Senate File 610 S-3095 Amend Senate File 610 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 DEFINITIONS —— LICENSE AUTHORIZATIONS —— BOND REQUIREMENTS 5 Section 1. Section 123.3, subsections 10 and 32, Code 2025, 6 are amended to read as follows: 7 10. “Canned cocktail” means a mixed drink or cocktail , the 8 alcohol component of which is primarily composed of alcoholic 9 liquor, that is premixed and packaged in a metal can and 10 contains more than one-half of one percent of alcohol by volume 11 but not more than fifteen percent of alcohol by volume. A 12 mixed drink or cocktail mixed and packaged in a metal can 13 pursuant to section 123.49, subsection 2 , paragraph “d” , 14 subparagraph (3), shall not be considered a canned cocktail. 15 32. “Mixed drink or cocktail” means an alcoholic beverage, 16 composed in whole or in part of alcoholic liquor, wine, or 17 beer, that is combined with other alcoholic beverages or 18 nonalcoholic beverages or ingredients including but not limited 19 to ice, water, soft drinks, or flavorings. 20 Sec. 2. Section 123.30, subsection 1, paragraph a, Code 21 2025, is amended to read as follows: 22 a. A retail alcohol license may be issued to any person 23 who is of good moral character as defined by this chapter , the 24 state of Iowa, or any state agency as defined in section 669.2 . 25 Sec. 3. Section 123.30, subsection 3, paragraph b, 26 subparagraph (2), subparagraph division (c), Code 2025, is 27 amended to read as follows: 28 (c) The holder of a special class “C” retail alcohol 29 license shall be authorized to sell wine and beer to patrons 30 by the individual drink for consumption on the premises only. 31 However, wine and beer in original unopened containers may 32 also be sold for consumption off the premises. In addition, a 33 mixed drink or cocktail that does not contain alcoholic liquor 34 may be sold for consumption off the premises subject to the 35 -1- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 1/ 10 #1.

requirements of section 123.49, subsection 2, paragraph “d” . 1 Sec. 4. Section 123.30, subsection 4, Code 2025, is amended 2 to read as follows: 3 4. Notwithstanding any provision of this chapter to the 4 contrary, a person holding a retail alcohol license to sell 5 alcoholic beverages for consumption on the licensed premises 6 may permit a customer to remove one unsealed bottle of wine 7 for consumption off the premises if the customer has purchased 8 and consumed a portion of the bottle of wine on the licensed 9 premises. The licensee or the licensee’s agent shall securely 10 reseal such bottle in a bag designed so that it is visibly 11 apparent that the resealed bottle of wine has not been tampered 12 with and provide a dated receipt for the resealed bottle of 13 wine to the customer. A wine bottle resealed pursuant to the 14 requirements of this subsection is subject to the requirements 15 of sections 321.284 and 321.284A . A person holding a retail 16 alcohol license to sell alcoholic beverages for consumption on 17 the licensed premises may permit a customer to carry an open 18 container of wine from the person’s licensed premises into 19 another immediately adjacent licensed premises that is covered 20 by a license or permit that authorizes the consumption of wine, 21 a temporarily closed public right-of-way, or a private place. 22 Sec. 5. Section 123.30, Code 2025, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 5. a. Notwithstanding any provision of 25 this chapter to the contrary, a person holding a retail alcohol 26 license to sell alcoholic beverages for consumption on the 27 licensed premises may permit a customer to carry an alcoholic 28 beverage in an open container from the licensed premises to any 29 of the following immediately adjacent locations: 30 (1) A licensed premises authorized to sell the same type of 31 alcoholic beverage for consumption on the licensed premises. 32 (2) A temporarily closed public right-of-way. 33 (3) A private place. 34 b. The licensee of the immediately adjacent licensed 35 -2- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 2/ 10

premises, or owner of the immediately adjacent private 1 place, may refuse to allow the customer to enter the licensed 2 premises or private place with an alcoholic beverage in an open 3 container. 4 Sec. 6. Section 123.31, subsection 2, paragraphs b and c, 5 Code 2025, are amended to read as follows: 6 b. That the applicant is a person of good moral character 7 as provided in section 123.3, subsection 40 . This paragraph 8 does not apply if the applicant is the state of Iowa or a state 9 agency as defined in section 669.2. 10 c. That the applicant is a citizen of the state of Iowa 11 or, if a corporation, that the applicant is authorized to do 12 business in the state. This paragraph does not apply if the 13 applicant is the state of Iowa or a state agency as defined in 14 section 669.2. 15 Sec. 7. Section 123.31C, subsection 1, Code 2025, is amended 16 to read as follows: 17 1. A person holding a special class “C” retail native 18 wine license may sell beer and native wine only at retail for 19 consumption on or off the premises. Sales of beer and native 20 wine for consumption off the premises made pursuant to this 21 section shall be made in original containers except as provided 22 in subsection 5 . A sale of a mixed drink or cocktail that does 23 not contain alcoholic liquor may be sold for consumption off 24 the premises subject to the requirements of section 123.49, 25 subsection 2, paragraph “d” . 26 Sec. 8. Section 123.43, subsection 2, paragraphs b and c, 27 Code 2025, are amended to read as follows: 28 b. That the applicant is a person of good moral character 29 as provided in section 123.3, subsection 40 . This paragraph 30 does not apply if the applicant is the state of Iowa or a state 31 agency as defined in section 669.2. 32 c. That the applicant is a citizen of the state of Iowa 33 or, if a corporation, that the applicant is authorized to do 34 business in the state. This paragraph does not apply if the 35 -3- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 3/ 10

applicant is the state of Iowa or a state agency as defined in 1 section 669.2. 2 Sec. 9. Section 123.43, Code 2025, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 5. For purposes of this section, 5 “premises” , in addition to premises as defined in section 123.3, 6 may include any of the following noncontiguous locations, 7 provided that such noncontiguous locations are approved by the 8 alcohol and tobacco tax and trade bureau of the United States 9 department of the treasury: 10 a. Any number of locations which are only separated from 11 the premises as defined in section 123.3 by public waterways, 12 roads, or carrier rights-of-way. 13 b. Any number of locations in the same general location as 14 the premises as defined in section 123.3. 15 c. An additional warehouse or warehouses, located somewhere 16 other than on the premises as defined in section 123.3 or a 17 location described in paragraph “a” or “b” . 18 Sec. 10. Section 123.49, subsection 2, paragraph d, 19 subparagraphs (2), (3), and (4), Code 2025, are amended to read 20 as follows: 21 (2) Mixed drinks or cocktails mixed on the premises that are 22 not for immediate consumption may be consumed on the licensed 23 premises subject to the requirements of this subparagraph 24 pursuant to rules adopted by the department. as follows: 25 (a) The rules shall provide that the mixed drinks or 26 cocktails shall be stored, for no longer than seventy-two 27 hours, in the shortest period outlined in the minimum standards 28 of the specific ingredients of the mixed drink or cocktail 29 in the rules established by the department of inspections, 30 appeals, and licensing to protect consumers from foodborne 31 illness as described in section 137F.2. A licensee who mixes, 32 stores, and allows the consumption of mixed drinks or cocktails 33 that are not for immediate consumption shall comply with all 34 applicable state and federal food safety laws and regulations. 35 -4- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 4/ 10

(b) A mixed drink or cocktail that is not for immediate 1 consumption shall be mixed, stored, and dispensed on the 2 licensed premises from a labeled container in a quantity 3 that does not exceed three gallons. The rules shall also 4 provide that A mixed drink or cocktail, or portion thereof, 5 not consumed within the time frame outlined in subparagraph 6 division (a) is considered expired and must be destroyed. An 7 expired mixed drink or cocktail shall not be added to an empty 8 container and relabeled or added to another mixed drink or 9 cocktail. 10 (i) A mixed drink or cocktail that is not for immediate 11 consumption shall at all times be in a container compliant with 12 applicable state and federal food safety laws and regulations. 13 The mixed drink or cocktail shall be mixed and remain stored 14 in the same container. The mixed drink or cocktail shall be 15 removed from the stored container to compound and fulfill a 16 mixed drink or cocktail order upon receipt of the order for 17 the mixed drink or cocktail or for transfer into a pourable 18 container. The pourable container shall have affixed a label 19 compliant with subparagraph subdivision (ii) displaying label 20 information identical to that on the container from which the 21 contents were poured. The expiration date and time shall not 22 be extended by the transfer of product to a pourable container. 23 The mixed drink or cocktail may be strained into another 24 container when the mixed drink or cocktail is returned without 25 delay to the labeled container from which it was strained and 26 the container and process are compliant with applicable state 27 and federal food safety laws and regulations. An original 28 container of alcoholic liquor or an original container of wine 29 shall not be used to mix, store, or dispense a mixed drink or 30 cocktail. The mixed drink or cocktail shall not be mixed, 31 stored, or dispensed from a container bearing an alcoholic 32 beverage name brand. A dispensing machine which contains a 33 mixed drink or cocktail is subject to the requirements and 34 restrictions of this subparagraph (2). 35 -5- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 5/ 10

(ii) A label must be placed on a container when the contents 1 of the mixed drink or cocktail are placed into the empty 2 container. The label shall be affixed to the container in a 3 conspicuous place. The label must legibly identify the month, 4 day, year, and time the contents are placed into the empty 5 container. The label must legibly identify the month, day, 6 year, and time the contents expire. The label must legibly 7 specify the title of the recipe used for the contents of the 8 container. The label must legibly identify the person who 9 prepared the contents of the container. The label must legibly 10 identify the size of the batch within the container and be 11 conspicuously marked with the words “CONTAINS ALCOHOL”. The 12 label shall be removed from the container once the entire 13 contents have been consumed, transferred to a pourable 14 container, or destroyed and disposed of in accordance with 15 applicable law. A label shall not be reused, and a removed 16 label shall not be reapplied to a container. A new label shall 17 be placed on the container for each prepared batch of mixed 18 drinks or cocktails that is not for immediate consumption. 19 (iii) A mixed drink or cocktail that is not for immediate 20 consumption shall not include added flavors and other 21 nonbeverage ingredients included in the mixed drinks or 22 cocktails shall not include containing hallucinogenic 23 substances or added caffeine or other added stimulants 24 including but not limited to guarana, ginseng, and taurine. 25 The rules shall also require that the A licensee is limited to 26 utilizing alcoholic beverages in the mixed drink or cocktail 27 that are authorized by the retail alcohol license and obtained 28 as prescribed by this chapter. 29 (iv) The licensee shall keep records as to when the contents 30 in each prepared batch of mixed drinks or cocktails are mixed 31 in a particular container were mixed and the recipe used for 32 that mixture. The records must include the month, day, year, 33 and time the contents are placed into the empty container, 34 each alcoholic beverage, including the brand and the amount 35 -6- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 6/ 10

utilizing the metric system, and each nonalcoholic ingredient 1 placed in the container. The recipe must contain the title 2 and directions for preparing the contents, the identity of the 3 person who prepared the contents of the container, and the 4 size of the batch. The records must include the month, day, 5 year, and time the contents of the container are destroyed 6 and disposed of, the identity of the person who destroyed 7 and disposed of the contents, and the method of destruction 8 and disposal, or a statement that the contents were entirely 9 consumed. Records shall be maintained on the licensed premises 10 for a period of three years and shall be open to inspection 11 pursuant to section 123.33. 12 (c) In addition, mixed drinks or cocktails mixed on the 13 premises pursuant to this subparagraph (2) may be sold for 14 consumption off the licensed premises as provided in and 15 subject to the requirements of subparagraph (3). 16 (3) Mixed drinks or cocktails mixed on premises covered by 17 a class “C” or special class “C” retail alcohol license , or a 18 special class “C” retail native wine license, for consumption 19 off the licensed premises may be sold if the mixed drink or 20 cocktail is immediately filled in a sealed container and is 21 promptly taken from the licensed premises prior to consumption 22 of the mixed drink or cocktail. A mixed drink or cocktail 23 that is sold in a sealed container in compliance with the 24 requirements of this subparagraph and rules adopted by the 25 department shall not be deemed an open container subject to the 26 requirements of sections 321.284 and 321.284A if the sealed 27 container is unopened and the seal has not been tampered with, 28 and the contents of the container have not been partially 29 removed. 30 (4) For purposes of this paragraph: 31 (a) “Immediate consumption” means the compounding and 32 fulfillment of a mixed drink or cocktail order upon receipt of 33 the order for the mixed drink or cocktail. 34 (a) (b) “Sealed container” means a vessel containing a 35 -7- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 7/ 10

mixed drink or cocktail that is designed to prevent consumption 1 without removal of a tamper-evident lid, cap, or seal. “Sealed 2 container” does not include a container with a sipping hole 3 or other opening for a straw, a cup made of plastic that 4 is intended for one-time use, or a cup made of paper or 5 polystyrene foam. 6 (b) (c) “Tamper-evident” means a lid, cap, or seal that 7 visibly demonstrates when a container has been opened. 8 Sec. 11. Section 123.127, subsection 2, paragraphs b and c, 9 Code 2025, are amended to read as follows: 10 b. That the applicant is a person of good moral character 11 as provided in section 123.3, subsection 40 . This paragraph 12 does not apply if the applicant is the state of Iowa or a state 13 agency as defined in section 669.2. 14 c. That the applicant is a citizen of the state of Iowa 15 or, if a corporation, that the applicant is authorized to do 16 business in the state. This paragraph does not apply if the 17 applicant is the state of Iowa or a state agency as defined in 18 section 669.2. 19 Sec. 12. Section 123.127, subsection 2, paragraph g, Code 20 2025, is amended by striking the paragraph. 21 Sec. 13. Section 123.175, subsection 2, paragraphs b and c, 22 Code 2025, are amended to read as follows: 23 b. That the applicant is a person of good moral character 24 as provided in section 123.3, subsection 40 . This paragraph 25 does not apply if the applicant is the state of Iowa or a state 26 agency as defined in section 669.2. 27 c. That the applicant is a citizen of the state of Iowa 28 or, if a corporation, that the applicant is authorized to do 29 business in the state. This paragraph does not apply if the 30 applicant is the state of Iowa or a state agency as defined in 31 section 669.2. 32 Sec. 14. Section 123.175, subsection 2, paragraph g, Code 33 2025, is amended by striking the paragraph. 34 Sec. 15. EFFECTIVE DATE. This division of this Act, being 35 -8- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 8/ 10

deemed of immediate importance, takes effect upon enactment. 1 DIVISION II 2 LICENSE FEE DETERMINATION 3 Sec. 16. Section 123.36, subsection 1, paragraph a, 4 subparagraph (4), Code 2025, is amended to read as follows: 5 (4) For premises located outside the corporate limits of 6 any city, a fee equal to that charged to for a premises with 7 of the same square footage in the nearest incorporated city 8 located nearest the premises to be licensed , as determined by 9 the address assigned by the United States postal service . If 10 there is doubt as to which of two or more differing corporate 11 limits is the nearest, the license fee which is the largest 12 shall prevail. However, if the premises is located in an 13 unincorporated town, for purposes of this paragraph, the 14 unincorporated town shall be treated as if it is a city. 15 Sec. 17. Section 123.36, subsection 1, paragraph c, 16 subparagraph (4), Code 2025, is amended to read as follows: 17 (4) Commercial establishments located outside the corporate 18 limits of any city, a fee equal to that charged in the 19 incorporated city located nearest the premises to be licensed, 20 and in case there is doubt as to which of two or more differing 21 corporate limits is the nearest, the license fee which is the 22 largest shall prevail as determined by the address assigned by 23 the United States postal service . However, if a commercial 24 establishment is located in an unincorporated town, for 25 purposes of this paragraph, the unincorporated town shall be 26 treated as if it is a city. 27 Sec. 18. Section 123.36, subsection 1, paragraph d, 28 subparagraph (4), Code 2025, is amended to read as follows: 29 (4) Commercial establishments located outside the corporate 30 limits of any city, a fee equal to that charged in the 31 incorporated city located nearest the premises to be licensed, 32 and in case there is doubt as to which of two or more differing 33 corporate limits is the nearest, the license fee which is the 34 largest shall prevail as determined by the address assigned by 35 -9- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 9/ 10

the United States postal service . However, if a commercial 1 establishment is located in an unincorporated town, for 2 purposes of this paragraph, the unincorporated town shall be 3 treated as if it is a city. 4 Sec. 19. Section 123.36, subsection 1, paragraph g, 5 subparagraph (4), Code 2025, is amended to read as follows: 6 (4) For premises located outside the corporate limits of 7 any city, a fee equal to that charged to for a premises with 8 of the same square footage in the nearest incorporated city 9 located nearest the premises to be licensed , as determined by 10 the address assigned by the United States postal service . If 11 there is doubt as to which of two or more differing corporate 12 limits is the nearest, the license fee which is the largest 13 shall prevail. However, if the premises is located in an 14 unincorporated town, for purposes of this paragraph, the 15 unincorporated town shall be treated as if it is a city. 16 Sec. 20. APPLICABILITY. This division of this Act applies 17 to licenses issued or renewed on or after November 10, 2025. 18 A license issued prior to that date and in effect on that date 19 shall continue in full force and effect with the authority 20 originally granted by the license until expiration or renewal. > 21 2. Title page, by striking lines 1 through 3 and inserting 22 < An Act relating to alcoholic beverages, including license 23 authorizations, bond requirements, and fee determinations, and 24 including effective date and applicability provisions. > 25 ______________________________ DAVID D. ROWLEY -10- SF 610.1447 (2) 91 (amending this SF 610 to CONFORM to HF 470) jh/ns 10/ 10 #2.