Bills › 90th General Assembly
Relating to sales of mixed drinks or cocktails for consumption off the premises and including effective date provisions
Sponsored by the House Commerce Committee
Topics:Alcohol, cannabis & gaming
Where it is now
- Done: IntroducedJanuary 12, 2023
- Done: SubcommitteeJanuary 12, 2023
- Done: House committeeFebruary 21, 2023
- Done: Passes the HouseMarch 7, 202398–0
- Done: Senate committeeMarch 30, 2023
- Done: Passes the SenateApril 17, 202350–0
- Done: To the GovernorApril 28, 2023
- Done: Signed into lawApril 28, 2023
Signed into law What’s a funnel?
What’s in it
AI summary People with a certain type of alcohol license would no longer be able to sell mixed drinks in plastic, paper, or foam cups for people to take away. These types of containers, along with certain pouches or cups with holes, would no longer count as sealed containers under the law. This change affects how drivers and passengers can legally have alcoholic drinks in their vehicles.1
Read the official explanation
This bill concerns the sale of mixed drinks or cocktails mixed on premises covered by a class “C” retail alcohol license for consumption off the licensed premises. Current law allows a mixed drink or cocktail sold in a sealed container to not be considered an open container for purposes of restrictions on drivers and passengers possessing a receptacle containing an alcoholic beverage in a motor vehicle. The bill modifies the definition of sealed container by providing that a cup made of plastic intended for one-time use, a cup made of paper or foam, a cup with a hole that includes a tamper-evident seal, or a vacuum or heat-sealed pouch, is not considered a sealed container. The bill takes effect upon enactment.
House subcommittee
Named January 12, 2023 (as HSB 29). On February 20, 2023 it recommended amendment and passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill changes the definition of a sealed container to include items like plastic, paper, or foam cups and heat-sealed pouches for mixed drinks. By making these changes, the state would comply with federal regulations and avoid an annual penalty of approximately $14.2 million. This would allow the Department of Transportation to retain that amount in federal funding for road and bridge improvements.3
Read the fiscal note
Description
House File 433 modifies the definition of a sealed container. The following containers are not considered a sealed container under the Bill:
- A cup made of plastic intended for one-time use.
- A cup made of paper or foam.
- A cup with a hole that includes a tamper-evident seal.
- A vacuum or heat-sealed pouch.
The Bill takes effect upon enactment.
Background
Currently, under Iowa Code section 123.49, a mixed drink or cocktail mixed on a licensed premises may be transported in a sealed container and is not deemed an open container as long as the seal has not been compromised. Iowa Code section 123.49 defines what is to be deemed a sealed container.
According to the Department of Transportation (DOT), new federal regulations make Iowa’s open container law noncompliant with federal regulations beginning in FY 2024. If Iowa is no longer compliant, the State will be subject to a penalty of 2.5% of both National Highway Performance Program (NHPP) and Surface Transportation Block Grant (STBG) funding, resulting in a penalty of approximately $14.2 million annually. The NHPP and STBG are two of many sources of funding allocated to the DOT and local jurisdictions to assist with road and bridge improvements.
Assumptions
- According to the DOT, noncompliance will result in an annual loss of $14.2 million.
- Iowa will be in compliance with National Highway Traffic Safety Administration (NHTSA) regulations following the passage of this Bill.
Fiscal Impact
House File 433 would put Iowa in compliance with federal requirements, and the DOT would retain $14.2 million in federal road/bridge improvement funding annually.
Source
- Department of Transportation
- Final Fiscal Note — Cocktails Mixed on Premises, Off-Premise Consumption · May 10, 2023
- Cocktails Mixed on Premises, Off-Premise Consumption · March 7, 2023
- Cocktails Mixed on Premises, Off-Premise Consumption · March 3, 2023
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90th General Assembly