The bill amends various sections of the Iowa Code concerning alcoholic beverages, introducing new definitions and altering existing regulations. It defines "canned cocktail" and expands the definition of "mixed drink or cocktail" to include wine and beer. Holders of special class C retail alcohol licenses will now be permitted to sell mixed drinks or cocktails without alcoholic liquor for off-premises consumption, under specific conditions. Additionally, customers will be allowed to carry open containers of alcoholic beverages from licensed premises to adjacent locations, including temporarily closed public right-of-ways and private areas. The bill also removes the previous allowance for customers to carry open containers of wine to adjacent licensed premises and establishes new requirements for the mixing, storage, and labeling of mixed drinks or cocktails not intended for immediate consumption.

Furthermore, the bill amends Section 123.36 of the Code 2025, clarifying licensing fees for premises outside city limits to match those of the nearest incorporated city based on postal addresses. It eliminates ambiguous language regarding the determination of the nearest corporate limits and the treatment of unincorporated towns as cities. The changes will apply to licenses issued or renewed on or after November 10, 2025, while licenses issued prior to this date will remain valid until their expiration or renewal. The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 123.3, 123.30, 123.49, 321.284, 123.36
Reprinted: 123.3, 123.30, 123.49, 321.284, 123.31, 123.175, 123.36