
treasury,
and
documents
filed
by
the
2
manufacturer
with
the
alcohol
and
tobacco
tax
and
trade
bureau
3
of
the
United
States
department
of
the
treasury
that
show
the
4
total
number
of
proof
gallons
of
distilled
spirits
produced
and
5
manufactured
by
the
manufacturer
for
the
preceding
calendar
6
year.
7
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
8
be
accompanied
by
a
license
fee
in
the
amount
of
twenty-five
9
dollars.
10
d.
A
license
issued
pursuant
to
this
section
may
be
renewed
11
annually
by
submitting
a
renewal
application
with
the
director
12
in
a
manner
prescribed
by
the
director,
accompanied
by
the
13
twenty-five
dollar
license
fee.
14
3.
The
direct
shipment
of
alcoholic
liquor
pursuant
to
this
15
section
shall
be
subject
to
the
following
requirements
and
16
restrictions:
17
a.
Alcoholic
liquor
shall
only
be
shipped
to
a
resident
of
18
this
state
who
is
at
least
twenty-one
years
of
age,
for
the
19
resident’s
personal
use
and
consumption
and
not
for
resale
as
20
follows:
21
(1)
An
alcoholic
liquor
direct
shipper
licensee
may
sell
22
and
ship
alcoholic
liquor
to
any
person
who
is
at
least
23
twenty-one
years
of
age
for
personal
use
and
not
for
resale
if
24
the
licensee
produces
in,
or
imports
into,
the
United
States
25
one
hundred
fifty
thousand
proof
gallons
or
fewer
of
distilled
26
spirits
per
calendar
year.
27
(2)
An
alcoholic
liquor
direct
shipper
licensee
may
sell
and
28
ship
up
to
nine
liters
of
alcoholic
liquor
per
calendar
year
to
29
any
person
who
is
at
least
twenty-one
years
of
age
for
personal
30
use
and
not
for
resale
if
the
licensee
produces
in,
or
imports
31
into,
the
United
States
more
than
one
hundred
fifty
thousand
32
proof
gallons
of
distilled
spirits
per
calendar
year.
33
b.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
34
properly
registered
with
the
federal
alcohol
and
tobacco
tax
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and
trade
bureau,
and
manufactured
on
the
licensed
premises
of
1
the
alcoholic
liquor
direct
shipper
licensee.
2
c.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
3
properly
registered
with
the
department.
Products
which
are
4
not
listed
for
sale
by
the
department
must
be
registered
5
electronically
with
the
department
for
direct
shipping.
This
6
registration
will
include
the
name
of
the
manufacturer,
the
7
name
of
the
brand,
the
standard
of
fill,
the
wholesale
price,
8
and
other
information
as
requested
by
the
department.
The
9
registration
shall
be
updated
as
necessary
to
ensure
the
10
department
possesses
an
accurate,
current
registration.
11
d.
All
containers
of
alcoholic
liquor
shipped
directly
to
a
12
resident
of
this
state
shall
be
conspicuously
labeled
with
the
13
words
“CONTAINS
ALCOHOL:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
14
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
15
alternative
wording
preapproved
by
the
director.
16
e.
All
containers
of
alcoholic
liquor
shipped
directly
17
to
a
resident
of
this
state
shall
be
shipped
by
a
holder
of
18
an
alcoholic
beverage
carrier
permit
as
provided
in
section
19
123.188.
20
f.
Shipment
of
alcoholic
liquor
pursuant
to
this
subsection
21
does
not
require
a
refund
value
for
beverage
container
control
22
purposes
under
chapter
455C.
23
4.
An
alcoholic
liquor
direct
shipper
licensee
shipping
24
alcoholic
liquor
to
this
state
shall
remit
the
following
amount
25
to
the
department
in
a
manner
as
directed
by
the
department:
26
a.
For
alcoholic
liquor
that
is
listed
for
sale
by
the
27
department,
an
amount
equivalent
to
fifty
percent
of
the
listed
28
wholesale
price.
29
b.
For
alcoholic
liquor
that
is
not
listed
for
sale
by
30
the
department,
an
amount
equivalent
to
fifty
percent
of
31
the
wholesale
price
as
registered
with
the
department
under
32
subsection
3.
33
5.
Each
alcoholic
liquor
direct
shipper
licensee
shall
make
34
a
report
under
oath
to
the
department
electronically,
or
in
a
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manner
prescribed
by
the
director,
on
or
before
the
tenth
day
1
of
each
month,
which
includes
the
following
information:
2
a.
The
products
and
quantities
shipped
directly
to
residents
3
of
this
state
in
the
preceding
month.
4
b.
The
name
and
address
of
the
individuals
to
whom
the
5
alcoholic
liquor
was
sold
in
each
sale.
6
c.
The
wholesale
price
of
the
alcoholic
liquor
sold.
7
d.
The
purchase
price
of
the
alcoholic
liquor
sold
and
8
the
amount
of
taxes
charged
to
the
individual
purchasing
the
9
alcoholic
liquor.
10
e.
The
alcoholic
beverage
carrier
permittee
who
delivered
11
the
shipment.
12
f.
All
documents
filed
by
the
alcoholic
liquor
direct
13
shipper
licensee
with
the
alcohol
and
tobacco
tax
and
trade
14
bureau
of
the
United
States
department
of
treasury
for
the
15
preceding
month,
including
all
production,
storage,
and
16
processing
reports.
17
6.
The
license
holder
at
the
time
of
filing
the
report
as
18
required
by
subsection
5
shall
pay
to
the
department
the
amount
19
as
required
pursuant
to
subsection
4.
A
penalty
of
ten
percent
20
of
the
amount
due
shall
be
assessed
and
collected
if
the
report
21
required
to
be
filed
pursuant
to
this
section
and
the
amount
22
required
to
be
paid
as
provided
by
subsection
4
is
not
filed
23
and
the
amount
paid
within
the
time
required
by
this
section.
24
7.
An
alcoholic
liquor
direct
shipper
licensee
shall
be
25
deemed
to
have
consented
to
the
jurisdiction
of
the
department
26
or
any
other
agency
or
court
in
this
state
concerning
27
enforcement
of
this
section
and
any
related
laws,
rules,
or
28
regulations.
A
license
holder
shall
allow
the
department
to
29
perform
an
audit
of
shipping
records
upon
request.
30
8.
A
violation
of
this
section
shall
subject
the
licensee
31
to
the
general
penalties
provided
in
this
chapter
and
shall
32
constitute
grounds
for
imposition
of
a
civil
penalty
or
33
suspension
or
revocation
of
the
license
pursuant
to
section
34
123.39.
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Sec.
8.
Section
123.43A,
subsection
2,
Code
2024,
is
amended
1
to
read
as
follows:
2
2.
A
native
distillery
shall
not
sell
more
than
nine
3
liters
per
person
per
day,
of
native
distilled
spirits
on
4
the
premises
of
the
native
distillery.
However,
a
native
5
distillery
shall
not
directly
may
ship
native
distilled
spirits
6
for
sale
at
retail
manufactured
by
the
native
distillery
in
7
closed
containers
to
individual
purchasers
inside
the
state
by
8
obtaining
an
alcoholic
liquor
direct
shipper
license
pursuant
9
to
section
123.42A
.
The
native
distillery
shall
maintain
10
records
of
individual
purchases
of
native
distilled
spirits
at
11
the
native
distillery
for
three
years.
12
Sec.
9.
Section
123.43A,
subsection
7,
Code
2024,
is
amended
13
to
read
as
follows:
14
7.
A
native
distillery
may
sell
the
native
distilled
spirits
15
it
manufactures
to
customers
outside
the
state
,
pursuant
to
the
16
laws
of
that
jurisdiction
.
17
Sec.
10.
Section
123.46A,
subsection
5,
Code
2024,
is
18
amended
to
read
as
follows:
19
5.
Nothing
in
this
section
shall
impact
the
direct
shipment
20
of
alcoholic
liquor
as
regulated
by
section
123.42A
or
the
21
direct
shipment
of
wine
as
regulated
by
section
123.187
.
22
Sec.
11.
Section
123.187,
subsection
3,
paragraph
d,
Code
23
2024,
is
amended
to
read
as
follows:
24
d.
All
containers
of
wine
shipped
directly
to
a
resident
of
25
this
state
shall
be
shipped
by
a
holder
of
a
wine
an
alcoholic
26
beverage
carrier
permit
as
provided
in
section
123.188
.
27
Sec.
12.
Section
123.188,
subsections
1,
2,
and
4,
Code
28
2024,
are
amended
to
read
as
follows:
29
1.
A
person
desiring
to
deliver
alcoholic
liquor
subject
to
30
direct
shipment
within
this
state
pursuant
to
section
123.42A
31
and
wine
subject
to
direct
shipment
within
this
state
pursuant
32
to
section
123.187
shall
submit
an
application
for
a
wine
an
33
alcoholic
beverage
carrier
permit
electronically,
or
in
a
34
manner
prescribed
by
the
director,
which
shall
be
accompanied
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by
a
fee
in
the
amount
of
one
hundred
dollars.
1
2.
The
director
may
in
accordance
with
this
chapter
issue
a
2
wine
an
alcoholic
beverage
carrier
permit
which
shall
be
valid
3
for
one
year
from
the
date
of
issuance
unless
it
is
sooner
4
suspended
or
revoked
for
a
violation
of
this
chapter
.
5
4.
The
delivery
of
alcoholic
liquor
and
wine
pursuant
to
6
this
section
shall
be
subject
to
the
following
requirements
and
7
restrictions:
8
a.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
not
9
deliver
alcoholic
liquor
or
wine
to
any
person
under
twenty-one
10
years
of
age,
or
to
any
person
who
either
is
or
appears
to
be
in
11
an
intoxicated
state
or
condition.
12
b.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
13
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
14
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
15
delivery.
16
c.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
17
maintain
records
of
alcoholic
liquor
and
wine
shipped
which
18
include
the
permit
number
and
name
of
the
alcoholic
liquor
19
and
wine
manufacturer,
quantity
of
alcoholic
liquor
and
wine
20
shipped,
recipient’s
name
and
address,
and
an
electronic
or
21
paper
form
of
signature
from
the
recipient
of
the
alcoholic
22
liquor
and
wine.
Records
shall
be
submitted
to
the
department
23
on
a
monthly
basis
in
a
form
and
manner
to
be
determined
by
the
24
department.
25
Sec.
13.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
26
2025.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
allows
for
the
direct
shipment
of
alcoholic
liquor
31
within
the
state.
32
New
Code
section
123.42A
provides
for
the
direct
shipment
of
33
alcoholic
liquor
and
provides
for
an
alcoholic
liquor
direct
34
shipper
license.
An
alcoholic
liquor
direct
shipper
licensee
35
-7-
LSB
1124HZ
(3)
90
nls/ns
7/
9
H.F.
2670
may
sell
and
ship
any
amount
of
alcoholic
liquor
to
any
person
1
who
is
at
least
21
years
of
age
for
personal
use
and
not
for
2
resale
if
the
licensee
produces
in,
or
imports
into,
the
United
3
States
150,000
proof
gallons
or
fewer
of
distilled
spirits
per
4
calendar
year.
If
the
licensee
produces
or
imports
more
than
5
150,000
proof
gallons
of
distilled
spirits,
a
licensee
may
sell
6
and
ship
up
to
nine
liters
of
alcoholic
liquor
per
calendar
7
year
to
a
person
21
years
of
age
or
older.
8
Provisions
governing
the
direct
shipment
of
wine
and
the
9
wine
direct
shipper
permit
are
generally
made
applicable
to
the
10
new
Code
section
providing
for
the
direct
shipment
of
alcoholic
11
liquor.
12
The
new
Code
section
requires
all
alcoholic
liquor
13
subject
to
direct
shipping
to
be
properly
registered
with
the
14
department
of
revenue
(department)
and
that
products
which
are
15
not
listed
for
sale
by
the
department
must
be
registered
to
16
include
information
on
the
name
of
the
manufacturer,
the
name
17
of
the
brand,
the
standard
of
fill,
the
wholesale
price,
and
18
other
information
as
requested
by
the
department.
The
new
Code
19
section
also
requires
each
alcoholic
liquor
direct
shipper
20
licensee
to
make
a
monthly
report
to
the
department
that
lists
21
the
products
and
quantities
shipped
directly
to
residents
22
of
this
state
in
the
preceding
month,
the
name
and
address
23
of
the
individuals
to
whom
the
alcoholic
liquor
was
sold
in
24
each
sale,
the
wholesale
price
of
the
alcoholic
liquor
sold,
25
the
purchase
price
and
taxes
charged
of
the
alcoholic
liquor
26
sold,
the
alcoholic
beverage
carrier
permittee
who
delivered
27
each
shipment,
and
documents
filed
by
the
licensee
with
the
28
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
29
department
of
treasury
for
the
preceding
month,
including
all
30
production,
storage,
and
processing
reports.
31
Finally,
the
new
Code
section
provides
that
an
alcoholic
32
liquor
direct
shipper
licensee
shall
remit
an
amount
to
the
33
department
depending
on
whether
the
alcoholic
liquor
shipped
34
is
listed
for
sale
by
the
department.
If
the
alcoholic
liquor
35
-8-
LSB
1124HZ
(3)
90
nls/ns
8/
9
H.F.
2670
is
listed
for
sale
by
the
department,
the
permittee
shall
1
remit
to
the
department
an
amount
equivalent
to
50
percent
of
2
the
wholesale
price
paid
by
the
department
for
the
alcoholic
3
liquor.
If
the
alcoholic
liquor
is
not
listed
for
sale
by
the
4
department,
the
permittee
shall
remit
to
the
department
an
5
amount
equivalent
to
50
percent
of
the
wholesale
price
of
the
6
alcoholic
liquor
as
registered
with
the
department.
The
bill
7
provides
that
a
penalty
of
10
percent
of
the
amount
due
shall
8
be
assessed
and
collected
if
the
amount
required
to
be
paid
to
9
the
department
as
provided
by
the
bill
is
not
paid
within
the
10
time
required.
11
The
bill
allows
a
manufacturer
of
alcoholic
liquor
and
a
12
native
distillery
to
ship
alcoholic
liquor
or
native
distilled
13
spirits,
as
applicable,
to
individual
purchasers
inside
this
14
state
by
obtaining
an
alcoholic
liquor
direct
shipper
license
15
as
established
in
the
bill.
16
Code
section
123.188,
providing
for
a
wine
carrier
permit,
17
is
amended
to
provide
for
the
direct
shipment
of
alcoholic
18
liquor
as
provided
by
the
bill.
19
The
bill
takes
effect
January
1,
2025.
20
-9-
LSB
1124HZ
(3)
90
nls/ns
9/
9
