(A) Application. All applications shall be made at the office of the City Clerk upon forms prescribed by the city or, if by the state, then together with 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.
(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 an application or any willful omission to state any information called for on the application form shall, upon discovery of the 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 of the initial application, an applicant for an on-sale liquor, wine or beer license or off-sale liquor or beer license shall pay to the city a non-refundable base application and investigation fee in the amount set forth in the current city fee schedule. An additional fee for each person or entity beyond five having an interest in the proposed licensed establishment shall be required in the amount set forth in the current city fee schedule. An escrow of $1,000 for applicants residing outside of the state shall be required to reimburse the city for out-of-pocket investigative costs and the escrow shall be released upon payment in full of actual investigation costs. A non-refundable investigation fee shall be paid to the city for all changes in managers in the amount set forth in the current city fee schedule. No fee shall be required of an applicant for a temporary liquor or 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 approval of the issuance 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 Clerk shall forthwith issue a license pursuant thereto in the form prescribed by the city or the proper department of the state, as the case may be, and upon payment of the license fee. All licenses shall be on a calendar-year basis unless otherwise specified herein. For licenses issued and which are to become effective other than on the first day of the license 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) License refund in certain cases. A pro rata share of an annual license fee for a license to sell liquor or beer, either on-sale or off-sale, shall be refunded to the licensee or to his or her estate, if:
(a) The business ceases to operate because of destruction or damage;
(b) The licensee dies;
(c) The business ceases to be lawful for a reason other than a license revocation or suspension; or
(d) The licensee ceases to carry on the licensed business under the license.
(4) Transfer. No license shall be transferable between persons or to a different location. Any change in individual ownership or substitution of partners is a transfer. However, a change in corporate name of a beer licensee shall not be considered a transfer if at least 90% of the issued and outstanding shares are in the same ownership as at the time of original application and § 111.005 has not been violated. It is unlawful to make any transfer in violation of this division.
(5) 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.
(6) Violation. For this section, a violation shall be defined as any failure to comply with a statute, regulation or provision of the city code relating to alcoholic beverages. A peace officer or an agent of the state liquor control commission who becomes aware of a violation, regardless of whether any action is taken to issue an oral or written warning, a citation or a complaint, shall prepare a written report of the violation. One copy of the report shall be given to the Chief of Police, the licensee, and the City Clerk, respectively. A violation by an officer, employee or agent of the licensee shall be deemed to be a violation by the licensee.
(7) Penalty. Upon a finding that the licensee has sold alcoholic beverages to another retail licensee for the purpose of resale; purchased alcoholic beverages from another retail licensee for the purposes of resale; conducted or permitted the conduct of gambling on the licensed premises in violation of the law; failed to remove or dispose of alcoholic beverages when ordered by the Commissioner to do so under Minnesota Statutes; or failed to comply with any other applicable state statute or rule, or code provision herein relating to alcoholic beverages, a civil penalty of $500 for the first violation, $1,000 for the second violation within a 24-month period, and $1,500 and a seven-day suspension of license for a third violation within a 24-month period shall be imposed upon the licensee who shall pay the civil penalty within 30 days of the date of a notice from the city. Notwithstanding the foregoing civil penalties, a civil penalty of $2,000 and 30-days’ suspension of the license, unless a greater civil penalty, suspension or revocation is otherwise determined by City Council, shall be imposed upon a licensee upon the fourth or more violation within a 36-month period. The foregoing penalties shall not restrict the City Council from ordering the revocation of the license, suspension of the license for up to 60 days, a civil penalty up to $2,000, or impose any combination thereof. If the licensee fails to pay the civil penalty within 30 days of notice, the licensee’s license shall be suspended until the civil penalty, plus any surcharge or interest for late payment, is paid in full.
(8) Hearing. No suspension or revocation of a license or civil penalty under this section shall take effect until the licensee has been given an opportunity for a hearing under the Minnesota Administrative Procedure Act. If the licensee files a request for hearing with the City Clerk within ten business days of the date of the notice of the license action or civil penalty, the City Clerk shall schedule a hearing before a hearing officer duly appointed by the City Council. In the event that the licensee fails to timely request a hearing or fails to appear at a scheduled hearing, the licensee shall be deemed to have waived his or her right to a hearing and shall be subject to the license action or civil penalties imposed hereunder. If the licensee timely requests a hearing, the hearing shall be held before the hearing officer within 14 days of the date the licensee files a request for hearing with the City Clerk. Upon conclusion of the hearing, the hearing officer shall issue written findings of fact and conclusions as to whether a violation has occurred and the penalty imposed as authorized herein. If the hearing involves a fourth or more violation by the licensee, the hearing officer shall present written findings of fact and conclusions to the City Council for its consideration of additional penalties, including revocation of the license.
(9) Additional restrictions. 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 action:
(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 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 alleged illegal acts upon licensed premises; or
(d) The activities of the licensee created a serious danger to public health, safety, or welfare.
(10) 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 a 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 Clerk 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 any license shall be revoked 30 days after any change in ownership or beneficial interest of shares unless the City Council has been notified of the change in writing and has approved it by appropriate action. The City 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 administrative hearing officer on notice to the licensee.
(E) Duplicate licenses. Duplicates of all original licenses under this chapter may be issued by the City Clerk subject to approval by the Council, upon licensee’s affidavit that the original has been lost, and upon payment of a fee for issuance of the duplicate as set forth in the current city fee schedule. 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.
(1) Before a license is issued under this chapter to an individual who is a nonresident of the state, to more than one individual whether or not they are residents of the state, or to a corporation, company, partnership, or association, the applicant or applicants shall appoint in writing a natural person who is a resident of the state as its manager or agent.
(2) The resident manager or agent shall, by the terms of his or her written consent:
(a) Take full responsibility for the conduct of the licensed premises; and
(b) Serve as agent for service of notices and other process relating to the license.
(3) 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 state 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 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 any 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 or wholesaler may have a direct or indirect interest, in whole or in part, in a business holding an alcoholic beverage license from the city.
(Ord. 2006-4-2, passed 4-24-2006)