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HomeMy WebLinkAbout10A - New Liquor Ordinance for City of Prior Lake CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: DECEMBER 21, 1998 lOA. BILL O'ROURKE, CHIEF OF POLICE AGENDA ITEM: CONSIDER APPROVAL OF ORDINANCE 98-XX AMENDING TITLE 3, CHAPTER 1, OF THE PRIOR LAKE CITY CODE REGULATING THE SALE OF LIQUOR. DISCUSSION: Historv Title 3, Chapter 1, of the Prior Lake Code of Ordinances, entitled Liquor Control. was last updated in December, 1989. The ordinance has been reviewed with an eye toward ensuring that it conforms to State Statues and community values, as well as to help ensure that it is logical, rational, and enforceable, and that it serves the greater good of Prior Lake. An integral part of the review process included sending a working draft of the proposed ordinance revisions to the existing liquor license holders in the City of Prior Lake and asking them to review and comment on the revisions. Their concerns, two of which are presented below in 'The Issues' section, were considered in the final draft . Current Circumstances The revised liquor ordinance includes language necessary to address the changes in our community since the ordinance was originally passed and amended. For example, excursion boats on Prior Lake and golf carts on golf course property were not covered in previous versions of the ordinance. Additionally, the inclusion of an 'Instructional Program" requirement for new and renewed licensees reflects the communities concerns. relating to over use of alcoholic beverages. The Issues 1) General Liability Insurance. State Statute 340A.409 requires that applicants demonstrate proof of financial responsibility with regard to liability by filing a certificate that there is in effect for the license period an insurance policy or pool providing at least $50,000 of coverage because of bodily injury to anyone person in anyone occurrence, $100,000 because of bodily injury to two or more persons in anyone occurrence, $10,000 because of injury to or destruction of property of 16200~~~tr1R?,CPW6}ti~f?~~innesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER others in anyone occurrence, $50,000 for loss of means of support of anyone person in anyone occurrence, and $100,000 for loss of means of support of two or more persons in anyone occurrence. Local units of government are authorized to establish higher insurance or bon_~ coverage. The initial rewriting of the ordinance set the minimums for licensing in Prior Lake at $600,000 in anyone occurrence and $1,000,000 because of bodily injury or loss of means of support of two or more persons in anyone occurrence. This limit was established to better correspond with the City's liability limits as established by State Statute. A couple of local businesses expressed a concern that their insurance premiums would be increased, especially in light of the fact that $600,000 would in essence require them to buy $1,000,000 worth of coverage. The final ordinance proposes limits of$500,000 and $1,000,000 after consulting with a representative of the League of Minnesota Cities Insurance Trust. 2) The "Exceptions" Clause of the new ordinance. Section 3-1-22 of the new ordinance exempts existing license holders from the new requirements set forth in Section 3-1-3(A), which would authorize licenses only in free standing building with a minimum assessed valuation of $200,000 (exclusive of land) or, if located in a shopping center or office building, the business must provide seating and food service for a minimum of 3 0 guests at one time. This requirement would impact one of the existing business located in a free standing building, with a valuation of under $200,000. The owner of this business has presented a concern with regards to the resale value of his business and suggests that the exceptions clause be written so as to exempt current licenses from these new requirements, as long as they continue to comply with any other code provisions. Conclusion The issue of insurance is one of minimizing exposure to the City and is written as recommended by the LMCIT. The exceptions clause issue boils down to a question of whether the council sees this as a business retention or community value decision. As presently written, the business must come into compliance with the seating and valuation standards in the ordinance upon sale of the business to another licensee. I expect that Lani Adler and his attorney, representing Exta Innings will be present at the meeting to share their concerns. F:\ADMIN\AGRPTFM.DOCKirsten Oden ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: 1. Adopt Ordinance 98-XX 2. Reject Ordinance 98-XX 3. Amend and approve Ordinance 98-XX 4. Defer and provide staff with specific direction. Motion and second to approve ordinance 98-XX amending Title 3, Chapter 1, of the Prior Lake City Code regulating the sale ofliquor. 1J- Frank BoC1ity F:\ADMIN\AGRPTFM.DOCKirsten Oden ORDINANCE NO. '98-_ CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA AN ORDINANCE REGULATING THE SALE OF LIQUOR THE CITY COUNCIL OF THE CITY OF PRIOR LAKE ORDAINS: The Prior Lake City Code, Title Three, Chapter 1, is repealed in its entirety and replaced with the following: SECTION 3-1-1. PROVISIONS OF STATE LAW ADOPTED. The provisions of Minnesota Statutes, Chapter 340A, relating to alcohol, intoxicating liquor and non- intoxicating liquor are adopted and made a part of this ordinance as if set forth fully herein. 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. SECTION 3-1-2. 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 liquor, malt beverages, and wine. "Applicant": A person as defined herein, who completes or signs an application for a license to sell alcohol-related products individually or on behalf of a business. "Business": The business of selling alcohol or alcohol-related products. "Exclusive Liquor Store": An establishment that sells alcohol-related products for consumption off of the premises and does not sell food or food related products. "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. 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": The person as defined herein licensed to sell alcohol related products. For the purposes of compliance with the regulations set forth in this chapter, license holder also includes owners and employees of the license holder. "Movable place of business": A business whose physical location is not permanent or is capable of being moved or changed. 58795.08 12/14/98 "Off-Sale": The sale of alcoholic beverages in original packages for consumption off the licensed premises only. "On-Sale": The sale of alcoholic beverages for consumption on the licensed premises only. "On-Sale 3.2/Wine License": A license issued for the sale of 3.2 malt liquor and wine not exceeding fourteen percent (14%) alcohol by volume, for consumption on the licensed premises only, in conjunction with the sale of food. "Person": One (1) or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the State; or any other business organization. "Temporary On-Sale Intoxicating Liquor License": A temporary On-Sale License for the sale of intoxicating liquor issued to a club or charitable, religious or nonprofit organization for special events on a limited basis. "Temporary On-Sale 3.2 License": A temporary On-Sale license for the sale of 3.2 malt liquor and wine issued to a club or charitable, religious or non-profit organization. "Food Service": Table service of food other than prepackaged snack foods or foods reheated in a microwave or toaster oven. SECTION 3-1-3. LICENSE TYPES. The following types of licenses shall be available for the sale of alcohol related products: A. On-Sale Intoxicatina Liauor License. On-sale intoxicating liquor licenses shall be granted only to hotels, clubs (either private or public), restaurants, bowling alleys and excursion boats on Prior Lake. A license shall be issued to congressionally chartered veterans' organizations if they have been in existence for at least three (3) years and 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) must have a minimum valuation of $200,000 as established by the Scott County Assessors determination of fair market value; 2. Where the licensed premises is located in a shopping center or office building, the licensed premises must provide seating and food service for a minimum of 30 guests at one time. B. Off-Sale Intoxicatina Liauor License. Off-sale intoxicating liquor licenses may be issued to an exclusive liquor store and shall permit off-sale of alcohol related products. C. On-Sale 3.2 Percent Malt Liauor/Wine License. On-sale 3.2 percent malt liquor/wine licenses (hereinafter "3.2/wine license") may be issued to' restaurants, congressionally chartered veterans' organizations, and hotels where food is prepared and served for consumption on the premises only. An on-sale 3.2/wine license may be issued only to a restaurant having facilities for seating at least twenty-five (25) guests at one time. D. Off-Sale 3.2 Percent Malt Liouor 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. 58795.08 12/14/98 2 ., E. On-Sale Sundav Liauor License. On-sale Sunday liquor licenses may be issued to a hotel, bowling alley, club, or restaurant, 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 that the licensee 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 3.2/wine licenses. F. Temoorarv On-Sale Intoxicatina Liauor License. The City Council may issue to a charitable, religious or nonprofit organization, comprised of at least 35 members, in existence for at least three (3) years or to a political committee registered under Minn. Stat. 91 0A.14 a temporary license for the sale of intoxicating liquor in connection with a social event within the City sponsored by the licensee. 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 licensee owns or permanently occupies. The license may provide that the licensee may contract for catering services with the holder of a full-year on-sale liquor 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 license, the licenses issued under this Section are subject to all laws and ordinances governing the sale of alcohol related products except Minn. Stat. 9340A.409 and 9340A.504, Subd. 3, paragraph (d). Temporary licenses must first be approved by the Minnesota Commissioner of Public Safety before they become valid. 2. The City may not issue more than three four-day temporary licenses, four three-day licenses, six two-day licenses, or twelve one-day licenses, in any combination not to exceed 12 days per year, to anyone organization or for anyone location. No more than one temporary license may be issued to anyone organization or for anyone location within any 30 day period, unless the licenses are issued in connection with an official community festival, designated as such by the City. G. Temoorarv On-Sale Non-Intoxicatina Malt Liauor Licenses. The City Council may issue a club or charitable, religious, or non-profit organization a temporary on-sale license for the sale of 3.2 percent malt liquor. No temporary non-intoxicating malt liquor license may be issued for the sale of alcoholic beverages in any school or on school grounds. SECTION 3-1-4. LICENSE REQUIRED AND PROHIBITED SALES. A. License. No person shall keep for retail sale, sell at retail or otherwise dispense any alcohol related products at any place in the City without first obtaining a license' and paying a license fee. 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 person, 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. Every license issued pursuant to this Chapter is subject to the conditions in the following subsection and of any other applicable ordinance, state law or regulation. 58795.08 12/14/98 3 B. Prohibited Sales. No person shall sell, offer for sale, give away, furnish, or otherwise deliver any alcohol or alcohol-related product: 1. Without first having received a license to do so as provid'3d in this Chapter. 2. To any person under the age of twenty-one (21) years. 3. By any means, or to any other person, prohibited by Federal, State, or other local law, ordinance provision, or other regulation. C. Instructional Proaram. Other than temporary licenses issued under Sections 3-1-3(F) and 3-1-3(G), no person shall be issued a license or renewal license to sell alcohol-related products unless the applicant for a license has a program for instructing all employees at the business premises subject to the license, 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 from every customer who appears to be under 27 years of age. The training shall include information that the sale of alcohol-related products to minors is illegal, explains 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. SECTION 3-1-5. APPLICATION FOR LICENSE.. A. Application. An application for a license to sell alcohol related products shall be made on a form provided by the City. The application shall include, but is not limited to; the full name and age of the applicant, the applicant's residential and business address and telephone numbers, the name of the proposed license holder, the business location for which the license is sought, the type of license applied for, and such other information as the council shall require from time to time. 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. B. Documents to Accompanv Application. At the time of application, the following must 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. License fees are not pro- rated. If the license application is rejected or denied, the City shall return the license fee only, except where rejection is for a willful misstatement in the license application. 2. Investioation Fee. Otherthan applications for temporary licenses issued under Sections 3-1- 3(F) and 3-1-3(G), all 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 cost thereof, prior to consideration of the license application by the City Council. 58795.08 12/14/98 4 3. Leoal Documents. All applications shall be accompanied by copies of each summons received by the applicant under Minnesota Statute Section 340A.802 during the preceding year. 4. General Liabilitv Insurance. Proof of financial responsibility shall be given by filing a certificate that there is in effect for the license period an insurance policy or pool providing at least $500,000.00 of coverage because of bodily injury to anyone person in anyone occurrence, $1,000,000.00 because of bodily injury to two or more persons in anyone occurrence, $500,000.00 because of injury to or destruction of property of others in anyone occurrence, $500,000.00 for loss of means of support of anyone person in anyone occurrence, and $1,000,000.00 for loss of means of support of two or more persons in any one occurrence. The insurance policy must provide that the insurer will provide the City with thirty (30) days notice prior to the termination of insurance or any change in insurance coverage. 5. Workers' Comoensation Insurance. The policy limits for workers' compensation insurance shall be as provided for by state law. 6. Financial Resoonsibilitv. Liquor licenses shall be issued, maintained, or renewed only if the applicant demonstrates financial responsibility as defined in Minnesota Statute Section 340A.409 for the applicant's liability under Minnesota Statute Section 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 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 Section 3-1-10(c) . C. Action. If the City Manager determines that an application is incomplete or without proper supporting documentation, he or she shall return the application to the applicant with notice of the deficiencies. The City Manager shall review the application, supporting documents, and the result of a background investigation, and may recommend to the City Council either approval or denial of the license, or may recommend the City Council delay action for such reasonable period of time to permit the City to complete any additional investigation of the application or the applicant deemed necessary. Following written notice to the applicant, the City Council shall review the application and supporting documents and shall hear testimony from any person who requests to be heard for or against the granting of the license. After the investigation and hearing, the Council shall, in its discretion, grant or deny the issuance of the license. No "on-sale 3.2/wine" license or "off-sale" license shall become effective until approved by the commissioner of public safety. The City Council may impose reasonable conditions on the issuance of any license to protect the public. If the City Council approves the license, and all required approvals are received by the City, a license shall be issued to the applicant. If the City Council denies the application, a notice of denial shall be sent to the applicant at the business address provided on the application along with the reasons for the denial. If a license is mistakenly issued or renewed to an applicant or license holder, it shall be revoked by the City Manager upon the discovery that the person, applicant or license holder was ineligible for the license under this Section. No license shall be issued transferred or renewed if the results of the background investigation show that issuance would not be in the public interest. 58795.08 12/14/98 5 SECTION 3-1-6. DENIALS.. A. 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 exclusk€: 1. The applicant is under the age of twenty-one (21) years. 2. The applicant has been convicted within the past five (5) years of a violation of any provisions of this Chapter or a violation of a Federal, State, or local law, Ordinance provision, or other regulation relating to alcohol or related products. 3. The applicant or license holder has had a license to sell alcohol revoked within the preceding five (5) years of the date of application. 4. The applicant fails to provide any information required on the City license application, or provides false or misleading information. 5. The applicant or license holder has outstanding fines, penalties or property taxes owed to the City. 6. The applicant is directly or indirectly the owner of any current license issued under this Chapter. 7. The place of the licensed business is ineligible for a license under state law or the City Code. (Minnesota Statutes 340A.412 or 340A.301) 8. Taxes, assessments, fines or other financial claims of the City are delinquent and unpaid as to the premises to be licensed. 9. The premises to be licensed is located within 300 feet of any church or school. 10 It is impractical to conduct a background and financial investigation due to the unavailability of information; 11 The applicant is not of good moral character and repute. B. Exceotion. No license shall be granted for operation on any premises on which state, city or county taxes, assessments, fines or other financial claims of the state, city, or county are delinquent and unpaid. Notwithstanding the foregoing, if the delinquent taxes, assessments, fines or financial claims are against a landowner, and the applicant or license holder in the case of a renewal, 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. SECTION 3-1-7. RENEWALS. The renewal of a license under this Section shall be handled in the same manner as the original application. Any person intending to apply to renew a liquor license must submit a renewal application, on a form provided by the City, and pay the application and license fee. A license renewal application, and license fee must 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 ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. 58795.08 12/14/98 6 ill ~. A late fee of Fifty Dollars ($50.00) will be imposed on any licensee who fails to submit a timely renewal application. SECTION 3-1-8. TERM. All licenses are issued for a period of one (1) year. The license period is from July 1 to June 30. SECTION 3-1-9. TRANSFERS. All licenses issued under this Section shall be valid only on the business premises for which the license was issued 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 licensee is deemed a transfer of the license, which, without Council approval, is grounds for revocation of the license. SECTION 3-1-1 O. REVOCATION OR SUSPENSION. All licenses issued by the City may be revoked or suspended by the methods set forth herein. A. Grounds for Revocation or Susoension. A license issued by the City under this Chapter may be revoked or suspended for any of the following reasons: 1. The license holder, its owners or employees has violated any section of this Chapter. 2. The license holder, its owners or employees has violated any applicable civil or criminal statute, ordinance, or regulation pertaining to alcohol related products. 3. The license holder, its owners or employees has violated a special condition under which the license was granted, including, but not limited to, the timely payment of real estate taxes and all other charges. 4. The license holder, its owners or employees has violated a Federal, State, or local law regulating the sale of alcohol related products or controlled substances. 5. The license holder, its owners or employees has created a public nuisance, as described in the City Code, on the premises or in the surrounding area. 6. The license holder, its owners or employees has suffered or permitted illegal acts upon the licensed premises or on property owned, controlled by, or adjacent to the licensed premises, unrelated to the sale of alcohol related products. 7. The license holder, its owners or employees has knowledge of illegal acts upon or attributable to the licensed premises, but has failed to report the same to the police. B. Automatic Suspension. Any license issued under this Section shall be immediately suspended without further action by the City Council, for any of the following reasons: 1. Lapse of required dram shop insurance, or 2. Lapse of security provided to the City. 58795.08 12/14/98 7 C. Automatic Revocation. Any license issued under this Section shall be immediately revoked without further action by the City Council, for any of the following reasons: 1. Upon written notice from the City Manager of the mistaken grant of a license. 2. Expiration or cancellation of any required insurance, bond or other security or failure to notify the City within a reasonable time of changes in the term of the insurance or insurance carriers. D. Notice. Notice to the license holder from any insurer of the lapse of insurance, lapse of bond, or withdrawal of security shall also serve as notice of the suspension of the license. A suspension or revocation under this section shall be effective until the City Council determines the requirements of this ordinance have again been met. E. Effective Date. Except as provided in Sections 3-1-10(8) and (C), no revocation or suspension shall take effect until the license holder has been afforded an opportunity to be heard by the City Council pursuant to section 3-1-18 herein. SECTION 3-1-11. NON-EMPLOYEES ON PREMISES. A licensee shall not allow non-employees on the business 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 premises of a hotel, restaurant, club, or bowling alley (On- sale liquor licensees and on-sale 3.2/wine licensees) 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 licensee shall close off all access to alcohol related products or any bar area in a manner approved by the City. SECTION 3-1-12. DISPLAY. Every license shall be conspicuously posted at the place of business for which the license is issued and shall be exhibited to any person upon request. SECTION 3-1-13. RIGHT OF INSPECTION. A. premises. Any Prior Lake police officer, City official, or any properly designated officer displaying proper identification shall have the unqualified right to enter, inspect, and search the premises of any licensee hereunder without a warrant, during business hours or when owners, managers, or other employees are located on the premises. B. Records. The business records of the licensee, including Federal and State tax returns, shall be available for inspection by the City at all reasonable times upon written request. SECTION 3-1-14. MOVEABLE PLACE OF BUSINESS. No license of any type shall be issued for any movable place of business, including but not limited to kiosks or trailers. "Movable place of business" does not include golf carts when used on golf course property, excursion boats on Prior Lake, or any movable structure when specifically permitted by the City Council under Section 3-1-15 herein. 58795.08 12/14/98 8 1If~ SECTION 3-1-15. 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 origiJ.sl 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 portions thereof without a permanent or temporary license approval from the City as provided herein. 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 entertainment in any outdoor area to protect the safety and welfare of residents, businesses and other uses near the establishment. 3. The City Council may authorize an establishment to conduct entertainment not otherwise allowed under its license in an outdoor area by permit temporarily for special events. Such temporary permits shall be issued for a fee as set forth by the City Council. 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. 6. The license holder shall provide 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 remainder of the premises or through the property controlled by the license holder. 8. No sales of alcohol-related products may be made on any public sidewalk 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 establishment. SECTION 3-1-16. OBSCENITY AND NUDITY:, No liquor licensee shall: 1. Employ or use any person in the sale or service of alcoholic beverages 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 subsection (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; 58795.08 12/14/98 9 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; SECTION 3-1-17. CIVIL VIOLATIONS AND PENALTIES. A. Civil Violations. Any violation of this Chapter 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 or employees while on the licensed premises. B. Additional Violations. The following additional restrictions apply to all licenses issued by the City Council under this Chapter: 1. No licensee shall knowingly permit the licensed premises or any room in those premises or any adjoining building directly under the licensee's control to be used by prostitutes. 2. No licensee shall knowingly permit the sale, possession or consumption of controlled substances on the licensed premises in violation of state law nor shall any licensee permit consumption of alcoholic beverages on licensed premises more than twenty (20) minutes after the hour when a sale tbereof 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. No licensee shall employ or use any person in the sale or service of alcoholic beverages 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. C. Notice of Violation. Upon the occurrence of a violation, the Police Department shall inform the City Manager of the suspected violation. The City Manager shall then send to the license holder a written notice of the civil violation. The notice shall advise the license holder of the penalty and the license holder's right to request a hearing regarding the violation of this Chapter pursuant to Section 3-1- 18. D. 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 ($2,000) Dollars for violation of any provisions of this Chapter or the laws of the State of Minnesota as follows: 1. Presumptive Civil Penalties. a. Purpose. The purpose of this Section 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 Chapter. 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 more appropriate to deviate, such as, but not limited to, a licensee's efforts in combination with the State or City to prevent the sale of alcohol to minors. When 58795.08 12/14/98 10 suspending or revoking a license or imposing a fine for a violation of this Ordinance, 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. b. Presumotive Penalties for Violations. The minimum penalties for civil violations as determined by the City Council must be presumed as follows (unless specified, numbers indicate consecutive days' suspension): I Appearance I I Type of Violation -.. ._. I 1 st 2nd 3rd 4th 1. Commission of a felony Revocation NA NA NA related to the licensed activity 2. Sale of alcoholic Revocation NA NA NA beverages while license is under suspension 3. Sale of alcoholic 3 6 18 Revocation beverages to under-age person 4. Sale of alcoholic 3 6 18 Revocation beverages to obviously intoxicated person 5. After hours sale of 3 6 18 Revocation alcoholic beverages 6. After hours display or 3 6 18 Revocation consumption of alcoholic beverages 7. Refusal to allow City 5 15 Revocation NA inspectors or Police admission to inspect premIses 8. Illegal gambling on 3 6 18 Revocation premIses 9. Failure to take reasonable 3 6 18 Revocation steps to stop person from leaving premises with alcoholic beverages 10. Sale of intoxicating liquor Revocation NA NA NA where only license is for 3.2 percent malt liquor 58795.08 12/14/98 11 . < E. Multinle Violations. At a licensee'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 licensee. The Council in that case must consider the presumptive penalty for each violation under the first appearance column in subsection (B) above. The occurrence of multiple violations is grourtds for deviation from the presumed penalties in the Council's discretion. F. Subseauent Violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance before the Council, unless the City Manager and licensee 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. G. Subseauent Annearances. Upon a second, third, or fourth appearance before the Council by the same licensee, the Council must impose the presumptive penalty for the violation or violations giving rise to the subsequent appearance without regard to the particular violation or violations that were the subject of the first or prior appearance. However, the Council may consider the amount of time elapsed between appearances as a basis for deviating from the presumptive penalty imposed by this Section. H. COffinutation of Anoearances. After the first appearance, a subsequent appearance by'the same licensee 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 licensee 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 licensee 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 subsection 1, 2, or 3, above will be treated as a first appearance. 1. 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 Section 3-1-18. Penalties imposed under this Section do not require a prior criminal adjudication. J. Reinstatement. A license shall be reinstated following expiration of the suspension period 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 be constitute a violation of Section 3-1-1O(c) and result in the automatic revocation of the license. 58795.08 12/14/98 12 K. Other Enforcement of Action. Any civil penalty, suspension or revocation or combination thereof under this Section does not preclude any private civil action or any criminal prosecution under this Ordinance or any Minnesota Statute. SECTION 3-1-18. HEARING ON DENIAL OR VIOLATION A. Hearinll' Following receipt of a notice of denial issued under Section 3-1-12 or a notice of a violation and penalty issued under Section 3-1-17, 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 days of the mailing of the notice of denial or notice of suspected violation. Following receipt of a written request for hearing, the applicant or license holder shall be afforded an opportunity for a hearing before the Council. If a hearing examiner conducts the hearing the hearing examiner shall report its findings and make a recommendation to the full Council. B. Findin!!s. If after the hearing the applicant or license holder is found ineligible for a license, or in violation of this Ordinance, the Council may affirm the denial, impose a fine, issue a suspension or revocation, or impose any combination thereof. . C. Default. 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 in Section 3-1-17 shall take immediate effect by default. The City Manager shall mail notice of the denial, fine, suspension or revocation to the applicant or license holder. The City Police shall investigate compliance with the suspension or revocation. SECTION 3-1-19. CRIMINAL VIOLATIONS AND PENALTIES. A. Criminal Violations: License Holder and Emplovees. As set forth in Minnesota Statutes Chapters 340A.503 and 340A.701 to 340A.705: 1. It shall be a gross misdemeanor for anyone to sell, furnish, or provide alcohol products to a person under the age of twenty-one (21) years. 2. It shall be a gross misdemeanor for anyone under the age of twenty-one (21) years to sell, furnish, or give away any alcohol products. This Section shall not apply to an employee of the license holder under the age of twenty-one (21) but over the age of eighteen (18) years while serving alcohol related products. B. Criminal Violations. 1. No person under the legal drinking 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: 58795.08 12/14/98 13 . . a. to perform work for the establishment, including the serving of alcoholic beverages, unless otherwise prohibited by statute; b. to consume meals; or c. to attend social functions that are held in a portion of the establishment where 'liquor is 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 products. This Section 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 underage person shall misrepresent the person's age for the purpose of obtaining alcohol related products, nor shall the person enter any premises licensed for the retail sale of alcohol related products for the purposes of purchasing or having served or delivered any alcoholic beverage. Nor shall any such person purchase, attempt to purchase, consume, or have another person purchase for the underage person any alcohol related products. 4. Any person shall, upon demand of the licensee, his employee, or agent, produce and permit to be examined one of the following forms of identification provided under Minnesota Statutes Section 340A.503, subdivision 6. 5. No person shall possess open containers of alcoholic beverages or consume alcoholic beverages on public property including but not limited to public streets, sidewalks, parking lots, or in parks except where specifically permitted by ordinance. No person shall possess open containers of alcoholic beverages or consume alcoholic beverages in parking lots under the control of a liquor licensee outside the licensed structure 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. (Ord. 91-02, 7-15-91) 6. No person shall consume nor any licensee permit consumption of alcoholic beverages on licensed premises more than twenty (20) minutes after the hour when a sale thereof can be legally made. B. Criminal Enforcement. Upon discovery of a suspected violation of any Section of this Chapter, the City Police or other appropriate authority shall issue a criminal citation to the individual offender and licensee where appropriate. SE<;TION 3-1,-2Q. AlfllJKMATIVE DEFENSE. A license holder may reasonably and in good faith rely on proof of age as described in Section 3-1- 19,(B),(4) of this Chapter, in making sales of alcohol-related products. In every appearance before the City Council for a violation of the provisions of this Chapter 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 licensee, his employee or agent, a driver's license, passport or identification card from which it appears that said person was not an underage person and was regularly issued such 58795.08 12/14/98 14 identification card, shall be prima facie evidence that the licensee, his agent or employee is not guilty of a civil violation of this Chapter and, when proven by a preponderance of the evidence, shall be conclusive evidence that a violation, if one has occurred, was not wilful or intentional. SECTION 3-1-21. COMPLIANCE CHECKS. All licensed premises shall be open to inspection by the City police or other authorized City officials during regular business hours. A. Annual Comoliance Checks. 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 and alcohol related products. B. Minors. If minors are used for compliance checks they shall not be guilty of unlawful possession of alcohol 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 minors age asked by the licensee or his or her employee and shall produce any identification for which he or she is asked. SECTION 3-1-22. EXCEPTIONS. All license holders at the time of the passage and adoption of this ordinance are specifically exempt from the requirements set forth in Section 3-1-3(A). Said exemption shall remain in effect so long as the license holder meets all other applicable requirements and provisions of this Chapter. SECTION 3-1-23. SEVERABILITY. If any provision of this Chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this Chapter. THIS ORDINANCE SHALL BE EFFECTIVE PASSAGE AND PUBLICATION. , 1998, FOLLOWING 58795.08 12/14/98 15 ADOPTED this Lake. ATTEST: day of YES Mader Kedrowski Schenck Wuellner 'Pet.~f.~~n. Frank Boyles, City Manager 58795.08 12/14/98 .;... \.. , 1998, by the City Council of the City of Prior NO Mader Kedrowski Schenck Wuellner Petersen CITY OF PRIOR LAKE By: Wesley M. Mader, Mayor 16