This presentation provides an overview of the Iowa Alcoholic Beverages Division's (ABD) alcohol compliance goals and programs. It discusses top liquor violations, the complaint and investigation process, licensee record keeping requirements, and prohibited acts. It also reviews recent changes like home delivery of alcohol and new license types. The presentation aims to educate license holders on Iowa's alcohol laws and help ensure voluntary compliance.

1. ALCOHOL COMPLIANCE
PRESENTATION
Terry E. Branstad, Governor
Stephen Larson, Administrator Kim Reynolds, LT. Governor

2. Topics of Discussion
 Alcoholic Beverages Division (ABD)
compliance goals
 Violations of Iowa Code chapter 123
 Reporting violations of Iowa Code chapter
123 to the ABD
 Helpful resources and tools to use for
alcohol compliance
 Contact Information
 Q&A

3. Definitions
 Class “E” Licensee - For grocery stores, liquor
stores, convenience stores, etc. Allows commercial
establishments to sell liquor for off-premises
consumption in original unopened containers
 Class “C” Liquor License - For taverns, bars,
restaurants, etc. Allows commercial establishments
to sell liquor, wine, beer and wine coolers for on-
premises consumption. Also allows carry-out sales of
beer and wine coolers in original unopened
containers

4. ABD Compliance Department Goals
 Provide a comprehensive compliance
program to enforce the liquor laws of Iowa
Code chapter 123 through education,
voluntary compliance, and punitive
regulations.
 Open a two-way communication channel
with our partners to provide training,
resources, assistance, and education
regarding alcohol compliance.

5. How Does an Investigation Begin?
Complaints come through several avenues
 Complaint from public
 Law Enforcement Complaint to ABD
 Routine Compliance Checks
 Routine Audits

6. ABD Complaint to Law Enforcement
 Sample letter that
goes to local law
enforcement when
assistance on an
investigation is
needed.

8. Top Liquor Violations
Top three violations that are currently taking place in Iowa
 Infusing
 No records on licensed premises
 Keg registration violations
Reasons a Licensee can lose their liquor license
 Delinquent Sales taxes
 Deleted corporations with Iowa Secretary of State
 No Dram shop insurance
 Sale to Minor – multiple offenses
 Misrepresentation on an application
 Felony conviction of one of the owners
 Imminent danger to public safety

9. Right to Enter Premises
123.30(1)(b)
 No licensee‟s premises shall have interior access to
livings quarters without the living quarters
privilege
 As a condition of issuance of a liquor license or
beer or wine permit, the applicant must give
consent to enforcement officials to enter upon the
premises where alcoholic beverages are stored,
served, or sold without a warrant during normal
business hours of the licensee or permittee to
inspect for violations of Iowa Code chapter 123 or
ordinances and regulations that cities and boards
of supervisors may adopt.

10. Right to Enter Premises
123.30(1)(b)
 All persons who enter upon a licensed
premises to conduct an inspection shall
present appropriate identification to the
owner of the establishment or the person
who appears to be in charge of the
establishment prior to commencing an
inspection, however this provision does not
apply to undercover criminal investigations
conducted by peace officers.

11. Liquor License

12. Consumption, Off-Licensed Premises
123.46
oA person may not be intoxicated, or simulate
intoxication in a public place
o A person shall not use or consume spirits, wine,
or beer upon public streets or highways
o Beer and wine may be consumed or dispensed
in an unlicensed premises or other public place,
as long as a city ordinance does not prohibit
o A person shall not use or consume spirits in any
public place except a premises covered by a
liquor control license

13. Keep Record of Daily Gross Receipts
123.33
o License/permit holders are required to keep the daily
gross receipts of their business
 alcohol purchase receipts and invoices
o ABD recommends the retention of records for a
reasonable and customary time period (ABD has
advised our customers that 3 years would be
reasonable)
o Use to confirm the licensee/permittee is following 3-
tier system

14. Keep Records
123.138
Records of beer purchases
o Wholesalers required to keep records of the amount of beer sold and
to whom it was sold
o Retailers are required to keep records of beer purchases documenting
date, who it was purchased from, and the amount
Keg registration stickers required
o Any retailer selling keg beer is required to purchase record booklets
and stickers from ABD and apply a keg identification sticker to every
keg sold to a consumer. They must also ensure the registration is
filled out correctly
 Name and address of purchaser
 Drivers license #, non operator‟s id card #, or military id # (must
contain a picture and signature)
 Records kept for 90 days on the licensed premises

15. Illegal Purchase of Beer and Wine for Resale
123.142 & 123.181
 All retailers holding a liquor license/beer permit are
required to purchase their beer from an Iowa licensed
wholesaler (123.142)
o Bars, restaurants, grocery stores, liquor stores, gas stations, etc.
 All retailers holding a wine permit are required to
purchase their wine from an Iowa licensed wholesaler
(123.181)
o Exception: A Class “E” liquor license holder may sell one case of wine
per brand per day to retailers each day
• All retailers holding a class “E” liquor license must
purchase hard liquor from ABD. All retailers must
purchase hard liquor from a Class “E” liquor licensees.

16. After Hours Sales/Consumption
123.49(2)(b)
 After hours activities
o No alcohol can be sold, served, consumed, or given away after
2:00am
o If the business offers other legal services, such as food, they
may stay open to provide those services

17. Spirits in Container Other Than Original
123.49(2)(d)
 Infusing is currently the hot trend
o Mixing spirits and other ingredients (fruits, vegetables, spices,
etc.) and letting them ferment for days to then be resold as a
flavored „infused‟ product
 All spirits are required to remain in their original
container
o Exception: Drinks made for immediate consumption
o Examples: Bloody Mary, Margarita, etc.

18. Refilling Bottles
123.49(2)(e)
 Licensees/permittees are not allowed to do the
following:
o Refill or marry bottles - pouring two bottles of
one product into the same bottle
o Adulterate, add substances, or change in anyway
the contents of the original package of spirits,
wine, or beer
o Can not have possession of any adulterated
substance or reused package.

19. Selling on Credit
123.49(2)(c)
 Alcohol can‟t be sold on credit
o Customer may run a tab while at the establishment, but must
close and pay for the entire tab at the end of that business day,
or before leaving the premises
 Officer may confiscate the tabs, or make copies of the
tabs for evidence. Officers will then file a report with
ABD for further review.

20. Employing a Person Under 18
123.49(2)(f)
 Must be 18 years of age or older to be a
bartender, server and „busboy‟ of any
alcoholic beverages.
 Must be 16 years of age to sell alcoholic
beverages to-go (off-premises sales)

21. Allowing Persons to Bring Alcoholic Beverages Onto
Premises 123.49(2)(g)
• Spirits can not be brought into a licensed
premises except by a licensee and their employees
and only products purchased from a Class “E”
licensee.
• Beer and wine can be brought onto a licensed or
unlicensed premises with the permission of the
owner.

22. Alcohol Sold to Go
123.30(3)
 Class “E” liquor license holders is the only
classification that can sell spirits to go.
 Class “C” liquor license holders selling alcohol by
the drink to consume on the premises, can not sell
spirits to go. Carryout beer is an automatic
privilege with this classification
• Wine may be sold to go with an additional privilege
added to the establishments license

23. Brand Name or Logo Advertising Outside Premises
123.51
 Spirits, beer, and wine brand/logo
advertising is allowed on the inside of the
premises
 Inside the premises includes outdoor
services areas where advertisements are not
displayed to the public.
 Signage posted inside the premises that can
be seen through the window is allowable

24. Bootlegging
123.59
• Selling alcohol without a license
• Expired license
• Selling/serving outdoors without outdoor
service area privilege
• Bringing spirits, wine, or beer across the
state border to sell in your licensed
establishment.
o Looking for Iowa refund stickers

25. Licensing Process
 Licensee completes an online application
 If applicable – Dram shop company validates
insurance
 Local authority approves or denies electronic
application after city council or board of supervisors
has approved or denied
 Iowa Alcoholic Beverages Division (ABD) approves
or denies license

26. What‟s New in Alcohol Compliance
 New Legislation
o Home delivery of alcoholic beverages by
retailers
o C-store licenses & Class “E” licensees with
separate liquor rooms

27. Home Delivery of Alcoholic Beverages by Retailers
123.46A
 The following conditions must be met for home
delivery of alcoholic beverages:
o Retailer must be licensed to sell for off premise consumption
o The payment of the spirits, wine, or beer must take place on the
licensed premises at the time of the order
o Alcohol delivered to a person must be for personal
consumption and not for resale
o Deliveries shall be made to only persons 21 years of age or older
o Deliveries shall not be made to people who are intoxicated
o Delivery hours are 6am-10pm Monday-Saturday and 8am-
10pm Sunday
o Deliveries must be made by the licensee or their employees, not
by a third party

28. Home Delivery of Alcoholic Beverages by Retailers
123.46A
 Continued……
o Deliveries shall be made in a vehicle owned, leased, or under
the control of the licensee/permitee
o Delivery person must be 21 years of age or older
o Valid proof of the recipient‟s identity and age shall be verified
at the time of the delivery, and obtain a signature of the
recipient.
o Licensee/permitee shall maintain records of deliveries showing
the quantity delivered, recipients name and address, and the
signature of the recipient of the alcohol. The records shall be
maintained on the licensed premises for a 3 year period.

29. C-Store License and Class “E” license with
Separate Premises
 C-store license or convenience stores licensed to sell
spirits
o New license will allow convenience stores and gas stations
to sell spirits without requiring a separate room
o Spirits can be stored throughout the entire premises and
sold for consumption off the premises
 Class “E” liquor licenses at gas stations and
convenience stores with separate spirits room
o Must have a “separate premises” or room bound on all four
sides from ceiling to floor with solid walls or windows
o Must have a separate cash register
o All spirits sales must take place in this room

30. IowaABD.com Homepage
http://www.IowaABD.com/

31. eLicensing

32. License Search
https://elicensing.iowaabd.com/LicenseSearch.aspx

33. eLicensing Search

34. eLicensing Search Screen 2

35. eLicensing Search

36. License Classifications
http://www.iowaabd.com/alcohol/licensees/licensing/licenses

37. Education
http://www.IowaABD.com/education

38. Contact Information
For any questions on regulation please contact the licensing
department at 1-866-469-2223 option 1
Or email licensing@IowaABD.com
 Annie Adamovicz – Administrative Hearing Officer
515.281.7426
Adamovicz@IowaABD.com
 Karen Freund – Director of Regulatory Affairs
515.281.7414
Freund@IowaABD.com

39. Contact Information
 Shannon Pogones- Education Outreach Coordinator
515.281.3426
Pogones@IowaABD.com