House Study Bill 21 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act concerning penalties for sale of alcohol to minors by 1 alcohol beverage licensees and permittees and providing for 2 an alcohol compliance employee training program. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1860HC (6) 84 rn/nh

H.F. _____ Section 1. Section 123.50, subsection 3, paragraphs b 1 through d, Code 2011, are amended to read as follows: 2 b. A second violation within two years shall subject the 3 licensee or permittee to either a thirty-day suspension and 4 or a civil penalty in the amount of one thousand five hundred 5 dollars. The licensee or permittee may select the penalty to 6 be applied under this paragraph. 7 c. A third violation within three years shall subject the 8 licensee or permittee to a sixty-day thirty-day suspension and 9 a civil penalty in the amount of one thousand five hundred 10 dollars. 11 d. A fourth fifth violation within three four years shall 12 result in revocation of the license or permit. 13 Sec. 2. Section 123.50, subsection 3, Code 2011, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . 0c. A fourth violation within three 16 years shall subject the licensee or permittee to a sixty-day 17 suspension and a civil penalty in the amount of one thousand 18 five hundred dollars. 19 Sec. 3. Section 123.50, Code 2011, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 5. If an employee of a licensee or 22 permittee violates section 123.49, subsection 2, paragraph 23 “h” , the licensee or permittee shall not be assessed a penalty 24 under subsection 3, and the violation shall be deemed not to 25 be a violation of section 123.49, subsection 2, paragraph 26 “h” , for the purpose of determining the number of violations 27 for which a penalty may be assessed pursuant to subsection 28 3, if the employee holds a valid certificate of completion 29 of the alcohol compliance employee training program pursuant 30 to section 123.50A at the time of the violation. A licensee 31 or permittee may assert only once in a four-year period the 32 bar under this subsection against assessment of a penalty 33 pursuant to subsection 3, for a violation of subsection 123.49, 34 subsection 2, paragraph “h” , that takes place at the same place 35 -1- LSB 1860HC (6) 84 rn/nh 1/ 4

H.F. _____ of business location. 1 Sec. 4. NEW SECTION . 123.50A Alcohol compliance employee 2 training program. 3 1. The division shall develop an alcohol compliance 4 employee training program, not to exceed two hours in length 5 for employees and prospective employees of licensees and 6 permittees, to inform the employees about state and federal 7 liquor laws and regulations regarding the sale of alcoholic 8 liquor, wine, or beer to persons under legal age, and 9 compliance with and the importance of laws regarding the sale 10 of alcoholic liquor, wine, or beer to persons under legal age. 11 2. The alcohol compliance employee training program shall 12 be made available to employees and prospective employees of 13 licensees and permittees at no cost to the employee, the 14 prospective employee, or the licensee or permittee, and in a 15 manner which is as convenient and accessible to the extent 16 practicable throughout the state so as to encourage attendance. 17 Contingent upon the availability of specified funds for 18 provision of the program, the division shall schedule the 19 program on at least a monthly basis and the program shall be 20 available at a location in at least a majority of counties. 21 3. Upon completion of the alcohol compliance employee 22 training program, an employee or prospective employee shall 23 receive a certificate of completion, which shall be valid for 24 a period of two years, unless the employee or prospective 25 employee is convicted of a violation of section 123.49, 26 subsection 2, paragraph “h” , in which case the certificate shall 27 be void. 28 4. The division shall also offer periodic continuing 29 employee training and recertification for employees who have 30 completed initial training and received an initial certificate 31 of completion as part of the alcohol compliance employee 32 training program. 33 EXPLANATION 34 This bill concerns penalties applicable to liquor control 35 -2- LSB 1860HC (6) 84 rn/nh 2/ 4

H.F. _____ licensees and beer and wine permittees for sales of alcohol 1 to minors. The bill also establishes an alcohol compliance 2 employee training program. 3 The bill modifies the civil penalties applicable to liquor 4 control licensees and beer and wine permittees for underage 5 sales of alcohol. 6 The bill provides that for a second violation within two 7 years, the licensee or permittee is subject to either a 30-day 8 suspension or a civil penalty in the amount of $1,500 and 9 provides that the licensee or permittee may select the penalty 10 to be applied. Current law provides that the penalty is both a 11 30-day suspension and a fine. 12 As to a third violation within three years, the bill modifies 13 current law by providing that the licensee or permittee is 14 subject to a 30-day suspension instead of the current 60-day 15 suspension. 16 As to a fourth violation within three years, the bill 17 provides that the licensee or permittee is subject to a 18 60-day suspension and a civil penalty in the amount of $1,500. 19 Current law provides for revocation of the license or permit. 20 However, the bill does provide for revocation of the license or 21 permit for a fifth violation within four years. 22 The bill also provides that the civil penalties applicable 23 to a licensee or permittee for underage sales of alcohol 24 shall not apply if the employee of the licensee or permittee 25 who sold alcohol to the underage person has a certificate 26 of completion from the alcohol compliance employee training 27 program established by the bill. A licensee or permittee shall 28 only be able to assert this bar to imposition of a penalty once 29 in a four-year period. 30 The bill requires the alcohol beverages division to 31 establish an alcohol compliance employee training program. The 32 program shall be of no more than two hours in length and shall 33 inform employees about state and federal laws relative to sale 34 of alcohol to underage persons. The bill provides that the 35 -3- LSB 1860HC (6) 84 rn/nh 3/ 4

H.F. _____ program shall be conducted at no cost and shall be held in a 1 manner that is accessible to persons throughout the state. The 2 bill provides that a certificate of completion, valid for two 3 years, shall be issued to a person who completes the program. 4 The bill also provides that the division establish programs 5 for recertifying employees and providing continuing employee 6 training. 7 -4- LSB 1860HC (6) 84 rn/nh 4/ 4