Bill Text: IA HF668 | 2019-2020 | 88th General Assembly | Amended
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-Amended.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-Amended.html
House
File
668
-
Reprinted
HOUSE
FILE
668
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
210)
(COMPANION
TO
LSB
2490SV
BY
COMMITTEE
ON
COMMERCE)
(As
Amended
and
Passed
by
the
House
March
13,
2019
)
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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H.F.
668
Section
1.
Section
123.3,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
24A.
“Institutional
investor”
means
a
3
person
who
maintains
a
diversified
portfolio
of
investments
4
through
a
state
or
federally
chartered
bank,
a
mutual
fund,
5
a
retirement
plan
or
account
created
by
an
employer,
the
6
person,
or
another
individual
to
provide
retirement
benefits
or
7
deferred
compensation
to
the
person,
a
private
investment
firm,
8
or
a
holding
company
publicly
traded
on
the
New
York
stock
9
exchange,
the
American
stock
exchange,
or
NASDAQ
stock
market
10
and
who
has
a
majority
of
investments
in
businesses
other
than
11
businesses
that
manufacture,
bottle,
wholesale,
or
sell
at
12
retail
alcoholic
beverages.
13
Sec.
2.
Section
123.45,
subsection
1,
unnumbered
paragraph
14
1,
Code
2019,
is
amended
to
read
as
follows:
15
A
Subject
to
such
exceptions
as
otherwise
authorized
16
under
this
chapter,
a
person
engaged
in
the
business
of
17
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages,
18
wine,
or
beer
excluding
an
institutional
investor
,
or
any
19
jobber,
representative,
broker,
employee,
or
agent
of
such
a
20
person,
shall
not
do
any
of
the
following:
21
Sec.
3.
Section
123.45,
subsection
1,
paragraphs
c
and
d,
22
Code
2019,
are
amended
to
read
as
follows:
23
c.
Directly
or
indirectly
be
interested
in
the
ownership,
24
conduct,
or
operation
of
the
business
of
another
licensee
or
25
permittee
authorized
under
this
chapter
to
sell
at
retail
,
26
unless
the
licensee
or
permittee
authorized
under
this
27
chapter
to
sell
at
retail
does
not
purchase
or
sell
the
28
alcoholic
beverages
of
the
person
engaged
in
the
business
of
29
manufacturing,
bottling,
or
wholesaling
alcoholic
beverages.
30
However,
the
licensee
or
permittee
authorized
under
this
31
chapter
to
sell
at
retail
may
purchase
and
sell
the
wine
of
the
32
person
engaged
in
the
business
of
manufacturing
wine
that
is
33
not
native
wine
provided
the
licensed
premises
is
the
principal
34
office,
as
defined
in
section
490.140,
of
the
person
.
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d.
Hold
a
retail
liquor
control
license
or
retail
wine
or
1
beer
permit
,
unless
the
licensee
or
permittee
holding
a
retail
2
liquor
control
license
or
retail
wine
or
beer
permit
does
not
3
purchase
or
sell
the
alcoholic
beverages
of
the
person
engaged
4
in
the
business
of
manufacturing,
bottling,
or
wholesaling
5
alcoholic
beverages.
However,
a
person
engaged
in
the
business
6
of
manufacturing
wine
that
is
not
native
wine
may
purchase
and
7
sell
the
person’s
wine
under
the
authority
of
a
special
class
8
“C”
liquor
control
license
and
a
class
“B”
wine
permit
provided
9
the
licensed
premises
is
the
principal
office,
as
defined
in
10
section
490.140,
of
the
person
.
11
Sec.
4.
Section
123.45,
Code
2019,
is
amended
by
adding
the
12
following
new
subsections:
13
NEW
SUBSECTION
.
1A.
Notwithstanding
any
provision
of
law
to
14
the
contrary,
a
broker,
employee,
or
agent
of
a
person
engaged
15
in
the
business
of
manufacturing,
bottling,
or
wholesaling
16
alcoholic
beverages
may
be
a
broker,
employee,
or
agent
of
17
another
person
engaged
in
the
business
of
manufacturing,
18
bottling,
or
wholesaling
alcoholic
beverages
or
a
broker,
19
employee,
or
agent
of
a
business
authorized
under
this
chapter
20
to
sell
alcoholic
beverages
at
retail
as
long
as
the
broker,
21
employee,
or
agent
is
not
an
officer,
owner,
director,
or
22
employee
in
a
position
to
exercise
any
control
or
influence
23
over
the
types
of
sales
or
the
purchasing
of
alcoholic
24
beverages
in
either
position
of
employment.
25
NEW
SUBSECTION
.
4.
The
exceptions
established
by
26
subsection
1
to
the
general
prohibition
against
tied
interests
27
shall
be
limited
to
their
express
terms
so
as
not
to
undermine
28
the
general
prohibition
and
shall
therefore
be
construed
29
accordingly,
and
shall
not
be
construed
to
affect
exceptions
30
to
the
general
prohibition
against
tied
interests
as
otherwise
31
authorized
under
this
chapter.
32
Sec.
5.
Section
123.130,
subsection
1,
Code
2019,
is
amended
33
to
read
as
follows:
34
1.
a.
Any
person
holding
a
class
“A”
beer
permit
issued
35
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H.F.
668
by
the
division
shall
be
authorized
to
manufacture
and
sell,
1
or
sell
at
wholesale,
beer
for
consumption
off
the
premises,
2
such
sales
within
the
state
to
be
made
only
to
persons
holding
3
subsisting
class
“A”,
“B”,
or
“C”
beer
permits,
both
a
class
4
“C”
native
wine
permit
and
a
class
“A”
wine
permit
pursuant
5
to
section
123.178B,
subsection
4
,
or
liquor
control
licenses
6
issued
in
accordance
with
the
provisions
of
this
chapter
.
7
However,
a
person
holding
a
class
“A”
beer
permit
issued
by
8
the
division
who
also
holds
a
brewer’s
notice
issued
by
the
9
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
10
department
of
the
treasury
shall
be
authorized
to
sell,
at
11
wholesale,
no
more
than
thirty
thousand
barrels
of
beer
on
an
12
annual
basis
for
consumption
off
the
premises
to
a
licensee
or
13
permittee
authorized
under
this
chapter
to
sell
beer
at
retail.
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
.
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