House Study Bill 298 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act concerning alcoholic beverage control. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2931YC (1) 91 ll/ns

H.F. _____ Section 1. Section 123.30, subsection 4, Code 2025, is 1 amended to read as follows: 2 4. Notwithstanding any provision of this chapter to the 3 contrary, a person holding a retail alcohol license to sell 4 alcoholic beverages for consumption on the licensed premises 5 may permit a customer to remove one unsealed bottle of wine 6 for consumption off the premises if the customer has purchased 7 and consumed a portion of the bottle of wine on the licensed 8 premises. The licensee or the licensee’s agent shall securely 9 reseal such bottle in a bag designed so that it is visibly 10 apparent that the resealed bottle of wine has not been tampered 11 with and provide a dated receipt for the resealed bottle of 12 wine to the customer. A wine bottle resealed pursuant to the 13 requirements of this subsection is subject to the requirements 14 of sections 321.284 and 321.284A . A person holding a retail 15 alcohol license to sell alcoholic beverages for consumption on 16 the licensed premises may permit a customer to carry an open 17 container of wine from the person’s licensed premises into 18 another immediately adjacent licensed premises that is covered 19 by a license or permit that authorizes the consumption of wine, 20 a temporarily closed public right-of-way, or a private place. 21 Sec. 2. Section 123.30, Code 2025, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 5. a. Notwithstanding any provision of 24 this chapter to the contrary, a person holding a retail alcohol 25 license to sell alcoholic beverages for consumption on the 26 licensed premises may permit a customer to carry an alcoholic 27 beverage in an open container from the licensed premises to any 28 of the following immediately adjacent locations: 29 (1) A licensed premises authorized to sell the same type of 30 alcoholic beverage for consumption on the licensed premises. 31 (2) A temporarily closed public right-of-way. 32 (3) A private place. 33 b. The licensee of the immediately adjacent licensed 34 premises, or owner of the immediately adjacent private 35 -1- LSB 2931YC (1) 91 ll/ns 1/ 6

H.F. _____ place, may refuse to allow the customer to enter the licensed 1 premises or private place with an alcoholic beverage in an open 2 container. 3 Sec. 3. Section 123.43A, subsection 6, paragraph a, Code 4 2025, is amended to read as follows: 5 a. Notwithstanding any provision of this chapter to the 6 contrary or the fact that a person is the holder of a class 7 “A” native distilled spirits license, a native distillery may 8 be granted a class “C” retail alcohol license as defined in 9 section 123.30 for the same premises licensed under a class 10 “A” native distilled spirits license where the manufacturing 11 of native distilled spirits occurs. A native distillery may 12 be granted not more than two three class “C” retail alcohol 13 licenses. A native distillery may be issued a class “C” retail 14 alcohol license regardless of whether the native distillery is 15 also a manufacturer of beer pursuant to a class “A” beer permit 16 or a manufacturer of native wine pursuant to a class “A” wine 17 permit. 18 Sec. 4. Section 123.45, subsection 3, paragraph b, Code 19 2025, is amended to read as follows: 20 b. Notwithstanding any other provision of this chapter or 21 the fact that a person is the holder of a class “A” beer permit, 22 a native brewery may be granted a class “C” retail alcohol 23 license or a special class “C” retail alcohol license, both 24 as defined in section 123.30 , for the same premises licensed 25 under a class “A” beer permit where the manufacturing of beer 26 occurs. A native brewery may be granted not more than two 27 three class “C” retail alcohol licenses or two special class 28 “C” retail alcohol licenses. A native brewery may be issued a 29 class “C” retail alcohol license or a special class “C” retail 30 alcohol license regardless of whether that person is also a 31 manufacturer of native distilled spirits pursuant to a class 32 “A” native distilled spirits license or a manufacturer of 33 native wine pursuant to a class “A” wine permit. 34 Sec. 5. Section 123.130, subsection 1, paragraph a, Code 35 -2- LSB 2931YC (1) 91 ll/ns 2/ 6

H.F. _____ 2025, is amended to read as follows: 1 a. Any person holding a class “A” beer permit issued by 2 the department shall be authorized to manufacture and sell, or 3 sell at wholesale, beer for consumption off the premises, such 4 sales within the state to be made only to persons holding a 5 subsisting class “A” beer permit, or retail alcohol licenses, 6 excluding a special class “B” retail native wine license, 7 issued in accordance with the provisions of this chapter . 8 However, a person holding a class “A” beer permit issued by 9 the department 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 thirty-eight thousand barrels 13 of beer on an annual basis for consumption off the premises to 14 a licensee licensees authorized under this chapter to sell beer 15 at retail. 16 Sec. 6. Section 123.130, subsection 2, Code 2025, is amended 17 to read as follows: 18 2. Pursuant to section 123.45, subsection 3 , a native 19 brewery may be granted not more than two three class “C” retail 20 alcohol licenses or not more than two three special class “C” 21 retail alcohol licenses. 22 Sec. 7. Section 123.173, subsection 2, Code 2025, is amended 23 to read as follows: 24 2. A class “A” wine permit allows the holder to manufacture 25 and sell, or sell at wholesale, in this state, wine. The 26 holder of a class “A” wine permit may manufacture in this state 27 wine having an alcoholic content greater than seventeen percent 28 by weight or twenty-one and twenty-five hundredths percent 29 of alcohol by volume for shipment outside this state. All 30 class “A” premises shall be located within the state. However, 31 a native winery holding a class “A” wine permit issued by 32 the department who also holds a basic permit issued by the 33 alcohol and tobacco tax and trade bureau of the United States 34 department of the treasury shall be authorized to sell, at 35 -3- LSB 2931YC (1) 91 ll/ns 3/ 6

H.F. _____ wholesale, no more than one hundred fifty thousand gallons of 1 wine on an annual basis for consumption off the premises to 2 licensees authorized under this chapter to sell wine at retail. 3 Sec. 8. Section 123.175, subsection 2, paragraph g, Code 4 2025, is amended by striking the paragraph. 5 Sec. 9. Section 123.176, subsection 5, paragraph a, Code 6 2025, is amended to read as follows: 7 a. Notwithstanding any other provision of this chapter 8 or the fact that a person is the holder of a class “A” wine 9 permit, a person engaged in the business of manufacturing 10 native wine may be granted a class “C” retail alcohol license 11 or special class “C” retail native wine license as defined in 12 section 123.30 for the same premises licensed under a class “A” 13 wine permit where the manufacturing of native wine occurs. A 14 manufacturer of native wine may be granted not more than two 15 three class “C” retail alcohol licenses or special class “C” 16 retail native wine licenses. A manufacturer of native wine 17 may be issued a class “C” retail alcohol license or special 18 class “C” retail native wine license regardless of whether the 19 manufacturer is also a manufacturer of beer pursuant to a class 20 “A” beer permit or a manufacturer of native distilled spirits 21 pursuant to a class “A” native distilled spirits license. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to alcoholic beverage control. 26 Under current law, a person holding a retail alcohol license 27 to sell alcoholic beverages for consumption on the licensed 28 premises may permit a customer to carry an open container 29 of wine from the person’s licensed premises into another 30 immediately adjacent licensed premises that is covered by a 31 license or permit that authorizes the consumption of wine, a 32 temporarily closed public right-of-way, or a private place. 33 The bill allows a licensee to permit a customer to carry any 34 alcoholic beverage in an open container to an immediately 35 -4- LSB 2931YC (1) 91 ll/ns 4/ 6

H.F. _____ adjacent licensed premises authorized to sell the same type of 1 alcoholic beverage for consumption on the licensed premises, 2 a temporarily closed public right-of-way, or a private place. 3 The bill allows the licensee of the immediately adjacent 4 licensed premises, or owner of the immediately adjacent private 5 place, to refuse to allow the customer to enter the licensed 6 premises or private place with an open container. 7 Under current law, the following retail alcohol licenses 8 may be issued to native manufacturers for the same premises 9 where manufacturing occurs: a native distillery may be granted 10 not more than two class “C” retail alcohol licenses, a native 11 brewery may be granted not more than two class “C” retail 12 alcohol licenses or two special class “C” retail alcohol 13 licenses, and a native winery may be granted not more than 14 two class “C” retail alcohol licenses or two special class 15 “C” retail native wine licenses. A class “C” retail alcohol 16 license allows for the sale and on-premises consumption of 17 alcoholic liquor, wine, or beer and the sale of alcoholic 18 liquor, wine, and beer in original unopened containers for 19 consumption off the premises. A special class “C” retail 20 alcohol license allows for the sale and consumption of wine 21 and beer on the premises and the sale of wine and beer in 22 original unopened containers for consumption off the premises. 23 A special class “C” retail native wine license allows beer and 24 native wine to be sold for on- or off-premises consumption. 25 The bill allows native manufacturers to be issued not more than 26 three of the currently authorized retail alcohol licenses. 27 Under current law, a class “A” beer permit holder who also 28 holds a brewer’s notice issued by the alcohol and tobacco 29 tax and trade bureau of the United States department of 30 the treasury (bureau), also known as a native brewery, is 31 authorized to sell, at wholesale, no more than 30,000 barrels 32 of beer on an annual basis to off-premises licensees. The bill 33 increases this to no more than 38,000 barrels of beer. 34 The bill imposes a limit on a class “A” wine permit holder 35 -5- LSB 2931YC (1) 91 ll/ns 5/ 6

H.F. _____ who also holds a basic permit issued by the bureau, also 1 known as a native winery, of no more than 150,000 gallons of 2 wine annually that may be sold at wholesale to off-premises 3 retailers of wine. 4 The bill eliminates the $5,000 bond requirement for class 5 “A” wine permit holders. 6 -6- LSB 2931YC (1) 91 ll/ns 6/ 6