January 26, 2005 Board Room Alcoholic Beverages Division
Members Present in the Chambers:	Gayle Collins Scott Doll Dick Stoffer Mary Hunter
Guests Present:	Michelle Nagle, Carney Law Firm Lyle Stutzman, Johnson Brothers Jim Clayton, University of Iowa Stepping Up Jerry Fleagle, Iowa Grocers Industry Association Janet Zwik, Department of Public Health Mary Sloan, NWI Alcoholism & Drug Treatment Eric Sage, Criminal Juvenile Justice Planning Ardis Glace, Iowa Substance Abuse Program Directors' Association Jay Hansen, Prairie Ridge Charles E. McGrigg, Wine Institute Becky Swift, Governor's Office of Drug Control Policy
Staff Present:	Lynn Walding Jim Kuhlman Judy Seib Linda Cox
Counsel Present:	John Lundquist

Call to Order

Minutes of Previous Meeting

Rule Making

John Lundquist noted no one has requested a license pursuant to the provisions of the rule that is being rescinded and no licenses have been issued pursuant to the rule. The rule making affects no one other than to appease the concerns of the constituents who challenged the rule and prevailed.

Motion:

Commissioner Stoffer moved the Rule Making be adopted as presented to the Commission. Commissioner Doll seconded the motion. The Rule Making, by unanimous vote, was approved.

Iowa Substance Abuse Programs

Iowa's Drug Control Strategy - Becky Swift, Governor's Office of Drug Control Policy

Becky Swift informed the commissioners that under Iowa Code chapter 80E, a coordinator is appointed to direct the Governor's Office of Drug Control Policy and to coordinate and monitor: all statewide narcotics enforcement efforts; state and federal substance grants and programs; statewide substance abuse prevention and education programs in communities and schools; and other related activities as required by law. The coordinator also assists in the development and implementation of local and community strategies to fight substance abuse including law enforcement and treatment activities.

The coordinator submits an annual report to the Iowa Governor and Legislature which provides an overview of the drug enforcement, substance abuse treatment programs and substance abuse and education programs. The coordinator also submits an advisory budget recommendation to the governor and legislature about the activities.

Ms. Swift informed the commissioners that chapter 80E also creates a Drug Policy Advisory Council which is comprised of representatives from the following departments: corrections, education, public health, public safety, human services and criminal and juvenile justice. Other representatives include a: prosecuting attorney, licensed substance abuse treatment specialist, certified substance abuse prevention specialist, substance abuse treatment program director, justice of the Iowa Supreme Court and representatives for the associations of Chiefs of Police and Peace Officers, Police and Sheriffs and Deputies. Members of the council provide input to assist the Governor's Office of Drug Control Policy (GODCP) in determining what actions are necessary to reduce access to illegal substances. The council also makes policy recommendations to the various members from state agencies with regard to the administration, development and coordination of programs related to substance abuse education, prevention, treatment and enforcement.

The strategy of GODCP is focused on four goals: prevention, treatment, law enforcement and corrections. The strategy is specifically dedicated to goals and objectives, desired outcomes and what actions are necessary to reach the desired outcomes.

Another function of the GODCP strategy is the substance use profile. The profile tracks trends in usage, arrests, corrections and treatment. Alcohol and tobacco use is tracked, as well as, other drugs including marijuana, crank, cocaine, methamphetamines and heroin. The information is used to follow trends regarding substance abuse treatment admissions, arrests, convictions and possession. According to Ms. Swift, the information contained in the profile is used to write grant proposals.

The council also collects information about the programs and grants managed by the GODCP. The GODCP collects information from agencies about funding sources (federal or state), how monies are expended and how funding streams are divided. The GODCP has no control over how the agencies expend their funding; however, the GODCP trusts that the agencies observe the strategy and listen to other agencies as they discuss the issues of most concern.

Ms. Swift pointed out that there is an overall reduction in substance abuse funding and stated that as long as she has served in the field of substance abuse, there has never been enough funding. She emphasized treatment as the current critical issue.

Commissioner Collins asked Ms. Swift what the GODCP was doing to obtain more funding. Ms. Swift replied that the GODCP seeks funding only for the GODCP. If the GODCP finds monies that would be beneficial to a member agency, the GODCP contacts the agency to make them aware of the funding. For the most part, each agency finds its own funding sources. Most agencies are tapped into resources where information that applies to the agency needs and capabilities is available.

Lynn Walding asked if the problem of substance abuse is decreasing. Ms. Swift responded that the problem was not decreasing - just the funding streams. The reduced funding is a reflection of the economic times. Funding for law enforcement programs was reorganized at the federal level this year; and Iowa, as a smaller rural state, is seeing significant cuts in enforcement funding. The lack of funding doesn't necessarily have anything to do with the problem; it is the perception of the problem by people who live outside the state. Iowa occasionally suffers funding cuts that larger metropolitan states don't see because funding is based on a per capita basis.

State-Level Substance Abuse Programs - Janet Zwik, Iowa Department of Public Health

The federal government recognizes the Iowa Department of Public Health (IDPH) as a Single State Authority (SSA) for substance abuse treatment and prevention in the state of Iowa. As the SSA, the Department of Public Health is the recipient of the Substance Abuse Mental Health Services Administration (SAMSA) block grant.

Funding for prevention programs is scarce. It is difficult to sell prevention programs because the outcomes are long range and not much data is available. During the past few years, the IDPH has changed prevention programs to best practices programs with data collection about both pre- and post-outcome program information. The change will help to demonstrate both long- and short-term outcomes.

There are six major categories of prevention funding:

1. Comprehension Prevention Grants are funded through a SAMSA block grant, state appropriations and/or tobacco appropriations. The grants covered all 99 counties; however, due to limited funding, some programs span 7 or 8 counties. In 2004, 23 prevention programs were funded in the State.
2. Drug and Violence Grants target early intervention services particularly concerning the relationship between drugs and violence. There are 14 projects on a state-wide basis funded through a U.S. Department of Education grant.
3. Mentoring and Prevention Grants provide funding for programs which assist in the reduction of substance abuse by working with schools to reduce truancy. During 2004, nine such grants were funded in the State.
4. Community Coalition Grants are funded from the Sunday sales revenues collected by the Division. A $2,000 seed grant is available to assist local community coalitions to develop youth empowerment and to encourage the youth to work on environmental issues.
5. County Funding is derived from the Sunday Sales revenues collected by the Division. Iowa law provides that half of the Sunday sales monies be returned to counties. In 2004, sixty-three Iowa counties were funded from this revenue stream. Two grants of $10,000 each were awarded for county substance abuse prevention activities. The grants cannot be used for treatment and counties must match that amount on a 1:3 ratio.

   Mr. Walding commented that approximately 98% of licensees pay an additional 20% of the base license fee for the Sunday sale privilege. In an effort to make the licensing process easier, Mr. Walding advised that he is considering making all licenses Sunday through Saturday. He anticipates that the Sunday sales permit monies earmarked for substance abuse treatment and prevention would continue to be earmarked for that purpose.

6. State Incentive Grants are grant funded through SAMSA. The 3-year program is now in its final year. Funds expended through the State Incentive Grants provide monies to work with youth in the reduction of alcohol, tobacco and marijuana use.
7. Other Grants:
   1. Prevention of Methamphetamine Abuse Grants are funded through SAMSA. The grant monies are earmarked for five Iowa programs.
   2. Treatment Programs are administered through a contract with the Magellan Behavioral Care of Iowa (MBCI). Funding for the programs comes from the tobacco settlement, a block grant and state appropriations. There are 34 programs funded under substance abuse treatment.
   3. Center for Substance Abuse Grant is funded by IDPH specifically for methamphetamine treatment in Polk County. The results for methamphetamine recovery are very good.
   4. Jail Based Assessment and Treatment is funded by monies earmarked by IDPH in Polk, Scott and Woodbury counties for methamphetamine; however, the majority of users also use alcohol as a secondary drug. The program is in its second year and outcomes are being assessed to determine what can be done to improve the program.

The IDPH has contracts with the Consortium at the University of Iowa to evaluate clients and to do outcome studies six months after the client has completed treatment. Studies show: employment status six months after treatment is significantly increased; number of arrests are decreased by 88.7%; more than one-half of the clients report no substance abuse within six months after treatment; and after treatment, 14.3% of the clients go from no income to some level of income.

Ms. Zwik pointed out that the number of clients served from 1992 to 2004 significantly increased; however, funding has not kept pace with the increased number of people seeking help. There are significant waiting lists throughout the state. Clients are often moved out of treatment sooner than they should be so that additional patients can receive treatment as quickly as possible.

Ms. Zwik stated that alcohol, marijuana and methamphetamine are the primary problems in the state with alcohol topping the list since 1992. Alcohol abuse is the number one entrant into treatment with approximately 60% of the people indicating that alcohol is their primary drug of choice. Because the primary problem continues to be alcohol, emphasis on the treatment and prevention of alcohol abuse must continue.

Alcohol consumption has continued to increase and per capita usage in gallons has risen each year. Alcohol is a very significant issue and is of extreme concern for young people. Alcohol and tobacco are young people's introduction to illicit substances. Statistics show that long-term alcohol abusers cost more in tax dollars for medical issues and accidents than methamphetamine users. Although methamphetamine use is a very small part of substance abuse problems, it takes a huge amount of resources because of the public safety risk. Methamphetamine patients usually have a longer length of stay with a higher cost of treatment than patients with other addictions.

Ms. Zwik explained total funding for the IDPH was $28 million in 2002; $29 million in 2003 and $32 million in 2004; however, state funding declined during fiscal years 2002 through 2004. If IDPH cannot justify the reason for losing state appropriations, IDPH can lose SAMSA Block Grant money. Federal guidelines have a specific formula for granting waivers with the justification based on economic conditions and loss of jobs. IDPH was granted a waiver last year saving approximately $400,000 in grant money.

Of the money that the Iowa Alcoholic Beverages Division transferred to the General Fund for substance abuse treatment, IDPH received $8.3 million in 1998, $8.4 million in 1999 and $1.2 million in 2004. In 2004, money was also appropriated from tobacco and gambling revenue. Ms. Zwik cautioned that when looking at the figures it appears that the IDPH got an increase in funding; however, the increase was due to the award of federal grants. Most federal grants are awarded through a competitive bidding process and that money can go away at any time.

Mr. Walding stated that the sale of alcohol has risen significantly and it is expected that sales will probably hit $140,000,000 this fiscal year. Mr. Walding pointed out that last year the ABD transferred nearly $59 million to the General Fund of which $9.3 million was available for the legislature to appropriate for substance abuse treatment. Although he doesn't know whether the amount transferred to the General Fund will be increased this fiscal year; Mr. Walding does expect that the division will at least match last year's figures. Mr. Walding expressed his belief that ethically some of the money generated from the taxes of wine, spirits and beer should be used to deal with the problems associated with the 10% consumed in abusive situations.

Local Treatment Efforts - Jay Hansen, Prairie Ridge

Mr. Hansen thanked the Commission for taking an interest in substance abuse treatment and prevention issues. He commented the Alcoholic Beverages Division has under its purview two of the most important preventive factors available - cost and accessibility to products.

According to Mr. Hansen, scientists have documented that substance abuse prevention and treatment is a good economic deal for the state. A study conducted a few years ago revealed that for every $1.00 spent by the State on substance abuse prevention and treatment, the state saved $4.00 in related costs such as corrections, medical care, etc.

Substance abuse issues are clouded by a stigma that affects public policy and how people think about helping this group. Mr. Hansen stated that the public views substance abuse as a moral issue and a matter of will power; however substance abuse is a brain disease. There is a change in the way the brain works in people who chronically use the substances. According to Mr. Hansen, the state of Iowa chooses to discriminate against clients with mental health problems and substance abuse problems because the state doesn't believe these clients deserve to be included in health plans. This stigma also affects programs because it leads to lower funding and workforce issues.

Funding

The federal substance abuse block grant is about one-half of the public funding. The state appropriates funds in a variety of ways through Magellan Behavioral Care of Iowa (MBCI). Each time there is a break in the contract, the money is contracted to community programs on a competitive basis. One provider in each area serves all the people in that area under a sliding fee scale based on yearly published federal government guidelines. The sliding scale for this year is 200% or below the national poverty level. If a person is at the low end of the scale, the person pays little or nothing for treatment. Alternatively, if the person is at the high end or over, the person pays for nearly all the treatment.

In determining the financing structure, MCBI uses "capitation." For example Prairie Ridge has a capitated number of 1,100 clients, meaning that Prairie Ridge is required to serve 1,100 clients in the population of 200% or below poverty in either residential or out-patient treatment. Currently, MCBI pays about $500 for any assessment done.

Prairie Ridge is paid a little over $2,000 for a residential stay whether the individual stays one day or six weeks. The average length of stay paid for is about 15 - 19 days. Medicaid pays a little over $100 per day and typically authorizes up to 3 weeks of treatment. Clients who do not qualify for the sliding fee scale are responsible for payment of their own treatment. Insurance companies that do cover treatment typically pay about 50% with high co-pays.

When a treatment facility reaches the capitation number and no alternative resources are available, the facility has only two choices: 1) treat new patients free of charge, or 2) place the client on a waiting list and turn the client away until funding is available. According to federal government reports, only about 20% of people who need substance abuse treatment have access to treatment.

According to Mr. Hansen, Prairie Ridge is one of 10 programs in the nation involved with a Robert Wood Johnson process improvement program. The program goals identified are: 1) increased admissions; 2) reduced wait times for assessments; 3) increased continuation; and 4) reduced wait times between assessment and treatment.

Indicators

One of the problems with the state contract, according to Mr. Hansen, is the lack of money for salary increases. The average starting salary for an entry level counselor I is $23,000; a counselor II is considered to be a veteran and earns an average of $26,000 per year; and an advanced senior counselor earns $32,000. Only about 40% of the programs offer any retirement benefits to their staff. During Mr. Hansen's 30 year tenure, only one staff member has retired from Prairie Ridge. Employees leave for other job opportunities with better pay before reaching retirement age.

Treatment

About 10% of the people who use substances will develop problems with those substances. It is marginally affected by socio-economic issues. When asked if young consumers in college towns represent a large part of the problem, Mr. Hansen replied that he does not see a larger representation from college towns than from the general population.

Mr. Hansen reported that a person with an alcohol problem seeking treatment at Prairie Ridge receives a multi-dimensional assessment and undergoes substance abuse screening among other tests. Following the assessment, the results are applied to the ASEM criteria to determine the level of care needed. If the client meets the criteria for abuse or dependence, the client may begin an evening outpatient program driven by the outplacement criteria. Outpatient treatment typically involves going to the treatment center three nights a week for approximately six weeks. Individual treatment varies because the treatment revolves around evidence-based practices and different types of substance abuse treatments.

Mr. Hansen cautioned that it is dangerous to characterize the overall substance abuse problem as being methamphetamine. The use of methamphetamine creates huge problems for the state in cost and human suffering; however, it is important to note that substance abuse is as much or more about alcohol. He reinforced Ms. Zwik's statement that alcohol is the number one entrant into treatment. Although an individual may be admitted to treatment for a specific substance abuse problem, most people use multiple substances.

Jim Kuhlman asked if the group saw a difference between the forced client who is ordered to treatment by the court, versus the client who voluntarily seeks treatment. Mr. Hansen responded he does not see a difference because almost all clients feel forced in one way or another; however, only about 10% of OWI clients are referred on for further treatment.

Lobbying Efforts

During this legislative session, the lobbyist for substance abuse treatment and prevention is lobbying for an additional $5 million appropriation, the same amount the Attorney General's Office is requesting in their bill. Mr. Hansen stated there might be a 50% chance of receiving the additional money this year.

When asked by Commissioner Doll what the group would like from the Commission, Mr. Hansen responded advocacy. It would be helpful to have a statement from the Commission that the commissioners believe 1) there is a need for more revenue; 2) that prevention and treatment really do work; and 3) prevention and treatment help issues in child welfare.

Mr. Walding commented that while speaking at a beer wholesalers meeting earlier in the day, he challenged the beer and wine wholesalers to recognize the costs associated with the product they sell. When Mr. Walding asked if Mr. Hansen saw any support from the wholesalers, Mr. Hansen responded that typically the beer and wine wholesalers are afraid that the substance abuse groups are after higher taxes. Mr. Hanson pointed out that substance abuse prevention and treatment groups are not against responsible drinking. He would like to forge a partnership with the beer and wine wholesalers.

Commissioner Doll asked if there was a way to receive some of the monies confiscated by enforcement agencies for illicit drugs. Mr. Hansen responded that although the agencies can legally share the monies with substance abuse programs, enforcement agencies usually keep the monies to assist with their own budget problems. Mr. Hansen does not expect that the agencies will ever share confiscated monies.

Mary Sloan, NWI Alcoholism & Drug Treatment

Ms. Sloan relayed that people talk about substance abuse problems as economic, social, poverty and religious issues. As long as people continue to think of substance abuse problems in those terms, the problems will never be addressed for what they are - a health issue.

Research shows that people have different levels of biological risks called a trigger level. When an individual's body is interacting with alcohol and reaches a certain trigger level, the individual will have a health problem called alcoholism. The health problem may manifest itself in a number of health issues such as cirrhosis of the liver, pancreatitis, heart disease and other health issues. Ms. Sloan pointed out that although research shows that biology plays the biggest role, a person is not predestined to have alcoholism. Biology interacts impartially with how much and how often a person uses alcohol and the person's control over frequency and quantity.

Ms. Sloan pointed out people respond differently to alcohol based on biology and volume frequency - not on beliefs, weight or economic level. As a person continues to drink, tolerance can increase, so the person drinks more and continues to think that he/she is not impaired.

Ms. Sloan gave the following risk assessments:

• A low risk choice for someone who has no signs of increased biological risk is 0 - 3 drinks less than daily.
• Someone who has strong signs needs to go down to 0-2 drinks less than daily;
• Someone with strong signs should never have more than 1 per day.

Phases of Alcohol Use

• Phase 1 (low risk). A person can stay at phase 1 using low risk choices for a lifetime.
• Phase 2 (high risk). A person may begin drinking in social settings and when the person cannot party without drinking, it becomes an issue.
• Phase 3 (high risk). A person uses above his/her lowest guidelines and experiences consequences such as getting an OWI. The person teeters close to his/her trigger level and develops lifestyle-related health problems that will continue for the rest of the person's life. Although a person in stage 3 may receive treatment; the person still thinks that he/she can drink.
• Phase 4 (treatment). The individual with the problem sees alcohol as saving his/her life while his/her loved ones see alcohol as killing the individual. Part of the treatment is breaking it down for the person to be able to see that there is a health problem.

Ms. Sloan explained there are three audiences: prevention, intervention, and recovery. The recovery audience involves a person who has signs and symptoms. Something has happened and the individual needs some intensive prevention. Intensive prevention is called treatment.

Prevention encompasses education and policy. Ms. Sloan works with the general public, law enforcement agencies, social workers, ministers, teachers and others. She would like to see more policies such as student's assistance teams at school, a zero tolerance law and a keg registration law.

The substance abuse treatment programs need more funding to provide education and prevention. Insurance companies don't pay for prevention. The State of Iowa provides some funding for prevention and recovery; however, there is no funding for intervention.

According to statistics provided by the Center for Science and Public Interest, the per capita alcohol health care cost for every Iowan is $149.14. The disparity in terms of the 19¢ beer tax collection revenues is $4.17 per person which is a 1:35 ratio. Mr. Walding pointed out that the annual alcohol revenue for beer at 19¢ a gallon is approximately $14.2 million.

Becky Swift added there are many differences between prevention and treatment; however, one of the most staggering differences is that treatment is specific to a population that is experiencing problems as a result of their drinking. Prevention, in its broadest spectrum, is everybody. While treatment deals with a much narrower audience, prevention deals with similar factors.

The salary rates for new prevention specialist are extremely low. Most do not make a living wage and many are forced to work second and even third jobs to make ends meet. The low salaries and inadequate funding for programs, result in an extremely high employee turn-over leaving a shortage of skilled prevention specialists.

To illustrate the problem with funding, Ms. Sloan stated that for the past 6 years, her agency has done comprehensive prevention for 10 counties with only 8 employees on a budget of $157,000 per year. The contract for services for the next five years will decrease by $4,000 to serve the same amount of counties with the same amount of service expected.

Commissioner Stoffer asked about the DARE and Rock In Prevention programs. Ms. Sloan responded that DARE is mostly targeted at 5th or 6th graders. She stated that DARE works when kids want to say no but when they want to say yes, they need new information, such as the behavioral risk factors. According to Ms. Sloan, Rock In Prevention is a one-shot program with good supplemental materials but no follow-up. She added that the Rock In Prevention program could be a complement to what other agencies are doing in the area of prevention.

Ms. Swift added that research reveals that the DARE program doesn't work because it is not a sustained effort. The concepts are difficult to teach in a culture where alcohol is a socially accepted legal product.

Ms. Sloan stated that parents dramatically under-estimate teen binge drinking and their child's drinking in particular. Research shows that 3% of parents think their teens participated in binge drinking during the past month; however, the actual number of teens who binged during that time was 33%.

Ms. Swift also pointed out that prevention is not only for young people, it is also for pregnant women, parents and the elderly. Prevention doesn't deal with just alcohol, tobacco and illegal drugs; it also deals with over-the-counter medications and prescriptions. Iowa's elder population is using the most medication per capita of anybody in the United States; yet many are not educated about those medicines and the combination thereof.

Prevention is a daunting task with a limited amount of money and time available. Prevention specialists have to be selective about what they can do. According to Ms. Swift, one of the biggest frustrations for those in the prevention field is the huge population of people who would benefit if funding and resources were available. Prevention specialists do not feel validated as professionals in a profession where their salaries, benefits and health care, as well as their programs, are inadequately funded.

Ms. Glace, on behalf of the Association, thanked the Commission for the opportunity to speak before the group. She commented many states do not have alcoholic beverage commissions who are willing to look at the issue of substance abuse treatment. She also thanked Lynn Walding for his support of their efforts. Ms. Glace offered to arrange a tour of a treatment facility so commissioners could see what treatment specialist can do with available resources. She also offered to set up quorums in the communities for commissioners to talk with program members.

Commissioner Collins commented that some legislators have told her this might be the year where something could be done regarding the issue. She asked that a letter be drawn up and sent to every legislator stating that the Commission supports the association and their need for more funding. Mr. Walding suggested the Commission take a vote at a future meeting to go on record that the Alcoholic Beverages Commission is taking a viewpoint on this issue and is supportive of the Association's efforts.

Ms. Swift stated that although law enforcement agencies were not represented at this meeting, they too are experiencing cuts in their programs and are making sacrifices that could impact the issue. Due to federal cuts for drug task forces and specialized programming, officers are being pulled from alcohol-related issues like drunk driving to deal with other issues such as methamphetamine. Ms. Swift has spoken with many methamphetamine users who said getting picked up was the catalyst for getting them into treatment.

Commissioner Stoffer stated he thought the Commission should do something - whether it is in the form of encouragement or a recommendation of allocation of funds.

Commissioner Doll suggested that ABD staff talk to the Association's lobbyist to see if there is a specific area where the Commission could be helpful.. He asked the Association to draft language for the Commission to review and proceed from there.

Mr. Walding suggested that the draft language say something to the effect that the state is in the business of public control and that the state is raising additional revenues. The legislature needs to recognize that with additional revenues come additional problems and those problems need to be addressed. Mr. Walding asked Ardis Glace to contact him or Nicole Gehl with the draft language detailing the Association's specific needs within the next week. Mr. Walding will email the draft language to the Commission for their review and changes. A teleconference could then be held to vote on whether to go forward with the issue. Mr. Walding stated that the $5 million increase the Association is requesting from the legislature appears to be a reasonable amount.

Retailer Concerns

Retailer Leona Westphal, who was scheduled to address the commissioners, was unable to attend. Mr. Walding reported Ms. Westphal's issue concerns compliance checks and issues concerning the Iowa driver's license. Ms. Westphal is concerned that people who are color blind or have glaucoma cannot read the white printing in the red bar on the drivers' license where it says underage. Ms. Westphal contacted Senator Harkin's office regarding an ADA complaint with regard to the drivers' license issue.

The Division played an important role in the effort to change the law a few years ago when the license for an underage person became a vertical license rather than a horizontal license. The license was also changed at that time to have a red bar with white lettering that says "under 21 until" and states the date. The birth date is also printed elsewhere on the license. Mr. Walding said that he will look at the issue to determine if someone who is color blind or who has glaucoma can read the inscription.

When Commissioner Doll asked if the issue should be addressed by the Department of Transportation, Mr. Walding responded that the Alcoholic Beverages Division made the recommendation and worked with the DOT to change and enhance the license. He pointed out that in addition to the red bar with the white lettering stating the age, the license is tipped which should provide a clue to the retailer that the individual is probably underage. According to Mr. Walding, in approximately 65% of the cases where a tobacco sale is made to a minor, the clerk looked at the driver's license and still made the sale.

Iowa City Tips Initiative

Lynn Walding told the Commission that he plans to attend the Alcohol Bar Committee (ABC) meeting in Iowa City on February 3rd and announce that the state has approximately $11,500 to use for a server training program. The division has received a $10,000 grant from Anheuser-Busch and a $1,500 grant from the National Alcohol Beverage Control Association (NABCA) to provide the training. Similar training was done in 2003 with over 600 employees trained in a two week period. To his knowledge, no one who was trained at that time has been ticketed for a violation.

Each year the division collects over $180,000 in civil penalties that are transferred into the General Fund. Prior to 1995, the division was allowed to keep the monies for ongoing educational programs. Mr. Walding would like to see a legislative change returning these funds to the Division to offer educational programs with a positive incentive to participants. Sioux City, Council Bluffs, Ames, Iowa City and Dubuque, as well as, Dickinson County have requested training. Mr. Walding hopes that the Iowa Wholesale Beer Distributors Association will support this effort as well.

Commissioner Doll stated that he has had preliminary talks with Anheuser-Busch, Miller and Coors personnel and they are willing to provide funding for TIPS programs. The Iowa Wholesale Beer Distributors Association is also willing to participate. As the division expands into different cities, the beer distributors and wholesalers need to be advised of the division's needs so they can reciprocate.

Mr. Walding commented the industry was very good about participating in Iowa City in 2003. Jim Clayton stated that the Iowa City community would like to see industry support intensified. He added that Anheuser-Busch has asked a speaker to come to Iowa City in February to speak at the IMU on drunk driving. These initiatives are part of the effort to avoid the 21-year-old restriction currently being discussed by the City Council.

According to Mr. Clayton, the Alcohol Bar Committee (ABC), which is comprised of bar owners and a couple of community members who meet to reduce underage drinking and access to alcohol by underage people in licensed establishments, will take credit for the beer wholesalers support; however, Mr. Clayton wants everyone to know that it is the distributors and wholesalers who are taking the initiative. Mr. Clayton commented that the ABC's agenda is more public relations than actual behavior modification.

NAAG Meeting

Mr. Walding recently attended the National Association of Attorney Generals (NAAG) in Chicago. Mr. Walding pointed out that of the 25,000 students at the University of Iowa, 62% are under age 21. The numbers are significant in relation to the issues discussed at the NAAG. Iowa Attorney General Tom Miller is on a committee called Youth Access to Alcohol. Maine Attorney General Stowe is the chairman and other control states who participated in the meeting are West Virginia and Utah. Speakers addressed 3 topics: 1) whether advertising affects the decision to consume by underage individuals; 2) high risk drinking on college campuses; and 3) timing - how quickly they can turn around a response.

After studying 21 cities, Dr. Snyder from the University of Connecticut concluded that there is a causal connection that advertising does impact the decision to consume by underage individuals. That created quite a reaction by the industry.

Dr. Peter Cressy from the Distilled Spirits Council of the United States and Jeff Becker from the Beer Institute stated that a lot of people will look closely at this issue. Mr. Walding will watch to see if the Attorney's General Offices work together through the NAAG group or if they will work on the issue individually. Some are ready to litigate due to the causal connection while others may be looking for alternatives such as legislation dealing with education or enforcement or other solutions.

The second part of the NAAG meeting dealt with high-risk drinking on college campuses. Mr. Walding shared a copy of the Commission's white paper with them. Their spokesperson, Dr. Sloan, stated there are several strategies to approach binge drinking. When specifically asked what the Attorney Generals can do, Dr. Sloan mentioned dealing with all-you-can-drink promotions in the college communities, excise tax increases, better enforcement and educational programs. According to Dr. Sloan, the strategy has to be multi-faceted.

Mr. Walding's message to the beer wholesalers earlier in the day was that they need to be aware that supplier advertising practices are being closely scrutinized. Mr. Walding stated that he solicited the beer wholesalers' support for a statewide ban on all-you-can-drink promotions. He commented that the practice does not appear to be as prevalent in the Des Moines market as it once was. Mr. Clayton stated that Iowa City bar owners are doing really low cost types of consumption advertising such as posters in windows proclaiming 25 pitchers for $25. According to Mr. Clayton, the newest technique is to send instant messages to cell phones.

Mr. Clayton doesn't see bars advertising the $10 cover charge and all-you-can-drink-free specials anymore; however, students report there are party rooms in the bigger bars where the individual pays to enter the party room. There are no cash registers in the party room and individuals drink all they can to get their money's worth for the price of admission to the party room.

In response to Commissioner Doll's query, Mr. Clayton said that ads are primarily for beer and alco-pops although he has noticed specials advertising Captain and Coke for a quarter. To illustrate that the price wars have not changed, Mr. Clayton brought ads from Wednesday's Daily Iowan demonstrating that specials continue to be offered. In addition he left copies of advertising that major producers of alcohol, specifically breweries and some distillers, market to children.

The breweries and the distilleries produce the advertising and create the demand according to Jim Clayton. Although the beer distributors don't advertise, they do provide signage. Distilleries and breweries market in media where the population of young audience is under age 21. If the media only reached 15% of those people, they would be in balance; however, they pick media that reaches one-half of the underage people in the country.

Mr. Walding reported these issues were raised at the NAAG meeting. David Jernigan from the Center on Alcohol Marketing Youth (CAMY) stated CAMY has no problem with the advertising content - it is the access. If the media reaches a demographic of more than 15% of the age group 12 - 21, the media is targeting that group. As an example, Super Bowl advertising is a demographic that is 15% in that age group so Anheuser-Busch was not a targeted youth ad under the Jernigan rule of advertising. Although CAMY would like it to be at 85%, the spirits industry - beer, wine and liquor - has 70% as their new target. CAMY is also wants an independent review board.

CAMY is funded by a Robert Wood Johnson grant to monitor advertising and to provide reports on what is happening in the advertising field. CAMY will no longer be funded as of the end of this year.

David Jernigan and Jim O'Hare were part of the tobacco effort a few years ago so they are using many of the tobacco strategies in dealing with alcohol issues. It is not insignificant that the NAAG group did the tobacco litigation a few years ago.

Announcement

Commissioner Collins announced that she did not reapply for appointment to the Commission. Although her plans are not definite, she may not be living in Iowa after June.

Upcoming Meetings

The date for the next commission meeting will be set at a later time.

Adjournment