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STATE OF IOWA
KIM REYNOLDS
G OVERNOR
April 25, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 470, an Act relating to alcoholic beverages, including license authorizations,
bond requirements, and fee determinations, and including effective date and applicability
provisions.
"hhe above House File is hereby approved on this date.
Since]ply,
Kim Reynolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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House File 470
AN ACT
RELATING TO ALCOHOLIC BEVERAGES, INCLUDING LICENSE
AUTHORIZATIONS, BOND REQUIREMENTS, AND FEE DETERMINATIONS,
AND INCLUDING EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
DEFINITIONS — LICENSE AUTHORIZATIONS — BOND REQUIREMENTS
Section 1. Section 123.3, subsections 10 and 32, Code 2025,
are amended to read as follows:
10. - Canned cocktail - means a mixed drink or cocktail, the
alcohol component of which is primarily composed of alcoholic
liquor, that is premixed and packaged in a metal can and
contains more than one-half of one percent of alcohol by volume
but not more than fifteen percent of alcohol by volume. A
mixed drink or cocktail mixed and packaged in a metal can
pursuant to section 123.49, subsection 2, paragraph " d - ,
subparagraph ( 3), shall not be considered a canned cocktail.
32. "Mixed drink or cocktail - means an alcoholic beverage,
composed in whole or in part of alcoholic liquor, wine, or
beer, that is combined with other alcoholic beverages or
nonalcoholic beverages or ingredients including but not limited
to ice, water, soft drinks, or flavorings.
Sec. 2. Section 123.30, subsection 1, paragraph a, Code
2025, is amended to read as follows:
House File 470, p. 2
a. A retail alcohol license may be issued to any person
who is of good moral character as defined by this chapter, the
state of Iowa, or any state agency as defined in section 669.2.
Sec. 3. Section 123.30, subsection 3, paragraph b,
subparagraph ( 2), subparagraph division ( c), Code 2025, is
amended to read as follows:
( c) The holder of a special class " C" retail alcohol
license shall be authorized to sell wine and beer to patrons
by the individual drink for consumption on the premises only.
However, wine and beer in original unopened containers may
also be sold for consumption off the premises. In addition, a
mixed drink or cocktail that does not contain alcoholic liquor
may be sold for consumption off the premises subject to the
requirements of section 123.49, subsection 2, paragraph - d"".
Sec. 4. Section 123.30, subsection 4, Code 2025, is amended
to read as follows:
4. Notwithstanding any provision of this chapter to the
contrary, a person holding a retail alcohol license to sell
alcoholic beverages for consumption on the licensed premises
may permit a customer to remove one unsealed bottle of wine
for consumption off the premises if the customer has purchased
and consumed a portion of the bottle of wine on the licensed
premises. The licensee or the licensee's agent shall securely
reseal such bottle in a bag designed so that it is visibly
apparent that the resealed bottle of wine has not been tampered
with and provide a dated receipt for the resealed bottle of
wine to the customer. A wine bottle resealed pursuant to the
requirements of this subsection is subject to the requirements
of sections 321.284 and 321.284A. A person holding a retail
alcohol liccn3c to 3cll alcoholic beverages for consumption on
another immediately adjacent lic-Cmn3ed premises that is covered
ainc,
Sec. 5. Section 123.30, Code 2025, is amended by adding the
following new subsection:
NEW SUBSECTION. 5. a. Notwithstanding any provision of
this chapter to the contrary, a person holding a retail alcohol
House File 470, p. 3
license to sell alcoholic beverages for consumption on the
licensed premises may permit a customer to carry an alcoholic
beverage in an open container from the licensed premises to any
of the following immediately adjacent locations:
( 1) A licensed premises authorized to sell the same type of
alcoholic beverage for consumption on the licensed premises.
( 2) A temporarily closed public right-of-way.
( 3) A private place.
b. The licensee of the immediately adjacent licensed
premises, or owner of the immediately adjacent private
place, may refuse to allow the customer to enter the licensed
premises or private place with an alcoholic beverage in an open
container.
Sec. 6. Section 123.31, subsection 2, paragraphs b and c,
Code 2025, are amended to read as follows:
b. That the applicant is a person of good moral character
as provided in section 123.3, subsection 40. This paragraph
does not apply if the applicant is the state of Iowa or a state
agency as defined in section 669.2.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state. This paragraph does not apply if the
applicant is the state of Iowa or a state agency as defined in
section 669.2.
Sec. 7. Section 123.31C, subsection 1, Code 2025, is amended
to read as follows:
1. A person holding a special class " C - retail native
wine license may sell beer and native wine only at retail for
consumption on or off the premises. Sales of beer and native
wine for consumption off the premises made pursuant to this
section shall be made in original containers except as provided
in subsection 5. A sale of a mixed drink or cocktail that does
not contain alcoholic liquor may be sold for consumption off
the premises subject to the requirements of section 123.49,
subsection 2, paragraph " d - .
Sec. 8. Section 123.43, subsection 2, paragraphs b and c,
Code 2025, are amended to read as follows:
b. That the applicant is a person of good moral character
as provided in section 123.3, subsection 40. This paragraph
House File 470, p. 4
does not apply if the applicant is the state of Iowa or a state
agency as defined in section 669.2.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state. This paragraph does not apply if the
applicant is the state of Iowa or a state agency as defined in
section 669.2.
Sec. 9. Section 123.43, Code 2025, is amended by adding the
following new subsection:
NEW SUBSECTION. 5. For purposes of this section,
'premises - , in addition to premises as defined in section 123.3,
may include any of the following noncontiguous locations,
provided that such noncontiguous locations are approved by the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury:
a. Any number of locations which are only separated from
the premises as defined in section 123.3 by public waterways,
roads, or carrier rights- of- way.
b. Any number of locations in the same general location as
the premises as defined in section 123.3.
c. An additional warehouse or warehouses, located somewhere
other than on the premises as defined in section 123.3 or a
location described in paragraph ' a - or ' b - .
Sec. 10. Section 123.49, subsection 2, paragraph d,
subparagraphs ( 2), ( 3), and ( 4), Code 2025, are amended to read
as follows:
( 2) Mixed drinks or cocktails mixed on the premises that are
not for immediate consumption may be consumed on the licensed
premises subject to the requirements of this subparagraph
pursuant te rules adepted by the departmen as follows:
( a) The rulC3 Shall provide that the mixed drinks or
cocktails shall be stored, for no longer than 3cventy two
hours, in the shortest period outlined in the minimum standards
of the specific ingredients of the mixed drink or cocktail
in the rules established by the department of inspections,
appeals, and licensing to protect consumers from foodborne
illness as described in section 137F.2. A licensee who mixes,
stores, and allows the consumption of mixed drinks or cocktails
that are not for immediate consumption shall comply with all
House File 470, p. 5
applicable state and federal food safety laws and regulations.
( b) A mixed drink or cocktail that is not for immediate
consumption shall be mixed, stored, and dispensed on the
licensed premises from a labeled container in a quantity
that does not exceed three gallons. The rules shall also
previde that A mixed drink or cocktail, or portion thereof,
not consumed within the time frame outlined in subparagraph
division ( a) is considered expired and must be destroyed. An
expired mixed drink or cocktail shall not be added to an empty
container and relabeled or added to another mixed drink or
cocktail.
( i) A mixed drink or cocktail that is not for immediate
consumption shall at all times be in a container compliant with
applicable state and federal food
The mixed drink or cocktail shall
in the same container. The mixed
removed from the stored container
mixed drink or cocktail order upon
the mixed drink or cocktail or for
container. The pourable container
safety laws and regulations.
be mixed and remain stored
drink or cocktail shall be
to compound and fulfill a
receipt of the order for
transfer into a pourable
shall have affixed a label
compliant with subparagraph subdivision ( ii) displaying label
information identical to that on the container from which the
contents were poured. The expiration date and time shall not
be extended by the transfer of product to a pourable container.
The mixed drink or cocktail may be strained into another
container when the mixed drink or cocktail is returned without
delay to the labeled container from which it was strained and
the container and process are compliant with applicable state
and federal food safety laws and regulations. An original
container of alcoholic liquor or an original container of wine
shall not be used to mix, store, or dispense a mixed drink or
cocktail. The mixed drink or cocktail shall not be mixed,
stored, or dispensed from a container bearing an alcoholic
beverage name brand. A dispensing machine which contains a
mixed drink or cocktail is subject to the requirements and
restrictions of this subparagraph ( 2).
( ii) A label must be placed on a container when the contents
of the mixed drink or cocktail are placed into the empty
container. The label shall be affixed to the container in a
House File 470, p. 6
conspicuous place. The label must legibly identify the month,
day, year, and time the contents are placed into the empty
container. The label must legibly identify the month, day,
year, and time the contents expire. The label must legibly
specify the title of the recipe used for the contents of the
container. The label must legibly identify the person who
prepared the contents of the container. The label must legibly
identify the size of the batch within the container and be
conspicuously marked with the words - CONTAINS ALCOHOL". The
label shall be removed from the container once the entire
contents have been consumed, transferred to a pourable
container, or destroyed and disposed of in accordance with
applicable law. A label shall not be reused, and a removed
label shall not be reapplied to a container. A new label shall
be placed on the container for each prepared batch of mixed
drinks or cocktails that is not for immediate consumption.
( iii) A mixed drink or cocktail that is not for immediate
consumption shall not include added flavors and other
nonbeverage ingredients inelu-ded the mixcd drinks or
ee. ,•.s shall et ine-lude containing hallucinogenic
substances or added caffeine or other added stimulants
including but not limited to guarana, ginseng, and taurine.
The rulc3 shall al3o rcquirc that the A licensee is limited to
utilizing alcoholic beverages in the mixed drink or cocktail
that are authorized by the retail alcohol license and obtained
as prescribed by this chapter.
( iv) The licensee shall keep records as to when the contents
in each prepared batch of mixed drinks or cocktails are mixed
in a particular container weT-c mixcd and the recipe used for
that mixture. The records must include the month, day, year,
and time the contents are placed into the empty container,
each alcoholic beverage, including the brand and the amount
utilizing the metric system, and each nonalcoholic ingredient
placed in the container. The recipe must contain the title
and directions for preparing the contents, the identity of the
person who prepared the contents of the container, and the
size of the batch. The records must include the month, day,
year, and time the contents of the container are destroyed
and disposed of, the identity of the person who destroyed
House File 470, p. 7
and disposed of the contents, and the method of destruction
and disposal, or a statement that the contents were entirely
consumed. Records shall be maintained on the licensed premises
for a period of three years and shall be open to inspection
pursuant to section 123.33.
( c) In addition, mixed drinks or cocktails mixed on the
premises pursuant to this subparagraph ( 2) may be sold for
consumption off the licensed premises as provided in and
subject to the requirements of subparagraph ( 3).
( 3) Mixed drinks or cocktails mixed on premises covered by
a class - C" or special class - C" retail alcohol license, or a
special class - C" retail native wine license, for consumption
off the licensed premises may be sold if the mixed drink or
cocktail is immediately filled in a sealed container and is
promptly taken from the licensed premises prior to consumption
of the mixed drink or cocktail. A mixed drink or cocktail
that is sold in a sealed container in compliance with the
requirements of this subparagraph and rules adopted by the
department shall not be deemed an open container subject to the
requirements of sections 321.284 and 321.284A if the sealed
container is unopened and the seal has not been tampered with,
and the contents of the container have not been partially
removed.
( 4) For purposes of this paragraph:
( a) " Immediate consumption - means the compounding and
fulfillment of a mixed drink or cocktail order upon receipt of
the order for the mixed drink or cocktail.
+ a+ ( b) " Sealed container - means a vessel containing a
mixed drink or cocktail that is designed to prevent consumption
without removal of a tamper- evident lid, cap, or seal. ' Sealed
container - does not include a container with a sipping hole
or other opening for a straw, a cup made of plastic that
is intended for one-time use, or a cup made of paper or
polystyrene foam.
( b) ( c) - Tamper-evident"" means a lid, cap, or seal that
visibly demonstrates when a container has been opened.
Sec. 11. Section 123.127, subsection 2, paragraphs b and c,
Code 2025, are amended to read as follows:
b. That the applicant is a person of good moral character
House File 470, p. 8
as provided in section 123.3, subsection 40. This paragraph
does not apply if the applicant is the state of Iowa or a state
agency as defined in section 669.2.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state. This paragraph does not apply if the
applicant is the state of Iowa or a state agency as defined in
section 669.2.
Sec. 12. Section 123.127, subsection 2, paragraph g, Code
2025, is amended by striking the paragraph.
Sec. 13. Section 123.175, subsection 2, paragraphs b and c,
Code 2025, are amended to read as follows:
b. That the applicant is a person of good moral character
as provided in section 123.3, subsection 40. This paragraph
does not apply if the applicant is the state of Iowa or a state
agency as defined in section 669.2.
c. That the applicant is a citizen of the state of Iowa
or, if a corporation, that the applicant is authorized to do
business in the state. This paragraph does not apply if the
applicant is the state of Iowa or a state agency as defined in
section 669.2.
Sec. 14. Section 123.175, subsection 2, paragraph g, Code
2025, is amended by striking the paragraph.
Sec. 15. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION II
LICENSE FEE DETERMINATION
Sec. 16. Section 123.36, subsection 1, paragraph a,
subparagraph ( 4), Code 2025, is amended to read as follows:
( 4) For premises located outside the corporate limits of
any city, a fee equal to that charged - tom for a premises with-
of the same square footage in the nearest incorporated city
leeated nearest the prefflises to be lieense-d, as determined by
the address assigned by the United States postal service. If
lifnits is the nearest, the 1=eense fee whieh is the largest
Shall prevail. However, if the prcmi3c3 i3 loc-atcd in an
unincorporated town, for purpo3or3 of thi3 paragraph, the
unincorporated town shall be trc-xtcd a3 if it i3 a city.
House File 470, p. 9
Sec. 17. Section 123.36, subsection 1, paragraph c,
subparagraph ( 4), Code 2025, is amended to read as follows:
( 4) Commercial establishments located outside the corporate
limits of any city, a fee equal to that charged in the
incorporated city located nearest the premises to be licensed,
largc3t shall prevail as determined by the address assigned by
the United States postal service. Ilowcvcr, if a commercial
c3tabli3hment i3 located in an unincorporated town, for
purpo3c3 of thi3 paragraph, the unincorporated town shall be
troatcd as if it is a city.
Sec. 18. Section 123.36, subsection 1, paragraph d,
subparagraph ( 4), Code 2025, is amended to read as follows:
( 4) Commercial establishments located outside the corporate
limits of any city, a fee equal to that charged in the
incorporated city located nearest the premises to be licensed,
largest shall prevail as determined by the address assigned by
the United States postal service. However, if a commercial
treated a3 if it is a city.
Sec. 19. Section 123.36, subsection 1, paragraph g,
subparagraph ( 4), Code 2025, is amended to read as follows:
( 4) For premises located outside the corporate limits of
any city, a fee equal to that charged to for a premises with
of the same square footage in the nearest incorporated city
leeated- nearest the premisesto be ' i eense , as determined by
the address assigned by the United States postal service. If
limits is the nearest, the lieense fee whieh is the largest
Shall prevail. However, if the prcmi3e3 is to ated in an
unincorporated town, for purpo3c3 of thi3 paragraph, the
unincorporated town Shall be tr ated as if it is a city.
Sec. 20. APPLICABILITY. This division of this Act applies
to licenses issued or renewed on or after November 10, 2025.
A license issued prior to that date and in effect on that date
House File 470, p. 10
shall continue in full force and effect with the authority
originally granted by the license until expiration or renewal.
PAT GRASSLE
Speaker of'the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 470, Ninety-first General Assembly.
Approved , 2025
MECIZAN NELSON
C
Governor
f the House