H.F. 458 Section 1. Section 123.3, subsection 45, Code 2023, is 1 amended to read as follows: 2 45. “Retail alcohol license” means a class “B”, class “C”, 3 special class “C”, class “D”, class “E”, or class “F” retail 4 alcohol license, or a special class “B” or special class “C” 5 retail native wine license issued under this chapter . 6 Sec. 2. Section 123.30, subsection 3, paragraph a, 7 subparagraph (1), subparagraph division (c), Code 2023, is 8 amended to read as follows: 9 (c) The holder of a class “B” retail alcohol license may 10 sell beer to class “C”, special class “C”, special class “C” 11 retail native license, class “D”, and class “F” retail alcohol 12 licensees for resale for consumption on the premises. Such 13 beer sales shall be in quantities of not more than five cases 14 of beer, high alcoholic content beer, and canned cocktails, 15 but not more than one such sale shall be made to the same 16 retail alcohol licensee in a twenty-four-hour period. A class 17 “A” beer permittee shall be held harmless concerning any beer 18 resold as authorized by this subparagraph division. 19 Sec. 3. Section 123.30, subsection 3, paragraph b, Code 20 2023, is amended by adding the following new subparagraph: 21 NEW SUBPARAGRAPH . (3) A special class “C” retail native 22 wine license shall authorize the holder to sell beer and native 23 wine as provided in section 123.31C. 24 Sec. 4. Section 123.30, subsection 3, paragraph d, 25 subparagraph (4), Code 2023, is amended to read as follows: 26 (4) The holder of a class “E” retail alcohol license may 27 sell beer to class “C”, special class “C”, special class “C” 28 retail native license, class “D”, and class “F” retail alcohol 29 licensees for resale for consumption on the premises. Such 30 beer sales shall be in quantities of not more than five cases 31 of beer, high alcoholic content beer, and canned cocktails, 32 but not more than one such sale shall be made to the same 33 retail alcohol licensee in a twenty-four-hour period. A class 34 “A” beer permittee shall be held harmless concerning any beer 35 -1- LSB 1854HV (2) 90 ec/rn 1/ 4

H.F. 458 resold as authorized by this subparagraph. 1 Sec. 5. NEW SECTION . 123.31C Authority under special class 2 “C” retail native wine license. 3 1. A person holding a special class “C” retail native 4 wine license may sell beer and native wine only at retail for 5 consumption on or off the premises. Sales of beer and native 6 wine for consumption off the premises made pursuant to this 7 section shall be made in original containers except as provided 8 in subsection 5. 9 2. A special class “C” retail native wine licensee having 10 more than one place of business where wine is sold and served 11 shall obtain a separate permit for each place of business. 12 3. A person holding a special class “C” retail native wine 13 license may purchase wine for resale only from a native winery 14 holding a class “A” wine permit. 15 4. A person holding a special class “C” retail native wine 16 license may purchase beer as follows: 17 a. From class “A” beer permittees. 18 b. From class “B” retail alcohol licensees or class “E” 19 retail alcohol licensees in quantities of not more than 20 five cases of beer, high alcoholic content beer, and canned 21 cocktails, but not more than one such purchase shall be made by 22 the licensee in a twenty-four-hour period. A class “A” beer 23 permittee shall be held harmless concerning any beer resold as 24 authorized by this subsection. 25 5. Subject to the rules of the division, sales made pursuant 26 to this section may be made in a container other than the 27 original container only if all of the following requirements 28 are met: 29 a. The beer or native wine is transferred from the original 30 container to the container to be sold on the licensed premises 31 at the time of sale or when sold by telephonic or other 32 electronic means. 33 b. The person transferring the beer or native wine from 34 the original container to the container to be sold shall be 35 -2- LSB 1854HV (2) 90 ec/rn 2/ 4

H.F. 458 eighteen years of age or more. 1 c. The container to be sold shall be no larger than 2 seventy-two ounces. 3 d. The container to be sold shall be securely sealed by a 4 method authorized by the division that is designed so that if 5 the sealed container is reopened or the seal tampered with, it 6 is visibly apparent that the seal on the container of beer or 7 native wine has been tampered with or the sealed container has 8 otherwise been reopened. 9 6. A container of beer or native wine other than the 10 original container that is sold and sealed in compliance 11 with the requirements of subsection 5 and the rules of the 12 division shall not be deemed an open container subject to the 13 requirements of sections 321.284 and 321.284A if the sealed 14 container is unopened and the seal has not been tampered with, 15 and the contents of the container have not been partially 16 removed. 17 Sec. 6. Section 123.36, subsection 1, Code 2023, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . 0e. Special class “C” retail native wine 20 license fees shall be one hundred twenty-five dollars. 21 Sec. 7. Section 123.176, subsection 5, Code 2023, is amended 22 to read as follows: 23 5. Notwithstanding any other provision of this chapter , a 24 person engaged in the business of manufacturing native wine 25 may be granted a class “C” retail alcohol license or special 26 class “C” retail native wine license as defined in section 27 123.30 . A manufacturer of native wine may be granted not more 28 than two class “C” retail alcohol licenses or special class “C” 29 retail native wine licenses . A manufacturer of native wine 30 may be issued a class “C” retail alcohol license or special 31 class “C” retail native wine license regardless of whether the 32 manufacturer is also a manufacturer of beer pursuant to a class 33 “A” beer permit or a manufacturer of native distilled spirits 34 pursuant to a class “A” native distilled spirits license. 35 -3- LSB 1854HV (2) 90 ec/rn 3/ 4

H.F. 458 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill creates a new special class “C” retail native 4 wine license which can be obtained by a person engaged in the 5 business of manufacturing native wine. The license authorizes 6 the holder to sell native wine purchased from a native winery 7 holding a class “A” wine permit and beer from class “A” beer 8 permittees and class “B” and class “E” retail alcohol licensees 9 only at retail for consumption on or off the premises. A 10 person holding the new special class “C” retail native wine 11 license is also allowed to make sales of native wine in a 12 container other than the original container only if certain 13 requirements related to transferring the wine and sealing the 14 container are met. A container of beer or native wine that is 15 sold and sealed in compliance with the requirements of the bill 16 shall not be deemed an open container. The fee for the new 17 license is $125. 18 The bill authorizes a person engaged in the business of 19 manufacturing wine to be granted not more than two special 20 class “C” retail native wine licenses. Current law provides 21 that a person engaged in the business of manufacturing wine may 22 only be granted up to two class “C” retail alcohol licenses. 23 A class “C” retail alcohol license authorizes the holder to 24 purchase and sell alcoholic liquor, wine, and beer. 25 -4- LSB 1854HV (2) 90 ec/rn 4/ 4