Bills › 88th General Assembly
Where it is now
- Done: IntroducedFebruary 7, 2019
- Done: SubcommitteeJanuary 24, 2019
- Done: House committeeFebruary 6, 2019
- Done: Passes the HouseApril 18, 2019
- Skipped: Senate committeeSkipped
- Done: Passes the SenateMarch 12, 201945–4
- Done: To the GovernorMay 3, 2019
- Done: Signed into lawMay 10, 2019
SF 323 became law → The same legislation passed as SF 323, so this version was set aside. Go to SF 323 What’s a funnel?
What’s in it
This bill concerns low-proof spirit beverages.3 is amended by adding definitions for “low-proof spirit beverage” and “mixed drink or cocktail”.5 percent, of alcohol by volume. “Mixed drink or cocktail” is defined as an alcoholic beverage, consisting in whole or in part of alcoholic liquors, that is combined with other alcoholic or nonalcoholic beverages. The bill authorizes a class “A” beer permittee to manufacture and sell, or sell at wholesale, low-proof spirit beverages to persons holding class “A”, “B”, or “C” beer permits, both a class “C” native wine permit and a class “A” wine permit, or liquor control licenses.
Read the full explanation
In addition, the bill provides that a holder of a class “B” beer permit may sell a low-proof spirit beverage for consumption on or off the premises and allows a holder of a class “C” beer permit to sell a low-proof spirit beverage for consumption off the premises. The bill also allows a holder of a class “C” native wine permit and a class “A” wine permit to purchase and sell a low-proof spirit beverage for consumption on or off the premises covered by the class “C” native wine permit.136 is amended to provide that the barrel tax on beer also applies to low-proof spirit beverages.13 provides that the provisions of Code chapter 123A that apply to brewers and wholesalers of beer also apply to manufacturers and wholesalers of low-proof spirit beverages.
House subcommittee
Named January 24, 2019. On January 31, 2019 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill creates a new definition for canned cocktails and subjects their manufacturing and wholesale to the same rules as beer. The potential decrease in revenue to the Beer and Liquor Control Fund is expected to be minimal. The potential increase in revenue to the General Fund cannot be determined at this time.2
Read the fiscal note
Requested by Representative Shannon Lundgren
Description
House File 309 creates a definition for “canned cocktails” to refer to premixed and prepackaged mixed drinks with an alcohol by volume (ABV) range of 6.25% to 15.0% and excludes canned cocktails from the definition of “alcoholic liquor.” The Bill also provides that the manufacturing and wholesale of canned cocktails will be subject to the provisions that apply to the brewing and wholesale of beer.
Background
Current law has established tax rates for beer. Iowa Code section 123.136 sets a tax rate of $5.59 for every 31-gallon barrel of beer sold, or $0.19 per gallon, and requires all revenue derived from the tax to be deposited in the General Fund. In FY 2018, approximately 72.2 million gallons of beer were sold in the State of Iowa, generating approximately $13.6 million in revenue.
The products defined in HF 309 as canned cocktails are currently sold through the State wholesale distribution system as alcoholic liquors, and are therefore subject to a wholesale markup of up to 50.0%. It is estimated that the revenue deposited into the Beer and Liquor Control Fund from liquor sales in FY 2019 will be $315.0 million. In FY 2018, the total amount of revenue collected from the sale of the products defined in HF 309 equated to less than 0.01% of the total revenue collected from liquor sales.
Assumptions
- The Alcoholic Beverages Division has identified three inventory items that would fall into the new product category. Distribution for these items would shift from the State wholesale system to beer wholesalers.
- Comprehensive information on the number of products that fall under this new category is unavailable at this time.
Fiscal Impact
The potential decrease in revenue to the Beer and Liquor Control Fund from moving existing products from the alcoholic liquor classification to the canned cocktail classification is expected to be minimal. The potential increase in revenue to the General Fund cannot be determined at this time due to limited information on the total number of items in the new product category.
Sources
- Alcoholic Beverages Division
- Low Proof Alcohol · April 17, 2019
Iowa Code it changes
Creates§123A.13
Amends§123.130§123.131§123.132§123.136§123.178B§123.3§123A.2
Lobbying
5 for · 0 against · 18 undecided · Who →
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88th General Assembly