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Kim Reynolds
governor
Office of the Governor Chris Cournoyer
LT GOVERNOR
June 02, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 2200, an Act relating to activities in the administration of alcoholic beverage
control by the department of revenue, and including effective date provisions.
The above House File is hereby approved on this date.
Sincerely,
Kim Reynolds 3
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 2200
AN ACT
RELATING TO ACTIVITIES IN THE ADMINISTRATION OF ALCOHOLIC
BEVERAGE CONTROL BY THE DEPARTMENT OF REVENUE, AND INCLUDING
EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 123.3, Code 2026, is amended by adding
the following new subsection:
NEW SUBSECTION . 5A. "Authorized noninstitutional investor"
means a person who has an ownership interest in a business that
manufactures, imports, bottles, sells at wholesale, or sells
at retail alcoholic beverages, if the person meets all of the
following criteria:
House File 2200, p. 2
a. The ownership interest of the person does not exceed five
percent of the entire ownership interest of the business that
manufactures, imports, bottles, sells at wholesale, or sells
at retail alcoholic beverages.
b. The person is not engaged as a director, officer,
employee, broker, or agent of the business that manufactures,
imports, bottles, sells at wholesale, or sells at retail
alcoholic beverages.
Sec. 2. Section 123.5, subsection 3, Code 2026, is amended
to read as follows:
3. Members of the commission shall be chosen on the basis
of managerial ability and experience as business executives.
Not more than two members of the commission may bo the holder
of— or hav e an -i-nter e &t— i-n— a-pe-rmit— o-r license to-manufactur e
alcohol-ic liquor, wino^ or beef-- or to s e ll alcoholic liquor,
wino y or— beer at wholesale or retail directly or indirectly;
individually; as a member of a partnership or an association;
as a member, owner, or stockholder, except as an institutional
investor, of a corporation or other entity; or as a relative to
an individual by blood or marriage within the second degree,
do any of the following:
a. Hold a permit or license to manufacture alcoholic
beverages or sell alcoholic beverages at wholesale or retail .
b. Have an interest in the manufacture of or dealing in
alcoholic beverages or in an enterprise or industry in which
alcoholic beverages are required.
c. Receive a commission or profit on the purchase or sale of
alcoholic beverages by any person.
d. Have an interest in or mortgage or deed of trust on any
land or building where alcoholic beverages are manufactured for
sale, offered for sale, or sold, or in any personal property
used in the manufacture or sale of alcoholic beverages.
Sec. 3. Section 123.5, Code 2026, is amended by adding the
following new subsections:
NEW SUBSECTION . 3A. In addition to the requirements of
chapter 68B, members of the commission shall not directly or
indirectly use the office of the member to influence, persuade,
or induce any person to adopt their political views or to favor
any particular candidate for an elective or appointive public
House File 2200, p. 3
office.
NEW SUBSECTION . 6. This section does not prohibit a
commission member from lawfully purchasing and keeping
alcoholic beverages in the possession of the commission member.
Sec. 4. Section 123.13, Code 2026, is amended by striking
the section and inserting in lieu thereof the following:
123.13 Prohibitions — director and employees.
1. For purposes of this section, "director" means the
director of revenue but does not include the director's
designee.
2. The requirements of this section are in addition to the
requirements of chapter 68B.
3. The director shall not directly or indirectly;
individually; as a member of a partnership or an association;
as a member, owner, or stockholder, except as an institutional
investor, of a corporation or other entity; or as a relative to
an individual by blood or marriage within the second degree,
do any of the following:
a. Have an interest in the manufacture of or dealing in
alcoholic beverages or in an enterprise or industry in which
alcoholic beverages are required.
b. Receive a commission or profit from the purchase or sale
of alcoholic beverages by any person.
c. Have an interest in or mortgage or deed of trust on any
land or building where alcoholic beverages are manufactured for
sale, offered for sale, or sold, or in any personal property
used in the manufacture or sale of alcoholic beverages.
4. An employee of the department shall not license,
permit, or participate in the licensing or permitting of a
person, business, or organization that requires a license or
permit under the laws and rules governing alcoholic beverages,
if the employee has an ownership interest related to that
person, business, or organization, or is in a position to
exercise any control over the purchasing of alcoholic beverages
through a position of employment with the person, business, or
organization.
5. An employee of the department shall not enforce any
law or rule governing alcoholic beverages against a person,
business, or organization that requires a license or permit
House File 2200, p. 4
under the laws and rules governing alcoholic beverages,
if the employee has an ownership interest related to that
person, business, or organization, or is in a position to
exercise any control over the purchase of alcoholic beverages
through a position of employment with the person, business, or
organization.
6. The director or an employee of the department violating
this section or any other provision of this chapter shall, in
addition to any other penalties provided by law, be subject
to disciplinary action up to and including discharge from
employment .
7. This section does not prohibit the director or an
employee of the department from lawfully purchasing and keeping
alcoholic beverages in the possession of the director or the
employee.
Sec. 5. NEW SECTION . 123.45A Authorized noninstitutional
investor — ownership interest — exception.
1. Notwithstanding any other provision of law to the
contrary, an authorized noninstitutional investor of a business
engaged in the manufacturing, importing, bottling, selling at
wholesale, or selling at retail of alcoholic beverages may
directly or indirectly have an ownership interest in another
licensee or permittee authorized under this chapter to sell
at retail alcoholic beverages, if the person remains only
an authorized noninstitutional investor of the licensee or
permittee authorized under this chapter to sell at retail
alcoholic beverages.
2. Any authorized noninstitutional investor of a business
engaged in the manufacturing, importing, bottling, or selling
at wholesale of alcoholic beverages that is also an authorized
noninstitutional investor of another business holding a retail
alcohol license issued under this chapter shall annually
disclose the ownership interest to the department in a manner
prescribed by the director. Notwithstanding chapter 22,
the disclosure made under this subsection shall be kept
confidential by the department.
House File 2200, p. 5
Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate
importance, takes effect upon enactment.
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2200, Ninety-first General Assembly.
MEGHAN NELSON
Chief jClerl f the House
Approved 2026
Governor