Beecher Store, Inc. v. Iowa Department of Revenue Alcoholic Beverages Division

CourtSupreme Court of Iowa
DecidedFebruary 20, 2026
Docket24-1422
StatusPublished

This text of Beecher Store, Inc. v. Iowa Department of Revenue Alcoholic Beverages Division (Beecher Store, Inc. v. Iowa Department of Revenue Alcoholic Beverages Division) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beecher Store, Inc. v. Iowa Department of Revenue Alcoholic Beverages Division, (iowa 2026).

Opinion

In the Iowa Supreme Court

No. 24–1422

Submitted October 8, 2025—Filed February 20, 2026

Beecher Store, Inc.,

Appellant,

vs.

Iowa Department of Revenue Alcoholic Beverages Division,

Appellee.

Appeal from the Iowa District Court for Dubuque County, Thomas A.

Bitter, judge.

An alcohol licensee appeals sanctions arising from sales of alcohol to

underage buyers. Affirmed.

May, J., delivered the opinion of the court, in which Waterman, Mansfield,

and McDonald, JJ., joined. Oxley, J., filed a dissenting opinion, in which

Christensen, C.J., and McDermott, J., joined.

Theodore T. Appel (argued), Kevin C. Rigdon, and Olivia A. McGovern of

Bradley & Riley PC, Cedar Rapids, for appellant.

Brenna Bird, Attorney General, and John R. Lundquist (argued), Assistant

Attorney General, for appellee. 2

May, Justice.

Drinking alcohol can create dangers. In response to those dangers, Iowa’s

elected lawmakers have enacted various restrictions on the sale of alcohol. Two

of those restrictions are relevant here.

First, Iowa Code section 123.49(2)(h) (2022) prohibits employees of a retail

alcohol licensee—such as a liquor store—from selling alcohol to people who are

under the age of twenty-one. We call this prohibition “the underage rule.”

Second, Iowa Code section 123.50(3) imposes sanctions on alcohol

licensees if their employees violate the underage rule. And if multiple violations

occur within specified timeframes, the sanctions get tougher. For instance,

although a first violation subjects the licensee to a $500 civil penalty, a

“second violation within two years” subjects the licensee to both a $1,500 civil

penalty and a thirty-day license suspension. Id. § 123.50(3)(a)–(b).

In this case, the question is whether the sanctions for a “second violation

within two years” apply when a liquor store employee violates the underage rule

twice in one day by making two separate sales of alcohol to two different minors

about five minutes apart. The answer is yes. In that scenario, there are two

violations: a first violation with the first minor and a second violation with the

second minor. And because the two violations occur on the same day, the

“second violation” occurs “within two years” of the first. So the sanctions for a

“second violation within two years” apply. See id.

I. Background.

Beecher Store, Inc. (Beecher) holds a class “E” retail alcohol license for its

business, Beecher Liquor in Dubuque. This kind of license authorizes Beecher

to sell beer, liquor, and wine “to go.” See id. § 123.30(3)(e)(1). 3

On the evening of October 15, 2022, the Dubuque Police Department

conducted compliance checks at alcohol-selling businesses across Dubuque,

including Beecher Liquor. Outside of Beecher Liquor, officers gave cash to two

underage individuals and sent them inside to try to buy alcohol. Each buyer

went to a cooler, grabbed a single alcoholic beverage, and approached the

counter to check out. There were two employees behind the counter. Owais

Mohammed Khan was one of them. Each buyer approached Khan separately.

Each buyer presented an alcoholic beverage to Khan separately. Khan checked

out each buyer separately. Each buyer left with a beverage.

The buyers presented the beverages to the police officers. They told the

officers that Beecher’s clerk had looked at their IDs but did not scan the IDs to

verify their ages.

The police issued two criminal citations to Khan—one for each sale. Each

citation charged Khan with violating Iowa Code section 123.49(2)(h), the

prohibition on selling alcohol to underage people. The first citation identified the

violation time as 9:45 p.m. on October 15. The second citation identified

9:50 p.m. as the violation time.

Khan pleaded guilty to both citations on October 19. Then the Iowa

Alcoholic Beverages Division (ABD) issued two civil penalty orders to Beecher.

The first order imposed a civil penalty of $500. That is the penalty required by

Iowa Code section 123.50(3)(a) for a first violation of the underage rule.

The second order imposed the civil penalty of $1,500 plus a thirty-day

license suspension. Those are the penalties required for a second violation within

two years. Id. § 123.50(3)(b).

Beecher did not contest the first-violation order. But Beecher did contest

the second-violation order. 4

Beecher’s contest was heard by an administrative law judge (ALJ). Beecher

complained that it had received no notice between the two violations. And so,

Beecher argued, the ALJ should use “leniency” to determine “that both violations

were, in fact, one series of events” and, therefore, a second-violation order was

not warranted.

The ALJ rejected Beecher’s request. Although the two sales were close

together in time, the second sale was still a second violation. So the ALJ upheld

the second-violation order.

Beecher sought agency review of the ALJ’s decision. The ABD rejected

Beecher’s challenge and, instead, issued a final agency decision that affirmed

and adopted the ALJ’s decision. Beecher then filed a petition for judicial review.

The district court denied Beecher’s petition. Beecher then filed this appeal, which

we retained.

II. Issues Presented.

Beecher raises two arguments here:

1. The ABD wrongly interpreted Iowa Code section 123.50(3).

2. Alternatively, Iowa Code section 123.50(3) is “void for vagueness” under

the United States Constitution and the Iowa Constitution.

III. Standards of Review.

We apply different standards of review to different kinds of arguments.

Going in reverse order, we review Beecher’s constitutional argument de novo.

Banwart v. Neurosurgery of N. Iowa, P.C., 18 N.W.3d 267, 272 (Iowa 2025);

Jim O. Inc. v. City of Cedar Rapids, 587 N.W.2d 476, 478 (Iowa 1998).

As for Beecher’s statutory-interpretation argument, “[w]e review an

agency’s interpretation of a statute for errors at law unless the legislature has

clearly vested interpretive authority in the agency.” Calcaterra v. Iowa Bd. of 5

Med., 965 N.W.2d 899, 903 (Iowa 2021); see Renda v. Iowa C.R. Comm’n,

784 N.W.2d 8, 10 (Iowa 2010). “If agency discretion has been granted by the

legislature,” we apply a more deferential standard and “will reverse [the] agency’s

interpretation only if it is ‘irrational, illogical, or wholly unjustifiable.’ ”

Calcaterra, 965 N.W.2d at 903 (quoting Renda, 784 N.W.2d at 10).

In Renda v. Iowa Civil Rights Commission, we identified two circumstances

in which we will find that interpretive authority has been granted to an agency.

The first is where the legislature has “explicitly” granted interpretive authority.

784 N.W.2d at 11; see, e.g., Iowa Ass’n of Sch. Bds. v. Iowa Dep’t of Educ.,

739 N.W.2d 303, 307 (Iowa 2007) (noting that Iowa Code section 256.9(16)

(2003) explicitly provided that the director of the department of education

“shall . . . [i]nterpret the school laws and rules relating to the school laws”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Walsh v. Kirby
529 P.2d 33 (California Supreme Court, 1974)
State v. Robinson
262 N.W.2d 270 (Supreme Court of Iowa, 1978)
Patchette v. State
374 N.W.2d 397 (Supreme Court of Iowa, 1985)
State v. Tillman
228 N.W.2d 38 (Supreme Court of Iowa, 1975)
State v. Nail
743 N.W.2d 535 (Supreme Court of Iowa, 2007)
State v. Clark
351 N.W.2d 532 (Supreme Court of Iowa, 1984)
State v. Wade
467 N.W.2d 283 (Supreme Court of Iowa, 1991)
State v. Hollins
310 N.W.2d 216 (Supreme Court of Iowa, 1981)
Hajek v. Iowa State Board of Parole
414 N.W.2d 122 (Supreme Court of Iowa, 1987)
Jahnke Ex Rel. Jahnke v. Incorporated City of Des Moines
191 N.W.2d 780 (Supreme Court of Iowa, 1971)
State v. Thomas
275 N.W.2d 422 (Supreme Court of Iowa, 1979)
State v. Spoonemore
598 N.W.2d 311 (Supreme Court of Iowa, 1999)
State v. Baudler
349 N.W.2d 493 (Supreme Court of Iowa, 1984)
Iowa Ass'n of School Boards v. Iowa Department of Education
739 N.W.2d 303 (Supreme Court of Iowa, 2007)
Jim O. Inc. v. City of Cedar Rapids
587 N.W.2d 476 (Supreme Court of Iowa, 1998)
Renda v. Iowa Civil Rights Commission
784 N.W.2d 8 (Supreme Court of Iowa, 2010)
State v. Freeman
705 N.W.2d 286 (Supreme Court of Iowa, 2005)
State v. Conley
222 N.W.2d 501 (Supreme Court of Iowa, 1974)
Nash Finch Co. v. City Council of Cedar Rapids
672 N.W.2d 822 (Supreme Court of Iowa, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
Beecher Store, Inc. v. Iowa Department of Revenue Alcoholic Beverages Division, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beecher-store-inc-v-iowa-department-of-revenue-alcoholic-beverages-iowa-2026.