Iowa Code Section states:

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1 Terry E. Branstad Kim Reynolds Stephen Larson Governor of Iowa Lieutenant Governor IN RE: ) Docket No. S Rachelle Brown ) D/B/A Friends Restaurant & Lounge ) Date: November 17, rd St ) Underwood, Iowa ) HEARING COMPLAINT FOR ) SUMMARY SUSPENSION OF ) LIQUOR CONTROL LICENSE License Number LC ) PURSUANT TO IOWA CODE ) SECTION 17A.18(3) COMPLAINT is hereby made by the Licensing Bureau of the Iowa Alcoholic Beverages Division, pursuant to Iowa Code sections (2) and (4), and 17A.18(3), that the above named Liquor control licensee is in violation of Iowa Code sections and which state: Iowa Code Section states: It is unlawful to manufacture for sale, sell, offer or keep for sale, possess, or transport alcoholic liquor, wine, or beer except upon the terms, conditions, limitations, and restrictions enumerated in this chapter. Every liquor control licensee and class "B" beer permittee, except a class "E" liquor control licensee, shall furnish proof of financial responsibility by the existence of a liability insurance policy in an amount as determined by the division. and 185 Iowa Admin. Code subrules 5.8(1)-(3) which states: For the purpose of providing proof of financial responsibility, as required under the provisions of Iowa Code section , a liability insurance policy must meet the following requirements. (1) Current certificate required. It must be issued by a company holding a current certificate of authority from the Iowa insurance commissioner authorizing the company to issue dramshop liability insurance in Iowa or issued under the authority and requirements of Iowa Code sections to The dramshop policy must take effect the day the license or permit takes effect and must run until the expiration date of the license or permit. A new dramshop must be provided each time the division issues a new license with a new license number or a new permit with a new permit number. A Division of the Department of Commerce 1918 SE Hulsizer Road Ankeny, Iowa PH FAX TOLL FREE 866.IowaABD

2 (2) Limits of liability. It must provide the following limits of liability, exclusive in interests and cost of action, per accident: (For the purpose of this subsection, the word "accident" shall mean any one occurrence, or any one accident, or series of accidents or occurrences arising out of any one event or any one case of intoxication. a. Fifty thousand dollars for bodily injury to or death of one person in each claim or occurrence. b. One hundred thousand dollars for bodily injury to or death of two or more persons in each occurrence. c. Twenty-five thousand dollars for loss of means of support of any one person in each occurrence. d. Fifty thousand dollars for loss of means of support of two or more persons in each occurrence. TO WIT: 1. That the Iowa Alcoholic Beverages Division was given notice on October 19, 2015, that effective November 18, 2015 at 12:01 a.m., the dramshop liability insurance covering the licensed establishment known as Friends Restaurant & Lounge, covered by liquor license number LC is ineffective. (A copy of the Notice of Cancellation is attached herein as Exhibit "A" and incorporated herein by reference.) 2. That the holder of said license has not filed proof of financial responsibility with the Division as is required by the above-cited statutes and rules. 3. That proof of such financial responsibility is a condition precedent to the issuance of a liquor license, and, therefore, the licensee's failure to file proof of such responsibility is an event which would have rendered the licensee ineligible to receive the license when it was issued and is further a violation of the provisions of Iowa Code chapter 123.

3 4. That such financial responsibility is necessary to protect the health, safety and welfare of the public and the licensee's failure to provide proof of such responsibility is, therefore, grounds for summary suspension of the permit in accordance with Iowa Code section 17A.18A. 5. That the Iowa Alcoholic Beverages Division 's Designee, should therefore summarily suspend the above-enumerated class C liquor license pursuant to Iowa Code section 17A.18A and Iowa Code sections (2) and (4). WHEREFORE it is requested that the Iowa Alcoholic Beverages Division s Designee summarily suspend the above-enumerated class C liquor license pending further proceedings before the agency and proceed to hear the matter in accordance with the law and regulations. Deputy of Regulatory Affairs

4 Terry E. Branstad Kim Reynolds Stephen Larson Governor of Iowa Lieutenant Governor IN RE: ) Rachelle Brown ) D/B/A Friends Restaurant & Lounge ) Docket No. S rd St. ) Underwood, Iowa ) O R D E R ) Liquor License No. LC ) NOW on this the 17th day of November, 2015, the Hearing Complaint filed herein by the Licensing an Regulation Bureau of the Iowa Alcoholic Beverages Division being before the Iowa Alcoholic Beverages Division s designee, the following FINDINGS OF FACT are made: 1. That the records of the Department support the allegations in the Complaint that the dramshop liability insurance covering the licensed establishment known as Friends Restaurant and Lounge in Underwood, Iowa has been cancelled and that no substitute proof of dram shop liability insurance has been filed. 2. That the absence of dramshop liability insurance exposes the public to the potential of injuries endangering the public health, safety and welfare which cannot be compensated. Further the following CONCLUSIONS OF LAW are made: 1. That a class C liquor licensee s failure to file proof of dramshop liability insurance with the Division is a violation of Iowa Code sections and and of 185 Iowa Admin. Code section That such filing of proof of financial responsibility is a condition precedent to the issuance of a liquor license and failure to file such proof is a violation of the provisions of Iowa Code chapter 123, and grounds for suspension of the license under Iowa Code section (2) and (4). 3. That the peril to public health, safety and welfare inherent in the operation of a licensed establishment without the requisite dramshop liability insurance, constitutes grounds for the summary suspension of a class C liquor license under Iowa Code section 17A.18A. IT IS THEREFORE ORDERED that the liquor license issued to Rachelle Brown d/b/a Friends Restaurant and Lounge, LC , and it hereby is suspended at 12:01 AM on Wednesday, November 18, 2015 upon service of this Order upon the person in charge of said establishment. A Division of the Department of Commerce 1918 SE Hulsizer Road Ankeny, Iowa PH FAX TOLL FREE 866.IowaABD

5 IT IS FURTHER ORDERED that the licensee may request a hearing on this matter which will be scheduled as soon as practicable by the Iowa Alcoholic Beverages Division. IT IS FURTHER ORDERED that liquor, wine, beer and other alcoholic beverages shall not be sold, dispensed, consumed or given away by any person in or on the premises known as Friends Restaurant and Lounge during the period of said suspension. DATED this 17th day of November, IOWA ALCOHOLIC BEVERAGES DIVISION STEPHEN LARSON

6 NOTICE OF SUSPENSION LIQUOR CONTROL LICENSE LC The Iowa Alcoholic Beverages Division hereby gives notice that the above-stated liquor control license issued to: Rachelle Brown d/b/a Friends Restaurant and Lounge rd St. Underwood, Iowa is suspended PENDING FURTHER ORDER, beginning 12:01 A.M. on November 18, 2015 and ending PENDING FURTHER ORDER for the following reason: Failure to maintain the requisite Dramshop Liability Insurance as required by law. IOWA ALCOHOLIC BEVERAGES DIVISION Stephen Larson Removal of this notice before expiration of the above mentioned suspension dates by any person without approval of the Iowa Alcoholic Beverages Division or the Local Authority, is a violation of 185 Iowa Administrative Code section 4.15.