(A) Purpose. The purpose of this section is to prohibit the presence of persons under the age of 21 in establishments serving alcoholic beverages for consumption on the premises unless the sale of alcoholic beverages is merely incidental to the business conducted at the establishment or the licensee has received a letter of exemption.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ALCOHOLIC BEVERAGE. Any beverage containing more than one-half of 1% of alcohol by volume, including alcoholic liquor, wine and beer.
CLASS I EXEMPTION. An exemption pursuant to division (E) below for a licensee whose sales of goods and services other than alcoholic beverages exceed 50% or more of gross sales.
CLASS II EXEMPTION. An exemption pursuant to division (F) below for a licensee whose sale of goods and services other than alcoholic beverages are less than 50% of gross sales.
GROSS SALES. The licensee’s sales from goods and services on the licensed premises but does not include cover charges, entertainment fees or coin operated amusement machines. This means cover charges or any other type of fees to gain entrance onto the premises are not included. Entertainment fees are not included. The fees include, but are not limited to, ticket sales which require patrons to purchase tickets in order to enter the business for live or other types of entertainment and entry fees for pool or other types of tournaments. Coin operated machines including, but not limited to, non-food vending machines, pool tables, dart machines, pinball machines, video games and shuffleboard machines are not included as part of gross sales receipts.
LICENSED PREMISES. All rooms, enclosures, contiguous areas or places susceptible of precise description where alcoholic beverages are sold for consumption on the premises under authority of a liquor control license, wine permit or beer permit.
VALID FORM OF IDENTIFICATION. Any state-issued drivers license, state-issued identification card or a military identification card on which a photograph, name and date of birth are affixed.
(C) Persons under 21 years of age prohibited on licensed premises.
(1) It is unlawful for the holder of a license issued pursuant to the Iowa Alcoholic Beverage Control Act to knowingly permit, or fail to take reasonable measures to prevent, the entry onto the licensed premises of any and all persons who have not yet attained the age of 21 unless the sale of goods and services other than alcoholic beverages constitutes 50% or more of gross sales of the licensed premises unless the licensee has a letter of exemption as provided in this section or the person under age is excluded pursuant to division (D) below of this section.
(2) It is unlawful for any person employed with respect to a licensed premises to knowingly permit, or fail to take reasonable measures to prevent, the entry onto the licensed premises of any and all persons under the age of 21 unless the sale of goods and services other than alcoholic beverages constitutes 50% or more of gross sales of the licensed premises unless the licensee has a letter of exemption as provided in this section or the person under age is excluded pursuant to division (D) below of this section.
(3) It is the duty of the licensee where persons under the age of 21 are prohibited and of the person or persons managing the premises to cause to be posted, maintained and prominently displayed at all times within the licensed premises, and at each entrance thereto, an easily readable notice in the English language stating that persons less than 21 years of age are prohibited from entering the premises.
(D) Persons under 21 years of age who are permitted on licensed premises. The provisions of division (C) above shall not apply to persons under 21 years of age when:
(1) The underage person is an employee of the license holder, or performing a contracted service with respect to the premises and is on the premises during the person’s scheduled work hours;
(2) The underage person is accompanied by a parent, legal guardian or spouse who is of legal age to purchase alcoholic beverages;
(3) The licensee’s gross sales from the sale of goods and services other than alcoholic beverages constitute 50% or more of the gross sales of the licensed premises as defined in division (B) above and the licensee has received a letter of exemption so stating; and
(4) The licensee has received a letter of exemption based on a written plan to prevent persons under the age of 21 from obtaining alcoholic beverages from the licensed premises or patrons thereof during the hours the exemption applies pursuant to division (E)(4) below.
(E) Letter of exemption to licensee whose sales of goods and services other than alcoholic beverages exceed 50% or more of gross sales.
(1) A licensee whose sale of goods and services other than alcoholic beverages, constitutes 50% or more of gross sales and the sale of alcoholic beverages is merely incidental to the licensee’s business shall obtain a letter of exemption prior to allowing persons under 21 years of age on the premises. A letter of exemption may be obtained by submitting to the City Clerk’s office the appropriate forms and a certified statement from a certified public accountant verifying that 50% or more of the licensee’s gross sales is from goods and services other than alcoholic beverages. The letter of exemption, if granted, shall be effective for the duration of the license or permit and renewed annually with the license. A current certified statement from a certified public accountant shall be submitted each time the license or permit is renewed or upon demand of the City Clerk’s office. The City Clerk shall place the application on the City Council agenda for consideration. After City Council approval, the letter of exemption shall be signed by the City Clerk.
(2) In the event the city denies the licensee’s application for a letter of exemption, the licensee shall have the right to appeal the denial to the Council by submitting a written letter of appeal to the City Clerk within seven days after receipt of the letter of exemption denial. The Council shall schedule a hearing for the licensee within 30 days of receipt of the appeal to determine whether the letter of exemption should have been denied and issue its decision thereafter.
(F) Letter of exemption to licensee whose sales of goods and services other than alcoholic beverages are less than 50% of gross sales.
(1) A letter of exemption which will permit persons under the age of 21 to be on licensed premises where sales of goods and services other than alcoholic beverages are less than 50% of gross sales may be obtained by submitting to the City Clerk, for approval, a written plan detailing specific measures to be employed by the licensee to prevent persons under the age of 21 from obtaining alcoholic beverages from the licensed premises or patrons thereof. The plan shall include a system by which persons under the age of 21 are readily distinguishable from persons who are not, and shall include safeguards to minimize subversion of the system.
(2) Applicants must also provide some social activity, (excluding bands, DJs and karokee), for the 18 through 20 year old patrons, during all hours of operation. Pool tables and dart games qualify as social activity. Once a letter of exemption is granted, it shall be required of the licensee, and all agents and employees thereof, to ensure the system is operational at all times. Failure of the system to be operational during business hours shall be deemed a violation of this section.
(3) Where there is a letter of exemption under this section, all bar/wait staff and security employees of the licensee must be at least 21 years of age.
(4) The letter of exemption for licensees whose sales of goods and services other than alcoholic beverages are less than 50% of gross sales shall permit persons under the age of 21 on the premises until 10:00 p.m. As of 10:00 p.m., no person under 21 years of age shall be on the licensed premises.
(5) The letter of exemption, if granted, shall be effective for the duration of the license and renewed annually with the license. All new applications and renewal applications for an exemption under this section will require review and approval from the City Clerk or his/her authorized designee. If approved by the City Clerk or his or her authorized designee, the application shall be placed on the City Council agenda for consideration. After City Council approval, the letter of exemption shall be signed by the City Clerk.
(6) In the event the City Clerk or his/her authorized designee denies the licensee’s application for a letter of exemption under this section, the licensee shall have the right to appeal the denial to the Council by submitting a letter of appeal to the City Clerk within seven days after receipt of the letter of exemption denial. The Council shall then schedule a hearing for the licensee within 30 days of receipt of the appeal to determine whether the letter of exemption should have been denied and issue its decision thereafter. Approval by the City Council of the letter of exemption under this section shall require six affirmative votes.
(G) Valid form of identification required on licensed premises.
(1) (a) It shall be required of all persons who enter licensed premises which are required to have a letter of exemption pursuant to division (F) above to have on their persons a valid form of identification, in the form of:
1. Pictured state driver’s license;
2. Pictured state identification card; or
3. Pictured military identification card with a date of birth, and to produce the identification upon demand of the license or permit holder, any employee or agent thereof, or a police officer, at any time.
(b) Persons from whom identification is demanded but who cannot produce a valid form of identification shall not be allowed entry onto the licensed premises; or, if on the premises, must leave immediately.
(2) Persons under the age of 21 who fraudulently cause themselves to be identified as age 21 or older shall be guilty of a violation of this section. Persons who aid or abet any person under the age of 21 to be identified as age 21 or older shall be guilty of a violation of this section.
(H) Suspension of exemption, retail alcohol license for violation of this section.
(1) A licensee shall be subject to lose its exemption for up to 60 days for any violation of the Iowa Code Chapter 123, city ordinances, any conditions of their letter of exemption or for failing to employ the specific measures proposed to and approved by the City Clerk or his/her authorized designee.
(2) Prior to the re-issuance of a letter of exemption under division (F) above that has been revoked, all bar/wait staff and security employees of the licensee must complete, pass and continue to be certified by T.I.P.S. training.
(3) The Council shall hold a hearing for the licensee holder to show cause as to why the City should not suspend the licensee’s exemption, and/or retail alcohol license. The Council may, pursuant to the Iowa Code § 123.39, suspend the exemption, and/or license for a period of up to one year.
(4) The City Clerk shall notify the license holder at least seven days prior to the time the Council will consider the recommendation pertaining to the exemption. The license holder shall be given the opportunity to address the Council and state why the recommendation should not be approved. The Council may accept or modify the recommendation of the Clerk. The decision of the Council can be appealed to the administrator of the State Alcoholic Beverages Division of the Department of Commerce except for any decision regarding the suspension, revocation or denial of the licensee’s exemption.
(Ord. 2606, passed 3-26-2019; Ord. 2735, passed 2-13-2024) Penalty, see § 110.99