Bill Text: IA SF2167 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act providing for the direct shipment of beer, 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. [SF2167 Detail]

Download: Iowa-2023-SF2167-Introduced.html
Senate File 2167 - Introduced SENATE FILE 2167 BY SHIPLEY A BILL FOR An Act providing for the direct shipment of beer, and including 1 effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5838XS (3) 90 nls/ns
S.F. 2167 Section 1. Section 123.32, subsection 1, paragraph b, Code 1 2024, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (06) A beer direct shipper license as 3 provided in section 123.147. 4 Sec. 2. Section 123.32, subsection 1, paragraph b, 5 subparagraph (10), Code 2024, is amended to read as follows: 6 (10) A wine An alcoholic beverage carrier permit as provided 7 in section 123.188 . 8 Sec. 3. Section 123.39, subsection 1, paragraph a, 9 subparagraph (2), Code 2024, is amended to read as follows: 10 (2) The director may suspend a certificate of compliance, a 11 class “D” retail alcohol license, a manufacturer’s license, a 12 broker’s permit, a class “A” native distilled spirits license, 13 a class “A” or special class “A” beer permit, a class “A” wine 14 permit, a wine direct shipper’s permit, or a wine an alcoholic 15 beverage carrier permit for a period not to exceed one year, 16 revoke the license, permit, or certificate, or impose a civil 17 penalty not to exceed one thousand dollars per violation. 18 Sec. 4. Section 123.46A, subsection 5, Code 2024, is amended 19 to read as follows: 20 5. Nothing in this section shall impact the direct shipment 21 of beer as regulated by section 123.147 or the direct shipment 22 of wine as regulated by section 123.187 . 23 Sec. 5. Section 123.136, subsection 1, Code 2024, is amended 24 to read as follows: 25 1. In addition to the annual permit fee to be paid by 26 all class “A” beer permittees under this chapter there shall 27 be levied and collected from the permittees on all beer 28 manufactured for sale or sold in this state at wholesale and 29 on all beer imported into this state for sale at wholesale and 30 sold in this state at wholesale, and from special class “A” 31 beer permittees on all beer manufactured for consumption on the 32 premises and on all beer sold at retail at the manufacturing 33 premises for consumption off the premises pursuant to section 34 123.130, subsection 4 , a tax of five and eighty-nine hundredths 35 -1- LSB 5838XS (3) 90 nls/ns 1/ 6
S.F. 2167 dollars for every barrel containing thirty-one gallons, and at 1 a like rate for any other quantity or for the fractional part 2 of a barrel. A barrel tax shall also be levied and collected 3 on the direct shipment of beer pursuant to section 123.147. 4 However, no tax shall be levied or collected on beer shipped 5 outside this state by a class “A” beer permittee or special 6 class “A” beer permittee or on beer sold to a class “A” beer 7 permittee by a special class “A” beer permittee or another 8 class “A” beer permittee. 9 Sec. 6. Section 123.137, Code 2024, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 1A. Each beer direct shipper license 12 holder shall make a report under oath to the department 13 electronically, or in a manner prescribed by the director, 14 on or before the tenth day of the calendar months of June 15 and December, showing the exact number of barrels of beer 16 and fractional parts of barrels sold and shipped pursuant to 17 section 123.147 during the preceding six-month calendar period. 18 The report shall also state whatever reasonable additional 19 information the director requires. The license holder at the 20 time of filing this report shall pay to the department the 21 amount of tax due at the rate fixed in section 123.136. 22 Sec. 7. NEW SECTION . 123.147 Direct shipment of beer —— 23 license and requirements. 24 1. A beer manufacturer licensed or permitted pursuant to 25 laws regulating alcoholic beverages in this state or another 26 state may apply for a beer direct shipper license, as provided 27 in this section. 28 2. a. Only a beer manufacturer that holds a beer direct 29 shipper license issued pursuant to this section shall sell beer 30 at retail for direct shipment to any person within this state. 31 This section shall not prohibit an authorized retail licensee 32 from delivering beer pursuant to section 123.46A. 33 b. A beer manufacturer applying for a beer direct 34 shipper license shall submit an application for the license 35 -2- LSB 5838XS (3) 90 nls/ns 2/ 6
S.F. 2167 electronically, or in a manner prescribed by the director, 1 accompanied by a true copy of the manufacturer’s current 2 alcoholic beverage license or permit issued by the state 3 where the manufacturer is primarily located and a copy of the 4 manufacturer’s basic permit issued by the alcohol and tobacco 5 tax and trade bureau of the United States department of the 6 treasury. 7 c. An application submitted pursuant to paragraph “b” shall 8 be accompanied by a license fee in the amount of twenty-five 9 dollars. 10 d. A license issued pursuant to this section may be renewed 11 annually by submitting a renewal application with the director 12 in a manner prescribed by the director, accompanied by the 13 twenty-five-dollar license fee. 14 3. The direct shipment of beer pursuant to this 15 section shall be subject to the following requirements and 16 restrictions: 17 a. Beer shall only be shipped to a resident of this state 18 who is at least twenty-one years of age, for the resident’s 19 personal use and consumption and not for resale. 20 b. Beer subject to direct shipping shall be properly 21 registered with the federal alcohol and tobacco tax and trade 22 bureau, and manufactured on the licensed premises of the beer 23 direct shipper licensee. 24 c. All containers of beer shipped directly to a resident 25 of this state shall be conspicuously labeled with the words 26 “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER 27 REQUIRED FOR DELIVERY” or shall be conspicuously labeled with 28 alternative wording preapproved by the director. 29 d. All containers of beer shipped directly to a resident 30 of this state shall be shipped by a holder of an alcoholic 31 beverage carrier permit as provided in section 123.188. 32 e. Shipment of beer pursuant to this subsection does not 33 require a refund value for beverage container control purposes 34 under chapter 455C. 35 -3- LSB 5838XS (3) 90 nls/ns 3/ 6
S.F. 2167 4. A beer direct shipper licensee shall remit to the 1 department an amount equivalent to the barrel tax on beer 2 subject to direct shipment at the rate specified in section 3 123.136 for deposit as provided in section 123.136, subsection 4 2. The amount shall be remitted at the time and in the manner 5 provided in section 123.137, subsection 1A, and the ten percent 6 penalty specified in section 123.137, subsection 2, shall be 7 applicable. 8 5. A beer direct shipper licensee shall be deemed to have 9 consented to the jurisdiction of the department or any other 10 agency or court in this state concerning enforcement of this 11 section and any related laws, rules, or regulations. A license 12 holder shall allow the department to perform an audit of 13 shipping records upon request. 14 6. A violation of this section shall subject the licensee 15 to the general penalties provided in this chapter and shall 16 constitute grounds for imposition of a civil penalty or 17 suspension or revocation of the license pursuant to section 18 123.39. 19 Sec. 8. Section 123.187, subsection 3, paragraph d, Code 20 2024, is amended to read as follows: 21 d. All containers of wine shipped directly to a resident of 22 this state shall be shipped by a holder of a wine an alcoholic 23 beverage carrier permit as provided in section 123.188 . 24 Sec. 9. Section 123.188, subsections 1, 2, and 4, Code 2024, 25 are amended to read as follows: 26 1. A person desiring to deliver beer subject to direct 27 shipment within this state pursuant to section 123.147 and 28 wine subject to direct shipment within this state pursuant 29 to section 123.187 shall submit an application for a wine an 30 alcoholic beverage carrier permit electronically, or in a 31 manner prescribed by the director, which shall be accompanied 32 by a fee in the amount of one hundred dollars. 33 2. The director may in accordance with this chapter issue a 34 wine an alcoholic beverage carrier permit which shall be valid 35 -4- LSB 5838XS (3) 90 nls/ns 4/ 6
S.F. 2167 for one year from the date of issuance unless it is sooner 1 suspended or revoked for a violation of this chapter . 2 4. The delivery of beer and wine pursuant to this 3 section shall be subject to the following requirements and 4 restrictions: 5 a. A wine An alcoholic beverage carrier permittee shall 6 not deliver beer or wine to any person under twenty-one years 7 of age, or to any person who either is or appears to be in an 8 intoxicated state or condition. 9 b. A wine An alcoholic beverage carrier permittee shall 10 obtain valid proof of identity and age prior to delivery, 11 and shall obtain the signature of an adult as a condition of 12 delivery. 13 c. A wine An alcoholic beverage carrier permittee shall 14 maintain records of beer and wine shipped which include the 15 permit number and name of the beer and wine manufacturer, 16 quantity of beer and wine shipped, recipient’s name and 17 address, and an electronic or paper form of signature from the 18 recipient of the beer and wine. Records shall be submitted to 19 the department on a monthly basis in a form and manner to be 20 determined by the department. 21 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1, 22 2025. 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 allows for the direct shipment of beer within the 27 state. 28 New Code section 123.147 provides for the direct shipment 29 of beer and provides for a beer direct shipper license. 30 Provisions governing the direct shipment of wine and the wine 31 direct shipper permit are generally made applicable to the new 32 Code section providing for the direct shipment of beer. The 33 bill provides for application requirements and establishes the 34 annual fee for the license as $25. The bill also provides that 35 -5- LSB 5838XS (3) 90 nls/ns 5/ 6
S.F. 2167 a licensee under the new Code section shall pay the barrel tax 1 on beer subject to direct shipment at the rate specified for 2 beer sold in the state. Code section 123.135, concerning the 3 barrel tax, and Code section 123.136, concerning report of 4 barrel sales, are made applicable to beer subject to direct 5 shipment. 6 Code section 123.188, providing for a wine carrier permit, 7 is amended to provide for the direct shipment of beer as 8 provided by the bill. 9 The bill takes effect January 1, 2025. 10 -6- LSB 5838XS (3) 90 nls/ns 6/ 6
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