Bill Text: IA SF2220 | 2021-2022 | 89th General Assembly | Introduced

Iowa Senate Bill 2220 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act relating to sales of native distilled spirits by a native distillery.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-02-15 - Subcommittee recommends passage. [SF2220 Detail]

Download: Iowa-2021-SF2220-Introduced.html

Senate File 2220 - Introduced SENATE FILE 2220 BY COURNOYER A BILL FOR An Act relating to sales of native distilled spirits by a 1 native distillery. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5941SS (1) 89 ec/rn

S.F. 2220 Section 1. Section 123.30, subsection 3, paragraph c, 1 subparagraph (3), Code 2022, is amended to read as follows: 2 (3) A class “C” native distilled spirits liquor control 3 license may be issued to a native distillery but shall be 4 issued in the name of the individuals who actually own the 5 business and shall only be issued to a native distillery which, 6 combining all production facilities of the business, produces 7 and manufactures not more than one hundred thousand proof 8 gallons of distilled spirits on an annual basis. The license 9 shall authorize the holder to sell native distilled spirits 10 manufactured on the premises of by the native distillery at 11 retail for consumption off the premises and to patrons by 12 the individual drink for consumption on the premises , and 13 mixed drinks or cocktails for consumption off the premises 14 subject to the requirements of section 123.49, subsection 2 , 15 paragraph “d” . All native distilled spirits sold by a native 16 distillery for on-premises consumption and mixed drinks or 17 cocktails sold for consumption off the premises shall be 18 purchased from a class “E” liquor control licensee in original 19 unopened containers. Native distilled spirits manufactured 20 by the native distillery and sold by a native distillery for 21 off-premises consumption shall be sold as provided in section 22 123.43A. 23 Sec. 2. Section 123.43A, subsections 1 and 6, Code 2022, are 24 amended to read as follows: 25 1. Subject to rules of the division, a native distillery 26 holding a class “A” native distilled spirits license issued 27 pursuant to section 123.43 may sell or offer for sale native 28 distilled spirits. As provided in this section , sales of 29 native distilled spirits manufactured on the premises by the 30 native distillery may be made at retail for off-premises 31 consumption when sold on the premises of the native distillery 32 that manufactures native distilled spirits. All sales intended 33 for resale in this state shall be made through the state’s 34 wholesale distribution system. 35 -1- LSB 5941SS (1) 89 ec/rn 1/ 3

S.F. 2220 6. Notwithstanding any provision of this chapter to the 1 contrary or the fact that a person is the holder of a class 2 “A” native distilled spirits license, a native distillery 3 which, combining all production facilities of the business, 4 produces and manufactures not more than one hundred thousand 5 proof gallons of native distilled spirits on an annual basis 6 may sell those native distilled spirits manufactured on the 7 premises of by the native distillery for consumption on or 8 off the premises by applying for a class “C” native distilled 9 spirits liquor control license as provided in section 123.30 . 10 A native distillery may be granted not more than two class 11 “C” native distilled spirits liquor control licenses. All 12 native distilled spirits sold by a native distillery for 13 on-premises consumption and mixed drinks or cocktails sold 14 for consumption off the premises shall be purchased from a 15 class “E” liquor control licensee. Sales of native distilled 16 spirits manufactured by the native distillery for off-premises 17 consumption shall be made as provided in subsection 1. A 18 manufacturer of native distilled spirits may be issued a class 19 “C” native distilled spirits liquor control license regardless 20 of whether the manufacturer is also a manufacturer of beer 21 pursuant to a class “A” beer permit or a manufacturer of native 22 wine pursuant to a class “A” wine permit. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill concerns the sales of native distilled spirits by a 27 native distillery holding a class “C” native distilled spirits 28 liquor control license. 29 Code section 123.30, concerning class “C” native distilled 30 spirits liquor control licenses, is amended to allow a holder 31 of the license to sell native distilled spirits it manufactures 32 for consumption on and off the premises of the license 33 holder regardless of where the native distilled spirits were 34 manufactured. Under current law, a native distillery can only 35 -2- LSB 5941SS (1) 89 ec/rn 2/ 3

S.F. 2220 sell native distilled spirits it manufactures on the premises 1 covered by the class “C” native distilled liquor control 2 license for on-premises consumption. 3 Code section 123.43A, governing native distilleries, is 4 amended to reflect the authority granted a class “C” native 5 distilled spirits liquor control license in the bill and to 6 allow sales of native distilled spirits manufactured by the 7 native distillery at retail for off-premises consumption 8 regardless of where the spirits were manufactured. 9 The bill provides that all sales of native distilled spirits 10 at retail for off-premises consumption by a native distillery 11 shall be made through the state’s wholesale distribution 12 system. 13 -3- LSB 5941SS (1) 89 ec/rn 3/ 3