H.F. _____ 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 b, Code 7 2023, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (3) A special class “C” retail native 9 wine license shall authorize the holder to sell native wine as 10 provided in section 123.31C. 11 Sec. 3. NEW SECTION . 123.31C Authority under special class 12 “C” retail native wine license. 13 1. A person holding a special class “C” retail native wine 14 license may sell native wine only at retail for consumption 15 on or off the premises. Sales of wine for consumption off 16 the premises made pursuant to this section shall be made in 17 original containers except as provided in subsection 5. 18 2. A special class “C” retail native wine licensee having 19 more than one place of business where wine is sold and served 20 shall obtain a separate permit for each place of business. 21 3. A person holding a special class “C” retail native wine 22 license may purchase wine for resale only from a native winery 23 holding a class “A” wine permit. 24 4. Subject to the rules of the division, sales made pursuant 25 to this section may be made in a container other than the 26 original container only if all of the following requirements 27 are met: 28 a. The wine is transferred from the original container to 29 the container to be sold on the licensed premises at the time 30 of sale or when sold by telephonic or other electronic means. 31 b. The person transferring the wine from the original 32 container to the container to be sold shall be eighteen years 33 of age or more. 34 c. The container to be sold shall be no larger than 35 -1- LSB 1854YC (2) 90 ec/rn 1/ 3

H.F. _____ seventy-two ounces. 1 d. The container to be sold shall be securely sealed by a 2 method authorized by the division that is designed so that if 3 the sealed container is reopened or the seal tampered with, it 4 is visibly apparent that the seal on the container of wine has 5 been tampered with or the sealed container has otherwise been 6 reopened. 7 5. A container of wine other than the original container 8 that is sold and sealed in compliance with the requirements of 9 subsection 4 and the rules of the division shall not be deemed 10 an open container subject to the requirements of sections 11 321.284 and 321.284A if the sealed container is unopened and 12 the seal has not been tampered with, and the contents of the 13 container have not been partially removed. 14 Sec. 4. Section 123.36, subsection 1, Code 2023, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . 0e. Special class “C” retail native wine 17 license fees shall be one hundred twenty-five dollars. 18 Sec. 5. Section 123.176, subsection 5, Code 2023, is amended 19 to read as follows: 20 5. Notwithstanding any other provision of this chapter , a 21 person engaged in the business of manufacturing native wine 22 may be granted a class “C” retail alcohol license or special 23 class “C” retail native wine license as defined in section 24 123.30 . A manufacturer of native wine may be granted not more 25 than two class “C” retail alcohol licenses or special class “C” 26 retail native wine licenses . A manufacturer of native wine 27 may be issued a class “C” retail alcohol license or special 28 class “C” retail native wine license regardless of whether the 29 manufacturer is also a manufacturer of beer pursuant to a class 30 “A” beer permit or a manufacturer of native distilled spirits 31 pursuant to a class “A” native distilled spirits license. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 1854YC (2) 90 ec/rn 2/ 3

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