Read the full stored bill text
House
File
140
-
Introduced
HOUSE
FILE
140
BY
JONES
,
SEXTON
,
LOHSE
,
MEGGERS
,
WULF
,
HORA
,
BOSSMAN
,
COLLINS
,
WILLS
,
DUNWELL
,
and
C.
JOHNSON
A
BILL
FOR
An
Act
providing
for
the
direct
shipment
of
alcoholic
liquor,
1
providing
fees,
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1058YH
(3)
91
ll/ns
H.F.
140
Section
1.
Section
123.28,
subsection
5,
Code
2025,
is
1
amended
to
read
as
follows:
2
5.
This
section
does
not
affect
the
right
of
a
retail
3
alcohol
license
holder
to
purchase,
possess,
or
transport
4
alcoholic
liquors
subject
to
this
chapter
.
In
addition,
this
5
section
does
not
impact
the
direct
shipment
of
alcoholic
liquor
6
as
regulated
by
section
123.42A.
7
Sec.
2.
Section
123.32,
subsection
1,
paragraph
b,
Code
8
2025,
is
amended
by
adding
the
following
new
subparagraph:
9
NEW
SUBPARAGRAPH
.
(05)
An
alcoholic
liquor
direct
shipper
10
license
as
provided
in
section
123.42A.
11
Sec.
3.
Section
123.32,
subsection
1,
paragraph
b,
12
subparagraph
(10),
Code
2025,
is
amended
to
read
as
follows:
13
(10)
A
wine
An
alcoholic
beverage
carrier
permit
as
provided
14
in
section
123.188
.
15
Sec.
4.
Section
123.39,
subsection
1,
paragraph
a,
16
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
17
(2)
The
director
may
suspend
a
certificate
of
compliance,
a
18
class
“D”
retail
alcohol
license,
a
manufacturer’s
license,
a
19
broker’s
permit,
an
alcoholic
liquor
direct
shipper
license,
20
a
class
“A”
native
distilled
spirits
license,
a
class
“A”
or
21
special
class
“A”
beer
permit,
a
class
“A”
wine
permit,
a
22
wine
direct
shipper’s
permit,
or
a
wine
an
alcoholic
beverage
23
carrier
permit
for
a
period
not
to
exceed
one
year,
revoke
the
24
license,
permit,
or
certificate,
or
impose
a
civil
penalty
not
25
to
exceed
one
thousand
dollars
per
violation.
26
Sec.
5.
Section
123.41,
subsection
1,
Code
2025,
is
amended
27
to
read
as
follows:
28
1.
Each
completed
application
to
obtain
or
renew
a
29
manufacturer’s
license
shall
be
submitted
to
the
department
30
electronically,
or
in
a
manner
prescribed
by
the
director,
and
31
shall
be
accompanied
by
a
fee
of
three
hundred
dollars
payable
32
to
the
department.
The
director
may
in
accordance
with
this
33
chapter
grant
and
issue
to
a
manufacturer
a
manufacturer’s
34
license,
valid
for
a
one-year
period
after
date
of
issuance,
35
-1-
LSB
1058YH
(3)
91
ll/ns
1/
10
H.F.
140
which
shall
allow
the
manufacture,
storage,
and
wholesale
1
disposition
and
sale
of
alcoholic
liquors
to
the
department
and
2
to
customers
outside
of
the
state
pursuant
to
the
laws
of
that
3
jurisdiction
.
4
Sec.
6.
Section
123.41,
Code
2025,
is
amended
by
adding
the
5
following
new
subsection:
6
NEW
SUBSECTION
.
1A.
A
manufacturer
of
alcoholic
liquor
7
may
ship
alcoholic
liquor
in
closed
containers
to
individual
8
purchasers
inside
this
state
by
obtaining
an
alcoholic
liquor
9
direct
shipper
license
pursuant
to
section
123.42A.
10
Sec.
7.
NEW
SECTION
.
123.42A
Direct
shipment
of
alcoholic
11
liquor
——
license
and
requirements.
12
1.
An
alcoholic
liquor
manufacturer
licensed
or
permitted
13
pursuant
to
laws
regulating
alcoholic
beverages
in
this
state
14
or
another
state
may
apply
for
an
alcoholic
liquor
direct
15
shipper
license,
as
provided
in
this
section.
For
the
purposes
16
of
this
section,
an
“alcoholic
liquor
manufacturer”
means
a
17
business
with
an
operating
still
which
distills
spirits,
barrel
18
matures
spirits
for
a
period
of
two
years
on
the
licensed
19
premises
of
the
distillery
where
matured,
or
blends
or
mixes
20
spirits
comprised
solely
of
spirits
distilled
or
barrel
matured
21
for
a
period
of
two
years
on
the
licensed
premises
of
the
22
distillery.
23
2.
a.
Only
an
alcoholic
liquor
manufacturer
that
holds
an
24
alcoholic
liquor
direct
shipper
license
issued
pursuant
to
this
25
section
is
authorized
to
sell
alcoholic
liquor
at
retail
for
26
direct
shipment
to
any
person
within
this
state.
This
section
27
does
not
prohibit
an
authorized
retail
licensee
or
permittee
28
from
delivering
alcoholic
liquor
pursuant
to
section
123.46A.
29
b.
An
alcoholic
liquor
manufacturer
applying
for
an
30
alcoholic
liquor
direct
shipper
license
shall
submit
an
31
application
for
the
license
electronically,
or
in
a
manner
32
prescribed
by
the
director,
accompanied
by
a
true
copy
of
33
the
manufacturer’s
current
alcoholic
beverage
license
or
34
permit
issued
by
the
state
where
the
manufacturer
is
primarily
35
-2-
LSB
1058YH
(3)
91
ll/ns
2/
10
H.F.
140
located,
a
copy
of
the
manufacturer’s
basic
permit
issued
by
1
the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
2
States
department
of
the
treasury,
and
documents
filed
by
the
3
manufacturer
with
the
alcohol
and
tobacco
tax
and
trade
bureau
4
of
the
United
States
department
of
the
treasury
that
show
the
5
total
number
of
proof
gallons
of
distilled
spirits
produced
and
6
manufactured
by
the
manufacturer
for
the
preceding
calendar
7
year.
8
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
9
be
accompanied
by
a
license
fee
in
the
amount
of
twenty-five
10
dollars.
11
d.
A
license
issued
pursuant
to
this
section
may
be
renewed
12
annually
by
submitting
a
renewal
application
with
the
director
13
in
a
manner
prescribed
by
the
director,
accompanied
by
the
14
twenty-five
dollar
license
fee.
15
3.
The
direct
shipment
of
alcoholic
liquor
pursuant
to
this
16
section
is
subject
to
all
of
the
following
requirements
and
17
restrictions:
18
a.
Alcoholic
liquor
shall
only
be
shipped
to
a
resident
of
19
this
state
who
is
at
least
twenty-one
years
of
age,
for
the
20
resident’s
personal
use
and
consumption
and
not
for
resale
as
21
follows:
22
(1)
An
alcoholic
liquor
direct
shipper
licensee
may
sell
23
and
ship
alcoholic
liquor
to
any
person
who
is
at
least
24
twenty-one
years
of
age
for
personal
use
and
not
for
resale
if
25
the
licensee
produces
in,
or
imports
into,
the
United
States
26
one
hundred
fifty
thousand
proof
gallons
or
fewer
of
distilled
27
spirits
per
calendar
year.
28
(2)
An
alcoholic
liquor
direct
shipper
licensee
may
sell
and
29
ship
up
to
nine
liters
of
alcoholic
liquor
per
calendar
year
to
30
any
person
who
is
at
least
twenty-one
years
of
age
for
personal
31
use
and
not
for
resale
if
the
licensee
produces
in,
or
imports
32
into,
the
United
States
more
than
one
hundred
fifty
thousand
33
proof
gallons
of
distilled
spirits
per
calendar
year.
34
b.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
35
-3-
LSB
1058YH
(3)
91
ll/ns
3/
10
H.F.
140
properly
registered
with
the
federal
alcohol
and
tobacco
tax
1
and
trade
bureau,
and
manufactured
on
the
licensed
premises
of
2
the
alcoholic
liquor
direct
shipper
licensee.
3
c.
Alcoholic
liquor
subject
to
direct
shipping
shall
be
4
properly
registered
with
the
department.
Products
which
are
5
not
listed
for
sale
by
the
department
must
be
registered
6
electronically
with
the
department
for
direct
shipping.
This
7
registration
must
include
the
name
of
the
manufacturer,
the
8
name
of
the
brand,
the
standard
of
fill,
the
wholesale
price,
9
and
other
information
as
requested
by
the
department.
The
10
registration
shall
be
updated
as
necessary
to
ensure
the
11
department
possesses
an
accurate,
current
registration.
12
d.
All
containers
of
alcoholic
liquor
shipped
directly
to
a
13
resident
of
this
state
shall
be
conspicuously
labeled
with
the
14
words
“CONTAINS
ALCOHOL:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
15
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
16
alternative
wording
preapproved
by
the
director.
17
e.
All
containers
of
alcoholic
liquor
shipped
directly
18
to
a
resident
of
this
state
shall
be
shipped
by
a
holder
of
19
an
alcoholic
beverage
carrier
permit
as
provided
in
section
20
123.188.
21
f.
Shipment
of
alcoholic
liquor
pursuant
to
this
subsection
22
does
not
require
a
refund
value
for
beverage
container
control
23
purposes
under
chapter
455C.
24
4.
An
alcoholic
liquor
direct
shipper
licensee
shipping
25
alcoholic
liquor
to
this
state
shall
remit
the
following
amount
26
to
the
department
in
a
manner
as
directed
by
the
department:
27
a.
For
alcoholic
liquor
that
is
listed
for
sale
by
the
28
department,
an
amount
equivalent
to
fifty
percent
of
the
listed
29
wholesale
price.
30
b.
For
alcoholic
liquor
that
is
not
listed
for
sale
by
31
the
department,
an
amount
equivalent
to
fifty
percent
of
32
the
wholesale
price
as
registered
with
the
department
under
33
subsection
3.
34
5.
Each
alcoholic
liquor
direct
shipper
licensee
shall
make
35
-4-
LSB
1058YH
(3)
91
ll/ns
4/
10
H.F.
140
a
report
under
oath
to
the
department
electronically,
or
in
a
1
manner
prescribed
by
the
director,
on
or
before
the
tenth
day
2
of
each
month,
which
includes
all
of
the
following
information:
3
a.
The
products
and
quantities
shipped
directly
to
residents
4
of
this
state
in
the
preceding
month.
5
b.
The
name
and
address
of
the
individuals
to
whom
the
6
alcoholic
liquor
was
sold
in
each
sale.
7
c.
The
wholesale
price
of
the
alcoholic
liquor
sold.
8
d.
The
purchase
price
of
the
alcoholic
liquor
sold
and
9
the
amount
of
taxes
charged
to
the
individual
purchasing
the
10
alcoholic
liquor.
11
e.
The
alcoholic
beverage
carrier
permittee
who
delivered
12
the
shipment.
13
f.
All
documents
filed
by
the
alcoholic
liquor
direct
14
shipper
licensee
with
the
alcohol
and
tobacco
tax
and
trade
15
bureau
of
the
United
States
department
of
treasury
for
the
16
preceding
month,
including
all
production,
storage,
and
17
processing
reports.
18
6.
The
license
holder
at
the
time
of
filing
the
report
as
19
required
by
subsection
5
shall
pay
to
the
department
the
amount
20
as
required
pursuant
to
subsection
4.
The
department
shall
21
assess
and
collect
a
civil
penalty
of
ten
percent
of
the
amount
22
due
if
the
report
required
to
be
filed
pursuant
to
this
section
23
and
the
amount
required
to
be
paid
as
provided
by
subsection
24
4
is
not
filed
and
the
amount
paid
within
the
time
required
by
25
this
section.
26
7.
An
alcoholic
liquor
direct
shipper
licensee
shall
be
27
deemed
to
have
consented
to
the
jurisdiction
of
the
department
28
or
any
other
agency
or
court
in
this
state
concerning
29
enforcement
of
this
section
and
any
related
laws,
rules,
or
30
regulations.
A
license
holder
shall
allow
the
department
to
31
perform
an
audit
of
shipping
records
upon
request.
32
8.
A
violation
of
this
section
shall
subject
the
licensee
33
to
the
general
penalties
provided
in
this
chapter
and
shall
34
constitute
grounds
for
imposition
of
a
civil
penalty
or
35
-5-
LSB
1058YH
(3)
91
ll/ns
5/
10
H.F.
140
suspension
or
revocation
of
the
license
pursuant
to
section
1
123.39.
2
Sec.
8.
Section
123.43A,
subsection
2,
Code
2025,
is
amended
3
to
read
as
follows:
4
2.
A
native
distillery
shall
not
sell
more
than
nine
5
liters
per
person
per
day,
of
native
distilled
spirits
on
6
the
premises
of
the
native
distillery.
However,
a
native
7
distillery
shall
not
directly
may
ship
native
distilled
spirits
8
for
sale
at
retail
manufactured
by
the
native
distillery
in
9
closed
containers
to
individual
purchasers
inside
the
state
by
10
obtaining
an
alcoholic
liquor
direct
shipper
license
pursuant
11
to
section
123.42A
.
The
native
distillery
shall
maintain
12
records
of
individual
purchases
of
native
distilled
spirits
at
13
the
native
distillery
for
three
years.
14
Sec.
9.
Section
123.43A,
subsection
7,
Code
2025,
is
amended
15
to
read
as
follows:
16
7.
A
native
distillery
may
sell
the
native
distilled
spirits
17
it
manufactures
to
customers
outside
the
state
,
pursuant
to
the
18
laws
of
that
jurisdiction
.
19
Sec.
10.
Section
123.46A,
subsection
5,
Code
2025,
is
20
amended
to
read
as
follows:
21
5.
Nothing
in
this
section
shall
impact
the
direct
shipment
22
of
alcoholic
liquor
as
regulated
by
section
123.42A
or
the
23
direct
shipment
of
wine
as
regulated
by
section
123.187
.
24
Sec.
11.
Section
123.173C,
subsection
4,
paragraphs
b
and
d,
25
Code
2025,
are
amended
to
read
as
follows:
26
b.
A
person,
within
or
outside
of
the
state,
who
desires
27
to
ship
wine
from
a
private
collection
to
a
wine
auction
28
permittee
to
be
sold
at
auction
shall
do
so
through
a
holder
of
29
a
wine
an
alcoholic
beverage
carrier
permit.
The
wine
auction
30
permittee
shall
ensure
that
each
bottle
of
wine
so
acquired
31
is
permanently
affixed
with
a
label
stating
that
the
wine
was
32
acquired
from
a
private
collection.
33
d.
A
permittee
is
responsible
for
the
storage
of
all
wines
34
that
are
to
be
offered
at
auction
at
the
licensed
premises,
35
-6-
LSB
1058YH
(3)
91
ll/ns
6/
10
H.F.
140
and
for
the
subsequent
shipment
and
delivery
of
all
wines
sold
1
at
auction
to
the
purchasers
of
the
wines.
Shipment
of
wine
2
pursuant
to
this
paragraph
shall
only
be
done
by
a
holder
of
a
3
wine
an
alcoholic
beverage
carrier
permit.
4
Sec.
12.
Section
123.187,
subsection
3,
paragraph
d,
Code
5
2025,
is
amended
to
read
as
follows:
6
d.
All
containers
of
wine
shipped
directly
to
a
resident
of
7
this
state
shall
be
shipped
by
a
holder
of
a
wine
an
alcoholic
8
beverage
carrier
permit
as
provided
in
section
123.188
.
9
Sec.
13.
Section
123.188,
subsections
1,
2,
and
4,
Code
10
2025,
are
amended
to
read
as
follows:
11
1.
A
person
desiring
to
deliver
alcoholic
liquor
subject
to
12
direct
shipment
within
this
state
pursuant
to
section
123.42A,
13
wine
subject
to
direct
shipment
within
this
state
pursuant
to
14
section
123.187
,
or
to
deliver
wine
shipped
to
or
by
a
wine
15
auction
permittee
pursuant
to
section
123.173C
,
shall
submit
16
an
application
for
a
wine
an
alcoholic
beverage
carrier
permit
17
electronically,
or
in
a
manner
prescribed
by
the
director,
18
which
shall
be
accompanied
by
a
fee
in
the
amount
of
one
19
hundred
dollars.
20
2.
The
director
may
in
accordance
with
this
chapter
issue
a
21
wine
an
alcoholic
beverage
carrier
permit
which
shall
be
valid
22
for
one
year
from
the
date
of
issuance
unless
it
is
sooner
23
suspended
or
revoked
for
a
violation
of
this
chapter
.
24
4.
The
delivery
of
alcoholic
liquor
or
wine
pursuant
to
this
25
section
shall
be
is
subject
to
the
following
requirements
and
26
restrictions:
27
a.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
not
28
deliver
alcoholic
liquor
or
wine
to
any
person
under
twenty-one
29
years
of
age,
or
to
any
person
who
either
is
or
appears
to
be
in
30
an
intoxicated
state
or
condition.
31
b.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
32
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
33
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
34
delivery.
35
-7-
LSB
1058YH
(3)
91
ll/ns
7/
10
H.F.
140
c.
A
wine
An
alcoholic
beverage
carrier
permittee
shall
1
maintain
records
of
alcoholic
liquor
or
wine
shipped
which
2
include
the
permit
number
and
name
of
the
alcoholic
liquor
3
or
wine
manufacturer
or
wine
auction
permittee,
quantity
of
4
alcoholic
liquor
or
wine
shipped,
recipient’s
name
and
address,
5
and
an
electronic
or
paper
form
of
signature
from
the
recipient
6
of
the
alcoholic
liquor
or
wine.
Records
shall
be
submitted
7
to
the
department
on
a
monthly
basis
in
a
form
and
manner
to
be
8
determined
by
the
department.
9
Sec.
14.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
10
2026.
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
allows
for
the
direct
shipment
of
alcoholic
liquor
15
within
the
state.
16
New
Code
section
123.42A
provides
for
the
direct
shipment
of
17
alcoholic
liquor
and
provides
for
an
alcoholic
liquor
direct
18
shipper
license.
An
alcoholic
liquor
direct
shipper
licensee
19
(licensee)
may
sell
and
ship
any
amount
of
alcoholic
liquor
to
20
any
person
who
is
at
least
21
years
of
age
for
personal
use
and
21
not
for
resale
if
the
licensee
produces
in,
or
imports
into,
22
the
United
States
150,000
proof
gallons
or
fewer
of
distilled
23
spirits
per
calendar
year.
If
the
licensee
produces
or
24
imports
more
than
150,000
proof
gallons
of
distilled
spirits,
25
a
licensee
may
sell
and
ship
up
to
nine
liters
of
alcoholic
26
liquor
per
calendar
year
to
a
person
21
years
of
age
or
older.
27
The
annual
fee
for
the
license
is
$25.
28
Provisions
governing
the
direct
shipment
of
wine
and
the
29
wine
direct
shipper
permit
are
generally
made
applicable
to
the
30
direct
shipment
of
alcoholic
liquor.
31
The
bill
requires
all
alcoholic
liquor
subject
to
direct
32
shipping
to
be
properly
registered
with
the
department
of
33
revenue
(department)
and
that
products
which
are
not
listed
34
for
sale
by
the
department
must
be
registered
to
include
35
-8-
LSB
1058YH
(3)
91
ll/ns
8/
10
H.F.
140
information
on
the
name
of
the
manufacturer,
the
name
of
1
the
brand,
the
standard
of
fill,
the
wholesale
price,
and
2
other
information
as
requested
by
the
department.
The
bill
3
also
requires
each
licensee
to
make
a
monthly
report
to
the
4
department
that
lists
the
products
and
quantities
shipped
5
directly
to
residents
of
this
state
in
the
preceding
month,
6
the
name
and
address
of
the
individuals
to
whom
the
alcoholic
7
liquor
was
sold
in
each
sale,
the
wholesale
price
of
the
8
alcoholic
liquor
sold,
the
purchase
price
and
taxes
charged
9
of
the
alcoholic
liquor
sold,
the
alcoholic
beverage
carrier
10
permittee
who
delivered
each
shipment,
and
documents
filed
by
11
the
licensee
with
the
alcohol
and
tobacco
tax
and
trade
bureau
12
of
the
United
States
department
of
treasury
for
the
preceding
13
month,
including
all
production,
storage,
and
processing
14
reports.
15
Finally,
the
bill
requires
a
licensee
to
remit
an
amount
16
to
the
department
depending
on
whether
the
alcoholic
liquor
17
shipped
is
listed
for
sale
by
the
department.
If
the
alcoholic
18
liquor
is
listed
for
sale
by
the
department,
the
permittee
19
shall
remit
to
the
department
an
amount
equivalent
to
50
20
percent
of
the
wholesale
price
paid
by
the
department
for
21
the
alcoholic
liquor.
If
the
alcoholic
liquor
is
not
listed
22
for
sale
by
the
department,
the
permittee
shall
remit
to
23
the
department
an
amount
equivalent
to
50
percent
of
the
24
wholesale
price
of
the
alcoholic
liquor
as
registered
with
25
the
department.
The
bill
provides
that
a
civil
penalty
of
10
26
percent
of
the
amount
due
shall
be
assessed
and
collected
if
27
the
amount
required
to
be
paid
to
the
department
as
provided
28
by
the
bill
is
not
paid
within
the
time
required.
Generally,
29
moneys
collected
by
the
department
under
Code
chapter
123
for
30
the
issuance
of
permits
and
licenses,
and
other
moneys
and
31
receipts
received
by
the
department
from
any
other
source
under
32
the
Code
chapter,
are
deposited
in
the
beer
and
liquor
control
33
fund
(Code
section
123.17).
Civil
penalties
imposed
and
34
collected
by
the
department
under
the
Code
chapter
are
credited
35
-9-
LSB
1058YH
(3)
91
ll/ns
9/
10
H.F.
140
to
the
general
fund
of
the
state.
1
The
bill
allows
a
manufacturer
of
alcoholic
liquor
and
a
2
native
distillery
to
ship
alcoholic
liquor
or
native
distilled
3
spirits,
as
applicable,
to
individual
purchasers
inside
this
4
state
by
obtaining
an
alcoholic
liquor
direct
shipper
license
5
as
established
in
the
bill.
6
The
bill
replaces
the
wine
carrier
permit
under
current
law
7
with
an
alcoholic
beverage
carrier
permit
to
provide
for
the
8
direct
shipment
of
alcoholic
liquor
as
provided
by
the
bill.
9
The
bill
takes
effect
January
1,
2026.
10
-10-
LSB
1058YH
(3)
91
ll/ns
10/
10