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 distillerys native distilled spirits based solely on a failure 8 to meet sales guidelines once the director determines to list 9 the native distillerys native distilled spirits. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanations 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 directors authority to delist a native 29 distillerys native distilled spirits based solely on a failure 30 to meet sales guidelines once the director determines to list 31 and sell the native distillerys native distilled spirits in 32 the state to class E retail alcohol licensees. 33 -1- LSB 2431YH (2) 91 ll/ns 1/ 1