Call to Order
Chairperson Bob Cramer called the meeting to order at 3:15 PM with a quorum present.
Minutes of Previous Meeting (Available upon request)
Chairperson Cramer asked for discussion of the minutes of December 10, 2002. There was no discussion.
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Motion: |
Commissioner Mary Hunter moved the Minutes of July 2, 2002 stand approved as submitted. Commissioner Gayle Collins seconded the motion, and it passed by unanimous vote. |
Dram Shop Administrative Rule
Judy Seib reported that Notice of Intended Action was published in the Iowa Administrative Bulletin, as ARC 0854B, on August 8, 2001. A public hearing was held in the Boardroom of the Iowa Alcoholic Beverages Division on August 28, 2001. The Administrative Rules Review Committee requested a Regulatory Analysis of the proposed amendments, which was prepared by the Division and published in the Iowa Administrative Rules Bulletin on August 21, 2002. A second public hearing was held on September 10, 2002, to discuss the Regulatory Analysis and to take comments from affected parties.
The amendments to the Iowa Alcoholic Beverages Division's Chapter 5, "License and Permit Division," and Chapter 12, "Forms," Iowa Administrative Code, are now ready for adoption by the Commission.
Ms. Seib explained the following changes made to the amendments:
- 5.8(1) Nonsubstantive changes were made to clarify text.
- 5.8(3) Nonsubstantive changes were made to clarify text.
- 5.8(2)"c" The subrule was deleted and the remaining subrules renumbered.
- Renumbered 5.8(2)"c" The minimum amount of coverage was reduced from $50,000 to $25,000 for loss of means of support of any one person in each incident or occurrence.
- 5.8(4) Nonsubstantive changes were made to clarify text.
- 5.8(5) The subrule was deleted and the remaining subrules renumbered in response to concerns expressed by the insurance industry.
- Renumbered 5.8(5) Language was restored to allow ordinary or customary exclusions that might also be found in a commercial liability policy.
- Renumbered 5.8(10) The implementation date was changed from January 1, 2002 to September 1, 2003 to allow the insurance industry to analyze and rate the amended rule.
Although comments were received suggesting the deletion of the "assault and battery" provision found in the renumbered subrule 5.8(9), the Division determined that the provision should remain in the subrule as assault and battery claims are statutorily covered under Iowa's Dram Shop Law, Iowa Code § 123.92 (2003). Unlike property damage, for which there is typically alternative insurance coverage that can make an innocent injured third party whole, assault and battery claims are excluded from most general liability policies. Thus, if insurance companies were allowed to exclude assault and battery claims, most innocent third parties would be afforded little or no protection.
Discussion ensued. Commissioner Hunter suggested the following change to Rule 5.8(7). She suggested that the word "electronic" be added for the convenience of dram shop insurance companies and licensees in forwarding dram shop certificates to the Division.
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Motion: |
Commissioner Collins moved the Amendments be approved as presented to the Commission with the additional change to Rule 5.8(7). Commissioner Daggett seconded the motion. The motion, by unanimous vote, was passed. |
John Lundquist advised the Commission members that a rulemaking becomes final on the 35th day after it is published as Adopted and Filed in the Iowa Administrative Rules Bulletin. The amendments will be published in the Bulletin on April 2, 2003. Ms. Seib informed the Commission members that the amendments become effective on May 8, 2003.
Dram Shop Reform
Lynn Walding addressed the issue of Dram Shop Reform. He proposed that the Commission hold a series of public hearings around the state to examine various aspects of Iowa's Dram Shop law. The meetings would be held in concert with members of the Iowa Hospitality Association, the insurance industry, licensees and permittees, as well as the general public.
The commissioners agreed that public hearings are a good method of gathering input from the various interest groups and could result in useful feedback toward finding methods of reducing the cost of dram, while continuing to protect the public's health, safety and welfare. Public hearings would also provide a vehicle in moving forward with the recommendations from the White Paper. Commission members decided to discuss dram shop reform at their next scheduled meeting.
Legislative Update
Nicole Gehl reported the first funnel date has been moved to March 14, 2003, at which time all House and Senate bills must be reported out of their respective committees. Ms. Gehl gave a brief update of legislation concerning the Iowa Alcoholic Beverages Division.
- SF 150 and HF 211 - Program Elimination Commission (PEC)
Although the PEC was charged with looking at the possibility of privatizing the state's liquor wholesale operation, the Commission's final report did not include such a proposal. The current legislation related to the PEC's recommendation equally does not include such a proposal.
- SF 37 and HF 65 - .08 BAC
Both bills have passed out of their respective committees. The Senate received confirmation earlier in the week from the National Highway Traffic Safety Administration (NHTSA) that amendments to the bill were acceptable. The amendment in question removes the mandatory waiting period after an OWI for a work permit in a situation where no personal injury or property damage occurred. SF 37 also contains an amendment requiring on-premises liquor licensees to install a PBT (Preliminary Breathalizer Test) device at each location. If the Senate does drop the amendment, the bill will go to conference committee.
- HF 220 - Keg Registration
The bill (still in committee) requires keg registrations on all beer containers that are 2 gallons or more.
- HF 347 - Increased Liquor Penalties
This bill, currently in sub-committee, increases the liquor penalties for sales to minors to an automatic license revocation for a second offense.
- HSB 347 and SSB 1125 - Wine Development
HSB 347 removes language in the code indicating that funds transferred to local native wine development boards will be based on projections of collected wine gallonage tax from the revenue estimating committee. The bill replaces the current language with a requirement that funds transferred be based on actual tax collections. SSB 1125 removes the provision in the code that prohibits a liquor license within 5 miles of a winery. Both study bills remain in committee.
- SSB 1117 and HSB 170 - Tobacco Retailer Penalties
Both study bills attempted to eliminate penalties for tobacco sales to minors for the retailer by introducing an affirmative defense for training. A tentative compromise was reached with the retailers and the Iowa ABD that would loosen the penalty structure for retailers and allow only one affirmative defense for training in a four-year period. Under the bill, the Iowa ABD must establish a certified training program that retail employees must attend to qualify for the affirmative defense. It is expected that SSB 1117 will be voted out of committee on March 11th.
- HSB 174 - Cigarette Permits
This bill, still in committee, doubles the current fees for cigarette permits.
- HF 283, HF 283, HF 539, SF 144 and SF 279 - Tobacco Tax Increase
Five bills have been introduced increasing the tax on cigarettes anywhere from 25¢ to $1.00. Two of the bills do not include a proportional increase for smokeless tobacco products and include smaller increases in the tax on cigarettes. The American Cancer Society and other members of Iowa's Health Initiative (IHI) support the higher increases with a proportional increase in the tax on smokeless tobacco products.
- SF 87 and HF 410 - Smoking Ban
Bills have been introduced in both the House and the Senate that would ban smoking in all public places (including bars) except retail locations that obtain greater than 50% of their profits from tobacco products. SF 87 was introduced in February and has remained in sub-committee. HF 410 was introduced in the House this week.
Meetings
The next meeting will be held in the Iowa Alcoholic Beverages Division boardroom on April 30, 2003, at 1:30 PM.
Adjournment
The meeting adjourned at 3:45 PM.
GAYLE COLLINS, Secretary |
