H.F. 470 DIVISION I 1 DEFINITIONS —— LICENSE AUTHORIZATIONS —— BOND REQUIREMENTS 2 Section 1. Section 123.3, subsections 10 and 32, Code 2025, 3 are amended to read as follows: 4 10. “Canned cocktail” means a mixed drink or cocktail , the 5 alcohol component of which is primarily composed of alcoholic 6 liquor, that is premixed and packaged in a metal can and 7 contains more than one-half of one percent of alcohol by volume 8 but not more than fifteen percent of alcohol by volume. A 9 mixed drink or cocktail mixed and packaged in a metal can 10 pursuant to section 123.49, subsection 2 , paragraph “d” , 11 subparagraph (3), shall not be considered a canned cocktail. 12 32. “Mixed drink or cocktail” means an alcoholic beverage, 13 composed in whole or in part of alcoholic liquor, wine, or 14 beer, that is combined with other alcoholic beverages or 15 nonalcoholic beverages or ingredients including but not limited 16 to ice, water, soft drinks, or flavorings. 17 Sec. 2. Section 123.30, subsection 1, paragraph a, Code 18 2025, is amended to read as follows: 19 a. A retail alcohol license may be issued to any person 20 who is of good moral character as defined by this chapter , the 21 state of Iowa, or any state agency as defined in section 669.2 . 22 Sec. 3. Section 123.30, subsection 3, paragraph b, 23 subparagraph (2), subparagraph division (c), Code 2025, is 24 amended to read as follows: 25 (c) The holder of a special class “C” retail alcohol 26 license shall be authorized to sell wine and beer to patrons 27 by the individual drink for consumption on the premises only. 28 However, wine and beer in original unopened containers may 29 also be sold for consumption off the premises. In addition, a 30 mixed drink or cocktail that does not contain alcoholic liquor 31 may be sold for consumption off the premises subject to the 32 requirements of section 123.49, subsection 2, paragraph “d” . 33 Sec. 4. Section 123.30, subsection 4, Code 2025, is amended 34 to read as follows: 35 -1- HF 470 (2) 91 ll/ns/md 1/ 10

H.F. 470 4. Notwithstanding any provision of this chapter to the 1 contrary, a person holding a retail alcohol license to sell 2 alcoholic beverages for consumption on the licensed premises 3 may permit a customer to remove one unsealed bottle of wine 4 for consumption off the premises if the customer has purchased 5 and consumed a portion of the bottle of wine on the licensed 6 premises. The licensee or the licensee’s agent shall securely 7 reseal such bottle in a bag designed so that it is visibly 8 apparent that the resealed bottle of wine has not been tampered 9 with and provide a dated receipt for the resealed bottle of 10 wine to the customer. A wine bottle resealed pursuant to the 11 requirements of this subsection is subject to the requirements 12 of sections 321.284 and 321.284A . A person holding a retail 13 alcohol license to sell alcoholic beverages for consumption on 14 the licensed premises may permit a customer to carry an open 15 container of wine from the person’s licensed premises into 16 another immediately adjacent licensed premises that is covered 17 by a license or permit that authorizes the consumption of wine, 18 a temporarily closed public right-of-way, or a private place. 19 Sec. 5. Section 123.30, Code 2025, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 5. a. Notwithstanding any provision of 22 this chapter to the contrary, a person holding a retail alcohol 23 license to sell alcoholic beverages for consumption on the 24 licensed premises may permit a customer to carry an alcoholic 25 beverage in an open container from the licensed premises to any 26 of the following immediately adjacent locations: 27 (1) A licensed premises authorized to sell the same type of 28 alcoholic beverage for consumption on the licensed premises. 29 (2) A temporarily closed public right-of-way. 30 (3) A private place. 31 b. The licensee of the immediately adjacent licensed 32 premises, or owner of the immediately adjacent private 33 place, may refuse to allow the customer to enter the licensed 34 premises or private place with an alcoholic beverage in an open 35 -2- HF 470 (2) 91 ll/ns/md 2/ 10

H.F. 470 container. 1 Sec. 6. Section 123.31, subsection 2, paragraphs b and c, 2 Code 2025, are amended to read as follows: 3 b. That the applicant is a person of good moral character 4 as provided in section 123.3, subsection 40 . This paragraph 5 does not apply if the applicant is the state of Iowa or a state 6 agency as defined in section 669.2. 7 c. That the applicant is a citizen of the state of Iowa 8 or, if a corporation, that the applicant is authorized to do 9 business in the state. This paragraph does not apply if the 10 applicant is the state of Iowa or a state agency as defined in 11 section 669.2. 12 Sec. 7. Section 123.31C, subsection 1, Code 2025, is amended 13 to read as follows: 14 1. A person holding a special class “C” retail native 15 wine license may sell beer and native wine only at retail for 16 consumption on or off the premises. Sales of beer and native 17 wine for consumption off the premises made pursuant to this 18 section shall be made in original containers except as provided 19 in subsection 5 . A sale of a mixed drink or cocktail that does 20 not contain alcoholic liquor may be sold for consumption off 21 the premises subject to the requirements of section 123.49, 22 subsection 2, paragraph “d” . 23 Sec. 8. Section 123.43, subsection 2, paragraphs b and c, 24 Code 2025, are amended to read as follows: 25 b. That the applicant is a person of good moral character 26 as provided in section 123.3, subsection 40 . This paragraph 27 does not apply if the applicant is the state of Iowa or a state 28 agency as defined in section 669.2. 29 c. That the applicant is a citizen of the state of Iowa 30 or, if a corporation, that the applicant is authorized to do 31 business in the state. This paragraph does not apply if the 32 applicant is the state of Iowa or a state agency as defined in 33 section 669.2. 34 Sec. 9. Section 123.43, Code 2025, is amended by adding the 35 -3- HF 470 (2) 91 ll/ns/md 3/ 10

H.F. 470 following new subsection: 1 NEW SUBSECTION . 5. For purposes of this section, 2 “premises” , in addition to premises as defined in section 123.3, 3 may include any of the following noncontiguous locations, 4 provided that such noncontiguous locations are approved by the 5 alcohol and tobacco tax and trade bureau of the United States 6 department of the treasury: 7 a. Any number of locations which are only separated from 8 the premises as defined in section 123.3 by public waterways, 9 roads, or carrier rights-of-way. 10 b. Any number of locations in the same general location as 11 the premises as defined in section 123.3. 12 c. An additional warehouse or warehouses, located somewhere 13 other than on the premises as defined in section 123.3 or a 14 location described in paragraph “a” or “b” . 15 Sec. 10. Section 123.49, subsection 2, paragraph d, 16 subparagraphs (2), (3), and (4), Code 2025, are amended to read 17 as follows: 18 (2) Mixed drinks or cocktails mixed on the premises that are 19 not for immediate consumption may be consumed on the licensed 20 premises subject to the requirements of this subparagraph 21 pursuant to rules adopted by the department. as follows: 22 (a) The rules shall provide that the mixed drinks or 23 cocktails shall be stored, for no longer than seventy-two 24 hours, in the shortest period outlined in the minimum standards 25 of the specific ingredients of the mixed drink or cocktail 26 in the rules established by the department of inspections, 27 appeals, and licensing to protect consumers from foodborne 28 illness as described in section 137F.2. A licensee who mixes, 29 stores, and allows the consumption of mixed drinks or cocktails 30 that are not for immediate consumption shall comply with all 31 applicable state and federal food safety laws and regulations. 32 (b) A mixed drink or cocktail that is not for immediate 33 consumption shall be mixed, stored, and dispensed on the 34 licensed premises from a labeled container in a quantity 35 -4- HF 470 (2) 91 ll/ns/md 4/ 10

H.F. 470 that does not exceed three gallons. The rules shall also 1 provide that A mixed drink or cocktail, or portion thereof, 2 not consumed within the time frame outlined in subparagraph 3 division (a) is considered expired and must be destroyed. An 4 expired mixed drink or cocktail shall not be added to an empty 5 container and relabeled or added to another mixed drink or 6 cocktail. 7 (i) A mixed drink or cocktail that is not for immediate 8 consumption shall at all times be in a container compliant with 9 applicable state and federal food safety laws and regulations. 10 The mixed drink or cocktail shall be mixed and remain stored 11 in the same container. The mixed drink or cocktail shall be 12 removed from the stored container to compound and fulfill a 13 mixed drink or cocktail order upon receipt of the order for 14 the mixed drink or cocktail or for transfer into a pourable 15 container. The pourable container shall have affixed a label 16 compliant with subparagraph subdivision (ii) displaying label 17 information identical to that on the container from which the 18 contents were poured. The expiration date and time shall not 19 be extended by the transfer of product to a pourable container. 20 The mixed drink or cocktail may be strained into another 21 container when the mixed drink or cocktail is returned without 22 delay to the labeled container from which it was strained and 23 the container and process are compliant with applicable state 24 and federal food safety laws and regulations. An original 25 container of alcoholic liquor or an original container of wine 26 shall not be used to mix, store, or dispense a mixed drink or 27 cocktail. The mixed drink or cocktail shall not be mixed, 28 stored, or dispensed from a container bearing an alcoholic 29 beverage name brand. A dispensing machine which contains a 30 mixed drink or cocktail is subject to the requirements and 31 restrictions of this subparagraph (2). 32 (ii) A label must be placed on a container when the contents 33 of the mixed drink or cocktail are placed into the empty 34 container. The label shall be affixed to the container in a 35 -5- HF 470 (2) 91 ll/ns/md 5/ 10

H.F. 470 conspicuous place. The label must legibly identify the month, 1 day, year, and time the contents are placed into the empty 2 container. The label must legibly identify the month, day, 3 year, and time the contents expire. The label must legibly 4 specify the title of the recipe used for the contents of the 5 container. The label must legibly identify the person who 6 prepared the contents of the container. The label must legibly 7 identify the size of the batch within the container and be 8 conspicuously marked with the words “CONTAINS ALCOHOL”. The 9 label shall be removed from the container once the entire 10 contents have been consumed, transferred to a pourable 11 container, or destroyed and disposed of in accordance with 12 applicable law. A label shall not be reused, and a removed 13 label shall not be reapplied to a container. A new label shall 14 be placed on the container for each prepared batch of mixed 15 drinks or cocktails that is not for immediate consumption. 16 (iii) A mixed drink or cocktail that is not for immediate 17 consumption shall not include added flavors and other 18 nonbeverage ingredients included in the mixed drinks or 19 cocktails shall not include containing hallucinogenic 20 substances or added caffeine or other added stimulants 21 including but not limited to guarana, ginseng, and taurine. 22 The rules shall also require that the A licensee is limited to 23 utilizing alcoholic beverages in the mixed drink or cocktail 24 that are authorized by the retail alcohol license and obtained 25 as prescribed by this chapter. 26 (iv) The licensee shall keep records as to when the contents 27 in each prepared batch of mixed drinks or cocktails are mixed 28 in a particular container were mixed and the recipe used for 29 that mixture. The records must include the month, day, year, 30 and time the contents are placed into the empty container, 31 each alcoholic beverage, including the brand and the amount 32 utilizing the metric system, and each nonalcoholic ingredient 33 placed in the container. The recipe must contain the title 34 and directions for preparing the contents, the identity of the 35 -6- HF 470 (2) 91 ll/ns/md 6/ 10

H.F. 470 person who prepared the contents of the container, and the 1 size of the batch. The records must include the month, day, 2 year, and time the contents of the container are destroyed 3 and disposed of, the identity of the person who destroyed 4 and disposed of the contents, and the method of destruction 5 and disposal, or a statement that the contents were entirely 6 consumed. Records shall be maintained on the licensed premises 7 for a period of three years and shall be open to inspection 8 pursuant to section 123.33. 9 (c) In addition, mixed drinks or cocktails mixed on the 10 premises pursuant to this subparagraph (2) may be sold for 11 consumption off the licensed premises as provided in and 12 subject to the requirements of subparagraph (3). 13 (3) Mixed drinks or cocktails mixed on premises covered by 14 a class “C” or special class “C” retail alcohol license , or a 15 special class “C” retail native wine license, for consumption 16 off the licensed premises may be sold if the mixed drink or 17 cocktail is immediately filled in a sealed container and is 18 promptly taken from the licensed premises prior to consumption 19 of the mixed drink or cocktail. A mixed drink or cocktail 20 that is sold in a sealed container in compliance with the 21 requirements of this subparagraph and rules adopted by the 22 department shall not be deemed an open container subject to the 23 requirements of sections 321.284 and 321.284A if the sealed 24 container is unopened and the seal has not been tampered with, 25 and the contents of the container have not been partially 26 removed. 27 (4) For purposes of this paragraph: 28 (a) “Immediate consumption” means the compounding and 29 fulfillment of a mixed drink or cocktail order upon receipt of 30 the order for the mixed drink or cocktail. 31 (a) (b) “Sealed container” means a vessel containing a 32 mixed drink or cocktail that is designed to prevent consumption 33 without removal of a tamper-evident lid, cap, or seal. “Sealed 34 container” does not include a container with a sipping hole 35 -7- HF 470 (2) 91 ll/ns/md 7/ 10

H.F. 470 or other opening for a straw, a cup made of plastic that 1 is intended for one-time use, or a cup made of paper or 2 polystyrene foam. 3 (b) (c) “Tamper-evident” means a lid, cap, or seal that 4 visibly demonstrates when a container has been opened. 5 Sec. 11. Section 123.127, subsection 2, paragraphs b and c, 6 Code 2025, are amended to read as follows: 7 b. That the applicant is a person of good moral character 8 as provided in section 123.3, subsection 40 . This paragraph 9 does not apply if the applicant is the state of Iowa or a state 10 agency as defined in section 669.2. 11 c. That the applicant is a citizen of the state of Iowa 12 or, if a corporation, that the applicant is authorized to do 13 business in the state. This paragraph does not apply if the 14 applicant is the state of Iowa or a state agency as defined in 15 section 669.2. 16 Sec. 12. Section 123.127, subsection 2, paragraph g, Code 17 2025, is amended by striking the paragraph. 18 Sec. 13. Section 123.175, subsection 2, paragraphs b and c, 19 Code 2025, are amended to read as follows: 20 b. That the applicant is a person of good moral character 21 as provided in section 123.3, subsection 40 . This paragraph 22 does not apply if the applicant is the state of Iowa or a state 23 agency as defined in section 669.2. 24 c. That the applicant is a citizen of the state of Iowa 25 or, if a corporation, that the applicant is authorized to do 26 business in the state. This paragraph does not apply if the 27 applicant is the state of Iowa or a state agency as defined in 28 section 669.2. 29 Sec. 14. Section 123.175, subsection 2, paragraph g, Code 30 2025, is amended by striking the paragraph. 31 Sec. 15. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 DIVISION II 34 LICENSE FEE DETERMINATION 35 -8- HF 470 (2) 91 ll/ns/md 8/ 10

H.F. 470 Sec. 16. Section 123.36, subsection 1, paragraph a, 1 subparagraph (4), Code 2025, is amended to read as follows: 2 (4) For premises located outside the corporate limits of 3 any city, a fee equal to that charged to for a premises with 4 of the same square footage in the nearest incorporated city 5 located nearest the premises to be licensed , as determined by 6 the address assigned by the United States postal service . If 7 there is doubt as to which of two or more differing corporate 8 limits is the nearest, the license fee which is the largest 9 shall prevail. However, if the premises is located in an 10 unincorporated town, for purposes of this paragraph, the 11 unincorporated town shall be treated as if it is a city. 12 Sec. 17. Section 123.36, subsection 1, paragraph c, 13 subparagraph (4), Code 2025, is amended to read as follows: 14 (4) Commercial establishments located outside the corporate 15 limits of any city, a fee equal to that charged in the 16 incorporated city located nearest the premises to be licensed, 17 and in case there is doubt as to which of two or more differing 18 corporate limits is the nearest, the license fee which is the 19 largest shall prevail as determined by the address assigned by 20 the United States postal service . However, if a commercial 21 establishment is located in an unincorporated town, for 22 purposes of this paragraph, the unincorporated town shall be 23 treated as if it is a city. 24 Sec. 18. Section 123.36, subsection 1, paragraph d, 25 subparagraph (4), Code 2025, is amended to read as follows: 26 (4) Commercial establishments located outside the corporate 27 limits of any city, a fee equal to that charged in the 28 incorporated city located nearest the premises to be licensed, 29 and in case there is doubt as to which of two or more differing 30 corporate limits is the nearest, the license fee which is the 31 largest shall prevail as determined by the address assigned by 32 the United States postal service . However, if a commercial 33 establishment is located in an unincorporated town, for 34 purposes of this paragraph, the unincorporated town shall be 35 -9- HF 470 (2) 91 ll/ns/md 9/ 10

H.F. 470 treated as if it is a city. 1 Sec. 19. Section 123.36, subsection 1, paragraph g, 2 subparagraph (4), Code 2025, is amended to read as follows: 3 (4) For premises located outside the corporate limits of 4 any city, a fee equal to that charged to for a premises with 5 of the same square footage in the nearest incorporated city 6 located nearest the premises to be licensed , as determined by 7 the address assigned by the United States postal service . If 8 there is doubt as to which of two or more differing corporate 9 limits is the nearest, the license fee which is the largest 10 shall prevail. However, if the premises is located in an 11 unincorporated town, for purposes of this paragraph, the 12 unincorporated town shall be treated as if it is a city. 13 Sec. 20. APPLICABILITY. This division of this Act applies 14 to licenses issued or renewed on or after November 10, 2025. 15 A license issued prior to that date and in effect on that date 16 shall continue in full force and effect with the authority 17 originally granted by the license until expiration or renewal. 18 -10- HF 470 (2) 91 ll/ns/md 10/ 10