4.2. SR 03-13-2000-'ity of
iver
M£MORANDLIM
Item # 4.2.
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Sandra Peine, City Clerk
March 13, 2000
Liquor Ordinance
Request
The City of Elk River is requesting to repeal the existing liquor ordinance in
its entirety and to adopt a new liquor ordinance.
Overview
This ordinance was redrafted with the assistance of the City Attorney. State
Law and examples from other Minnesota cities were used in the redrafting of
the ordinance.
There are two main reasons for adopting a new liquor ordinance.
1) To bring the city's ordinance into conformance with the state law.
2)
To clearly spell out the penalties for violations relating to the liquor
ordinance.
During the last liquor compliance check, the council was requested to
impose a penalty for an establishment that failed the compliance check.
Because the city did not have a uniform penalty for violators, the Council felt
that it would be unfair to be arbitrary in setting penalties. The council
indicated that it wanted to see some consistency in issuing liquor violation
penalties. This ordinance clearly defines specific penalties for liquor
violations in a violation grid on page 16 of the ordinance.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Council memo - Liquor Ordinance
Page 2
Analysis
The major issue in the redrafting of the ordinance is the presumptive
penalties. The proposed penalties for liquor violations are as follows:
NUMBER OF VIOLATIONS IN PRESUMPTIVE PENALTY
A LICENSED YEAR
First Violation $500 civil penalty
Second Violation 5 day suspension and $1,000 civil
penalty to be paid before the
expiration of the suspension
Third Violation 10 day suspension and $2,000 civil
penalty to be paid before the
expiration of the suspension
Fourth Violation License Revocation
It is proposed that these penalties coincide with the liquor license period of
one year (from July 1 - June 30). After a one-year time period, the penalties
would then revert back to "0.'
The state law allows cities much discretion in imposing penalties as shown
below by the quote from State Statute 340A.415.
"On finding that the license or permit holder has failed to comply with
applicable statute, rule or ordinance relating to alcoholic beverages, the
authority issuing a retail license or permit may revoke the license or permit,
suspend the license for up to 60 days, impose a civil penalty of up to $2,000 for
each violation, or impose any combination of these sanctions.'
One other issue that the Council should be aware of is that State Law does
not require liquor establishments to close at 8:00 p.m. on Christmas Eve.
The law allows cities to be more restrictive, and in the past our ordinance has
required closing at 8:00 p.m. on Christmas Eve. This language is also
currently in the proposed ordinance.
Notification Given to Liquor Licensees
I have sent this ordinance to all liquor licensees and informed them of the
March 13th Council meeting.
Council memo - Liquor Ordinance
Page 3
Recommendation
It is Staffs intention to have the new liquor ordinance in effect prior to the
next liquor compliance check which will take place sometime in the spring.
Therefore, staff is requesting that the council adopt the ordinance on
Monday, March 13.
It is Staffs recommendation that council adopt the proposed liquor ordinance.
If the council decides to revise portions of the ordinance, the ordinance can be
adopted as revised by the Council. The two issues that need to be defined by
the council are:
1)
2)
Presumptive penalties
Closing time for Christmas Eve
s: \COUNCIL\liqmemo.doc
Ordinance 2000-
AN ORDINANCE OF THE CITY OF ELK RIVER
AN ORDINANCE AMENDING SECTION 800 OF THE CITYOF ELK RIVER
CODE OF ORDINANCES ENTITLED BEER, WINE, AND LIQUOR
LICENSING AND REGULATION
Section 1. That Section 800 of the City of Elk River Code of
Ordinances shall be amended to read as follows:
SECTION 800 - BEER, WINE, AND LIQUOR LICENSING AND
REGULATION ORDINANCE
800.00 - PROVISIONS OF STATE LAW ADOPTED
Except to the extent the provisions of this Chapter are more
restrictive, the provisions of Minnesota Statutes, Chapter 340A,
as amended, regarding the terms, licensing, consumption, sales,
hours of sale, and all other matters pertaining to the retail
sale, distribution, and consumption of intoxicating liquor and
3.2 percent malt liquor are adopted and made a part of this
Chapter as if set out in full.
800.02 - DEFINITIONS
As used in this Chapter, unless otherwise stated in specific
sections, the following words and terms shall have the meanings
stated:
ALCOHOLIC BEVERAGE: means any beverage containing more than
one-half (1/2} of one percent (1%) alcohol by volume.
APPLICANT: means any person making an application for a license
under this Chapter.
BEER: means malt liquor that contains not less than one-half
(1/2) of one-percent (1%) alcohol.
3.2 PERCENT BEER: means malt liquor that contains not less than
one-half (1/2) of one percent (1%) alcohol by volume and not in
excess of 3.2 percent alcohol by weight.
CLUB: means an incorporated organization under the law of the
State for civic, fraternal, social, or business purposes, for
intellectual improvement or for the promotion of sports, or a
congressionally chartered veterans organization which: (1) has
more than 50 members; (2) has owned or rented a building or space
in a building for more than one year that is suitable and
adequate for the accommodation of its members; and (3) is
directed by a board of directors, executive committee, or other
similar body chosen by the members at a meeting held for that
purpose. No member, officer, agent, or employee shall receive
any profit from the distribution or sale of beverages to the
members of the club, or their guests, beyond a reasonable salary
or wages fixed and voted each year by the governing body.
COMMISSIONER: means the Minnesota Commissioner of Public Safety.
COUNCIL: means the Elk River City Council.
GUEST: means a person not a member of the club licensee but
present on the club-licensed premises in the company of a host
member.
HOTEL: an establishment where food and lodging are regularly
furnished to transients and which has: (1) a dining room serving
the general public at tables and having facilities for seating at
least 30 guests at one time; (2) guest rooms in the following
minimum numbers: in first class cities, 50; in second class
cities, 25; in all other cities and unincorporated areas,10.
INTOXICATING LIQUOR: is ethyl alcohol and distilled, fermented,
spirituous, vinous, and malt beverages containing in excess of
3.2 percent (3.2%) of alcohol by weight,
LICENSE: means a document issued by the City to an applicant
permitting him to carry on and transact the business stated
therein.
LICENSE FEE: means the money paid to the City pursuant to an
application and prior to issuance of a license to transact and
carry on the business stated therein.
LICENSED PREMISES: means the premises described in the approved
license application. The license may be issued only for a space
that is compact and contiguous. In the case of a restaurant or a
club licensed for on-sale of alcoholic beverages and located on a
golf course, ~licensed premises" includes the entire golf course
except for areas where motor vehicles are regularly parked or
operated.
MALT LIQUOR: means any beer, ale, or other beverage made from
malt by fermentation and containing not less than one-half (1/2)
of one percent (1%) alcohol by volume.
MANUFACTURER: means every person who, by any process of
manufacture, fermenting, brewing, distilling, refining,
rectifying, blending, or by the combination of different
materials, prepares or produces liquors, wine, or beer for sale.
OFF-SALE: means the sale of alcoholic beverages in original
packages for consumption off the premises only.
ON-SALE: means the sale of alcoholic beverages for consumption
on the licensed premises.
RESTAURANT: means any establishment, other than a hotel, which is
under the control of a single proprietor or manager where meals
are regularly prepared on the premises and served at tables to
the general public, and having a minimum seating capacity for
guests as prescribed by the appropriate licensing authority.
WHOLESALER: means any person who sells alcoholic beverages to
persons to whom the sale is permitted under section 340A.310,
from a stock maintained in a warehouse in the state.
WINE: is the product made from the normal alcoholic fermentation
of grapes, including still wine, sparkling and carbonated wine,
wine made from condensed grape must, wine made from other
agricultural products than sound, ripe grapes, imitation wine,
compounds sold as wine, vermouth, cider, perry and sake, in each
instance containing not less than one-half (1/2) of one percent
(1%) nor more than 24 percent alcohol by volume for nonindustrial
use.
3.2% MALT LIQUOR: is malt liquor containing not less than one-
half (1/2) of one percent (1%) by volume nor more than 3.2
percent (3.2%) alcohol by weight.
800.04 - LICENSES REQUIRED.
No person, except as otherwise provided in Minnesota Statutes
chapter 340A shall directly or indirectly deal in, sell, keep for
sale or deliver any intoxicating liquor, 3.2 percent malt liquor,
or wine as part of a commercial transaction without first having
received a license to do so as provided in this chapter; nor
shall any private club or public place, directly or indirectly,
or upon any pretense or by any device, allow the consumption or
display of intoxicating liquor or serve any liquid for the
purpose of mixing with intoxicating liquor without first
obtaining a license from the City as provided in this chapter.
800.06 - TYPES OF LICENSES.
The following types of licenses are issued under this Chapter:
1. Intoxicating Liquor License; On-Sale. 0n-sale intoxicating
liquor licenses shall be granted only to hotels, restaurants,
bowling centers, clubs, and exclusive liquor stores.
A. Special Provision - Community Festivals - The City
Council may authorize the holder of a retail on-sale
intoxicating liquor license issued by the City Council to
dispense intoxicating liquor off premises at a community
festival held within the municipality. The authorization
shall specify the area in which the intoxicating liquor may
be dispensed and consumed, and shall not be issued unless
the licensee demonstrates that it has liability insurance
to cover the event.
2. Wine Licenses. Wine licenses may be issued with the
approval of the Commissioner only to restaurants having
facilities for seating at least 25 people at one time for the
sale of wine not exceeding 14 percent alcohol by volume and for
consumption on the licensed premises only in conjunction with the
sale of food.
Provision to Sell Intoxicating Malt Liquor. The
holder of a wine license who is also licensed to sell
3.2 percent malt liquor on-sale and whose gross
receipts are at least sixty percent (60%) attributable
to the sale of food, may also sell intoxicating malt
liquor at on-sale without an additional license.
Bo
Bed and Breakfast Wine License. The City may issue an
on-sale wine license with the approval of the
commissioner to a licensed bed and breakfast facility.
3. 3.2 Percent Malt Liquor Licenses. The City may issues off-
sale or on-sale 3.2 percent malt liquor licenses.
A. On-sale 3.2 Percent Malt Liquor License. 0n-sale 3.2
percent malt liquor license may be issued to drugstores,
restaurants, hotels, clubs, bowling centers, and
establishments used exclusively for the sale of 3.2 percent
malt liquor with the incidental sale of tobacco and soft
drinks and served for consumption on the premises only.
B. Off-sale 3.2 Percent Malt Liquor License. Off-sale
3.2 percent malt liquor license may be issued to general
food stores and drug stores and permit the sale of 3.2
percent malt liquor at retail in the original package for
consumption off the premises only.
C. Temporary 3.2 Percent Malt Liquor License. A club or
charitable, religious, or nonprofit organization may be
issued a temporary on-sale license for the sale of 3.2
percent malt liquor. The temporary license may authorize
the sale of 3.2 percent malt liquor in any school or school
buildings.
4
4. On-Sale Sunday Liquor License. An on-sale Sunday liquor
license may be issued to a hotel or restaurant, club, or bowling
center with facilities for serving not less than thirty (30)
guests at one time, to which an on-sale intoxicating license has
been issued. Such license may permit the sale of liquor to be
consumed on the premises between the hours of 10:00 a.m. on
Sunday and 1:00 a.m. on Monday in conjunction with the serving of
food provided the licensee is in conformance with the Minnesota
Clean Air Act. No Sunday license is needed for on-sale wine
licenses.
5. Temporary On-sale Licenses. The City may issue to a club
or charitable, religious, or nonprofit organization in existence
for at least 3 years a temporary license for the on-sale of
intoxicating liquor in connection with a social event within the
municipality sponsored by the licensee. The license may
authorize the sale of intoxicating liquor for not more than four
(4) consecutive days and may allow on-sales on premises other
than premises the licensee owns or permanently occupies. The
license may provide that the licensee may contract for
intoxicating liquor catering services with the holder of a full-
year on-sale intoxicating liquor license issued by any
municipality. Temporary on-sale intoxicating liquor licenses
require the approval of the commissioner of public safety.
Licenses are subject to terms and license fees normally imposed
by the City.
A. TemDorary License Restrictions.
i. The City may not issue more than three four-day,
four three-day, six two-day, or 12 one-day temporary
licenses in any combination not to exceed 12 days per
year for the sale of alcoholic beverages to any one
organization or for any one location, within a 12
month period.
ii. The City may not issue more than one temporary
license for the sale of alcoholic beverages to any one
organization or for one location within any 30-day
period unless the licenses are issued in connection
with an event officially designated a community
festival by the municipality.
B. Insurance Required. The Council may, but at no time
shall it be under any obligation whatsoever to, grant a
temporary on-sale intoxicating liquor license or temporary
on-sale 3.2 percent malt liquor license on premises owned
or controlled by the city. Any such license may be
conditioned, qualified or restricted as the council sees
fit. If the premises to be licensed are owned or under the
control of the city, the applicant shall file with the
city, prior to issuance of the license, a certificate of
liability insurance coverage in at least the sum of
$100,000 for injury to any one person, $300,000.00 for
injury to more than one person, and $25,000 for property
damage, naming the city as an insured during the license
period.
6. Club Licenses. Club licenses may be issued to clubs or
congressionally chartered veterans organizations with the
approval of the Commissioner, provided that the organization has
been in existence for at least three years and liquor sales will
only be to members and bona fide guests.
7. Consumption and Display Permits. Consumption and display
permits may be issued to a bottle club which complies with the
requirements of Minnesota Statutes 340A.414.
A. Eligibility for Permit. The Commissioner of Public
Safety may issue a consumption and display permit to:
i. An applicant who has not, within five years prior
to the application, been convicted of a felony or of
violating any provisions of this chapter or rule
adopted under this chapter.
ii. A restaurant
iii. A hotel
iv. An establishment licensed for the sale of 3.2
percent malt liquor
v. A resort
vi. A club as defined in Minnesota Statutes Section
340A.101, Subdivision 7, or an unincorporated club
otherwise meeting that definition.
vii. The commissioner may not issue a permit to a club
holding an on-sale intoxicating liquor license.
B. Only Authorized to Permit the Consumption and Display.
A permit issued under this section authorizes the
establishment to permit the consumption and display of
intoxicating liquor on the premises. The permit does not
authorize the sale of intoxicating liquor.
C. Permit Expiration. Ail permits issued under this
section expire on March 31 of each year.
D. Council Consent Required. A permit issued under this
section is not effective until approved by the City
Council.
6
8. Caterer's Permit. The Commissioner may issue a caterer's
permit to a restaurant that holds an on-sale intoxicating liquor
license issued by any municipality. The holder of a caterer's
permit may sell intoxicating liquor as an incidental part of a
food service that serves prepared meals at a place other than the
premises for which the holder's on-sale intoxicating liquor
license is issued.
A. A caterer's permit is auxiliary to the primary on-sale
license held by the licensee.
B. The restrictions and regulations which apply to the
sale of intoxicating liquor on the licensed premises also
apply to the sale under the authority of a caterer's
permit, and any act that is prohibited on the licensed
premises is also prohibited when the licensee is operating
other than on the licensed premises under the authority of
the caterer's permit.
C. Any act, which if done on the licensed premises, would
be grounds for cancellation or suspension on the on-sale
licensee, is grounds for cancellation of both the on-sale
license and the caterer's permit if done when the permittee
is operating away from the licensed premises under the
authority of the caterer's permit.
D. The permittee shall notify prior to any catered event
the police chief of the city where the event will take
place, if the event will take place within the corporate
limits of the city.
800.08 - APPLICATIONS AND LICENSES UNDER THIS CHAPTER - PROCEDURE
AND ADMINISTRATION
1. Application. Ail applications shall be made at the office
of the City Clerk upon forms prescribed by the proper Department
of the State of Minnesota, together with additional information,
as the Council may desire. All questions asked, or information
required, in the application shall be answered fully and
completely by the applicant.
2. Investigation of On-Sale Licenses. The City shall on
initial application for an on-sale license or on an application
for a transfer of an existing license conduct a preliminary
background and financial investigation of the applicant. An
investigation may be required prior to renewal of an existing on-
sale license when the city council deems it in the public
interest.
A. No license may be issued, transferred, or renewed if
the results of the investigation show, to the satisfaction
of the Council, that issuance, transfer, or renewal would
not be in the public interest.
3. False Statements. It is unlawful for any applicant to
intentionally make a false statement or omission upon any
application form. Any false statement in such application or any
willful omission to state any information called for on such
application form shall, upon discovery of such falsehood, work an
automatic refusal of license or, if already issued, shall render
any license issued pursuant thereto void and of no effect to
protect the applicant from prosecution for violation of this
Chapter or any part thereof.
4. Application and Investigation Fees. Prior to consideration
of any application for a license, the applicant shall pay the
license fee and, if applicable, pay the investigation fee to
cover the costs of the City in processing the application and the
investigation thereof. The investigation fee is nonrefundable.
No investigation fee shall be required of an applicant for on-
sale 3.2 percent malt liquor license, off-sale 3.2 percent malt
liquor license, temporary beer license or for a temporary license
for the on-sale of intoxicating liquor. Failure to pay any
portion of a fee when due shall be cause for revocation.
5. Licensee Fees Pro-rated. For licenses issued and which
are to become effective other than on the first day of the
licensed year, the fee to be paid with the application shall be a
pro rata share of the annual license fee.
6. License Fee Refunds. License fees shall be refunded if an
application for a license is denied by the City Council, except
where rejection is for a willful misstatement in the license
application. A pro rata share of an annual license fee for a
retail license to sell intoxicating or 3.2 percent malt liquor,
either on-sale or off-sale may be refunded to the licensee or to
the licensee's estate if:
A. The business ceases to operate because of destruction
or damage.
B. The licensee dies.
C. The business ceases to be lawful for a reason other
than a license revocation.
D. The licensee ceases to carry on the licensed business
under the license.
7. Granting of License.
A. Issuing. If an application is approved by the City
Council, the City Clerk shall issue a license in the form
prescribed by the City or the proper Department of the
State of Minnesota, as the case may be, upon payment of the
license fee. Ail licenses shall expire on the last day of
June each year unless otherwise specified herein.
B. Premises Licensed. Unless expressly stated therein,
a license issued under the provisions of this Chapter shall
be valid only in the compact and contiguous building or
structure situated on the premises described in the
license, and all transactions relating to a sale under such
license must take place within such building or structure.
C. Transfer. Licenses may be transferred with the
consent of the Council.
D. Refusal and Termination. The Council may, in its sole
discretion and for any reasonable cause, refuse to grant
any application. No license shall be granted to a person
of questionable moral character or business reputation.
Licenses shall terminate only by expiration or revocation.
E. Delinquent Taxes And Charges. The Council in its
discretion, shall have the right to refuse to issue or
renew a license for the sale of intoxicating liquor on any
premises on which taxes, assessments or other financial
claims of the city are delinquent or unpaid. Delinquent or
unpaid taxes, assessments or other financial claims of the
city on the premises for which the license has been issued
shall be grounds for the revocation of an intoxicating
liquor license.
F. Duplicate Licenses. The City Clerk may issue
duplicates of all original licenses under this Chapter
without action by the Council upon licensee's affidavit
that the original has been lost and upon payment of a fee
of Two Dollars ($2.00) for issuance of the duplicate. All
duplicate licenses shall be clearly marked DUPLICATE.
G. Posting.
i. License Posting. Ail licensees shall
conspicuously post their licenses in their places of
business.
ii. Notice Posting. A premises licensed for the
retail sale of alcoholic beverages and a municipal
liquor store must post and maintain in a conspicuous
place within the licensed premises clearly visible to
consumers: one sign 14-1/2 inches wide by 8 inches
high as designed by the commissioners of health and
public safety, which incorporates the following
information:
a. the penalties of driving while under the
influence of alcohol;
b. penalties for serving alcoholic beverages
to a person who is obviously intoxicated or under
21 years of age; and
c. a warning statement regarding drinking
alcohol while pregnant.
H. Renewal Of Licenses. Applications for renewal of all
licenses under this Chapter shall be made at least sixty
(60) days prior to the date of expiration of the license
and shall contain such information as is required by the
City Clerk. The Council for good and sufficient cause may
waive this time requirement.
I. Fixing License Fees and Investigation Fees. Ail
license and investigation fees provided for in this
Chapter, including but not by way of limitation, fees for
on-sale and off-sale of beer, temporary on-sale of beer,
on-sale and temporary off-sale of liquor, and on-sale of
wine, shall be fixed and determined by the Council, adopted
by resolution, and uniformly enforced. The Council may
amend such fees by resolution. A copy of the resolution
shall be kept on file in the office of the City Clerk and
open to inspection during regular business hours.
a. Fee Increases. The City shall not increase the
fee for a liquor license except after notice and
hearing on the proposed increase. Notice of the
proposed increase must be mailed to all affected
licenses at least 30 days before the date set for the
hearing.
8. Persons Ineligible For License. No license may be granted to
or held by any person:
A. who is under 21 years of age;
B. upon whom it is impractical to conduct a background
and financial investigation due to the unavailability of
information;
C. who has had an intoxicating liquor or 3.2 percent malt
liquor license revoked within five years of the license
application, or to any person who at the time of the
violation owns any interest, whether as a holder of more
than five percent of the capital stock of a corporation
l0
licensee, as a partner or otherwise, in the premises or in
the business conducted thereon, or to a corporation,
partnership, association, enterprise, business, or firm in
which any such person is in any manner interested;
D. who is not of good moral character and repute; or
E. who has a direct or indirect interest in a
manufacturer, brewer, or wholesaler; or
F. who within five years of the license application, has
been convicted of a felony or a willful violation of a
federal or state law or local ordinance governing the
manufacture, sale, distribution, or possession for sale or
distribution of an alcoholic beverage.
9. Additional restrictions. As additional restrictions or
regulations on licenses under this chapter, and in addition to
all other grounds for revocation or suspension stated in the City
Code or state statute, the following shall also be grounds for
such action: (1) that the licensee suffered or permitted illegal
acts upon licensed premises, which acts were unrelated to the
sale of beer, wine or liquor; (2) that the licensee had knowledge
of such illegal acts upon licensed premises, but failed to report
the same to police; (3) that the licensee failed or refused to
cooperate fully with police in investigating such alleged illegal
acts upon licensed premises; or (4) that the activities of the
licensee created a serious danger to public health, safety or
welfare.
800.10 - Liability Insurance
1. Insurance Required. No beer, wine, or intoxicating liquor
license shall be issued, maintained, or renewed unless and until
the applicant has provided the proof of financial responsibility
with regard to liability imposed by Minnesota Statutes, Section
340A.801. The issuing authority must submit to the Commissioner
the applicant's proof of financial responsibility. The
requirement for proof of financial responsibility shall be
fulfilled by filing the following:
A. A certificate that there is in effect an insurance
policy or pool providing minimum coverages of 1.} One
Hundred Thousand Dollars ($100,000.00) because of bodily
injury to any one (1) person in any one (1) occurrence, and
Three Hundred Thousand Dollars ($300,000.00) because of
bodily injury to two (2) or more persons in any one (1)
occurrence, and in the amount of One Hundred Thousand
Dollars ($100,000.00) because of injury to or destruction
of property of others in any one (1) occurrence, and 2.}
($100,000.00) for loss of means of support of any one (1)
person in any one (1) occurrence, and, subject to the limit
of one (1) person, Three Hundred Thousand Dollars
($300,000.00) for loss of means of support of two (2) or
more persons in any one (1) occurrence (an annual aggregate
policy limit for dram shop liability of not less than Three
Hundred Thousand Dollars ($300,000.00) per policy may be
included in the Policy Provision); or
B. A bond of a surety company with minimum coverages as
provided in subparagraph A of this Section; or,
C. A certificate of the State Treasurer that the licensee
has deposited with him One Hundred Thousand Dollars
($100,000.00) in cash or securities which may legally be
purchased by savings banks or for trust funds having a
market value of One Hundred Thousand Dollars ($100,000.00).
2. Liability Insurance Policy Cancellation. A liability
insurance policy required by this section must provide that it
may not be canceled for:
A. any cause, except for nonpayment of premium, by either
the insured or the insurer unless the canceling party has
first given 30 days' notice in writing to the issuing
authority of intent to cancel the policy; and
B. nonpayment of premium unless the canceling party has
first given ten days' written notice of intention to cancel
to the municipality's City Clerk.
3. Insurance Not Required (Exception). This Section does not
apply to licensees who by affidavit establish that:
A. they are on-sale 3.2 percent malt liquor licensees
with sales of less than Twenty Five Thousand Dollars
($25,000.00) of 3.2 percent malt liquor for the preceding
year;
B. they are off-sale 3.2 percent malt liquor licensees
with sales of beer of less than Fifty Thousand Dollars
($50,000.00) of 3.2 percent malt liquor for the preceding
year;
C. they are holders of on-sale wine licenses with sales
of wine of less than Twenty Five Thousand Dollars
($25,000.00) for wine for the preceding year.
4. Documents Submitted to Cox~missioner. Ail proofs of
financial responsibility and exemption affidavits filed with the
City under this Section shall be submitted by the City to the
Minnesota Commissioner of Public Safety.
5. Revocation of License for Failure of Security. Any failure
of a licensee at any time to keep in full force and effect the
insurance required by this section shall be grounds for immediate
revocation of the license.
800.12 - CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS.
1. Ail corporations, partnerships, and associations must
designate an Operating Manager. The Operating Manager must be a
person working full-time at the licensed premises who is in
charge of day-to-day liquor sales.
2. Licenses issued to corporations shall be valid only so long
as there is no change in the officers or ownership interest of
the corporation, as defined in this Chapter, unless such change
is approved by the Council. The requirement concerning change in
officers does not apply to corporations whose stock is traded on
the New York or American Stock Exchanges.
3. Licenses issued to associations or partnerships shall be
valid only so long as there is no change in the partnership or
association, unless such change is approved by the Council.
4. Corporations, partnerships, or associations holding
licenses shall submit written notice to the city clerk of any
changes described herein on or before 30 days prior to the
effective date of any such change. In the case of a corporation,
the licensee shall notify the city clerk when a person not listed
in the application acquires an interest that, when combined with
that of a spouse, parent, brother, sister, or child exceeds 5
percent and shall give all information about said person as is
required by the city.
5. Corporations holding licenses shall submit written notice
to the City Clerk of any change in Operating Managers prior to
the effective date of such change. The written notice shall
designate the new Operating Manager. The new Operating Manager
shall be subject to the investigation authorized by this Chapter
if an investigation is requested in writing by the license
holder.
800.14 - CONDITIONAL LICENSES
Notwithstanding any provision of law to the contrary, the Council
may, upon a finding of the necessity therefore, place such
special conditions and restrictions, in addition to those stated
in this Chapter, upon any license as it, in its discretion, may
deem reasonable and justified.
800.16 - MANAGER OR AGENT
Before a license is issued under this Chapter to an individual
who is a nonresident of the City, or more than one individual
whether or not they are residents of the City, or to a
corporation, partnership, or association, the applicant or
applicants shall appoint in writing a natural person who is its
manager or agent. Such manager or agent shall, by the terms of
his written consent, (1) take full responsibility for the conduct
of the licensed premises, and (2) serve as agent for service of
notices and other process relating to the license. Such manager
or agent must be a person who, by reason of age, character,
reputation, and other attributes, could qualify individually as a
licensee. If such manager or agent ceases to act in such
capacity for the licensee without appointment of a successor, the
license issued pursuant to such appointment shall be subject to
revocation or suspension.
800.18 - INACTIVE LICENSE
The City Council may revoke the intoxicating liquor or 3.2
percent malt liquor license of any establishment proposed to be
newly constructed that is not under construction and exhibiting
satisfactory progress toward completion within 6 months from the
issuance of a license to such establishment, or any establishment
that ceases operation for a period of 6 months or longer. A
hearing shall be held to review the progress made by the
establishment toward opening or reopening the establishment and,
if satisfactory progress is not demonstrated, the Council may
revoke the license.
800.20 - REVOCATION, SUSPENSION OR FINE
A. Grounds for Suspension, Revocation and Fines. The
Council may suspend or revoke any license for the sale of
intoxicating or 3.2 percent malt liquor and may levy a fine
against the licensee upon finding that the licensee of any
license granted pursuant to this Section has:
1. failed to comply with any applicable
statute, regulation, or ordinance relating
to intoxicating liquor or 3.2 percent malt
liquor or to the conduct of the licensee's
business; or
2. been convicted of a violation of the
provisions of any law, ordinance or
regulation relating to the exercise of any
right granted by such license.
B. Revocation of erroneously issued license. Any license
issued to a person not entitled to receive the same under
this Chapter or any law of the State of Minnesota shall be
revoked by the Council at any time after notice and public
hearing.
800.22 - HEARING NOTICE
No suspension, fine, or revocation shall take effect until the
licensee or permit holder has been afforded an opportunity for a
hearing before the Council, a committee of the Council, or a
hearing examiner, as provided under 14.57 to 14.69 of the
Minnesota Administrative Procedure Act. The Council, in its
discretion, may determine the appropriate body to conduct the
hearing, and shall so name such body in the Council action by
which such hearing is called. Such hearing shall be conducted
upon written notice to the licensee served in person or by
certified mail not less than ten (10) nor more than thirty (30)
days prior to the hearing date, stating the time, place, and
purpose thereof.
800.24 - PRESUMPTIVE CIVIL PENALTIES
The purpose of this Section is to establish standards by which
the City Council may determine appropriate penalties, including
fines, suspensions, and revocations, for violations of this
Chapter or other laws and regulations. These standards shall
apply to all licenses granted under this Chapter. The penalties
set forth in this Section are presumed to be appropriate for
every case; however, the Council may deviate from these penalties
in any case in which the Council finds that there exist
substantial reasons for such deviation, such as, by way of
example and not of limitation, a licensee's efforts in
cooperation with the State or City to prevent the sale of alcohol
to minors. When deviating from these standards, the council
shall provide written findings that support the penalty selected.
1. Minimum Penalties for Violations. The following minimum
penalties shall be presumed appropriate.
A. Upon a finding that a licensee has committed a
violation of one of the following types, the license may be
revoked:
i. Commission of a felony related to the licensed
activity.
ii. Sale of alcoholic beverages while license is
under suspension.
iii. Sale of intoxicating liquor where license is only
for sale of 3.2 percent malt liquor.
B. The following violations shall presumptively be
penalized according to the Violation Grid below, subject to
the provisions of this section:
i. Sale of alcoholic beverages to an under-age
person.
ii. Sale of alcoholic beverages to an obviously
intoxicated person.
iii. After-hours sale/display/consumption of alcoholic
beverage.
iv. Illegal gambling on licensed premises.
v. Any other violation of this Chapter or of
federal, state or local law relating to or governing
the manufacture, sale, distribution or possession for
sale of liquor or any alcoholic beverage.
C. Violation Grid
NUMBER OF VIOLATIONS PRESUMPTIVE PENALTY
IN A LICENSED YEAR
First Violation $500 civil penalty
Second Violation 5 day suspension and $1,000
civil penalty to be paid before
the expiration of the
suspension
Third Violation 10 day suspension and $2,000
civil penalty to be paid before
the expiration of the
suspension
Fourth Violation License Revocation
D. Presumptive penalties shall coincide with the liquor
license period of one year (July 1 - June 30).
E. Other Penalties. Nothing in this Section shall
restrict or limit the authority of the council to suspend
up to sixty (60) days, revoke the license, impose a civil
fine not to exceed two thousand dollars ($2,000.00), to
impose conditions, or take any other action in accordance
with law; provided, that the license holder has been
afforded an opportunity for a hearing in the manner
provided in this Chapter.
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P. Return of revoked licenses. Whenever any license
issued for any purpose under this Chapter is revoked for
any reason whatever, the licensee shall forthwith return
such license to the City Clerk, and it shall be the duty of
the police officer or other person notifying such licensee
or person operating under such revoked license immediately
to remove or cause to be removed such license from the wall
or other place where such license shall be posted or
exhibited and return such license to the City Clerk.
800.26 - UNLAWFUL ACTS
1. Consumption in Public Places. No person shall consume
liquor on a public highway or public place.
2. Removal of Containers. It is unlawful for any on-sale
licensee to permit any glass, bottle, or other container
containing beer, wine, or liquor in any quantity, to remain upon
any table, bar, stool, or other place where customers are served
more than twenty (20) minutes after the hour when a sale thereof
can legally be made.
3. Closing. It is unlawful for any person other than an
on-sale licensee's bona fide employee actually engaged in the
performance of his duties to be on the premises licensed under
this Chapter more than thirty (30) minutes after the legal time
for making licensed sales; provided, however, that this
subdivision shall not apply to licensees, employees of licensees,
and patrons on licensed premises for the sole purpose of
preparing, serving, or consuming food or beverages other than
beer, wine, or liquor.
4. Lewd or Indecent Conduct Prohibited. No lewd or indecent
conduct shall be allowed or permitted on the licensed premises.
For the purposes herein, lewd or indecent conduct shall include
"nudity" and "sexual conduct" as those terms are defined in
Minnesota Statutes Section 617.292. Any licensee providing live
entertainment or dancing must conduct that activity entirely
within the licensed Premises.
800.28 - CONDUCT ON LICENSED PREMISES
Except as herein provided, every licensee under this Chapter
shall be responsible for the conduct of his place of business and
shall maintain conditions of sobriety and order therein.
800.30 - SALE BY EMPLOYEE
Any sale of beer, wine, or liquor in or from any premises
licensed under this Chapter by any employee authorized to make
such sale in or from such place is the act of the employer as
well as the person actually making the sale; and every such
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employer is liable to all of the penalties provided by law for
such sale equally with the Person actually making the sale.
800.32 - INSPECTION BY POLICE OFFICER
1. Ail premises licensed under this Chapter shall at all times
be open to inspection by any police officer to determine whether
or not this Chapter and all other laws are being observed. Ail
persons, as a condition to being issued such license, shall
consent to such inspection by such officers and without a warrant
for searches or seizures.
2. It is unlawful for any licensee or agent or employee of a
licensee to hinder or prevent a police officer from making such
inspection.
800.34 - LICENSE RESTRICTIONS AND REGULATIONS
1. No license shall be granted to a wholesaler or manufacturer
of liquor or to anyone holding a financial interest in such
manufacturer or wholesaler.
2. Every license shall be granted subject to the provisions
of this Ordinance and all other applicable provisions of the
City Code and other laws relating to the operation of the
licensed business.
3. No retail establishment licensed to sell alcoholic beverages
may keep, possess, or operate or permit the keeping, possession,
or operation on the licensed premises of dice or any gambling
device as defined in Minnesota Statute 349.30, or permit gambling
therein.
4. No licensee shall sell, offer for sale, or keep for sale
liquor in any original package which has been refilled or partly
refilled.
5. No licensee shall display liquor to the public during hours
when the sale of liquor is prohibited.
6. The Council may issue the number of licenses authorized by
statute or restrict such number from time to time as it may, in
its discretion, deem proper.
800.36 - HOURS AND DAYS OF LIQUOR SALES
1. 3.2 Percent Malt Liquor. No sale of 3.2 percent malt
liquor shall be made between 1:00 a.m. and 8:00 a.m. on the days
of Monday through Saturday, nor between 1:00 a.m. and 12:00 noon
on Sunday.
2. Intoxicating Liquor; On Sale. No sale of intoxicating
liquor for consumption on the licensed premises may be made
between 1:00 a.m. and 8:00 a.m. on the days of Monday through
Saturday, nor after 8:00 p.m. on December 24, nor between the
hours of 1:00 a.m. and 10:00 a.m. on Sundays.
3. Intoxicating Liquor; Sunday Sales; On Sale. Sales of
intoxicating liquor for consumption on the premises by hotels,
restaurants, bowling centers, or clubs, as herein defined, which
have on-sale licenses and which also have facilities for serving
not less than thirty (30) guests at one time, shall be permitted
between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on
Mondays in conjunction with the serving of food, provided that
the licensee is in conformance with the Minnesota Clean Air Act.
An establishment serving intoxicating liquor on Sunday must
obtain a Sunday license. A Sunday license shall be issued for a
one year period running from July 1 to June 30 and shall be
subject to all provisions of this Chapter.
4. Intoxicating Liquor; Off Sale. No sale of intoxicating
liquor may be made by an off-sale licensee on Sundays; before
8:00 a.m. on Monday through Saturday; after 10:00 p.m. on Monday
through Saturday; on Thanksgiving Day; on Christmas Day, December
25; or after 8:00 p.m. on Christmas Eve, December 24.
a. The Council may further limit the hours of sale of
alcoholic beverages.
800.38 - RESTRICTIONS INVOLVING UNDERAGE PERSONS
1. No licensee, his agent, or employee shall serve or dispense
upon the licensed premises any intoxicating or 3.2 percent malt
liquor to a person under the legal drinking age; nor shall such
licensee, or his agent or employee, permit any such person to be
delivered any such liquors.
2. No person under the legal age shall enter a licensed
premises for the purpose of purchasing or consuming any alcoholic
beverage. It is not unlawful for any person who has attained the
age of 18 years to enter licensed premises for the following
purposes:
A. to perform work for the establishment, including the
serving of alcoholic beverages;
B. to consume meals; and
C. to attend social functions that are held in a portion
of the establishment where liquor is not sold.
3. No person under the legal drinking age shall consume or
possess with the intent to consume or receive delivery of
intoxicating or 3.2 percent malt liquor except in the household
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of the minor's parent or guardian, and then only with the consent
of such parent or guardian.
4. No person under the legal drinking age shall possess any
intoxicating or 3.2 percent malt liquor. Possession of an
alcoholic beverage by a person under the legal drinking age at a
place other than the household of the parent or guardian is prima
facie evidence of intent to consume it at a place other than the
household of the person's parent or guardian.
5. MisreDresenting Age: No underage person shall misrepresent
the person's age for the purpose of obtaining intoxicating liquor
or 3.2 percent malt liquor. Nor shall any such person purchase,
attempt to purchase, consume, or have another person purchase for
the underage person any intoxicating liquor or 3.2 percent malt
liquor.
6. Proof of Age: It is unlawful for the Licensee to fail,
where doubt could exist, to require adequate proof of age of a
person upon licensed premises.
A. Identification Required: Proof of age for the purpose
of consuming, purchasing, or possessing liquor may be
established only by one of the following:
i. a valid driver's license or current Minnesota
identification card issued by Minnesota, another
state, or a province of Canada, and including the
photograph and date of birth of the licensed person;
ii. a valid military identification card issued by
the United States Department of Defense;
iii. a valid passport by the United States;
iv. in the case of a foreign national, by a valid
passport
800.40 - EMPLOYMENT OF MINORS
No person under 18 years of age may serve or sell intoxicating
liquor in a retail intoxicating liquor establishment.
800.42 - SPORTS OR CONVENTION FACILITIES LICENSE
The Council may authorize any holder of an on-sale liquor
license issued by the City or by an adjacent municipality
to sell liquor at any convention, banquet, conference, meeting,
or social affair conducted on the premises of a sports or
convention facility owned by the City or instrumentality thereof
having independent policy-making and appropriating authority and
located within the City. The licensee must be engaged to sell
liquor at such an event by the person or organization permitted
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to use the premises and may sell liquor only to persons attending
the event. The licensee shall not sell liquor to any person
attending or participating in any amateur athletic event. Such
sales may be limited to designated areas of the facility. Ail
such sales shall be subject to all laws relating thereto.
800.44 - ADDITIONAL CLUB LICENSEE RESTRICTIONS AND REGULATIONS
AND UNLAWFUL ACTS
1. Unlawful Acts. The following are in addition to all other
unlawful acts set forth in this Chapter relating to sales and
purchases of beer or liquor as the case may be.
A. Special club licenses shall be issued only to
incorporated clubs or to congressionally chartered veterans
organizations which have been in existence for at least
three years.
B. It is unlawful for any club licensee to serve beer or
liquor to any nonmember of the licensed club unless such
nonmember is a guest.
C. It is unlawful for any club licensee to hinder or
prevent a police officer from determining compliance with
this Section and Chapter and all other laws.
D. It is unlawful for any person to refuse, upon request
of a licensee or police officer, to provide information as
to whether he or she is a member, guest, or host member or
to give false, fraudulent, or misleading information in
response to such request.
800.46 - MUNICIPAL DISPENSARY
1. Establishment. A municipal dispensary is hereby established
to be operated within the City for the sale of liquor potable as
a beverage and containing more than 3.2 percent (3.2%) of alcohol
by weight. Such dispensary shall be at such place or places as
the Council shall determine and may be either leased or owned by
the City. It shall be in the charge of a person known as the
manager who shall have such assistants as may be necessary. All
employees, including the manager, shall hold their positions at
the pleasure of the Council.
2. Dispensary Fund. A liquor dispensary fund is hereby
created into which all revenues received from the operation of
the dispensary shall be paid and from which all operating
expenses shall be paid. Any surplus accumulating in this fund
may, from time to time, be transferred to the general fund by
resolution of the Council and expended for any municipal purpose.
800.48 - VIOLATION A MISDEMEANOR
2!
Every person violates a section, subdivision, paragraph, or
provision of this Chapter when he performs an act thereby
prohibited or declared unlawful or fails to act when such failure
is thereby prohibited or declared unlawful, and upon conviction
thereof shall be punished as for a misdemeanor except as
otherwise stated in specific provisions hereof.
Section 2. That this ordinance shall take effect upon its
adoption and publication as provided by law.
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