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
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 besampledtasted on the 1 9 premises where fermented, distilled, or matured, when no charge 1 10 is made for thesamplingtasting. 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 maypurchaseobtain 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 32sampledtasted on the premises where made, when no charge is 1 33 made for thesamplingtasting. 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 permitand, 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 permitand, 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",orclass "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 ofa 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 ofa 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 premiseslicensed 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 premisesand, 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 statefor resale by the division orfor 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