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GENERAL REGULATIONS
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ALCOHOLIC BEVERAGE. Any beverage containing more than 0.5% alcohol by volume, including but not limited to beer, wine and liquor as defined in this section.
APPLICANT. Any person making an application for a license under this chapter.
APPLICATION. A form with blanks or spaces thereon, to be filled in and completed by the applicant as his or her request for a license, furnished by the city and uniformly required as a prerequisite to the consideration of the issuance of a license for a business.
BEER. Malt liquor containing not less than 0.5% alcohol by volume nor more than 3.2% alcohol by weight. (This definition includes so-called “malt coolers” with the alcoholic content limits stated in state law.)
BREWER. A person who manufactures beer for sale.
CLUB. An incorporated organization organized under the laws of the state for civic, fraternal, social or business purposes, for intellectual improvement, for the promotion of sports, or a congressionally chartered veterans’ organization, which has more than 50 members; 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 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. The CLUB or congressionally chartered veterans’ organization must have been in existence for at least three years.
COMMISSIONER. The State Commissioner of Public Safety.
EXCLUSIVE LIQUOR STORE. An establishment used exclusively for the sale of liquor except for the incidental sale of ice, tobacco, beer, beverages for mixing with liquor, soft drinks, cork extraction devices and books and videos on the use of alcoholic beverages in the preparation of food, and the establishment may offer recorded or live entertainment. EXCLUSIVE LIQUOR STORE also includes an on-sale or combination on-sale and off-sale liquor establishment which sells food for on-premises consumption when authorized by the city.
HOTEL. An establishment where food and lodging are regularly furnished to transients and which has a dining room serving the general public at tables and having facilities for seating at least 30 guests at one time, and at least ten guest rooms.
LICENSE. A document, issued by the city, to an applicant permitting him or her to carry on and transact the business stated therein.
LICENSE FEE. The money paid to the city pursuant to an application and prior to issuance of a license to transact and carry on the business stated therein.
LICENSED PREMISES. The premises described in the issued license.
LICENSEE. An applicant who, pursuant to his or her approved application, holds a valid, current, unexpired license, which has neither been revoked nor is then under suspension, from the city for carrying on the business stated therein.
LIQUOR. Ethyl alcohol and distilled, fermented, spirituous, vinous and malt beverages containing in excess of 3.2% of alcohol by weight. (This definition includes so-called “wine coolers” and “malt coolers” with the alcoholic content limits stated in state law.)
MALT LIQUOR. Any beer, ale or other beverage made from malt by fermentation and containing not less than 0.5% alcohol by volume.
MANUFACTURER. Every person who, by any process of manufacture, fermenting, brewing, distilling, refining, rectifying, blending or by the combination of different materials, prepares or produces alcoholic beverages for sale.
MINOR. Any natural person who has not attained the age of 21 years.
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.
PACKAGE and ORIGINAL PACKAGE. Any container or receptacle holding alcoholic beverages, which container or receptacle is corked, capped or sealed by a manufacturer or wholesaler.
RESTAURANT. An establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly served at tables to the general public, and having seating capacity for at least 30 guests.
SALE, SELL and SOLD. All barters and all manners or means of furnishing alcoholic beverages to persons, including furnishing in violation or evasion of law.
WHOLESALER. Any person engaged in the business of selling alcoholic beverages to a licensee from a stock maintained in a warehouse.
WINE. A beverage made without rectification or fortification by the fermentation of sound ripe grapes, grape juice, other fruits or honey, and also carbonated wine, wine made from condensed grape must, wine made from other agricultural products imitation wine, compounds sold as wine, vermouth, cider, perry and sake, containing not less than 0.5% nor more than 14% alcohol by volume. (This definition includes so-called “wine coolers” with the alcoholic content limits stated in state law.)
(1989 Code, § 5.01) (Ord. 29, 2nd Ser., eff. 5-14-1999)
(A) Application. All applications shall be made at the office of the City Administrator/Clerk-Treasurer upon forms prescribed by the city, or if by the Commissioner, then together with any additional information as the Council may desire. Information required may vary with the type of business organization making application. All questions asked or information required by the application forms shall be answered fully and completely by the applicant. Every application for the issuance or renewal of an alcoholic beverage license must include a copy of each summons received by the applicant during the preceding year under M.S. § 340A.802, as it may be amended from time to time.
(B) False statements. It is unlawful for any applicant to intentionally make a false statement or omission upon any application form. Any false statement in the application or any willful omission to state any information called for on the application form shall, upon discovery of a falsehood, work an automatic refusal of license, or if already issued, shall render any license issued pursuant thereto void and of no effect to protect the applicant from prosecution for violation of this chapter or any part thereof.
(C) Application and investigation fees. At the time the initial application is made, an applicant for a license under this chapter shall accompany the application with payment of a fee to be considered an application and investigation fee, not refundable to the applicant, to cover the cost of the city in processing the application and the investigation of the applicant. No fee shall be required of an applicant for a temporary beer license.
(D) Action.
(1) Granting. The Council may approve any application for the period of the remainder of the then current license year or for the entire ensuing license year. All applications including proposed license periods must be consistent with this chapter. Prior to consideration of any application for a license, the applicant shall pay the license fee, and if applicable, pay the investigation fee. Upon rejection of any application for a license, or upon withdrawal of an application before consideration by the Council, the license fee shall be refunded to the applicant. Failure to pay any portion of a fee when due shall be cause for revocation.
(2) Issuing. If an application is approved, the City Administrator/Clerk-Treasurer shall forthwith issue a license pursuant thereto in the form prescribed by the city or the Commissioner, as the case may be. Except as otherwise specifically provided, all licenses shall be on a fiscal year basis, July 1 to June 30. For licenses issued and which are to become effective other than on the first day of the licensed year, the fee to be paid with the application shall be a pro rata share of the annual license fee. Licenses shall be valid only at one location and on the premises therein described.
(3) Transfer. No license shall be transferable between persons. Any change in individual ownership, incorporation or substitution of partners is a transfer. No license shall be transferable to a different location without prior consent of the Council and payment of the fee for a duplicate license. It is unlawful to make any transfer in violation of this division (D)(3).
(4) Refusal and termination. The Council may, in its sole discretion and for any reasonable cause, refuse to grant any application. No license shall be granted to a person of questionable moral character or business reputation. Licenses shall terminate only by expiration or revocation.
(5) Public interest. No license under this chapter may be issued, transferred or renewed if the results of any investigation show, to the satisfaction of the Council, that the issuance, transfer or renewal would not be in the public interest.
(6) Revocation or suspension. For any license granted under the provisions of this chapter, the Council may revoke, suspend for a period not to exceed 60 days, impose a civil fine not to exceed $2,000 or any combination of these sanctions, for each violation on a finding that the licensee has failed to comply with a statute, regulation or provision of the city code relating to alcoholic beverages. The Council shall revoke the license upon conviction of any licensee or agent or employee of a licensee for violating any law relating to the sale or possession of beer, wine or liquor upon premises of the licensee, or if the revocation is mandatory by statute. If it shall be made to appear at the hearing thereon that the violation was not willful, the Council may order suspension; provided that revocation shall be ordered upon the third violation or offense. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing before the Council, a committee of the Council or a hearing under the Administrative Procedures Act being M.S. §§ 14.001 to 14.69, as they may be amended from time to time, as may be determined by the Council in action calling the hearing. The hearing shall be called by the Council upon written notice to the licensee served in person or by certified mail not less than 15 nor more than 30 days prior to the hearing date, stating the time, place and purpose thereof. As additional restrictions or regulations on licensees under this chapter, and in addition to grounds for revocation or suspension stated in the city code or statute, the following shall also be grounds for that action, that:
(a) The licensee suffered or permitted illegal acts upon licensed premises unrelated to the sale of beer, wine or liquor;
(b) The licensee had knowledge of the illegal acts upon licensed premises, but failed to report the same to police;
(c) The licensee failed or refused to cooperate fully with police in investigating the alleged illegal acts upon licensed premises; or
(d) The activities of the licensee created a serious danger to public health, safety or welfare.
(7) Corporate applicants and licensees. A corporate applicant, at the time of application, shall furnish the city with a list of all persons that have an interest in the corporation and the extent of the interest. The list shall name all shareholders and show the number of shares held by each, either individually or beneficially for others. It is the duty of each corporate licensee to notify the City Administrator/Clerk-Treasurer in writing of any change in legal ownership or beneficial interest in the corporation or in the shares. Any change in the ownership or beneficial interest in the shares entitled to be voted at a meeting of the shareholders of a corporate licensee, 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, and the license shall be revoked 30 days after the change in ownership or beneficial interest of shares unless the Council has been notified of the change in writing and has approved it by appropriate action. 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 licensee in order to verify and identify the shareholders, and the Council or its designated officer may examine the business records of any other licensee to the extent necessary to disclose the interest which persons other than the licensee have in the licensed business. The Council may revoke any license issued upon its determination that a change of ownership of shares in a corporate licensee or any change of ownership of any interest in the business of any other licensee has actually resulted in the change of control of the licensed business so as materially to affect the integrity and character of its management and its operation, but no action shall be taken until after a hearing by the Council on notice to the licensee.
(E) Duplicate licenses. Duplicates of all original licenses under this chapter may be issued by the City Administrator/Clerk-Treasurer without action by the Council, upon licensee’s affidavit that the original has been lost, and upon payment of the fee adopted by resolution of the Council for issuance of the duplicate. All duplicate licenses shall be clearly marked “Duplicate.”
(F) Posting. All licensees shall conspicuously post their licenses in their places of business.
(G) Resident manager or agent. Before a license is issued under this chapter to an individual who is a nonresident of the city, to more than one individual whether or not they are residents of the city, or to a corporation, partnership or association, the applicant or applicants shall appoint in writing a natural person who is a resident of the city as its manager or agent. The resident manager or agent shall, by the terms of his or her written consent, take full responsibility for the conduct of the licensed premises, and serve as agent for service of notices and other process relating to the license. The manager or agent must be a person who, by reason of age, character, reputation and other attributes, could qualify individually as a licensee. If the manager or agent ceases to be a resident of the city or ceases to act in that capacity for the licensee without appointment of a successor, the license issued pursuant to the appointment shall be subject to revocation or suspension.
(H) Persons disqualified.
(1) No license under this chapter may be issued to:
(a) A person not a citizen of the United States or a resident alien;
(b) A person who within five years of the license application has been convicted of any felony or a willful violation of a federal or state law, or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution, of alcoholic beverages;
(c) A person who has had an alcoholic beverage license revoked within five years of the license application or to any person who at the time of the violation owns any interest, whether as a holder of more than 5% of the capital stock of a corporate licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business or firm in which the person is in any manner interested;
(d) A person under the age of 21 years; or
(e) A person not of good moral character and repute.
(2) No person holding a license from the Commissioner as a manufacturer, brewer (except as provided by statute), wholesaler or importer may have a direct or indirect interest, in whole or in part, in a business holding an alcoholic beverage license from the city.
(1989 Code, § 5.02) (Ord. 29, 2nd Ser., eff. 5-14-1999) Penalty, see § 112.999
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