House File 2403 - Introduced HOUSE FILE 2403 BY WILLS A BILL FOR An Act repealing the state monopoly on the importation 1 of alcoholic liquor, and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5994YH (3) 91 jm/ns

H.F. 2403 Section 1. Section 123.10, subsection 13, Code 2026, is 1 amended to read as follows: 2 13. Providing for the issuance of a waiver for an individual 3 of legal age desiring to import alcoholic liquor, wine, or beer 4 in excess of the amount provided in section 123.22, 123.122 , or 5 123.171 , as applicable. The waiver shall be limited to those 6 individuals who were domiciled outside the state within one 7 year of the request for a waiver and shall provide that any 8 alcoholic liquor, wine, or beer imported pursuant to the waiver 9 shall be for personal consumption only in a private home or 10 other private accommodation. 11 Sec. 2. Section 123.26, Code 2026, is amended to read as 12 follows: 13 123.26 Restrictions on sales —— seals —— labeling. 14 Alcoholic liquor shall not be sold by a class “E” retail 15 alcohol licensee except in a sealed container with identifying 16 markers as prescribed by the director and affixed in the manner 17 prescribed by the director, and no such container shall be 18 opened upon the premises of a state warehouse. The department 19 shall cooperate with the department of natural resources so 20 that only one identifying marker or mark is needed to satisfy 21 the requirements of this section and section 455C.5, subsection 22 1 . Possession of alcoholic liquors which do not carry the 23 prescribed identifying markers is a violation of this chapter 24 except as provided in section 123.22 . 25 Sec. 3. Section 123.28, subsection 4, Code 2026, is amended 26 to read as follows: 27 4. This section does not prohibit a private person from 28 transporting individual bottles or containers of alcoholic 29 liquor exempted pursuant to section 123.22 and individual 30 bottles or containers bearing the identifying mark prescribed 31 in section 123.26 which have been opened previous to the 32 commencement of the transportation. 33 Sec. 4. REPEAL. Section 123.22, Code 2026, is repealed. 34 Sec. 5. DEPARTMENT OF REVENUE —— PROPOSED LEGISLATION. The 35 -1- LSB 5994YH (3) 91 jm/ns 1/ 3

H.F. 2403 department of revenue shall review chapter 123 and any 1 associated alcoholic beverage control provisions based on 2 the elimination of the state monopoly on the importation of 3 alcoholic liquor, as enacted by this Act, including but not 4 limited to the department’s powers and duties under law, 5 tax and other financial implications, and administrative 6 implications, and shall submit any proposed legislation 7 pursuant to section 2.16 for consideration by the general 8 assembly during the 2027 regular session of the Ninety-second 9 General Assembly. The proposed legislation must also provide 10 for the disposal of associated warehouses or other state 11 infrastructure determined to be no longer necessary. 12 Sec. 6. EFFECTIVE DATE. 13 1. Except as provided in subsection 2, this Act takes effect 14 July 1, 2027. 15 2. The section of this Act directing the department of 16 revenue to review the implications of this Act and submit 17 proposed legislation, being deemed of immediate importance, 18 takes effect upon enactment. 19 Sec. 7. APPLICABILITY. This Act applies to the importation 20 of alcoholic liquors into the state on or after July 1, 2027. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill repeals the state monopoly on the importation of 25 alcoholic liquor. 26 Currently, the department of revenue (department) has a 27 monopoly on the importation of most forms of alcoholic liquors 28 imported into the state. The bill repeals the department’s 29 monopoly, and instructs the department to review the 30 implications of the repeal and submit any proposed legislation 31 to the general assembly for consideration during the 2027 32 regular session. 33 The bill takes effect July 1, 2027. However, the provision 34 instructing the department to review the implications of the 35 -2- LSB 5994YH (3) 91 jm/ns 2/ 3

H.F. 2403 bill and to submit proposed legislation takes effect upon 1 enactment. 2 The bill applies to the importation of alcoholic liquors 3 into the state on or after July 1, 2027. 4 -3- LSB 5994YH (3) 91 jm/ns 3/ 3