(A) Penalty for noncompliance. In addition to any criminal penalties which may be imposed by a court of law, the City Council may suspend a license for up to 60 days, may revoke a license and/or may impose a civil fine on a licensee not to exceed $2,000 for each violation on a finding that the license holder or its employee has failed to comply with a statute, rule or ordinance relating to alcoholic beverages, non- intoxicating malt liquor or wine. Conviction of a violation in a court of law is not required in order for the Council to impose the civil penalty.
(B) Minimum penalty. The purpose of this section is to establish a standard by which the CityCouncil determines the civil fine, the length of license suspensions and the propriety of revocations, 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 certain extenuating or aggravating circumstances, 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 or, in the converse, when a licensee has a history of repeated violations of state or local liquor laws. When deviating from these standards, the Council will provide written findings that support the penalty selected. When a violation occurs, the staff shall provide information to the City Council to either assess the presumptive penalty or depart upward or downward based on extenuating or aggravating circumstances. The staff shall notify the licensee of the information being considered and acted upon by the City Council.
(1) Except as otherwise provided in this chapter, the following violations will subject the licensee to the following administrative penalties:
Type of Violation | 1st Violation | 2nd Violation | 3rd Violation | 4th Violation |
Type of Violation | 1st Violation | 2nd Violation | 3rd Violation | 4th Violation |
Sale of alcoholic beverage to a person under the age of 21 | $250 | $1,000 and 1 day suspension | $2,000 and 5 day suspension | Revocation |
Sale of alcoholic beverage to an obviously intoxicated person | $250 | $1,000 and 1 day suspension | $2,000 and 5 day suspension | Revocation |
Failure of an on-sale licensee to take reasonable steps to prevent a person from leaving the premises with an alcoholic beverage (on-sale allowing off-sale) | $250 | $1,000 and 1 day suspension | $2,000 and 5 day suspension | Revocation |
Refusal to allow city inspectors or police admission to premises | $1,000 and 7 days suspension | $2,000 and 14 days suspension | Revocation | N/A |
After hours sale, possession by a patron or consumption of alcoholic beverages | $1,000 and 7 days suspension | $1,000 and 14 days suspension | Revocation | N/A |
Illegal gambling on premises | $1,000 and 7 days suspension | $2,000 and 14 days suspension | Revocation | N/A |
Sale of alcoholic beverages while license is under suspension | 60 day suspension | Revocation | N/A | N/A |
Sale of intoxicating liquor with only 3.2% malt liquor license | Revocation | N/A | N/A | N/A |
Commission of a felony related to licensed activity | Revocation | N/A | N/A | N/A |
(2) Any prior violation that occurred more than 24 calendar months immediately preceding the most current violation will not be considered in determining successive violations.
(3) In addition to the administrative penalties identified above, the city may in appropriate circumstances choose to not renew a license at the end of its current term for any and all reasons allowed by law.
(4) Lapse of required proof of financial responsibility shall effect an immediate suspension of any license issued pursuant to this chapter or state law without further action of the Council.
(C) Hearing and notice. If, after considering the staff's information, the City Council proposes to suspend or revoke a license, the licensee shall be provided written notice of the City Council's proposed action and shall be given the opportunity to request a hearing on the proposed penalty by providing the city a written notice requesting a hearing within ten days of the mailing of the notice of the City Council's proposed action. The notice of the proposed action of the City Council shall state the nature of the charges against the licensee and the action the City Council proposes to take, shall inform the licensee of the right to request a hearing prior to the action being final, and shall inform the licensee of the date the City Council's proposed action will be considered a final decision if a hearing is not requested. Any hearing, if requested, will be conducted in accordance with M.S. § 340A.415 and §§ 14.57 to 14.69 of the Administrative Procedures Act ("APA"). If a hearing is requested, the licensee shall be provided a hearing notice at least ten days prior to the hearing, which shall state the date, time and place of the hearing and the issues involved in the hearing. An independent hearing officer shall conduct the hearing and shall make a report and recommendation to the City Council pursuant to the provisions of the APA. The City Council shall consider the independent hearing examiner's recommendation and issue its final decision on the suspension or revocation.
(1) Non-payment of the penalty is grounds for suspension or revocation of the license.
(2) Suspension or revocation shall occur within 60 days following a violation for which the suspension or revocation is imposed.
(3) Suspensions will be applied as a starting point on a Saturday, and move in a backwards manner through the weekdays until the full length of the suspension is plotted.
(Ord. 707, passed 6-21-2011; Am. Ord. 710, passed 11-15-2011; Am. Ord. 749, passed 1-19- 2016)