Text: HF692            Text: HF694
Complete Bill History


House File 693

HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 569) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning the manufacture and sale of native distilled 2 spirits, and establishing a related permit fee and excise tax. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2460HV 83 5 ec/nh/14 PAG LIN 1 1 Section 1. Section 123.32, subsection 1, Code 2009, is 1 2 amended to read as follows: 1 3 1. FILING OF APPLICATION. An application for a class "A", 1 4 class "B", class "C", or class "E" liquor control license, for 1 5 a class "A" native distilled spirits permit, for a retail beer 1 6 permit as provided in sections 123.128 and 123.129, or for a 1 7 class "B", class "B" native, or class "C" native retail wine 1 8 permit as provided in section 123.178, 123.178A, or 123.178B, 1 9 accompanied by the necessary fee and bond, if required, shall 1 10 be filed with the appropriate city council if the premises for 1 11 which the license or permit is sought are located within the 1 12 corporate limits of a city, or with the board of supervisors 1 13 if the premises for which the license or permit is sought are 1 14 located outside the corporate limits of a city. An 1 15 application for a class "D" liquor control license and for a 1 16 class "A" beer or class "A" wine permit, accompanied by the 1 17 necessary fee and bond, if required, shall be filed with the 1 18 division, which shall proceed in the same manner as in the 1 19 case of an application approved by local authorities. 1 20 Sec. 2. Section 123.41, subsection 1, Code 2009, is 1 21 amended to read as follows: 1 22 1. Upon application in the prescribed form and accompanied 1 23 by a fee of three hundred fifty dollars, the administrator may 1 24 in accordance with this chapter grant and issue a license, 1 25 valid for a one=year period after date of issuance, to a 1 26 manufacturer, other than a manufacturer of native distilled 1 27 spirits licensed pursuant to section 123.43A, which shall 1 28 allow the manufacture, storage, and wholesale disposition and 1 29 sale of alcoholic liquors to the division and to customers 1 30 outside of the state. 1 31 Sec. 3. NEW SECTION. 123.43A NATIVE DISTILLED SPIRITS == 1 32 PERMIT == EXCISE TAX. 1 33 1. Subject to rules of the division, a manufacturer of 1 34 native distilled spirits holding a class "A" native distilled 1 35 spirits permit pursuant to this section may sell, keep, or 2 1 offer for sale native distilled spirits. As provided in this 2 2 section, sales may be made at retail for off=premises 2 3 consumption when sold on the premises of the manufacturer of 2 4 the native distilled spirits. Any other sale shall only be 2 5 made to the division for wholesale disposition and sale by the 2 6 division. 2 7 2. For the purposes of this section, "native distilled 2 8 spirits" means distilled spirits manufactured by a distillery 2 9 located in this state. 2 10 3. A manufacturer of native distilled spirits shall not 2 11 sell more than five thousand proof gallons of native distilled 2 12 spirits on the premises of the manufacturer, annually. For 2 13 each proof gallon sold in a month, the manufacturer of native 2 14 distilled spirits shall remit an excise tax of fifteen dollars 2 15 per proof gallon to the division on or before the tenth day of 2 16 the following month. All revenue derived from the excise tax 2 17 shall be deposited in the general fund of the state. 2 18 4. A manufacturer of native distilled spirits shall not 2 19 sell native distilled spirits other than as permitted in this 2 20 chapter and shall not allow native distilled spirits sold to 2 21 be consumed upon the premises of the manufacturer. However, 2 22 prior to sale, native distilled spirits may be sampled on the 2 23 premises where made, when no charge is made for the sampling. 2 24 5. A class "A" native distilled spirits permit for a 2 25 native distilled spirits manufacturer shall be issued and 2 26 renewed annually upon payment of a fee of twenty=five dollars 2 27 which shall be in lieu of any other license fee required by 2 28 this chapter. The class "A" permit shall allow the native 2 29 distilled spirits manufacturer to sell, keep, or offer for 2 30 sale the manufacturer's native distilled spirits as provided 2 31 under this section. 2 32 6. For the purposes of this section, section 123.43 shall 2 33 not apply to a manufacturer of native distilled spirits. 2 34 7. The sale of native distilled spirits to the division 2 35 for wholesale disposition and sale by the division shall be 3 1 subject to the requirements of this chapter regarding such 3 2 disposition and sale. 3 3 EXPLANATION 3 4 This bill relates to the manufacture and sale of native 3 5 distilled spirits, and provides for the obtaining of a class 3 6 "A" native distilled spirits permit. 3 7 The bill provides that a manufacturer of native distilled 3 8 spirits may sell, keep, or offer for sale native distilled 3 9 spirits for off=premises consumption through sales on the 3 10 manufacturer's premises. The bill restricts any other form of 3 11 sale to sales made to the alcoholic beverages division for 3 12 wholesale disposition and sale by the division. The bill 3 13 defines "native distilled spirits" to mean distilled spirits 3 14 manufactured by a distillery located in Iowa. 3 15 The bill provides that a manufacturer shall not sell more 3 16 than 5,000 proof gallons of native distilled spirits on the 3 17 premises of the manufacturer, annually. The bill also imposes 3 18 an excise tax of $15 payable to the division to be deposited 3 19 in the general fund for each proof gallon sold by a 3 20 manufacturer. The bill specifies that a manufacturer shall 3 21 not allow native distilled spirits sold to be consumed upon 3 22 the premises of the manufacturer, but that prior to sale they 3 23 may be sampled on the premises where made, when no charge is 3 24 made for the sampling. 3 25 The bill provides for a new permit applicable to native 3 26 distilled spirits, requiring a fee of $25 for initial issuance 3 27 and annual renewal. The class "A" native distilled spirits 3 28 permit allows a manufacturer to sell, keep, or offer for sale 3 29 the manufacturer's native distilled spirits. 3 30 The bill also provides that the sale of native distilled 3 31 spirits to the alcoholic beverages division for wholesale 3 32 disposition and sale by the division shall be subject to the 3 33 requirements of Code chapter 123 relating to liquor sales and 3 34 distribution by the division. 3 35 The bill provides that a manufacturer of native distilled 4 1 spirits is not considered a manufacturer pursuant to Code 4 2 sections 123.41 and 123.43, which require a license allowing 4 3 the manufacture, storage, and wholesale disposition and sale 4 4 of alcoholic liquors to the division and to customers outside 4 5 of the state. 4 6 The bill makes conforming changes to provisions in Code 4 7 chapter 123. 4 8 LSB 2460HV 83 4 9 ec/nh/14
Text: HF692            Text: HF694 Complete Bill History