Senate Study Bill 1147 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT) A BILL FOR An Act relating to the sale and distribution of beer, including 1 by providing for the direct shipment of beer, levying a 2 barrel tax, providing fees, making penalties applicable, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1103XC (2) 91 ll/ns
S.F. _____ Section 1. Section 123.32, subsection 1, paragraph b, Code 1 2025, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (07) A beer direct shipper permit as 3 provided in section 123.147. 4 Sec. 2. Section 123.32, subsection 1, paragraph b, 5 subparagraph (10), Code 2025, is amended to read as follows: 6 (10) A wine An alcoholic beverage carrier permit as provided 7 in section 123.188 . 8 Sec. 3. Section 123.35, subsection 4, unnumbered paragraph 9 1, Code 2025, is amended to read as follows: 10 Notwithstanding section sections 123.147 and 123.187 , and 11 any other provision of this chapter to the contrary, a beer or 12 wine direct shippers shipper permit shall automatically renew 13 without approval by the director upon collection of the annual 14 fee by the department, provided all of the following conditions 15 are met since the preceding permit was issued: 16 Sec. 4. Section 123.35, subsection 4, paragraph e, Code 17 2025, is amended to read as follows: 18 e. The permittee has filed all required reports and remitted 19 all beer barrel tax owed pursuant to section 123.136 or wine 20 gallonage tax owed pursuant to section 123.183 , as applicable . 21 Sec. 5. Section 123.39, subsection 1, paragraph a, 22 subparagraph (2), Code 2025, is amended to read as follows: 23 (2) The director may suspend a certificate of compliance, a 24 class D retail alcohol license, a manufacturers license, a 25 brokers permit, a class A native distilled spirits license, 26 a class A or special class A beer permit, a beer direct 27 shipper permit, a class A wine permit, a wine direct 28 shippers shipper permit, or a wine an alcoholic beverage 29 carrier permit for a period not to exceed one year, revoke the 30 license, permit, or certificate, or impose a civil penalty not 31 to exceed one thousand dollars per violation. 32 Sec. 6. Section 123.46A, subsection 5, Code 2025, is amended 33 to read as follows: 34 5. Nothing in this section shall impact the direct shipment 35 -1- LSB 1103XC (2) 91 ll/ns 1/ 8
S.F. _____ of beer as regulated by section 123.147 or the direct shipment 1 of wine as regulated by section 123.187 . 2 Sec. 7. Section 123.130, subsection 1, paragraph a, Code 3 2025, is amended to read as follows: 4 a. Any person holding a class A beer permit issued by 5 the department shall be authorized to manufacture and sell, or 6 sell at wholesale, beer for consumption off the premises, such 7 sales within the state to be made only to persons holding a 8 subsisting class A beer permit, or retail alcohol licenses, 9 excluding a special class B retail native wine license, 10 issued in accordance with the provisions of this chapter . 11 However, a person holding a class A beer permit issued by 12 the department who also holds a brewers notice issued by 13 the alcohol and tobacco tax and trade bureau of the United 14 States department of the treasury shall be authorized to 15 sell , at wholesale , no more than thirty thousand barrels of 16 beer on an annual basis for consumption off the premises to 17 a licensee licensees authorized under this chapter to sell 18 beer at retail for consumption off the premises or to sell at 19 retail to individuals in accordance with a beer direct shipper 20 permit issued pursuant to section 123.147, no more than thirty 21 thousand barrels of beer on an annual basis . 22 Sec. 8. Section 123.130, subsection 4, paragraph b, Code 23 2025, is amended to read as follows: 24 b. Except as provided in paragraph c , a person who 25 holds a special class A beer permit for the same location 26 at which the person holds a class C or special class C 27 retail alcohol license for the purpose of operating as a 28 brewpub may manufacture and sell beer to be consumed on 29 the premises, may sell beer at retail at the manufacturing 30 premises for consumption off the premises and to individuals in 31 accordance with a beer direct shipper permit issued pursuant 32 to section 123.147 in an amount not to exceed thirty thousand 33 barrels of beer on an annual basis , may sell beer to a class 34 A beer permittee for resale purposes, and may sell beer to 35 -2- LSB 1103XC (2) 91 ll/ns 2/ 8
S.F. _____ distributors outside of the state that are authorized by the 1 laws of that jurisdiction to sell beer at wholesale. 2 Sec. 9. Section 123.136, subsection 1, Code 2025, is amended 3 to read as follows: 4 1. In addition to the annual permit fee to be paid by 5 all class A beer permittees under this chapter there shall 6 be levied and collected from the permittees on all beer 7 manufactured for sale or sold in this state at wholesale and 8 on all beer imported into this state for sale at wholesale and 9 sold in this state at wholesale, and from special class A 10 beer permittees on all beer manufactured for consumption on the 11 premises and on all beer sold at retail at the manufacturing 12 premises for consumption off the premises pursuant to section 13 123.130, subsection 4 , a tax of five and eighty-nine hundredths 14 dollars for every barrel containing thirty-one gallons, and at 15 a like rate for any other quantity or for the fractional part 16 of a barrel. A barrel tax shall also be levied and collected 17 on the direct shipment of beer pursuant to section 123.147. 18 However, no tax shall be levied or collected on beer shipped 19 outside this state by a class A beer permittee or special 20 class A beer permittee to an out-of-state wholesaler of beer 21 or on beer sold to a class A beer permittee by a special class 22 A beer permittee or another class A beer permittee. 23 Sec. 10. Section 123.137, Code 2025, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 1A. Each beer direct shipper permit 26 holder shall make a report under oath to the department 27 electronically, or in a manner prescribed by the director, 28 on or before the tenth day of the calendar months of June 29 and December, showing the exact number of barrels of beer 30 and fractional parts of barrels sold and shipped pursuant to 31 section 123.147 during the preceding six-month calendar period. 32 The report must also state whatever reasonable additional 33 information the director requires. The permit holder at the 34 time of filing this report shall pay to the department the 35 -3- LSB 1103XC (2) 91 ll/ns 3/ 8
S.F. _____ amount of tax due at the rate fixed in section 123.136. 1 Sec. 11. NEW SECTION . 123.147 Direct shipment of beer 2 permit and requirements. 3 1. A beer manufacturer licensed or permitted pursuant to 4 laws regulating alcoholic beverages in this state or another 5 state may apply for a beer direct shipper permit, as provided 6 in this section. 7 2. a. Only a beer manufacturer that holds a beer direct 8 shipper permit issued pursuant to this section may sell beer 9 at retail for direct shipment to any person within this state, 10 or from this state to any person outside the state if also 11 authorized pursuant to the laws of that jurisdiction. This 12 section does not prohibit an authorized retail licensee from 13 delivering beer pursuant to section 123.46A. 14 b. A beer manufacturer applying for a beer direct 15 shipper permit shall submit an application for the permit 16 electronically, or in a manner prescribed by the director, 17 accompanied by a true copy of the manufacturers current 18 alcoholic beverage license or permit issued by the state 19 where the manufacturer is primarily located and a copy of 20 the manufacturers brewers notice issued by the alcohol and 21 tobacco tax and trade bureau of the United States department of 22 the treasury. 23 c. An application submitted pursuant to paragraph b shall 24 be accompanied by a permit fee in the amount of twenty-five 25 dollars. 26 d. A permit issued pursuant to this section may be renewed 27 annually by submitting a renewal application with the director 28 in a manner prescribed by the director, accompanied by the 29 twenty-five dollar permit fee. 30 3. The direct shipment of beer pursuant to this section is 31 subject to the following requirements and restrictions: 32 a. Beer shall only be shipped to a resident of this state, 33 or from this state to a person outside the state if also 34 authorized pursuant to the laws of that jurisdiction, who is at 35 -4- LSB 1103XC (2) 91 ll/ns 4/ 8
S.F. _____ least twenty-one years of age, for the persons personal use 1 and consumption and not for resale. 2 b. Beer subject to direct shipping shall be properly 3 registered with the federal alcohol and tobacco tax and trade 4 bureau, and manufactured on the licensed premises of the beer 5 direct shipper permittee. 6 c. All containers of beer shipped under this section shall 7 be conspicuously labeled with the words CONTAINS ALCOHOL: 8 SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY 9 or shall be conspicuously labeled with alternative wording 10 preapproved by the director. 11 d. All containers of beer shipped under this section shall 12 be shipped by a holder of an alcoholic beverage carrier permit 13 as provided in section 123.188. 14 e. Shipment of beer pursuant to this subsection does not 15 require a refund value for beverage container control purposes 16 under chapter 455C. 17 4. A beer direct shipper permittee shall remit to the 18 department an amount equivalent to the barrel tax on beer 19 subject to direct shipment, whether shipped within the state 20 or out of state, at the rate specified in section 123.136 21 for deposit as provided in section 123.136, subsection 2. 22 The amount shall be remitted at the time and in the manner 23 provided in section 123.137, subsection 1A, and the ten percent 24 penalty specified in section 123.137, subsection 2, shall be 25 applicable. 26 5. A beer direct shipper permittee shall be deemed to 27 have consented to the jurisdiction of the department or any 28 other agency or court in this state concerning enforcement of 29 this section and any related laws, rules, or regulations. A 30 permit holder shall allow the department to perform an audit of 31 shipping records upon request. 32 6. A violation of this section shall subject the permittee 33 to the general penalties provided in this chapter and shall 34 constitute grounds for imposition of a civil penalty or 35 -5- LSB 1103XC (2) 91 ll/ns 5/ 8
S.F. _____ suspension or revocation of the permit pursuant to section 1 123.39. 2 Sec. 12. Section 123.173C, subsection 4, paragraphs b and d, 3 Code 2025, are amended to read as follows: 4 b. A person, within or outside of the state, who desires to 5 ship wine from a private collection to a wine auction permittee 6 to be sold at auction shall do so through a holder of 7 a wine an alcoholic beverage carrier permit. The wine auction 8 permittee shall ensure that each bottle of wine so acquired 9 is permanently affixed with a label stating that the wine was 10 acquired from a private collection. 11 d. A permittee is responsible for the storage of all wines 12 that are to be offered at auction at the licensed premises, 13 and for the subsequent shipment and delivery of all wines sold 14 at auction to the purchasers of the wines. Shipment of wine 15 pursuant to this paragraph shall only be done by a holder of a 16 wine an alcoholic beverage carrier permit. 17 Sec. 13. Section 123.187, subsection 3, paragraph d, Code 18 2025, is amended to read as follows: 19 d. All containers of wine shipped directly to a resident of 20 this state shall be shipped by a holder of a wine an alcoholic 21 beverage carrier permit as provided in section 123.188 . 22 Sec. 14. Section 123.188, subsections 1, 2, and 4, Code 23 2025, are amended to read as follows: 24 1. A person desiring to deliver beer subject to direct 25 shipment pursuant to section 123.147, to deliver wine subject 26 to direct shipment within this state pursuant to section 27 123.187 , or to deliver wine shipped to or by a wine auction 28 permittee pursuant to section 123.173C , shall submit an 29 application for a wine an alcoholic beverage carrier permit 30 electronically, or in a manner prescribed by the director, 31 which shall be accompanied by a fee in the amount of one 32 hundred dollars. 33 2. The director may in accordance with this chapter issue a 34 wine an alcoholic beverage carrier permit which shall be valid 35 -6- LSB 1103XC (2) 91 ll/ns 6/ 8
S.F. _____ for one year from the date of issuance unless it is sooner 1 suspended or revoked for a violation of this chapter . 2 4. The delivery of beer or wine pursuant to this 3 section shall be subject to the following requirements and 4 restrictions: 5 a. A wine An alcoholic beverage carrier permittee shall 6 not deliver beer or wine to any person under twenty-one years 7 of age, or to any person who either is or appears to be in an 8 intoxicated state or condition. 9 b. A wine An alcoholic beverage carrier permittee shall 10 obtain valid proof of identity and age prior to delivery, 11 and shall obtain the signature of an adult as a condition of 12 delivery. 13 c. A wine An alcoholic beverage carrier permittee shall 14 maintain records of beer or wine shipped which include the 15 permit number and name of the beer or wine manufacturer or 16 wine auction permittee, quantity of beer or wine shipped, 17 recipients name and address, and an electronic or paper form 18 of signature from the recipient of the beer or wine. Records 19 shall be submitted to the department on a monthly basis in a 20 form and manner to be determined by the department. 21 Sec. 15. EFFECTIVE DATE. This Act takes effect January 1, 22 2026. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanations substance by the members of the general assembly. 26 This bill allows for the direct shipment of beer. 27 New Code section 123.147 provides for the direct shipment 28 of beer to any person within this state, or from this state to 29 any person outside the state if also authorized pursuant to 30 the laws of that jurisdiction, and provides for a beer direct 31 shipper permit. Provisions governing the direct shipment of 32 wine and the wine direct shipper permit are generally made 33 applicable to the direct shipment of beer. Under current law, 34 the wine direct shipper permit under Code section 123.187 does 35 -7- LSB 1103XC (2) 91 ll/ns 7/ 8
S.F. _____ not authorize the permittee to ship wine to persons out of 1 state. 2 The bill provides for application requirements and 3 establishes a $25 annual fee for the permit. The bill also 4 provides that a permittee under the bill shall pay the barrel 5 tax on beer subject to direct shipment at the rate specified 6 for beer sold in the state. Code section 123.135, concerning 7 the barrel tax, and Code section 123.136, concerning report of 8 barrel sales, are made applicable to beer subject to direct 9 shipment. 10 The bill includes beer sold pursuant to a beer direct shipper 11 permit by a native brewery in the limit under current law 12 placed on wholesale sales of beer to licensees authorized to 13 sell beer at retail for off-premises consumption to no more 14 than 30,000 barrels on an annual basis. The bill adds a 15 similar limit for a brewpub by limiting the beer the brewpub 16 sells at retail to individuals at the manufacturing premises 17 for consumption off the premises and to individuals in 18 accordance with a beer direct shipper permit to no more than 19 30,000 barrels on an annual basis. 20 Code section 123.188, providing for a wine carrier permit, 21 is amended to provide for the direct shipment of beer as 22 provided by the bill. 23 The bill takes effect January 1, 2026. 24 -8- LSB 1103XC (2) 91 ll/ns 8/ 8