Bills › 89th General Assembly
Relating to alcoholic beverage control concerning the sale of beer and liquor for resale
Sponsored by the House Commerce Committee
Where it is now
- Done: IntroducedFebruary 1, 2022
- Done: SubcommitteeFebruary 1, 2022
- Done: House committeeFebruary 10, 2022
- Done: Passes the HouseMarch 14, 202288–5
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary The state's alcoholic beverages division would become the only wholesaler allowed to sell liquor to all liquor license holders. Additionally, certain businesses that sell both beer and liquor could sell beer to other retailers for them to serve on their own premises. These changes affect how different types of alcohol businesses buy and sell products to one another.1
Read the official explanation
This bill concerns alcoholic beverage control relating to the sale of alcoholic liquor by the alcoholic beverages division of the department of commerce and the sale of beer for resale by a class “C” beer permittee who also holds a class “E” liquor control license.22, concerning the state monopoly regarding alcoholic liquor, is amended to allow the alcoholic beverages division to be the sole wholesaler of alcoholic liquor to all liquor control licensees, not just class “E” liquor control licensees. 30, concerning liquor control licenses, is amended to allow this purchase of alcoholic liquor from the alcoholic beverages division.132, concerning the authority of a class “C” beer permit, is amended to allow a holder of a class “C” beer permit who also holds a class “E” liquor control license to sell beer to class “B” permittees, and class “C” and special class “C” liquor control licensees, for resale for consumption on the premises in such quantities in a 24-hour period as the alcoholic beverages division determines.131, concerning class “B” beer permittees, are amended to allow for the purchase of beer from a holder of a class “C” beer permit who also holds a class “E” liquor control license.
Changed since by amendment H-8100; see Amendments.
Senate subcommittee
Named March 22, 2022. It hasn’t reported yet.
- Sen. Chris Cournoyer R
- Sen. Tony Bisignano DEmail
- Sen. R. Smith
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 allows the Alcoholic Beverages Division to be the sole wholesaler of alcoholic liquor to all liquor control licensees and permits certain beer permit holders to purchase specific quantities of beer from other permit holders. The bill is anticipated to result in a significant increase in expenses for the Liquor Control Trust Fund due to the need for more warehouse personnel. The total fiscal impact cannot be determined because the costs for potential warehouse infrastructure changes and the exact shift in demand are unknown.3
Read the fiscal note
Description
House File 2379 does the following:
- Allows the Alcoholic Beverages Division (ABD) of the Department of Commerce to be the sole wholesaler of alcoholic liquor to all liquor control licensees, not just class “E” licensees.
- Allows class “A,” “B,” and “C” liquor control license holders to purchase alcoholic liquor from the ABD.
- Allows class “B,” “C,” and special class “C” liquor control license holders to purchase beer from class “A” beer permittees and class “C” beer permittees who also hold a class “E” liquor control license. The quantity is limited to not more than five cases of beer, high alcoholic content beer, and canned cocktails, but not more than one of such sale to the same licensee within a 24-hour period.
Background
Currently, the ABD is the sole wholesaler of alcoholic liquor to class “E” liquor control licensees. Class “A,” “B,” and “C” liquor control license holders must purchase alcoholic liquor from class “E” liquor control licensees. Class “B,” “C,” and special class “C” beer permit holders purchase beer from class “A” beer permit holders.
Currently, the ABD processes an average of 5,114 will-call orders for class “E” liquor control licensees each fiscal year. There are 1,886 class “E” liquor control license holders. The ABD is open five days a week and averages approximately 20 will-call orders each day. Currently, all of the ABD’s will-call orders are filled through a single door of the warehouse. The ABD has one warehouse staff member to pick, stage, and verify daily will-call orders. Ruan is contracted to run the ABD’s warehouse. The contract includes personnel, distribution, and warehouse equipment costs.
According to the ABD, the ABD’s warehouse, located in Ankeny, occasionally becomes backed up onto the public street with traffic for deliveries and will-call orders with the ABD’s current traffic. In FY 2021, the number of class “A,” “B,” and “C” liquor control licenses totaled 4,289. The table below breaks down the licenses by classification and business type. Source: Alcoholic Beverages Division, Department of Commerce
Assumptions
Demand will shift from class “E” liquor control license holders to the ABD. Class “E” liquor control license holders increase the pricing of products they purchase from the ABD between 3.0% and 5.0% before selling them to class “A,” “B,” and “C” liquor control license holders. Class “A,” “B,” and “C” liquor control license holders who are able to make a trip to the ABD that is less costly than ordering through class “E” liquor control license holders are anticipated to shift their demand to purchasing directly from the ABD. This shift cannot be estimated. Allowing the 4,289 class “A,” “B,” and “C” licensees to purchase liquor at the Ankeny warehouse will increase daily will-call orders significantly, but the number cannot be estimated. House File 2379 does not address the required size of liquor orders; therefore, retailers may purchase as few as one bottle, or as many as a truckload. The ABD will likely need to increase its contract amount with Ruan to meet the increased demand of will-call orders. The ABD may also need to make infrastructure changes to its warehouse to accommodate the increase in traffic by increasing the number of will-call doors.
Fiscal Impact
This Bill is anticipated to result in a significant increase in expenses from the Liquor Control Trust Fund for increased personnel at the ABD warehouse. This does not include any modifications that the warehouse may need to allow for the increased demand. It is expected that the ABD will not be able to fill all of its will-call orders through the door the ABD currently has, and that it will need to add additional door(s) to handle the increased demand. The fiscal impact of these modifications is unknown.
The cost to implement infrastructure changes to the ABD’s warehouse, such as increasing the number of will-call doors, increasing the size of the warehouse, or increasing the number of warehouses in the State, is unknown. The total fiscal impact cannot be determined.
Source
- Alcoholic Beverages Division, Department of Commerce
- Alcohol Distribution Parity · March 1, 2022
Iowa Code it changes
Lobbying
5 for · 5 against · 13 undecided · Who →
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89th General Assembly