Senate File 2469 S-5211 Amend Senate File 2469 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 123.3, subsection 40, paragraph c, Code 4 2026, is amended to read as follows: 5 c. Notwithstanding paragraph “e” , the applicant is a citizen 6 of the United States and a resident of this state, or licensed 7 to do business in this state in the case of a corporation. 8 Notwithstanding paragraph “e” , in the case of a partnership, 9 only one general partner need be a resident of this state. The 10 residency requirements of this paragraph do not apply to an 11 applicant for a class “A” wine permit issued to a nonnative 12 wine manufacturer pursuant to section 123.176A. 13 Sec. 2. Section 123.23, subsection 1, Code 2026, is amended 14 to read as follows: 15 1. Any manufacturer, distiller, or importer of alcoholic 16 liquors shipping, selling, or having alcoholic liquors brought 17 into this state for resale by the state department shall, as 18 a condition precedent to the privilege of so trafficking in 19 alcoholic liquors in this state, annually make application for 20 and hold a distiller’s certificate of compliance which shall 21 be issued by the director for that purpose. No A brand of 22 alcoholic liquor brought into this state shall not be sold 23 by the department in this state unless the manufacturer, 24 distiller, or importer , and all other persons participating 25 in the distribution of that brand in this state have has 26 obtained a certificate. The certificate of compliance shall 27 expire at the end of one year from the date of issuance and 28 shall be renewed for a like period upon application to the 29 director unless otherwise suspended or revoked for cause. 30 Each completed application for a certificate of compliance 31 or renewal shall be submitted electronically, or in a manner 32 prescribed by the director, and shall be accompanied by a fee 33 of two hundred dollars payable to the department. However, 34 this subsection need not apply to a manufacturer, distiller, or 35 -1- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 1/ 9 #1.

importer who ships or sells in this state no more than eleven 1 gallons or its case equivalent during any fiscal year as a 2 result of “special orders” which might be placed, as defined 3 and allowed by departmental rules adopted under this chapter . 4 Sec. 3. Section 123.23, subsection 5, Code 2026, is amended 5 by striking the subsection. 6 Sec. 4. Section 123.30, subsection 5, paragraph a, Code 7 2026, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (4) A social district, if the holder of 9 the retail alcohol license is a participating licensee within a 10 social district and in compliance with the ordinance adopted 11 under section 414.34. 12 Sec. 5. Section 123.46, subsection 2, Code 2026, is amended 13 to read as follows: 14 2. a. A person shall not use or consume alcoholic liquor, 15 wine, or beer upon the public streets or highways. A person 16 shall not use or consume alcoholic liquor in any public 17 place except premises covered by a retail alcohol license. 18 A person shall not possess or consume alcoholic liquors, 19 wine, or beer on public school property or while attending a 20 public or private school-related function. A person shall not 21 be intoxicated in a public place. A person violating this 22 subsection is guilty of a simple misdemeanor. 23 b. Notwithstanding paragraph “a” , a person may possess 24 or consume alcoholic liquor, wine, or beer upon the public 25 streets, highways, or public places within a social district 26 if the possession or consumption complies with the ordinance 27 adopted under section 414.34. 28 Sec. 6. Section 123.135, subsections 1, 2, and 3, Code 2026, 29 are amended to read as follows: 30 1. A manufacturer, brewer, bottler, importer, or vendor 31 of beer, or any agent thereof, desiring to ship or sell beer, 32 or have beer brought into this state for resale by a class 33 “A” beer permittee, shall first make application for and be 34 issued a brewer’s certificate of compliance by the director 35 -2- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 2/ 9

for that purpose. The certificate of compliance expires at 1 the end of one year from the date of issuance and shall be 2 renewed for a like period upon application to the director 3 unless otherwise revoked for cause. Each completed application 4 for a certificate of compliance or renewal of a certificate 5 shall be submitted electronically, or in a manner prescribed 6 by the director, and shall be accompanied by a fee of two 7 hundred dollars payable to the department. Each holder of a 8 certificate of compliance shall furnish the information in 9 a manner the director requires. The holder of a brewer’s 10 certificate of compliance may also hold a class “A” beer 11 permit. 12 2. At the time of applying for a certificate of compliance, 13 each applicant shall file with the department electronically, 14 or in a manner prescribed by the director, a list of all class 15 “A” beer permittees with whom it intends to do business and 16 shall designate a designation of the geographic area in which 17 its products are to be distributed by such permittee. The 18 listing of class “A” beer permittees and geographic area as 19 filed with the department shall be amended by the holder of 20 a certificate of compliance as necessary to keep the listing 21 current with the department. 22 3. All class “A” beer permit holders shall sell only those 23 brands of beer brought into the state which are manufactured, 24 brewed, bottled, shipped, or imported by a person holding a 25 current certificate of compliance. Any employee or agent 26 working for or representing the holder of a certificate of 27 compliance within this state shall submit electronically, or in 28 a manner prescribed by the director, the employee’s or agent’s 29 name and address with the department. 30 Sec. 7. Section 123.173, subsection 2, Code 2026, is amended 31 to read as follows: 32 2. A class “A” wine permit allows the holder to manufacture 33 and sell, or sell at wholesale, in this state, wine. The 34 holder of a class “A” wine permit may manufacture in this state 35 -3- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 3/ 9

wine having an alcoholic content greater than seventeen percent 1 by weight or twenty-one and twenty-five hundredths percent of 2 alcohol by volume for shipment outside this state. All Except 3 as provided in section 123.176A, all class “A” premises shall 4 be located within the state. 5 Sec. 8. Section 123.175, subsection 2, paragraph c, Code 6 2026, is amended to read as follows: 7 c. That the applicant is a citizen resident of the state 8 of Iowa or, if a corporation, that the applicant is authorized 9 to do business in the state. This paragraph does not apply if 10 the applicant is the state of Iowa or a state agency as defined 11 in section 669.2 . The residency requirement of this paragraph 12 does not apply to a nonnative wine manufacturer under section 13 123.176A. 14 Sec. 9. NEW SECTION . 123.176A Nonnative wine manufacturers. 15 1. As used in this section, “nonnative wine manufacturer” 16 means a person who processes the fruit, vegetables, dandelions, 17 clover, honey, or any combination of these ingredients, by 18 fermentation into wines on a premises located outside of this 19 state. 20 2. A nonnative wine manufacturer licensed or permitted 21 pursuant to laws regulating alcoholic beverages in another 22 state may apply for and be issued a class “A” wine permit, as 23 provided in section 123.175, without being a resident of this 24 state. 25 3. A nonnative wine manufacturer holding a class “A” wine 26 permit may sell, or sell at wholesale, in this state, wine 27 that the nonnative wine manufacturer has itself manufactured 28 by fermentation on its out-of-state licensed or permitted 29 premises, provided the wine is properly registered with the 30 alcohol and tobacco tax and trade bureau of the United States 31 department of the treasury. Pursuant to section 123.177, such 32 sales shall only be made to persons holding a class “A” wine 33 permit or to persons holding a retail alcohol license. 34 4. A nonnative wine manufacturer shall not sell in this 35 -4- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 4/ 9

state wine fermented by another manufacturer. 1 5. A nonnative wine manufacturer may ship wine in closed 2 containers to individual purchasers within this state by 3 obtaining a wine direct shipper permit pursuant to section 4 123.187. 5 6. A nonnative wine manufacturer that holds a class “A” wine 6 permit shall be deemed to have consented to the jurisdiction 7 of the department or any other agency or court in this state 8 concerning enforcement of this chapter and any related laws, 9 rules, or regulations. A permit holder shall allow the 10 department to perform an audit of manufacturing and sales 11 records upon request. 12 7. A violation of this section shall subject the permit 13 holder to the general penalties provided in this chapter and 14 shall constitute grounds for imposition of a civil penalty or 15 suspension or revocation of the permit pursuant to section 16 123.39. 17 Sec. 10. Section 123.177, subsection 2, Code 2026, is 18 amended to read as follows: 19 2. A class “A” wine permit holder may purchase and resell 20 only those brands of wine brought into the state which are 21 manufactured, fermented, bottled, shipped, or imported by a 22 person holding a certificate of compliance issued pursuant to 23 section 123.180 . 24 Sec. 11. Section 123.179, Code 2026, is amended to read as 25 follows: 26 123.179 Wine permit and license fees. 27 1. The annual permit fee for a class “A” wine permit that 28 is not issued to a native wine manufacturer is seven hundred 29 fifty dollars , except the annual permit fee for a class “A” 30 wine permit issued to a native wine manufacturer as provided in 31 section 123.176 or a nonnative wine manufacturer as provided in 32 section 123.176A is one hundred dollars . 33 2. The annual permit fee for a class “A” wine permit issued 34 to a native wine manufacturer is one hundred dollars. 35 -5- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 5/ 9

3. 2. The fee for a charity beer, spirits, and wine special 1 event license is one hundred dollars. 2 4. 3. The fee for a wine auction permit is one hundred 3 dollars. 4 Sec. 12. Section 123.180, subsections 1, 2, and 3, Code 5 2026, are amended to read as follows: 6 1. A manufacturer, vintner, bottler, importer, or vendor 7 of wine, or an agent thereof, desiring to ship, sell, or have 8 wine brought into this state for sale at wholesale resale by 9 a class “A” wine permittee shall first make application for 10 and shall be issued a vintner’s certificate of compliance by 11 the director for that purpose. The vintner’s certificate 12 of compliance shall expire at the end of one year from the 13 date of issuance and shall be renewed for a like period upon 14 application to the director unless otherwise revoked for 15 cause. Each completed application for a vintner’s certificate 16 of compliance or renewal of a certificate shall be submitted 17 electronically, or in a manner prescribed by the director, and 18 shall be accompanied by a fee of two hundred dollars payable 19 to the department. Each holder of a vintner’s certificate 20 of compliance shall furnish the information required by the 21 director in the form the director requires. A vintner or wine 22 bottler whose plant is located in Iowa and who otherwise holds 23 a class “A” wine permit to sell wine at wholesale is exempt 24 from the fee, but not the other terms and conditions. The 25 holder of a vintner’s certificate of compliance may also hold a 26 class “A” wine permit. 27 2. At the time of applying for a vintner’s certificate 28 of compliance, each applicant shall file with the department 29 electronically, or in a manner prescribed by the director, a 30 list of all class “A” wine permittees with whom it intends 31 to do business. The listing of class “A” wine permittees as 32 filed with the department shall be amended by the holder of 33 the certificate of compliance as necessary to keep the listing 34 current with the department. 35 -6- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 6/ 9

3. a. Except as provided in paragraph “b” , all class 1 “A” wine permit holders shall sell only those brands of 2 wine brought into the state which are manufactured, bottled, 3 fermented, shipped, or imported by a person holding a 4 current vintner’s certificate of compliance. An employee or 5 agent working for or representing the holder of a vintner’s 6 certificate of compliance within this state shall register the 7 employee’s or agent’s name and address with the department 8 electronically, or register in a manner prescribed by the 9 director . These names and addresses shall be filed with the 10 department’s copy of the certificate of compliance issued 11 except that this provision does not require the listing of 12 those persons who are employed on the premises of a bottling 13 plant, or winery where wine is manufactured, fermented, 14 or bottled in Iowa or the listing of those persons who are 15 thereafter engaged in the transporting of the wine. 16 b. A class “A” wine permit holder may sell brands of wine 17 brought into the state which are not manufactured, bottled, 18 fermented, shipped, or imported by a person holding a current 19 vintner’s certificate of compliance if the brands of wine were 20 purchased from a private sale pursuant to section 123.171, 21 subsection 4 , or if authorized by the laws of another state. 22 Sec. 13. NEW SECTION . 414.34 Social districts. 23 1. As used in this section: 24 a. “Marked container” means a nonglass container that 25 identifies the retail alcohol licensee providing the alcoholic 26 liquor, beer, or wine in the container to the consumer within 27 the social district. 28 b. “Retail alcohol licensee” means the holder of a class “C” 29 or special class “C” license issued under section 123.30. 30 c. “Social district” means a defined area in which the 31 possession and consumption of alcoholic liquor, wine, and 32 beer is allowed on public streets, sidewalks, and other 33 public spaces within the boundaries of the district that are 34 consistent with this section. 35 -7- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 7/ 9

2. A city may define an area by ordinance that designates a 1 social district for use by retail alcohol licensees. 2 3. An ordinance adopted pursuant to this section must 3 include all of the following: 4 a. A legal description or map of the district. 5 b. The days and hours the possession and consumption of 6 alcoholic liquor, wine, and beer are permitted on public 7 streets, sidewalks, and other public places within the 8 district. 9 c. Requirements for marked container use and identification. 10 d. Participation requirements for retail alcohol licensees 11 within the district. 12 e. Enforcement provisions and penalties for violations. 13 f. Procedures for the revocation or suspension of all of the 14 following: 15 (1) The participation of retail alcohol licensees for 16 violations. 17 (2) The social district itself for public safety concerns 18 or other matters. 19 4. An ordinance adopted by a city shall not be construed to 20 authorize any of the following: 21 a. Consumption of an alcoholic beverage in a motor vehicle 22 or on the public streets, sidewalks, and other public spaces 23 during the times when the ordinance is not in effect. 24 b. Possession or consumption of an alcoholic beverage in 25 a manner contrary to the provisions of chapter 123 except as 26 otherwise provided by an ordinance adopted pursuant to this 27 section. 28 c. A prohibition on any participating retail alcohol 29 licensee or other establishment located within the social 30 district from denying entry to the premises of the licensee or 31 establishment to persons who possess alcoholic beverages from 32 other participating retail alcohol licensees. > 33 2. Title page, by striking lines 1 through 4 and inserting 34 < An Act relating to alcoholic beverage control by providing 35 -8- SF 2469.4201 (1) 91 (amending this SF 2469 to CONFORM to HF 2780) jm/ns 8/ 9