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Alchohol Regulations_Amendment to Code of Ordinances Chapter 5THE CITY OF Dubuque DUB E 1 Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Chapter 5 Alcohol Regulations DATE: February 11, 2009 Assistant City Attorney Crenna Brumwell recommends City Council approval of the revised Chapter 5 Alcohol Regulations, to include a provision that makes buffet style alcohol sales a violation of the City Code. This provision was inadvertently left out of the City Code when it was revised in 2004 and 2005. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Crenna Brumwell, Assistant City Attorney THE CTTY OF DuB E Masterpiece on the Mississippi CRENNA M. BRUMWELL, MEMORANDUM ,~, ~~.~~~~~ Es~ ASSISTANT CITY ATTORNEY To: Michael C. Van Milligen City Manger DATE: February 6, 2009 RE: Chapter 5 Alcohol Regulations In a recent review of Chapter 5 of the City Code with the Police Department I discovered an error which warrants correction. Chapter 5 was amended in October of 2004 to include a provision which made buffet style alcohol sales a violation of the City Code. During the Code revision which occurred in 2004 and 2005, it appears that the buffet style sales ordinance at Section 5-9 was inadvertently left out of the revision. When the City Code was repealed in January 2007 and the new Code was adopted, Section 5-9 was not included in the Code update and was repealed as a result. Attached you will find an ordinance which repeals Chapter 5 and adopts a new ordinance in lieu thereof for approval by the City Council to correct this inadvertent error. Please let me know if you have any questions. Thank you. cc: Jeanne Schneider, City Clerk Kim Wadding, Chief of Police OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org ORDINANCE NO. 10-09 AMENDING THE CITY OF DUBUQUE CODE OF ORDINANCES BY REPEALING CHAPTER 5 ALCOHOLIC BEVERAGES AND ADOPTING A NEW CHAPTER 5 ALCOHOLIC BEVERAGES IN LIEU THEREOF. NOW, THEREFORE, IT IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Chapter 5 of the City of Dubuque Code of Ordinances is amended as set forth in the attached Chapter 5 Alcoholic Beverages. Section 2. This Ordinance shall take effect on publication. Passed, approved and adopted this 16th day of February, 2009. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk CHAPTER5 ALCOHOLIC BEVERAGES ARTICLE I. IN GENERAL Sec. 5-1. Purpose of Chapter. The purpose of this Chapter is to provide administration of licenses, permits, local regulations, and procedures for the conduct of the sale and consumption of beer, wine, and liquor, and for the protection of the safety, health, peace, morals, and general welfare of the City. Sec. 5-2. Definitions. Where words and phrases used in this Chapter are defined by state law, such definitions shall apply to their use in this Chapter and are adopted by reference. Those definitions so adopted that need further definition are reiterated and other words and phrases used herein shall have the following meanings: Administrator means the Administrator of the Alcoholic Beverages Division of the Department of Commerce established by the Code of Iowa. Alcoholic beverage means any beverage containing more than one-half (1/2) of one percent (1 %) of alcohol by volume including alcoholic liquor, wine, and beer. Club means any nonprofit corporation or association of individuals, which is the owner, lessee, or occupant of a permanent building or part thereof, membership in which entails the prepayment of regular dues, and which is not operated for a profit other than such profits as would accrue to the entire membership. Commercial establishment means a place of business which is at all times equipped with sufficient tables and seats to accommodate twenty-five (25) people at one time and the licensed premises of which conform to the provisions of this Code and other ordinances of the City. Director means the Director, or the Director's designee, of the Iowa Alcoholic Beverages Division. Division means the Alcoholic Beverages Division of the Department of Commerce established by Code of Iowa. Grocery store means any retail establishment, the principal business of which consists of the sale of food or food products for consumption off the premises. The volume of sales of all other items, commodities, and materials shall be included with the volume of sales of beer and sales of beer shall not equal or exceed fifty percent (50%) of the dollar volume of all sales made by the establishment in order to meet the test that food must be the principal business thereof. Hotel or motel means premises licensed by the State Department of Inspections and Appeals and regularly or seasonally kept open in a bona fide manner for the lodging of transient guests and with twenty (20) or more sleeping rooms. Kitchen facility means a facility with a sink with piped water, non-portable cooking equipment such as ranges, cook stoves, or a cook top with oven, and refrigerator, located with the same building. Legal age means twenty-one (21) years of age or more. Persons of good moral character means any person who meets all of the following requirements: (1) The person has such financial standing and good reputation as will satisfy the City Council and the Director that the person will comply with the Iowa Alcoholic Beverages Control Act, all other laws, provisions of this Code, other City ordinances, and regulations applicable to the person's operations under state law. However, the City Council shall not require the person to post a bond to meet the requirements of this Paragraph; (2) The person is not prohibited by the provisions of this Chapter from obtaining a liquor license or beer permit; (3) Notwithstanding Paragraph (5) of this definition, the applicant is a citizen of the United States and a resident of the state or is licensed to do business in the state in the case of a corporation; and notwithstanding Paragraph (5) of this definition, in the case of a partnership, only one (1) general partner need be a resident of this state; (4) The person has not been convicted of a felony; however, if a conviction of a felony occurred more than five (5) years before the application for a license or permit and if the person's rights of citizenship have been restored by the Governor, the Director may determine that said person is a person of moral character notwithstanding the conviction; and, (5) The requirements of this Subsection apply to the following: a. Each of the officers, directors, and partners of such person; b. A person who directly or indirectly owns or controls ten percent (10%) or more of any class of stock of such person; and, c. A person who directly or indirectly has an interest of ten percent (10%) or more in the ownership or profits of such person. Restaurant means a commercial establishment where the usual and customary business is the serving of meals to consumers and which includes a kitchen facility. Sec. 5-3. Prohibited Sales and Acts. A person or club holding a liquor license or retail wine or beer permit under this Chapter and the person's or club's agents or employees shall not do any of the following: (1) Sell, dispense, or give to any intoxicated person or a person simulating intoxication any alcoholic liquor, wine, or beer; (2) Sell or dispense any alcoholic liquor, wine, or beer on the premises covered by the license or permit or permit its consumption thereon between the hours of two o'clock (2:00) A.M. and six o'clock (6:00) A.M. on any weekday or Saturday and between the hours of two o'clock (2:00) A.M. on Sunday and six o'clock (6:00) A.M. on the following Monday; however, a holder of a liquor control license or retail beer permit granted the privilege of selling alcoholic liquor, wine, or beer on Sundays may sell or dispense such liquor, wine, or beer on Sunday only between the hours of eight o'clock (8:00) A.M. and two o'clock (2:00) A.M. the following Monday; (3) Sell alcoholic beverages, wine, or beer to any person on credit except with a bona fide credit card. This Provision shall not apply to sales by a club to its members nor to sales by a hotel or motel to bona fide registered guests; (4) Employ any person under the age of eighteen (18) years in the sale or serving of alcoholic liquor, wine, or beer for consumption on the premises where sold; (5) In the case of a retail beer or wine permittee, knowingly allow the mixing or adding of alcohol or any alcoholic beverage to beer, wine, or any other beverage in or about the permittee's place of business; (6) Keep or allow to be kept gambling devices of any kind or description on the premises of place of business of the licensee or permit holder, contrary to law; (7) Keep on premises covered by a liquor control license any alcoholic liquor in any container except the original package purchased from the Division and except mixed drinks or cocktails mixed on the premises for immediate consumption. This prohibition does not apply to common carriers holding a Class D liquor control license; or, (8) Reuse for packaging alcoholic liquor or wine any container or receptacle used originally for packaging alcoholic liquor or wine; or adulterate, by the addition of any substances, the contents or remaining contents of an original package of an alcoholic liquor or wine; or knowingly possess any original package which has been so reused or adulterated. Sec. 5-4. Sunday Sales. Any clubs, hotel, motel, or commercial establishment holding a liquor control license, subject to Section 123.49, Subsection 2, Paragraph "b", may apply for and receive permission to sell and dispense alcoholic liquor and wine to patrons on Sunday for consumption on the premises only, and beer for consumption on or off the premises between the hours of eight o'clock (8:00) A.M. on Sunday and two o'clock (2:00) A.M. on the following Monday. A class "D" liquor control licensee may apply for and receive permission to sell and dispense alcoholic beverages to patrons for consumption on the premises only between the hours of eight o'clock (8:00) A.M. on Sunday and two o'clock (2:00) A.M. on the following Monday. For the privilege of selling beer, wine, and alcoholic liquor on the premises on Sunday, the liquor control license fee of the applicant shall be increased by twenty percent (20%) of the regular fee prescribed for the license pursuant to this Section and the privilege shall be noted on the liquor control license. Sec. 5-5. Advertisement for Alcohol, Liquor, Wine, or Beer. No signs or other matter advertising any brand of alcoholic liquor, beer, or wine shall be erected or placed upon the outside of any premises occupied by a licensee or permittee authorized to sell liquor, beer, or wine at retail. This Section does not prohibit the use of signs or other matter inside a fence or similar enclosure which wholly or partially surrounds the licensed premises. Sec. 5-6. Consumption in Public Places. It is unlawful for any person to use or consume alcoholic liquors, wine, or beer upon the public streets or highways or alcoholic beverages in any public place except premises covered by a liquor control license, or to possess or consume alcoholic liquors, wine, or beer on any public school property or while attending any public or private school related functions. As used in this Section, school means a school or that portion of a school which provides teaching for any grade from kindergarten through grade twelve (12). Sec. 5-7. Persons Under Legal Age. (a) A person or persons under legal age shall not purchase or attempt to purchase or individually or jointly have alcoholic liquor, wine, or beer in their possession or control except in the case of liquor, wine, or beer given or dispensed to a person under the legal age within a private home and with the knowledge, presence, and consent of the parent or guardian for beverage or medicinal purposes or administered to the person by either a physician or dentist for medicinal purposes and except to the extent that a person under the legal age may handle alcoholic liquor, wine, and beer during the regular course of the person's employment by a liquor control licensee, or wine or beer permittee under this Section. (b) A person who is under legal age, other than a licensee or permittee, who violates this Section regarding the purchase of or attempt to purchase alcoholic liquor, wine, or beer, or possessing or having control of alcoholic liquor, wine, or beer commits a simple misdemeanor punishable by a scheduled fine as established pursuant to Iowa Code §805.8c. Sec. 5-7.1. Persons Under Legal Age Prohibited from Attempting to Purchase or Otherwise Obtain Alcoholic Beverages and from Misrepresenting the Person's Age. (a) A person under legal age shall not misrepresent the person's age for the purpose of purchasing or attempting to purchase any alcoholic liquor, wine, or beer from any licensee or permittee. If any person under the legal age misrepresents the person's age and the licensee or permittee establishes that the licensee or permittee made reasonable inquiry to determine whether the prospective purchaser was over the legal age, the licensee or permittee is not guilty of selling alcoholic liquor, wine, or beer to a person under legal age. (b) A person violating this Section or reasonably believed to be violating this Section may be detained in a reasonable manner and for a reasonable length of time by a police officer, owner, operator, or an employee of a public establishment or private club where alcoholic liquor, wine, or beer is sold or dispensed for off premises or on premises consumption for the purpose of investigating or determining the person's true age and identity. Such detention shall not render the detainer criminally or civilly liable for false arrest, false imprisonment, or unlawful detention. (c) The manager of any public establishment that sells alcoholic liquor, wine, or beer for on premises or off premises consumption and the manager of any private club that serves alcoholic liquor, wine, or beer for on premises consumption shall be required to post in a conspicuous place a notice stating: NOTICE TO PERSONS UNDER LEGAL AGE You are subject to a fine for attempting to purchase or otherwise obtain alcoholic liquor, wine, or beer or for misrepresenting your age for the purpose of purchasing alcoholic liquor, wine, or beer. The size of said notice shall be not less than eight and one-half inches by eleven inches Sec. 5-7.2. Persons Under Legal Age Prohibited from Premises where Alcoholic Beverage is Sold or Dispensed. (a) It shall be unlawful for any person under the legal age to enter or remain upon any premises between the hours of nine o'clock (9:00) P.M. and closing where more than thirty-five percent (35%) of the business conducted on such premises is the sale or dispensing of liquor, wine, or beer except as set forth in Subsection (b) of this Section. The phrase "business conducted on such premises" shall be defined as the total business revenue generated on such premises during the previous calendar year. If the establishment otherwise qualifies under the foregoing thirty-five percent (35%) criteria and has one (1) or more restaurants in the building, no person under the legal age shall remain on the premises thirty (30) minutes after any restaurant on the licensed premises closes. (b) The prohibition of Subsection (a) of this Section shall not apply: (1) To a person under legal age who is an employee of the licensee or permittee, or performing a contracted service for the licensee or permittee on the premises; (2) To a person under legal age who is accompanied on the premises at all times by a parent, guardian, or spouse who is not under the age for lawful purchase and/or possession of alcoholic beverages; or, (3) To a person under legal age on the premises during a period of time when the licensee or permittee, in accordance with a written plan given to and approved by the Chief of Police, has suspended dispensing alcoholic liquor, wine, or beer on the licensed or permitted premises or in a clearly delineated area of the licensed or permitted premises. During such period of time, the licensee or permittee shall not permit any underage person to purchase or possess alcoholic liquor, beer, or wine on the premises. Police officers shall be admitted to the premises at any time to monitor compliance with all applicable laws. (c) No licensee or permittee or a licensee's or permittee's agent or employee shall allow any person under the legal age to enter or remain upon the premises between the hours of nine o'clock (9:00) P.M. and closing where the business conducted includes the sale and dispensing of alcoholic liquor, wine, or beer, except as permitted in Subsections (a) and (b) of this Section. The licensee or permittee of any business that sells alcoholic liquor, wine, or beer for on premises consumption shall be required to post in a conspicuous place a notice stating: NOTICE TO PERSONS UNDER THE LEGAL AGE You are subject to a fine for being on these premises between the hours of 9:00 p.m. and closing unless you are employed by the owner or are accompanied by a parent, guardian, or spouse who is of legal age. Sec. 5-8. Notice of Violation Upon Issuance of Citation. The Chief of Police, or the Chief of Police's designee, shall provide written notice to a beer permit, wine permit, or liquor license holder upon issuance of summons or citation to any employee or agent for a violation of this Article or the provisions of the Code of Iowa. Such notice of violation shall be directed to the permit or license holder as recorded in the office of the City Clerk and shall be by certified United States mail, return receipt requested. When the holder of the permit or license has been issued a citation or summons coincidental to the same action of the police, the above provision of notice shall not be required. Sec. 5-9. Buffet Sales Prohibited. (a) The holder of a liquor license or wine or beer permit or the holder or permittee's employees or agents shall not sell, offer to sell, dispense, or serve for purpose of on premises consumption an unlimited number of servings of alcoholic liquor, wine, or beer for a fixed price. (b) Nothing in this Section shall prohibit the holder of a liquor control license or wine or beer permit, or the holder or permittee's employees or agents, from: (1) Including servings or drinks of alcoholic liquor, beer, or wine as part of a hotel or motel package which includes overnight accommodations; (2) Providing a fixed price for an unlimited or indefinite amount of drinks for a "private event", which is defined as an event restricted to a particular group or persons, provided that the licensee or permittee shall provide the means or method by which to identify persons participating in private events, such as use of a private room or a physical means to identify such participants; or (3) Selling, offering to sell, dispensing, or serving for purpose of on premises consumption an unlimited number of servings of alcoholic liquor, wine, or beer for a fixed price if permitted for a special event by the City Council. Secs. 5-10 - 5-18. Reserved. ARTICLE II. LIQUOR CONTROL LICENSES, WINE PERMITS, AND BEER PERMITS Sec. 5-19. Required. No person shall sell beer or wine at retail in the City nor shall any person sell beer, wine, or alcoholic liquor in the City for consumption on the premises without first obtaining a beer permit, wine permit, or a liquor control license as required by state law and subject to the provisions of this Article. Secs. 5-20 - 5-21. Reserved. Sec. 5-22. Separate Beer Permits and Wine Permits Required for Separate Locations. (a) Each person holding a class B or class C beer permit having more than one (1) place of business where such beer is sold shall be required to have a separate beer permit for each separate place of business, except as otherwise prohibited by state law. (b) A class B wine permittee having more than one (1) place of business where wine is sold shall obtain a separate permit for each place of business. Sec. 5-23. Application; Bond. A verified application for the original issuance or the renewal of a liquor control license, wine permit, or beer permit shall be filed at such time, in such number of copies, and in such form as the state director of beer and liquor control shall prescribe, on forms prescribed by the state director of beer and liquor control. The application shall be accompanied by the fee, if required, and bond and shall be filed with the City Clerk for submission to the City Council for approval or disapproval. Sec. 5-24. Persons Eligible. Upon meeting the requirements imposed by state law, the provisions of this Code, and other ordinances of the City, a person who is of good moral character may apply for a liquor control license, wine permit, or beer permit. In the case of a club, corporation, or partnership, the officers of the club or corporation and the partners of a partnership shall be persons of good moral character as defined by state law and this Chapter. Sec. 5-25. Reserved. Sec. 5-26. Investigation of Applicant and Premises. Upon receipt of an original application for a liquor license, wine permit, or beer permit by the City Clerk, it shall be forwarded to the Chief of Police who shall conduct an investigation and shall submit a written report on the applicant as to the truth of the facts averred in the application and a recommendation to the City Council as to the approval of the license or permit. It shall be the duty of the Health, Building, and Fire Departments to inspect the premises to determine if it conforms to the requirements of the City and no license or permit shall be approved until or unless an approving report has been filed with the City Clerk for submission to the City Council. Sec. 5-27. Requirements for Premises. (a) An applicant for a liquor control license, wine permit, or beer permit, as a further condition for approval by the City Council, must give consent in writing on the application that members of the Fire, Police, Building, and Health Departments may enter upon the premises without warrant to inspect for violations of the provisions of state law and of this Chapter. (b) In addition to any other requirements, the premises for which a beer permit, wine permit, or liquor control license is sought shall meet the following requirements: (1) No liquor control license, wine permit, or beer permit shall be approved for premises which do not conform to all applicable laws, provisions of this Code, and other ordinances, resolutions, and health and fire regulations. (2) No licensee shall have or maintain any interior access to residential or sleeping quarters unless permission is granted by the administrator in the form of a living quarters permit. (3) The premises for which a retail beer permit is sought shall be located within a business district or an area now or hereafter zoned to permit such business and shall conform to the zoning requirements of the City. However, no class B beer permit shall be issued for premises located in local business A district classification unless a public hearing is first held therefore and due notice of such public hearing has first been given. (4) The premises of a retail beer permittee shall, at the time of the application, continue to be equipped with sufficient tables and seats to accommodate twenty five (25) people at one time. Sec. 5-28. Proof of Financial Responsibility. Each liquor control licensee and retail beer permittee shall furnish proof of financial responsibility either by the existence of a liability insurance policy or by posting bond in such amount as shall be determined by the Division. Sec. 5-29. Fees and Surcharges. Fees and surcharges shall be submitted with the respective application for a beer permit, wine permit, or liquor control license in accordance with the requirements of the Code of Iowa. Sec. 5-30. Action by the City Council; Forwarding of Documents to the State. Action taken by the City Council shall be so endorsed on the application and thereafter the application, necessary fee, and bond, if required, shall be forwarded to the Division for such further action as is provided by law. Sec. 5-31. Nature and Scope of License or Permit. A liquor control license or beer or wine permit shall be a purely personal privilege and shall be revocable for cause; it shall not constitute property nor be subject to attachment and execution, nor be alienable nor assignable and, in any case, it shall cease upon the death of the permittee or licensee; however, the Director may in the Director's discretion allow the executor or administrator of a permittee or licensee to operate the business of the decedent for a reasonable time, not to exceed the expiration date of the permit or license. Each permit or license shall be issued in the name of the applicant and no person holding a permit or license shall allow any other person to use it. Sec. 5-32. Transferability as to Location. The City Council may, in its discretion, authorize a licensee or permittee under this Article to transfer the license or permit from one location to another within the City, provided that the premises to which the transfer is to be made would have been eligible for a license or permit in the first instance and the transfer will not result in the violation of any law, provisions of this Code, or other City ordinance. Sec. 5-33. Surrender of Permit or License; Refund of Fee. Any licensee or permittee under this Article, or any licensee's or permittee's executor, administrator, or any person duly appointed by a court to take charge of and administer the property or assets of the licensee or permittee for the benefit of the licensee's or permittee's creditors may voluntarily surrender such license or permit to the Division, and when so surrendered, the Division shall notify the City. The Division and the City, or the City by itself in the case of a retail beer permit, shall refund to the person so surrendering the license or permit a proportionate amount of the fee paid for such license or permit as follows: If surrendered during the first three (3) months of the period for which the license or permit was issued, the refund shall be three-fourths (3/4) of the amount of the fee; if surrendered more than three (3) months, but not more than six (6) months after issuance, the refund shall be one-half (1/2) of the amount of the fee; if surrendered more than six (6) months, but not more than nine (9) months after issuance the refund shall be one-fourth (1/4) of the amount of the fee. No refund shall be made, however, for a liquor control license or beer permit surrendered more than nine (9) months after issuance. No refund shall be made to any licensee or permittee upon the surrender of his license or permit, if there is at the time of the surrender a complaint filed with the department or the City charging him with a violation of this Chapter or any provision of the Iowa Alcoholic Beverage Control Act. If upon hearing any such complaint, the license or permit is not revoked or suspended, then the licensee or permittee shall be eligible, upon surrender of the licensee's or permittee's license or permit, to receive a refund as provided in this Section; but if the licensee's or permittee's license or permit is revoked or suspended upon the hearing, he shall not be eligible for the refund of any portion of the licensee's or permittee's license or permit fee. No refund shall be made for seasonal licenses or permits. Sec. 5-34. Term of License or Permit; Seasonal Licenses and Permits. All liquor control licenses, wine permits, and beer permits, unless sooner suspended or revoked, shall expire one (1) year from the date of issuance. Six (6) or eight (8) month seasonal licenses, wine permits, or beer permits may be issued for a proportionate part of the license or permit fee. No seasonal license or permit shall be renewed except after a period of two (2) months. Seasonal licensing shall be only as permitted by the Code of Iowa. Sec. 5-35. Application for Renewal. Upon receipt of an application for the renewal of a liquor license, wine permit, or beer permit, it shall be forwarded to the Chief of Police who shall conduct an investigation and shall submit a written report on the applicant as to the truth of the facts answered in the application and a recommendation to the City Council as to the approval of the license or permit. Sec. 5-36. Suspension and Revocation-Generally; Grounds. (a) In addition to the penalties of this Article, the City Council may suspend a license or permit issued pursuant to this Chapter for a period not to exceed one (1) 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 an opportunity for a hearing. (b) A license or permit issued under this Chapter may be suspended or revoked or a civil penalty may be imposed on the license or permit holder for any of the following causes: (1) Misrepresentation of any material fact in the application for the license or permit. (2) Violation of any of the provisions of this Chapter. (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 local authority and the Division. (4) An event which would have resulted in disqualification from receiving the 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 the licensee or permittee to render any report or remit any taxes to the Division under this Chapter when due. (c) A criminal conviction is not a prerequisite to suspension, revocation, or imposition of a civil penalty pursuant to this Section. (d) The City Council may suspend any retail wine or beer permit or liquor control license for a violation of this Ordinance or any of the provisions of the Code of Iowa. (e) If the cause for suspension is a first offense violation of the Code of Iowa, the City Council shall impose a penalty in the amount of three hundred dollars ($300.00) in lieu of suspension of the license or permit. Sec. 5-37. Suspension and Revocation-Specific Terms. (a) The conviction of any liquor control licensee, wine permittee, or beer permittee for a violation of any of the provisions of this Chapter shall be grounds for the suspension or revocation of the license or permit by the Division or the City. However, if any liquor control licensee is convicted of any violation of the Code of Iowa or any beer permittee convicted of a violation of the Code of Iowa, the liquor control license, wine, or beer permit shall be revoked and shall immediately be surrendered by the holder and the bond of the license or permit holder shall be forfeited to the Division. (b) If any licensee, wine permittee, beer permittee, or employee of such licensee or permittee shall be convicted of a violation of the Code of Iowa or a retail beer permittee shall be convicted of a violation of this Chapter, the City shall, in addition to the other penalties fixed for such violations by this Section, assess a penalty as follows: (1) Upon a first conviction, the violator shall be assessed a civil penalty in the amount of three hundred dollars ($300.00). Failure to pay the civil penalty will result in automatic suspension of the license or permit for a period of fourteen (14) days, in addition to the civil penalty of three hundred dollars ($300.00). (2) Upon a second conviction within a period of two (2) years, the violator's liquor control license, wine, or beer permit shall be suspended for a period of thirty (30) days. (3) Upon a third conviction within a period of three (3) years, the violator's liquor control license, wine, or beer permit shall be suspended for a period of sixty (60) days. (4) Upon a fourth conviction within a period of three (3) years, the violator's liquor control license, wine, or beer permit shall be revoked. Sec. 5-38. Appeal and Hearing. The right of appeal to the Alcoholic Beverage Division Hearing Board shall be afforded a liquor control licensee, wine permittee, or beer permittee whose license or permit has been suspended, revoked, or denied. Sec. 5-39. Effect of Revocation. Any liquor control licensee or beer or wine permittee whose license or permit is revoked under the Code of Iowa shall not thereafter be permitted to hold a liquor control license or a beer or wine permit in the State for a period of two (2) years from the date of the revocation. The spouse and business associates holding ten percent (10%) or more of the capital stock or ownership interest in the business of a person whose license or permit has been revoked shall not be issued a liquor control license or beer or wine permit, and no liquor control license or beer or wine permit shall be issued which covers any business in which such person has a financial interest for a period of two (2) years from the date of such revocation. In the event a license or permit is revoked, the premises which had been covered by the license or permit shall not be relicensed for one (1) year.