Read the full stored bill text
House
File
2355
-
Introduced
HOUSE
FILE
2355
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
581)
(COMPANION
TO
SF
2140
BY
COMMITTEE
ON
STATE
GOVERNMENT)
A
BILL
FOR
An
Act
relating
to
alcoholic
beverage
control,
including
1
certificates
of
compliance
and
the
issuance
of
class
“A”
2
wine
permits
to
nonnative
wine
manufacturers,
and
providing
3
fees.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5476HV
(3)
91
jm/ns
H.F.
2355
Section
1.
Section
123.3,
subsection
40,
paragraph
c,
Code
1
2026,
is
amended
to
read
as
follows:
2
c.
Notwithstanding
paragraph
“e”
,
the
applicant
is
a
citizen
3
of
the
United
States
and
a
resident
of
this
state,
or
licensed
4
to
do
business
in
this
state
in
the
case
of
a
corporation.
5
Notwithstanding
paragraph
“e”
,
in
the
case
of
a
partnership,
6
only
one
general
partner
need
be
a
resident
of
this
state.
The
7
residency
requirements
of
this
paragraph
do
not
apply
to
an
8
applicant
for
a
class
“A”
wine
permit
issued
to
a
nonnative
9
wine
manufacturer
pursuant
to
section
123.176A.
10
Sec.
2.
Section
123.23,
subsection
1,
Code
2026,
is
amended
11
to
read
as
follows:
12
1.
Any
manufacturer,
distiller,
or
importer
of
alcoholic
13
liquors
shipping,
selling,
or
having
alcoholic
liquors
brought
14
into
this
state
for
resale
by
the
state
department
shall,
as
15
a
condition
precedent
to
the
privilege
of
so
trafficking
in
16
alcoholic
liquors
in
this
state,
annually
make
application
for
17
and
hold
a
distiller’s
certificate
of
compliance
which
shall
18
be
issued
by
the
director
for
that
purpose.
No
A
brand
of
19
alcoholic
liquor
brought
into
this
state
shall
not
be
sold
20
by
the
department
in
this
state
unless
the
manufacturer,
21
distiller,
or
importer
,
and
all
other
persons
participating
22
in
the
distribution
of
that
brand
in
this
state
have
has
23
obtained
a
certificate.
The
certificate
of
compliance
shall
24
expire
at
the
end
of
one
year
from
the
date
of
issuance
and
25
shall
be
renewed
for
a
like
period
upon
application
to
the
26
director
unless
otherwise
suspended
or
revoked
for
cause.
27
Each
completed
application
for
a
certificate
of
compliance
28
or
renewal
shall
be
submitted
electronically,
or
in
a
manner
29
prescribed
by
the
director,
and
shall
be
accompanied
by
a
fee
30
of
two
hundred
dollars
payable
to
the
department.
However,
31
this
subsection
need
not
apply
to
a
manufacturer,
distiller,
or
32
importer
who
ships
or
sells
in
this
state
no
more
than
eleven
33
gallons
or
its
case
equivalent
during
any
fiscal
year
as
a
34
result
of
“special
orders”
which
might
be
placed,
as
defined
35
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2355
and
allowed
by
departmental
rules
adopted
under
this
chapter
.
1
Sec.
3.
Section
123.23,
subsection
5,
Code
2026,
is
amended
2
by
striking
the
subsection.
3
Sec.
4.
Section
123.135,
subsections
1,
2,
and
3,
Code
2026,
4
are
amended
to
read
as
follows:
5
1.
A
manufacturer,
brewer,
bottler,
importer,
or
vendor
6
of
beer,
or
any
agent
thereof,
desiring
to
ship
or
sell
beer,
7
or
have
beer
brought
into
this
state
for
resale
by
a
class
8
“A”
beer
permittee,
shall
first
make
application
for
and
be
9
issued
a
brewer’s
certificate
of
compliance
by
the
director
10
for
that
purpose.
The
certificate
of
compliance
expires
at
11
the
end
of
one
year
from
the
date
of
issuance
and
shall
be
12
renewed
for
a
like
period
upon
application
to
the
director
13
unless
otherwise
revoked
for
cause.
Each
completed
application
14
for
a
certificate
of
compliance
or
renewal
of
a
certificate
15
shall
be
submitted
electronically,
or
in
a
manner
prescribed
16
by
the
director,
and
shall
be
accompanied
by
a
fee
of
two
17
hundred
dollars
payable
to
the
department.
Each
holder
of
a
18
certificate
of
compliance
shall
furnish
the
information
in
19
a
manner
the
director
requires.
The
holder
of
a
brewer’s
20
certificate
of
compliance
may
also
hold
a
class
“A”
beer
21
permit.
22
2.
At
the
time
of
applying
for
a
certificate
of
compliance,
23
each
applicant
shall
file
with
the
department
electronically,
24
or
in
a
manner
prescribed
by
the
director,
a
list
of
all
class
25
“A”
beer
permittees
with
whom
it
intends
to
do
business
and
26
shall
designate
a
designation
of
the
geographic
area
in
which
27
its
products
are
to
be
distributed
by
such
permittee.
The
28
listing
of
class
“A”
beer
permittees
and
geographic
area
as
29
filed
with
the
department
shall
be
amended
by
the
holder
of
30
a
certificate
of
compliance
as
necessary
to
keep
the
listing
31
current
with
the
department.
32
3.
All
class
“A”
beer
permit
holders
shall
sell
only
those
33
brands
of
beer
brought
into
the
state
which
are
manufactured,
34
brewed,
bottled,
shipped,
or
imported
by
a
person
holding
a
35
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2355
current
certificate
of
compliance.
Any
employee
or
agent
1
working
for
or
representing
the
holder
of
a
certificate
of
2
compliance
within
this
state
shall
submit
electronically,
or
in
3
a
manner
prescribed
by
the
director,
the
employee’s
or
agent’s
4
name
and
address
with
the
department.
5
Sec.
5.
Section
123.173,
subsection
2,
Code
2026,
is
amended
6
to
read
as
follows:
7
2.
A
class
“A”
wine
permit
allows
the
holder
to
manufacture
8
and
sell,
or
sell
at
wholesale,
in
this
state,
wine.
The
9
holder
of
a
class
“A”
wine
permit
may
manufacture
in
this
state
10
wine
having
an
alcoholic
content
greater
than
seventeen
percent
11
by
weight
or
twenty-one
and
twenty-five
hundredths
percent
of
12
alcohol
by
volume
for
shipment
outside
this
state.
All
Except
13
as
provided
in
section
123.176A,
all
class
“A”
premises
shall
14
be
located
within
the
state.
15
Sec.
6.
Section
123.175,
subsection
2,
paragraph
c,
Code
16
2026,
is
amended
to
read
as
follows:
17
c.
That
the
applicant
is
a
citizen
resident
of
the
state
18
of
Iowa
or,
if
a
corporation,
that
the
applicant
is
authorized
19
to
do
business
in
the
state.
This
paragraph
does
not
apply
if
20
the
applicant
is
the
state
of
Iowa
or
a
state
agency
as
defined
21
in
section
669.2
.
The
residency
requirement
of
this
paragraph
22
does
not
apply
to
a
nonnative
wine
manufacturer
under
section
23
123.176A.
24
Sec.
7.
NEW
SECTION
.
123.176A
Nonnative
wine
manufacturers.
25
1.
As
used
in
this
section,
“nonnative
wine
manufacturer”
26
means
a
person
who
processes
the
fruit,
vegetables,
dandelions,
27
clover,
honey,
or
any
combination
of
these
ingredients,
by
28
fermentation
into
wines
on
a
premises
located
outside
of
this
29
state.
30
2.
A
nonnative
wine
manufacturer
licensed
or
permitted
31
pursuant
to
laws
regulating
alcoholic
beverages
in
another
32
state
may
apply
for
and
be
issued
a
class
“A”
wine
permit,
as
33
provided
in
section
123.175,
without
being
a
resident
of
this
34
state.
35
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3.
A
nonnative
wine
manufacturer
holding
a
class
“A”
wine
1
permit
may
sell,
or
sell
at
wholesale,
in
this
state,
wine
2
that
the
nonnative
wine
manufacturer
has
itself
manufactured
3
by
fermentation
on
its
out-of-state
licensed
or
permitted
4
premises,
provided
the
wine
is
properly
registered
with
the
5
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
6
department
of
the
treasury.
Pursuant
to
section
123.177,
such
7
sales
shall
only
be
made
to
persons
holding
a
class
“A”
wine
8
permit
or
to
persons
holding
a
retail
alcohol
license.
9
4.
A
nonnative
wine
manufacturer
shall
not
sell
in
this
10
state
wine
fermented
by
another
manufacturer.
11
5.
A
nonnative
wine
manufacturer
may
ship
wine
in
closed
12
containers
to
individual
purchasers
within
this
state
by
13
obtaining
a
wine
direct
shipper
permit
pursuant
to
section
14
123.187.
15
6.
A
nonnative
wine
manufacturer
that
holds
a
class
“A”
wine
16
permit
shall
be
deemed
to
have
consented
to
the
jurisdiction
17
of
the
department
or
any
other
agency
or
court
in
this
state
18
concerning
enforcement
of
this
chapter
and
any
related
laws,
19
rules,
or
regulations.
A
permit
holder
shall
allow
the
20
department
to
perform
an
audit
of
manufacturing
and
sales
21
records
upon
request.
22
7.
A
violation
of
this
section
shall
subject
the
permit
23
holder
to
the
general
penalties
provided
in
this
chapter
and
24
shall
constitute
grounds
for
imposition
of
a
civil
penalty
or
25
suspension
or
revocation
of
the
permit
pursuant
to
section
26
123.39.
27
Sec.
8.
Section
123.177,
subsection
2,
Code
2026,
is
amended
28
to
read
as
follows:
29
2.
A
class
“A”
wine
permit
holder
may
purchase
and
resell
30
only
those
brands
of
wine
brought
into
the
state
which
are
31
manufactured,
fermented,
bottled,
shipped,
or
imported
by
a
32
person
holding
a
certificate
of
compliance
issued
pursuant
to
33
section
123.180
.
34
Sec.
9.
Section
123.179,
Code
2026,
is
amended
to
read
as
35
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2355
follows:
1
123.179
Wine
permit
and
license
fees.
2
1.
The
annual
permit
fee
for
a
class
“A”
wine
permit
that
3
is
not
issued
to
a
native
wine
manufacturer
is
seven
hundred
4
fifty
dollars
,
except
the
annual
permit
fee
for
a
class
“A”
5
wine
permit
issued
to
a
native
wine
manufacturer
as
provided
in
6
section
123.176
or
a
nonnative
wine
manufacturer
as
provided
in
7
section
123.176A
is
one
hundred
dollars
.
8
2.
The
annual
permit
fee
for
a
class
“A”
wine
permit
issued
9
to
a
native
wine
manufacturer
is
one
hundred
dollars.
10
3.
2.
The
fee
for
a
charity
beer,
spirits,
and
wine
special
11
event
license
is
one
hundred
dollars.
12
4.
3.
The
fee
for
a
wine
auction
permit
is
one
hundred
13
dollars.
14
Sec.
10.
Section
123.180,
subsections
1,
2,
and
3,
Code
15
2026,
are
amended
to
read
as
follows:
16
1.
A
manufacturer,
vintner,
bottler,
importer,
or
vendor
17
of
wine,
or
an
agent
thereof,
desiring
to
ship,
sell,
or
have
18
wine
brought
into
this
state
for
sale
at
wholesale
resale
by
19
a
class
“A”
wine
permittee
shall
first
make
application
for
20
and
shall
be
issued
a
vintner’s
certificate
of
compliance
by
21
the
director
for
that
purpose.
The
vintner’s
certificate
22
of
compliance
shall
expire
at
the
end
of
one
year
from
the
23
date
of
issuance
and
shall
be
renewed
for
a
like
period
upon
24
application
to
the
director
unless
otherwise
revoked
for
25
cause.
Each
completed
application
for
a
vintner’s
certificate
26
of
compliance
or
renewal
of
a
certificate
shall
be
submitted
27
electronically,
or
in
a
manner
prescribed
by
the
director,
and
28
shall
be
accompanied
by
a
fee
of
two
hundred
dollars
payable
29
to
the
department.
Each
holder
of
a
vintner’s
certificate
30
of
compliance
shall
furnish
the
information
required
by
the
31
director
in
the
form
the
director
requires.
A
vintner
or
wine
32
bottler
whose
plant
is
located
in
Iowa
and
who
otherwise
holds
33
a
class
“A”
wine
permit
to
sell
wine
at
wholesale
is
exempt
34
from
the
fee,
but
not
the
other
terms
and
conditions.
The
35
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holder
of
a
vintner’s
certificate
of
compliance
may
also
hold
a
1
class
“A”
wine
permit.
2
2.
At
the
time
of
applying
for
a
vintner’s
certificate
3
of
compliance,
each
applicant
shall
file
with
the
department
4
electronically,
or
in
a
manner
prescribed
by
the
director,
a
5
list
of
all
class
“A”
wine
permittees
with
whom
it
intends
6
to
do
business.
The
listing
of
class
“A”
wine
permittees
as
7
filed
with
the
department
shall
be
amended
by
the
holder
of
8
the
certificate
of
compliance
as
necessary
to
keep
the
listing
9
current
with
the
department.
10
3.
a.
Except
as
provided
in
paragraph
“b”
,
all
class
11
“A”
wine
permit
holders
shall
sell
only
those
brands
of
12
wine
brought
into
the
state
which
are
manufactured,
bottled,
13
fermented,
shipped,
or
imported
by
a
person
holding
a
14
current
vintner’s
certificate
of
compliance.
An
employee
or
15
agent
working
for
or
representing
the
holder
of
a
vintner’s
16
certificate
of
compliance
within
this
state
shall
register
the
17
employee’s
or
agent’s
name
and
address
with
the
department
18
electronically,
or
register
in
a
manner
prescribed
by
the
19
director
.
These
names
and
addresses
shall
be
filed
with
the
20
department’s
copy
of
the
certificate
of
compliance
issued
21
except
that
this
provision
does
not
require
the
listing
of
22
those
persons
who
are
employed
on
the
premises
of
a
bottling
23
plant,
or
winery
where
wine
is
manufactured,
fermented,
24
or
bottled
in
Iowa
or
the
listing
of
those
persons
who
are
25
thereafter
engaged
in
the
transporting
of
the
wine.
26
b.
A
class
“A”
wine
permit
holder
may
sell
brands
of
wine
27
brought
into
the
state
which
are
not
manufactured,
bottled,
28
fermented,
shipped,
or
imported
by
a
person
holding
a
current
29
vintner’s
certificate
of
compliance
if
the
brands
of
wine
were
30
purchased
from
a
private
sale
pursuant
to
section
123.171,
31
subsection
4
,
or
if
authorized
by
the
laws
of
another
state.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
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2355
This
bill
relates
to
alcoholic
beverage
control
by
making
1
changes
to
distiller’s,
vintner’s,
and
brewer’s
certificates
of
2
compliance
(certificates)
and
by
allowing
for
the
issuance
of
3
class
“A”
wine
permits
to
nonnative
wine
manufacturers.
4
The
bill
strikes
a
provision
requiring
persons
participating
5
in
the
distribution
of
an
alcoholic
liquor
brand,
other
6
than
manufacturers,
distillers,
and
importers,
to
obtain
a
7
distiller’s
certificate
prior
to
the
resale
of
that
brand
in
8
this
state.
The
bill
also
strikes
a
provision
specifying
9
the
certificate
is
not
required
to
be
accompanied
by
a
list
10
of
persons
employed
on
the
premises
where
alcoholic
liquors
11
are
manufactured,
processed,
bottled,
or
packaged
or
who
are
12
employed
in
transporting
such
liquors.
13
Currently,
an
application
for
a
distiller’s,
brewer’s,
or
14
vintner’s
certificate
requires
the
application
to
be
submitted
15
to
the
department
of
revenue
(department)
electronically,
or
in
16
a
manner
prescribed
by
the
director
of
revenue
(director).
For
17
a
brewer’s
certificate,
the
bill
specifies
that
the
required
18
list
of
all
class
“A”
beer
permittees
with
whom
the
applicant
19
intends
to
do
business
and
the
designated
distribution
area
20
must
also
be
submitted
to
the
department
electronically
or
in
a
21
manner
prescribed
by
the
director.
The
bill
also
specifies
the
22
holder
of
a
brewer’s
certificate
of
compliance
may
also
hold
a
23
class
“A”
beer
permit.
24
The
bill
strikes
a
provision
exempting
a
vintner
or
wine
25
bottler
with
a
plant
in
Iowa
and
holding
a
class
“A”
wine
26
permit
from
paying
the
$200
fee
accompanying
an
application
for
27
a
vintner’s
certificate.
The
bill
requires
(1)
each
applicant
28
for
a
vintner’s
certificate
to
file
with
the
department
29
electronically,
or
in
a
manner
prescribed
by
the
director,
a
30
list
of
all
class
“A”
wine
permittees
the
applicant
intends
to
31
do
business
with
in
the
state,
and
(2)
each
employee
or
agent
32
working
for
or
representing
the
certificate
holder
to
similarly
33
submit
electronically
with
the
department
the
person’s
name
34
and
address.
The
bill
also
strikes
a
provision
specifying
a
35
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certificate
is
not
required
to
be
accompanied
by
a
list
of
1
persons
employed
on
the
premises
of
a
bottling
plant
or
winery
2
or
persons
who
are
employed
in
transporting
the
wine.
3
New
Code
section
123.176A
allows
a
nonnative
wine
4
manufacturer
(manufacturer)
to
apply
for
a
class
“A”
wine
5
permit
and
to
sell
or
sell
at
wholesale
wine
the
manufacturer
6
has
manufactured
on
its
permitted
or
licensed
premises
that
7
are
located
in
another
state,
provided
the
wine
is
properly
8
registered
with
the
federal
alcohol
and
tobacco
tax
and
trade
9
bureau.
Class
“A”
wine
permits
are
governed
by
Code
sections
10
123.173,
123.175,
and
123.177,
which
generally
allow
a
resident
11
holder
of
the
permit
to
manufacture
and
sell
or
sell
at
12
wholesale
wine
for
consumption
off
premises
in
this
state.
13
A
sale
by
the
manufacturer
within
this
state
is
restricted
to
14
sales
made
to
a
person
holding
a
class
“A”
wine
permit
or
to
a
15
person
holding
a
retail
alcohol
license,
pursuant
to
current
16
law.
The
bill
prohibits
a
manufacturer
from
selling
in
this
17
state
wine
fermented
by
any
other
manufacturer.
The
bill
also
18
specifies
the
manufacturer
may
ship
wine
in
closed
containers
19
to
purchasers
in
this
state
by
obtaining
a
wine
direct
shipper
20
permit.
21
By
holding
a
class
“A”
wine
permit,
the
manufacturer
is
22
deemed
to
have
consented
to
the
jurisdiction
of
the
department
23
and
the
courts
for
enforcement,
and
must
allow
audits
of
24
manufacturing
and
sales
records
upon
request.
Violations
of
25
the
bill
subject
the
manufacturer
to
general
penalties
provided
26
in
Code
chapter
123
and
constitute
grounds
for
imposition
of
27
a
civil
penalty
or
suspension
or
revocation
of
the
permit
as
28
provided
in
Code
section
123.39.
29
The
bill
establishes
the
annual
fee
for
a
class
“A”
wine
30
permit
issued
to
a
manufacturer
at
$100,
which
is
equal
31
to
the
annual
class
“A”
wine
permit
fee
issued
to
a
native
32
manufacturer.
33
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