House File 478 - Introduced HOUSE FILE 478 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 182) A BILL FOR An Act concerning alcoholic beverage control relating to 1 brewpubs and alternating proprietorship arrangements for 2 beer manufacturers. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1728HV (1) 90 ec/rn

H.F. 478 Section 1. Section 123.30, subsection 3, paragraph b, 1 subparagraph (2), Code 2023, is amended by adding the following 2 new subparagraph division: 3 NEW SUBPARAGRAPH DIVISION . (0d) The holder of a special 4 class “C” retail alcohol license may also hold a special class 5 “A” beer permit for the premises licensed under a special class 6 “C” retail alcohol license for the purpose of operating a 7 brewpub pursuant to this chapter. 8 Sec. 2. Section 123.130, subsection 4, Code 2023, is amended 9 to read as follows: 10 4. a. All special class “A” premises shall be located 11 within the state. A 12 b. Except as provided in paragraph “c” , a person who 13 holds a special class “A” beer permit for the same location 14 at which the person holds a class “C” or special class “C” 15 retail alcohol license for the purpose of operating as a 16 brewpub may manufacture and sell beer to be consumed on the 17 premises, may sell beer at retail at the manufacturing premises 18 for consumption off the premises, may sell beer to a class 19 “A” beer permittee for resale purposes, and may sell beer to 20 distributors outside of the state that are authorized by the 21 laws of that jurisdiction to sell beer at wholesale. 22 c. A person who holds a special class “A” beer permit 23 for the same location at which the person holds a class 24 “C” or special class “C” retail alcohol license for the 25 purpose of operating as a brewpub may manufacture beer under 26 an alternating proprietorship arrangement as provided in 27 subsection 4A. However, the person may not sell beer to be 28 consumed on the premises where manufactured or sell beer at 29 retail for consumption off the premises where manufactured 30 unless the person is also the holder of a class “C” or special 31 class “C” retail alcohol license issued for the premises of the 32 alternating proprietorship whose space and equipment is being 33 used for the purpose of manufacturing beer. 34 d. The permit issued to holders of a special class “A” 35 -1- LSB 1728HV (1) 90 ec/rn 1/ 3

H.F. 478 beer permit shall clearly state on its face that the permit is 1 limited. 2 Sec. 3. Section 123.130, Code 2023, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 4A. a. For purposes of this subsection, 5 “manufacturer” includes only those persons who hold a class “A” 6 or special class “A” beer permit and manufacture beer in Iowa. 7 b. Notwithstanding any provision of law to the contrary, 8 a manufacturer may use the space and equipment of another 9 manufacturer for the purpose of manufacturing beer, provided 10 that such an alternating proprietorship arrangement has been 11 approved by the alcohol and tobacco tax and trade bureau of the 12 United States department of the treasury. A separate class 13 “A” or special class “A” beer permit shall be issued to each 14 manufacturer, and each manufacturer shall be subject to the 15 provisions of this chapter and the rules of the division. 16 c. Notwithstanding any provision of law to the contrary, 17 not more than one class “C” retail alcohol license or special 18 class “C” retail license shall be issued to a premises with 19 alternating proprietorships as authorized by this subsection. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill concerns alcoholic beverage control relating to 24 brewpubs and alternating proprietorship arrangements for beer 25 manufacturers. 26 Code section 123.30, concerning retail alcohol license 27 classifications, is amended to provide that a holder of a 28 special class “C” retail alcohol license may also hold a 29 special class “A” beer permit for purposes of operating a 30 brewpub. 31 The bill allows a manufacturer of beer in Iowa to use the 32 space and equipment of another manufacturer of beer in Iowa for 33 the purpose of manufacturing beer pursuant to an alternating 34 proprietorship arrangement that is approved by the alcohol and 35 -2- LSB 1728HV (1) 90 ec/rn 2/ 3

H.F. 478 tobacco tax and trade bureau of the United States department 1 of the treasury. The bill provides that no more than one 2 class “C” or special class “C” retail alcohol license shall 3 be issued to a premises with alternating proprietorships for 4 beer. In addition, the bill provides that a person who holds 5 a special class “A” beer permit and manufactures beer under 6 an alternative proprietorship arrangement under the bill may 7 only sell beer for consumption on or off the premises where 8 manufactured if that person is also a holder of a class “C” 9 or special class “C” retail alcohol license issued for the 10 premises where manufactured. 11 -3- LSB 1728HV (1) 90 ec/rn 3/ 3