§ 123.45 — General limitations on business interests — licensing of native breweries

Iowa § 123.45

• Jurisdiction: Iowa
• Title IV: PUBLIC HEALTH
• Ch. 123: ALCOHOLIC BEVERAGE CONTROL

Text

1. Subject to such exceptions as otherwise authorized under this chapter, a person
engaged in the business of manufacturing, bottling, or wholesaling alcoholic beverages,
excluding an institutional investor, or any broker, employee, or agent of such a person, shall
not do any of the following:
a. Directly or indirectly supply, furnish, give, or pay for any furnishings, fixtures, or
equipment used in the storage, handling, serving, or dispensing of alcoholic beverages or
food within the place of business of a licensee or permittee authorized under this chapter
to sell at retail.
b. Directly or indirectly extend any credit for alcoholic beverages or beer or pay for any
such license or permit.
c. Directly or indirectly be interested in the ownership, conduct, or operation of the
businessofanotherlicenseeorpermitteeauthorizedunderthischaptertosellatretail, unless
the licensee or permittee authorized under this chapter to sell at retail does not purchase
or sell the alcoholic beverages of the person engaged in the business of manufacturing,
bottling, or wholesaling alcoholic beverages. However, the licensee or permittee authorized
under this chapter to sell at retail may purchase and sell the wine of the person engaged in
the business of manufacturing wine that is not native wine provided the licensed premises is
the principal office, as defined in section 490.140, of the person.
d. Hold a retail alcohol license unless the licensee holding a retail alcohol license does
not purchase or sell the alcoholic beverages of the person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages. However, a person engaged
in the business of manufacturing wine that is not native wine may purchase and sell the

person’s wine under the authority of a special class “C” retail alcohol license and a class “B”
retail alcohol license provided the licensed premises is the principal office, as defined in
section 490.140, of the person.
2. Notwithstanding any provision of law to the contrary, a broker, employee, or agent
of a person engaged in the business of manufacturing, bottling, or wholesaling alcoholic
beverages may be a broker, employee, or agent of another person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages or a broker, employee, or agent
of a business authorized under this chapter to sell alcoholic beverages at retail as long as
the broker, employee, or agent is not an officer, owner, director, or employee in a position
to exercise any control or influence over the types of sales or the purchasing of alcoholic
beverages in either position of employment.
3. a. A person engaged in the wholesaling of beer or wine may sell only disposable
glassware, which is constructed of paper, paper laminated, or plastic materials and designed
primarily for personal consumption on a one-time usage basis, to retailers for use within
the premises of licensed establishments, for an amount which is greater than or equal to an
amount which represents the greater of either the amount paid for the disposable glassware
by the supplier or the amount paid for the disposable glassware by the wholesaler.
b. Notwithstanding any other provision of this chapter or the fact that a person is the
holder of a class “A” beer permit, a native brewery may be granted a class “C” retail alcohol
license or a special class “C” retail alcohol license, both as defined in section 123.30, for the
samepremiseslicensedunderaclass“A”beerpermitwherethemanufacturingofbeeroccurs.
A native brewery may be granted not more than two class “C” retail alcohol licenses or two
special class “C” retail alcohol licenses. A native brewery may be issued a class “C” retail
alcohol license or a special class “C” retail alcohol license regardless of whether that person
is also a manufacturer of native distilled spirits pursuant to a class “A” native distilled spirits
license or a manufacturer of native wine pursuant to a class “A” wine permit.
c. Notwithstanding any other provision of this chapter or the fact that a person is the
holder of a class “A” beer permit, a native brewery may be granted a five-day class “C” or
five-day special class “C” retail alcohol license as described in section 123.34 for premises
other than the premises licensed under a class “A” beer permit where the manufacturing of
beer occurs. A native brewery may be granted not more than six five-day class “C” or five-day
special class “C” retail alcohol licenses during a calendar year. A native brewery may be
issued a five-day class “C” or five-day special class “C” retail alcohol license regardless of
whether the native brewery is also a manufacturer of native distilled spirits pursuant to a
class “A” native distilled spirits license or a manufacturer of native wine pursuant to a class
“A” wine permit.
4. A licensee or permittee who permits or assents to or is a party in any way to a violation
or infringement of this section is guilty of a violation of this section.
5. The exceptions established by subsection 1 to the general prohibition against tied
interestsshallbelimitedtotheirexpresstermssoasnottounderminethegeneralprohibition
and shall therefore be construed accordingly, and shall not be construed to affect exceptions
to the general prohibition against tied interests as otherwise authorized under this chapter.

Legislative History

[C35, §1921-f40, 1921-f115; C39, §1921.040, 1921.117; C46, 50, 54, 58, 62, 66, 71, §123.40, 124.22; C73, 75, 77, 79, 81, §123.45; 81 Acts, ch 57, §1; 82 Acts, ch 1024, §2]