A. Any violation of state law, local ordinance, or the rules of the alcoholic beverages division by any employee, agent, or servant of a licensee or permittee shall be deemed to be the act of the licensee or the permittee and shall subject the license or permit of said licensee or permittee to civil penalties, including suspension or revocation.
B. The city council may suspend a license or permit for a period not to exceed one year, revoke the license or permit, or impose a civil penalty not to exceed one thousand dollars ($1,000.00) per violation. Before suspension, revocation, or imposition of a civil penalty the license or permit holder shall be given written notice and opportunity for a hearing in accordance with section 4-2-4 of this chapter.
C. A license or permit issued may be suspended or revoked, or a civil penalty may be imposed on the license or permit holder by the city council for any of the following causes:
1. Misrepresentation of any material fact in the application for such license or permit.
2. Violation of any of the provisions of chapter 123, the alcoholic beverages control provisions of the Iowa Code.
3. Any change in the ownership or interest in the business operated under a class A, class B, or class C liquor control license, or any wine or beer permit, which change was not previously reported to and approved by the city council.
4. Any event which would have resulted in disqualification from receiving a license or permit when originally issued.
5. Any sale, hypothecation, or transfer of the license or permit.
6. The failure or refusal on the part of any licensee or permittee to render any report or remit any taxes due under chapter 123 of the Iowa Code.
D. A license or permit issued may be suspended for a period not to exceed one year for violation of any ordinance or regulation of the city of Iowa City relating to the purchase, possession, sale, supply, dispensing or giving of alcohol when such ordinance or regulation has no counterpart under state law.
E. When a liquor license or wine or beer permit is suspended after a hearing as a result of violation by the licensee, permittee, or the licensee's or permittee's agents or employees, the premises which were licensed by the license or permit shall not be relicensed for a new applicant until the suspension has terminated or time of suspension has elapsed, or ninety (90) days have elapsed since the commencement of the suspension, whichever occurs first. However, this section does not prohibit the premises from being relicensed to a new applicant before the suspension has terminated or before the time of suspension has elapsed or before ninety (90) days have elapsed from the commencement of the suspension, if the premises prior to the time of the suspension have been purchased under contract, and the vendor under that contract had exercised the person's rights under chapter 656 of the Iowa Code and sold the property to a different person who is not related to the previous licensee or permittee by marriage or within the third degree of consanguinity or affinity and if the previous licensee or permittee does not have a financial interest in the business of the new applicant.
F. A criminal conviction is not a prerequisite to a suspension, revocation, or imposition of a civil penalty pursuant to this section.
G. If the cause for suspension is a first offense violation of section 123.49, subsection 2, paragraph h of the Iowa Code or subsection 4-5-4B of this title, the city council shall impose a civil penalty in the amount of five hundred dollars ($500.00) in lieu of suspension of the license or permit.
H. The city council shall notify the alcoholic beverages division of any action taken under this section and shall notify the licensee or permit holder of the right to appeal a suspension, revocation, or imposition of a civil penalty to the alcoholic beverages division.
I. If any licensee, wine permittee, beer permittee, or employee of a licensee or permittee is convicted of selling, giving, or otherwise supplying any alcoholic beverage, wine, or beer to any person in violation of section 123.49, subsection 2, paragraph h of the Iowa Code or subsection 4-5-4B of this title, in addition to criminal penalties fixed for such violations, the city council shall assess a civil penalty as follows:
1. Upon a first conviction, the violator's liquor control license or wine permit or beer permit shall not be suspended, but rather, the violator shall be assessed a civil penalty in the amount of five hundred dollars ($500.00). Failure to pay the civil penalty will result in automatic suspension of the license or permit for a period of fourteen (14) days.
2. Upon a second conviction within a period of two (2) years, the violator's liquor control license, wine permit, or beer permit shall be suspended for a period of thirty (30) days and the violator shall also be assessed a civil penalty in the amount of one thousand five hundred dollars ($1,500.00).
3. Upon a third conviction within a period of three (3) years, the violator's liquor control license, wine permit, or beer permit shall be suspended for a period of sixty (60) days and the violator shall also be assessed a civil penalty in the amount of one thousand five hundred dollars ($1,500.00).
4. Upon a fourth conviction within a period of three (3) years, the violator's liquor control license, wine permit, or beer permit shall be revoked. (Ord. 01-3968, 6-12-2001, eff. 8-1-2001)