Senate File 584 - Introduced SENATE FILE 584 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1193) A BILL FOR An Act concerning alcoholic beverage control. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2678SV (2) 91 ll/ns
S.F. 584 Section 1. Section 123.3, subsection 15, Code 2025, is 1 amended to read as follows: 2 15. Completed application means an application where all 3 necessary fees have been paid in full, any required bonds have 4 been submitted, and the applicant has provided all information 5 requested by the department , and the application meets the 6 requirements of section 123.92, subsection 2 , if applicable . 7 Sec. 2. Section 123.10, subsection 14, Code 2025, is amended 8 by striking the subsection. 9 Sec. 3. Section 123.30, subsection 4, Code 2025, is amended 10 to read as follows: 11 4. Notwithstanding any provision of this chapter to the 12 contrary, a person holding a retail alcohol license to sell 13 alcoholic beverages for consumption on the licensed premises 14 may permit a customer to remove one unsealed bottle of wine 15 for consumption off the premises if the customer has purchased 16 and consumed a portion of the bottle of wine on the licensed 17 premises. The licensee or the licensees agent shall securely 18 reseal such bottle in a bag designed so that it is visibly 19 apparent that the resealed bottle of wine has not been tampered 20 with and provide a dated receipt for the resealed bottle of 21 wine to the customer. A wine bottle resealed pursuant to the 22 requirements of this subsection is subject to the requirements 23 of sections 321.284 and 321.284A . A person holding a retail 24 alcohol license to sell alcoholic beverages for consumption on 25 the licensed premises may permit a customer to carry an open 26 container of wine from the persons licensed premises into 27 another immediately adjacent licensed premises that is covered 28 by a license or permit that authorizes the consumption of wine, 29 a temporarily closed public right-of-way, or a private place. 30 Sec. 4. Section 123.30, Code 2025, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 5. a. Notwithstanding any provision of 33 this chapter to the contrary, a person holding a retail alcohol 34 license to sell alcoholic beverages for consumption on the 35 -1- LSB 2678SV (2) 91 ll/ns 1/ 8
S.F. 584 licensed premises may permit a customer to carry an alcoholic 1 beverage in an open container from the licensed premises to any 2 of the following immediately adjacent locations: 3 (1) A licensed premises authorized to sell the same type of 4 alcoholic beverage for consumption on the licensed premises. 5 (2) A temporarily closed public right-of-way. 6 (3) A private place. 7 b. The licensee of the immediately adjacent licensed 8 premises, or owner of the immediately adjacent private 9 place, may refuse to allow the customer to enter the licensed 10 premises or private place with an alcoholic beverage in an open 11 container. 12 Sec. 5. Section 123.31, subsection 1, Code 2025, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . 0g. Proof of financial responsibility 15 through the existence of a commercial general liability 16 insurance policy submitted in a manner and in an amount as 17 determined by the department for every retail alcohol license 18 application, except applications for a class B, special class 19 B, or class E retail alcohol license. 20 Sec. 6. Section 123.43, Code 2025, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 5. For purposes of this section, 23 premises , in addition to premises as defined in section 123.3, 24 may include any of the following noncontiguous locations, 25 provided that such noncontiguous locations are approved by the 26 alcohol and tobacco tax and trade bureau of the United States 27 department of the treasury: 28 a. Any number of locations which are only separated from 29 the premises as defined in section 123.3 by public waterways, 30 roads, or carrier rights-of-way. 31 b. Any number of locations in the same general location as 32 the premises as defined in section 123.3. 33 c. An additional warehouse or warehouses, located somewhere 34 other than on the premises as defined in section 123.3 or a 35 -2- LSB 2678SV (2) 91 ll/ns 2/ 8
S.F. 584 location described in paragraph a or b . 1 Sec. 7. Section 123.43A, subsection 6, paragraph a, Code 2 2025, is amended to read as follows: 3 a. Notwithstanding any provision of this chapter to the 4 contrary or the fact that a person is the holder of a class 5 A native distilled spirits license, a native distillery may 6 be granted a class C retail alcohol license as defined in 7 section 123.30 for the same premises licensed under a class 8 A native distilled spirits license where the manufacturing 9 of native distilled spirits occurs. A native distillery may 10 be granted not more than two three class C retail alcohol 11 licenses. A native distillery may be issued a class C retail 12 alcohol license regardless of whether the native distillery is 13 also a manufacturer of beer pursuant to a class A beer permit 14 or a manufacturer of native wine pursuant to a class A wine 15 permit. 16 Sec. 8. Section 123.45, subsection 3, paragraph b, Code 17 2025, is amended to read as follows: 18 b. Notwithstanding any other provision of this chapter or 19 the fact that a person is the holder of a class A beer permit, 20 a native brewery may be granted a class C retail alcohol 21 license or a special class C retail alcohol license, both 22 as defined in section 123.30 , for the same premises licensed 23 under a class A beer permit where the manufacturing of beer 24 occurs. A native brewery may be granted not more than two 25 three class C retail alcohol licenses or two special class 26 C retail alcohol licenses. A native brewery may be issued a 27 class C retail alcohol license or a special class C retail 28 alcohol license regardless of whether that person is also a 29 manufacturer of native distilled spirits pursuant to a class 30 A native distilled spirits license or a manufacturer of 31 native wine pursuant to a class A wine permit. 32 Sec. 9. Section 123.49, subsection 2, paragraph f, 33 subparagraph (6), Code 2025, is amended by striking the 34 subparagraph. 35 -3- LSB 2678SV (2) 91 ll/ns 3/ 8
S.F. 584 Sec. 10. Section 123.95, subsection 2, paragraph c, Code 1 2025, is amended by striking the paragraph. 2 Sec. 11. Section 123.127, subsection 2, paragraph g, Code 3 2025, is amended by striking the paragraph. 4 Sec. 12. Section 123.130, subsection 1, paragraph a, Code 5 2025, is amended to read as follows: 6 a. Any person holding a class A beer permit issued by 7 the department shall be authorized to manufacture and sell, or 8 sell at wholesale, beer for consumption off the premises, such 9 sales within the state to be made only to persons holding a 10 subsisting class A beer permit, or retail alcohol licenses, 11 excluding a special class B retail native wine license, 12 issued in accordance with the provisions of this chapter . 13 However, a person holding a class A beer permit issued by 14 the department who also holds a brewers notice issued by the 15 alcohol and tobacco tax and trade bureau of the United States 16 department of the treasury shall be authorized to sell, at 17 wholesale, no more than thirty thirty-eight thousand barrels 18 of beer on an annual basis for consumption off the premises to 19 a licensee licensees authorized under this chapter to sell beer 20 at retail. 21 Sec. 13. Section 123.130, subsection 2, Code 2025, is 22 amended to read as follows: 23 2. Pursuant to section 123.45, subsection 3 , a native 24 brewery may be granted not more than two three class C retail 25 alcohol licenses or not more than two three special class C 26 retail alcohol licenses. 27 Sec. 14. Section 123.173, subsection 2, Code 2025, is 28 amended 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 class 35 -4- LSB 2678SV (2) 91 ll/ns 4/ 8
S.F. 584 A premises shall be located within the state. However, a 1 wine manufacturer holding a class A wine permit issued by 2 the department who also holds a basic permit issued by the 3 alcohol and tobacco tax and trade bureau of the United States 4 department of the treasury shall be authorized to manufacture 5 no more than one hundred fifty thousand gallons of wine on an 6 annual basis. 7 Sec. 15. Section 123.175, subsection 2, paragraph g, Code 8 2025, is amended by striking the paragraph. 9 Sec. 16. Section 123.176, subsection 5, paragraph a, Code 10 2025, is amended to read as follows: 11 a. Notwithstanding any other provision of this chapter 12 or the fact that a person is the holder of a class A wine 13 permit, a person engaged in the business of manufacturing 14 native wine may be granted a class C retail alcohol license 15 or special class C retail native wine license as defined in 16 section 123.30 for the same premises licensed under a class A 17 wine permit where the manufacturing of native wine occurs. A 18 manufacturer of native wine may be granted not more than two 19 three class C retail alcohol licenses or special class C 20 retail native wine licenses. A manufacturer of native wine 21 may be issued a class C retail alcohol license or special 22 class C retail native wine license regardless of whether the 23 manufacturer is also a manufacturer of beer pursuant to a class 24 A beer permit or a manufacturer of native distilled spirits 25 pursuant to a class A native distilled spirits license. 26 Sec. 17. REPEAL. Sections 123.92 and 505.33, Code 2025, 27 are repealed. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanations substance by the members of the general assembly. 31 This bill relates to alcoholic beverage control. 32 Under current law, in order to be issued a retail alcohol 33 license to sell alcoholic beverages for consumption on the 34 licensed premises by the department of revenue (department), an 35 -5- LSB 2678SV (2) 91 ll/ns 5/ 8
S.F. 584 applicant must hold and maintain dramshop liability insurance 1 covering the licensee and licensed premises. This requirement 2 does not apply to retail alcohol licensees that sell alcoholic 3 beverages for consumption off of the licensed premises. 4 The purpose of dramshop liability insurance is to provide 5 protection for members of the public who experience damages as 6 a result of licensees serving patrons any alcoholic beverage 7 to a point that reaches or exceeds the standard set forth in 8 law for liability. The bill eliminates the dramshop liability 9 insurance requirement and the associated statutory liability of 10 a licensee who sold or served an alcoholic beverage directly to 11 a visibly intoxicated person. Instead, such licensees must, as 12 part of the retail alcohol license application, submit proof of 13 a commercial general liability insurance policy submitted in a 14 manner and in an amount as determined by the department. 15 Under current law, a person holding a retail alcohol license 16 to sell alcoholic beverages for consumption on the licensed 17 premises may permit a customer to carry an open container 18 of wine from the persons licensed premises into another 19 immediately adjacent licensed premises that is covered by a 20 license or permit that authorizes the consumption of wine, a 21 temporarily closed public right-of-way, or a private place. 22 The bill allows a licensee to permit a customer to carry any 23 alcoholic beverage in an open container to an immediately 24 adjacent licensed premises authorized to sell the same type of 25 alcoholic beverage for consumption on the licensed premises, 26 a temporarily closed public right-of-way, or a private place. 27 The bill allows the licensee of the immediately adjacent 28 licensed premises, or owner of the immediately adjacent private 29 place, to refuse to allow the customer to enter the licensed 30 premises or private place with an open container. 31 Under current law, Code section 123.3 defines licensed 32 premises or premises to mean all rooms, enclosures, 33 contiguous areas, or places susceptible of precise description 34 satisfactory to the director of revenue where alcoholic 35 -6- LSB 2678SV (2) 91 ll/ns 6/ 8
S.F. 584 beverages, wine, or beer is sold or consumed under authority 1 of a retail alcohol license, wine permit, or beer permit. 2 A single licensed premises may consist of multiple rooms, 3 enclosures, areas, or places if they are wholly within the 4 confines of a single building or contiguous grounds. For 5 purposes of an application for and issuance of a class A 6 native distilled spirits license, the bill modifies the term 7 premises to include, in addition to the definition in Code 8 section 123.3, any number of locations which are only separated 9 from the premises by public waterways, roads, or carrier 10 rights-of-way, any number of locations in the same general 11 location as the premises, and an additional warehouse or 12 warehouses located elsewhere, if approved by the alcohol and 13 tobacco tax and trade bureau of the United States department of 14 the treasury (bureau). 15 Under current law, the following retail alcohol licenses 16 may be issued to native manufacturers for the same premises 17 where manufacturing occurs: a native distillery may be granted 18 not more than two class C retail alcohol licenses, a native 19 brewery may be granted not more than two class C retail 20 alcohol licenses or two special class C retail alcohol 21 licenses, and a native winery may be granted not more than 22 two class C retail alcohol licenses or two special class 23 C retail native wine licenses. A class C retail alcohol 24 license allows for the sale and on-premises consumption of 25 alcoholic liquor, wine, or beer and the sale of alcoholic 26 liquor, wine, and beer in original unopened containers for 27 consumption off the premises. A special class C retail 28 alcohol license allows for the sale and consumption of wine 29 and beer on the premises and the sale of wine and beer in 30 original unopened containers for consumption off the premises. 31 A special class C retail native wine license allows beer and 32 native wine to be sold for on- or off-premises consumption. 33 The bill allows native manufacturers to be issued not more than 34 three of the currently authorized retail alcohol licenses. 35 -7- LSB 2678SV (2) 91 ll/ns 7/ 8
S.F. 584 Under current law, a class A beer permit holder who also 1 holds a brewers notice issued by the bureau, also known as a 2 native brewery, is authorized to sell, at wholesale, no more 3 than 30,000 barrels of beer on an annual basis to off-premises 4 licensees. The bill increases this to no more than 38,000 5 barrels of beer. 6 The bill imposes a manufacturing limit on a wine 7 manufacturer that holds a class A wine permit and a basic 8 permit issued by the bureau of no more than 150,000 gallons of 9 wine annually. 10 The bill eliminates the $10,000 bond requirement for class 11 A beer permit holders and the $5,000 bond requirement for 12 class A wine permit holders. 13 -8- LSB 2678SV (2) 91 ll/ns 8/ 8