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Liquor Laws


MINORS AND ALCOHOLIC BEVERAGES

Iowa's Legal-Drinking Age

Iowa's 21-year-old legal-drinking age applies to everyone - patrons, agents, employees and the licensee's family members.

Licensees (their employees and agents) must exercise reasonable care to assure that a person is of legal-drinking age before selling or serving them an alcoholic beverage.

Liquor, wine, or beer may be given or dispensed to a person under legal age within a private home and with the knowledge, presence, and consent of the parent or guardian for beverage or medicinal purposes.

Iowa Code sections §123.47, 123.47(2) and §123.49(2)(h)

Age to be in Licensed Establishments

Iowa law does not prohibit minors from being in licensed establishments. However, licensees should check with their local authority to determine if there is an ordinance governing minors in licensed establishments. If the local authority has such an ordinance, the ordinance applies.

Iowa Code section §123.39(2), and 185-4.35 Iowa Administrative Code

Criminal Penalties for Sales-to-Minors Violations

When licensees (their employees and agents), sell, give, or otherwise supply an alcoholic beverage to someone under the legal-drinking age, licensees (their employees and agents) may be charged and convicted in criminal court. The criminal penalty imposed by the courts is a simple misdemeanor punishable by a fine of $1,500.00 when the violation is committed by the licensee or $500 when the violation is committed by the licensee's employee or agent.

Iowa Code section §123.50(1)

Criminal Penalties for Minors

When a minor purchases or attempts to purchase, or has an alcoholic beverage in their control or possession, the minor may be charged and convicted in criminal court.

Following are the criminal penalties imposed by the courts for purchasing or attempting to purchase or controlling or possessing an alcoholic beverage:
  • First violation - simple misdemeanor punishable by a $100.00 fine.

  • Second violation - simple misdemeanor punishable by a fine of $500.00. In addition to any other applicable penalty, the person in violation shall choose between
    either completing a substance abuse evaluation or the suspension of the person's motor vehicle operating privileges for a period not to exceed one year.
  • Third and subsequent violations - simple misdemeanor punishable by a fine of $500.00 and the suspension ofthe person's motor vehicle operating privileges for a period not to exceed one year.

When the violation is committed by a minor under age 18, the matter is handled by the juvenile court.

Iowa Code section §123.47

Administrative Sanctions for Sales-to-Minors Violations

Administrative sanctions are separate from criminal penalties. Both may be imposed. When licensees (their employees and agents) sell, give, or otherwise supply liquor, wine or beer to someone under the legal-drinking age, the following administrative sanctions may be imposed against the alcoholic beverages license.
  • First violation or first violation within two years - $500.00 civil penalty or 14-day license suspension.

  • Second violation in two years - 30-day license suspension and $1,500.00 civil penalty.

  • Third violation in three years - 60-day license suspension and $1,500.00 civil penalty.

  • Fourth violation in three years - revocation of the license.
Administrative sanctions are automatic (no administrative hearing held) when there is a criminal conviction under Iowa Code section §123.49(2)(h). When there is no criminal conviction, administrative sanctions are imposed through an administrative hearing.

Iowa Code sections §123.39(1)(c), §123.49(2)(h) and §123.50(3)


IDENTIFICATION INFORMATION

Verifying an Individual’s Age

Licensees (their employees and agents) are responsible for determining whether or not an individual is old enough to lawfully consume alcoholic beverages. When licensees have doubts about a person's age, the licensee should ask for identification before selling or serving the alcoholic beverage. If after checking the ID, the licensee still has doubts, the sale should be refused.

Iowa law does not govern acceptable forms of identification. However, the Alcoholic Beverages Division recommends that licensees request identification - valid forms of which include a person's photo and date of birth, such as those found on a driver's license or state-issued ID card.

Iowa Code sections §123.47, 123.48 and 321.189(6)

Misrepresenting Age

It is unlawful for minors to misrepresent their age for the purpose of purchasing or attempting to purchase alcoholic beverages from an alcoholic beverages licensee or permittee.

When licensees (their employees and agents) are charged with a sales-to-minor violation, a defense to the charge is available to them if:
  • The minor who made the purchase misrepresented their age.

  • Licensees made reasonable inquiry to determine if the purchaser was of legal age.
Iowa Code sections §123.49(3), 232.52(2) and 321.21B

Confiscating Identification

When licensees (their employees and agents) reasonably believe based on factual evidence that a driver's license or non-operator’s ID card has been altered, falsified or belongs to another person and is being used as identification to purchase an alcoholic beverage, licensees may confiscate the license or card from the customer.

The confiscated license or card must be turned over to the local police authority within 24 hours of confiscation. Licensees must file a written report about the circumstances at the time the license or card is given to the police authority. When licensees take possession of an ID, a receipt giving the time and hour of the confiscation must be given to the person from whom the ID was confiscated.

By turning the confiscated driver's license or non-operator’s ID card over to police authorities and filing a written report as required by law, licensees cannot be held criminally or civilly liable for seizing the license or card as long as unreasonable force was not used during the confiscation.

Iowa Code section §123.48, 321.216, 321.216A and 321.216B

Iowa Driver's Licenses and Non-Operator’s IDs

Today’s Iowa driver’s licenses and non-operator’s ID cars are designed to be tamper-proof. An attempt to alter the printed data or photo results in noticeable destruction of the photo and printing on the license.

To protect against alteration and counterfeiting, the following features are incorporated into the license and ID card.

Issued beginning July 1, 2001

General features:
  • Header blue = driver's license; maroon = nondriver's license; green = commercial driver's license; plum = intermediate; yellow = instruction.

  • License or ID number is printed in black, under header.

  • Signature appears under text.

  • Expiration date printed in black.

  • Medical alert, organ donor, medical advance directive, deaf, and hearing-impaired identifiers may be printed in lower right-hand corner.
Minor’s information:
  • Card is printed on a vertical plane.

  • Horizontal security overlay of DOT logo printed vertically in ultraviolet-sensitive ink across license face.

  • Horizontal security overlay of DOT logo printed vertically in ultraviolet-sensitive ink across license face.

  • “Under 18/21 until (specified date)” printed in red within red border over photo.

  • Name and address printed in red ink.

  • Last two digits of date of birth (DOB) for persons under 21 in red under “Expires.”
Security features:
  • Director’s signature appears vertically overlapping edge of photo.

  • The photo is placed on a blue background.

  • State seal appears under DOB.

  • “IOWA DEPARTMENT OF TRANSPORTATION” printed diagonally in ultraviolet-sensitive ink.

  • Horizontal security overlay of DOT logo printed diagonally in ultraviolet- sensitive ink across license face.

  • Last digit of audit number and the last digit of the DOB match.

  • Vertical micoprinted lines appear on the back of the card in the lower right and left hand corners.

Issued December 1999 to July 1, 2001

General features:
  • Header blue = driver's license; maroon = nondriver's license; green = commercial driver's license; plum = intermediate; yellow = instruction.

  • License or ID number is printed in black, under header.

  • Signature appears under text.

  • Expiration date printed in black.

  • Medical alert, organ donor, medical advance directive, deaf, and hearing-impaired identifiers may be printed in lower right-hand corner.
Minor’s information:
  • “Under 18/21 until (specified date)” printed in red within red border under photo.

  • Name and address printed in red.

  • Last two digits of date of birth (DOB) for persons under 21 in red under “Expires.”
Security features:
  • Director’s signature and station number appear vertically overlapping edge of photo.

  • Photo is placed on a blue background.

  • State seal appears under DOB.

  • “State of Iowa” microprinting for signature line and around state seal.

  • “IOWA” printed diagonally and across DOB line in ultraviolet-sensitive ink.

  • Horizontal security overlay of “Iowa Department of Transportation” across license face.

  • Last digit of audit number and the last digit of the DOB match.

Issued September 1995 to December 1999

General features:
  • Header blue = driver's license; maroon = nondriver's license; green = commercial driver's license.

  • License or ID number is printed in black, under header.

  • Signature appears under text.

  • Medical alert, organ donor, deaf, and hearing-impaired identifiers printed in lower right-hand corner.
Minor’s information:
  • “Under 21 until (specified date)” printed in red under photo.
Security features:
  • Director’s signature and station number overlap the photo.

  • Photo is placed on a gray background.

  • Iowa seal in data field.
  • DOB and expiration date in red.
  • “State of Iowa” microprinting for signature line and around state seal.
  • “IOWA” printed diagonally in ultraviolet-sensitive ink across license face.
  • Horizontal hologram of “Iowa DOT” across license face.

  • Last digit of audit number and the last digit of the DOB match.

Helpful Hints for Checking Identification

The best way to verify someone's age is to ask for identification. Licensees (their employees and agents) should check IDs under good lighting conditions. Customers should be asked to take their identification out of their wallet so that the ID can be handled and checked for signs of alteration.

Look for:

  • The driver’s license or ID card’s expiration date. It’s not a good idea to accept expired ID’s.

  • The word “duplicate “on the front of the license or card. Someone else may have the original card.

  • Glue lines or bumpy services by the picture or birth date. Uneven surfaces often indicate tampering.

  • Last digit of audit number and the last digit of the DOB match. If the numbers do not match, the DOB has more than likely been altered.

  • Consistency of numbers. The typeset for the birth date should match the lettering used on the rest of the license or card.

  • Use a blacklight, flashlight or magnifying glass for close inspection of security features such as ultraviolet printing or microprinting.

  • The state logo. A state seal or logo that is partially missing or appears altered is another clue to a fake license or card.

  • Pin holes on the surface. Bleach may have been inserted to “white out” certain aspects of a date.

  • The license or cards reverse side lettering. While the front may appear flawless, often counterfeiters merely photocopy the reverse side. Look for blurred lettering.

  • Size, coloring, lettering, thickness and corners. Compare the questionable ID against a “standard” ID – your own driver’s license or ID card.

  • Someone else’s license or card. Make sure the photo, height and weight on the card match the person in front of you.

  • If it is an out-of-state license or card, or for any reason looks unfamiliar to you, use an ID checking guide. This is especially important in college and tourist communities.

If an ID is questionable:

  • Ask for a second ID. Individuals with fake ID’s rarely carry back-up information.

  • Quiz the person about basic information on the license or card, such as birth date, middle initial, zip code, etc.
If licensees (their employees and agents) suspect that the ID has been altered or belongs to another person, the licensee should refuse the sale or service. An alcoholic beverages license allows – but does not require licensee to sell and serve alcoholic beverages.

Calculating Age

A common error in calculating age is to forget to verify if the presenter has had a birthday in the current calendar year. To help avoid this pitfall, use the following jingle:
  • Add twenty plus one; have they had their birthday fun?

SALES TO INTOXICATED PERSONS

Sales to Intoxicated Persons

It is unlawful to sell or serve liquor, wine or beer to a person who is, or appears to be, intoxicated. The laws governing the sale of alcoholic beverages to intoxicated people apply to both on- and off-premises licensees - bars, restaurants, hotels, motels, liquor stores, convenience stores, grocery stores, etc.

Although it may be difficult to refuse the sale or service, the consequences that may occur if appropriate action is not taken are significant. Individuals who become intoxicated put themselves and others at risk of injury and harm. Licensees (their employees and agents) who sell or serve an alcoholic beverage to an intoxicated person must realize that their failure to intervene may indirectly injure or kill someone.

Laws governing intoxicated individuals also apply to licensees. Intoxication impairs judgment and interferes with sound business decisions. For this reason, licensees may find it a good business practice not to drink while at work.

Licensees who sell or serve an alcoholic beverage to an intoxicated person are subject to criminal penalties. In addition, administrative proceedings may be initiated for suspension or revocation of the license.

Licensees also may be held civilly liable under Iowa's Dram Shop Act for serving an alcoholic beverage to an intoxicated person who causes damage, injury or death of an innocent party. Licensees can minimize their risk by never serving an alcoholic beverage to a person who is or appears to be intoxicated.

Iowa Code sections §123.49(1), §123.92, §123.93 and 321J.2

Blood-Alcohol Concentration

Blood-Alcohol Concentration (BAC) is a measure used to classify a person's degree of impairment. BAC refers to the amount of alcohol in relation to blood in the body. The more alcohol in a person's blood, the greater the degree of impairment. Under Iowa law, a person is legally intoxicated when the blood-alcohol concentration is .08 or higher, (.02 for people under 21).

Iowa Code sections §123.49(1) and 321J.2

Blood-Alcohol Concentration and Intoxication

An individual’s response to alcohol may vary depending upon their tolerance for alcohol, amount of food intake, fatigue and other factors. An individual’s driving may be impaired after only one drink.

MALE BLOOD ALCOHOL CONCENTRATION GUIDE

Number of
Drinks Per Hour
PERCENT OF ALCOHOL IN BLOODSTREAM
 
BODYWEIGHT IN POUNDS
110
120
140
160
180
200
220
240
0
ONLY SAFE DRIVING LIMIT
1
.04
.03
.02
.02
.02
.02
.02
.02
Driving
Skills
IMPAIRED
2
.08
.06
.05
.05
.04
.04
.03
.03
3
.11
.09
.08
.07
.06
.06
.05
.05
4
.15
.12
.11
.09
.08
.08
.07
.06
5
.19
.16
.13
.12
.11
.09
.09
.08
LEGALLY DRUNK IN IOWA and most states
6
.23
.19
.16
.14
.13
.11
.10
.09
7
.26
.22
.19
.16
.15
.13
.12
.11
8
.30
.25
.21
.19
.17
.15
.14
.13
9
.34
.28
.24
.21
.19
.17
.15
.14


FEMALE BLOOD ALCOHOL CONCENTRATION GUIDE

Number of
Drinks Per Hour
PERCENT OF ALCOHOL IN BLOODSTREAM
 
BODYWEIGHT IN POUNDS
100
120
140
160
180
200
220
240
0
ONLY SAFE DRIVING LIMIT
1
.05
.04
.03
.03
.03
.02
.02
.02
Driving
Skills
IMPAIRED
2
.09
.08
.07
.06
.05
.05
.04
.04
3
.14
.11
.10
.09
.08
.07
.06
.06
4
.18
.15
.13
.11
.10
.09
.08
.08
LEGALLY
DRUNK IN
IOWA and
most states
5
.23
.19
.16
.14
.13
.11
.10
.09
6
.27
.23
.19
.17
.15
.14
.12
.11
7
.32
.27
.23
.20
.18
.16
.14
.13
8
.36
.30
.26
.23
.20
.18
.17
.15
9
.41
.34
.29
.26
.23
.20
.19
.17


Note: The data on the charts is indicative of only one hour of alcohol consumption. Consuming multiple drinks per hour over a period of more than one hour would render a person’s Blood Alcohol Content significantly higher than the data listed on the chart for one hour of consumption.


Impaired Driving

BAC%

DRINKS CONSUMED
EFFECTS
Male
Female

0.02%

1
1
Ability to track moving objects and do tasks requiring divided attention may suffer.

0.05%

2 to 3
1 to 2
Thought, judgment and restraint more lax. Steering errors increase. Vision impaired.

0.08%

3 to 4
2 to 4
Legal limit in most states. Drivers are 3 to 4 times more likely to crash than a sober driver. Movements are clumsy. Reaction time slows more.

0.10%

3 to 5
2 to 5
Drivers are 6 times more likely to crash. Movements are clumsy. Reaction time slows even more.

0.15%

4 to 7
3 to 7
Crashing is 25 times more likely. Reaction time increasingly affected especially in divided tasks. Field of vision narrows.
One drink = 1 oz. 80 proof spirits = 3 oz. glass of 12% wine
= 12 oz. glass of 5% beer

Figures contained in the charts are averages, BAC and effects of alcohol on individuals vary widely.


Visible Signs of Intoxication

Law enforcement officials and the courts use Blood-Alcohol Concentration (BAC) to determine levels of intoxication. While licensees are not expected to know a person's BAC, licensees should be able to recognize the warning signs of intoxication.

By using careful observation and good judgment, licensees (their employees and agents) can interpret the behavior of their customers in terms of alcohol consumption. Alcohol affects a person's inhibitions first, then judgment, reactions and finally coordination. Following are examples of each of these stages:
  • Loss of inhibitions: being overly friendly, bravado, loud speech, changing from quiet to loud, drinking alone, annoying other customers.

  • Impaired judgment: complains about the strength of a drink, orders doubles, argumentative, foul language, careless with money, buys drinks for strangers, irrational statements.

  • Loss of reactions: lights more than one cigarette at a time, unable to light a cigarette, eyes are glassy, dilated or bloodshot, loss of train of thought, slurred speech, thick tongue when speaking.

  • Loss of coordination: can't pick up change, spilling drinks, unable to sit up straight or falls off stool, staggering or unbalanced walk, stumbles or bumps into objects.

Alcoholic Beverages Equivalencies

It takes the body approximately one hour to eliminate each of the following servings of beer, wine and liquor.
  • 12 oz. of 5 percent alcohol beer

  • 5 oz. of 12 percent alcohol wine
  • 1-1/2 oz. of 80-proof liquor
Serving sizes may vary (1 oz. vs. 1-1/2 oz.) depending on the alcoholic content of the liquor, wine and beer. Mixed drinks using two or more shots are equal to two or more servings.

PROHIBITED PRACTICES

Credit Sales (Tabs)

Tabs and credit vouchers are not legal. Licensees may extend credit only through the use of bona fide credit cards (American Express®, Discover®, MasterCard®, Visa®, etc.). Patrons may run a tab while drinking in an establishment, but licensees (their employees and agents) must ensure that the tab is fully paid before the patron leaves.

Exception: The law does not apply to sales by clubs (class A liquor licensees) to bona fide members, nor to hotels and motels (class B liquor licensees registered guests.)

Iowa Code section §123.49(2)(c)

Refilling ('Marrying') Bottles

Refilling and reusing liquor and wine bottles is unlawful. Licensees may not:
  • Refill a smaller “well” bottle from a larger bottle.

  • Refill a bottle with a product other than that designated on the label.

  • Refill a bottle bearing the Iowa identifying marker with a product imported from another state.

  • Adulterate liquor or wine by the addition of any substance.

  • Knowingly possess an original package that has been reused or adulterated.
Refilling and reusing liquor and wine bottles is a serious violation that may result in suspension or revocation of the license.

Iowa Code sections §123.49(2)(d) and (e), and §123.50(2)

Illegal or Criminal Activity

Licensees are in violation of the laws and rules governing their license if they knowingly allow illegal or criminal activity in their licensed establishments. Examples of illegal or criminal activity include, but are not limited to:
  • Gambling in violation of Iowa Code chapters 99B (games of skill or chance, raffles), 99D (pari-mutuel wagering), 99E (Iowa lottery) and 99F (excursion boat gambling).

  • Drug trafficking, pimping, panhandling, prostitution, indecent exposure, (nude dancing, etc.) and failure to cooperate with law enforcement officials.

  • Violations of alcoholic beverages and related laws and regulations and local ordinances.

  • A license may be suspended or revoked or a civil penalty may be imposed if licensees (their employees and agents) knowingly allow illegal or criminal activity on the licensed premises (establishment and designated outdoor service area, if applicable).
Iowa Code sections §123.49(2)(a) and (j), §123.50(2), and Iowa Administrative Code 185-4.7

HOURS of SALE

Hours of Sale and Consuming Alcoholic Beverages

Hours of sale are the hours during which alcoholic beverages may be lawfully sold and served. (Business hours are those during which licensees, their employees, agents or patrons are in the licensed establishment.) Consumption in a licensed establishment during the hours when alcoholic beverages may not be sold or served is strictly forbidden. This applies to patrons, licensees, employees, agents and family members.

Hours of Sale

The hours during which alcoholic beverages may be legally sold and served are:
  • Monday through Saturday 6 AM to 2 AM

  • Sunday 8 AM to 2 AM
A Sunday sales privilege is required for all off-premises beer and all on-premises liquor, wine and beer Sunday sales and service. Licensees may not sell, serve, dispense, or consume alcoholic beverages at private parties or while cleaning the establishment on Sundays, unless the premises is also licensed for Sunday sales privilege. Only Class E liquor licensees (carryout liquor) and Class B wine permittees (carryout wine) have a Sunday sales privilege as part of their basic license.

Iowa Code sections §123.36(6)§123.49(2)(b) and (k), and §123.134(5)

Hours of Sale and Daylight Savings Time

Going from Central Standard Time to Daylight Savings Time in the spring does not affect the legal hours of sale. (At 2 AM the time becomes 3 AM)

Returning to Central Standard Time in the fall lawfully allows an extra hour of sale. (At 2 AM the time becomes 1 AM. Therefore, licensees may sell and serve alcoholic beverages for an additional hour.)

Iowa Code sections 1D, §123.36(6), §123.49(2)(b) and (k), and §123.134(5)


New Year's Eve on Sunday

A special provision in the law allows on-premises Sunday liquor, wine and beer sales without a Sunday sales privilege when New Year's Eve falls on Sunday, Dec. 31. Hours of sale on New Year's Eve, Sunday, Dec. 31, are:
  • 8 AM on Sunday, Dec. 31, to 2 AM on the following Monday, Jan. 1.
The special provision allows on-premises liquor licensees and on-premises Class B beer permittees to sell only those types of alcoholic beverages allowed by their license. No additional fees are required for this onetime special Sunday sales day. If on-premises licensees wish to sell and serve alcoholic beverages on all other Sundays during the year, a Sunday sales privilege must be obtained.

Note: The special provision does not apply to off-premises beer permittees. Holders of class C beer permits must obtain a Sunday sales Privilege to sell beer on New Year’s Eve, December 31st.

Iowa Code section §123.150

LAWS IMPORTANT TO BUSINESS OPERATION

Employees and Agents - Licensee's Responsibility

Licensees are responsible for their employees and agents while they are working in the following capacities:
  • On the licensed premises (selling and serving alcoholic beverages).

  • Off the licensed premises (delivering alcoholic beverages).
If the licensee's employees and agents violate the laws or rules governing the license, administrative proceedings may be initiated to impose a civil penalty or to suspend or revoke the license.

Iowa Code section §123.49(2), and 185-4.8 Iowa Administrative Code

Ages to Sell, Serve and Deliver

A licensee's employees and agents must be at least:
  • 16 to sell and deliver (in original unopened containers) liquor, wine and beer for off-premises consumption (grocery stores, convenience stores, liquor stores, etc.).

  • 18 to sell and dispense liquor, wine and beer for on-premises consumption (restaurants, bars, clubs, etc.).
Note: Age requirements apply to the licensee’s family members as well as nonfamily employees. If there is a local ordinance governing minors in licensed establishments, the ordinance applies.

Iowa Code sections §123.47, §123.49(2)(f), an1854.25 Iowa Administrative Code

Local Ordinances

Local authorities may adopt ordinances governing licensed establishments that are located within their jurisdiction. Local ordinances may be more restrictive than state law, but may not conflict with the law. For example, local authorities may not adopt ordinances changing the legal hours of sale. (Hours of sale are specified by state law.)

Always check with the local authority to determine if local ordinances apply to the licensed establishment. If the local authority has ordinances governing the selling and serving of liquor, wine and beer, the local ordinances apply to the licensed establishment. Violation of a local ordinance may result in suspension of the license through a local administrative hearing. Civil penalties may not be imposed for violations of local ordinances.

Iowa Code section §123.39(2)

Record-Keeping Requirements

Licensees must maintain their business records on the licensed premises. Iowa law requires licensees to make their records available to law enforcement officials and to staff of the Iowa Alcoholic Beverages Division during business hours or when the licensee, their employees, agents or patrons are on the licensed premises.

Iowa Code sections §123.14, §123.21(11), §123.33 and §123.138; also Internal Revenue Code 26 U.S.C. 5124

Display of Licenses

Licensees must prominently display their liquor, wine or beer licenses in full view of the public.

Iowa Code section §123.21(11), and 185-4.12 Iowa Administrative Code


SOCIAL GAMBLING

Card and Parlor Games

Gambling is not legal in a licensed beer or liquor establishment unless the establishment holds a social gambling license. A social gambling license permits patrons of a beer or liquor establishment to play card and parlor games for money. A social gambling license does not authorize raffles, bingo or any other form of gambling not specifically permitted. A social gambling license is a two-year license and costs $150.00. Licensees must prominently display the gambling license on the premises where the gambling is taking place. Licensees may not charge a general admission fee or a cover charge at any time social gambling is allowed. Licensees (including their employees and agents) may not promote, sponsor, conduct or act as a banker or cashier for social gambling. Bookmaking is illegal.

Participants must be at least 21 years old. A participant cannot win or lose more than $50 during any 24-hour period. It is the licensee’s responsibility to make sure these rules are enforced.

Games Permitted with a Social Gambling License:

  • Backgammon, Bridge, Checkers, Chess, Cribbage, Darts, Dominoes, Euchre, Gin Rummy, Hearts, Pinochle, Pitch, Poker and pool table games.

Games Specifically Prohibited by Law:

  • Baccarat, Blackjack, Chemin de fer, Chuck-a-Luck, Craps, Equality, Faro, Klondike, Pull-tab, Punchboard, Push card, Roulette, Slot Machines and Three-Card Monte and Dice games (unless the dice are part of a board game such as Monopoly).
Iowa Code sections 99B.6, §123.49(2)(a) and §123.50(2), and 481 Iowa Administrative Code

Bona Fide Games

Bona fide contests may be conducted at a beer or liquor establishment and do not require a social gambling license. A bona fide contest is one where a prize is awarded to the person(s) winning the contest, participation fees may be charged no gambling can occur during the contest, and the contest must be conducted in a fair and honest manner. Contests, leagues or tournaments that are legal include: athletic or sporting contests, leagues or tournaments; rodeos; horseshoes; golf, bowling; trap or skeet shoots; fly casting; tractor pulling; rifle; pistol; musket; muzzle-loader; archery; horse races and harness races; ski racing; airplane racing; snowmobile racing; raft racing; boat racing; bicycle racing; motor vehicle racing; contest or exhibitions or cooking; horticulture; livestock; poultry; fish or other animals; artwork; hobby work or craftwork; cribbage; bridge; chess; checkers; dominoes; pinochle; and on-line video golf with a trackball assembly.

If a contest, league or tournament is not on this list, it is not a legal bona fide contest with or without a gambling license.

Iowa Code sections 99B.6, 123.49(2)(a), and 123.50(2) and 725 and 481-102 Iowa Administrative Code

Sports Pools

A social gambling license also allows licensees to conduct sports pools in the licensed establishment. A sports pool is a game in which the participants select a square on a numbered grid. Winners are determined when the selected square corresponds to a number relating to the outcome of an athletic event. Rules of the pool, including the cost per participant and the amount of the winning must be publicly displayed. Participants must be at least 21 and no participant may wager more than $5. Total winnings of each pool may not exceed $500 and all monies wagered must be awarded to participants.

Iowa Code sections 99B.6, §123.49(2)(a) and §123.50(2), and 481 Iowa Administrative Code

Note: Please contact the Iowa Social and Charitable Gaming Division at 515.281.7357 for complete information regarding sports pools and social gambling.


THE LICENSED PREMISES

Licensed vs. Unlicensed Premises and Alcoholic Beverages

Liquor may be dispensed and consumed only on premises (establishment and designated outdoor service area, if applicable) covered by a liquor license. Patrons may not take filled or partially filled glasses or bottles of liquor (including miniatures) out of a licensed establishment. Licensees may not allow patrons to bring liquor onto the licensed premises.

Wine and beer may be dispensed and consumed on unlicensed premises. Although the Iowa Alcoholic Beverages Division does not encourage the practice, patrons may take filled or partially filled glasses of wine and beer out of the licensed establishment. Licensees may - but are not required to - allow patrons to bring their own wine and beer onto the licensed premises for their personal use.

Patrons may not consume liquor, wine or beer on a public highway or street.

Iowa Code sections §123.46(2), §123.49(2)(g) and §123.95

Use of Licensed Premises During Prohibited Hours of Sale

Liquor, wine and beer may not be sold, served, consumed or given away on licensed premises during the prohibited hours of sale. The restriction applies to licensees, their employees, agents, patrons and family members. For example, licensees and staff may not consume alcoholic beverages while cleaning the establishment, if the cleaning is done after 2 AM.

Licensees may use the licensed establishments as a restaurant or for other lawful purposes during prohibited hours, as long as alcoholic beverages are not sold, served, consumed or given away. The Division recommends that if licensees remain open for business during the prohibited hours of sale, licensees remove all filled, partially filled and empty liquor, wine and beer glasses from tables and other areas that are accessible to patrons. The practice is recommended even though the law does not mandate that licensees do so.

Iowa Code sections §123.49(2)(b) and (k), and 185-4.28 Iowa Administrative Code

Fire Code and Capacity Limits

The state fire marshal is responsible for determining the maximum number of patrons allowed in a licensed establishment. It is the licensee's responsibility to monitor the number of patrons in the licensed establishment. Licensees may not have more patrons in the establishment than the allowable number designated by the fire marshal. Fire code violations may result in suspension or revocation of the license.

Iowa Code sections §123.30, §123.128, §123.129 and §123.176, and 166 Iowa Administrative Code

Premises Inspections

Licensed premises must be in compliance with state and local health, fire and building code laws. Failure to maintain compliance at any time during the licensed period may result in administrative proceedings to suspend or revoke the license.

Licensees must allow the following individuals access to the licensed establishment without a search warrant to examine and inspect for compliance with the laws, rules and ordinances governing the license:
  • Representatives from the Iowa Alcoholic Beverages Division and the Iowa Department of Inspections and Appeals.

  • Law enforcement officials from the Iowa Department of Public Safety, and police and sheriff's departments.

  • Fire, health and building code inspectors.
Whenever licensees complete a new or renewal liquor, wine or beer license application, a signed affidavit is required,(incorporated in the application) that agrees to allow the above individuals access to their premises during business hours. Business hours include the hours during which the licensees their employees, agents or patrons are in the establishment.

Iowa Code sections §123.30, §123.128, §123.129 and §123.176

Search Warrants

A search warrant is not required for inspection of the licensed establishment and the business records that the licensee must maintain on the licensed premises. Business records must be available to law enforcement officials and representatives of the Iowa Alcoholic Beverages Division, Iowa Department of Inspections and Appeals, and health and fire inspectors during normal business hours or when the licensee, their employees, agents or patrons are in the establishment.

Search warrants or subpoenas are required to inspect private records, private business offices and attached living quarters.

Iowa Code sections §123.21(11), §123.30(1), §123.128(3), §123.129(3) and §123.176(3)

Attempt to Destroy Evidence

If licensees, their agents, employees or patrons destroy or attempt to destroy any liquid while in the presence of a law enforcement official or while a law enforcement official is searching the premises, the liquid is considered an alcoholic beverage that was intended for unlawful purposes.

Iowa Code section §123.120


TRAFFICKING OF ALCOHOLIC BEVERAGES

Buying Alcoholic Beverages for Resale

Iowa's alcoholic beverages industry operates under a three-tier system - importer (manufacturer) to wholesaler to retailer. All liquor, wine and beer must be purchased through the three-tier system.

On-premises licensees (bars, restaurants, hotels, motels, etc.) must purchase the liquor, wine and beer that is resold in licensed establishments from the following sources:
  • Liquor - from off-premises Class E liquor licensees (liquor stores, grocery stores, etc.).
Iowa Code sections §123.22 and §123.30(3)
  • Wine - from Iowa-licensed wine wholesalers. On-premises licensees also may purchase limited quantities of wine (up to one case per brand per day) from off-premises Class E liquor licensees (liquor stores, grocery stores, etc.) who also are licensed to sell bottles of wine.
Iowa Code sections §123.30(3), §123.173, §123.177 and §123.178(3)
  • Beer and wine coolers - from Iowa licensed beer wholesalers. No exceptions!
Iowa Code sections §123.123, §123.130 and §123.131

Note:
Iowa law requires gambling boats, excursion boats and trains operating only within the state to observe the above requirements.

Iowa Code section §123.30(3)(d)(2)

Off-premises licensees (liquor stores, grocery stores, convenience stores, etc.) must purchase the liquor, wine and beer that is sold in licensed establishments from the following sources:
  • Liquor - from the Iowa Alcoholic Beverages Division only. The Iowa Alcoholic Beverages Division is the sole wholesaler of liquor in Iowa.
Iowa Code sections §123.22 and §123.30(3)
  • Wine - from Iowa-licensed wine wholesalers only. No exceptions!
Iowa Code sections §123.173, §123.177 and §123.178(3)
  • Beer and wine coolers - from Iowa-licensed beer wholesalers only. No exceptions!
Iowa Code sections §123.130 and §123.132

Transfer of Alcoholic Beverages between Licensed Premises

Liquor, wine and beer inventory may not be transferred from one retail premises to another, even though the same person, partnership, corporation or association owns all of the premises.

Exceptions: Inventory may be transferred when the retail establishment from which the inventory is transferred has gone out of business and when the retail license is transferred from one location to another.

Iowa Code sections §123.22, §123.30(3), §123.123, §123.130, §123.131, §123.132, §123.173, §123.177 and §123.178(3)

Identifying Markers

All bottles of liquor must have an approved "Iowa Refund 5¢" marker. Iowa markers are displayed in one of the following manners:
  • The words "Iowa Refund 5¢" printed or overprinted by the manufacturer on the main front label of the bottle.

  • A serially numbered Iowa Alcoholic Beverages Division stamp on the front of the bottle where it is easily visible when the bottles sit on a shelf or in a "well."
The identifying markers are proof that the liquor was lawfully purchased in Iowa. Licensees may not purchase liquor, wine and beer outside of the state for resale in their licensed establishments. (See consumer importation limits.)

Iowa Code sections §123.21(7), §123.22 and §123.26

Storage of Alcoholic Beverages

Licensees must store all liquor, wine and beer inventory on the licensed premises. Under special circumstances, however, the Iowa Alcoholic Beverages Division may authorize licensees to store alcoholic beverages on premises other than those covered by the license. To obtain authorization, licensees must submit a written request detailing the special circumstances to the Division.

The Division grants such requests in writing. Letters of permission include a beginning and ending date for the off-premises storage. Letters of permission expire with the license and must be renewed if the off-premises storage is to continue beyond license expiration.

Note: Only those alcoholic beverages allowed by the license may be stored on the licensed premises.

Iowa Code section §123.21(9), and 185-4.31 Iowa Administrative Code

Delivering Alcoholic Beverages

Licensees (their employees and agents) may deliver liquor, wine and beer in original unopened containers. Deliveries must be:
  • Made to an individual of legal-drinking age.

  • Made during the legal hours of sale.

  • Paid for before or at the time of delivery.
Licensees may deliver only those alcoholic beverages the license allows them to sell. For example, only Class E liquor licensees (liquor stores, grocery stores, etc.) may deliver bottles of liquor.

Licensees may hire a private delivery service to act as their agent for the delivery of liquor, wine and beer. However, if the delivery service (the agent) violates the law, administrative proceedings may be initiated to impose a civil penalty, or to suspend or revoke the licensee's license.

Iowa Code sections §123.21(10) and §123.49(2), 185-4.32 and 33 Iowa Administrative Code

Vending Machines

Liquor, wine and beer may not be sold from a vending machine. No exceptions!

Iowa Code sections §123.21(3), §123.47, §123.49(1), §123.49(2), and 185-4.41 Iowa Administrative Code

Disposing of Inventory When Going Out of Business

Licensees who go out of business may dispose of their liquor, wine and beer inventory in one of the following manners. On-premises licensees (bars, restaurants, hotels, etc.) may:
  • Sell unopened bottles of liquor, wine and beer to the new licensee who will operate at the same location.

  • Return unopened bottles of liquor to the liquor store and unopened bottles of wine and beer to the wine and beer wholesalers (if the liquor store and wholesalers consent to the return).
Note: For health reasons, opened bottles and kegs must be destroyed.

Off-premises licensees (liquor stores, grocery stores, convenience stores, etc.) may:
  • Sell liquor, wine and beer inventory through going-out-of-business sales.

  • Return wine and beer to wine and beer wholesalers (if the wholesalers consent to the return) and sell all liquor to another off-premises Class E liquor licensee.

  • Sell all liquor, wine and beer to another off-premises Class E liquor licensee.
When liquor, wine and beer inventory is sold to another Class E liquor licensee, the purchaser must take the entire inventory.

Iowa Code section §123.21(10), and 185-4.36 Iowa Administrative Code

Bootlegging

Selling liquor, wine, beer and other alcoholic beverages without a license is bootlegging. Whenever liquor, wine and beer are sold or the cost is recovered in any manner, a license is required. Bootlegging is a criminal offense (serious misdemeanor).

Note: The Iowa Alcoholic Beverages Division has jurisdiction over license holders (individuals, partnerships, corporations, associations) only. For example, the Division has no jurisdiction over individuals who sell alcoholic beverages without a license (such as party hosts who charge admission and serve alcoholic beverages) – even though such activities are a serious violation of Iowa’s liquor laws.

Iowa Code sections §123.59, §123.60 through §123.88 and §123.119


PROMOTING ALCOHOLIC BEVERAGES

Advertising

Licensees may advertise price and brand names of liquor, wine and beer in the following manner:
  • Media (newspapers, radio, television, etc.).

  • Inside signs (neon signs, mirrors, etc.).

  • Outside signs (billboards, reader boards, etc.) which are not located on the licensed premises.

  • Licensees may not advertise specific brand names on signs located on the outside of their licensed premises (in the parking lot, on the outside of the building, etc.).
Exception: Outside signs with specific brand names of liquor, wine and beer are legal when located in enclosed or partially enclosed areas (patio umbrellas with specific name brands in a fenced outdoor beer garden, etc.).

Iowa Code section §123.51

Tastings

Licensees may conduct tastings and samplings on the licensed premises as long as the tasting or sampling involves only those alcoholic beverages that their license allows them to sell. For example, an establishment licensed to sell wine and beer must limit tastings or sampling to wine and beer – no liquor.

Tastings and samplings that involve liquor must be conducted on premises covered by a liquor license. Tastings that involve wine and beer may be conducted on licensed and unlicensed premises.

All laws and rules governing liquor, wine and beer (legal-drinking age, hours of sale, etc.) must be observed during tasting and sampling activities.

Iowa Code sections §123.46(2), §123.95 and §123.186, and 185 Iowa Administrative Code


PRODUCT INFORMATION

Alcoholic Beverages Defined

Alcoholic beverages contain more than 1/2 of 1 percent alcohol by volume. Alcoholic beverages are classified as liquor, wine or beer depending upon their alcoholic content and the manner in which the beverages are made.

Iowa Code sections §123.3(4), (5), (7), (33) and (37)

Measuring Alcoholic Content

Alcoholic content is measured in three different ways: volume, weight and proof. Liquor and some imported beers are measured by proof; wine by volume; and most American beers by weight.

To compare the alcoholic content of liquor, wine and beer, use these conversion formulas.

FROM
TO
CONVERSION FORMULA
PROOF VOLUME PROOF / 2
PROOF WEIGHT PROOF / 2 X .8
VOLUME PROOF VOLUME X 2
VOLUME WEIGHT VOLUME X .8
WEIGHT VOLUME WEIGHT / .8
WEIGHT PROOF WEIGHT / .8 X 2
Example: A Canadian beer marked 8 proof is rated 4% by volume (8% divided by 2 = 4%). Multiply that by .8 to get 3.2% alcoholic content measured by weight. (8 proof = 4% volume = 3.2% weight).


Nonalcoholic Beer

Nonalcoholic (NA) beer contains 1/2 of 1 percent (or less) alcohol by volume. Under Iowa law, beer contains more than 1/2 of 1 percent alcohol by volume.

Because NA beer does not contain enough alcohol to be classified as a beer, the laws and rules governing beer (legal-drinking age, hours of sale, etc.) do not apply. For example, licensees may lawfully sell and dispense NA beer to people under the legal-drinking age.

The Division does not encourage selling and serving NA beer to persons under the legal-drinking age. When on-premises licensees serve NA beer to individuals under 21, the Division recommends that the NA beer be served in the original container - not in a glass. The practice will assist law enforcement officials when entering an establishment and observing someone under the legal-drinking age consuming a beverage that looks and smells like beer.

Iowa Code sections §123.3(4) and (7)
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