Senate Study Bill 1193 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT) A BILL FOR An Act concerning alcoholic beverage control. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2678XC (3) 91 ll/ns
S.F. _____ Section 1. Section 123.30, subsection 4, Code 2025, is 1 amended to read as follows: 2 4. Notwithstanding any provision of this chapter to the 3 contrary, a person holding a retail alcohol license to sell 4 alcoholic beverages for consumption on the licensed premises 5 may permit a customer to remove one unsealed bottle of wine 6 for consumption off the premises if the customer has purchased 7 and consumed a portion of the bottle of wine on the licensed 8 premises. The licensee or the licensees agent shall securely 9 reseal such bottle in a bag designed so that it is visibly 10 apparent that the resealed bottle of wine has not been tampered 11 with and provide a dated receipt for the resealed bottle of 12 wine to the customer. A wine bottle resealed pursuant to the 13 requirements of this subsection is subject to the requirements 14 of sections 321.284 and 321.284A . A person holding a retail 15 alcohol license to sell alcoholic beverages for consumption on 16 the licensed premises may permit a customer to carry an open 17 container of wine from the persons licensed premises into 18 another immediately adjacent licensed premises that is covered 19 by a license or permit that authorizes the consumption of wine, 20 a temporarily closed public right-of-way, or a private place. 21 Sec. 2. Section 123.30, Code 2025, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 5. a. Notwithstanding any provision of 24 this chapter to the contrary, a person holding a retail alcohol 25 license to sell alcoholic beverages for consumption on the 26 licensed premises may permit a customer to carry an alcoholic 27 beverage in an open container from the licensed premises to any 28 of the following immediately adjacent locations: 29 (1) A licensed premises authorized to sell the same type of 30 alcoholic beverage for consumption on the licensed premises. 31 (2) A temporarily closed public right-of-way. 32 (3) A private place. 33 b. The licensee of the immediately adjacent licensed 34 premises, or owner of the immediately adjacent private 35 -1- LSB 2678XC (3) 91 ll/ns 1/ 7
S.F. _____ place, may refuse to allow the customer to enter the licensed 1 premises or private place with an alcoholic beverage in an open 2 container. 3 Sec. 3. Section 123.43, Code 2025, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 5. For purposes of this section, 6 premises , in addition to premises as defined in section 123.3, 7 may include any of the following noncontiguous locations, 8 provided that such noncontiguous locations are approved by the 9 alcohol and tobacco tax and trade bureau of the United States 10 department of the treasury: 11 a. Any number of locations which are only separated from 12 the premises as defined in section 123.3 by public waterways, 13 roads, or carrier rights-of-way. 14 b. Any number of locations in the same general location as 15 the premises as defined in section 123.3. 16 c. An additional warehouse or warehouses, located somewhere 17 other than on the premises as defined in section 123.3 or a 18 location described in paragraph a or b . 19 Sec. 4. Section 123.43A, subsection 6, paragraph a, Code 20 2025, is amended to read as follows: 21 a. Notwithstanding any provision of this chapter to the 22 contrary or the fact that a person is the holder of a class 23 A native distilled spirits license, a native distillery may 24 be granted a class C retail alcohol license as defined in 25 section 123.30 for the same premises licensed under a class 26 A native distilled spirits license where the manufacturing 27 of native distilled spirits occurs. A native distillery may 28 be granted not more than two three class C retail alcohol 29 licenses. A native distillery may be issued a class C retail 30 alcohol license regardless of whether the native distillery is 31 also a manufacturer of beer pursuant to a class A beer permit 32 or a manufacturer of native wine pursuant to a class A wine 33 permit. 34 Sec. 5. Section 123.45, subsection 3, paragraph b, Code 35 -2- LSB 2678XC (3) 91 ll/ns 2/ 7
S.F. _____ 2025, is amended to read as follows: 1 b. Notwithstanding any other provision of this chapter or 2 the fact that a person is the holder of a class A beer permit, 3 a native brewery may be granted a class C retail alcohol 4 license or a special class C retail alcohol license, both 5 as defined in section 123.30 , for the same premises licensed 6 under a class A beer permit where the manufacturing of beer 7 occurs. A native brewery may be granted not more than two 8 three class C retail alcohol licenses or two special class 9 C retail alcohol licenses. A native brewery may be issued a 10 class C retail alcohol license or a special class C retail 11 alcohol license regardless of whether that person is also a 12 manufacturer of native distilled spirits pursuant to a class 13 A native distilled spirits license or a manufacturer of 14 native wine pursuant to a class A wine permit. 15 Sec. 6. Section 123.127, subsection 2, paragraph g, Code 16 2025, is amended by striking the paragraph. 17 Sec. 7. Section 123.130, subsection 1, paragraph a, Code 18 2025, is amended to read as follows: 19 a. Any person holding a class A beer permit issued by 20 the department shall be authorized to manufacture and sell, or 21 sell at wholesale, beer for consumption off the premises, such 22 sales within the state to be made only to persons holding a 23 subsisting class A beer permit, or retail alcohol licenses, 24 excluding a special class B retail native wine license, 25 issued in accordance with the provisions of this chapter . 26 However, a person holding a class A beer permit issued by 27 the department who also holds a brewers notice issued by the 28 alcohol and tobacco tax and trade bureau of the United States 29 department of the treasury shall be authorized to sell, at 30 wholesale, no more than thirty thirty-eight thousand barrels 31 of beer on an annual basis for consumption off the premises to 32 a licensee licensees authorized under this chapter to sell beer 33 at retail. 34 Sec. 8. Section 123.130, subsection 2, Code 2025, is amended 35 -3- LSB 2678XC (3) 91 ll/ns 3/ 7
S.F. _____ to read as follows: 1 2. Pursuant to section 123.45, subsection 3 , a native 2 brewery may be granted not more than two three class C retail 3 alcohol licenses or not more than two three special class C 4 retail alcohol licenses. 5 Sec. 9. Section 123.173, subsection 2, Code 2025, is amended 6 to read as follows: 7 2. A class A wine permit allows the holder to manufacture 8 and sell, or sell at wholesale, in this state, wine. The 9 holder of a class A wine permit may manufacture in this state 10 wine having an alcoholic content greater than seventeen percent 11 by weight or twenty-one and twenty-five hundredths percent 12 of alcohol by volume for shipment outside this state. All 13 class A premises shall be located within the state. However, 14 a native winery holding a class A wine permit issued by 15 the department who also holds a basic permit issued by the 16 alcohol and tobacco tax and trade bureau of the United States 17 department of the treasury shall be authorized to sell, at 18 wholesale, no more than one hundred fifty thousand gallons of 19 wine on an annual basis for consumption off the premises to 20 licensees authorized under this chapter to sell wine at retail. 21 Sec. 10. Section 123.175, subsection 2, paragraph g, Code 22 2025, is amended by striking the paragraph. 23 Sec. 11. Section 123.176, subsection 5, paragraph a, Code 24 2025, is amended to read as follows: 25 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 A 31 wine permit where the manufacturing of native wine occurs. A 32 manufacturer of native wine may be granted not more than two 33 three class C retail alcohol licenses or special class C 34 retail native wine licenses. A manufacturer of native wine 35 -4- LSB 2678XC (3) 91 ll/ns 4/ 7
S.F. _____ 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 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanations substance by the members of the general assembly. 8 This bill relates to alcoholic beverage control. 9 Under current law, a person holding a retail alcohol license 10 to sell alcoholic beverages for consumption on the licensed 11 premises may permit a customer to carry an open container 12 of wine from the persons licensed premises into another 13 immediately adjacent licensed premises that is covered by a 14 license or permit that authorizes the consumption of wine, a 15 temporarily closed public right-of-way, or a private place. 16 The bill allows a licensee to permit a customer to carry any 17 alcoholic beverage in an open container to an immediately 18 adjacent licensed premises authorized to sell the same type of 19 alcoholic beverage for consumption on the licensed premises, 20 a temporarily closed public right-of-way, or a private place. 21 The bill allows the licensee of the immediately adjacent 22 licensed premises, or owner of the immediately adjacent private 23 place, to refuse to allow the customer to enter the licensed 24 premises or private place with an open container. 25 Under current law, Code section 123.3 defines licensed 26 premises or premises to mean all rooms, enclosures, 27 contiguous areas, or places susceptible of precise description 28 satisfactory to the director of revenue where alcoholic 29 beverages, wine, or beer is sold or consumed under authority 30 of a retail alcohol license, wine permit, or beer permit. 31 A single licensed premises may consist of multiple rooms, 32 enclosures, areas, or places if they are wholly within the 33 confines of a single building or contiguous grounds. For 34 purposes of an application for and issuance of a class A 35 -5- LSB 2678XC (3) 91 ll/ns 5/ 7
S.F. _____ native distilled spirits license, the bill modifies the term 1 premises to include, in addition to the definition in Code 2 section 123.3, any number of locations which are only separated 3 from the premises by public waterways, roads, or carrier 4 rights-of-way, any number of locations in the same general 5 location as the premises, and an additional warehouse or 6 warehouses located elsewhere, if approved by the alcohol and 7 tobacco tax and trade bureau of the United States department of 8 the treasury (bureau). 9 Under current law, the following retail alcohol licenses 10 may be issued to native manufacturers for the same premises 11 where manufacturing occurs: a native distillery may be granted 12 not more than two class C retail alcohol licenses, a native 13 brewery may be granted not more than two class C retail 14 alcohol licenses or two special class C retail alcohol 15 licenses, and a native winery may be granted not more than 16 two class C retail alcohol licenses or two special class 17 C retail native wine licenses. A class C retail alcohol 18 license allows for the sale and on-premises consumption of 19 alcoholic liquor, wine, or beer and the sale of alcoholic 20 liquor, wine, and beer in original unopened containers for 21 consumption off the premises. A special class C retail 22 alcohol license allows for the sale and consumption of wine 23 and beer on the premises and the sale of wine and beer in 24 original unopened containers for consumption off the premises. 25 A special class C retail native wine license allows beer and 26 native wine to be sold for on- or off-premises consumption. 27 The bill allows native manufacturers to be issued not more than 28 three of the currently authorized retail alcohol licenses. 29 Under current law, a class A beer permit holder who also 30 holds a brewers notice issued by the bureau, also known as a 31 native brewery, is authorized to sell, at wholesale, no more 32 than 30,000 barrels of beer on an annual basis to off-premises 33 licensees. The bill increases this to no more than 38,000 34 barrels of beer. 35 -6- LSB 2678XC (3) 91 ll/ns 6/ 7
S.F. _____ The bill imposes a limit on a class A wine permit holder 1 who also holds a basic permit issued by the bureau, also 2 known as a native winery, of no more than 150,000 gallons of 3 wine annually that may be sold at wholesale to off-premises 4 retailers of wine. 5 The bill eliminates the $10,000 bond requirement for class 6 A beer permit holders and the $5,000 bond requirement for 7 class A wine permit holders. 8 -7- LSB 2678XC (3) 91 ll/ns 7/ 7