House File 677 - EnrolledAn Actrelating to native winery and native brewery retail
alcohol licenses.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
   Section 1.  Section 123.3, subsection 45, Code 2023, is
amended to read as follows:
   45.  “Retail alcohol license” means a class “B”, class “C”,
special class “C”, class “D”, class “E”, or class “F” retail
alcohol license, or a special class “B” or special class “C”
retail native wine license issued under this chapter.
   Sec. 2.  Section 123.30, subsection 3, paragraph a,
subparagraph (1), subparagraph division (c), Code 2023, is
amended to read as follows:
   (c)  The holder of a class “B” retail alcohol license may
sell beer to class “C”, special class “C”, special class “C”
retail native license,
class “D”, and class “F” retail alcohol
licensees for resale for consumption on the premises. Such
beer sales shall be in quantities of not more than five cases
of beer, high alcoholic content beer, and canned cocktails,
but not more than one such sale shall be made to the same
retail alcohol licensee in a twenty-four-hour period. A class
“A” beer permittee shall be held harmless concerning any beer
resold as authorized by this subparagraph division.
   Sec. 3.  Section 123.30, subsection 3, paragraph b, Code
2023, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (3)  A special class “C” retail native
wine license shall authorize the holder to sell beer and native
wine as provided in section 123.31C.
   Sec. 4.  Section 123.30, subsection 3, paragraph d,
subparagraph (4), Code 2023, is amended to read as follows:
   (4)  The holder of a class “E” retail alcohol license may
sell beer to class “C”, special class “C”, special class “C”
retail native license,
class “D”, and class “F” retail alcohol
licensees for resale for consumption on the premises. Such
beer sales shall be in quantities of not more than five cases
of beer, high alcoholic content beer, and canned cocktails,
but not more than one such sale shall be made to the same
retail alcohol licensee in a twenty-four-hour period. A class
“A” beer permittee shall be held harmless concerning any beer
-1-resold as authorized by this subparagraph.
   Sec. 5.  NEW SECTION.  123.31C  Authority under special class
“C” retail native wine license.
   1.  A person holding a special class “C” retail native
wine license may sell beer and native wine only at retail for
consumption on or off the premises. Sales of beer and native
wine for consumption off the premises made pursuant to this
section shall be made in original containers except as provided
in subsection 5.
   2.  A special class “C” retail native wine licensee having
more than one place of business where wine is sold and served
shall obtain a separate permit for each place of business.
   3.  A person holding a special class “C” retail native wine
license may purchase wine for resale only from a native winery
holding a class “A” wine permit.
   4.  A person holding a special class “C” retail native wine
license may purchase beer as follows:
   a.  From class “A” beer permittees.
   b.  From class “B” retail alcohol licensees or class “E”
retail alcohol licensees in quantities of not more than
five cases of beer, high alcoholic content beer, and canned
cocktails, but not more than one such purchase shall be made by
the licensee in a twenty-four-hour period. A class “A” beer
permittee shall be held harmless concerning any beer resold as
authorized by this subsection.
   5.  Subject to the rules of the department, sales made
pursuant to this section may be made in a container other
than the original container only if all of the following
requirements are met:
   a.  The beer or native wine is transferred from the original
container to the container to be sold on the licensed premises
at the time of sale or when sold by telephonic or other
electronic means.
   b.  The person transferring the beer or native wine from
the original container to the container to be sold shall be
-2-eighteen years of age or more.
   c.  The container to be sold shall be no larger than
seventy-two ounces.
   d.  The container to be sold shall be securely sealed by a
method authorized by the department that is designed so that if
the sealed container is reopened or the seal tampered with, it
is visibly apparent that the seal on the container of beer or
native wine has been tampered with or the sealed container has
otherwise been reopened.
   6.  A container of beer or native wine other than the
original container that is sold and sealed in compliance
with the requirements of subsection 5 and the rules of the
department shall not be deemed an open container subject to the
requirements of sections 321.284 and 321.284A if the sealed
container is unopened and the seal has not been tampered with,
and the contents of the container have not been partially
removed.
   Sec. 6.  Section 123.36, subsection 1, Code 2023, is amended
by adding the following new paragraph:
   NEW PARAGRAPH.  0e.  Special class “C” retail native wine
license fees shall be one hundred twenty-five dollars.
   Sec. 7.  Section 123.45, subsection 3, Code 2023, is amended
to read as follows:
   3.  A person engaged in the wholesaling of beer or wine
may sell only disposable glassware, which is constructed of
paper, paper laminated, or plastic materials and designed
primarily for personal consumption on a one-time usage
basis, to retailers for use within the premises of licensed
establishments, for an amount which is greater than or equal
to an amount which represents the greater of either the amount
paid for the disposable glassware by the supplier or the amount
paid for the disposable glassware by the wholesaler. Also,
notwithstanding any other provision of this chapter or the fact
that a person is the holder of a class “A” beer permit, a native
brewery may be granted not more than two class “C” retail
-3-alcohol licenses or not more than two special class “C” retail
alcohol licenses, both
as defined in section 123.30, regardless
of whether that person is also a manufacturer of native
distilled spirits pursuant to a class “A” native distilled
spirits license or a manufacturer of native wine pursuant to a
class “A” wine permit.
   Sec. 8.  Section 123.130, subsection 2, Code 2023, is amended
to read as follows:
   2.  Pursuant to section 123.45, subsection 3, a native
brewery may be granted not more than two class “C” retail
alcohol licenses or not more than two special class “C” retail
alcohol licenses
.
   Sec. 9.  Section 123.176, subsection 5, Code 2023, is amended
to read as follows:
   5.  Notwithstanding any other provision of this chapter, a
person engaged in the business of manufacturing native wine
may be granted a class “C” retail alcohol license or special
class “C” retail native wine license
as defined in section
123.30. A manufacturer of native wine may be granted not more
than two class “C” retail alcohol licenses or special class “C”
retail native wine licenses
. A manufacturer of native wine
may be issued a class “C” retail alcohol license or special
class “C” retail native wine license
regardless of whether the
manufacturer is also a manufacturer of beer pursuant to a class
“A” beer permit or a manufacturer of native distilled spirits
pursuant to a class “A” native distilled spirits license.
______________________________
PAT GRASSLEYSpeaker of the House
______________________________
AMY SINCLAIRPresident of the Senate
   I hereby certify that this bill originated in the House and is known as House File 677, Ninetieth General Assembly.______________________________
MEGHAN NELSONChief Clerk of the House
Approved _______________, 2023______________________________
KIM REYNOLDSGovernor
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