House File 478 - IntroducedA Bill ForAn Act 1concerning alcoholic beverage control relating to
2brewpubs and alternating proprietorship arrangements for
3beer manufacturers.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 123.30, subsection 3, paragraph b,
2subparagraph (2), Code 2023, is amended by adding the following
3new subparagraph division:
4   NEW SUBPARAGRAPH DIVISION.  (0d)  The holder of a special
5class “C” retail alcohol license may also hold a special class
6“A” beer permit for the premises licensed under a special class
7“C” retail alcohol license for the purpose of operating a
8brewpub pursuant to this chapter.
9   Sec. 2.  Section 123.130, subsection 4, Code 2023, is amended
10to read as follows:
   114.  a.  All special class “A” premises shall be located
12within the state. A
   13b.   Except as provided in paragraph “c”, aperson who
14holds a special class “A” beer permit for the same location
15at which the person holds a class “C” or special class “C”
16retail alcohol license for the purpose of operating as a
17brewpub may manufacture and sell beer to be consumed on the
18premises, may sell beer at retail at the manufacturing premises
19for consumption off the premises, may sell beer to a class
20“A” beer permittee for resale purposes, and may sell beer to
21distributors outside of the state that are authorized by the
22laws of that jurisdiction to sell beer at wholesale.
   23c.  A person who holds a special class “A” beer permit
24for the same location at which the person holds a class
25“C” or special class “C” retail alcohol license for the
26purpose of operating as a brewpub may manufacture beer under
27an alternating proprietorship arrangement as provided in
28subsection 4A. However, the person may not sell beer to be
29consumed on the premises where manufactured or sell beer at
30retail for consumption off the premises where manufactured
31unless the person is also the holder of a class “C” or special
32class “C” retail alcohol license issued for the premises of the
33alternating proprietorship whose space and equipment is being
34used for the purpose of manufacturing beer.
   35d.  The permit issued to holders of a special class “A”
-1-1beer permit shall clearly state on its face that the permit is
2limited.
3   Sec. 3.  Section 123.130, Code 2023, is amended by adding the
4following new subsection:
5   NEW SUBSECTION.  4A.  a.  For purposes of this subsection,
6“manufacturer” includes only those persons who hold a class “A”
7or special class “A” beer permit and manufacture beer in Iowa.
   8b.  Notwithstanding any provision of law to the contrary,
9a manufacturer may use the space and equipment of another
10manufacturer for the purpose of manufacturing beer, provided
11that such an alternating proprietorship arrangement has been
12approved by the alcohol and tobacco tax and trade bureau of the
13United States department of the treasury. A separate class
14“A” or special class “A” beer permit shall be issued to each
15manufacturer, and each manufacturer shall be subject to the
16provisions of this chapter and the rules of the division.
   17c.  Notwithstanding any provision of law to the contrary,
18not more than one class “C” retail alcohol license or special
19class “C” retail license shall be issued to a premises with
20alternating proprietorships as authorized by this subsection.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
   24This bill concerns alcoholic beverage control relating to
25brewpubs and alternating proprietorship arrangements for beer
26manufacturers.
   27Code section 123.30, concerning retail alcohol license
28classifications, is amended to provide that a holder of a
29special class “C” retail alcohol license may also hold a
30special class “A” beer permit for purposes of operating a
31brewpub.
   32The bill allows a manufacturer of beer in Iowa to use the
33space and equipment of another manufacturer of beer in Iowa for
34the purpose of manufacturing beer pursuant to an alternating
35proprietorship arrangement that is approved by the alcohol and
-2-1tobacco tax and trade bureau of the United States department
2of the treasury. The bill provides that no more than one
3class “C” or special class “C” retail alcohol license shall
4be issued to a premises with alternating proprietorships for
5beer. In addition, the bill provides that a person who holds
6a special class “A” beer permit and manufactures beer under
7an alternative proprietorship arrangement under the bill may
8only sell beer for consumption on or off the premises where
9manufactured if that person is also a holder of a class “C”
10or special class “C” retail alcohol license issued for the
11premises where manufactured.
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