Bill Text: IA SF2168 | 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-02-01 - Subcommittee: Schultz, Bisignano, and Salmon. S.J. 199. [SF2168 Detail]
Download: Iowa-2023-SF2168-Introduced.html
Senate
File
2168
-
Introduced
SENATE
FILE
2168
BY
SHIPLEY
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
TLSB
5837XS
(3)
90
nls/ns
S.F.
2168
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
123.41,
subsection
1,
Code
2024,
is
amended
16
to
read
as
follows:
17
1.
Each
completed
application
to
obtain
or
renew
a
18
manufacturer’s
license
shall
be
submitted
to
the
department
19
electronically,
or
in
a
manner
prescribed
by
the
director,
and
20
shall
be
accompanied
by
a
fee
of
three
hundred
dollars
payable
21
to
the
department.
The
director
may
in
accordance
with
this
22
chapter
grant
and
issue
to
a
manufacturer
a
manufacturer’s
23
license,
valid
for
a
one-year
period
after
date
of
issuance,
24
which
shall
allow
the
manufacture,
storage,
and
wholesale
25
disposition
and
sale
of
alcoholic
liquors
to
the
department
and
26
to
customers
outside
of
the
state
pursuant
to
the
laws
of
that
27
jurisdiction
.
28
Sec.
5.
Section
123.41,
Code
2024,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
1A.
A
manufacturer
of
alcoholic
liquor
31
may
ship
alcoholic
liquor
in
closed
containers
to
individual
32
purchasers
in
this
state
by
obtaining
an
alcoholic
liquor
33
direct
shipper
license
pursuant
to
section
123.42A.
34
Sec.
6.
NEW
SECTION
.
123.42A
Direct
shipment
of
alcoholic
35
-1-
LSB
5837XS
(3)
90
nls/ns
1/
8
S.F.
2168
liquor
——
license
and
requirements.
1
1.
An
alcoholic
liquor
manufacturer
licensed
or
permitted
2
pursuant
to
laws
regulating
alcoholic
beverages
in
this
state
3
or
another
state
may
apply
for
an
alcoholic
liquor
direct
4
shipper
license,
as
provided
in
this
section.
For
the
purposes
5
of
this
section,
an
“alcoholic
liquor
manufacturer”
means
a
6
business
with
an
operating
still
which
distills
spirits,
barrel
7
matures
spirits
for
a
period
of
two
years
on
the
licensed
8
premises
of
the
distillery
where
matured,
or
blends
or
mixes
9
spirits
comprised
solely
of
spirits
distilled
or
barrel
matured
10
for
a
period
of
two
years
on
the
licensed
premises
of
the
11
distillery,
and
which,
combining
all
production
facilities
12
of
the
business,
produces
and
manufactures
not
more
than
one
13
hundred
thousand
proof
gallons
of
native
distilled
spirits
on
14
an
annual
basis.
15
2.
a.
Only
an
alcoholic
liquor
manufacturer
that
holds
16
an
alcoholic
liquor
direct
shipper
license
issued
pursuant
to
17
this
section
shall
sell
alcoholic
liquor
at
retail
for
direct
18
shipment
to
any
person
within
this
state.
This
section
shall
19
not
prohibit
an
authorized
retail
licensee
or
permittee
from
20
delivering
alcoholic
liquor
pursuant
to
section
123.46A.
21
b.
An
alcoholic
liquor
manufacturer
applying
for
an
22
alcoholic
liquor
direct
shipper
license
shall
submit
an
23
application
for
the
license
electronically,
or
in
a
manner
24
prescribed
by
the
director,
accompanied
by
a
true
copy
of
25
the
manufacturer’s
current
alcoholic
beverage
license
or
26
permit
issued
by
the
state
where
the
manufacturer
is
primarily
27
located,
a
copy
of
the
manufacturer’s
basic
permit
issued
by
28
the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
29
States
department
of
the
treasury,
and
documents
filed
by
the
30
manufacturer
with
the
alcohol
and
tobacco
tax
and
trade
bureau
31
of
the
United
States
department
of
the
treasury
that
show
the
32
total
number
of
proof
gallons
of
distilled
spirits
produced
and
33
manufactured
by
the
manufacturer
for
the
preceding
calendar
34
year.
35
-2-
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5837XS
(3)
90
nls/ns
2/
8
S.F.
2168
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
1
be
accompanied
by
a
license
fee
in
the
amount
of
twenty-five
2
dollars.
3
d.
A
license
issued
pursuant
to
this
section
may
be
renewed
4
annually
by
submitting
a
renewal
application
with
the
director
5
in
a
manner
prescribed
by
the
director,
accompanied
by
the
6
twenty-five
dollar
license
fee.
7
3.
The
direct
shipment
of
alcoholic
liquor
pursuant
to
this
8
section
shall
be
subject
to
the
following
requirements
and
9
restrictions:
10
a.
Alcoholic
liquor
shall
only
be
shipped
to
a
resident
of
11
this
state
who
is
at
least
twenty-one
years
of
age,
for
the
12
resident’s
personal
use
and
consumption
and
not
for
resale.
13
b.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
14
properly
registered
with
the
federal
alcohol
and
tobacco
tax
15
and
trade
bureau,
and
manufactured
on
the
licensed
premises
of
16
the
alcoholic
liquor
direct
shipper
licensee.
17
c.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
18
properly
registered
with
the
department.
Products
which
are
19
not
listed
for
sale
by
the
department
must
be
registered
20
electronically
with
the
department
for
direct
shipping.
This
21
registration
will
include
the
name
of
the
manufacturer,
the
22
name
of
the
brand,
the
standard
of
fill,
the
wholesale
price,
23
and
other
information
as
requested
by
the
department.
The
24
registration
shall
be
updated
as
necessary
to
ensure
the
25
department
possesses
an
accurate,
current
registration.
26
d.
All
containers
of
alcoholic
liquor
shipped
directly
to
a
27
resident
of
this
state
shall
be
conspicuously
labeled
with
the
28
words
“CONTAINS
ALCOHOL:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
29
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
30
alternative
wording
preapproved
by
the
director.
31
e.
All
containers
of
alcoholic
liquor
shipped
directly
32
to
a
resident
of
this
state
shall
be
shipped
by
a
holder
of
33
an
alcoholic
beverage
carrier
permit
as
provided
in
section
34
123.188.
35
-3-
LSB
5837XS
(3)
90
nls/ns
3/
8
S.F.
2168
f.
Shipment
of
alcoholic
liquor
pursuant
to
this
subsection
1
does
not
require
a
refund
value
for
beverage
container
control
2
purposes
under
chapter
455C.
3
4.
An
alcoholic
liquor
direct
shipper
licensee
shipping
4
alcoholic
liquor
to
this
state
shall
remit
the
following
amount
5
to
the
department
in
a
manner
as
directed
by
the
department:
6
a.
For
alcoholic
liquor
that
is
listed
for
sale
by
the
7
department,
an
amount
equivalent
to
fifty
percent
of
the
listed
8
wholesale
price.
9
b.
For
alcoholic
liquor
that
is
not
listed
for
sale
by
10
the
department,
an
amount
equivalent
to
fifty
percent
of
11
the
wholesale
price
as
registered
with
the
department
under
12
subsection
3.
13
5.
Each
alcoholic
liquor
direct
shipper
licensee
shall
make
14
a
report
under
oath
to
the
department
electronically,
or
in
a
15
manner
prescribed
by
the
director,
on
or
before
the
tenth
day
16
of
each
month,
which
includes
the
following
information:
17
a.
The
products
and
quantities
shipped
directly
to
residents
18
of
this
state
in
the
preceding
month.
19
b.
The
name
and
address
of
the
individuals
to
whom
the
20
alcoholic
liquor
was
sold
in
each
sale.
21
c.
The
wholesale
price
of
the
alcoholic
liquor
sold.
22
d.
The
purchase
price
of
the
alcoholic
liquor
sold
and
23
the
amount
of
taxes
charged
to
the
individual
purchasing
the
24
alcoholic
liquor.
25
e.
The
alcoholic
beverage
carrier
permittee
who
delivered
26
the
shipment.
27
f.
All
documents
filed
by
the
alcoholic
liquor
direct
28
shipper
licensee
with
the
alcohol
and
tobacco
tax
and
trade
29
bureau
of
the
United
States
department
of
treasury
for
the
30
preceding
month,
including
all
production,
storage,
and
31
processing
reports.
32
6.
The
license
holder
at
the
time
of
filing
the
report
as
33
required
by
subsection
5
shall
pay
to
the
department
the
amount
34
as
required
pursuant
to
subsection
4.
A
penalty
of
ten
percent
35
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90
nls/ns
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2168
of
the
amount
due
shall
be
assessed
and
collected
if
the
report
1
required
to
be
filed
pursuant
to
this
section
and
the
amount
2
required
to
be
paid
as
provided
by
subsection
4
is
not
filed
3
and
the
amount
paid
within
the
time
required
by
this
section.
4
7.
An
alcoholic
liquor
direct
shipper
licensee
shall
be
5
deemed
to
have
consented
to
the
jurisdiction
of
the
department
6
or
any
other
agency
or
court
in
this
state
concerning
7
enforcement
of
this
section
and
any
related
laws,
rules,
or
8
regulations.
A
license
holder
shall
allow
the
department
to
9
perform
an
audit
of
shipping
records
upon
request.
10
8.
A
violation
of
this
section
shall
subject
the
licensee
11
to
the
general
penalties
provided
in
this
chapter
and
shall
12
constitute
grounds
for
imposition
of
a
civil
penalty
or
13
suspension
or
revocation
of
the
license
pursuant
to
section
14
123.39.
15
Sec.
7.
Section
123.43A,
subsection
2,
Code
2024,
is
amended
16
to
read
as
follows:
17
2.
A
native
distillery
shall
not
sell
more
than
nine
18
liters
per
person
per
day,
of
native
distilled
spirits
on
19
the
premises
of
the
native
distillery.
However,
a
native
20
distillery
shall
not
directly
may
ship
native
distilled
spirits
21
for
sale
at
retail
manufactured
by
the
native
distillery
in
22
closed
containers
to
individual
purchasers
inside
the
state
by
23
obtaining
an
alcoholic
liquor
direct
shipper
license
pursuant
24
to
section
123.42A
.
The
native
distillery
shall
maintain
25
records
of
individual
purchases
of
native
distilled
spirits
at
26
the
native
distillery
for
three
years.
27
Sec.
8.
Section
123.43A,
subsection
7,
Code
2024,
is
amended
28
to
read
as
follows:
29
7.
A
native
distillery
may
sell
the
native
distilled
spirits
30
it
manufactures
to
customers
outside
the
state
,
pursuant
to
the
31
laws
of
that
jurisdiction
.
32
Sec.
9.
Section
123.46A,
subsection
5,
Code
2024,
is
amended
33
to
read
as
follows:
34
5.
Nothing
in
this
section
shall
impact
the
direct
shipment
35
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2168
of
alcoholic
liquor
as
regulated
by
section
123.42A
or
the
1
direct
shipment
of
wine
as
regulated
by
section
123.187
.
2
Sec.
10.
Section
123.187,
subsection
3,
paragraph
d,
Code
3
2024,
is
amended
to
read
as
follows:
4
d.
All
containers
of
wine
shipped
directly
to
a
resident
of
5
this
state
shall
be
shipped
by
a
holder
of
a
wine
an
alcoholic
6
beverage
carrier
permit
as
provided
in
section
123.188
.
7
Sec.
11.
Section
123.188,
subsections
1,
2,
and
4,
Code
8
2024,
are
amended
to
read
as
follows:
9
1.
A
person
desiring
to
deliver
alcoholic
liquor
subject
to
10
direct
shipment
within
this
state
pursuant
to
section
123.42A
11
and
wine
subject
to
direct
shipment
within
this
state
pursuant
12
to
section
123.187
shall
submit
an
application
for
a
wine
an
13
alcoholic
beverage
carrier
permit
electronically,
or
in
a
14
manner
prescribed
by
the
director,
which
shall
be
accompanied
15
by
a
fee
in
the
amount
of
one
hundred
dollars.
16
2.
The
director
may
in
accordance
with
this
chapter
issue
a
17
wine
an
alcoholic
beverage
carrier
permit
which
shall
be
valid
18
for
one
year
from
the
date
of
issuance
unless
it
is
sooner
19
suspended
or
revoked
for
a
violation
of
this
chapter
.
20
4.
The
delivery
of
alcoholic
liquor
and
wine
pursuant
to
21
this
section
shall
be
subject
to
the
following
requirements
and
22
restrictions:
23
a.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
not
24
deliver
alcoholic
liquor
or
wine
to
any
person
under
twenty-one
25
years
of
age,
or
to
any
person
who
either
is
or
appears
to
be
in
26
an
intoxicated
state
or
condition.
27
b.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
28
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
29
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
30
delivery.
31
c.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
32
maintain
records
of
alcoholic
liquor
and
wine
shipped
which
33
include
the
permit
number
and
name
of
the
alcoholic
liquor
34
and
wine
manufacturer,
quantity
of
alcoholic
liquor
and
wine
35
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2168
shipped,
recipient’s
name
and
address,
and
an
electronic
or
1
paper
form
of
signature
from
the
recipient
of
the
alcoholic
2
liquor
and
wine.
Records
shall
be
submitted
to
the
department
3
on
a
monthly
basis
in
a
form
and
manner
to
be
determined
by
the
4
department.
5
Sec.
12.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
6
2025.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
allows
for
the
direct
shipment
of
alcoholic
liquor
11
within
the
state.
12
New
Code
section
123.42A
provides
for
the
direct
shipment
of
13
alcoholic
liquor
and
provides
for
an
alcoholic
liquor
direct
14
shipper
license.
The
bill
provides
that
only
alcoholic
liquor
15
manufacturers
that
produce
and
manufacture
not
more
than
16
100,000
proof
gallons
of
native
distilled
spirits
on
an
annual
17
basis
are
eligible
for
this
license.
Provisions
governing
the
18
direct
shipment
of
wine
and
the
wine
direct
shipper
permit
are
19
generally
made
applicable
to
the
new
Code
section
providing
20
for
the
direct
shipment
of
alcoholic
liquor.
In
addition
to
21
these
requirements,
the
new
Code
section
requires
all
alcoholic
22
liquor
subject
to
direct
shipping
to
be
properly
registered
23
with
the
department
of
revenue
and
that
products
which
are
24
not
listed
for
sale
by
the
department
must
be
registered
to
25
include
information
on
the
name
of
the
manufacturer,
the
name
26
of
the
brand,
the
standard
of
fill,
the
wholesale
price,
and
27
other
information
as
requested
by
the
department.
The
new
Code
28
section
also
requires
each
alcoholic
liquor
direct
shipper
29
licensee
to
make
a
monthly
report
to
the
department
that
lists
30
the
products
and
quantities
shipped
directly
to
residents
31
of
this
state
in
the
preceding
month,
the
name
and
address
32
of
the
individuals
to
whom
the
alcoholic
liquor
was
sold
in
33
each
sale,
the
wholesale
price
of
the
alcoholic
liquor
sold,
34
the
purchase
price
and
taxes
charged
of
the
alcoholic
liquor
35
-7-
LSB
5837XS
(3)
90
nls/ns
7/
8
S.F.
2168
sold,
the
alcoholic
beverage
carrier
permittee
who
delivered
1
each
shipment,
and
documents
filed
by
the
licensee
with
the
2
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
3
department
of
treasury
for
the
preceding
month,
including
all
4
production,
storage,
and
processing
reports.
Finally,
the
5
new
Code
section
provides
that
an
alcoholic
liquor
direct
6
shipper
licensee
shall
remit
an
amount
to
the
department
7
depending
on
whether
the
alcoholic
liquor
shipped
is
listed
8
for
sale
by
the
department.
If
the
alcoholic
liquor
is
listed
9
for
sale
by
the
department,
the
permittee
shall
remit
to
the
10
department
an
amount
equivalent
to
50
percent
of
the
wholesale
11
price
paid
by
the
department
for
the
alcoholic
liquor.
If
the
12
alcoholic
liquor
is
not
listed
for
sale
by
the
department,
the
13
permittee
shall
remit
to
the
department
an
amount
equivalent
14
to
50
percent
of
the
wholesale
price
of
the
alcoholic
liquor
15
as
registered
with
the
department.
The
bill
provides
that
a
16
penalty
of
10
percent
of
the
amount
due
shall
be
assessed
and
17
collected
if
the
amount
required
to
be
paid
to
the
department
18
as
provided
by
the
bill
is
not
paid
within
the
time
required.
19
The
bill
allows
a
manufacturer
of
alcoholic
liquor
and
a
20
native
distillery
to
ship
alcoholic
liquor
or
native
distilled
21
spirits,
as
applicable,
to
individual
purchasers
inside
this
22
state
by
obtaining
an
alcoholic
liquor
direct
shipper
license
23
as
established
in
the
bill.
24
Code
section
123.188,
providing
for
a
wine
carrier
permit,
25
is
amended
to
provide
for
the
direct
shipment
of
alcoholic
26
liquor
as
provided
by
the
bill.
27
The
bill
takes
effect
January
1,
2025.
28
-8-
LSB
5837XS
(3)
90
nls/ns
8/
8
