Bill Text: IA SF125 | 2015-2016 | 86th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to alcoholic beverage control and matters under the purview of the alcoholic beverages division of the department of commerce. (Formerly SSB 1033.) Effective 7-1-15.

Spectrum: Committee Bill

Status: (Passed) 2015-04-24 - Signed by Governor. S.J. 931. [SF125 Detail]

Download: Iowa-2015-SF125-Amended.html
Senate File 125 - Reprinted




                                 SENATE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO SSB
                                     1033)
       (As Amended and Passed by the Senate March 25, 2015)

                                      A BILL FOR

  1 An Act relating to alcoholic beverage control and matters under
  2    the purview of the alcoholic beverages division of the
  3    department of commerce.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    SF 125 (3) 86
    ec/nh/jh

PAG LIN



  1  1    Section 1.  Section 123.43A, subsection 3, Code 2015, is
  1  2 amended to read as follows:
  1  3    3.  A micro=distillery shall not sell micro=distilled
  1  4 spirits other than as permitted in this chapter and shall not
  1  5 allow micro=distilled spirits sold to be consumed upon the
  1  6 premises of the micro=distillery. However, as a part of a
  1  7 micro=distillery tour, micro=distilled spirits of no more than
  1  8 two ounces per person per day may be sampled tasted on the
  1  9 premises where fermented, distilled, or matured, when no charge
  1 10 is made for the sampling tasting.
  1 11    Sec. 2.  Section 123.56, subsections 1 and 2, Code 2015, are
  1 12 amended to read as follows:
  1 13    1.  Subject to rules of the division, manufacturers of
  1 14 native wines from grapes, cherries, other fruits or other fruit
  1 15 juices, vegetables, vegetable juices, dandelions, clover,
  1 16 honey, or any combination of these ingredients, holding a
  1 17 class "A" wine permit as required by this chapter, may sell,
  1 18 keep, or offer for sale and deliver the wine. Notwithstanding
  1 19 section 123.24, subsection 4, or any other provision of this
  1 20 chapter, manufacturers of native wine may purchase obtain and
  1 21 possess grape brandy from the division for the sole purpose of
  1 22 manufacturing wine.
  1 23    2.  Native wine may be sold at retail for off=premises
  1 24 consumption when sold on the premises of the manufacturer,
  1 25 or in a retail establishment operated by the manufacturer.
  1 26 Sales may also be made to class "A" or retail wine permittees
  1 27 or liquor control licensees as authorized by the class "A"
  1 28 wine permit. A manufacturer of native wines shall not sell
  1 29 the wines other than as permitted in this chapter and shall
  1 30 not allow wine sold to be consumed upon the premises of the
  1 31 manufacturer. However, prior to sale native wines may be
  1 32 sampled tasted on the premises where made, when no charge is
  1 33 made for the sampling tasting. A person may manufacture native
  1 34 wine for consumption on the manufacturer's premises, when the
  1 35 wine or any part of it is not manufactured for sale.
  2  1    Sec. 3.  Section 123.124, Code 2015, is amended to read as
  2  2 follows:
  2  3    123.124  Permits == classes.
  2  4    Permits for the manufacture and sale, or sale of beer shall
  2  5 be divided into six classes, known as class "A", special class
  2  6 "A", class "AA", special class "AA", class "B", or class "C"
  2  7 permits. A class "A" permit allows the holder to manufacture
  2  8 and sell beer at wholesale. A holder of a special class "A"
  2  9 permit may only manufacture beer to be consumed on the licensed
  2 10 premises for which the person also holds a class "C" liquor
  2 11 control license or class "B" beer permit and, to be sold to
  2 12 a class "A" permittee for resale purposes, and to be sold to
  2 13 distributors outside of the state that are authorized by the
  2 14 laws of that jurisdiction to sell beer at wholesale. A class
  2 15 "AA" permit allows the holder to manufacture and sell high
  2 16 alcoholic content beer at wholesale. A holder of a special
  2 17 class "AA" permit may only manufacture high alcoholic content
  2 18 beer to be consumed on the licensed premises for which the
  2 19 person also holds a class "C" liquor control license or class
  2 20 "B" beer permit and, to be sold to a class "AA" permittee for
  2 21 resale purposes, and to be sold to distributors outside of the
  2 22 state that are authorized by the laws of that jurisdiction to
  2 23 sell high alcoholic content beer at wholesale. A class "B"
  2 24 permit allows the holder to sell beer to consumers at retail
  2 25 for consumption on or off the premises. A class "C" permit
  2 26 allows the holder to sell beer to consumers at retail for
  2 27 consumption off the premises.
  2 28    Sec. 4.  Section 123.127, subsection 1, unnumbered paragraph
  2 29 1, Code 2015, is amended to read as follows:
  2 30    A class "A", or class "AA", special class "A", or special
  2 31 class "AA" permit shall be issued by the administrator to any
  2 32 person who:
  2 33    Sec. 5.  Section 123.128, subsection 1, paragraph a, Code
  2 34 2015, is amended to read as follows:
  2 35    a.  All the information required of a class "A" an applicant
  3  1 by section 123.127, subsection 1, paragraph "a".
  3  2    Sec. 6.  Section 123.128, subsection 2, Code 2015, is amended
  3  3 to read as follows:
  3  4    2.  Fulfills the requirements of section 123.127, subsection
  3  5 1, paragraph "b", relating to class "A" applicants.
  3  6    Sec. 7.  Section 123.129, subsection 2, paragraph a, Code
  3  7 2015, is amended to read as follows:
  3  8    a.  Submits an application electronically, or in a manner
  3  9 prescribed by the administrator, which shall state under oath
  3 10 all the information required of a class "A" an applicant by
  3 11 section 123.127, subsection 1, paragraph "a".
  3 12    Sec. 8.  Section 123.130, Code 2015, is amended to read as
  3 13 follows:
  3 14    123.130  Authority under class "A", class "AA", special class
  3 15 "A", and special class "AA" permits.
  3 16    1.  Any person holding a class "A" or class "AA" permit
  3 17 issued by the division shall be authorized to manufacture
  3 18 and sell, or sell at wholesale, beer for consumption off the
  3 19 premises, such sales within the state to be made only to
  3 20 persons holding subsisting class "A", "B", or "C" permits,
  3 21 or liquor control licenses issued in accordance with the
  3 22 provisions of this chapter. A class "A", class "AA", special
  3 23 class "A", or special class "AA" permit does not grant
  3 24 authority to manufacture wine as defined in section 123.3,
  3 25 subsection 47.
  3 26    2.  All class "A" and class "AA" premises shall be located
  3 27 within the state. All beer received by the holder of a class
  3 28 "A" or class "AA" permit from the holder of a certificate
  3 29 of compliance before being resold must first come to rest on
  3 30 the licensed premises licensed by the class "A" of the permit
  3 31 holder, must be inventoried, and is subject to the barrel tax
  3 32 when resold as provided in section 123.136. A class "A" or
  3 33 class "AA" permittee shall not store beer overnight except on
  3 34 premises licensed under a class "A" or class "AA" permit.
  3 35    3.  All special class "A" and special class "AA" premises
  4  1 shall be located within the state.  A person who holds a
  4  2 special class "A" or special class "AA" permit for the same
  4  3 location at which the person holds a class "C" liquor control
  4  4 license or class "B" beer permit may manufacture and sell beer
  4  5 to be consumed on the premises and, may sell beer to a class "A"
  4  6 or class "AA" permittee for resale purposes, and may sell beer
  4  7 to distributors outside of the state that are authorized by the
  4  8 laws of that jurisdiction to sell beer at wholesale.
  4  9    Sec. 9.  Section 123.135, Code 2015, is amended to read as
  4 10 follows:
  4 11    123.135  Certificate of compliance == civil penalty.
  4 12    1.  A manufacturer, brewer, bottler, importer, or vendor
  4 13 of beer or any agent thereof desiring to ship or sell beer,
  4 14 or have beer brought into this state for resale by a class
  4 15 "A" or class "AA" permittee shall first make application for
  4 16 and be issued a brewer's certificate of compliance by the
  4 17 administrator for that purpose. The certificate of compliance
  4 18 expires at the end of one year from the date of issuance
  4 19 and shall be renewed for a like period upon application to
  4 20 the administrator unless otherwise revoked for cause. Each
  4 21 application for a certificate of compliance or renewal of a
  4 22 certificate shall be submitted electronically, or in a manner
  4 23 prescribed by the administrator, and shall be accompanied
  4 24 by a fee of five hundred dollars payable to the division.
  4 25 Each holder of a certificate of compliance shall furnish the
  4 26 information in a manner the administrator requires.
  4 27    2.  At the time of applying for a certificate of compliance,
  4 28 each applicant shall file with the division a list of all
  4 29 class "A" and class "AA" permittees with whom it intends to do
  4 30 business and shall designate the geographic area in which its
  4 31 products are to be distributed by such permittee. The listing
  4 32 of class "A" and class "AA" permittees and geographic area as
  4 33 filed with the division may be amended from time to time by the
  4 34 holder of a certificate of compliance.
  4 35    3.  All class "A" and class "AA" permit holders shall sell
  5  1 only those brands of beer which are manufactured, brewed,
  5  2 bottled, shipped, or imported by a person holding a current
  5  3 certificate of compliance. Any employee or agent working for
  5  4 or representing the holder of a certificate of compliance
  5  5 within this state shall submit electronically, or in a manner
  5  6 prescribed by the administrator, the employee's or agent's name
  5  7 and address with the division.
  5  8    4.  It shall be unlawful for any holder of a certificate of
  5  9 compliance or the holder's agent, or any class "A" or class
  5 10 "AA" permit holder or the permit holder's agent, to grant to
  5 11 any retail beer permit holder, directly or indirectly, any
  5 12 rebates, free goods, or quantity discounts on beer which are
  5 13 not uniformly offered to all retail permittees.
  5 14    5.  Notwithstanding any other penalties provided by this
  5 15 chapter, any holder of a certificate of compliance or any class
  5 16 "A" or class "AA" permit holder who violates this chapter or
  5 17 the rules adopted pursuant to this chapter is subject to a
  5 18 civil penalty not to exceed one thousand dollars or suspension
  5 19 of the holder's certificate or permit for a period not to
  5 20 exceed one year, or both such civil penalty and suspension.
  5 21 Civil penalties imposed under this section shall be collected
  5 22 and retained by the division.
  5 23    Sec. 10.  Section 123.136, Code 2015, is amended to read as
  5 24 follows:
  5 25    123.136  Barrel tax.
  5 26    1.  In addition to the annual permit fee to be paid by all
  5 27 class "A" and class "AA" permittees under this chapter there
  5 28 shall be levied and collected from the permittees on all beer
  5 29 manufactured for sale or sold in this state at wholesale and
  5 30 on all beer imported into this state for sale at wholesale and
  5 31 sold in this state at wholesale, and from special class "A"
  5 32 and special class "AA" permittees on all beer manufactured for
  5 33 consumption on the premises, a tax of five and eighty=nine
  5 34 hundredths dollars for every barrel containing thirty=one
  5 35 gallons, and at a like rate for any other quantity or for the
  6  1 fractional part of a barrel. However, no tax shall be levied
  6  2 or collected on beer shipped outside this state by a class "A"
  6  3 or class "AA" permittee or sold by one class "A" or class "AA"
  6  4  permittee to another class "A" or class "AA" permittee.
  6  5    2.  All revenue derived from the barrel tax shall accrue to
  6  6 the state general fund.
  6  7    3.  All of the provisions of this chapter relating to the
  6  8 administration of the barrel tax on beer shall apply to this
  6  9 section.
  6 10    Sec. 11.  Section 123.137, subsection 1, Code 2015, is
  6 11 amended to read as follows:
  6 12    1.  A person holding a class "A" or, class "AA", special
  6 13 class "A", or special class "AA" permit shall on or before
  6 14 the tenth day of each calendar month commencing on the tenth
  6 15 day of the calendar month following the month in which the
  6 16 person is issued a permit, make a report under oath to the
  6 17 division electronically, or in a manner prescribed by the
  6 18 administrator, showing the exact number of barrels of beer, or
  6 19 fractional parts of barrels, sold by the permit holder during
  6 20 the preceding calendar month. The report shall also state
  6 21 information the administrator requires, and permit holders
  6 22 shall at the time of filing a report pay to the division the
  6 23 amount of tax due at the rate fixed in section 123.136.
  6 24    Sec. 12.  Section 123.138, subsection 1, Code 2015, is
  6 25 amended to read as follows:
  6 26    1.  Each class "A" or, class "AA", special class "A", or
  6 27 special class "AA" permittee shall keep proper records showing
  6 28 the amount of beer sold by the permittee, and these records
  6 29 shall be at all times open to inspection by the administrator
  6 30 and to other persons pursuant to section 123.30, subsection
  6 31 1. Each class "B" permittee, class "C" permittee, or retail
  6 32 liquor control licensee shall keep proper records showing each
  6 33 purchase of beer made by the permittee or licensee, and the
  6 34 date and the amount of each purchase and the name of the person
  6 35 from whom each purchase was made, which records shall be open
  7  1 to inspection pursuant to section 123.30, subsection 1, during
  7  2 normal business hours of the permittee or licensee.
  7  3    Sec. 13.  Section 123.139, Code 2015, is amended to read as
  7  4 follows:
  7  5    123.139  Separate locations == class "A", class "AA", special
  7  6 class "A", special class "AA".
  7  7    A class "A" or, class "AA", special class "A", or special
  7  8 class "AA" permittee having more than one place of business
  7  9 is required to have a separate permit for each separate place
  7 10 of business maintained by the permittee where beer is stored,
  7 11 warehoused, or sold.
  7 12    Sec. 14.  Section 123.142, Code 2015, is amended to read as
  7 13 follows:
  7 14    123.142  Unlawful sale and importation.
  7 15    1.  It is unlawful for the holder of a class "B" or class
  7 16 "C" permit issued under this chapter to sell beer, except
  7 17 beer brewed on the premises covered by a special class "A"
  7 18 or special class "AA" permit or beer purchased from a person
  7 19 holding a class "A" or class "AA" permit issued in accordance
  7 20 with this chapter, and on which the tax provided in section
  7 21 123.136 has been paid. However, this section does not apply to
  7 22 class "D" liquor control licensees as provided in this chapter.
  7 23    2.  It shall be unlawful for any person not holding a class
  7 24 "A" or class "AA" permit to import beer into this state for the
  7 25 purpose of sale or resale.
  7 26    Sec. 15.  Section 123.143, subsection 3, Code 2015, is
  7 27 amended to read as follows:
  7 28    3.  Barrel tax revenues collected on beer manufactured in
  7 29 this state from a class "A" or class "AA" permittee which owns
  7 30 and operates a brewery located in Iowa shall be credited to the
  7 31 barrel tax fund hereby created in the office of the treasurer
  7 32 of state. Moneys deposited in the barrel tax fund shall not
  7 33 revert to the general fund of the state without a specific
  7 34 appropriation by the general assembly. Moneys in the barrel
  7 35 tax fund are appropriated to the economic development authority
  8  1 for purposes of section 15E.117.
  8  2    Sec. 16.  Section 123.180, subsection 1, Code 2015, is
  8  3 amended to read as follows:
  8  4    1.  A manufacturer, vintner, bottler, importer, or vendor
  8  5 of wine or an agent thereof desiring to ship, sell, or have
  8  6 wine brought into this state for resale by the division or for
  8  7 sale at wholesale by a class "A" permittee shall first make
  8  8 application for and shall be issued a vintner's certificate
  8  9 of compliance by the administrator for that purpose. The
  8 10 vintner's certificate of compliance shall expire at the end of
  8 11 one year from the date of issuance and shall be renewed for
  8 12 a like period upon application to the administrator unless
  8 13 otherwise revoked for cause. Each application for a vintner's
  8 14 certificate of compliance or renewal of a certificate shall
  8 15 be submitted electronically, or in a manner prescribed by the
  8 16 administrator, and shall be accompanied by a fee of one hundred
  8 17 dollars payable to the division. Each holder of a vintner's
  8 18 certificate of compliance shall furnish the information
  8 19 required by the administrator in the form the administrator
  8 20 requires. A vintner or wine bottler whose plant is located in
  8 21 Iowa and who otherwise holds a class "A" wine permit to sell
  8 22 wine at wholesale is exempt from the fee, but not the other
  8 23 terms and conditions. The holder of a vintner's certificate of
  8 24 compliance may also hold a class "A" wine permit.
       SF 125 (3) 86
       ec/nh/jh
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