Bill

Bill > SF245


IA SF245

A bill for an act providing for the direct shipment of alcoholic liquor, providing fees, and including effective date provisions.


summary

Introduced
02/10/2025
In Committee
03/10/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill allows for the direct shipment of alcoholic liquor within the state. New Code section 123.42A provides for the direct shipment of alcoholic liquor and provides for an alcoholic liquor direct shipper license. An alcoholic liquor direct shipper licensee (licensee) may sell and ship any amount of alcoholic liquor to any person who is at least 21 years of age for personal use and not for resale if the licensee produces in, or imports into, the United States 150,000 proof gallons or fewer of distilled spirits per calendar year. If the licensee produces or imports more than 150,000 proof gallons of distilled spirits, a licensee may sell and ship up to nine liters of alcoholic liquor per calendar year to a person 21 years of age or older. The annual fee for the license is $25. Provisions governing the direct shipment of wine and the wine direct shipper permit are generally made applicable to the direct shipment of alcoholic liquor. The bill requires all alcoholic liquor subject to direct shipping to be properly registered with the department of revenue (department) and that products which are not listed for sale by the department must be registered to include information on the name of the manufacturer, the name of the brand, the standard of fill, the wholesale price, and other information as requested by the department. The bill also requires each licensee to make a monthly report to the department that lists the products and quantities shipped directly to residents of this state in the preceding month, the name and address of the individuals to whom the alcoholic liquor was sold in each sale, the wholesale price of the alcoholic liquor sold, the purchase price and taxes charged of the alcoholic liquor sold, the alcoholic beverage carrier permittee who delivered each shipment, and documents filed by the licensee with the alcohol and tobacco tax and trade bureau of the United States department of treasury for the preceding month, including all production, storage, and processing reports. Finally, the bill requires a licensee to remit an amount to the department depending on whether the alcoholic liquor shipped is listed for sale by the department. If the alcoholic liquor is listed for sale by the department, the permittee shall remit to the department an amount equivalent to 50 percent of the wholesale price paid by the department for the alcoholic liquor. If the alcoholic liquor is not listed for sale by the department, the permittee shall remit to the department an amount equivalent to 50 percent of the wholesale price of the alcoholic liquor as registered with the department. The bill provides that a civil penalty of 10 percent of the amount due shall be assessed and collected if the amount required to be paid to the department as provided by the bill is not paid within the time required. Generally, moneys collected by the department under Code chapter 123 for the issuance of permits and licenses, and other moneys and receipts received by the department from any other source under the Code chapter, are deposited in the beer and liquor control fund (Code section 123.17). Civil penalties imposed and collected by the department under the Code chapter are credited to the general fund of the state. The bill allows a manufacturer of alcoholic liquor and a native distillery to ship alcoholic liquor or native distilled spirits, as applicable, to individual purchasers inside this state by obtaining an alcoholic liquor direct shipper license as established in the bill. The bill replaces the wine carrier permit under current law with an alcoholic beverage carrier permit to provide for the direct shipment of alcoholic liquor as provided by the bill. The bill takes effect January 1, 2026.

AI Summary

This bill establishes a comprehensive framework for the direct shipment of alcoholic liquor within the state of Iowa, creating an alcoholic liquor direct shipper license that allows certain manufacturers to sell and ship their products directly to consumers who are 21 years or older. Manufacturers can ship either unlimited quantities (if they produce less than 150,000 proof gallons of distilled spirits annually) or up to nine liters per year (if they produce more than 150,000 proof gallons). The license costs $25 annually and requires detailed monthly reporting to the state department, including information about shipments, sales, prices, and taxes. Shippers must use an alcoholic beverage carrier permit, ensure age verification, and label packages with clear alcohol warnings. The bill also requires shippers to remit 50 percent of the wholesale price to the state, either based on the department's listed price or the registered wholesale price. Native distilleries are now permitted to ship their own spirits under this new licensing system, and the bill replaces existing wine carrier permits with a broader alcoholic beverage carrier permit. All these provisions will take effect on January 1, 2026, potentially expanding access to craft and small-batch alcoholic liquors for Iowa residents while implementing strict regulatory and reporting requirements.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Subcommittee: Schultz, Bisignano, and Dawson. S.J. 491. (on 03/11/2025)

bill text


bill summary

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