House File 830 - Introduced HOUSE FILE 830 BY BAETH and WILZ A BILL FOR An Act concerning the wholesale price of alcoholic liquor 1 offered for sale by the department of revenue. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1452YH (3) 91 ll/ns
H.F. 830 Section 1. Section 123.24, subsection 2, paragraphs a and b, 1 Code 2025, are amended to read as follows: 2 a. The manufacturers price or the minimum unit price, 3 whichever is greater . 4 b. A markup of up to fifty percent of the wholesale price 5 paid by the department for the alcoholic liquor or the minimum 6 unit price, whichever is greater . The department may increase 7 the markup on selected kinds of alcoholic liquor sold by the 8 department if the average return to the department on all sales 9 of alcoholic liquor does not exceed the wholesale price paid by 10 the department or the minimum unit price, whichever is greater, 11 and the fifty percent markup. 12 Sec. 2. Section 123.24, Code 2025, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 5. For purposes of this section, minimum 15 unit price means an amount equal to fifty cents per eighteen 16 milliliters of alcohol in the package of alcoholic liquor, as 17 determined by the department. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanations substance by the members of the general assembly. 21 Under current law, the price of alcoholic liquor sold by 22 the department of revenue (department) to class E retail 23 alcohol licensees (licensees) consists of, among other things, 24 the manufacturers price and a markup of up to 50 percent of 25 the wholesale price paid by the department for the alcoholic 26 liquor. The department is the sole wholesaler of alcoholic 27 liquor sold to licensees located in this state. Licensees are 28 authorized to sell liquor, wine, and beer in original unopened 29 containers at retail to patrons for consumption off the 30 licensed premises. Licensees may also sell alcoholic liquor, 31 high alcoholic content beer, and limited quantities of beer and 32 wine at wholesale to other retail alcohol licensees. 33 This bill provides that if the minimum unit price of the 34 alcoholic liquor is higher than the manufacturers price 35 -1- LSB 1452YH (3) 91 ll/ns 1/ 2
H.F. 830 or, for purposes of the 50 percent markup, higher than the 1 wholesale price paid by the department, the minimum unit price 2 is used to calculate the price of the alcoholic liquor sold 3 by the department. The minimum unit price is an amount equal 4 to 50 cents per 18 milliliters of alcohol in the package of 5 alcoholic liquor, as determined by the department. 6 -2- LSB 1452YH (3) 91 ll/ns 2/ 2