HomeMy WebLinkAbout301: Liquor Control Business Regulations
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SECTION 301
LIQUOR CONTROL
SUBSECTIONS:
301.100: PROVISIONS OF STATE LAW ADOPTED
301.200: DEFINITIONS
301.300: LICENSE TYPES
301.400: LICENSE REQUIRED AND PROHIBITED SALES
301.500: APPLICATION FOR LICENSE
301.600: DENIALS
301.700: RENEWALS
301.800: TERM
301.900: TRANSFERS
301.1000: NON-EMPLOYEES ON PREMISES
301.1100: DISPLAY
301.1200: RIGHT OF INSPECTION
301.1300: MOVEABLE PLACE OF BUSINESS
301.1400: OUTDOOR AREAS IN ON-SALE ESTABLISHMENTS
301.1500: PROHIBITIONS
301.1600: OBSCENITY AND NUDITY
301.1700: CIVIL VIOLATIONS AND PENALTIES
301.1800: HEARING ON DENIAL OR VIOLATIONS
301.1900: CRIMINAL VIOLATIONS AND PENALTIES
301.2000: AFFIRMATIVE DEFENSE
301.2100: COMPLIANCE CHECKS
301.2200: SEVERABILITY
301.100: Provisions Of State Law Adopted: The provisions of Minnesota Statutes,
Chapter 340A, relating to alcohol are adopted and made a part of this Section as if
fully set forth. Except to the extent the provisions of this Section are more restrictive,
the provisions of Minnesota Statutes, Chapter 340A, as may be 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 Section as if
set out in full. (Amd. Ord 105-21 – pub 9/17/05)
301.200: Definitions: The following words and terms when used in this Section shall have
the following meanings unless the context clearly indicates otherwise:
Alcohol-related product: Any food or beverage containing more than one-half of
one percent (0.5%) alcohol by volume, including but not limited to intoxicating liquor,
malt liquor, and wine.
Applicant: A person who completes or signs an application for a license to sell
alcohol-related products under this Section.
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Bowling Center. An establishment where the primary business is bowling, other
family recreational activities and equipment sales including, but not limited to,
bowling, arcade games, and billiards; and where food, beverage, and vending sales
are offered and served. A bowling center must have a minimum of 12 lanes of
bowling available and a minimum of 50% of the bowling center’s square footage
dedicated to bowling, which includes, but is not limited to, the bowling lanes,
approach to the bowling lanes, settee area, mechanical area for pin machines,
locker area for bowling balls, counter space for bowling business transactions, and
the bowling pro shop.
Brew pub. A brewer who also holds one or more retail on-sale licenses and who
manufactures fewer than 3,500 barrels of malt liquor in a year at any one licensed
premises, the entire production of which is solely for consumption on tap on any
licensed premises owned by the brewer as permitted by Minnesota Statutes §
340A.24, subdivision 1, or for off-sale from those licensed premises as permitted by
Minnesota Statutes § 340A.24, subdivision 2.
Brewer. A person who manufacturers malt liquor for sale.
Brewer Taproom. An establishment located on the premises of or adjacent to one
brewery location owned by a brewer licensed under Minnesota Statutes §
340A.301, subdivision 6, clause (c), (i), or (j) where the on-sale and consumption of
malt liquor produced by the brewer is permitted pursuant to Minnesota Statutes §
340A.26.
Club. An incorporated organization organized under the laws 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, each of
which: (1) has more than 30 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.
Cocktail Room. An establishment on the premises of or adjacent to one distillery
location owned by a distiller, where the on-sale of distilled spirits produced by the
distiller is permitted pursuant to Minnesota Statutes § 340A.22.
Distilled Spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey,
rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures
thereof, for nonindustrial use.
Distiller. A person who manufacturers distilled spirits for sale.
Exclusive Liquor Store: An establishment used exclusively for the sale of those
items authorized in Minnesota Statutes § 340A.412, Subd. 14.
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On-Site Food Service: Regular service of meals prepared on the premises and
served on-site at tables to the general public. Prepackaged snack foods do not
qualify as on-site food service.
Growler. Malt liquor sold off-sale by a small brewer or brew pub, which has been
produced and packaged by the brewer in 64-ounce containers commonly known as
growlers or in 750 milliliter bottles.
Hotel. Any establishment having a resident proprietor or manager where: (i) in
consideration of payment food and lodging are regularly furnished; (ii) which
maintains for the use of its guests not less than 25 guest rooms with bedding and
other usual, suitable and necessary furnishings in each room; (iii)_which has a main
entrance with a suitable lobby, desk and office for the registration of its guests on
the ground floor; (iv) which employs an adequate staff to provide suitable and usual
service; and (v) which maintains under the same management and control as the
rest of the establishment and has, as an integral part thereof, a dining room with
appropriate facilities for seating not less than 30 guests at one time, where the
general public is, in consideration of payment served meals at tables.
Intoxicating Liquor: Ethyl alcohol, distilled, fermented, spirituous, vinous, and malt
beverages containing more than three and two-tenths percent (3.2%) of alcohol by
weight.
Licensed Premises: The premises described in the approved license application
under this Section. In the case of on-sale licenses located on a golf course, licensed
premises means the entire golf course except for areas where motor vehicles are
regularly parked or operated.
License Holder: An applicant who, pursuant to an approved application, holds a
valid, current, unexpired license to sell alcohol-related products under this
Section, which has neither been revoked nor suspended. For the purposes of this
Section, license holder also includes owners, agents and employees of the license
holder.
Manufacturer. Any person who, by any process of manufacturing, fermenting,
brewing, distilling, refining, rectifying, blending, or by the combination of different
materials, prepares or produces alcohol-related products for sale.
Malt Liquor. Any beer, ale, or other beverage made from malt by fermentation and
containing not less than one half of one percent alcohol by volume.
3.2% Malt Liquor. Malt liquor containing not less than one half of one percent
alcohol by volume nor more than 3.2% alcohol by weight.
Microdistillery. A distillery operated within the state producing premium, distilled
spirits in total quantity not to exceed 40,000 proof gallons in a calendar year, which
distillery is licensed under Minnesota Statutes Chapter 340A.
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Off-Sale: The sale of alcohol-related products in original packages for consumption
off the licensed premises only.
On-Sale: The sale of alcohol-related products for consumption on the licensed
premises only.
Original Package. The bottle or sealed container in which the alcohol-related
product is placed by the manufacturer.
Person: One (1) or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a
limited liability company; a trust; a political subdivision of the State; or any other
entity.
Restaurant. An establishment, other than a hotel, under the control of a single
proprietor or manager, where on-site food service is provided to the general public,
and having a minimum seating capacity of 20 guests
Small Brewer. A brewer licensed under Minnesota Statutes § 340A.301,
subdivision 6, clause (c), (i), or (j) who also holds a retail license to sell off-sale malt
liquor at its licensed premises which has been produced and packaged by the
brewer where the off-sale of malt liquor produced by the brewer is permitted
pursuant to Minnesota Statutes § 340A.28.
Wholesaler. Any person who is engaged in the business of selling alcohol-related
products to retail dealers.
Wine. 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 of one percent nor more than 24% alcohol
by volume for nonindustrial use.
301.300: License Types: The following types of licenses may be available from the City for
the sale of alcohol-related products:
301.301 On-Sale Intoxicating Liquor License: A license for on-sale of intoxicating liquor may
be issued only to hotels, restaurants, bowling centers, clubs or congressionally
chartered veterans organizations. A license may be issued to a congressionally
chartered veterans’ organization only if it has been in existence for at least three (3)
years and intoxicating liquor sales will only be to members and bona fide guests.
On-sale intoxicating liquor licenses are subject to the following conditions:
(1) Where the licensed premises is a free standing building, the building (exclusive of
land) shall have a minimum valuation of $100,000 as established by the Scott
County Assessors determination of fair market value;
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(2) No on-sale of intoxicating liquor may be made after 2 a.m. or before 8 a.m. Monday
through Saturday. No on-sale of intoxicating liquor may be made after 2 a.m. on
Sunday without an on-sale Sunday liquor license.
301.302 Off-Sale Intoxicating Liquor License: A license for off-sale of intoxicating liquor may
be issued only to exclusive liquor stores. No off-sale of intoxicating liquor may be
made before 8 a.m. or after 10 p.m. Monday through Saturday, on Thanksgiving
Day, on Christmas Day, or after 8 p.m. on Christmas Eve. No off-sale of intoxicating
liquor may be made on Sundays.
301.303 On-Sale 3.2 Percent Malt Liquor. A license for on-sale of 3.2 percent malt liquor
may be issued. No sale of 3.2 percent malt liquor may be made after 2 a.m. or
before 8 a.m. Monday through Saturday, nor between 2 a.m. and 10 a.m. on
Sunday.
301.304 Off-Sale 3.2 Percent Malt Liquor License. A license for off-sale of 3.2 percent malt
liquor may be issued. No sale of 3.2 percent malt liquor may be made after 2 a.m.
or before 8 a.m. Monday through Saturday, nor between 2 a.m. and 10 a.m. on
Sunday.
301.305 On-Sale Malt Liquor Brewer Taproom License. A license for on-sale of malt liquor
may be issued to brewer taprooms. On-sale malt liquor brewer taproom licenses
are subject to all conditions and restrictions contained in Minnesota Statutes §
340A.26. No on-sale of malt liquor may be made after 2 a.m. or before 8 a.m.
Monday through Saturday. No on-sale of malt liquor may be made after 2 a.m. on
Sunday without an on-sale Sunday liquor license.
301.306 Off-Sale Malt Liquor Small Brewer (Growler) License. A license for off-sale of malt
liquor may be issued to small brewers. Off-sale malt liquor small brewer licenses
are subject to all conditions and restrictions contained in Minnesota Statutes §§
340A.28 and 340A.285. No off-sale of malt liquor may be made before 8 a.m. or
after 10 p.m. Monday through Saturday, on Thanksgiving Day, on Christmas Day,
or after 8 p.m. on Christmas Eve. No off-sale of malt liquor may be made on
Sundays, except that malt liquor in growlers only may be sold off-sale on Sundays
between the hours of 8 a.m. and 10 p.m.
301.307 On-Sale Brew Pub License. A license for on-sale of intoxicating liquor or 3.2 malt
liquor may be issued to brew pubs for a restaurant operated in the place of
manufacture. On-sale brew pub licenses are subject to all conditions and
restrictions contained in Minnesota Statutes § 340A.24. No on-sale of intoxicating
liquor may be made after 2 a.m. or before 8 a.m. Monday through Saturday. No
on-sale of intoxicating liquor may be made after 2 a.m. on Sunday without an on-
sale Sunday liquor license. No sale of 3.2 percent malt liquor may be made after 2
a.m. or before 8 a.m. Monday through Saturday, nor between 2 a.m. and 10 a.m.
on Sunday.
301.308 Off-Sale Malt Liquor Brew Pub (Growler) License. A license for off-sale of malt
liquor may be issued to brew pubs for a restaurant operated in the place of
manufacture. Off-sale malt liquor brew pub licenses are subject to all conditions
and restrictions contained in Minnesota Statutes §§ 340A.24 and 340A.285. No off-
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sale of malt liquor may be made before 8 a.m. or after 10 p.m. Monday through
Saturday, on Thanksgiving Day, on Christmas Day, or after 8 p.m. on Christmas
Eve. No off-sale of malt liquor may be made or at any time on Sundays, except that
malt liquor in growlers only may be sold off-sale on Sundays between the hours of
8 a.m. and 10 p.m.
301.309 On-Sale Wine License. A license for on-sale of wine may be issued to restaurants
having facilities for seating and providing on-site food service for at least twenty-five
(25) guests at one time. Notwithstanding the prohibition contained in subsection
301.400, the holder of an on-sale wine license who also holds an on-sale 3.2
percent malt liquor license may sell malt liquor containing in excess of 3.2% of
alcohol by weight at on-sale without an additional license. No on-sale of wine may
be made after 2 a.m. or before 8 a.m. Monday through Sunday.
301.310 On-Sale Cocktail Room License. A license for on-sale of distilled spirits may be
issued to a cocktail room. Cocktail room licenses are subject to all conditions and
restrictions contained in Minnesota Statutes § 340A.22. No on-sale of intoxicating
liquor may be made after 2 a.m. or before 8 a.m. Monday through Saturday. No
on-sale of intoxicating liquor may be made after 2 a.m. on Sunday.
301.311 Off-Sale Microdistillery License. A license for off-sale of distilled spirits may be
issued to a microdistillery. Microdistillery off-sale licenses are subject to all
conditions and restrictions contained in Minnesota Statutes § 340A.22. No off-sale
of intoxicating liquor may be made before 8 a.m. or after 10 p.m. Monday through
Saturday, on Thanksgiving Day, on Christmas Day, or after 8 p.m. on Christmas
Eve. No off-sale of intoxicating liquor may be made on Sundays.
301.312 On-Sale Sunday License. A license for on-sale of intoxicating liquor on Sunday may
be issued to a hotel, bowling center, club, or restaurant, to which an on-sale
intoxicating liquor license has been issued. Such licenses may permit the sale of
alcohol-related products to be consumed on the premises between the hours of
8:00 a.m. on Sunday and 2:00 a.m. on Monday in conjunction with on-site food
service provided that the license holder is in conformance with the Minnesota Clean
Air Act and provided a public hearing is held prior to the issuance of the license. No
Sunday license is needed for on-sale of 3.2 percent malt liquor or on-sale of wine.
(Amd. Ord. 04-29, pub. 10/23/05)
301.313 Temporary On-Sale Intoxicating Liquor License. A license for temporary on-sale of
intoxicating liquor in connection with a social event within the City sponsored by the
license holder may be issued to: (1) a club or charitable, religious or nonprofit
organization, comprised of at least 35 members, in existence for at least three (3)
years, or (2) a political committee registered under Minn. Stat. §10A.14.
(1) The license may authorize the sale of alcohol-related products for not more than
four (4) consecutive days, and may authorize sales on premises other than
premises the license holder owns or permanently occupies. The license may
provide that the license holder may contract for catering services with the holder of
a full-year on-sale license issued by the City. The licenses are subject to the terms,
including license fee, imposed by the City. In addition to any terms and conditions
that the City Council may impose as a condition of approval for a temporary on-sale
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license, the licenses issued under this subsection are subject to all laws and
ordinances governing the sale of alcohol-related products except Minnesota Statute
§ 340A.409 and §340A.504, subd. 3, paragraph (d). Temporary licenses must be
approved by the Minnesota Commissioner of Public Safety before they become
valid.
(2) The City may not issue more than three (3) four-day temporary licenses, four (4)
three-day licenses, six (6) two-day licenses, or twelve (12) one-day licenses, in any
combination not to exceed 12 days per year to any one organization or for any one
location. No more than one temporary license may be issued to any one
organization or for any one location within any 30-day period, unless the licenses
are issued in connection with an official community festival, designated as such by
the City.
301.314 Temporary On-Sale Malt Liquor Licenses. A license for temporary on-sale of 3.2
percent malt liquor may be issued to a club or charitable, religious, or nonprofit
organization. (Amd. Ord. 105-21 – pub 9/17/05)
301.315 Consumption and Display Permit. A permit to directly or indirectly allow the
consumption and display of alcoholic beverages or knowingly serve any liquid for
the purpose of mixing with intoxicating liquor. For purposes of this Section 301 a
Consumption and Display Permit shall be considered a “license” and an applicant
for and holder of a Consumption and Display Permit shall comply with all
procedures, rules and regulations of this Section 301.
(1) A Consumption and Display Permit must be approved by the City and then issued
by the Minnesota Commissioner of Public Safety. In order to obtain City approval,
an application shall be filed with the City in the same manner as an application is
filed for a liquor license under this Section 301.
(2) A Consumption and Display Permit may only be issued to an applicant who (i) has
not, within five years prior to the application, been convicted of a felony or of
violating any provision of this chapter or rule adopted under this chapter; and (ii)
qualifies as one of the following: a restaurant; a hotel; an establishment licensed for
the sale of 3.2 percent malt liquor; a resort as defined in Minn. Stat. section 157.15;
a club as defined in Minn. Stat. section 340A.101, subdivision 7, or an
unincorporated club otherwise meeting that definition; or a bed and breakfast facility
as defined in Minn. Stat. section 340A.4011, subdivision 1.
(Ord. Amd. 118-17, publ. 03/03/2018)
301.400: License Required and Prohibited Sales:
301.401 License. No person shall directly or indirectly, on any pretense or by any device,
sell, barter, keep for sale, charge for possession or otherwise dispose of any
alcohol-related products at any place in the City without first obtaining a license as
provided by this Section and paying the accompanying license fee. This subsection
does not apply to (1) to possession or handling for sale or otherwise of sacramental
wine or to any representative of any religious order or for use in connection with a
legitimate religious ceremony; (2) to such potable liquors as are prescribed by
licensed physicians and dentists for therapeutic purposes; (3) to industrial alcohol
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and its compounds not prepared or used for beverage purposes; or (4) to sales by
manufacturers to wholesalers duly licensed as such by the State of Minnesota and
to sales by wholesalers to persons holding on-sale or off-sale licenses from the City.
301.402 Prohibited Sales. No person shall sell, offer for sale, give away, furnish, or otherwise
deliver any alcohol-related product:
(1) To any person under the age of twenty-one (21) years.
(2) By any means, or to any other person, prohibited by Federal, State, or local law,
ordinance provision, or other regulation.
301.403 Instructional Program. Other than temporary licenses issued under subsections
301.313 and 301.314, no person shall be issued a license or renewal license to sell
alcohol-related products unless the applicant has a program for instructing all
employees in the legal requirements pertaining to the sale of alcohol-related
products, including, but not limited to, reviewing the law on the sale of alcohol-
related products, providing information on the health risks of using alcohol-related
products, and requiring employees to request identification where age may be in
doubt. The training shall include information that the sale of alcohol-related products
to minors is illegal, what proof of age is legally acceptable, and that a sale to a minor
can subject the applicant or license holder and their employees to criminal and/or
civil liability. At the request of the City, a license holder or applicant shall provide
copies of written and other materials used in connection with the program. No
license shall be issued unless the applicant or license holder signs a City form
attesting that each employee of the applicant or license holder has received training
and instruction on the sale of alcohol-related products and the date such training
occurred. Any new employee of the license holder who begins employment during
the license period shall participate in the training prior to serving or selling any
alcohol-related product.
301.500: Application for and issuance of License:
301.501 Application: An application for a license to sell alcohol-related products shall be
made on a form prescribed by the proper Department of the State of Minnesota,
together with such additional information as the City may desire. If State forms are
not prescribed, then applications shall be made on forms provided by the City.
Information required may vary with the type of entity making application. All
questions asked or information required by the application forms shall be answered
fully and completely by the applicant. No person shall make a false statement in an
application. The completed application along with the documents described herein,
shall be submitted to the City Manager or designee for approval by the City Council.
301.502 Documents to Accompany Application. At the time of application, the following shall
be provided by the applicant:
(1) License Fee. Each application for a license shall include proof of payment of the
license fee. The license fee shall be determined by the City Council and set forth in
the City Fee Schedule. License fees which are in excess of $500.00 and are issued
for less than a full year may be prorated on a monthly basis based on the date of
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issuance of the license. The license fee is non-refundable except as provided in
Minnesota Statute § 340A.408, Subd. 5.
(2) Investigation Fee. Applications for an initial license or transfer of an existing license
shall also include payment of an investigation fee of Five Hundred ($500.00) dollars.
If an investigation outside of the State of Minnesota is required, the applicant shall
pay the $500 fee plus all actual costs of the out of State investigation, prior to
consideration of the license application by the City Council. The investigation fee is
non-refundable. Applications for the following licenses do not require an
investigation fee:
(i) temporary licenses issued under subsections 301.313 and 301.314;
(ii) off-sale malt liquor small brewer license issued under subsection 301.306
provided that concurrent with the application, applicant pays an investigation
fee for an on-sale malt liquor brewer taproom license under subsection 301.305;
(iii) off-sale malt liquor brew pub license issued under subsection 301.308
provided that concurrent with the application, applicant pays an investigation
fee for an on-sale brew pub license under subsection 301.307;
(iv) off-sale microdistillery license issued under subsection 301.311 provided
that concurrent with the application, applicant pays an investigation fee for an
on-sale cocktail room license subsection 301.310;
(v) on-sale Sunday license issued under subsection 301.312.
(3) Legal Documents. All applications shall be accompanied by copies of each
summons received by the applicant under Minnesota Statute § 340A.802 during the
preceding year.
(4) General Liability Insurance. Licenses shall be issued, maintained, or renewed
only if the applicant or license holder demonstrates financial responsibility as
defined in Minnesota Statute § 340A.409 for the applicant’s liability under Minnesota
Statute § 340A.801 (“Dram shop liability”). Such proof of financial responsibility shall
be filed with the Minnesota Commissioner of Public Safety and a copy filed with the
City with the application for a license. The sale of alcohol-related products without
having on file with the City effective proof of financial responsibility is subject to the
provisions of subsection 301.1704. Proof of financial responsibility shall be given
by: (i) a certificate that there is in effect for the license period an insurance policy or
pool providing at least $500,000 of coverage because of bodily injury to any one
person in any one occurrence, $1,000,000 because of bodily injury to two or more
persons in any one occurrence, $500,000 because of injury to or destruction of
property of others in any one occurrence, $500,000 for loss of means of support of
any one person in any one occurrence, and $1,000,000.00 for loss of means of
support of two or more persons in any one occurrence; (ii) a bond of a surety
company with minimum coverage as provided in (i); or (iii) a certificate of the State
Treasurer that the license holder has deposited with him $100,000.00 in cash or
securities which may legally be purchased by savings bank or trust funds having a
market value of $100,000.00. The proof of financial responsibility shall provide that
the insurer or holder will provide the City with thirty (30) days’ notice prior to the
termination or any change in coverage. Proof of financial responsibility is not
required for licensees identified by Minnesota Statute § 340A.409, Subd. 4;
provided that the required affidavit is provided by the applicant prior to issuance of
the license.
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(5) Workers’ Compensation Insurance. The policy limits for workers’ compensation
insurance shall be as provided for by state law.
(6) Partial Refund. In circumstances where an existing license holder discontinues its
license before the expiration date and a new license is issued for the same location
for the remainder of the license period, a pro rata refund of the discontinued license
for the remainder of the license term may be granted at the discretion of the City
Council subject to the following:
a. The request for refund shall be made during the term for which the discontinued
license was issued.
b. A refund will be considered only for license fees not for investigation fees.
c. If the pro rata refund is less than $1,000 no refund shall be issued.
d. An administrative fee of $400 shall be charged for every refund.
e. The reason the license was discontinued is a result of the issuance of a new
license at the same location.
f. License discontinuation is not the result of a violation of this Section.
(Ord 107-04 – adopted 1/27/07)
(7) Corporate Applicants and License Holders. A corporate applicant, at the time
of application, shall furnish the City with a list of all persons that have an interest in
such corporation and the extent of such interest. The list shall name all shareholders
holding more than five percent (5%) of all issued and outstanding stock of the
corporation and show the number of shares held by each, either individually or
beneficially for others. It is the duty of each corporate license holder to notify the
City in writing of any change in legal ownership or beneficial interest in such
corporation or in such shares. The notice of such change must be given within ten
(10) days of its occurrence. Any change in the ownership or beneficial interest in
the shares entitled to be voted at a meeting of the shareholders of a corporate
license holder, which results in the change of voting control of the corporation by
the persons owning the shares therein, shall be deemed equivalent to a transfer of
the license issued to the corporation. The Council or any officer of the City
designated by it may at any reasonable time examine the stock transfer records
and minute books of any corporate license holder in order to verify and identify the
shareholders, and the Council or its designated officer may examine the business
records of any other license holder to the extent necessary to disclose the interest
which persons other than the license holder have in the licensed business.
301.503 Review. If the City Manager determines that an application is incomplete or without
supporting documentation, he or she shall return the application to the applicant
with notice of the deficiencies.
If the City Manager determines the application is complete, he or she shall refer the
application to the Chief of Police who shall institute such investigation of the
applicant and the contents of the application as is deemed necessary including, but
not limited to, a criminal history check with the Bureau of Criminal Apprehension.
The Chief of Police shall provide a report of the investigation to the City Manager.
The City Manager shall review the application, supporting documents, and the result
of a background investigation, and prepare a report to the City Council,
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recommending: (i) approval; (ii) approval with conditions; (iii) denial; or (iv) delay of
any action for such reasonable period of time to permit the City to complete any
additional investigation of the application or the applicant deemed necessary. The
report shall include the basis for the recommendation and shall indicate whether the
licensed premises will be subject to a Conditional Use Permit.
301.504 Manager or Agent. Before a license is issued under this Section to an individual
who is a non-resident of the City, to more than one individual whether or not they
are residents of the City, or to a corporation, partnership, company 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 a 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 license holder. If such manager or agent
ceases to act in such capacity for the license holder without appointment of a
successor, the license issued pursuant to such appointment shall be subject to
revocation or suspension.
301.505 Action. After the investigation and review, the Council shall grant or deny the
issuance of the license. No license shall become effective until approved by the
Commissioner of Public Safety if required by Minnesota Statute Chapter 340A. The
City Council may impose reasonable conditions on the issuance of any license. If
the licensed premises is subject to a Conditional Use Permit, the conditions
applicable to the Conditional Use Permit are automatically incorporated in and apply
to the license. If the City Council, and the Commissioner of Public Safety if required,
approve issuance of the license, a license shall be issued to the applicant. If the
City Council denies issuance of the license, a written notice of denial along with the
reasons for the denial shall be sent to the applicant at the address provided on the
application. If a license is mistakenly issued, it shall be revoked by the City Manager
upon the discovery of the mistake.
(Ord. Amd. 111-05, publ. 06/11/11)
301.506 Duplicate licenses. Duplicates of all original licenses under this Section may be
issued by the City Clerk without action by the Council
301.600: Denials: The following shall be grounds for denying the issuance, transfer, or
renewal of a license under this Section. The following list is not exhaustive or
exclusive:
(1) The applicant is under the age of twenty-one (21) years.
(2) The applicant has within the past five (5) years violated any provision of this Section,
City Code, or a Federal, State, or local law, ordinance provision, or other regulation
relating to alcohol-related products.
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(3) The applicant or license holder, including any person who holds an interest of more
than five percent (5%) of an applicant or license holder, has had a license to sell
alcohol-related products revoked within the preceding five (5) years of the date of
application.
(4) The applicant fails to provide any information required on the application, or
provides false or misleading information.
(5) The applicant or license holder has outstanding fines, penalties or property taxes
owed to the City, County or State.
(6) The applicant is directly or indirectly the owner of any current license issued under
this Section.
(7) The proposed licensed premises is ineligible for a license under state law or the City
Code.
(8) Taxes, assessments, fines or other financial claims of the City, County or State are
delinquent and unpaid as to the premises to be licensed. Notwithstanding the
foregoing, if the delinquent taxes, assessments, fines or financial claims are against
a landowner, and the applicant is a tenant of landowner and has no financial interest
in landowner, then the City Council may, in its discretion, but shall not be required
to, grant a license to an applicant so long as the applicant is not delinquent on any
taxes, assessments, fines or financial claims as set forth herein.
(9) The premises to be licensed is located within 300 feet of any church or school;
except that in the City Council’s discretion and with the written consent of the church
and/or school, temporary on-sale malt liquor licenses and temporary on-sale
intoxicating liquor licenses may be issued for: church property, property within 300
feet of any church, or property within 300 feet of any school. No license shall be
issued for school property.
(10) It is impractical to conduct a background or financial investigation due to the
unavailability of information or the results of the background or financial
investigation show that issuance would not be in the public interest.
(11) The applicant is not of good moral character and repute.
(12) The applicant or license holder has a direct or indirect interest in a manufacturer,
brewer or wholesaler, except where the application is for a cocktail room,
microdistillery, brew pub, brewer taproom, or small brewer, as defined in this
Section.
301.700: RENEWALS: The renewal of a license under this Section shall be handled in the
same manner as the original application and issuance. Any person intending to
apply to renew a license shall submit a renewal application, on a form provided by
the City, and pay the investigation and license fee. A license renewal application
shall be submitted to the City no later than forty-five (45) days prior to the expiration
of the license. The issuance of a license under this Section is a privilege and not an
absolute right and shall not entitle the holder to an automatic renewal of the license.
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A late fee of Fifty dollars ($50.00) shall be imposed on any license holder who fails
to submit a timely renewal application.
301.800: Term: All licenses shall expire annually on June 30.
301.900: Transfers: All licenses issued under this Section shall be valid only on the licensed
premises and only for the person to whom the license was issued. No transfer of
any license to another location or person shall be valid without the prior approval of
the City Council. Any sale or transfer of stock of a corporate license holder is
deemed a transfer of the license, which, without Council approval, is grounds for
revocation of the license.
301.1000: Non-Employees on Premises: A license holder shall not allow non-employees
on the licensed premises from twenty (20) minutes after the sale of alcohol-related
products is prohibited until the sale is again permitted except as hereinafter
provided. Non-employees are allowed on the on-sale premises of a hotel,
restaurant, club, or bowling center during normal hours of operation. During the
hours that the sale of alcohol-related products is prohibited, there may be no sale,
consumption, or display of alcohol-related products. The license holder shall close
off all access to alcohol-related products or any bar area in a manner approved by
the City.
301.1100: Display: Every license shall be conspicuously posted at the licensed premises and
shall be exhibited to any person upon request.
301.1200: Right of Inspection: Any Prior Lake police officer, City employee, or other
appropriate officer shall have the unqualified right to enter, inspect, and search the
licensed premises of any license holder hereunder without a warrant, during
business hours or when owners, managers, or other employees are located on the
licensed premises.
The business records of the license holder, including Federal and State tax returns,
shall be available for inspection by the City at all reasonable times upon written
request.
301.1300: Moveable Place of Business: No license of any type shall be issued for any
business whose physical location is not permanent or is capable of being moved or
changed, including but not limited to kiosks or trailers. Moveable place of business
does not include golf carts when used on golf course property or any moveable
structure when specifically permitted by the City Council under subsection
301.1400.
301.1400: Outdoor Areas in On-Sale Establishments: All outdoor areas in on-sale
licensed establishments are subject to the following limitations:
(1) Every outdoor area must be approved as part of the original licensed premises or
by the granting of an application for expansion of the license premises. No sales
may be made nor may alcohol-related products be consumed in parking lots or any
portion of any property without a permanent or temporary license from the City.
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(2) Regardless of the type of license issued to an outdoor area, the City Council may
regulate and restrict the hours, days, nature, volume, and other aspects of alcohol-
related product sales and entertainment in any outdoor area to protect the safety
and welfare of residents, businesses and other uses near the licensed premises.
(3) The City Council may authorize temporary entertainment not otherwise allowed
under the license in an outdoor area by permit for special events pursuant to City
Code Section 307.
(4) Customers shall not be allowed to occupy the outdoor area in numbers greater than
the seating capacity permits.
(5) No bar shall be located in an outdoor area except a service bar for the exclusive
use of employees of the license holder.
(6) The license holder shall provide on-site food service to the outdoor area during all
hours of operation of the outdoor area,
(7) Access to and from the outdoor area shall be through the licensed premises or
through property controlled by the license holder.
(8) No sales of alcohol-related products may be made on any public or private property
open to the public for passageway purposes except as specifically authorized by
the City Council. The City Council may regulate and restrict the hours, days, nature,
volume and other aspects of sales in these areas, and may require the license
holder to procure insurance naming the City as an additional insured to protect the
safety and welfare of residents, businesses and other uses near the licensed
premises.
301.1500: Obscenity and Nudity: No license holder shall:
(1) Employ or use any person in the sale or service of alcohol-related products or as
employees while such person is unclothed or in such attire, costume or clothing as
to expose to view any portion of the pubic hair, anus, cleft of the buttocks, male or
female genitals, or the female breast below the top of the areola;
(2) Employ or use the services of any wait person while such person is unclothed or in
such attire, costume or clothing as described in paragraph (1) above.
(3) Encourage or permit any person on the licensed premises to touch, caress or fondle
the breast, buttocks, anus or genitals of any other person;
(4) Permit any employee or person to wear or use any device or covering exposed to
view, which simulates the breast, genitals, anus, pubic hair or any portion thereof.
301.1600: Prohibitions: No license holder, or its owners, agents, and/or employees shall:
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(1) Knowingly permit the licensed premises or any room in those premises or any
adjoining building directly under the license holder’s control to be used by
prostitutes.
(2) Knowingly permit the sale, possession or consumption of controlled substances on
the licensed premises in violation of federal, state or local law nor shall any license
holder permit consumption of alcohol-related products on the licensed premises
more than twenty (20) minutes after the hour when a sale thereof can be legally
made.
(3) Except for charitable gambling as defined and permitted under state law, gambling
and gambling devices are not permitted on licensed premises. State lottery tickets
may be purchased and sold within licensed premises as authorized by the director
of the state lottery.
(4) Employ or use any person in the sale or service of alcohol-related products or as
employees for the purpose of staging any nature of “lingerie show” in or upon the
licensed premises while such person is unclothed or in such attire, costume or
clothing as to expose to view any portion of the female breast below the top of the
areola or of any portion of the pubic hair, anus, cleft of the buttocks, or genitals.
(5) Fail to comply with the conditions of a Conditional Use Permit whether the
conditions are set out in City Code or were imposed by the Planning Commission
or City Council upon approval of the Conditional Use Permit.
(6) Violate any portion of this Section.
(7) Violate any applicable Federal, State or local, civil or criminal statute, ordinance, or
regulation pertaining to alcohol-related products.
(8) Violate a condition under which the license was granted, including, but not limited
to, the timely payment of real estate taxes or other charges.
(9) Violate a Federal, State or local law regulating the sale of alcohol-related products
or controlled substances.
(10) Create a public nuisances, as described in the City Code, on the premises or in the
surrounding area.
(11) Suffer or permit illegal acts upon the licensed premises or on property owned,
controlled by, or adjacent to the licensed premises, whether related or unrelated to
the sale of alcohol-related products.
(12) Have knowledge of illegal acts upon or attributable to the licensed premises, but fail
to report the same to the police.
(13) Fail to comply with a condition of the license imposed by the City Council or fail to
meet a deadline for any such condition.
(14) Commit any act which would allow for denial of a license under this Section.
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301.1700: Civil Penalties; revocation and suspension:
301.1701 Violations. Any violation of this Section shall be considered an act of the license
holder for purposes of imposing a civil penalty, license suspension, or revocation.
Each violation, and every day in which a violation occurs or continues, shall
constitute a separate offense. The license holder shall be responsible for the
conduct of its agents and employees on the licensed premises. A civil penalty,
revocation, and/or suspension may be pursued and imposed regardless of any
criminal adjudication.
301.1702 Notice of Violation. The Police Department shall inform the City Manager of the
suspected violation. The City Manager shall send to the license holder a written
notice of the suspected violation. The notice shall advise the license holder of the
penalty and the license holder’s right to request a hearing regarding the violation
pursuant to subsection 301.1800.
301.1703 Civil Penalties. Each license issued hereunder shall be subject to suspension or
revocation and/or imposition of a civil fine of up to Two Thousand Dollars
($2,000.00) for violation of any provisions of this Section or the laws of the State of
Minnesota as follows:
(1) Presumptive Civil Penalties; Purpose. The purpose of this subsection is to
establish a standard by which the City Council determines the length of license
suspension, the propriety of revocations, and the amount of fines, and shall apply
to all premises licensed under this Section. These penalties are presumed to be
appropriate for every case; however, the Council may deviate in an individual case
where the Council finds that there exist substantial reasons making it appropriate to
deviate, such as, but not limited to, a license holder’s efforts in combination with the
State or City to prevent the sale of alcohol-related products to minors. When
suspending or revoking a license or imposing a fine for a violation of this Section,
the Council will provide written findings that support the penalty selected. Further,
when deviating from the standard set forth herein, the Council shall set forth in
writing the rationale for the deviation.
(2) Presumptive Penalties for Violations. The minimum penalties for civil violations
as determined by the City Council shall be presumed as follows (unless specified,
number indicate consecutive days’ suspension):
Appearance
Type of Violation 1st 2n
d
3rd 4th
Commission of a felony related to
the licensed activity.
Revocation NA NA NA
Sale of alcohol-related products
while license is under suspension
Revocation NA NA NA
Sale of alcohol-related products
to underage person
1 and
$1,000 (1
6 18 Revoca-
tion
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day sus-
pension
and $500
suspended
for 1 year
and dis-
missed if
no same or
similar vio-
lations in
that year)
Sale of alcohol-related products
to obviously intoxicated person
3 6 18 Revoca-
tion
After hours sale of alcohol-re-
lated products
3 6 18 Revoca-
tion
After hours display or consump-
tion of alcohol-related products
3 6 18 Revoca-
tion
Refusal to allow City Inspectors
or Police admission to inspect
premises
5 15 Revoca-
tion
NA
Illegal gambling on premises 3 6 18 Revoca-
tion
Failure to take reasonable steps
to stop person from leaving
premises with alcohol-related
products
3 6 18 Revoca-
tion
Sale of intoxicating liquor where
only license is for 3.2 percent
malt liquor
Revocation NA NA NA
(Ord. Amend. 114-09, publ. 04 26 14)
301.1704 Automatic Suspension. Any license issued under this Section shall be
immediately suspended, without further action by the City Council, upon notice from
the City Manager to the applicant or license holder for lapse of required insurance,
including but not limited to dram shop insurance, lapse of financial responsibility, or
failure to notify City within a reasonable time of any modifications to insurance or
financial responsibility.
301.1705 Automatic Revocation. Any license issued under this Section shall be immediately
revoked, without further action by the City Council, upon written notice from the City
Manager to the applicant or license holder of the mistaken issuance or renewal of
a license.
301.1706 Multiple Violations. At a license holder’s first appearance before the Council, the
Council may act upon all of the violations that have been alleged in the notice sent
to the license holder. The Council in that case shall consider the presumptive
penalty for each violation under the first appearance column in subsection
301.1703. The occurrence of multiple violations is grounds for deviation from the
presumed penalties in the Council’s discretion.
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301.1707 Subsequent Violations. Violations occurring after the notice of hearing has been
mailed, but prior to the hearing, shall be treated as a separate violation and dealt
with as a second appearance before the Council, unless the City Manager and
license holder agree in writing to add the violation to the first appearance. The same
procedure applies to a second, third, or fourth appearance before the Council.
301.1708 Computation of Appearances. After the first appearance, a subsequent
appearance by the same license holder will be determined as follows:
(1) If the first appearance was within three (3) years of the current violation, the current
violation will be treated as second appearance.
(2) If a license holder has appeared before the Council on two (2) previous occasions,
and the current violation occurred within five (5) years of the first appearance, the
current violation will be treated as a third appearance.
(3) If a license holder has appeared before the Council on three (3) previous occasions,
and the current violation occurred within seven (7) years of the first appearance, the
current violation will be treated as a fourth appearance.
(4) Any appearance not covered by paragraphs (1), (2) or (3) above will be treated as
a first appearance.
301.1709 Other Penalties. Nothing in this Section shall restrict or limit the authority of the
Council to suspend the license 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; provided, that the license holder has been afforded an
opportunity for a hearing in the manner provided in subsection 301.1800. Penalties
imposed under this Section do not require a prior criminal adjudication.
301.1710 Reinstatement. A license shall be reinstated following expiration of the suspension
period and upon payment of all fines by the license holder. No license shall be
reinstated, and no sales of alcohol-related products may be made until all fines have
been paid. The sales of any alcohol-related products while a license is under
suspension shall constitute a violation of subsection 301.1705 and result in the
automatic revocation of the license.
301.1711 Other Enforcement of Action. A civil penalty, suspension or revocation or
combination thereof under this Section does not preclude any private civil action or
any criminal prosecution under this Section or any other federal, state or local law,
statute, ordinance or regulation.
301.1800: Hearing on Denial or Violation: Following receipt of a notice of denial issued
under subsection 301.505 or a notice of a violation and penalty issued under
subsection 301.1700, an applicant or license holder may request a hearing before
the City Council. The City Council may appoint a hearing examiner who shall be a
member of the City Council, or may conduct a hearing itself. A request for a hearing
shall be made by the applicant or license holder in writing and filed with the City
Manager within ten (10) days of the mailing of the notice of denial or notice of
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violation. If a hearing examiner conducts the hearing, the hearing examiner shall
report its findings and make a recommendation to the full Council.
If, after the hearing, the applicant or license holder is found ineligible for a license,
or in violation of this Section, the Council may affirm the denial, impose a fine, issue
a suspension or revocation, or impose any combination thereof. The City Manager
shall mail notice of the denial, fine, suspension or revocation and the reason therefor
to the applicant or license holder.
If the applicant or license holder has been provided written notice of the denial or
violation and if no request for a hearing is filed within the ten (10) day period, then
the denial, penalty, suspension or revocation imposed shall take immediate effect
without any further notice. The City Police Department shall investigate compliance
with the suspension or revocation.
301.1900: Criminal Violations and Penalties:
301.1901 Criminal Violations: License Holder and Employees. As set forth in Minnesota
Statutes §§ 340A.503 and 340A.705, it shall be a gross misdemeanor for anyone
to sell, furnish, or provide alcohol-related products to a person under the age of
twenty-one (21) years. It shall be a gross misdemeanor for anyone under the age
of twenty-one (21) years to sell, furnish, or give away any alcohol-related products.
This subsection shall not apply to an employee of the license holder under the age
of twenty-one (21) years but over the age of eighteen (18) years while serving
alcohol-related products.
301.1902 Criminal Violations.
(1) No person under the age of twenty-one (21) years shall enter a licensed premises
for the purpose of purchasing or consuming any alcohol-related product. It is not
unlawful for any person who has attained the age of 18 years to enter licensed
premises for the purposes of (a) performing work at the licensed premises, including
the serving of alcohol-related products, unless otherwise prohibited by statute, (b)
consuming meals, or (c) attending social functions that are held in a portion of the
licensed premises where alcohol-related products are not sold.
(2) It shall be a misdemeanor for anyone under the age of twenty-one (21) years to
use, purchase, attempt to purchase, or possess alcohol-related products. This
subsection shall not apply to a person under the age of twenty-one (21) but over
the age of eighteen (18) years who purchases or attempts to purchase alcohol-
related products while under the direct supervision of a responsible adult for
training, education, research or enforcement purposes.
(3) No person under the age of twenty-one (21) years shall misrepresent the person’s
age for the purpose of obtaining alcohol-related products, nor shall the person enter
any licensed premises for the purposes of purchasing or having served or delivered
any alcohol-related product. Nor shall any such person purchase, attempt to
purchase, consume, or have another person purchase for the underage person any
alcohol-related products.
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(4) Any person shall, upon demand of the license holder, its employee, or agent,
produce and permit to be examined one of the forms of identification provided under
Minnesota Statutes §340A.503, subd. 6.
(5) No person shall possess open containers of alcohol-related products or consume
alcohol-related products on public property including but not limited to public streets,
sidewalks, parking lots, or in parks except where specifically permitted by City Code
or Policy. No person shall possess open containers of alcohol-related products or
consume alcohol-related products in parking lots under the control of a license
holder outside the licensed premises or on private property generally open to the
public unless possession or consumption for a specific event on such property is
approved by the City Manager in advance of the event. The requesting party for
such approval shall submit an application to the City Manager on a form authorized
by the City.
(6) No person shall consume nor any license holder permit consumption of alcohol-
related products on licensed premises more than twenty (20) minutes after the hour
when a sale thereof can be legally made.
301.1903 Criminal Enforcement. Upon discovery of a suspected violation of any portion of
this subsection, the City Police Department or other appropriate authority shall issue
a criminal citation to the individual offender and license holder where appropriate.
301.2000: Affirmative Defense: A license holder may reasonably and in good faith rely on
proof of age as described in Minnesota Statute § 340A.503, Subd. 6, in making
sales of alcohol-related products. In every appearance before the City Council for a
violation of the provisions of this Section relating to the sale or furnishing of alcohol-
related products to underage persons, the fact that the underage person involved
has obtained and presented to the license holder, its employee or agent, a form of
identification identified in Minnesota Statute. § 340A.503, Subd. 6 from which it
appears that said person was not an underage person and was regularly issued
such identification, shall be prima facie evidence that the license holder, its agent
or employee is not guilty of a civil violation of this Section and, when proven by a
preponderance of the evidence, shall be conclusive evidence that a violation, if one
has occurred, was not willful or intentional.
301.2100: Compliance Checks: All licensed premises shall be open to inspection by the
City police or other authorized City officials during regular business hours. From
time to time, but at least once per year, the City shall conduct compliance checks.
Such compliance checks may involve, but are not limited to, engaging minors to
enter the licensed premises to attempt to purchase alcohol-related products. If
minors are used for compliance checks, they shall not be guilty of unlawful
possession of alcohol-related products when such items are obtained as a part of a
compliance check. No minor used in compliance checks shall attempt to use a false
identification misrepresenting the minor’s age, and all minors lawfully engaged in a
compliance check shall answer all questions about the minor’s age asked by the
license holder or his or her employee and shall produce any identification for which
he or she is asked.
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301.2200: Severability: If any provision of this Section is for any reason held to be invalid,
such decision shall not affect the validity of the remaining provisions of this Section.
(Ord. Amd. 115-21, publ. 08/22/2015)
(Ord. Amd. 116-12, publ. 06/04/2016)
(SPACE INTENTIONALLY BLANK
FOR FUTURE AMENDMENTS)