185—4.2(123) General requirements. All applicants for licenses, permits, or certificates of compliance shall comply with the following requirements, where applicable, prior to receiving a license, permit, or certificate of compliance.
	4.2(1) Cleanliness of premises. The interior and exterior of the licensed premises shall be kept clean, free of litter or rubbish, painted and in good repair. Licensees and permittees shall at all times keep and maintain their respective premises in compliance with the laws, orders, ordinances and rules of the state, county and city health and fire departments, and the Iowa department of inspections and appeals.
	4.2(2) Toilet facilities. All licensees and permittees who mix, serve, or sell alcoholic beverages for consumption on the licensed premises shall provide for their patrons adequate, conveniently located indoor or outdoor toilet facilities. Compliance with county, city, and department of inspections and appeals’ rules and regulations regarding toilet facilities, including any waivers granted by those authorities, shall constitute compliance with this rule. Outdoor toilet facilities shall be approved by the department of inspections and appeals and the local approving authority where the licensed premises is located.
	4.2(3) Water. All licensed premises shall be equipped with hot and cold running water from a source approved by an authorized health department.
	4.2(4) Financial standing and reputation. A local authority or the administrator may consider an applicant’s financial standing and good reputation in addition to the other requirements and conditions for obtaining a license, permit, or certificate of compliance, and the local authority or the administrator shall disapprove or deny an application for a license, permit, or certificate of compliance if the applicant fails to demonstrate that the applicant complies with the lawful requirements and conditions for holding the license, permit, or certificate of compliance.
	a. 	In evaluating an applicant’s “financial standing,” the local authority or the administrator may consider such factors as, but not limited to, the following:
	(1)	Verified source(s) of financial support and adequate operating capital for the applicant’s proposed establishment.
	(2)	A record of timely submission of all required federal, state, or local tax returns or forms and prompt payment of all taxes due.
	(3)	A record of prompt payment to the local authority of fees or charges made by a local authority for municipal utilities or other municipal services incurred in conjunction with the proposed establishment.
	(4)	A record of prompt payment or satisfaction of administrative penalties imposed pursuant to Iowa Code chapter 123.
	(5)	A record of maintaining, and providing prompt payment for, dramshop liability insurance coverage as required pursuant to Iowa Code chapter 123.
	(6)	A record of prompt payment for license, permit, or certificate fees.
	(7)	A record of prompt payment for alcoholic liquor orders placed with the division.
	b. 	In evaluating an applicant’s “good reputation,” the local authority or the administrator may consider such factors as, but not limited to, the following:
	(1)	A pattern or practice of sales of alcoholic beverages to persons under the legal age for which the licensee or permittee, or the licensee’s or permittee’s agents or employees, have pled or have been found guilty.
	(2)	A pattern or practice by the licensee or permittee, or the licensee’s or permittee’s agents or employees, of violating alcoholic beverages laws and regulations for which corrective action has been taken since the previous license or permit was issued.
	(3)	Sales to intoxicated persons.
	(4)	Licensee or permittee convictions for violations of laws relating to operating a motor vehicle while under the influence of drugs or alcohol and the recency of such convictions.
	(5)	Licensee or permittee misdemeanor convictions and the recency of such convictions.
	(6)	A pattern or practice by the licensee or permittee, or the licensee’s or permittee’s agents or employees, of failing to cooperate with the department of public safety, the division, the county attorney, the county sheriff and sheriff’s deputies, the city police department, or the city attorney.
	(7)	A pattern or practice by the licensee or permittee of violating local ordinances established by the local authority pursuant to Iowa Code section 123.39(2).
	(8)	A pattern or practice by the licensee of failing to report any change in the ownership or interest of the business pursuant to Iowa Code section 123.39(1)“b”(3).
This rule is intended to implement Iowa Code sections 123.3(40) and 123.10(11).
[ARC 5392C, IAB 1/13/21, effective 2/17/21; ARC 7073C, IAB 9/20/23, effective 10/25/23]