Relating to the sale of wine, including private wine sales and wine auction permits, providing fees, and making penalties applicable

The bill authorizes a class “A” wine permit holder to sell brands of wine which are not manufactured, bottled, fermented, shipped, or imported by a person holding a current vintner’s certificate if the brands of wine were purchased from a private sale and meet the labeling requirements under the bill. The bill authorizes a person, upon application to the department of revenue and receipt of a wine auction permit, to conduct a wine auction. A wine auction permit is valid for a period of one year and allows the permittee to conduct no more than wine auctions during the one-year period. The fee for a wine auction permit is $100. A wine auction permit may only be issued to an applicant who is of good moral character; is a citizen of the state of Iowa or authorized to do business in the state; does not hold a retail alcohol license; and gives consent 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 Code chapter 123 or ordinances and regulations that local authorities may adopt. The premises that the applicant intends to use for wine auctions must constitute a safe and proper place or building and conform to all applicable laws, ordinances, resolutions, and health and fire regulations. The bill prohibits an applicant from having or maintaining any interior access to residential or sleeping quarters unless the director of revenue grants permission in the form of a living quarters permit. The bill sets forth the information required to be included for a wine auction permit application. The bill requires a wine auction conducted by a wine auction permittee to comply with the following requirements: (1) a permittee shall not offer wines owned by the permittee at auction, (2) wine from a private collection is permanently affixed with a label stating that fact, (3) a permittee shall ensure that each container of wine to be sold is in the original, unopened container, (4) a permittee is responsible for the storage of all wines that are to be offered at auction and for their subsequent shipment by a holder of a wine carrier permit and delivery, and (5) a permittee is responsible for the payment of all applicable taxes for wines sold at auction. The bill authorizes a class “A” wine permittee or a retail alcohol licensee, not including a native wine manufacturer, to purchase wine offered at an auction and resell wine purchased at auction in accordance with the requirements of the licensee’s or permittee’s license or permit, subject to applicable label requirements. A violation of the requirements of the bill subjects the wine auction permit holder to the general penalties provided in Code chapter 123 and constitutes grounds for imposition of a civil penalty, suspension of the permit, or revocation of the permit after notice and opportunity for a hearing. A person who violates any of the provisions of the bill, or who makes a false statement concerning any material fact in submitting an application for a permit, is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. The bill levies a wine gallonage tax on the sale of wine at auction to a retail alcohol license holder.75 per gallon. Revenue collected is deposited in the wine gallonage tax fund. The bill requires each wine auction permit holder to make a biannual report under oath to the department of revenue showing the exact number of gallons of wine and fractional parts of gallons sold and shipped during the preceding six-month period, and whatever reasonable additional information the director requires. The permittee at the time of filing the report must pay to the department of revenue the amount of tax due. A penalty of percent is assessed and collected if the report is not filed and the tax paid within the time required. Under the bill, a person desiring to deliver wine shipped to or by a wine auction permittee shall submit an application for a wine carrier permit accompanied by a fee of $100. A wine auction permittee shall maintain records of wine shipped as prescribed by the bill.