A bill for an act concerning native distilled spirits listed and sold by the department of revenue.

House

File

459

-

Introduced

HOUSE

FILE

459

BY

JONES

A

BILL

FOR

An

Act

concerning

native

distilled

spirits

listed

and

sold

by

1

the

department

of

revenue.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

2431YH

(2)

91

ll/ns

H.F.

459

Section

1.

Section

123.10,

subsection

3,

Code

2025,

is

1

amended

to

read

as

follows:

2

3.

Regulating

the

purchase

of

alcoholic

liquor

generally

3

and

the

furnishing

of

the

liquor

to

class

“E”

retail

alcohol

4

licensees

under

this

chapter

,

and

determining

the

classes,

5

varieties,

and

brands

of

alcoholic

liquors

to

be

kept

in

state

6

warehouses.

However,

the

director

shall

not

delist

a

native

7

distillery’s

native

distilled

spirits

based

solely

on

a

failure

8

to

meet

sales

guidelines

once

the

director

determines

to

list

9

the

native

distillery’s

native

distilled

spirits.

10

EXPLANATION

11

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

12

the

explanation’s

substance

by

the

members

of

the

general

assembly.

13

Under

current

law,

the

director

of

revenue

(director)

14

has

authority

to

regulate

the

purchase

of

alcoholic

liquor

15

generally

and

to

determine

the

classes,

varieties,

and

brands

16

of

alcoholic

liquors

to

be

kept

in

state

warehouses.

The

17

department

of

revenue

(department)

is

the

sole

wholesaler

of

18

all

brands

and

types

of

alcoholic

liquor,

including

native

19

distilled

spirits,

sold

in

the

state.

Native

distilleries

are

20

businesses

with

operating

stills

located

in

the

state

that

21

produce

and

manufacture

native

distilled

spirits.

Native

22

distilled

spirits

may

be

purchased

through

a

bailment

system

23

by

the

department,

then

listed

and

sold

to

class

“E”

retail

24

alcohol

licensees.

Class

“E”

retail

alcohol

licensees

sell

25

alcoholic

beverages

for

off-premises

consumption

to

individuals

26

and

sell

at

wholesale

to

class

“C”

retail

alcohol

licensees

for

27

resale

to

individuals

for

on-premises

consumption.

28

This

bill

limits

the

director’s

authority

to

delist

a

native

29

distillery’s

native

distilled

spirits

based

solely

on

a

failure

30

to

meet

sales

guidelines

once

the

director

determines

to

list

31

and

sell

the

native

distillery’s

native

distilled

spirits

in

32

the

state

to

class

“E”

retail

alcohol

licensees.

33

-1-

LSB

2431YH

(2)

91

ll/ns

1/

1