A. Authorization: Minnesota Statutes Section 340A.415, authorizes a City Council to impose penalties upon the holder of a liquor license or permit who has failed to comply with an applicable statute or ordinance.
B. Hearing: Before penalties can be imposed, the City Council or its designee must hold a hearing. At the hearing, the licensee has the right to be represented by counsel, the right to respond to the charges, the right to present evidence through witnesses under oath, and the right to confront and cross examine witnesses under oath. At least twenty (20) days’ written notice of the time and place of the hearing must be provided to the licensee and must state the grounds for the action proposed to be taken. The notice must be served by certified mail to the address listed on the license application or where the business activity is conducted. Any actions taken following the hearing shall be adopted by resolution with findings. In order to suspend or revoke the license or impose financial civil penalties on the licensee, the City Council must find that the license or permit holder has committed one (1) or more of the following violations:
1. Sold alcoholic beverages to another retail licensee for the purpose of resale;
2. Purchased alcoholic beverages from another retail licensee for the purpose of resale;
3. Conducted or permitted the conduct of gambling on the licensed premises in violation of the law; or
4. Failed to comply with an applicable statute, rule, or ordinance relating to alcoholic beverages.
C. Penalties: The penalties may include revocation of the license or permit, suspension of the license or permit for up to sixty (60) days, the imposition of a civil penalty of up to two thousand dollars ($2,000.00) for each violation, or any combination of these sanctions. No suspension or revocation may take effect until the license or permit holder has been given an opportunity for a hearing. Upon a finding that the license holder or permit holder has committed one (1) of the above mentioned violations, the City Council shall impose a liquor license civil penalty pursuant to the following guidelines:
1. For commission of a felony related to the licensed activity, sale of alcoholic beverages while the license is under suspension, sale of intoxicating liquor whether the only license is for 3.2 percent malt liquor, the license shall be revoked.
2. After a hearing, if the City Council finds that the licensee has committed a violation of subsection B of this Section, the Council shall impose at least the minimum fines and suspensions pursuant to the City’s fee ordinance.
3. The City Council shall select the day or days during which the license will be suspended.
4. Lapse or cancellation of required liquor liability insurance or bond, or withdrawal of a required deposit of cash or securities pursuant to Minnesota Statutes Section 340A.409, shall result in an immediate suspension of any license issued under this Chapter or State law without further action of the City Council. Notice of cancellation, lapse of a current liquor liability policy or bond, or withdrawal of deposited cash or securities shall also constitute notice to the licensee of the impending suspension of the license. The holder of a license who has received notice of lapse or cancellation of required insurance or bond, or withdrawal of a required deposit, or of suspension or revocation of a license, may request a hearing thereon, and if such a request is made in writing to the City Clerk, a hearing before the City Council shall be held at the next regularly scheduled meeting of the City, which in no case shall it be longer than fifteen (15) days after the City Clerk has received the notice requesting the hearing. Any suspension under this subsection shall continue until the City Council determines that the financial responsibility requirements of state law and this Chapter have again been met, regardless of any request for hearing.
D. Decision Final: The decision by the City Council or its designee following a hearing is final.