House File 768 - Introduced HOUSE FILE 768 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 60) A BILL FOR An Act concerning licensing of and sales by native 1 distilleries, beer manufacturers, native breweries, and 2 native wine manufacturers. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1864HV (2) 89 je/rn

H.F. 768 Section 1. Section 123.43A, subsection 6, Code 2021, is 1 amended to read as follows: 2 6. Notwithstanding any provision of this chapter to the 3 contrary or the fact that a person is the holder of a class 4 “A” native distilled spirits license, a native distillery 5 which, combining all production facilities of the business, 6 produces and manufactures not more than one hundred thousand 7 proof gallons of native distilled spirits on an annual basis 8 may sell those native distilled spirits manufactured on the 9 premises of the native distillery for consumption on the 10 premises by applying for a class “C” native distilled spirits 11 liquor control license as provided in section 123.30 . A 12 native distillery may be granted not more than one two class 13 “C” native distilled spirits liquor control license licenses . 14 All native distilled spirits sold by a native distillery for 15 on-premises consumption and mixed drinks or cocktails sold 16 for consumption off the premises shall be purchased from a 17 class “E” liquor control licensee. A manufacturer of native 18 distilled spirits may be issued a class “C” native distilled 19 spirits liquor control license regardless of whether the 20 manufacturer is also a manufacturer of beer pursuant to a class 21 “A” beer permit or a manufacturer of native wine pursuant to a 22 class “A” wine permit. 23 Sec. 2. Section 123.45, subsection 3, Code 2021, is amended 24 to read as follows: 25 3. A person engaged in the wholesaling of beer or wine 26 may sell only disposable glassware, which is constructed of 27 paper, paper laminated, or plastic materials and designed 28 primarily for personal consumption on a one-time usage 29 basis, to retailers for use within the premises of licensed 30 establishments, for an amount which is greater than or equal 31 to an amount which represents the greater of either the amount 32 paid for the disposable glassware by the supplier or the amount 33 paid for the disposable glassware by the wholesaler. Also, a 34 person engaged in the business of manufacturing beer may sell 35 -1- LSB 1864HV (2) 89 je/rn 1/ 3

H.F. 768 beer at retail for consumption on or off the premises of the 1 manufacturing facility and, notwithstanding any other provision 2 of this chapter or the fact that a person is the holder of a 3 class “A” beer permit, may be granted not more than one two 4 class “B” beer permit permits as defined in section 123.124 5 for that purpose regardless of whether that person is also a 6 manufacturer of native distilled spirits pursuant to a class 7 “A” native distilled spirits license or a manufacturer of 8 native wine pursuant to a class “A” wine permit. 9 Sec. 3. Section 123.130, subsection 2, Code 2021, is amended 10 to read as follows: 11 2. Pursuant to section 123.45, subsection 3 , a native 12 brewery may be granted not more than one two class “B” beer 13 permit permits as defined in section 123.124 for the purpose of 14 selling beer at retail for consumption on or off the premises 15 of the manufacturing facility. 16 Sec. 4. Section 123.176, subsection 5, Code 2021, is amended 17 to read as follows: 18 5. Notwithstanding any other provision of this chapter , a 19 person engaged in the business of manufacturing native wine 20 may sell native wine at retail for consumption on the premises 21 of the manufacturing facility manufacturer or in a retail 22 establishment operated by the manufacturer by applying for a 23 class “C” native wine permit as provided in section 123.178B . 24 A manufacturer of native wine may be granted not more than 25 one two class “C” native wine permit permits . A manufacturer 26 of native wine may be issued a class “C” native wine permit 27 regardless of whether the manufacturer is also a manufacturer 28 of beer pursuant to a class “A” beer permit or a manufacturer 29 of native distilled spirits pursuant to a class “A” native 30 distilled spirits license. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill authorizes the alcoholic beverages division of the 35 -2- LSB 1864HV (2) 89 je/rn 2/ 3

H.F. 768 department of commerce to grant up to two of each of certain 1 specified licenses or permits to a native distillery, beer 2 manufacturer, native brewery, or native wine manufacturer, 3 rather than the limit of one of each as provided under current 4 law. 5 The bill authorizes a native wine manufacturer to sell 6 native wine at retail for consumption on the premises of the 7 manufacturer or in a retail establishment operated by the 8 manufacturer. Current law allows a manufacturer to sell 9 native wine at retail for consumption on the premises of the 10 manufacturing facility. 11 -3- LSB 1864HV (2) 89 je/rn 3/ 3