When Administrative Action is Necessary
Although the Iowa Alcoholic Beverages Division’s goal is to accomplish
voluntary compliance with alcoholic beverages laws and rules, occasionally,
an administrative sanction is necessary. Following is an overview
of the Division’s administrative hearings process.
The Investigating Officer's Role
Administrative penalties often receive greater attention than simple
misdemeanor fines imposed by the courts, so an investigating or arresting
officer many times provides information that precipitates the administrative
hearing process.
Law enforcement officials, along with fire and health officials report
violations of alcoholic beverages and related laws by forwarding investigation
reports to the Iowa Alcoholic Beverages Division. The reports are
then forwarded to the Iowa Department of Justice for further action.
Administrative Hearing Complaint
An assistant Attorney General reviews investigation reports, and when
appropriate, contested case hearings are initiated through an administrative
hearing complaint.Administrative hearing complaints also may be filed
with the Division by county and city attorneys.
Administrative hearing complaints must be filed within one year of
the alleged violation, or within one year from the date of conviction,
whichever is later.
Evidentiary Contested Case Hearing
When an administrative hearing complaint is filed against a licensee,
a contested case hearing is held in the Division’s central offices,
located in Ankeny, Iowa. Contested case matters are heard by an administrative
law judge from the Iowa Department of Inspections and Appeals.
Licensees may represent themselves or hire an attorney at their own
expense. The licensee or the licensee’s attorney may call witnesses,
make arguments and introduce evidence. The contested case hearing
is generally the only time that evidence may be submitted. Hearings
are open to the public and are tape-recorded.
Proposed Decisions
Following the contested case hearing, the administrative law judge
will issue a proposed decision. The proposed decision will be in writing
and forwarded to all interested parties by mail. The proposed decision
may impose any of the following actions:
- Impose a civil penalty of up to $1,000 per violation
- Suspend the license from one to 365 days
- Revoke the license
- Dismiss all or part of the allegations cited in the administrative
hearing complaint
The proposed decision becomes a final decision unless a request for
review is filed with the Division administrator.
Request for Review
A party who objects to the proposed decision may request that the
Division administrator review the decision. The prosecuting attorney
(assistant Attorney General, county or city attorney) also may request
review of the proposed decision. The request for review must be in
writing and filed with the Division within 21 days from receipt of
the proposed decision.
In the event a request for review is filed, the Division administrator
may ask the licensee and the prosecuting attorney to file briefs and
exceptions on issues raised in the contested case hearing.
Final Decision
The Division administrator reviews the proposed decision on the record
made at the contested case hearing and on the briefs and exceptions
filed by the licensee and the prosecuting attorney (assistant Attorney
General, county or city attorney). When review of the record is complete,
the Division administrator issues a final decision. The final decision
will be in writing and forwarded to interested parties by mail. The
final decision may affirm, reverse, or modify the proposed decision.
The Division administrator’s decision is the agency’s final
action. The next step in the appeal process is district court.
Petition for Judicial Review
Licensees who object to the Division administrator’s final decision
may file a petition for judicial review with the district court. The
prosecuting attorney (assistant Attorney General, county or city attorney)
also may file a petition for judicial review. The petition may be
filed either in Polk county or in the licensee’s county of residence
or business. Filing the petition does not automatically stay enforcement
of agency action (imposition of civil penalty, license suspension
or revocation). The licensee must obtain an order from the district
court to stay agency action pending outcome of the judicial proceedings.
Acknowledgments and Settlement Agreements
Rather than contesting allegations in an administrative hearing complaint,
licensees may sign an acknowledgment of waiving their right of hearing
and appearance of witnesses. If the licensee signs an acknowledgment,
the hearing will be cancelled and the Division administrator will
impose an administrative sanction appropriate to the violation. The
administrative sanction imposed may include a civil penalty, license
suspension, or revocation.
Licensees also may negotiate a settlement agreement with the prosecuting
attorney (assistant Attorney General, county or city attorney) for
approval by the Division. If the Division approves the settlement
agreement, the administrative hearing will be cancelled.
Iowa Code sections 17.A.20, 123.32 and 123.39, and 185 Iowa Administrative
Code
APPEAL HEARINGS
Local Authority Actions
City councils and county boards of supervisors may impose administrative
sanctions against an alcoholic beverages license in the form of
civil penalties, license suspension or revocation for violations
of Iowa’s alcoholic beverages laws. City councils and county
boards of supervisors may also approve or disapprove alcoholic beverages
license applications for establishments located within their jurisdiction.
Appeal of Local Authority Actions
When a local authority imposes an administrative sanction or disapproves
a license application, the licensee may appeal the local authority
action to the Division. The appeal must be in writing and filed
with the Division within 21 days from the date the licensee is notified
of the local authority’s action.
Evidentiary Appeal Hearing
If a licensee files an appeal of a local authority action, an appeal
hearing is held in the Division’s central offices, located
in Ankeny, Iowa. An administrative law judge from the Iowa Department
of Inspections and Appeals hears appeal hearings.
The appeal hearing provides licensees with an opportunity to demonstrate
that they comply with all the lawful requirements for holding an
alcoholic beverages license. Licensees may represent themselves
or hire an attorney at their own expense. The parties may call witnesses,
make arguments and introduce evidence. Hearings are open to the
public and are tape-recorded.
Proposed Decision
Following the appeal hearing, the administrative law judge will
issue a proposed decision. The proposed decision will be in writing
and forwarded to all interested parties by mail. The proposed decision
may apply to the following:
Administrative Sanctions
The proposed decision may affirm, reverse, or dismiss the civil
penalty or suspension or revocation imposed by the local authority.
Disapproved License Applications
The proposed decision may affirm or reverse the local authority’s
disapproval of the alcoholic beverages license application.
The proposed decision becomes a final decision unless a request for
review is filed with the Division administrator.
Request for Review
A licensee who objects to the proposed decision may request the
Division administrator to review the decision. The local authority
may also request review of the proposed decision. The request for
review must be in writing and filed with the Division within 21
days from the party’s receipt of the proposed decision.
If a request for review is filed, the Division administrator may
ask the licensee and the local authority to file briefs and exceptions
on issues raised in the appeal hearing.
Final Decision
The Division administrator reviews the proposed decision on the
record made at the appeal hearing and on the briefs and exceptions
filed by the licensee and the local authority. When review of the
record is complete, the Division administrator issues a final decision.
The final decision will be in writing and will be forwarded to the
licensee and all interested parties by mail. The final decision
may in include the following:
Administrative Sanctions
The final decision may affirm, reverse or modify the proposed decision.
The Division administrator may also dismiss the matter.
If the appeal hearing concerns an administrative sanction the civil
penalty, license suspension or revocation will be stayed pending a
final decision.
Disapproved License Applications
The final decision may affirm or reverse the local authority’s
disapproval of the license application.
If the appeal hearing concerns a disapproved renewal application,
the licensee will be allowed to remain open for alcoholic beverages
business pending a final decision. When hearings concern a disapproved
new license application, the applicant will not be allowed to conduct
any alcoholic beverages business pending a final decision.
The Division administrator’s final decision is final agency action.
The next step in the appeal process is to district court.
Petition for Judicial Review
A licensee who objects to the Division administrator’s final
decision may file a petition for judicial review with the district
court. The local authority may also file a petition for judicial review.
The petition may be filed either in Polk county or in the licensee’s
county of residence or business. Filing the petition does not automatically
stay enforcement of agency action.
Administrative Sanctions
A stay will postpone a civil penalty or license suspension or revocation
served, pending the outcome of judicial proceedings.
Disapproved Renewal License Applications
A stay will allow the licensee to remain open for alcoholic beverages
business pending the outcome of the judicial proceedings.
Applicants with disapproved initial license applications may not conduct any alcoholic
beverages business unless the court reverses the Division administrator’s
final decision and orders the license issued.
Iowa Code sections 17.10 through 17A.20, 123.32, and 185 Iowa Administrative
Code |
