Iowa Could Change 1935 Prohibition Law
Iowans can make wine and brew beer, but under state law they can't do both. The only way that will happen is if the state changes a law dating back to Prohibition days. The regulations from 1935 are aimed at guaranteeing competition in the market.

"The fear being if you have one or limited number of player dominating the market, you'll end up with collusion and price controls," says Lynn Walding who heads Iowa's Alcoholic Beverages Division.

"A lot of it doesn't make sense in today's economy," says Mason Groben. His family started Jasper Winery in 2000. Today, they offer Iowans a choice of 11 kinds of wine. But now, the wine maker wants to make beer. Groben wants to start a company called Mad House Brewing Company. His plan is to have the company headquartered in the old Maytag building in Newton.

Groben's dream could become reality. Originally, he was part of a group pushing to get rid of the law. But Senate File 420 would allow Iowans to work in both industries as long as they do not have ownership in either. "That was one of the major things we compromised on, that I can only be an employee," says Groben.

Walding believes changing the law to allow employees to work in both industries is a fair compromise and "less of a concern" to regulators. The full Senate is expected to vote on the bill later this week.