(A) Violations and penalties.
(1) Upon a finding that the holder of any license granted pursuant to this subchapter has sold alcoholic beverages to another retail licensee for the purpose of resale, purchased alcoholic beverages from another retail licensee for the purpose of resale, conducted or permitted the conduct of gambling on the licensed premises in violation of the law, or failed to comply with any applicable statute, regulation or ordinance relating to an alcoholic beverage, the Council may revoke the license, suspend the license for a period not to exceed 60 days, or impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions. The civil penalty and/or suspension and revocation imposed pursuant to this section shall be based on the licensee’s total number of violations at the specific location, at which the violation occurred, within the preceding 24-month period as follows:
(a) First violation: up to $500 or purchase and use of automated age verification system;
(b) Second violation: up to $1,000 and up to three days license suspension;
(c) Third violation: up to $2,000 and up to 12 days license suspension of license; and
(d) Fourth violation: up to $2,000, plus license suspension of not less than five days nor more than 60 days or revocation as determined by the City Council.
(2) Payment of the civil penalty shall be made within 30 days of issuance of the citation referred to in this subsection (2). A suspension for a third violation under this section shall be served for consecutive days starting on the first Monday following the later of the expiration of the time to request a hearing under this subsection (2), if a hearing is not requested, or, if a hearing has been timely requested, the date a decision is rendered pursuant to division (B)(4) of this section that a violation occurred. A suspension for a fourth violation under this section shall be served in the manner and at such time as decided by the City Council.
(B) Notification, hearing and appeal. The following notification, hearing and appeals process will apply to violations of this section.
(1) Notice. Upon discovery of a suspected violation of this section, the alleged violator shall be issued, either personally or by mail, a citation that sets forth the alleged violations and which shall inform the alleged violator of his or her right to be heard on the accusation. The person responsible for the violation must either pay the scheduled fine or request a hearing under subsection (2) below. Payment of the fine constitutes admission of the violation.
(2) Hearings. No suspension or revocation shall take effect until the license holder has been given an opportunity for a hearing before the hearing examiner, pursuant to M.S. §§ 14.57 through 14.69, as they may be amended from time to time. Unless a hearing is required as stated in the first sentence of this subsection (2), any person accused of violating this section who desires a hearing must submit a request to the hearing examiner within 15 days after issuance of the citation. A hearing requested, or in the case of suspension or revocation, required, in accordance with this section shall be scheduled by the hearing examiner for a date not to exceed 45 days from receipt of the request or in the case of suspension or revocation, within 45 days from the date of issuance of the citation. Notice of the hearing must be served in person or by mail on the person responsible for the violation at least 15 days in advance of the hearing, unless a shorter time is accepted by all parties. Such notice shall contain the time, place and issues involved, but if by reason of the nature of the case, the issues cannot be fully stated in advance of the hearing, or if subsequent amendment of the issues is necessary, they shall be fully stated as soon as practicable, and opportunity shall be afforded to the holder of the license to present evidence and argument with respect thereto.
(3) Hearing Examiner. The City Council may designate the entire Council, a committee of the Council, a member thereof or an employee of the Office of Administrative Hearings to serve as hearing examiner.
(4) Decision. If it is determined at a hearing that a violation of this section occurred, that decision along with the reasons for finding a violation and the penalty to be imposed under this section shall be recorded in writing, a copy of which shall be provided to the accused violator and the City Council if it is not the hearing examiner. In the case of a fourth violation, if the City Council has designated someone other than the entire Council to serve as the hearing examiner, the hearing examiner’s decision and recommendation for the penalty to be imposed shall be referred to the City Council. The City Council shall consider the recommendation of the hearing examiner and impose a penalty within 30 days of the Council’s receipt of the decision. If it is determined at hearing that no violation occurred or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the acquitted violator.
(5) Appeal. Appeal of any decision made by the hearing examiner shall be filed in County District Court.
(C) Continued violation. Each violation and every day in which a violation occurs or continues, shall constitute a separate offense.
(D) Late payment. A late payment fee of 10% of the penalty shall be assessed for each 30-day period in which the penalty remains unpaid after the due date.
(E) Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a petty misdemeanor, misdemeanor or gross misdemeanor for any violation of this section. If the city elects to seek prosecution, an administrative penalty may also be imposed.
(2002 Code, § 11.08)