This presentation discusses alcohol compliance goals of the Iowa Alcoholic Beverages Division, common violations of Iowa's liquor laws, and resources for licensees. The top violations are infusing alcohol, lacking proper records, and keg registration issues. Licensees must purchase alcohol through the three-tier system, cannot sell on credit or to intoxicated individuals, and must record daily gross receipts. Home delivery of alcohol is now permitted with specific requirements.
Measures of Dispersion and Variability: Range, QD, AD and SD
AC4C Compliance Presentation
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.
7.
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.
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
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
When officers go in to do a compliance check these are the things that they look for – point out the most common violations and that this is also posted online.
Refer to Licensees or License holder at least for a few reasons before using “you or your”
ABD and enforcement officials do not need a warrant to enter upon a licensed premises where alcoholic beverages are stored, served or sold during normal business hours to inspect for any violations.
Must be displayed on premises within public view.
Explain – beer and wine can be consumed on unlicensed premises but spirits cannot.
Summarize the exception portion -
Margarita machines where the alcohol is added in the machine – must be destroyed at the end of the night.
Last bullet – looking for bottles that are reused and have the 5 cent Iowa refund sticker on them.
Ages 18 is in the instance of open containers 16 year olds can sell products to go but cannot open the container or serve an open container (mixed drink, open beer, empty cocktail glass that had a drink in it, etc.)
Classc – bars, restaurants
Baseball diamonds – ad’s are not facing outwards towards the general public but face inside the baseball diamond. Outdoor service areas face inwards and cannot be displayed outwards to be viewed from outside the premises. (from driving by on the street or walking by on the sidewalk)
This was something that was previously allowable under the law, but it was not clearly defined.
. Our website is a great resource & we want to take some time to go show you some items that may benefit you when doing research, conducting surveys, or learning about what is going on at the Division. On the right in the News will be current press releases, publications or items that have been added to the website. Events: Are upcoming holidays or changes to the order schedule, we also post outreach events here - It’s a good idea to visit the homepage periodically to see what new items have been added
* Need to link over to the website and walk through the search process*
