Bill Text: IA HF668 | 2019-2020 | 88th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act concerning alcoholic beverage control, relating to limitations on business interests of certain manufacturers, wholesalers, and retailers of alcoholic beverages. (Formerly HSB 210.) Effective 7-1-19.
Spectrum: Committee Bill
Status: (Passed) 2019-03-21 - Signed by Governor. H.J. 618. [HF668 Detail]
Download: Iowa-2019-HF668-Introduced.html
Bill Title: A bill for an act concerning alcoholic beverage control, relating to limitations on business interests of certain manufacturers, wholesalers, and retailers of alcoholic beverages. (Formerly HSB 210.) Effective 7-1-19.
Spectrum: Committee Bill
Status: (Passed) 2019-03-21 - Signed by Governor. H.J. 618. [HF668 Detail]
Download: Iowa-2019-HF668-Introduced.html
House
File
668
-
Introduced
HOUSE
FILE
668
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
210)
(COMPANION
TO
LSB
2490SV
BY
COMMITTEE
ON
COMMERCE)
A
BILL
FOR
An
Act
concerning
alcoholic
beverage
control,
relating
to
1
limitations
on
business
interests
of
certain
manufacturers,
2
wholesalers,
and
retailers
of
alcoholic
beverages.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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668
Section
1.
Section
123.45,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
3
“institutional
investor”
means
a
person
who
maintains
a
4
diversified
portfolio
of
investments
through
a
state
or
5
federally
chartered
bank,
a
mutual
fund,
a
retirement
plan
6
or
account
created
by
an
employer,
the
person,
or
another
7
individual
to
provide
retirement
benefits
or
deferred
8
compensation
to
the
person,
a
private
investment
firm,
or
a
9
holding
company
publicly
traded
on
the
New
York
stock
exchange,
10
the
American
stock
exchange,
or
NASDAQ
stock
market
and
who
has
11
a
majority
of
investments
in
businesses
other
than
businesses
12
that
manufacture,
bottle,
wholesale,
or
sell
at
retail
13
alcoholic
beverages.
14
Sec.
2.
Section
123.45,
subsection
1,
unnumbered
paragraph
15
1,
Code
2019,
is
amended
to
read
as
follows:
16
A
Subject
to
such
exceptions
as
otherwise
authorized
17
under
this
chapter,
a
person
engaged
in
the
business
of
18
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages,
19
wine,
or
beer
excluding
an
institutional
investor
,
or
any
20
jobber,
representative,
broker,
employee,
or
agent
of
such
a
21
person,
shall
not
do
any
of
the
following:
22
Sec.
3.
Section
123.45,
subsection
1,
paragraphs
c
and
d,
23
Code
2019,
are
amended
to
read
as
follows:
24
c.
Directly
or
indirectly
be
interested
in
the
ownership,
25
conduct,
or
operation
of
the
business
of
another
licensee
or
26
permittee
authorized
under
this
chapter
to
sell
at
retail
,
27
unless
the
licensee
or
permittee
authorized
under
this
28
chapter
to
sell
at
retail
does
not
purchase
or
sell
the
29
alcoholic
beverages
of
the
person
engaged
in
the
business
of
30
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages.
31
However,
the
licensee
or
permittee
authorized
under
this
32
chapter
to
sell
at
retail
may
purchase
and
sell
the
wine
of
the
33
person
engaged
in
the
business
of
manufacturing
wine
that
is
34
not
native
wine
provided
the
licensed
premises
is
the
principal
35
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668
office,
as
defined
in
section
490.140,
of
the
manufacturer
.
1
d.
Hold
a
retail
liquor
control
license
or
retail
wine
or
2
beer
permit
,
unless
the
licensee
or
permittee
holding
a
retail
3
liquor
control
license
or
retail
wine
or
beer
permit
does
not
4
purchase
or
sell
the
alcoholic
beverages
of
the
person
engaged
5
in
the
business
of
manufacturing,
bottling,
or
wholesaling
6
alcoholic
beverages.
However,
a
person
engaged
in
the
business
7
of
manufacturing
wine
that
is
not
native
wine
may
purchase
and
8
sell
the
person’s
wine
under
the
authority
of
a
special
class
9
“C”
liquor
control
license
and
a
class
“B”
wine
permit
provided
10
the
licensed
premises
is
the
principal
office,
as
defined
in
11
section
490.140,
of
the
person
.
12
Sec.
4.
Section
123.45,
Code
2019,
is
amended
by
adding
the
13
following
new
subsections:
14
NEW
SUBSECTION
.
1A.
Notwithstanding
any
provision
of
law
to
15
the
contrary,
a
broker,
employee,
or
agent
of
a
person
engaged
16
in
the
business
of
manufacturing,
bottling,
or
wholesaling
17
alcoholic
beverages
may
be
a
broker,
employee,
or
agent
of
18
another
person
engaged
in
the
business
of
manufacturing,
19
bottling,
or
wholesaling
alcoholic
beverages
or
a
broker,
20
employee,
or
agent
of
a
business
authorized
under
this
chapter
21
to
sell
alcoholic
beverages
at
retail
as
long
as
the
broker,
22
employee,
or
agent
is
not
an
officer,
owner,
director,
or
23
employee
in
a
position
to
exercise
any
control
or
influence
24
over
the
types
of
sales
or
the
purchasing
of
alcoholic
25
beverages
in
either
position
of
employment.
26
NEW
SUBSECTION
.
4.
The
exceptions
established
by
27
subsection
1
to
the
general
prohibition
against
tied
interests
28
shall
be
limited
to
their
express
terms
so
as
not
to
undermine
29
the
general
prohibition
and
shall
therefore
be
construed
30
accordingly,
and
shall
not
be
construed
to
affect
exceptions
31
to
the
general
prohibition
against
tied
interests
as
otherwise
32
authorized
under
this
chapter.
33
Sec.
5.
Section
123.130,
subsection
1,
Code
2019,
is
amended
34
to
read
as
follows:
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668
1.
a.
Any
person
holding
a
class
“A”
beer
permit
issued
1
by
the
division
shall
be
authorized
to
manufacture
and
sell,
2
or
sell
at
wholesale,
beer
for
consumption
off
the
premises,
3
such
sales
within
the
state
to
be
made
only
to
persons
holding
4
subsisting
class
“A”,
“B”,
or
“C”
beer
permits,
both
a
class
5
“C”
native
wine
permit
and
a
class
“A”
wine
permit
pursuant
6
to
section
123.178B,
subsection
4
,
or
liquor
control
licenses
7
issued
in
accordance
with
the
provisions
of
this
chapter
.
8
However,
a
person
holding
a
class
“A”
beer
permit
issued
by
9
the
division
who
also
holds
a
brewer’s
notice
issued
by
the
10
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
11
department
of
the
treasury
shall
be
authorized
to
sell,
at
12
wholesale,
no
more
than
thirty
thousand
barrels
of
beer
on
an
13
annual
basis
for
consumption
off
the
premises.
14
b.
A
class
“A”
or
special
class
“A”
beer
permit
does
not
15
grant
authority
to
manufacture
wine
as
defined
in
section
16
123.3,
subsection
48
.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
concerns
alcoholic
beverage
control
relating
21
to
limitations
on
business
interests
of
manufacturers,
22
wholesalers,
and
retailers
of
alcoholic
beverages.
23
Code
section
123.45,
concerning
limitations
on
business
24
interests,
is
amended.
The
bill,
for
purposes
of
the
Code
25
section,
defines
“institutional
investor”
to
mean
a
person
26
who
maintains
a
diversified
portfolio
of
investments
and
27
who
has
a
majority
of
investments
in
businesses
other
than
28
businesses
that
manufacture,
bottle,
wholesale,
or
sell
at
29
retail
alcoholic
beverages.
30
Code
section
123.45(1),
providing
the
general
limitation
on
31
business
interests,
is
amended.
The
bill
provides
that
the
32
limitation
on
business
interests
applicable
to
a
person
engaged
33
in
the
business
of
manufacturing,
bottling,
or
wholesaling
34
alcoholic
beverages
does
not
apply
to
a
person
who
is
an
35
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institutional
investor.
In
addition,
the
bill
provides
that
a
1
manufacturer,
bottler,
or
wholesaler
of
alcoholic
beverages
is
2
not
prohibited
from
being
interested
in
the
business
of
another
3
retail
licensee
or
permittee,
or
from
holding
a
retail
liquor
4
control
license
or
retail
wine
or
beer
permit,
if
the
retail
5
business,
licensee,
or
permittee
does
not
purchase
or
sell
the
6
alcoholic
beverages
of
the
person
engaged
in
the
business
of
7
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages.
8
The
bill
further
provides
that
a
person
engaged
in
the
business
9
of
manufacturing
wine
that
is
not
native
wine
who
is
interested
10
in
the
business
of
another
retail
licensee
or
permittee
may
11
still
purchase
and
sell
the
person’s
wine
on
the
premises
of
a
12
retail
licensee
of
the
person
so
long
as
the
licensed
premises
13
is
the
principal
office
of
the
manufacturer.
14
Code
section
123.45,
new
subsection
1A,
provides
that
a
15
broker,
employee,
or
agent
of
a
person
engaged
in
the
business
16
of
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages
17
may
be
a
broker,
employee,
or
agent
of
another
person
engaged
18
in
the
business
of
manufacturing,
bottling,
or
wholesaling
19
alcoholic
beverages
or
a
business
authorized
to
sell
alcoholic
20
beverages
at
retail
as
long
as
the
broker,
employee,
or
agent
21
is
not
an
officer,
owner,
director,
or
employee
in
a
position
22
to
exercise
any
control
or
influence
over
the
types
of
sales
23
or
the
purchasing
of
alcoholic
beverages
in
either
position
of
24
employment.
25
Code
section
123.45
is
further
amended
to
provide
that
the
26
exceptions
established
by
subsection
1
of
this
Code
section
to
27
the
general
prohibition
against
tied
interests
shall
be
limited
28
and
shall
not
be
construed
to
affect
exceptions
to
the
general
29
prohibition
against
tied
interests
as
otherwise
authorized
30
under
Code
chapter
123.
31
Code
section
123.130,
concerning
authority
under
a
class
32
“A”
beer
permit,
is
amended
to
provide
that
a
person
holding
a
33
class
“A”
beer
permit
who
also
holds
a
brewer’s
notice
issued
34
by
the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
35
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