Bill Text: IA HF668 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act concerning alcoholic beverage control, relating to limitations on business interests of certain manufacturers, wholesalers, and retailers of alcoholic beverages. (Formerly HSB 210.) Effective 7-1-19.
Spectrum: Committee Bill
Status: (Passed) 2019-03-21 - Signed by Governor. H.J. 618. [HF668 Detail]
Download: Iowa-2019-HF668-Enrolled.html
House
File
668
-
Enrolled
House
File
668
AN
ACT
CONCERNING
ALCOHOLIC
BEVERAGE
CONTROL,
RELATING
TO
LIMITATIONS
ON
BUSINESS
INTERESTS
OF
CERTAIN
MANUFACTURERS,
WHOLESALERS,
AND
RETAILERS
OF
ALCOHOLIC
BEVERAGES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
123.3,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
24A.
“Institutional
investor”
means
a
person
who
maintains
a
diversified
portfolio
of
investments
through
a
state
or
federally
chartered
bank,
a
mutual
fund,
a
retirement
plan
or
account
created
by
an
employer,
the
person,
or
another
individual
to
provide
retirement
benefits
or
deferred
compensation
to
the
person,
a
private
investment
firm,
House
File
668,
p.
2
or
a
holding
company
publicly
traded
on
the
New
York
stock
exchange,
the
American
stock
exchange,
or
NASDAQ
stock
market
and
who
has
a
majority
of
investments
in
businesses
other
than
businesses
that
manufacture,
bottle,
wholesale,
or
sell
at
retail
alcoholic
beverages.
Sec.
2.
Section
123.45,
subsection
1,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
A
Subject
to
such
exceptions
as
otherwise
authorized
under
this
chapter,
a
person
engaged
in
the
business
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages,
wine,
or
beer
excluding
an
institutional
investor
,
or
any
jobber,
representative,
broker,
employee,
or
agent
of
such
a
person,
shall
not
do
any
of
the
following:
Sec.
3.
Section
123.45,
subsection
1,
paragraphs
c
and
d,
Code
2019,
are
amended
to
read
as
follows:
c.
Directly
or
indirectly
be
interested
in
the
ownership,
conduct,
or
operation
of
the
business
of
another
licensee
or
permittee
authorized
under
this
chapter
to
sell
at
retail
,
unless
the
licensee
or
permittee
authorized
under
this
chapter
to
sell
at
retail
does
not
purchase
or
sell
the
alcoholic
beverages
of
the
person
engaged
in
the
business
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages.
However,
the
licensee
or
permittee
authorized
under
this
chapter
to
sell
at
retail
may
purchase
and
sell
the
wine
of
the
person
engaged
in
the
business
of
manufacturing
wine
that
is
not
native
wine
provided
the
licensed
premises
is
the
principal
office,
as
defined
in
section
490.140,
of
the
person
.
d.
Hold
a
retail
liquor
control
license
or
retail
wine
or
beer
permit
,
unless
the
licensee
or
permittee
holding
a
retail
liquor
control
license
or
retail
wine
or
beer
permit
does
not
purchase
or
sell
the
alcoholic
beverages
of
the
person
engaged
in
the
business
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages.
However,
a
person
engaged
in
the
business
of
manufacturing
wine
that
is
not
native
wine
may
purchase
and
sell
the
person’s
wine
under
the
authority
of
a
special
class
“C”
liquor
control
license
and
a
class
“B”
wine
permit
provided
the
licensed
premises
is
the
principal
office,
as
defined
in
section
490.140,
of
the
person
.
House
File
668,
p.
3
Sec.
4.
Section
123.45,
Code
2019,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
1A.
Notwithstanding
any
provision
of
law
to
the
contrary,
a
broker,
employee,
or
agent
of
a
person
engaged
in
the
business
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages
may
be
a
broker,
employee,
or
agent
of
another
person
engaged
in
the
business
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages
or
a
broker,
employee,
or
agent
of
a
business
authorized
under
this
chapter
to
sell
alcoholic
beverages
at
retail
as
long
as
the
broker,
employee,
or
agent
is
not
an
officer,
owner,
director,
or
employee
in
a
position
to
exercise
any
control
or
influence
over
the
types
of
sales
or
the
purchasing
of
alcoholic
beverages
in
either
position
of
employment.
NEW
SUBSECTION
.
4.
The
exceptions
established
by
subsection
1
to
the
general
prohibition
against
tied
interests
shall
be
limited
to
their
express
terms
so
as
not
to
undermine
the
general
prohibition
and
shall
therefore
be
construed
accordingly,
and
shall
not
be
construed
to
affect
exceptions
to
the
general
prohibition
against
tied
interests
as
otherwise
authorized
under
this
chapter.
Sec.
5.
Section
123.130,
subsection
1,
Code
2019,
is
amended
to
read
as
follows:
1.
a.
Any
person
holding
a
class
“A”
beer
permit
issued
by
the
division
shall
be
authorized
to
manufacture
and
sell,
or
sell
at
wholesale,
beer
for
consumption
off
the
premises,
such
sales
within
the
state
to
be
made
only
to
persons
holding
subsisting
class
“A”,
“B”,
or
“C”
beer
permits,
both
a
class
“C”
native
wine
permit
and
a
class
“A”
wine
permit
pursuant
to
section
123.178B,
subsection
4
,
or
liquor
control
licenses
issued
in
accordance
with
the
provisions
of
this
chapter
.
However,
a
person
holding
a
class
“A”
beer
permit
issued
by
the
division
who
also
holds
a
brewer’s
notice
issued
by
the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
department
of
the
treasury
shall
be
authorized
to
sell,
at
wholesale,
no
more
than
thirty
thousand
barrels
of
beer
on
an
annual
basis
for
consumption
off
the
premises
to
a
licensee
or
permittee
authorized
under
this
chapter
to
sell
beer
at
retail.
b.
A
class
“A”
or
special
class
“A”
beer
permit
does
not
House
File
668,
p.
4
grant
authority
to
manufacture
wine
as
defined
in
section
123.3,
subsection
48
.
______________________________
LINDA
UPMEYER
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
668,
Eighty-eighth
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor
