Bill Text: IA HF2108 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act providing for the direct shipment of alcoholic liquor.(See HF 2525.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-02-23 - Committee report approving bill, renumbered as HF 2525. [HF2108 Detail]
Download: Iowa-2021-HF2108-Introduced.html
House
File
2108
-
Introduced
HOUSE
FILE
2108
BY
JONES
A
BILL
FOR
An
Act
providing
for
the
direct
shipment
of
alcoholic
liquor.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
Section
123.28,
subsection
5,
Code
2022,
is
1
amended
to
read
as
follows:
2
5.
This
section
does
not
affect
the
right
of
a
liquor
3
control
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
2022,
is
amended
by
adding
the
following
new
subparagraph:
9
NEW
SUBPARAGRAPH
.
(4A)
An
alcoholic
liquor
direct
shipper
10
permit
as
provided
in
section
123.42A.
11
Sec.
3.
Section
123.32,
subsection
1,
paragraph
b,
12
subparagraph
(11),
Code
2022,
is
amended
to
read
as
follows:
13
(11)
A
wine
An
alcoholic
beverage
carrier
permit
as
provided
14
in
section
123.188
.
15
Sec.
4.
Section
123.41,
subsection
1,
Code
2022,
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
division
19
electronically,
or
in
a
manner
prescribed
by
the
administrator,
20
and
shall
be
accompanied
by
a
fee
of
three
hundred
fifty
21
dollars
payable
to
the
division.
The
administrator
may
in
22
accordance
with
this
chapter
grant
and
issue
to
a
manufacturer
23
a
manufacturer’s
license,
valid
for
a
one-year
period
after
24
date
of
issuance,
which
shall
allow
the
manufacture,
storage,
25
and
wholesale
disposition
and
sale
of
alcoholic
liquors
to
the
26
division
and
to
customers
outside
of
the
state
pursuant
to
the
27
laws
of
that
jurisdiction
.
28
Sec.
5.
NEW
SECTION
.
123.42A
Direct
shipment
of
alcoholic
29
liquor
——
permit
and
requirements.
30
1.
An
alcoholic
liquor
manufacturer
licensed
or
permitted
31
pursuant
to
laws
regulating
alcoholic
beverages
in
this
state
32
or
another
state
may
apply
for
an
alcoholic
liquor
direct
33
shipper
permit,
as
provided
in
this
section.
For
the
purposes
34
of
this
section,
an
“alcoholic
liquor
manufacturer”
means
a
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person
who
distills,
blends,
bottles,
handles,
or
prepares
1
alcoholic
liquor.
2
2.
a.
Only
an
alcoholic
liquor
manufacturer
that
holds
3
an
alcoholic
liquor
direct
shipper
permit
issued
pursuant
to
4
this
section
shall
sell
alcoholic
liquor
at
retail
for
direct
5
shipment
to
any
person
within
this
state.
This
section
shall
6
not
prohibit
an
authorized
retail
licensee
or
permittee
from
7
delivering
alcoholic
liquor
pursuant
to
section
123.46A.
8
b.
An
alcoholic
liquor
manufacturer
applying
for
an
9
alcoholic
liquor
direct
shipper
permit
shall
submit
an
10
application
for
the
permit
electronically,
or
in
a
manner
11
prescribed
by
the
administrator,
accompanied
by
a
true
copy
of
12
the
manufacturer’s
current
alcoholic
beverage
license
or
permit
13
issued
by
the
state
where
the
manufacturer
is
primarily
located
14
and
a
copy
of
the
manufacturer’s
basic
permit
issued
by
the
15
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
16
department
of
the
treasury.
17
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
18
be
accompanied
by
a
permit
fee
in
the
amount
of
twenty-five
19
dollars.
20
d.
An
application
submitted
pursuant
to
paragraph
“b”
21
shall
also
be
accompanied
by
a
bond
in
the
amount
of
five
22
thousand
dollars
in
the
form
prescribed
and
furnished
by
the
23
division
with
good
and
sufficient
sureties
to
be
approved
by
24
the
division
conditioned
upon
compliance
with
this
chapter.
25
e.
A
permit
issued
pursuant
to
this
section
may
be
26
renewed
annually
by
submitting
a
renewal
application
with
the
27
administrator
in
a
manner
prescribed
by
the
administrator,
28
accompanied
by
the
twenty-five
dollar
permit
fee.
29
3.
The
direct
shipment
of
alcoholic
liquor
pursuant
to
this
30
section
shall
be
subject
to
the
following
requirements
and
31
restrictions:
32
a.
Alcoholic
liquor
shall
only
be
shipped
to
a
resident
of
33
this
state
who
is
at
least
twenty-one
years
of
age,
for
the
34
resident’s
personal
use
and
consumption
and
not
for
resale.
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b.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
1
properly
registered
with
the
federal
alcohol
and
tobacco
tax
2
and
trade
bureau,
and
manufactured
on
the
licensed
premises
of
3
the
alcoholic
liquor
direct
shipper
permittee.
4
c.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
5
properly
registered
with
the
division.
Products
which
are
not
6
listed
for
bailment
must
be
registered
electronically
with
the
7
division
for
direct
shipping.
This
registration
will
include
8
the
name
of
the
manufacturer,
the
name
of
the
brand,
the
9
standard
of
fill,
the
wholesale
price,
and
other
information
10
as
requested
by
the
division.
11
d.
All
containers
of
alcoholic
liquor
shipped
directly
to
a
12
resident
of
this
state
shall
be
conspicuously
labeled
with
the
13
words
“CONTAINS
ALCOHOL:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
14
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
15
alternative
wording
preapproved
by
the
administrator.
16
e.
All
containers
of
alcoholic
liquor
shipped
directly
17
to
a
resident
of
this
state
shall
be
shipped
by
a
holder
of
18
an
alcoholic
beverage
carrier
permit
as
provided
in
section
19
123.188.
20
f.
Shipment
of
alcoholic
liquor
pursuant
to
this
subsection
21
does
not
require
a
refund
value
for
beverage
container
control
22
purposes
under
chapter
455C.
23
4.
An
alcoholic
liquor
direct
shipper
permittee
shipping
24
alcoholic
liquor
to
this
state
shall
remit
the
following
amount
25
to
the
division
in
a
manner
as
directed
by
the
division:
26
a.
For
alcoholic
liquor
that
is
listed
for
sale
by
the
27
division,
an
amount
equivalent
to
fifty
percent
of
the
28
wholesale
price
paid
by
the
division
for
the
alcoholic
liquor
29
as
provided
in
section
123.24.
30
b.
For
alcoholic
liquor
that
is
not
listed
for
sale
31
by
the
division,
an
amount
equivalent
to
fifty
percent
of
32
the
wholesale
price
as
registered
with
the
division
under
33
subsection
3.
34
5.
Each
alcoholic
liquor
direct
shipper
permittee
shall
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make
a
report
under
oath
to
the
division
electronically,
or
1
in
a
manner
prescribed
by
the
administrator,
on
or
before
2
the
tenth
day
of
each
month,
which
includes
the
following
3
information:
4
a.
The
products
and
quantities
shipped
directly
to
residents
5
of
this
state
in
the
preceding
month.
6
b.
The
name
and
address
of
the
individuals
to
whom
the
7
alcoholic
liquor
was
sold
in
each
sale.
8
c.
The
wholesale
price
of
the
alcoholic
liquor
sold.
9
d.
The
purchase
price
of
the
alcoholic
liquor
sold
and
10
the
amount
of
taxes
charged
to
the
individual
purchasing
the
11
alcoholic
liquor.
12
e.
The
alcoholic
beverage
carrier
permittee
who
delivered
13
the
shipment.
14
6.
An
alcoholic
liquor
direct
shipper
permittee
shall
be
15
deemed
to
have
consented
to
the
jurisdiction
of
the
division
or
16
any
other
agency
or
court
in
this
state
concerning
enforcement
17
of
this
section
and
any
related
laws,
rules,
or
regulations.
A
18
permit
holder
shall
allow
the
division
to
perform
an
audit
of
19
shipping
records
upon
request.
20
7.
A
violation
of
this
section
shall
subject
the
permittee
21
to
the
general
penalties
provided
in
this
chapter
and
shall
22
constitute
grounds
for
imposition
of
a
civil
penalty
or
23
suspension
or
revocation
of
the
permit
pursuant
to
section
24
123.39.
25
Sec.
6.
Section
123.46A,
subsection
5,
Code
2022,
is
amended
26
to
read
as
follows:
27
5.
Nothing
in
this
section
shall
impact
the
direct
shipment
28
of
alcoholic
liquor
as
regulated
by
section
123.42A
or
the
29
direct
shipment
of
wine
as
regulated
by
section
123.187
.
30
Sec.
7.
Section
123.187,
subsection
3,
paragraph
d,
Code
31
2022,
is
amended
to
read
as
follows:
32
d.
All
containers
of
wine
shipped
directly
to
a
resident
of
33
this
state
shall
be
shipped
by
a
holder
of
a
wine
an
alcoholic
34
beverage
carrier
permit
as
provided
in
section
123.188
.
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Sec.
8.
Section
123.188,
subsections
1,
2,
and
4,
Code
2022,
1
are
amended
to
read
as
follows:
2
1.
A
person
desiring
to
deliver
alcoholic
liquor
subject
3
to
direct
shipment
within
this
state
pursuant
to
section
4
123.42A
and
wine
subject
to
direct
shipment
within
this
state
5
pursuant
to
section
123.187
shall
submit
an
application
for
a
6
wine
an
alcoholic
beverage
carrier
permit
electronically,
or
7
in
a
manner
prescribed
by
the
administrator,
which
shall
be
8
accompanied
by
a
fee
in
the
amount
of
one
hundred
dollars.
9
2.
The
administrator
may
in
accordance
with
this
chapter
10
issue
a
wine
an
alcoholic
beverage
carrier
permit
which
shall
11
be
valid
for
one
year
from
the
date
of
issuance
unless
it
is
12
sooner
suspended
or
revoked
for
a
violation
of
this
chapter
.
13
4.
The
delivery
of
alcoholic
liquor
and
wine
pursuant
to
14
this
section
shall
be
subject
to
the
following
requirements
and
15
restrictions:
16
a.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
not
17
deliver
alcoholic
liquor
or
wine
to
any
person
under
twenty-one
18
years
of
age,
or
to
any
person
who
either
is
or
appears
to
be
in
19
an
intoxicated
state
or
condition.
20
b.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
21
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
22
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
23
delivery.
24
c.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
25
maintain
records
of
alcoholic
liquor
and
wine
shipped
which
26
include
the
permit
number
and
name
of
the
alcoholic
liquor
27
or
wine
manufacturer,
quantity
of
alcoholic
liquor
and
wine
28
shipped,
recipient’s
name
and
address,
and
an
electronic
or
29
paper
form
of
signature
from
the
recipient
of
the
alcoholic
30
liquor
and
wine.
Records
shall
be
submitted
to
the
division
31
on
a
monthly
basis
in
a
form
and
manner
to
be
determined
by
the
32
division.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
allows
for
the
direct
shipment
of
alcoholic
liquor
2
within
the
state.
3
New
Code
section
123.42A
provides
for
the
direct
shipment
of
4
alcoholic
liquor
and
provides
for
an
alcoholic
liquor
direct
5
shipper
permit.
Provisions
governing
the
direct
shipment
6
of
wine
and
the
wine
direct
shipper
permit
are
generally
7
made
applicable
to
the
new
Code
section
providing
for
the
8
direct
shipment
of
alcoholic
liquor.
In
addition
to
these
9
requirements,
the
new
Code
section
requires
all
alcoholic
10
liquor
subject
to
direct
shipping
to
be
properly
registered
11
with
the
alcoholic
beverages
division
and
that
products
which
12
are
not
listed
for
bailment
must
be
registered
to
include
13
information
on
the
name
of
the
manufacturer,
the
name
of
the
14
brand,
the
standard
of
fill,
the
wholesale
price,
and
other
15
information
as
requested
by
the
division.
The
new
Code
section
16
also
requires
each
alcoholic
liquor
direct
shipper
permittee
to
17
make
a
monthly
report
to
the
alcoholic
beverages
division
that
18
lists
the
products
and
quantities
shipped
directly
to
residents
19
of
this
state
in
the
preceding
month,
the
name
and
address
of
20
the
individuals
to
whom
the
alcoholic
liquor
was
sold
in
each
21
sale,
the
wholesale
price
of
the
alcoholic
liquor
sold,
the
22
purchase
price
and
taxes
charged
of
the
alcoholic
liquor
sold,
23
and
the
alcoholic
beverage
carrier
permittee
who
delivered
24
each
shipment.
Finally,
the
new
Code
section
provides
that
an
25
alcoholic
liquor
direct
shipper
permittee
shall
remit
an
amount
26
to
the
alcoholic
beverages
division
depending
on
whether
the
27
alcoholic
liquor
shipped
is
listed
for
sale
by
the
division.
28
If
the
alcoholic
liquor
is
listed
for
sale
by
the
division,
the
29
permittee
shall
remit
to
the
division
an
amount
equivalent
to
30
50
percent
of
the
wholesale
price
paid
by
the
division
for
the
31
alcoholic
liquor.
If
the
alcoholic
liquor
is
not
listed
for
32
sale
by
the
division,
the
permittee
shall
remit
to
the
division
33
an
amount
equivalent
to
50
percent
of
the
wholesale
price
of
34
the
alcoholic
liquor
as
registered
with
the
division.
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