House File 2780 - Reprinted HOUSE FILE 2780 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2355) (SUCCESSOR TO HSB 581) (COMPANION TO SF 2469 BY COMMITTEE ON WAYS AND MEANS) (As Amended and Passed by the House April 23, 2026 ) A BILL FOR An Act relating to alcoholic beverage control by providing for 1 certificates of compliance and the issuance of class “A” 2 wine permits to nonnative wine manufacturers, permitting 3 cities to create social districts for the consumption of 4 alcoholic beverages, and providing fees. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 HF 2780 (2) 91 jm/ns/md

H.F. 2780 Section 1. Section 123.3, subsection 40, paragraph c, Code 1 2026, is amended to read as follows: 2 c. Notwithstanding paragraph “e” , the applicant is a citizen 3 of the United States and a resident of this state, or licensed 4 to do business in this state in the case of a corporation. 5 Notwithstanding paragraph “e” , in the case of a partnership, 6 only one general partner need be a resident of this state. The 7 residency requirements of this paragraph do not apply to an 8 applicant for a class “A” wine permit issued to a nonnative 9 wine manufacturer pursuant to section 123.176A. 10 Sec. 2. Section 123.23, subsection 1, Code 2026, is amended 11 to read as follows: 12 1. Any manufacturer, distiller, or importer of alcoholic 13 liquors shipping, selling, or having alcoholic liquors brought 14 into this state for resale by the state department shall, as 15 a condition precedent to the privilege of so trafficking in 16 alcoholic liquors in this state, annually make application for 17 and hold a distiller’s certificate of compliance which shall 18 be issued by the director for that purpose. No A brand of 19 alcoholic liquor brought into this state shall not be sold 20 by the department in this state unless the manufacturer, 21 distiller, or importer , and all other persons participating 22 in the distribution of that brand in this state have has 23 obtained a certificate. The certificate of compliance shall 24 expire at the end of one year from the date of issuance and 25 shall be renewed for a like period upon application to the 26 director unless otherwise suspended or revoked for cause. 27 Each completed application for a certificate of compliance 28 or renewal shall be submitted electronically, or in a manner 29 prescribed by the director, and shall be accompanied by a fee 30 of two hundred dollars payable to the department. However, 31 this subsection need not apply to a manufacturer, distiller, or 32 importer who ships or sells in this state no more than eleven 33 gallons or its case equivalent during any fiscal year as a 34 result of “special orders” which might be placed, as defined 35 -1- HF 2780 (2) 91 jm/ns/md 1/ 8

H.F. 2780 and allowed by departmental rules adopted under this chapter . 1 Sec. 3. Section 123.23, subsection 5, Code 2026, is amended 2 by striking the subsection. 3 Sec. 4. Section 123.30, subsection 5, paragraph a, Code 4 2026, is amended by adding the following new subparagraph: 5 NEW SUBPARAGRAPH . (4) A social district, if the holder of 6 the retail alcohol license is a participating licensee within a 7 social district and in compliance with the ordinance adopted 8 under section 414.34. 9 Sec. 5. Section 123.46, subsection 2, Code 2026, is amended 10 to read as follows: 11 2. a. A person shall not use or consume alcoholic liquor, 12 wine, or beer upon the public streets or highways. A person 13 shall not use or consume alcoholic liquor in any public 14 place except premises covered by a retail alcohol license. 15 A person shall not possess or consume alcoholic liquors, 16 wine, or beer on public school property or while attending a 17 public or private school-related function. A person shall not 18 be intoxicated in a public place. A person violating this 19 subsection is guilty of a simple misdemeanor. 20 b. Notwithstanding paragraph “a” , a person may possess 21 or consume alcoholic liquor, wine, or beer upon the public 22 streets, highways, or public places within a social district 23 if the possession or consumption complies with the ordinance 24 adopted under section 414.34. 25 Sec. 6. Section 123.135, subsections 1, 2, and 3, Code 2026, 26 are amended to read as follows: 27 1. A manufacturer, brewer, bottler, importer, or vendor 28 of beer, or any agent thereof, desiring to ship or sell beer, 29 or have beer brought into this state for resale by a class 30 “A” beer permittee, shall first make application for and be 31 issued a brewer’s certificate of compliance by the director 32 for that purpose. The certificate of compliance expires at 33 the end of one year from the date of issuance and shall be 34 renewed for a like period upon application to the director 35 -2- HF 2780 (2) 91 jm/ns/md 2/ 8

H.F. 2780 unless otherwise revoked for cause. Each completed application 1 for a certificate of compliance or renewal of a certificate 2 shall be submitted electronically, or in a manner prescribed 3 by the director, and shall be accompanied by a fee of two 4 hundred dollars payable to the department. Each holder of a 5 certificate of compliance shall furnish the information in 6 a manner the director requires. The holder of a brewer’s 7 certificate of compliance may also hold a class “A” beer 8 permit. 9 2. At the time of applying for a certificate of compliance, 10 each applicant shall file with the department electronically, 11 or in a manner prescribed by the director, a list of all class 12 “A” beer permittees with whom it intends to do business and 13 shall designate a designation of the geographic area in which 14 its products are to be distributed by such permittee. The 15 listing of class “A” beer permittees and geographic area as 16 filed with the department shall be amended by the holder of 17 a certificate of compliance as necessary to keep the listing 18 current with the department. 19 3. All class “A” beer permit holders shall sell only those 20 brands of beer brought into the state which are manufactured, 21 brewed, bottled, shipped, or imported by a person holding a 22 current certificate of compliance. Any employee or agent 23 working for or representing the holder of a certificate of 24 compliance within this state shall submit electronically, or in 25 a manner prescribed by the director, the employee’s or agent’s 26 name and address with the department. 27 Sec. 7. Section 123.173, subsection 2, Code 2026, is amended 28 to read as follows: 29 2. A class “A” wine permit allows the holder to manufacture 30 and sell, or sell at wholesale, in this state, wine. The 31 holder of a class “A” wine permit may manufacture in this state 32 wine having an alcoholic content greater than seventeen percent 33 by weight or twenty-one and twenty-five hundredths percent of 34 alcohol by volume for shipment outside this state. All Except 35 -3- HF 2780 (2) 91 jm/ns/md 3/ 8

H.F. 2780 as provided in section 123.176A, all class “A” premises shall 1 be located within the state. 2 Sec. 8. Section 123.175, subsection 2, paragraph c, Code 3 2026, is amended to read as follows: 4 c. That the applicant is a citizen resident of the state 5 of Iowa or, if a corporation, that the applicant is authorized 6 to do business in the state. This paragraph does not apply if 7 the applicant is the state of Iowa or a state agency as defined 8 in section 669.2 . The residency requirement of this paragraph 9 does not apply to a nonnative wine manufacturer under section 10 123.176A. 11 Sec. 9. NEW SECTION . 123.176A Nonnative wine manufacturers. 12 1. As used in this section, “nonnative wine manufacturer” 13 means a person who processes the fruit, vegetables, dandelions, 14 clover, honey, or any combination of these ingredients, by 15 fermentation into wines on a premises located outside of this 16 state. 17 2. A nonnative wine manufacturer licensed or permitted 18 pursuant to laws regulating alcoholic beverages in another 19 state may apply for and be issued a class “A” wine permit, as 20 provided in section 123.175, without being a resident of this 21 state. 22 3. A nonnative wine manufacturer holding a class “A” wine 23 permit may sell, or sell at wholesale, in this state, wine 24 that the nonnative wine manufacturer has itself manufactured 25 by fermentation on its out-of-state licensed or permitted 26 premises, provided the wine is properly registered with the 27 alcohol and tobacco tax and trade bureau of the United States 28 department of the treasury. Pursuant to section 123.177, such 29 sales shall only be made to persons holding a class “A” wine 30 permit or to persons holding a retail alcohol license. 31 4. A nonnative wine manufacturer shall not sell in this 32 state wine fermented by another manufacturer. 33 5. A nonnative wine manufacturer may ship wine in closed 34 containers to individual purchasers within this state by 35 -4- HF 2780 (2) 91 jm/ns/md 4/ 8

H.F. 2780 obtaining a wine direct shipper permit pursuant to section 1 123.187. 2 6. A nonnative wine manufacturer that holds a class “A” wine 3 permit shall be deemed to have consented to the jurisdiction 4 of the department or any other agency or court in this state 5 concerning enforcement of this chapter and any related laws, 6 rules, or regulations. A permit holder shall allow the 7 department to perform an audit of manufacturing and sales 8 records upon request. 9 7. A violation of this section shall subject the permit 10 holder to the general penalties provided in this chapter and 11 shall constitute grounds for imposition of a civil penalty or 12 suspension or revocation of the permit pursuant to section 13 123.39. 14 Sec. 10. Section 123.177, subsection 2, Code 2026, is 15 amended to read as follows: 16 2. A class “A” wine permit holder may purchase and resell 17 only those brands of wine brought into the state which are 18 manufactured, fermented, bottled, shipped, or imported by a 19 person holding a certificate of compliance issued pursuant to 20 section 123.180 . 21 Sec. 11. Section 123.179, Code 2026, is amended to read as 22 follows: 23 123.179 Wine permit and license fees. 24 1. The annual permit fee for a class “A” wine permit that 25 is not issued to a native wine manufacturer is seven hundred 26 fifty dollars , except the annual permit fee for a class “A” 27 wine permit issued to a native wine manufacturer as provided in 28 section 123.176 or a nonnative wine manufacturer as provided in 29 section 123.176A is one hundred dollars . 30 2. The annual permit fee for a class “A” wine permit issued 31 to a native wine manufacturer is one hundred dollars. 32 3. 2. The fee for a charity beer, spirits, and wine special 33 event license is one hundred dollars. 34 4. 3. The fee for a wine auction permit is one hundred 35 -5- HF 2780 (2) 91 jm/ns/md 5/ 8

H.F. 2780 dollars. 1 Sec. 12. Section 123.180, subsections 1, 2, and 3, Code 2 2026, are amended to read as follows: 3 1. A manufacturer, vintner, bottler, importer, or vendor 4 of wine, or an agent thereof, desiring to ship, sell, or have 5 wine brought into this state for sale at wholesale resale by 6 a class “A” wine permittee shall first make application for 7 and shall be issued a vintner’s certificate of compliance by 8 the director for that purpose. The vintner’s certificate 9 of compliance shall expire at the end of one year from the 10 date of issuance and shall be renewed for a like period upon 11 application to the director unless otherwise revoked for 12 cause. Each completed application for a vintner’s certificate 13 of compliance or renewal of a certificate shall be submitted 14 electronically, or in a manner prescribed by the director, and 15 shall be accompanied by a fee of two hundred dollars payable 16 to the department. Each holder of a vintner’s certificate 17 of compliance shall furnish the information required by the 18 director in the form the director requires. A vintner or wine 19 bottler whose plant is located in Iowa and who otherwise holds 20 a class “A” wine permit to sell wine at wholesale is exempt 21 from the fee, but not the other terms and conditions. The 22 holder of a vintner’s certificate of compliance may also hold a 23 class “A” wine permit. 24 2. At the time of applying for a vintner’s certificate 25 of compliance, each applicant shall file with the department 26 electronically, or in a manner prescribed by the director, a 27 list of all class “A” wine permittees with whom it intends 28 to do business. The listing of class “A” wine permittees as 29 filed with the department shall be amended by the holder of 30 the certificate of compliance as necessary to keep the listing 31 current with the department. 32 3. a. Except as provided in paragraph “b” , all class 33 “A” wine permit holders shall sell only those brands of 34 wine brought into the state which are manufactured, bottled, 35 -6- HF 2780 (2) 91 jm/ns/md 6/ 8

H.F. 2780 fermented, shipped, or imported by a person holding a 1 current vintner’s certificate of compliance. An employee or 2 agent working for or representing the holder of a vintner’s 3 certificate of compliance within this state shall register the 4 employee’s or agent’s name and address with the department 5 electronically, or register in a manner prescribed by the 6 director . These names and addresses shall be filed with the 7 department’s copy of the certificate of compliance issued 8 except that this provision does not require the listing of 9 those persons who are employed on the premises of a bottling 10 plant, or winery where wine is manufactured, fermented, 11 or bottled in Iowa or the listing of those persons who are 12 thereafter engaged in the transporting of the wine. 13 b. A class “A” wine permit holder may sell brands of wine 14 brought into the state which are not manufactured, bottled, 15 fermented, shipped, or imported by a person holding a current 16 vintner’s certificate of compliance if the brands of wine were 17 purchased from a private sale pursuant to section 123.171, 18 subsection 4 , or if authorized by the laws of another state. 19 Sec. 13. NEW SECTION . 414.34 Social districts. 20 1. As used in this section: 21 a. “Marked container” means a nonglass container that 22 identifies the retail alcohol licensee providing the alcoholic 23 liquor, beer, or wine in the container to the consumer within 24 the social district. 25 b. “Retail alcohol licensee” means the holder of a class “C” 26 or special class “C” license issued under section 123.30. 27 c. “Social district” means a defined area in which the 28 possession and consumption of alcoholic liquor, wine, and 29 beer is allowed on public streets, sidewalks, and other 30 public spaces within the boundaries of the district that are 31 consistent with this section. 32 2. A city may define an area by ordinance that designates a 33 social district for use by retail alcohol licensees. 34 3. An ordinance adopted pursuant to this section must 35 -7- HF 2780 (2) 91 jm/ns/md 7/ 8

H.F. 2780 include all of the following: 1 a. A legal description or map of the district. 2 b. The days and hours the possession and consumption of 3 alcoholic liquor, wine, and beer are permitted on public 4 streets, sidewalks, and other public places within the 5 district. 6 c. Requirements for marked container use and identification. 7 d. Participation requirements for retail alcohol licensees 8 within the district. 9 e. Enforcement provisions and penalties for violations. 10 f. Procedures for the revocation or suspension of all of the 11 following: 12 (1) The participation of retail alcohol licensees for 13 violations. 14 (2) The social district itself for public safety concerns 15 or other matters. 16 4. An ordinance adopted by a city shall not be construed to 17 authorize any of the following: 18 a. Consumption of an alcoholic beverage in a motor vehicle 19 or on the public streets, sidewalks, and other public spaces 20 during the times when the ordinance is not in effect. 21 b. Possession or consumption of an alcoholic beverage in 22 a manner contrary to the provisions of chapter 123 except as 23 otherwise provided by an ordinance adopted pursuant to this 24 section. 25 c. A prohibition on any participating retail alcohol 26 licensee or other establishment located within the social 27 district from denying entry to the premises of the licensee or 28 establishment to persons who possess alcoholic beverages from 29 other participating retail alcohol licensees. 30 -8- HF 2780 (2) 91 jm/ns/md 8/ 8