Can Iowa bars be punished for serving drunk patrons?

Kathy A. Bolten | The Des Moines Register

Show Caption Hide Caption A timeline of the fatal 2016 crash that killed two officers A review of court records show the timeline leading up to the 2016 crash that killed a drunk driver, two police officers and an inmate on I-80.

Iowa bars and restaurants can be punished for over-serving patrons, but rarely are.

How does that work? The following explains Iowa's laws and administrative rules regarding serving alcohol to someone who is drunk.

Q. What does it mean to be intoxicated?

Iowa law says a person is intoxicated when his or her blood alcohol content is 0.08 percent or higher. There is no exact formula for determining the amount of alcohol it takes to become legally drunk. In general, a man who weighs about 220 pounds likely is legally intoxicated after drinking four, 12-ounce beers or wine coolers in a one-hour period, studies have shown.

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Q. What does Iowa law say about selling or serving alcohol to someone who is drunk?

Iowa Code 123.49 prohibits establishments — bars, restaurants, hotels, motels, liquor stores, convenience and grocery stores — from serving or selling liquor, wine or beer to a person who is or appears to be intoxicated.

Q. What are the penalties for serving or selling alcohol to someone who is drunk?

There are two types of penalties. One is criminal and the other is administrative. If a person is criminally found guilty of providing alcohol to someone who is drunk, it’s a simple misdemeanor punishable by up to 30 days in jail and a fine that ranges from $65 to $625. An administrative penalty could be assessed against the license or permit holder through Iowa’s Alcoholic Beverages Division and can include suspension or revocation of an alcohol license or permit and fines.

Q. How many administrative complaints of providing alcohol to someone who is drunk has the Alcoholic Beverages Division investigated?

Since 2008, 24 complaints have been filed against Iowa businesses that provided alcohol to people who were drunk. Five complaints were dismissed; two have not yet been resolved. In the remaining complaints, businesses faced penalties that included suspension of liquor licenses for seven to 28 days, and fines ranging from $1,000 to $30,000. No business had its liquor license revoked for providing alcohol to people who were drunk.

Q. Are there other types of penalties businesses can face?

Yes, dram shop liability.

(A dram is a small amount of something to drink, typically alcohol. A dram shop refers to a commercial business, like a bar, that serves alcoholic beverages.)

In general, most states require businesses that serve alcohol to carry dram shop insurance. Dram shop laws are designed to protect the public from intoxicated people who kill or injure others in crashes and other accidents. Most states allow bars and restaurants to be held liable to pay for medical expenses, lost wages and other damages if their employees serve drinks to patrons who later injure or kill themselves or another person.

In April, Iowa Gov. Kim Reynolds signed legislation that reduces the legal and financial liabilities of bars and restaurants that over-serve patrons who later are involved in crashes. The changes to the law went into effect July 1 and do not affect the Alcoholic Beverages Division’s decisions regarding licenses. The state agency is not involved in cases where an award for dram shop liability is sought.

The changes cap at $250,000 any non-economic damages awarded to a person injured by an intoxicated driver or whose property was damaged by a crash. An exception could be made to the limit if a jury determines there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, or death, and a plaintiff would be deprived of just compensation for injuries. The changes in the law leave economic damages uncapped.