Bill Summary – FastDemocracy

House File 2669 - Enrolled
                                                      House File 2669
                                  AN ACT
     RELATING TO THE SALE OF WINE, INCLUDING PRIVATE WINE SALES AND
        WINE AUCTION PERMITS, PROVIDING FEES, AND MAKING PENALTIES
        APPLICABLE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1. Section 123.32, subsection 1, paragraph b, Code
 2024, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (11) A wine auction permit as provided in
 section 123.173C.
    Sec. 2. Section 123.171, subsection 3, Code 2024, is amended
 to read as follows:
    3. Notwithstanding subsection 1, an individual of legal
 age may import into the state without a certificate, permit,
 or license an amount of wine not to exceed nine liters per
 calendar month that the individual personally obtained outside
 the state or, in the case of wine personally obtained outside
 the United States, a quantity which does not exceed the amount
 allowed by federal law governing the importation of alcoholic
 beverages into the United States for personal consumption.
 Wine imported pursuant to this subsection shall be for personal
 consumption in a private home or other private accommodation
 and only if the wine is not sold other than as provided in
 subsection 4, exchanged, bartered, dispensed, or given in
 consideration of purchase for any property or services or in
 evasion of the requirements of this chapter.
                                               House File 2669, p. 2
    Sec. 3. Section 123.171, Code 2024, is amended by adding the
 following new subsection:
    NEW SUBSECTION. 4. Notwithstanding subsection 1, a
 person of legal age may conduct private wine sales without a
 certificate, permit, or license, subject to the requirements
 of this subsection. Except for wine manufactured pursuant
 to subsection 2, a person may sell wine from the person’s
 private collection in an original, unopened container to either
 a class “A” wine permittee for purposes of resale or a wine
 auction permittee under section 123.173C for resale by means
 of an auction. A class “A” wine permittee or wine auction
 permittee involved in the sale of wine by a person under this
 subsection shall ensure that each bottle of wine purchased has
 a permanently affixed label stating that the wine was acquired
 from a private collection.
    Sec. 4. NEW SECTION. 123.173C Wine auction permit.
    1. Upon application to the department and receipt of a wine
 auction permit, an authorized person may conduct a wine auction
 subject to the requirements of this section.
    2. The department shall not issue a wine auction permit to
 an applicant unless the applicant complies with the application
 requirements of subsection 3, and unless all of the following
 requirements are met:
    a. The applicant is a person of good moral character.
    b. The applicant is a citizen of the state of Iowa or, if
 the applicant is a corporation, the applicant is authorized to
 do business in the state.
    c. The applicant does not hold a retail alcohol license.
    d. The premises where the applicant intends to use the
 permit constitutes a safe and proper place or building and
 conforms to all applicable laws, ordinances, resolutions,
 and health and fire regulations. A permittee shall not have
 or maintain any interior access to residential or sleeping
 quarters unless the director grants permission in the form of a
 living quarters permit.
    e. The applicant gives consent, as required by section
 123.30, subsection 1, for a person to enter upon the premises
 of the wine auction without a warrant during normal business
 hours to inspect for violations of the provisions of this
                                               House File 2669, p. 3
 chapter or ordinances and regulations that local authorities
 may adopt.
    3. An application for a wine auction permit must include
 all of the following information and shall be submitted
 electronically, or in a manner prescribed by the director:
    a. The name and address of the applicant or, if the
 applicant is a corporation, limited liability company, or
 other legal entity, the names and addresses of all officers,
 directors, and persons owning or controlling ten percent
 or more of the capital stock of the entity and who have a
 financial interest, by way of loan, ownership, or otherwise,
 in the entity.
    b. The location and name of the owner of the premises
 where the applicant intends to conduct wine auctions and, if
 the applicant is not the owner of the premises, whether the
 applicant is the lessee of the premises.
    c. As required by the director, and in such form and
 containing such information as the director may require, a
 description of the premises where the applicant intends to
 conduct wine auctions, including a depiction of the premises,
 and, if applicable, the number of square feet of interior floor
 space of the retail sales area of the premises.
    d. Whether any person specified in paragraph “a” has ever
 been convicted of any offense against the laws of the United
 States, or any state, territory, or political subdivision
 thereof.
    e. Any other information as required by the director.
    4. A wine auction conducted by a wine auction permittee must
 comply with the following requirements:
    a. A permittee shall not offer wines owned by the permittee
 at auction.
    b. A person, within or outside of the state, who desires to
 ship wine from a private collection to a wine auction permittee
 to be sold at auction shall do so through a holder of a wine
 carrier permit. The wine auction permittee shall ensure that
 each bottle of wine so acquired is permanently affixed with
 a label stating that the wine was acquired from a private
 collection.
    c. A permittee shall ensure that each container of wine
                                               House File 2669, p. 4
 to be sold at a wine auction is in the original, unopened
 container.
    d. A permittee is responsible for the storage of all wines
 that are to be offered at auction at the licensed premises,
 and for the subsequent shipment and delivery of all wines sold
 at auction to the purchasers of the wines. Shipment of wine
 pursuant to this paragraph shall only be done by a holder of a
 wine carrier permit.
    e. A permittee is responsible for the payment of all
 applicable taxes for wines sold at auction pursuant to section
 123.183.
    5. Notwithstanding any other provision of this chapter,
 a class “A” wine permittee or a retail alcohol licensee, not
 including a native wine manufacturer, may purchase wine offered
 at an auction pursuant to this section and may resell wine
 purchased at auction in accordance with the requirements of
 the licensee’s or permittee’s license or permit. The licensee
 or permittee shall ensure that each wine resold is in the
 original, unopened container, and, if applicable, permanently
 affixed with a label stating that the wine was acquired from a
 private collection.
    6. A wine auction permit is valid for a period of one year
 pursuant to section 123.35, subsection 1. A wine auction
 permit shall allow the permittee to conduct no more than
 twenty-four wine auctions during the one-year period of the
 wine auction permit.
    7. Any violation of the requirements of this chapter or
 rules adopted pursuant to this chapter shall subject the wine
 auction permit holder to the general penalties provided in this
 chapter and shall constitute grounds for imposition of a civil
 penalty, suspension of the permit, or revocation of the permit
 after notice and opportunity for a hearing pursuant to section
 123.39 and chapter 17A.
    Sec. 5. Section 123.179, Code 2024, is amended by adding the
 following new subsection:
    NEW SUBSECTION. 4. The fee for a wine auction permit is one
 hundred dollars.
    Sec. 6. Section 123.180, subsection 3, Code 2024, is amended
 to read as follows:
                                               House File 2669, p. 5
    3. a. All Except as provided in paragraph “b”, all class
 “A” wine permit holders shall sell only those brands of
 wine which are manufactured, bottled, fermented, shipped, or
 imported by a person holding a current vintner’s certificate of
 compliance. An employee or agent working for or representing
 the holder of a vintner’s certificate of compliance within
 this state shall register the employee’s or agent’s name and
 address with the department. These names and addresses shall
 be filed with the department’s copy of the certificate of
 compliance issued except that this provision does not require
 the listing of those persons who are employed on the premises
 of a bottling plant, or winery where wine is manufactured,
 fermented, or bottled in Iowa or the listing of those persons
 who are thereafter engaged in the transporting of the wine.
    b. A class “A” wine permit holder may sell brands of wine
 which are not manufactured, bottled, fermented, shipped, or
 imported by a person holding a current vintner’s certificate
 of compliance if the brands of wine were purchased from a
 private sale pursuant to section 123.171, subsection 4, or if
 authorized by the laws of another state.
    Sec. 7. Section 123.183, subsection 1, Code 2024, is amended
 to read as follows:
    1. a. In addition to the annual permit fee to be paid by
 each class “A” wine permittee, a wine gallonage tax shall be
 levied and collected from each class “A” wine permittee on all
 of the following:
    (1) All wine manufactured for sale and sold in this state
 at wholesale and on all.
    (2) All wine imported into this state for sale at wholesale
 and sold in this state at wholesale. A wine gallonage tax
 shall also be levied and collected on the
    (3) The direct shipment of wine pursuant to section 123.187.
    (4) The sale of wine at auction pursuant to section 123.173C
 to a retail alcohol license holder.
    b. The rate of the wine gallonage tax is one dollar and
 seventy-five cents for each wine gallon. The same rate shall
 apply for the fractional parts of a wine gallon. The wine
 gallonage tax shall not be levied or collected on wine sold
 by one class “A” wine permittee to another class “A” wine
                                               House File 2669, p. 6
 permittee or on wine that is sold by a class “A” wine permittee
 to a distributor outside of the state.
    Sec. 8. Section 123.183, subsection 2, paragraph a, Code
 2024, is amended to read as follows:
    a. Revenue collected from the wine gallonage tax on wine
 manufactured for sale and sold at wholesale in this state,
 and on wine subject to direct shipment as provided in section
 123.187 by a wine manufacturer licensed or permitted pursuant
 to laws regulating alcoholic beverages in this state, pursuant
 to subsection 1 shall be deposited in the wine gallonage tax
 fund as created in this section.
    Sec. 9. Section 123.184, Code 2024, is amended by adding the
 following new subsection:
    NEW SUBSECTION. 3. Each wine auction permit holder shall
 make a report under oath to the department electronically,
 or in a manner prescribed by the director, on or before the
 tenth day of the calendar months of June and December, showing
 the exact number of gallons of wine and fractional parts of
 gallons sold and shipped pursuant to section 123.173C during
 the preceding six-month calendar period. The report shall also
 state whatever reasonable additional information the director
 requires. The permit holder at the time of filing this report
 shall pay to the department the amount of tax due at the rate
 fixed in section 123.183. A penalty of ten percent of this
 amount shall be assessed and collected if the report required
 to be filed pursuant to this subsection is not filed and the
 tax paid within the time required by this subsection.
    Sec. 10. Section 123.188, subsection 1, Code 2024, is
 amended to read as follows:
    1. A person desiring to deliver wine subject to direct
 shipment within this state pursuant to section 123.187, or to
 deliver wine shipped to or by a wine auction permittee pursuant
 to section 123.173C, shall submit an application for a wine
 carrier permit electronically, or in a manner prescribed by the
 director, which shall be accompanied by a fee in the amount of
 one hundred dollars.
    Sec. 11. Section 123.188, subsection 4, paragraph c, Code
 2024, is amended to read as follows:
    c. A wine carrier permittee shall maintain records of
                                                House File 2669, p. 7
 wine shipped which include the permit number and name of the
 wine manufacturer or wine auction permittee, quantity of wine
 shipped, recipient’s name and address, and an electronic
 or paper form of signature from the recipient of the wine.
 Records shall be submitted to the department on a monthly basis
 in a form and manner to be determined by the department.
     ______________________________     ______________________________
     PAT GRASSLEY                       AMY SINCLAIR
     Speaker of the House               President of the Senate
        I hereby certify that this bill originated in the House and
     is known as House File 2669, Ninetieth General Assembly.
                                        ______________________________
                                        MEGHAN NELSON
                                        Chief Clerk of the House
     Approved _______________, 2024     ______________________________
                                        KIM REYNOLDS
                                        Governor
Statutes affected: 
Introduced: 123.32, 123.171, 123.173C, 123.180, 123.183, 123.184, 123.187
Enrolled: 123.32, 123.171, 123.173C, 123.180, 123.183, 123.184, 123.187