House Study Bill 127 - IntroducedA Bill ForAn Act 1relating to native winery retail alcohol licenses.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 123.3, subsection 45, Code 2023, is
2amended to read as follows:
   345.  “Retail alcohol license” means a class “B”, class “C”,
4special class “C”, class “D”, class “E”, or class “F” retail
5alcohol license, or a special class “B” or special class “C”
6 retail native wine license issued under this chapter.
7   Sec. 2.  Section 123.30, subsection 3, paragraph b, Code
82023, is amended by adding the following new subparagraph:
9   NEW SUBPARAGRAPH.  (3)  A special class “C” retail native
10wine license shall authorize the holder to sell native wine as
11provided in section 123.31C.
12   Sec. 3.  NEW SECTION.  123.31C  Authority under special class
13“C” retail native wine license.
   141.  A person holding a special class “C” retail native wine
15license may sell native wine only at retail for consumption
16on or off the premises. Sales of wine for consumption off
17the premises made pursuant to this section shall be made in
18original containers except as provided in subsection 5.
   192.  A special class “C” retail native wine licensee having
20more than one place of business where wine is sold and served
21shall obtain a separate permit for each place of business.
   223.  A person holding a special class “C” retail native wine
23license may purchase wine for resale only from a native winery
24holding a class “A” wine permit.
   254.  Subject to the rules of the division, sales made pursuant
26to this section may be made in a container other than the
27original container only if all of the following requirements
28are met:
   29a.  The wine is transferred from the original container to
30the container to be sold on the licensed premises at the time
31of sale or when sold by telephonic or other electronic means.
   32b.  The person transferring the wine from the original
33container to the container to be sold shall be eighteen years
34of age or more.
   35c.  The container to be sold shall be no larger than
-1-1seventy-two ounces.
   2d.  The container to be sold shall be securely sealed by a
3method authorized by the division that is designed so that if
4the sealed container is reopened or the seal tampered with, it
5is visibly apparent that the seal on the container of wine has
6been tampered with or the sealed container has otherwise been
7reopened.
   85.  A container of wine other than the original container
9that is sold and sealed in compliance with the requirements of
10subsection 4 and the rules of the division shall not be deemed
11an open container subject to the requirements of sections
12321.284 and 321.284A if the sealed container is unopened and
13the seal has not been tampered with, and the contents of the
14container have not been partially removed.
15   Sec. 4.  Section 123.36, subsection 1, Code 2023, is amended
16by adding the following new paragraph:
17   NEW PARAGRAPH.  0e.  Special class “C” retail native wine
18license fees shall be one hundred twenty-five dollars.
19   Sec. 5.  Section 123.176, subsection 5, Code 2023, is amended
20to read as follows:
   215.  Notwithstanding any other provision of this chapter, a
22person engaged in the business of manufacturing native wine
23may be granted a class “C” retail alcohol license or special
24class “C” retail native wine license
as defined in section
25123.30. A manufacturer of native wine may be granted not more
26than two class “C” retail alcohol licenses or special class “C”
27retail native wine licenses
. A manufacturer of native wine
28may be issued a class “C” retail alcohol license or special
29class “C” retail native wine license
regardless of whether the
30manufacturer is also a manufacturer of beer pursuant to a class
31“A” beer permit or a manufacturer of native distilled spirits
32pursuant to a class “A” native distilled spirits license.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
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   1This bill creates a new special class “C” retail native
2wine license which can be obtained by a person engaged in the
3business of manufacturing native wine. The license authorizes
4the holder to sell native wine purchased from a native winery
5holding a class “A” wine permit only at retail for consumption
6on or off the premises. A person holding the new special class
7“C” retail native wine license is also allowed to make sales of
8native wine in a container other than the original container
9only if certain requirements related to transferring the wine
10and sealing the container are met. A container of wine that
11is sold and sealed in compliance with the requirements of the
12bill shall not be deemed an open container. The fee for the new
13license is $125.
   14The bill authorizes a person engaged in the business of
15manufacturing wine to be granted not more than two special
16class “C” retail native wine licenses. Current law provides
17that a person engaged in the business of manufacturing wine may
18only be granted up to two class “C” retail alcohol licenses.
19A class “C” retail alcohol license authorizes the holder to
20purchase and sell alcoholic liquor, wine, and beer.
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