HSB 298 (LSB 2931YC (1) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE)

A BILL FOR

An Act concerning alcoholic beverage control.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.30, subsection 4, Code 2025, is amended to read as follows:
   4.  Notwithstanding any provision of this chapter to the contrary, a person holding a retail alcohol license to sell alcoholic beverages for consumption on the licensed premises may permit a customer to remove one unsealed bottle of wine for consumption off the premises if the customer has purchased and consumed a portion of the bottle of wine on the licensed premises. The licensee or the licensee’s agent shall securely reseal such bottle in a bag designed so that it is visibly apparent that the resealed bottle of wine has not been tampered with and provide a dated receipt for the resealed bottle of wine to the customer. A wine bottle resealed pursuant to the requirements of this subsection is subject to the requirements of sections 321.284 and 321.284A. A person holding a retail alcohol license to sell alcoholic beverages for consumption on the licensed premises may permit a customer to carry an open container of wine from the person’s licensed premises into another immediately adjacent licensed premises that is covered by a license or permit that authorizes the consumption of wine, a temporarily closed public right-of-way, or a private place.
    Sec. 2.  Section 123.30, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  Notwithstanding any provision of this chapter to the contrary, a person holding a retail alcohol license to sell alcoholic beverages for consumption on the licensed premises may permit a customer to carry an alcoholic beverage in an open container from the licensed premises to any of the following immediately adjacent locations:
   (1)  A licensed premises authorized to sell the same type of alcoholic beverage for consumption on the licensed premises.
   (2)  A temporarily closed public right-of-way.
   (3)  A private place.
   b.  The licensee of the immediately adjacent licensed premises, or owner of the immediately adjacent private place, may refuse to allow the customer to enter the licensed premises or private place with an alcoholic beverage in an open container.
    Sec. 3.  Section 123.43A, subsection 6, paragraph a, Code 2025, is amended to read as follows:
   a.  Notwithstanding any provision of this chapter to the contrary or the fact that a person is the holder of a class “A” native distilled spirits license, a native distillery may be granted a class “C” retail alcohol license as defined in section 123.30 for the same premises licensed under a class “A” native distilled spirits license where the manufacturing of native distilled spirits occurs. A native distillery may be granted not more than two three class “C” retail alcohol licenses. A native distillery may be issued a class “C” retail alcohol license regardless of whether the native distillery is also a manufacturer of beer pursuant to a class “A” beer permit or a manufacturer of native wine pursuant to a class “A” wine permit.
    Sec. 4.  Section 123.45, subsection 3, paragraph b, Code 2025, is amended to read as follows:
   b.  Notwithstanding any other provision of this chapter or the fact that a person is the holder of a class “A” beer permit, a native brewery may be granted a class “C” retail alcohol license or a special class “C” retail alcohol license, both as defined in section 123.30, for the same premises licensed under a class “A” beer permit where the manufacturing of beer occurs. A native brewery may be granted not more than two three class “C” retail alcohol licenses or two special class “C” retail alcohol licenses. A native brewery may be issued a class “C” retail alcohol license or a special class “C” retail alcohol license regardless of whether that person is also a manufacturer of native distilled spirits pursuant to a class “A” native distilled spirits license or a manufacturer of native wine pursuant to a class “A” wine permit.
    Sec. 5.  Section 123.130, subsection 1, paragraph a, Code 2025, is amended to read as follows:
   a.  Any person holding a class “A” beer permit issued by the department shall be authorized to manufacture and sell, or sell at wholesale, beer for consumption off the premises, such sales within the state to be made only to persons holding a subsisting class “A” beer permit, or retail alcohol licenses, excluding a special class “B” retail native wine license, issued in accordance with the provisions of this chapter. However, a person holding a class “A” beer permit issued by the department who also holds a brewer’s notice issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury shall be authorized to sell, at wholesale, no more than thirty thirty-eight thousand barrels of beer on an annual basis for consumption off the premises to a licensee licensees authorized under this chapter to sell beer at retail.
    Sec. 6.  Section 123.130, subsection 2, Code 2025, is amended to read as follows:
   2.  Pursuant to section 123.45, subsection 3, a native brewery may be granted not more than two three class “C” retail alcohol licenses or not more than two three special class “C” retail alcohol licenses.
    Sec. 7.  Section 123.173, subsection 2, Code 2025, is amended to read as follows:
   2.  A class “A” wine permit allows the holder to manufacture and sell, or sell at wholesale, in this state, wine. The holder of a class “A” wine permit may manufacture in this state wine having an alcoholic content greater than seventeen percent by weight or twenty-one and twenty-five hundredths percent of alcohol by volume for shipment outside this state. All class “A” premises shall be located within the state.  However, a native winery holding a class “A” wine permit issued by the department who also holds a basic permit issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury shall be authorized to sell, at wholesale, no more than one hundred fifty thousand gallons of wine on an annual basis for consumption off the premises to licensees authorized under this chapter to sell wine at retail.
    Sec. 8.  Section 123.175, subsection 2, paragraph g, Code 2025, is amended by striking the paragraph.
    Sec. 9.  Section 123.176, subsection 5, paragraph a, Code 2025, is amended to read as follows:
   a.  Notwithstanding any other provision of this chapter or the fact that a person is the holder of a class “A” wine permit, a person engaged in the business of manufacturing native wine may be granted a class “C” retail alcohol license or special class “C” retail native wine license as defined in section 123.30 for the same premises licensed under a class “A” wine permit where the manufacturing of native wine occurs. A manufacturer of native wine may be granted not more than two three class “C” retail alcohol licenses or special class “C” retail native wine licenses. A manufacturer of native wine may be issued a class “C” retail alcohol license or special class “C” retail native wine license regardless of whether the manufacturer is also a manufacturer of beer pursuant to a class “A” beer permit or a manufacturer of native distilled spirits pursuant to a class “A” native distilled spirits license.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to alcoholic beverage control.
   Under current law, a person holding a retail alcohol license to sell alcoholic beverages for consumption on the licensed premises may permit a customer to carry an open container of wine from the person’s licensed premises into another immediately adjacent licensed premises that is covered by a license or permit that authorizes the consumption of wine, a temporarily closed public right-of-way, or a private place. The bill allows a licensee to permit a customer to carry any alcoholic beverage in an open container to an immediately adjacent licensed premises authorized to sell the same type of alcoholic beverage for consumption on the licensed premises, a temporarily closed public right-of-way, or a private place. The bill allows the licensee of the immediately adjacent licensed premises, or owner of the immediately adjacent private place, to refuse to allow the customer to enter the licensed premises or private place with an open container.
   Under current law, the following retail alcohol licenses may be issued to native manufacturers for the same premises where manufacturing occurs: a native distillery may be granted not more than two class “C” retail alcohol licenses, a native brewery may be granted not more than two class “C” retail alcohol licenses or two special class “C” retail alcohol licenses, and a native winery may be granted not more than two class “C” retail alcohol licenses or two special class “C” retail native wine licenses. A class “C” retail alcohol license allows for the sale and on-premises consumption of alcoholic liquor, wine, or beer and the sale of alcoholic liquor, wine, and beer in original unopened containers for consumption off the premises. A special class “C” retail alcohol license allows for the sale and consumption of wine and beer on the premises and the sale of wine and beer in original unopened containers for consumption off the premises. A special class “C” retail native wine license allows beer and native wine to be sold for on- or off-premises consumption. The bill allows native manufacturers to be issued not more than three of the currently authorized retail alcohol licenses.
   Under current law, a class “A” beer permit holder who also holds a brewer’s notice issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury (bureau), also known as a native brewery, is authorized to sell, at wholesale, no more than 30,000 barrels of beer on an annual basis to off-premises licensees. The bill increases this to no more than 38,000 barrels of beer.
   The bill imposes a limit on a class “A” wine permit holder who also holds a basic permit issued by the bureau, also known as a native winery, of no more than 150,000 gallons of wine annually that may be sold at wholesale to off-premises retailers of wine.
   The bill eliminates the $5,000 bond requirement for class “A” wine permit holders.