Chapter 120 – Liquor Licenses And Wine And Beer Permits

that authorizes consumption of alcoholic beverages on the premises may allow a person who is not yet 21 years old to remain at the premises. However, the provisions of this subsection do not apply when: A. The person under 21 years of age is an employee of the license or permit holder, or performing a contracted service for the license or permit holder on the premises, and is on the premises during his or her scheduled work hours. B. The licensee or permittee applies for and qualifies for an exception certificate from the Mayor as follows: (1) A licensee or permittee whose primary business purpose is not the sale of alcoholic beverages, wine, or beer may qualify for an exception. The licensee or permittee must file with the Clerk a verified statement from a certified public accountant or an accountant which establishes that on average over a calendar year more than 50% of the licensee’s or permittee’s gross sales on the premises are from the sale of goods or services other than alcoholic beverages, wine, or beer. Those sales must not include income from fees charged to gain entry to or remain on the premises, such as cover charges, drink mixes, or any part of an alcoholic beverage as defined in Chapter 123 of the Code of Iowa. The statement must state the actual percentage of the sales and be based on records made in the regular course of the licensee’s or permittee’s business. (2) In addition to the aforementioned statement, proof of qualification for the exception may include the business records on which the statement is based, such as State and Federal tax records, applications for dram shop insurance, audits performed to determine dram shop insurance premiums, and receipts from vendors for goods purchased. The records must be provided to the Mayor for review upon request. (3) The Mayor will issue an exception certificate if the licensee has satisfied the above requirements. (4) An exception certificate will be effective for the duration of the alcoholic liquor control license or wine or beer permit. (5) A new licensee or permittee who has not previously applied for a renewal of an existing license or permit, and whose primary business purpose is not the sale of alcoholic beverages, wine, or beer may obtain a temporary six- month exception certificate if the licensee’s or permittee’s business plan anticipates sales as required by subsection B(1) of this subsection. The licensee or permittee must submit an affidavit that details the nature of the new establishment and the anticipated percentage of sales of food and nonalcoholic beverages. At the end of the six-month period, the licensee or permittee may obtain an exception certificate for the remainder of the duration of the license or permit in accordance with subsections B(1) through B(3) of this subsection if sales during the six-month period support an exception. (6) To be effective in excepting the licensee or permittee from the prohibition in this subsection, the exception certificate issued by the Mayor must be posted at every entrance to the licensed or permitted establishment in view of patrons of the licensed or permitted establishments. C. The person under 21 years of age is on the premises during a time that the licensee or permittee has, in accordance with a written notice and plan given in advance