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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
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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
licensee’s
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
person’s
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
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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
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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.
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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
brewer’s
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
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“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
explanation’s
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
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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
person’s
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
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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
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Under
current
law,
a
class
“A”
beer
permit
holder
who
also
1
holds
a
brewer’s
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.
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