Bill Text: IA HF2449 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the sale of wine, including private wine sales and wine auction permits, providing fees, and making penalties applicable.(Formerly HSB 629; See HF 2669.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-27 - Withdrawn. H.J. 690. [HF2449 Detail]
Download: Iowa-2023-HF2449-Introduced.html
House
File
2449
-
Introduced
HOUSE
FILE
2449
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
629)
A
BILL
FOR
An
Act
relating
to
the
sale
of
wine,
including
private
wine
1
sales
and
wine
auction
permits,
providing
fees,
and
making
2
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
123.32,
subsection
1,
paragraph
b,
Code
1
2024,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(11)
A
wine
auction
permit
as
provided
in
3
section
123.173C.
4
Sec.
2.
Section
123.171,
subsection
3,
Code
2024,
is
amended
5
to
read
as
follows:
6
3.
Notwithstanding
subsection
1
,
an
individual
of
legal
7
age
may
import
into
the
state
without
a
certificate,
permit,
8
or
license
an
amount
of
wine
not
to
exceed
nine
liters
per
9
calendar
month
that
the
individual
personally
obtained
outside
10
the
state
or,
in
the
case
of
wine
personally
obtained
outside
11
the
United
States,
a
quantity
which
does
not
exceed
the
amount
12
allowed
by
federal
law
governing
the
importation
of
alcoholic
13
beverages
into
the
United
States
for
personal
consumption.
14
Wine
imported
pursuant
to
this
subsection
shall
be
for
personal
15
consumption
in
a
private
home
or
other
private
accommodation
16
and
only
if
the
wine
is
not
sold
other
than
as
provided
in
17
subsection
4
,
exchanged,
bartered,
dispensed,
or
given
in
18
consideration
of
purchase
for
any
property
or
services
or
in
19
evasion
of
the
requirements
of
this
chapter
.
20
Sec.
3.
Section
123.171,
Code
2024,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
4.
Notwithstanding
subsection
1,
a
23
person
of
legal
age
may
conduct
private
wine
sales
without
a
24
certificate,
permit,
or
license,
subject
to
the
requirements
25
of
this
subsection.
Except
for
wine
manufactured
pursuant
26
to
subsection
2,
a
person
may
sell
wine
from
the
person’s
27
private
collection
in
an
original,
unopened
container
to
either
28
a
class
“A”
wine
permittee
for
purposes
of
resale
or
a
wine
29
auction
permittee
under
section
123.173C
for
resale
by
means
30
of
an
auction.
A
class
“A”
wine
permittee
or
wine
auction
31
permittee
involved
in
the
sale
of
wine
by
a
person
under
this
32
subsection
shall
ensure
that
each
bottle
of
wine
purchased
has
33
a
permanently
affixed
label
stating
that
the
wine
was
acquired
34
from
a
private
collection.
35
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Sec.
4.
NEW
SECTION
.
123.173C
Wine
auction
permit.
1
1.
Upon
application
to
the
department
and
receipt
of
a
wine
2
auction
permit,
an
authorized
person
may
conduct
a
wine
auction
3
subject
to
the
requirements
of
this
section.
4
2.
The
department
shall
not
issue
a
wine
auction
permit
to
5
an
applicant
unless
the
applicant
complies
with
the
application
6
requirements
of
subsection
3,
and
unless
all
of
the
following
7
requirements
are
met:
8
a.
The
applicant
is
a
person
of
good
moral
character.
9
b.
The
applicant
is
a
citizen
of
the
state
of
Iowa
or,
if
10
the
applicant
is
a
corporation,
the
applicant
is
authorized
to
11
do
business
in
the
state.
12
c.
The
applicant
does
not
hold
a
retail
alcohol
license.
13
d.
The
premises
where
the
applicant
intends
to
use
the
14
permit
constitutes
a
safe
and
proper
place
or
building
and
15
conforms
to
all
applicable
laws,
ordinances,
resolutions,
16
and
health
and
fire
regulations.
A
permittee
shall
not
have
17
or
maintain
any
interior
access
to
residential
or
sleeping
18
quarters
unless
the
director
grants
permission
in
the
form
of
a
19
living
quarters
permit.
20
e.
The
applicant
gives
consent,
as
required
by
section
21
123.30,
subsection
1,
for
a
person
to
enter
upon
the
premises
22
of
the
wine
auction
without
a
warrant
during
normal
business
23
hours
to
inspect
for
violations
of
the
provisions
of
this
24
chapter
or
ordinances
and
regulations
that
local
authorities
25
may
adopt.
26
3.
An
application
for
a
wine
auction
permit
must
include
27
all
of
the
following
information
and
shall
be
submitted
28
electronically,
or
in
a
manner
prescribed
by
the
director:
29
a.
The
name
and
address
of
the
applicant
or,
if
the
30
applicant
is
a
corporation,
limited
liability
company,
or
31
other
legal
entity,
the
names
and
addresses
of
all
officers,
32
directors,
and
persons
owning
or
controlling
ten
percent
33
or
more
of
the
capital
stock
of
the
entity
and
who
have
a
34
financial
interest,
by
way
of
loan,
ownership,
or
otherwise,
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in
the
entity.
1
b.
The
location
and
name
of
the
owner
of
the
premises
2
where
the
applicant
intends
to
conduct
wine
auctions
and,
if
3
the
applicant
is
not
the
owner
of
the
premises,
whether
the
4
applicant
is
the
lessee
of
the
premises.
5
c.
As
required
by
the
director,
and
in
such
form
and
6
containing
such
information
as
the
director
may
require,
a
7
description
of
the
premises
where
the
applicant
intends
to
8
conduct
wine
auctions,
including
a
depiction
of
the
premises,
9
and,
if
applicable,
the
number
of
square
feet
of
interior
floor
10
space
of
the
retail
sales
area
of
the
premises.
11
d.
Whether
any
person
specified
in
paragraph
“a”
has
ever
12
been
convicted
of
any
offense
against
the
laws
of
the
United
13
States,
or
any
state,
territory,
or
political
subdivision
14
thereof.
15
e.
Any
other
information
as
required
by
the
director.
16
4.
A
wine
auction
conducted
by
a
wine
auction
permittee
must
17
comply
with
the
following
requirements:
18
a.
A
permittee
shall
not
offer
wines
owned
by
the
permittee
19
at
auction.
20
b.
A
person,
within
or
outside
of
the
state,
who
desires
to
21
ship
wine
from
a
private
collection
to
a
wine
auction
permittee
22
to
be
sold
at
auction
shall
do
so
through
a
holder
of
a
wine
23
carrier
permit.
The
wine
auction
permittee
shall
ensure
that
24
each
bottle
of
wine
so
acquired
is
permanently
affixed
with
25
a
label
stating
that
the
wine
was
acquired
from
a
private
26
collection.
27
c.
A
permittee
shall
ensure
that
each
container
of
wine
28
to
be
sold
at
a
wine
auction
is
in
the
original,
unopened
29
container.
30
d.
A
permittee
is
responsible
for
the
storage
of
all
wines
31
that
are
to
be
offered
at
auction
at
the
licensed
premises,
32
and
for
the
subsequent
shipment
and
delivery
of
all
wines
sold
33
at
auction
to
the
purchasers
of
the
wines.
Shipment
of
wine
34
pursuant
to
this
paragraph
shall
only
be
done
by
a
holder
of
a
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wine
carrier
permit.
1
e.
A
permittee
is
responsible
for
the
payment
of
all
2
applicable
taxes
for
wines
sold
at
auction
pursuant
to
section
3
123.183.
4
5.
Notwithstanding
any
other
provision
of
this
chapter,
5
a
class
“A”
wine
permittee
or
a
retail
alcohol
licensee,
not
6
including
a
native
wine
manufacturer,
may
purchase
wine
offered
7
at
an
auction
pursuant
to
this
section
and
may
resell
wine
8
purchased
at
auction
in
accordance
with
the
requirements
of
9
the
licensee’s
or
permittee’s
license
or
permit.
The
licensee
10
or
permittee
shall
ensure
that
each
wine
resold
is
in
the
11
original,
unopened
container,
and,
if
applicable,
permanently
12
affixed
with
a
label
stating
that
the
wine
was
acquired
from
a
13
private
collection.
14
6.
A
wine
auction
permit
is
valid
for
a
period
of
one
year
15
pursuant
to
section
123.35,
subsection
1.
A
wine
auction
16
permit
shall
allow
the
permittee
to
conduct
no
more
than
17
twenty-four
wine
auctions
during
the
one-year
period
of
the
18
wine
auction
permit.
19
7.
Any
violation
of
the
requirements
of
this
chapter
or
20
rules
adopted
pursuant
to
this
chapter
shall
subject
the
wine
21
auction
permit
holder
to
the
general
penalties
provided
in
this
22
chapter
and
shall
constitute
grounds
for
imposition
of
a
civil
23
penalty,
suspension
of
the
permit,
or
revocation
of
the
permit
24
after
notice
and
opportunity
for
a
hearing
pursuant
to
section
25
123.39
and
chapter
17A.
26
Sec.
5.
Section
123.179,
Code
2024,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
4.
The
fee
for
a
wine
auction
permit
is
one
29
hundred
dollars.
30
Sec.
6.
Section
123.180,
subsection
3,
Code
2024,
is
amended
31
to
read
as
follows:
32
3.
a.
All
Except
as
provided
in
paragraph
“b”
,
all
class
33
“A”
wine
permit
holders
shall
sell
only
those
brands
of
34
wine
which
are
manufactured,
bottled,
fermented,
shipped,
or
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imported
by
a
person
holding
a
current
vintner’s
certificate
of
1
compliance.
An
employee
or
agent
working
for
or
representing
2
the
holder
of
a
vintner’s
certificate
of
compliance
within
3
this
state
shall
register
the
employee’s
or
agent’s
name
and
4
address
with
the
department.
These
names
and
addresses
shall
5
be
filed
with
the
department’s
copy
of
the
certificate
of
6
compliance
issued
except
that
this
provision
does
not
require
7
the
listing
of
those
persons
who
are
employed
on
the
premises
8
of
a
bottling
plant,
or
winery
where
wine
is
manufactured,
9
fermented,
or
bottled
in
Iowa
or
the
listing
of
those
persons
10
who
are
thereafter
engaged
in
the
transporting
of
the
wine.
11
b.
A
class
“A”
wine
permit
holder
may
sell
brands
of
wine
12
which
are
not
manufactured,
bottled,
fermented,
shipped,
or
13
imported
by
a
person
holding
a
current
vintner’s
certificate
14
of
compliance
if
the
brands
of
wine
were
purchased
from
a
15
private
sale
pursuant
to
section
123.171,
subsection
4,
or
if
16
authorized
by
the
laws
of
another
state.
17
Sec.
7.
Section
123.183,
subsection
1,
Code
2024,
is
amended
18
to
read
as
follows:
19
1.
a.
In
addition
to
the
annual
permit
fee
to
be
paid
by
20
each
class
“A”
wine
permittee,
a
wine
gallonage
tax
shall
be
21
levied
and
collected
from
each
class
“A”
wine
permittee
on
all
22
of
the
following:
23
(1)
All
wine
manufactured
for
sale
and
sold
in
this
state
24
at
wholesale
and
on
all
.
25
(2)
All
wine
imported
into
this
state
for
sale
at
wholesale
26
and
sold
in
this
state
at
wholesale.
A
wine
gallonage
tax
27
shall
also
be
levied
and
collected
on
the
28
(3)
The
direct
shipment
of
wine
pursuant
to
section
123.187
.
29
(4)
The
sale
of
wine
at
auction
pursuant
to
section
123.173C
30
to
a
retail
alcohol
license
holder.
31
b.
The
rate
of
the
wine
gallonage
tax
is
one
dollar
and
32
seventy-five
cents
for
each
wine
gallon.
The
same
rate
shall
33
apply
for
the
fractional
parts
of
a
wine
gallon.
The
wine
34
gallonage
tax
shall
not
be
levied
or
collected
on
wine
sold
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by
one
class
“A”
wine
permittee
to
another
class
“A”
wine
1
permittee
or
on
wine
that
is
sold
by
a
class
“A”
wine
permittee
2
to
a
distributor
outside
of
the
state.
3
Sec.
8.
Section
123.183,
subsection
2,
paragraph
a,
Code
4
2024,
is
amended
to
read
as
follows:
5
a.
Revenue
collected
from
the
wine
gallonage
tax
on
wine
6
manufactured
for
sale
and
sold
at
wholesale
in
this
state,
7
and
on
wine
subject
to
direct
shipment
as
provided
in
section
8
123.187
by
a
wine
manufacturer
licensed
or
permitted
pursuant
9
to
laws
regulating
alcoholic
beverages
in
this
state,
pursuant
10
to
subsection
1
shall
be
deposited
in
the
wine
gallonage
tax
11
fund
as
created
in
this
section
.
12
Sec.
9.
Section
123.184,
Code
2024,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
3.
Each
wine
auction
permit
holder
shall
15
make
a
report
under
oath
to
the
department
electronically,
16
or
in
a
manner
prescribed
by
the
director,
on
or
before
the
17
tenth
day
of
the
calendar
months
of
June
and
December,
showing
18
the
exact
number
of
gallons
of
wine
and
fractional
parts
of
19
gallons
sold
and
shipped
pursuant
to
section
123.173C
during
20
the
preceding
six-month
calendar
period.
The
report
shall
also
21
state
whatever
reasonable
additional
information
the
director
22
requires.
The
permit
holder
at
the
time
of
filing
this
report
23
shall
pay
to
the
department
the
amount
of
tax
due
at
the
rate
24
fixed
in
section
123.183.
A
penalty
of
ten
percent
of
this
25
amount
shall
be
assessed
and
collected
if
the
report
required
26
to
be
filed
pursuant
to
this
subsection
is
not
filed
and
the
27
tax
paid
within
the
time
required
by
this
subsection.
28
Sec.
10.
Section
123.188,
subsection
1,
Code
2024,
is
29
amended
to
read
as
follows:
30
1.
A
person
desiring
to
deliver
wine
subject
to
direct
31
shipment
within
this
state
pursuant
to
section
123.187
,
or
to
32
deliver
wine
shipped
to
or
by
a
wine
auction
permittee
pursuant
33
to
section
123.173C,
shall
submit
an
application
for
a
wine
34
carrier
permit
electronically,
or
in
a
manner
prescribed
by
the
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2449
director,
which
shall
be
accompanied
by
a
fee
in
the
amount
of
1
one
hundred
dollars.
2
Sec.
11.
Section
123.188,
subsection
4,
paragraph
c,
Code
3
2024,
is
amended
to
read
as
follows:
4
c.
A
wine
carrier
permittee
shall
maintain
records
of
5
wine
shipped
which
include
the
permit
number
and
name
of
the
6
wine
manufacturer
or
wine
auction
permittee
,
quantity
of
wine
7
shipped,
recipient’s
name
and
address,
and
an
electronic
8
or
paper
form
of
signature
from
the
recipient
of
the
wine.
9
Records
shall
be
submitted
to
the
department
on
a
monthly
basis
10
in
a
form
and
manner
to
be
determined
by
the
department.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
private
wine
sales
and
wine
auction
15
permits.
16
The
bill
authorizes
a
person
to
conduct
private
wine
sales
17
from
the
person’s
private
collection
for
wine
in
an
original,
18
unopened
container
to
either
a
class
“A”
wine
permittee
for
19
purposes
of
resale,
or
to
a
wine
auction
permittee
under
20
the
bill
for
resale
at
a
wine
auction.
A
class
“A”
wine
21
permittee
or
wine
auction
permittee
who
purchases
wine
from
22
a
private
collection
shall
ensure
that
each
bottle
of
wine
23
has
a
permanently
affixed
label
stating
that
fact.
The
bill
24
authorizes
a
class
“A”
wine
permit
holder
to
sell
brands
of
25
wine
which
are
not
manufactured,
bottled,
fermented,
shipped,
26
or
imported
by
a
person
holding
a
current
vintner’s
certificate
27
if
the
brands
of
wine
were
purchased
from
a
private
sale
and
28
meet
the
labeling
requirements
under
the
bill.
29
The
bill
authorizes
a
person,
upon
application
to
the
30
department
of
revenue
and
receipt
of
a
wine
auction
permit,
to
31
conduct
a
wine
auction.
A
wine
auction
permit
is
valid
for
a
32
period
of
one
year
and
allows
the
permittee
to
conduct
no
more
33
than
24
wine
auctions
during
the
one-year
period.
The
fee
for
34
a
wine
auction
permit
is
$100.
A
wine
auction
permit
may
only
35
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LSB
5743HV
(2)
90
nls/ns
7/
9
H.F.
2449
be
issued
to
an
applicant
who
is
of
good
moral
character;
is
1
a
citizen
of
the
state
of
Iowa
or
authorized
to
do
business
2
in
the
state;
does
not
hold
a
retail
alcohol
license;
and
3
gives
consent
for
a
person
to
enter
upon
the
premises
of
the
4
wine
auction
without
a
warrant
during
normal
business
hours
5
to
inspect
for
violations
of
the
provisions
of
Code
chapter
6
123
or
ordinances
and
regulations
that
local
authorities
may
7
adopt.
The
premises
that
the
applicant
intends
to
use
for
wine
8
auctions
must
constitute
a
safe
and
proper
place
or
building
9
and
conform
to
all
applicable
laws,
ordinances,
resolutions,
10
and
health
and
fire
regulations.
The
bill
prohibits
an
11
applicant
from
having
or
maintaining
any
interior
access
to
12
residential
or
sleeping
quarters
unless
the
director
of
revenue
13
grants
permission
in
the
form
of
a
living
quarters
permit.
14
The
bill
sets
forth
the
information
required
to
be
included
15
for
a
wine
auction
permit
application.
16
The
bill
requires
a
wine
auction
conducted
by
a
wine
auction
17
permittee
to
comply
with
the
following
requirements:
(1)
a
18
permittee
shall
not
offer
wines
owned
by
the
permittee
at
19
auction,
(2)
wine
from
a
private
collection
is
permanently
20
affixed
with
a
label
stating
that
fact,
(3)
a
permittee
21
shall
ensure
that
each
container
of
wine
to
be
sold
is
in
the
22
original,
unopened
container,
(4)
a
permittee
is
responsible
23
for
the
storage
of
all
wines
that
are
to
be
offered
at
auction
24
and
for
their
subsequent
shipment
by
a
holder
of
a
wine
carrier
25
permit
and
delivery,
and
(5)
a
permittee
is
responsible
for
the
26
payment
of
all
applicable
taxes
for
wines
sold
at
auction.
27
The
bill
authorizes
a
class
“A”
wine
permittee
or
a
retail
28
alcohol
licensee,
not
including
a
native
wine
manufacturer,
29
to
purchase
wine
offered
at
an
auction
and
resell
wine
30
purchased
at
auction
in
accordance
with
the
requirements
of
31
the
licensee’s
or
permittee’s
license
or
permit,
subject
to
32
applicable
label
requirements.
33
A
violation
of
the
requirements
of
the
bill
subjects
the
34
wine
auction
permit
holder
to
the
general
penalties
provided
in
35
-8-
LSB
5743HV
(2)
90
nls/ns
8/
9
H.F.
2449
Code
chapter
123
and
constitutes
grounds
for
imposition
of
a
1
civil
penalty,
suspension
of
the
permit,
or
revocation
of
the
2
permit
after
notice
and
opportunity
for
a
hearing.
A
person
3
who
violates
any
of
the
provisions
of
the
bill,
or
who
makes
a
4
false
statement
concerning
any
material
fact
in
submitting
an
5
application
for
a
permit,
is
guilty
of
a
serious
misdemeanor.
6
A
serious
misdemeanor
is
punishable
by
confinement
for
no
more
7
than
one
year
and
a
fine
of
at
least
$430
but
not
more
than
8
$2,560.
9
The
bill
levies
a
wine
gallonage
tax
on
the
sale
of
wine
at
10
auction
to
a
retail
alcohol
license
holder.
The
rate
of
the
11
wine
gallonage
tax
is
$1.75
per
gallon.
Revenue
collected
is
12
deposited
in
the
wine
gallonage
tax
fund.
13
The
bill
requires
each
wine
auction
permit
holder
to
make
a
14
biannual
report
under
oath
to
the
department
of
revenue
showing
15
the
exact
number
of
gallons
of
wine
and
fractional
parts
of
16
gallons
sold
and
shipped
during
the
preceding
six-month
period,
17
and
whatever
reasonable
additional
information
the
director
18
requires.
The
permittee
at
the
time
of
filing
the
report
must
19
pay
to
the
department
of
revenue
the
amount
of
tax
due.
A
20
penalty
of
10
percent
is
assessed
and
collected
if
the
report
21
is
not
filed
and
the
tax
paid
within
the
time
required.
22
Under
the
bill,
a
person
desiring
to
deliver
wine
shipped
23
to
or
by
a
wine
auction
permittee
shall
submit
an
application
24
for
a
wine
carrier
permit
accompanied
by
a
fee
of
$100.
A
wine
25
auction
permittee
shall
maintain
records
of
wine
shipped
as
26
prescribed
by
the
bill.
27
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LSB
5743HV
(2)
90
nls/ns
9/
9
