House File 2325 - Introduced HOUSE FILE 2325 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HF 2074) A BILL FOR An Act permitting a city to create social districts allowing 1 for the possession or consumption of alcoholic beverages in 2 certain public places. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5587HV (2) 91 jm/ns

H.F. 2325 Section 1. Section 123.30, subsection 5, paragraph a, Code 1 2026, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (4) A social district, if the holder of 3 the retail alcohol license is a participating licensee within a 4 social district and in compliance with the ordinance adopted 5 under section 414.34. 6 Sec. 2. Section 123.46, subsection 2, Code 2026, is amended 7 to read as follows: 8 2. a. A person shall not use or consume alcoholic liquor, 9 wine, or beer upon the public streets or highways. A person 10 shall not use or consume alcoholic liquor in any public 11 place except premises covered by a retail alcohol license. 12 A person shall not possess or consume alcoholic liquors, 13 wine, or beer on public school property or while attending a 14 public or private school-related function. A person shall not 15 be intoxicated in a public place. A person violating this 16 subsection is guilty of a simple misdemeanor. 17 b. Notwithstanding paragraph “a” , a person may possess 18 or consume alcoholic liquor, wine, or beer upon the public 19 streets, highways, or public places within a social district 20 if the possession or consumption complies with the ordinance 21 adopted under section 414.34. 22 Sec. 3. NEW SECTION . 414.34 Social districts. 23 1. As used in this section: 24 a. “Marked container” means a nonglass container that 25 identifies the retail alcohol licensee providing the alcoholic 26 liquor, beer, or wine in the container to the consumer within 27 the social district. 28 b. “Retail alcohol licensee” means the holder of a class “C” 29 or special class “C” license issued under section 123.30. 30 c. “Social district” means a defined area in which the 31 possession and consumption of alcoholic liquor, wine, and 32 beer is allowed on public streets, sidewalks, and other 33 public spaces within the boundaries of the district that are 34 consistent with this section. 35 -1- LSB 5587HV (2) 91 jm/ns 1/ 3

H.F. 2325 2. A city may define an area by ordinance that designates a 1 social district for use by retail alcohol licensees. 2 3. An ordinance adopted pursuant to this section must 3 include all of the following: 4 a. A legal description or map of the district. 5 b. The days and hours the possession and consumption of 6 alcoholic liquor, wine, and beer are permitted on public 7 streets, sidewalks, and other public places within the 8 district. 9 c. Requirements for marked container use and identification. 10 d. Participation requirements for retail alcohol licensees 11 within the district. 12 e. Enforcement provisions and penalties for violations. 13 f. Procedures for the revocation or suspension of all of the 14 following: 15 (1) The participation of retail alcohol licensees for 16 violations. 17 (2) The social district itself for public safety concerns 18 or other matters. 19 4. An ordinance adopted by a city shall not be construed to 20 authorize any of the following: 21 a. Consumption of an alcoholic beverage in a motor vehicle 22 or on the public streets, sidewalks, and other public spaces 23 during the times when the ordinance is not in effect. 24 b. Possession or consumption of an alcoholic beverage in 25 a manner contrary to the provisions of chapter 123 except as 26 otherwise provided by an ordinance adopted pursuant to this 27 section. 28 c. A prohibition on any participating retail alcohol 29 licensee or other establishment located within the social 30 district from denying entry to the premises of the licensee or 31 establishment to persons who possess alcoholic beverages from 32 other participating retail alcohol licensees. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5587HV (2) 91 jm/ns 2/ 3

H.F. 2325 the explanation’s substance by the members of the general assembly. 1 This bill permits a city to create social districts 2 (district) allowing for the possession or consumption of 3 alcoholic beverages in certain public places. 4 A city may define by ordinance an area which may be used 5 by holders of class “C” or special class “C” retail alcohol 6 licenses in a district. A class “C” license allows commercial 7 establishments like bars and restaurants to sell alcoholic 8 liquor, wine, and beer, and a special class “C” license allows 9 such establishments to sell just wine and beer. 10 The bill defines a “district” to mean a defined area that 11 allows for the possession and consumption of alcoholic liquor, 12 wine, and beer on public roadways, sidewalks, and other public 13 spaces within the boundaries of the district. 14 An ordinance adopted pursuant to the bill is required to 15 include the following: (1) a legal description or map of the 16 district, (2) the days and hours the possession and consumption 17 of alcoholic beverages is permitted, (3) the requirements for 18 containers containing alcoholic beverages consumed in the 19 district and the use of such containers, (4) the requirements 20 for retail alcohol licensees participating in the district, 21 (5) enforcement provisions, and (6) revocation and suspension 22 provisions for the retail alcohol licensees and the district. 23 The bill specifies an ordinance shall not be construed to 24 authorize the consumption of alcoholic beverages in a motor 25 vehicle or on public streets, sidewalks, and other public 26 spaces during the times when the ordinance is not in effect; 27 authorize the possession or consumption of alcoholic beverages 28 in a manner contrary to the provisions of Code chapter 123 29 (alcohol beverage control); or prohibit a participating retail 30 alcohol licensee in the district or other establishment in the 31 district from denying entry to persons who possess alcohol from 32 other participating retail alcohol licensees in the district. 33 -3- LSB 5587HV (2) 91 jm/ns 3/ 3