House Study Bill 540 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to prohibited conduct of a brewer with regard 1 to wholesaler agreements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5739YC (1) 90 nls/ns

H.F. _____ Section 1. Section 123A.5, subsection 1, paragraph b, Code 1 2024, is amended to read as follows: 2 b. Require a wholesaler to assent to any unreasonable 3 requirement, condition, understanding, or term of an agreement 4 prohibiting a wholesaler from selling the product of another 5 brewer , or prohibiting a wholesaler from utilizing, or 6 requiring a wholesaler to utilize, a business-to-business 7 electronic commerce platform offered by a brewer . 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill prohibits a brewer from requiring a wholesaler 12 to assent to any unreasonable requirement, condition, 13 understanding, or term of an agreement prohibiting the 14 wholesaler from utilizing, or requiring the wholesaler to 15 utilize, a business-to-business electronic commerce platform 16 offered by a brewer. A brewer that violates the provisions 17 of the bill is subject to civil action by the aggrieved party 18 pursuant to Code section 123A.9. 19 -1- LSB 5739YC (1) 90 nls/ns 1/ 1