House File 677 - 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 a,
8subparagraph (1), subparagraph division (c), Code 2023, is
9amended to read as follows:
   10(c)  The holder of a class “B” retail alcohol license may
11sell beer to class “C”, special class “C”, special class “C”
12retail native license,
class “D”, and class “F” retail alcohol
13licensees for resale for consumption on the premises. Such
14beer sales shall be in quantities of not more than five cases
15of beer, high alcoholic content beer, and canned cocktails,
16but not more than one such sale shall be made to the same
17retail alcohol licensee in a twenty-four-hour period. A class
18“A” beer permittee shall be held harmless concerning any beer
19resold as authorized by this subparagraph division.
20   Sec. 3.  Section 123.30, subsection 3, paragraph b, Code
212023, is amended by adding the following new subparagraph:
22   NEW SUBPARAGRAPH.  (3)  A special class “C” retail native
23wine license shall authorize the holder to sell beer and native
24wine as provided in section 123.31C.
25   Sec. 4.  Section 123.30, subsection 3, paragraph d,
26subparagraph (4), Code 2023, is amended to read as follows:
   27(4)  The holder of a class “E” retail alcohol license may
28sell beer to class “C”, special class “C”, special class “C”
29retail native license,
class “D”, and class “F” retail alcohol
30licensees for resale for consumption on the premises. Such
31beer sales shall be in quantities of not more than five cases
32of beer, high alcoholic content beer, and canned cocktails,
33but not more than one such sale shall be made to the same
34retail alcohol licensee in a twenty-four-hour period. A class
35“A” beer permittee shall be held harmless concerning any beer
-1-1resold as authorized by this subparagraph.
2   Sec. 5.  NEW SECTION.  123.31C  Authority under special class
3“C” retail native wine license.
   41.  A person holding a special class “C” retail native
5wine license may sell beer and native wine only at retail for
6consumption on or off the premises. Sales of beer and native
7wine for consumption off the premises made pursuant to this
8section shall be made in original containers except as provided
9in subsection 5.
   102.  A special class “C” retail native wine licensee having
11more than one place of business where wine is sold and served
12shall obtain a separate permit for each place of business.
   133.  A person holding a special class “C” retail native wine
14license may purchase wine for resale only from a native winery
15holding a class “A” wine permit.
   164.  A person holding a special class “C” retail native wine
17license may purchase beer as follows:
   18a.  From class “A” beer permittees.
   19b.  From class “B” retail alcohol licensees or class “E”
20retail alcohol licensees in quantities of not more than
21five cases of beer, high alcoholic content beer, and canned
22cocktails, but not more than one such purchase shall be made by
23the licensee in a twenty-four-hour period. A class “A” beer
24permittee shall be held harmless concerning any beer resold as
25authorized by this subsection.
   265.  Subject to the rules of the division, sales made pursuant
27to this section may be made in a container other than the
28original container only if all of the following requirements
29are met:
   30a.  The beer or native wine is transferred from the original
31container to the container to be sold on the licensed premises
32at the time of sale or when sold by telephonic or other
33electronic means.
   34b.  The person transferring the beer or native wine from
35the original container to the container to be sold shall be
-2-1eighteen years of age or more.
   2c.  The container to be sold shall be no larger than
3seventy-two ounces.
   4d.  The container to be sold shall be securely sealed by a
5method authorized by the division that is designed so that if
6the sealed container is reopened or the seal tampered with, it
7is visibly apparent that the seal on the container of beer or
8native wine has been tampered with or the sealed container has
9otherwise been reopened.
   106.  A container of beer or native wine other than the
11original container that is sold and sealed in compliance
12with the requirements of subsection 5 and the rules of the
13division shall not be deemed an open container subject to the
14requirements of sections 321.284 and 321.284A if the sealed
15container is unopened and the seal has not been tampered with,
16and the contents of the container have not been partially
17removed.
18   Sec. 6.  Section 123.36, subsection 1, Code 2023, is amended
19by adding the following new paragraph:
20   NEW PARAGRAPH.  0e.  Special class “C” retail native wine
21license fees shall be one hundred twenty-five dollars.
22   Sec. 7.  Section 123.176, subsection 5, Code 2023, is amended
23to read as follows:
   245.  Notwithstanding any other provision of this chapter, a
25person engaged in the business of manufacturing native wine
26may be granted a class “C” retail alcohol license or special
27class “C” retail native wine license
as defined in section
28123.30. A manufacturer of native wine may be granted not more
29than two class “C” retail alcohol licenses or special class “C”
30retail native wine licenses
. A manufacturer of native wine
31may be issued a class “C” retail alcohol license or special
32class “C” retail native wine license
regardless of whether the
33manufacturer is also a manufacturer of beer pursuant to a class
34“A” beer permit or a manufacturer of native distilled spirits
35pursuant to a class “A” native distilled spirits license.
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1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
   4This bill creates a new special class “C” retail native
5wine license which can be obtained by a person engaged in the
6business of manufacturing native wine. The license authorizes
7the holder to sell native wine purchased from a native winery
8holding a class “A” wine permit and beer from class “A” beer
9permittees and class “B” and class “E” retail alcohol licensees
10only at retail for consumption on or off the premises. A
11person holding the new special class “C” retail native wine
12license is also allowed to make sales of native wine in a
13container other than the original container only if certain
14requirements related to transferring the wine and sealing the
15container are met. A container of beer or native wine that is
16sold and sealed in compliance with the requirements of the bill
17shall not be deemed an open container. The fee for the new
18license is $125.
   19The bill authorizes a person engaged in the business of
20manufacturing wine to be granted not more than two special
21class “C” retail native wine licenses. Current law provides
22that a person engaged in the business of manufacturing wine may
23only be granted up to two class “C” retail alcohol licenses.
24A class “C” retail alcohol license authorizes the holder to
25purchase and sell alcoholic liquor, wine, and beer.
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