House File 2648 - Reprinted HOUSE FILE 2648 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2445) (SUCCESSOR TO HSB 594) (As Amended and Passed by the House March 19, 2024 ) A BILL FOR An Act relating to alcoholic beverage licenses, including 1 native distilled spirits alternating proprietorships and 2 the issuance of five-day retail alcohol and native wine 3 licenses, and providing fees. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2648 (2) 90 nls/ns/md

H.F. 2648 Section 1. Section 123.34, subsection 3, paragraphs a and c, 1 Code 2024, are amended to read as follows: 2 a. The director may issue five-day class “C”, special class 3 “C”, class “D”, and class “F” retail alcohol licenses , and 4 five-day special class “C” retail native wine licenses . 5 c. The fee for the five-day retail alcohol license is 6 one-eighth of the annual fee for that class of license , except 7 that the fee for a five-day special class “C” retail native 8 wine license is fifty dollars . 9 Sec. 2. Section 123.43A, subsection 6, Code 2024, is amended 10 to read as follows: 11 6. a. Notwithstanding any provision of this chapter to the 12 contrary or the fact that a person is the holder of a class 13 “A” native distilled spirits license, a native distillery may 14 be granted a class “C” retail alcohol license as defined in 15 section 123.30 for the same premises licensed under a class “A” 16 native distilled spirits license where the manufacturing of 17 native distilled spirits occurs . A native distillery may be 18 granted not more than two class “C” retail alcohol licenses. 19 A manufacturer of native distilled spirits distillery may be 20 issued a class “C” retail alcohol license regardless of whether 21 the manufacturer native distillery is also a manufacturer of 22 beer pursuant to a class “A” beer permit or a manufacturer of 23 native wine pursuant to a class “A” wine permit. 24 b. Notwithstanding any provision of this chapter to the 25 contrary or the fact that a person is the holder of a class 26 “A” native distilled spirits license, a native distillery 27 may be granted a five-day class “C” retail alcohol license 28 as described in section 123.34 for premises other than the 29 premises licensed under a class “A” native distilled spirits 30 license where the manufacturing of native distilled spirits 31 occurs. A native distillery may be granted not more than six 32 five-day class “C” retail alcohol licenses during a calendar 33 year. A native distillery may be issued a five-day class 34 “C” retail alcohol license regardless of whether the native 35 -1- HF 2648 (2) 90 nls/ns/md 1/ 4

H.F. 2648 distillery is also a manufacturer of beer pursuant to a class 1 “A” beer permit or a manufacturer of native wine pursuant to a 2 class “A” wine permit. 3 Sec. 3. Section 123.43A, Code 2024, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 8. A manufacturer may use the space 6 and equipment of another manufacturer for the purpose of 7 manufacturing native distilled spirits, provided that such 8 an alternating proprietorship arrangement is approved by the 9 alcohol and tobacco tax and trade bureau of the United States 10 department of the treasury. A separate class “A” native 11 distilled spirits license shall be issued to each manufacturer, 12 and each manufacturer shall be subject to the provisions of 13 this chapter and the rules of the department. Notwithstanding 14 subsection 6, not more than one class “C” retail alcohol 15 license shall be issued to a premises with alternating 16 proprietorships. 17 Sec. 4. Section 123.45, subsection 3, Code 2024, is amended 18 to read as follows: 19 3. a. A person engaged in the wholesaling of beer or wine 20 may sell only disposable glassware, which is constructed of 21 paper, paper laminated, or plastic materials and designed 22 primarily for personal consumption on a one-time usage 23 basis, to retailers for use within the premises of licensed 24 establishments, for an amount which is greater than or equal 25 to an amount which represents the greater of either the amount 26 paid for the disposable glassware by the supplier or the amount 27 paid for the disposable glassware by the wholesaler. Also, 28 notwithstanding 29 b. Notwithstanding any other provision of this chapter 30 or the fact that a person is the holder of a class “A” beer 31 permit, a native brewery may be granted not more than two a 32 class “C” retail alcohol licenses license or not more than two 33 a special class “C” retail alcohol licenses license , both as 34 defined in section 123.30 , for the same premises licensed under 35 -2- HF 2648 (2) 90 nls/ns/md 2/ 4

H.F. 2648 a class “A” beer permit where the manufacturing of beer occurs. 1 A native brewery may be granted not more than two class “C” 2 retail alcohol licenses or two special class “C” retail alcohol 3 licenses. A native brewery may be issued a class “C” retail 4 alcohol license or a special class “C” retail alcohol license 5 regardless of whether that person is also a manufacturer 6 of native distilled spirits pursuant to a class “A” native 7 distilled spirits license or a manufacturer of native wine 8 pursuant to a class “A” wine permit. 9 c. Notwithstanding any other provision of this chapter 10 or the fact that a person is the holder of a class “A” beer 11 permit, a native brewery may be granted a five-day class “C” or 12 five-day special class “C” retail alcohol license as described 13 in section 123.34 for premises other than the premises licensed 14 under a class “A” beer permit where the manufacturing of 15 beer occurs. A native brewery may be granted not more than 16 six five-day class “C” or five-day special class “C” retail 17 alcohol licenses during a calendar year. A native brewery may 18 be issued a five-day class “C” or five-day special class “C” 19 retail alcohol license regardless of whether the native brewery 20 is also a manufacturer of native distilled spirits pursuant to 21 a class “A” native distilled spirits license or a manufacturer 22 of native wine pursuant to a class “A” wine permit. 23 Sec. 5. Section 123.176, subsection 5, Code 2024, is amended 24 to read as follows: 25 5. a. Notwithstanding any other provision of this chapter 26 or the fact that a person is the holder of a class “A” wine 27 permit , a person engaged in the business of manufacturing 28 native wine may be granted a class “C” retail alcohol license 29 or special class “C” retail native wine license as defined in 30 section 123.30 for the same premises licensed under a class 31 “A” wine permit where the manufacturing of native wine occurs . 32 A manufacturer of native wine may be granted not more than 33 two class “C” retail alcohol licenses or special class “C” 34 retail native wine licenses. A manufacturer of native wine 35 -3- HF 2648 (2) 90 nls/ns/md 3/ 4

H.F. 2648 may be issued a class “C” retail alcohol license or special 1 class “C” retail native wine license regardless of whether the 2 manufacturer is also a manufacturer of beer pursuant to a class 3 “A” beer permit or a manufacturer of native distilled spirits 4 pursuant to a class “A” native distilled spirits license. 5 b. Notwithstanding any other provision of this chapter 6 or the fact that a person is the holder of a class “A” wine 7 permit, a person engaged in the business of manufacturing 8 native wine may be granted a five-day class “C” retail alcohol 9 license or five-day special class “C” retail native wine 10 license as described in section 123.34 for premises other than 11 the premises licensed under a class “A” wine permit where the 12 manufacturing of native wine occurs. A manufacturer of native 13 wine may be granted not more than six five-day class “C” retail 14 alcohol licenses or five-day special class “C” retail native 15 wine licenses during a calendar year. A manufacturer of native 16 wine may be issued a five-day class “C” retail alcohol license 17 or five-day special class “C” retail native wine license 18 regardless of whether the manufacturer is also a manufacturer 19 of beer pursuant to a class “A” beer permit or a manufacturer 20 of native distilled spirits pursuant to a class “A” native 21 distilled spirits license. 22 -4- HF 2648 (2) 90 nls/ns/md 4/ 4