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THE LICENSING PROCESS
The alcoholic beverage licensing process in Iowa is a cooperative
effort between the license applicant, local authority (city or county)
and the Iowa Alcoholic Beverages Division.
Renewing the License
License applicants are encouraged to submit their renewal application
to the local authority well in advance of license expiration. Licensees
who hold an annual alcoholic beverages license receive a 60-day notice
of renewal from the Division.
Applicants must complete two sets of applications - one copy for the
Iowa Alcoholic Beverages Division and one copy for the local authority.
All questions must be answered even if the applicant feels the information
is unimportant or does not apply to them. Applications ask only for
information necessary to determine whether or not the applicant and
the proposed premises meet legal licensing requirements.
The ownership and conviction questions on the license application
must be fully completed. License applicants must show 100 percent
ownership of the business. All convictions for violations of state
and federal laws must be listed for each person named in the ownership
question. Applicants with no convictions should write NONE. Leaving
this question blank or writing N/A (not apply) will cause the application
to be returned without issuance of the license.
The Division encourages license applicants to complete their own applications.
If the applicant relies on an insurance agent or another party to
complete the application, the applicant must verify the information
before signing the application. False or misrepresented information
may result in license denial.
The application and all required documents must be submitted in one
envelope to avoid delay in issuance of the license. Licensees with
questions as to which documents are required or the correct amount
of the license fee should contact the local authority or the Division
toll-free at 866.IowaABD.
Non-Renewals Going out of Business
Licensees who are not planning to renew their license, should notify
the local authority (city clerk or county auditor) or the Division,
as the information is necessary to update permanent licensing records.
LICENSING REQUIREMENTS
Background Investigations
Local authorities (cities and counties) and the Iowa Alcoholic Beverages
Division conduct background investigations to determine if applicants
and their proposed premises meet licensing requirements. Although
time-consuming, these background investigations play an important
role in the issuance of licenses. Background investigations protect
both the licensee and the public.
Applicant Requirements
To be eligible to hold a liquor, wine, or beer license, the license
applicant is required to meet the standards of ‘good moral
character’. Under Iowa law, applicants are considered to be
of ‘good moral character’ if the licensee fulfills the
following criteria:
- Is a U.S. citizen and an Iowa resident, incorporated to do business
in the state. The corporation must be registered and in good standing
with the Iowa Secretary of State's office.
- Has not been convicted of a felony during the past five years.
If an applicant has a felony conviction, the applicant is not eligible
to hold an Iowa alcoholic beverages license unless the felony conviction
is more than five years old and the applicant's rights of citizenship
have been restored.
- Has not had any financial interest in an Iowa liquor, wine or
beer license, that was revoked during the past two years.
- Has ‘financial standing’ and ‘good reputation’
to indicate that the applicant will comply with all laws and rules
governing the license.
Note: In evaluating the applicant's 'financial standing,'
the local authority and the Division may consider verified sources
of financial support and adequate operating capital for the licensee's
business, record of prompt payment of state and local taxes, fees
and charges for municipal utilities and municipal services, etc. In
evaluating the applicant's 'good reputation,' the local authority
and the Division may consider pattern and practice of disregard for
the law including convictions for sales to intoxicated persons, operating
a motor vehicle while under the influence of alcohol or drugs, etc.
All requirements apply to all officers, directors and shareholders
of a corporation, all general partners in a partnership, and to the
applicant's spouse (with exception of citizen and resident requirements)
if the business is operated under a sole proprietorship.
Premises Requirements
To meet licensing requirements, the proposed licensed premises must
conform to all applicable state laws, local ordinances, and health
and fire regulations. Licensed premises must meet the following
criteria:
- Premised must be owned or under the control of the applicant.
- Within the jurisdiction of one approving local authority.
- Kept clean, free of litter, and in good repair.
- Have toilet facilities for men and women.
- Equipped with running water from a source approved by the local
health
department.
- Have tables and chairs sufficient to seat a minimum of 25 people
at one time. (On-premises establishments only.)
Iowa Code sections 123.3(26), 123.30, 123.128, 123.129 and 123.176,
and 185-4.4 Iowa Administrative Code
OWNERSHIP INFORMATION
A Personal Privilege
Under Iowa law, liquor, wine and beer licenses are considered a
personal privilege. The individual, partnership or corporation who
actually owns and receives the proceeds of the alcoholic beverages
sales must hold the license.
Any change of ownership, including partial change of ownership must
be reported to and approved by the local authority (city council or
county board of supervisors) and the Iowa Alcoholic Beverages Division.
Change of ownership must be reported when it occurs, not at license
renewal time.
A new owner may not operate under the previous owner's license. Operating
under another individual’s license may result in suspension or
revocation of that license and may disqualify the new owner from holding
a license.
Iowa Code section 123.38
Change of Ownership
If the ownership of a licensed establishment is changed in some
manner, the Division requires certain information documenting the
change. Without proof of the change, new and renewal licenses cannot
be issued. The following documents must be submitted to the Division
and the local authority (city clerk or county auditor) when there
is change of ownership:
- Corporations - minutes of corporate meetings reflecting
resignation of the previous officers and directors and election
of the new officers and directors, along with copies of the transfer
of shares of corporation stock.
- Partnerships - dissolution of partnership or notarized
affidavit from the partner leaving the partnership, and amended
trade name document.
- Individuals - cancellation of the existing license by
the previous licensee; or, copy of the finalized sales contract,
bill of sale or warranty deed; and/or copy of lease agreement.
When change of ownership is due to divorce or death, a copy of the
divorce decree or death certificate is required. (Divorce decrees
will be returned to the applicant and will not be made a part of the
permanent licensing record.)
When new partners are added to partnerships or new officers, directors
or shareholders are added to corporations, the new partner, officer,
director or shareholder must complete the ownership and conviction
questions on a new application. This provides the local authority
and the Division with the information necessary to determine if the
new individuals meet licensing requirements.
Iowa Code section 123.38 and 185-5.7 Iowa Administrative Code
ADDITIONAL LICENSE PRIVILEGES
Sunday Sales Privilege
Licensees who wish to sell and/or serve alcoholic beverages on Sundays
must apply for a Sunday sales privilege. Only Class E liquor licenses
and Class B wine permits automatically include a Sunday sales privilege.
(Class E liquor licensees who hold a Class C beer permit must obtain
a Sunday sales privilege for Sunday beer sales.)
The words 'Sunday sales privilege' will be printed at the bottom of
the license if the licensee has met all requirements for Sunday alcoholic
beverages sales. The Sunday sales privilege is not a stand-alone license.
It only extends the number of days on which the licensee may sell
alcoholic beverages. The Sunday sales privilege expires with the license
and must be renewed annually.
Sunday hours are from 8 AM on Sunday to 2 AM on the following Monday.
The same laws and regulations that govern the regular license govern
the Sunday sales privilege.
Iowa Code sections 123.36(6), 123.49(2)(b) and (k), and 123.134(5)
Brew Pubs Special Class “A” Beer Permits
Brewpubs are licensed on-premises establishments that are also licensed
to manufacture beer. The beer may be sold at retail to patrons for
consumption on the premises, and to licensed wholesalers for resale
to other on- and off-premises retail licensees. Iowa law allows Class
C and Class B beer permittees to apply for and obtain a brewpub license.
No other licenses qualify.
The words 'brew pub privilege' will be printed at the bottom of the
license if the licensee has met all the requirements for a brewpub.
The brewpub privilege is not a stand-alone license. It expires with
the license and must be renewed annually.
Iowa Code section 123.130
Catering Privilege
Licensees who wish to cater liquor, wine or beer as part of a food
catering service, may do so by obtaining a catering privilege. The
catering privilege is not a stand-alone license. Catering privileges
may be issued only to holders of annual Classes B (hotel/motel) and
C (restaurants, etc.) liquor licenses.
The catering privilege allows the licensee to act as the agent of
a private social host for the purposes of providing and serving alcoholic
beverages at private social gatherings which are held in a private
place. The licensee must serve food with the alcoholic beverages.
All food and alcoholic beverages must be served without cost to the
guests. Neither the licensee nor the social host may ask guests of
the special gathering to make donations in payment for food or alcoholic
beverages.
Examples of private social gatherings include: parties held in private
residences, wedding receptions held in churches, and business parties
held in unlicensed private business offices or buildings.
The words 'catering privilege' will be printed at the bottom of the
license if the licensee has obtained a catering privilege. The catering
privilege is not a stand-alone license. It expires with the license
and must be renewed annually.
For the purposes of the catering privilege, a private place is one
that meets all of the following requirements:
- The place is not a licensed establishment.
- The general public does not have access to the private social
gathering.
- People attending the social gathering are limited to the social
host and the host's bona fide guests.
- Goods or services are not purchased or sold by or to the guests
during the social
gathering.
- Guests are not charged or responsible for payment of any fees,
fares, ticket prices or donations to attend the gathering.
- The caterer does not pay rent or other charges for use of the
place. (A private social host may rent a place for a private social
gathering, and is solely responsible for any rent or other charges
for the place.)
Examples of private places include: unlicensed private business
offices, conference rooms, meeting halls, activity centers, community
centers, church halls and other private buildings to which the general
public does not have access.
Iowa Code section 123.95 and 185-4.23(4) Iowa Administrative Code
Outdoor Service Areas
Outdoor service areas are designated areas adjacent to licensed
premises. Outdoor service areas are considered extensions of existing
licensed premises. They are not automatically included as part of
the licensed premises.
Licensees may not sell or serve any alcoholic beverages in an outdoor
area until they have met licensing requirements by filing the following
documents with the Iowa Alcoholic Beverages Division:
- 'Application for outdoor service area,' approved and signed by
the city council or county board of supervisors.
- A sketch of the outdoor area showing boundaries of the area and
its relationship to the licensed premises.
- Endorsement from the licensee's insurance company certifying that
the dram shop insurance covers the outdoor service area. (Endorsement
is required only when dram shop insurance is required for the class
of license the licensee holds.)
The words 'outdoor service area' will be printed at the bottom of
the license if the licensee has met all requirements for an outdoor
service area.('outdoor service area' will not be reflected on the
license if the outdoor area is to be used for less than a two-week
period.) Outdoor service areas are not stand-alone licenses. They
expire with the license and must be renewed annually.
Note: While the city council or county board of supervisors
has the discretion to approve or deny a licensee's 'application for
outdoor service area', denied applicants may appeal the denial to the ABD.
Iowa Code section 123.3(20) and 185-4.13 Iowa Administrative Code
License Transfers
Although liquor, wine and beer licenses may not be transferred from
one person to another, they may be transferred from one location to
another.
Licenses may be transferred only within the boundaries of the approving
local authority. If the license application approval was from a county
board of supervisors, the license may be transferred only within the
unincorporated area of the same county - not to an incorporated city
within that county. If the license application was approved by a city
council, the license may be transferred only within the same city
- not to an unincorporated area of that county or to another incorporated
city.
Licensees may transfer their license to another qualified premises
by filing the following documents with the Iowa Alcoholic Beverages
Division:
- 'Application for transfer of liquor license, wine permit or beer
permit,' approved and signed by the local authority.
- Sketch of the new location showing the bar, openings to other
rooms, exits,
restrooms, tables and seats and storage area.
- Endorsement from the licensee's insurance company certifying that
the dram shop insurance is transferred to the new location for the
same period that the license is transferred. (Endorsement is required
only when dram shop insurance is required for the class of license
that is transferred.)
The above documents must be filed with the Division before selling,
serving, or dispensing alcoholic beverages at the new location.
Licensees must limit the selling and serving of alcoholic beverages
in the new location to the dates of transfer that have been approved
by the local authority (city council or county board of supervisors).
All selling and serving of alcoholic beverages must cease at the original
location during the period of the transfer. Only those alcoholic beverages
permitted by the license may be sold on the premises to which the
license has been transferred.
Transfers may be temporary (24 hours to seven days) or permanent.
If the transfer is permanent, the Division will issue an amended license
reflecting the new address.
Iowa Code section 123.38 and 185-4.18 Iowa Administrative Code
Living Quarters Permit
When living quarters are accessible from the inside of a licensed
establishment, the licensee must file a 'living quarters permit' with
the Division. The permit separates the private living quarters from
the licensed premises and protects the licensee (or resident) from
searches without warrant of the private living quarters. Law enforcement
officials must obtain a search warrant before they can search the
area designated as a private living quarters.
Licensees may not store liquor, wine, or beer (business inventory)
in the area designated as the living quarters. All books and records
with regard to the alcoholic beverages business must remain in the
part of the building designated as the licensed premises - not in
the living quarters.
The words 'living quarters' will be printed at the bottom of the license
if the licensee has filed a living quarters permit with the Division.
Iowa Code sections 123.30(2) and 185-5.6 Iowa Administrative Code
Special-Event Licenses
Qualified persons wanting to sell and dispense alcoholic beverages
at a town celebration or other special event must obtain a five-day
license. Five-day licenses are valid for a period of five consecutive
days with exception of a Sunday, which may fall within the five-day
period. License applicants wanting to sell alcoholic beverages on
a Sunday within the five-day period, must also obtain a Sunday sales
privilege.
Licensing requirements for five-day licenses are the same as the requirements
for annual licenses of the same class. The only difference is the
license is valid for a shorter period of time. Special event licenses
may be issued for on-premises licenses only.
Note: License applicants also may apply for and obtain
14-day special event licenses; and, six- and eight-month seasonal
licenses. Licensing requirements for seasonal licenses are the same
as the requirements for annual licenses of the same class. Seasonal
licenses are not renewable. A two-month period must elapse before
another six- or eight-month seasonal license may be issued to the
same premises.
Iowa Code section 123.34
OTHER LICENSES REQUIRED
In addition to the liquor, wine, or beer license issued by the Iowa
Alcoholic Beverages
Division, licensees may also need to obtain the following licenses
or permits:
- Sales Tax Permit (Iowa Department of Revenue and Finance,
1.800.367.3388 or 515.281.5777).
- Food Establishment or Food Service License (Iowa Department
of Inspections and Appeals, 515.281.6538).
- Federal Special Occupational Tax Permit (Bureau of Alcohol,
Tobacco and Firearms, 513.684.2979).
- Federal Basic Wholesalers' Permit (Bureau of Alcohol,
Tobacco and Firearms, 513.684.3337).
Note: Federal Basic Wholesaler's Permits are required
only for Class E liquor licensees who sell liquor to on-premises licensees.
Many local authorities (cities and counties) have additional licensing
requirements. Licensees must contact the city clerk or county auditor
to determine if there are additional licenses (dance permits, cigarette
permits, etc.) required. |
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