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Bill > HF459


IA HF459

IA HF459
A bill for an act concerning native distilled spirits listed and sold by the department of revenue.


summary

Introduced
02/18/2025
In Committee
02/18/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

Under current law, the director of revenue (director) has authority to regulate the purchase of alcoholic liquor generally and to determine the classes, varieties, and brands of alcoholic liquors to be kept in state warehouses. The department of revenue (department) is the sole wholesaler of all brands and types of alcoholic liquor, including native distilled spirits, sold in the state. Native distilleries are businesses with operating stills located in the state that produce and manufacture native distilled spirits. Native distilled spirits may be purchased through a bailment system by the department, then listed and sold to class “E” retail alcohol licensees. Class “E” retail alcohol licensees sell alcoholic beverages for off-premises consumption to individuals and sell at wholesale to class “C” retail alcohol licensees for resale to individuals for on-premises consumption. This bill limits the director’s authority to delist a native distillery’s native distilled spirits based solely on a failure to meet sales guidelines once the director determines to list and sell the native distillery’s native distilled spirits in the state to class “E” retail alcohol licensees.

AI Summary

This bill modifies existing law regarding the regulation of native distilled spirits by the director of revenue in Iowa. Currently, the director has broad authority to regulate alcohol purchases and determine which alcoholic liquors are stocked in state warehouses. The bill specifically limits the director's ability to remove (delist) a native distillery's spirits from state warehouses solely because the spirits do not meet predetermined sales guidelines after the director has already decided to list and sell the spirits to class "E" retail alcohol licensees. A class "E" retail alcohol licensee is a type of retailer that sells alcoholic beverages for off-premises consumption and can also wholesale to class "C" licensees for on-premises sales. By adding this provision, the bill provides additional protection for native distilleries, ensuring they are not automatically delisted from state warehouses if their initial sales do not meet expectations, thereby potentially giving these local businesses more stability and opportunity to establish themselves in the market.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Tabled until future meeting. (on 03/05/2025)

bill text


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