HF 2780

House
File
2780
-
Enrolled
House
File
2780
AN
ACT
RELATING
TO
ALCOHOLIC
BEVERAGE
CONTROL
BY
PROVIDING
FOR
CERTIFICATES
OF
COMPLIANCE
AND
THE
ISSUANCE
OF
CLASS
“A”
WINE
PERMITS
TO
NONNATIVE
WINE
MANUFACTURERS,
PERMITTING
CITIES
TO
CREATE
SOCIAL
DISTRICTS
FOR
THE
CONSUMPTION
OF
ALCOHOLIC
BEVERAGES,
AND
PROVIDING
FEES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
123.3,
subsection
40,
paragraph
c,
Code
2026,
is
amended
to
read
as
follows:
c.
Notwithstanding
paragraph
“e”
,
the
applicant
is
a
citizen
of
the
United
States
and
a
resident
of
this
state,
or
licensed
to
do
business
in
this
state
in
the
case
of
a
corporation.
Notwithstanding
paragraph
“e”
,
in
the
case
of
a
partnership,
only
one
general
partner
need
be
a
resident
of
this
state.
The
residency
requirements
of
this
paragraph
do
not
apply
to
an
applicant
for
a
class
“A”
wine
permit
issued
to
a
nonnative
wine
manufacturer
pursuant
to
section
123.176A.
Sec.
2.
Section
123.23,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
Any
manufacturer,
distiller,
or
importer
of
alcoholic
liquors
shipping,
selling,
or
having
alcoholic
liquors
brought
into
this
state
for
resale
by
the
state
department
shall,
as
a
condition
precedent
to
the
privilege
of
so
trafficking
in
alcoholic
liquors
in
this
state,
annually
make
application
for
and
hold
a
distiller’s
certificate
of
compliance
which
shall
House
File
2780,
p.
2
be
issued
by
the
director
for
that
purpose.
No
A
brand
of
alcoholic
liquor
brought
into
this
state
shall
not
be
sold
by
the
department
in
this
state
unless
the
manufacturer,
distiller,
or
importer
,
and
all
other
persons
participating
in
the
distribution
of
that
brand
in
this
state
have
has
obtained
a
certificate.
The
certificate
of
compliance
shall
expire
at
the
end
of
one
year
from
the
date
of
issuance
and
shall
be
renewed
for
a
like
period
upon
application
to
the
director
unless
otherwise
suspended
or
revoked
for
cause.
Each
completed
application
for
a
certificate
of
compliance
or
renewal
shall
be
submitted
electronically,
or
in
a
manner
prescribed
by
the
director,
and
shall
be
accompanied
by
a
fee
of
two
hundred
dollars
payable
to
the
department.
However,
this
subsection
need
not
apply
to
a
manufacturer,
distiller,
or
importer
who
ships
or
sells
in
this
state
no
more
than
eleven
gallons
or
its
case
equivalent
during
any
fiscal
year
as
a
result
of
“special
orders”
which
might
be
placed,
as
defined
and
allowed
by
departmental
rules
adopted
under
this
chapter
.
Sec.
3.
Section
123.23,
subsection
5,
Code
2026,
is
amended
by
striking
the
subsection.
Sec.
4.
Section
123.30,
subsection
5,
paragraph
a,
Code
2026,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(4)
A
social
district,
if
the
holder
of
the
retail
alcohol
license
is
a
participating
licensee
within
a
social
district
and
in
compliance
with
the
ordinance
adopted
under
section
414.34.
Sec.
5.
Section
123.46,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
a.
A
person
shall
not
use
or
consume
alcoholic
liquor,
wine,
or
beer
upon
the
public
streets
or
highways.
A
person
shall
not
use
or
consume
alcoholic
liquor
in
any
public
place
except
premises
covered
by
a
retail
alcohol
license.
A
person
shall
not
possess
or
consume
alcoholic
liquors,
wine,
or
beer
on
public
school
property
or
while
attending
a
public
or
private
school-related
function.
A
person
shall
not
be
intoxicated
in
a
public
place.
A
person
violating
this
subsection
is
guilty
of
a
simple
misdemeanor.
b.
Notwithstanding
paragraph
“a”
,
a
person
may
possess
or
consume
alcoholic
liquor,
wine,
or
beer
upon
the
public
House
File
2780,
p.
3
streets,
highways,
or
public
places
within
a
social
district
if
the
possession
or
consumption
complies
with
the
ordinance
adopted
under
section
414.34.
Sec.
6.
Section
123.135,
subsections
1,
2,
and
3,
Code
2026,
are
amended
to
read
as
follows:
1.
A
manufacturer,
brewer,
bottler,
importer,
or
vendor
of
beer,
or
any
agent
thereof,
desiring
to
ship
or
sell
beer,
or
have
beer
brought
into
this
state
for
resale
by
a
class
“A”
beer
permittee,
shall
first
make
application
for
and
be
issued
a
brewer’s
certificate
of
compliance
by
the
director
for
that
purpose.
The
certificate
of
compliance
expires
at
the
end
of
one
year
from
the
date
of
issuance
and
shall
be
renewed
for
a
like
period
upon
application
to
the
director
unless
otherwise
revoked
for
cause.
Each
completed
application
for
a
certificate
of
compliance
or
renewal
of
a
certificate
shall
be
submitted
electronically,
or
in
a
manner
prescribed
by
the
director,
and
shall
be
accompanied
by
a
fee
of
two
hundred
dollars
payable
to
the
department.
Each
holder
of
a
certificate
of
compliance
shall
furnish
the
information
in
a
manner
the
director
requires.
The
holder
of
a
brewer’s
certificate
of
compliance
may
also
hold
a
class
“A”
beer
permit.
2.
At
the
time
of
applying
for
a
certificate
of
compliance,
each
applicant
shall
file
with
the
department
electronically,
or
in
a
manner
prescribed
by
the
director,
a
list
of
all
class
“A”
beer
permittees
with
whom
it
intends
to
do
business
and
shall
designate
a
designation
of
the
geographic
area
in
which
its
products
are
to
be
distributed
by
such
permittee.
The
listing
of
class
“A”
beer
permittees
and
geographic
area
as
filed
with
the
department
shall
be
amended
by
the
holder
of
a
certificate
of
compliance
as
necessary
to
keep
the
listing
current
with
the
department.
3.
All
class
“A”
beer
permit
holders
shall
sell
only
those
brands
of
beer
brought
into
the
state
which
are
manufactured,
brewed,
bottled,
shipped,
or
imported
by
a
person
holding
a
current
certificate
of
compliance.
Any
employee
or
agent
working
for
or
representing
the
holder
of
a
certificate
of
compliance
within
this
state
shall
submit
electronically,
or
in
a
manner
prescribed
by
the
director,
the
employee’s
or
agent’s
House
File
2780,
p.
4
name
and
address
with
the
department.
Sec.
7.
Section
123.173,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
A
class
“A”
wine
permit
allows
the
holder
to
manufacture
and
sell,
or
sell
at
wholesale,
in
this
state,
wine.
The
holder
of
a
class
“A”
wine
permit
may
manufacture
in
this
state
wine
having
an
alcoholic
content
greater
than
seventeen
percent
by
weight
or
twenty-one
and
twenty-five
hundredths
percent
of
alcohol
by
volume
for
shipment
outside
this
state.
All
Except
as
provided
in
section
123.176A,
all
class
“A”
premises
shall
be
located
within
the
state.
Sec.
8.
Section
123.175,
subsection
2,
paragraph
c,
Code
2026,
is
amended
to
read
as
follows:
c.
That
the
applicant
is
a
citizen
resident
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
.
The
residency
requirement
of
this
paragraph
does
not
apply
to
a
nonnative
wine
manufacturer
under
section
123.176A.
Sec.
9.
NEW
SECTION
.
123.176A
Nonnative
wine
manufacturers.
1.
As
used
in
this
section,
“nonnative
wine
manufacturer”
means
a
person
who
processes
the
fruit,
vegetables,
dandelions,
clover,
honey,
or
any
combination
of
these
ingredients,
by
fermentation
into
wines
on
a
premises
located
outside
of
this
state.
2.
A
nonnative
wine
manufacturer
licensed
or
permitted
pursuant
to
laws
regulating
alcoholic
beverages
in
another
state
may
apply
for
and
be
issued
a
class
“A”
wine
permit,
as
provided
in
section
123.175,
without
being
a
resident
of
this
state.
3.
A
nonnative
wine
manufacturer
holding
a
class
“A”
wine
permit
may
sell,
or
sell
at
wholesale,
in
this
state,
wine
that
the
nonnative
wine
manufacturer
has
itself
manufactured
by
fermentation
on
its
out-of-state
licensed
or
permitted
premises,
provided
the
wine
is
properly
registered
with
the
alcohol
and
tobacco
tax
and
trade
bureau
of
the
United
States
department
of
the
treasury.
Pursuant
to
section
123.177,
such
sales
shall
only
be
made
to
persons
holding
a
class
“A”
wine
House
File
2780,
p.
5
permit
or
to
persons
holding
a
retail
alcohol
license.
4.
A
nonnative
wine
manufacturer
shall
not
sell
in
this
state
wine
fermented
by
another
manufacturer.
5.
A
nonnative
wine
manufacturer
may
ship
wine
in
closed
containers
to
individual
purchasers
within
this
state
by
obtaining
a
wine
direct
shipper
permit
pursuant
to
section
123.187.
6.
A
nonnative
wine
manufacturer
that
holds
a
class
“A”
wine
permit
shall
be
deemed
to
have
consented
to
the
jurisdiction
of
the
department
or
any
other
agency
or
court
in
this
state
concerning
enforcement
of
this
chapter
and
any
related
laws,
rules,
or
regulations.
A
permit
holder
shall
allow
the
department
to
perform
an
audit
of
manufacturing
and
sales
records
upon
request.
7.
A
violation
of
this
section
shall
subject
the
permit
holder
to
the
general
penalties
provided
in
this
chapter
and
shall
constitute
grounds
for
imposition
of
a
civil
penalty
or
suspension
or
revocation
of
the
permit
pursuant
to
section
123.39.
Sec.
10.
Section
123.177,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
A
class
“A”
wine
permit
holder
may
purchase
and
resell
only
those
brands
of
wine
brought
into
the
state
which
are
manufactured,
fermented,
bottled,
shipped,
or
imported
by
a
person
holding
a
certificate
of
compliance
issued
pursuant
to
section
123.180
.
Sec.
11.
Section
123.179,
Code
2026,
is
amended
to
read
as
follows:
123.179
Wine
permit
and
license
fees.
1.
The
annual
permit
fee
for
a
class
“A”
wine
permit
that
is
not
issued
to
a
native
wine
manufacturer
is
seven
hundred
fifty
dollars
,
except
the
annual
permit
fee
for
a
class
“A”
wine
permit
issued
to
a
native
wine
manufacturer
as
provided
in
section
123.176
or
a
nonnative
wine
manufacturer
as
provided
in
section
123.176A
is
one
hundred
dollars
.
2.
The
annual
permit
fee
for
a
class
“A”
wine
permit
issued
to
a
native
wine
manufacturer
is
one
hundred
dollars.
3.
2.
The
fee
for
a
charity
beer,
spirits,
and
wine
special
event
license
is
one
hundred
dollars.
House
File
2780,
p.
6
4.
3.
The
fee
for
a
wine
auction
permit
is
one
hundred
dollars.
Sec.
12.
Section
123.180,
subsections
1,
2,
and
3,
Code
2026,
are
amended
to
read
as
follows:
1.
A
manufacturer,
vintner,
bottler,
importer,
or
vendor
of
wine,
or
an
agent
thereof,
desiring
to
ship,
sell,
or
have
wine
brought
into
this
state
for
sale
at
wholesale
resale
by
a
class
“A”
wine
permittee
shall
first
make
application
for
and
shall
be
issued
a
vintner’s
certificate
of
compliance
by
the
director
for
that
purpose.
The
vintner’s
certificate
of
compliance
shall
expire
at
the
end
of
one
year
from
the
date
of
issuance
and
shall
be
renewed
for
a
like
period
upon
application
to
the
director
unless
otherwise
revoked
for
cause.
Each
completed
application
for
a
vintner’s
certificate
of
compliance
or
renewal
of
a
certificate
shall
be
submitted
electronically,
or
in
a
manner
prescribed
by
the
director,
and
shall
be
accompanied
by
a
fee
of
two
hundred
dollars
payable
to
the
department.
Each
holder
of
a
vintner’s
certificate
of
compliance
shall
furnish
the
information
required
by
the
director
in
the
form
the
director
requires.
A
vintner
or
wine
bottler
whose
plant
is
located
in
Iowa
and
who
otherwise
holds
a
class
“A”
wine
permit
to
sell
wine
at
wholesale
is
exempt
from
the
fee,
but
not
the
other
terms
and
conditions.
The
holder
of
a
vintner’s
certificate
of
compliance
may
also
hold
a
class
“A”
wine
permit.
2.
At
the
time
of
applying
for
a
vintner’s
certificate
of
compliance,
each
applicant
shall
file
with
the
department
electronically,
or
in
a
manner
prescribed
by
the
director,
a
list
of
all
class
“A”
wine
permittees
with
whom
it
intends
to
do
business.
The
listing
of
class
“A”
wine
permittees
as
filed
with
the
department
shall
be
amended
by
the
holder
of
the
certificate
of
compliance
as
necessary
to
keep
the
listing
current
with
the
department.
3.
a.
Except
as
provided
in
paragraph
“b”
,
all
class
“A”
wine
permit
holders
shall
sell
only
those
brands
of
wine
brought
into
the
state
which
are
manufactured,
bottled,
fermented,
shipped,
or
imported
by
a
person
holding
a
current
vintner’s
certificate
of
compliance.
An
employee
or
agent
working
for
or
representing
the
holder
of
a
vintner’s
House
File
2780,
p.
7
certificate
of
compliance
within
this
state
shall
register
the
employee’s
or
agent’s
name
and
address
with
the
department
electronically,
or
register
in
a
manner
prescribed
by
the
director
.
These
names
and
addresses
shall
be
filed
with
the
department’s
copy
of
the
certificate
of
compliance
issued
except
that
this
provision
does
not
require
the
listing
of
those
persons
who
are
employed
on
the
premises
of
a
bottling
plant,
or
winery
where
wine
is
manufactured,
fermented,
or
bottled
in
Iowa
or
the
listing
of
those
persons
who
are
thereafter
engaged
in
the
transporting
of
the
wine.
b.
A
class
“A”
wine
permit
holder
may
sell
brands
of
wine
brought
into
the
state
which
are
not
manufactured,
bottled,
fermented,
shipped,
or
imported
by
a
person
holding
a
current
vintner’s
certificate
of
compliance
if
the
brands
of
wine
were
purchased
from
a
private
sale
pursuant
to
section
123.171,
subsection
4
,
or
if
authorized
by
the
laws
of
another
state.
Sec.
13.
NEW
SECTION
.
414.34
Social
districts.
1.
As
used
in
this
section:
a.
“Marked
container”
means
a
nonglass
container
that
identifies
the
retail
alcohol
licensee
providing
the
alcoholic
liquor,
beer,
or
wine
in
the
container
to
the
consumer
within
the
social
district.
b.
“Retail
alcohol
licensee”
means
the
holder
of
a
class
“C”
or
special
class
“C”
license
issued
under
section
123.30.
c.
“Social
district”
means
a
defined
area
in
which
the
possession
and
consumption
of
alcoholic
liquor,
wine,
and
beer
is
allowed
on
public
streets,
sidewalks,
and
other
public
spaces
within
the
boundaries
of
the
district
that
are
consistent
with
this
section.
2.
A
city
may
define
an
area
by
ordinance
that
designates
a
social
district
for
use
by
retail
alcohol
licensees.
3.
An
ordinance
adopted
pursuant
to
this
section
must
include
all
of
the
following:
a.
A
legal
description
or
map
of
the
district.
b.
The
days
and
hours
the
possession
and
consumption
of
alcoholic
liquor,
wine,
and
beer
are
permitted
on
public
streets,
sidewalks,
and
other
public
places
within
the
district.
c.
Requirements
for
marked
container
use
and
identification.
House
File
2780,
p.
8
d.
Participation
requirements
for
retail
alcohol
licensees
within
the
district.
e.
Enforcement
provisions
and
penalties
for
violations.
f.
Procedures
for
the
revocation
or
suspension
of
all
of
the
following:
(1)
The
participation
of
retail
alcohol
licensees
for
violations.
(2)
The
social
district
itself
for
public
safety
concerns
or
other
matters.
4.
An
ordinance
adopted
by
a
city
shall
not
be
construed
to
authorize
any
of
the
following:
a.
Consumption
of
an
alcoholic
beverage
in
a
motor
vehicle
or
on
the
public
streets,
sidewalks,
and
other
public
spaces
during
the
times
when
the
ordinance
is
not
in
effect.
b.
Possession
or
consumption
of
an
alcoholic
beverage
in
a
manner
contrary
to
the
provisions
of
chapter
123
except
as
otherwise
provided
by
an
ordinance
adopted
pursuant
to
this
section.
c.
A
prohibition
on
any
participating
retail
alcohol
licensee
or
other
establishment
located
within
the
social
district
from
denying
entry
to
the
premises
of
the
licensee
or
establishment
to
persons
who
possess
alcoholic
beverages
from
other
participating
retail
alcohol
licensees.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2780,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor