CHAPTER 112: LIQUOR REGULATIONS

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CHAPTER 112: LIQUOR REGULATIONS

Section

Intoxicating Liquor Licensing

112.01 Provisions of State Law adopted

112.02 License required

112.03 Application for license

112.04 License fees

112.05 Granting of licenses

112.06 Persons ineligible for license

112.07 Places ineligible for license

112.08 Conditions of license

112.09 Restrictions on purchase and consumption

112.10 Suspension and revocation

3.2 Percent Malt Liquor

112.20 Definition

112.21 License required

112.22 License application

112.23 License fees

112.24 Granting of license

112.25 Persons ineligible for license

112.26 Places ineligible for license

112.27 Conditions of license

112.28 Closing hours

112.29 Clubs

112.30 Suspension and revocation

Municipal Liquor

112.45 On and off-sale dispensary established

112.46 Location and operation

112.47 Dispensary fund created

112.48 Regulation and hours of sale

112.49 Conditions of operation and restrictions on consumption

Licensed Establishments and Nudity

112.60 Nudity on the premises of licensed establishments prohibited

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CHAPTER 112: LIQUOR REGULATIONS

INTOXICATING LIQUOR LICENSING

§ 112.01 PROVISIONS OF STATE LAW ADOPTED.

The provisions of Minn. Stat. Chapter 340A, relating to the definition of terms, licensing,

consumption, sales, financial responsibility of licensees, hours of sale, and all other matters

pertaining to the retail sale, distribution, and consumption of intoxicating liquor are adopted and

made a part of this ordinance as if set out in full.

§ 112.02 LICENSE REQUIRED.

(A) General requirement. No person, except a wholesaler or manufacturer to the extent

authorized under state license, shall directly or indirectly deal in, sell, or keep for sale in the city

any intoxicating liquor without a license to do so as provided in this ordinance. Liquor licenses

shall be of five kinds: on-sale, temporary on-sale, on-sale wine, off-sale, and club licenses.

(B) On-sale licenses. On-sale licenses shall be issued only to hotels, clubs, restaurants, and

exclusive liquor stores, and shall permit on-sale of liquor only.

the qualifications of Minn. Stat. 340A.404, Subd. 5, and shall permit only the sale of wine not

exceeding 14 percent alcohol by volume, for consumption on the licensed premises only, in

conjunction with the sale of food.

(1) Any person that has been issued both an on-sale wine license and an on-sale 3.2

percent malt liquor licence shall be permitted to sell intoxicating malt liquors at on-sale without

obtaining an additional license, provided the license holder’s gross receipts for the previous year

are at least sixty (60) percent attributable to the sale of food.

(D) Temporary on-sale licenses. Subject to the approval of the commissioner of public

safety, temporary on-sale licenses shall be issued only to clubs or charitable, religious, or other

non-profit organizations in existence for at least three years. A temporary license authorizes the

on-sale of intoxicating liquor in connection with a social event within the city sponsored by the

licensee and subject to restrictions imposed by the state liquor act.

(E) Off-sale licenses. Off-sale licenses shall be issued only to drug stores and exclusive

liquor stores and shall permit off-sales of liquor only.

(F) Special club licenses. Special club licenses shall be issued only to incorporated clubs or

congressionally chartered veterans’ organizations which have been in existence at least three

years.

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§ 112.03 APPLICATION FOR LICENSE.

(A) Form. Every application for a license to sell liquor shall state the name of the applicant,

the applicant’s age, representations as to the applicant’s character (with such references as the

council may require), citizenship, the type of license applied for, the business in connection with

which the proposed license will operate and its location, whether the applicant is owner and

operator of the business, how long the applicant has been in that business at that place, and such

other information as the council may require from time to time. Every application shall also

include a copy of each summons received by the applicant under Minn. Stat. 340A.802 during the

preceding year. In addition to containing such information, the application shall be in the form

prescribed by the bureau of criminal apprehension and shall be verified and filed with the city

clerk. No person shall make a false statement in an application.

(B) Financial responsibility. No liquor license may be issued, maintained, or renewed

unless the applicant demonstrates proof of financial responsibility as defined in Minn. Stat.

340A.409 with regard to liability under the statutes, Section 340A.801. Such proof shall be filed

with the commissioner of public safety. Applicants for liquor licenses to whom the requirement

for proof of financial responsibility applies include applicants for wine licenses with sales of less

than $10,000 of wine per year. Any liability insurance policy filed as proof of financial

responsibility under this subdivision shall conform to Minn. Stat. 340A.409.

§ 112.04 LICENSE FEES.

(A) Fees. The fee for a license required herein shall be in an amount as established in the

Ordinance Establishing Fees and Charges adopted pursuant to § 30.11 of this Code, as that

ordinance may be amended from time to time.

(B) Payment. Each application for a license shall be accompanied by a receipt from the city

treasurer for payment in full of the license fee and the fixed investigation fee required under §

112.04 (A), if any. All fees shall be paid into the general fund. If an application for a license is

rejected, the treasurer shall refund the amount paid as the license fee.

application is made during the license year, a license may be issued for the remainder of the year

for a pro rata fee, with any unexpired fraction of a month being counted as one month. Every

license shall expire on the last day of June in each calendar year.

(D) Refunds. No refund of any fee shall be made except as authorized by statute.

§ 112.05. GRANTING OF LICENSES.

(A) Preliminary investigation. On an initial application for an on-sale license and on

application for transfer of an existing on-sale license, the applicant shall pay with the application

an investigation fee of equal to the actual cost of the investigation and the city shall conduct a

preliminary background and financial investigation of the applicant. The application in such case

shall be made on a form prescribed by the state bureau of criminal apprehension and with such

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additional information as the council may require. If the council deems it in the public interest to

have an investigation made on a particular application for renewal of an on-sale license, it shall so

determine. In any case, if the council determines that a comprehensive background and financial

investigation of the applicant is necessary, it may conduct the investigation itself or contract with

the bureau of criminal investigation for the investigation. No license shall be issued, transferred,

or renewed if the results show to the satisfaction of the council that issuance would not be in the

public interest. If an investigation is conducted in the state, the applicant shall be charged the cost,

not to exceed $500. If an investigation outside the state is required, the applicant shall be charged

the cost, not to exceed $10,000, which shall be paid by the applicant after deducting any initial

investigation fee already paid. The fee shall be payable by the applicant whether or not the license

is granted.

(B) Hearing and issuance. The city council shall investigate all facts set out in the

application and not investigated in the preliminary background and financial investigation

conducted pursuant to § 112.04.A above. Opportunity shall be given to any person to be heard for

or against the granting of the license. After the investigation and hearing, the council shall, in its

discretion, grant or refuse the application. No on-sale wine license or off-sale license shall

become effective until it, together with the security furnished by the applicant, has been approved

by the commissioner of public safety.

applicant and for the premises described in the application. No license may be transferred to

another person or place without city council approval. Any transfer of stock of a corporate

licensee is deemed a transfer of the license, and a transfer of stock without prior council approval

is a ground for revocation of the license.

§ 112.06 PERSONS INELIGIBLE FOR LICENSE.

No license shall be granted to any person made ineligible for such a license by state law. No more than one

intoxicating liquor license shall be directly or indirectly issued within the city to any one person.

§ 112.07 PLACES INELIGIBLE FOR LICENSE.

(A) General prohibition. No license shall be issued for any place or any business ineligible

for such a license under state law.

(B) Delinquent taxes and charges. No license shall be granted for operation on any premises

on which taxes, assessments, or other financial claims of the city are delinquent and unpaid.

school or within 500 feet of any church.

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§ 112.08 CONDITIONS OF LICENSE.

(A) In general. Every license is subject to the conditions in the following subdivisions and

all other provisions of this ordinance and of any other applicable ordinance, state law, or

regulation.

(B) Insurance. Compliance with financial responsibility requirements of state law and of this

ordinance is a continuing condition of any license granted pursuant to this ordinance.

establishment, and any sale of alcoholic beverages by any employee authorized to sell such

beverages in the establishment is the act of the licensee.

(D) Inspections. Every licensee shall allow any peace officer, health officer, or properly

designated officer or employee of the city to enter, inspect, and search the premises of the licensee

during business hours without a warrant.

(E) Display during prohibited hours. No on-sale establishment shall display liquor to the

public during hours when the sale of liquor is prohibited.

§ 112.09 RESTRICTIONS ON PURCHASE AND CONSUMPTION.

(A) Liquor in unlicenced places. No person shall mix or prepare liquor for consumption in

any public place or place of business unless it has a license to sell liquor on-sale or a permit

from the commissioner of public safety under Minn. Stat. 340A.414 and no person shall

consume liquor in any such place.

(B) Consumption in public places. No person shall consume liquor on a public highway,

public park, or other public place except in the case where the City Council has granted prior approval for a community celebration or private group event to be held in such a place. City Council approval must be received before the event occurs.

§ 112.10 SUSPENSION AND REVOCATION.

(A) The council shall either suspend for up to 60 days or revoke any liquor license, or impose

a civil fine not to exceed $2,000, for each violation upon a finding that the licensee has failed to

comply with any applicable statute, regulation, or ordinance relating to alcoholic beverages.

Except in cases of failure of financial responsibility no suspension or revocation shall take effect

until the licensee has been afforded an opportunity for a hearing pursuant to Minn. Stat. 14.57 to

14.70 of the administrative procedure act.

(B) Lapse of required dram shop insurance or bond, or withdrawal of a required deposit of

cash or securities, shall effect an immediate suspension of any license issued pursuant to this

ordinance 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 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

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made in writing to the clerk a hearing shall be granted within 10 days or such longer period as may

be requested. Any suspension under this paragraph shall continue until the city council determines

that the financial responsibility requirements of this ordinance have again been met.

3.2 PERCENT MALT LIQUOR LICENSING

§ 112.20 DEFINITION.

3.2 Percent Malt Liquor. 3.2 percent malt liquor (often referred to as 3.2 percent beer) is

malt liquor containing not less than one-half of one percent alcohol by volume nor more than 3.2

percent alcohol by weight.

§ 112.21 LICENSE REQUIRED.

(A) Licenses. No person, except wholesalers and manufacturers to the extent authorized by

law, shall deal in or dispose of by gift, sale, or otherwise, or keep or offer for sale, any 3.2

percent malt liquor within the city without first having received a license as hereinafter provided.

Licenses shall be of three kinds: 1) regular on-sale; 2) temporary on-sale; 3) off-sale.

(B) Regular on-sale. Regular on-sale licenses 3.2 percent malt liquor licenses shall be

granted only to drugstores, restaurants, hotels, clubs, bowling centers, and establishments used

exclusively for the sale of 3.2 percent malt liquor with the incidental sale of tobacco and soft

drinks.

(1) On-sale licenses shall permit the sale of 3.2 percent malt liquor for consumption on the

premises only.

(2) The holder of an on-sale liquor license may sell 3.2 percent malt liquor on-sale without

an additional license.

charitable, religious, or non-profit organizations for the sale of 3.2 percent malt liquor for

consumption on the premises only.

(D) Off-sale. Off-sale licenses shall permit the sale of 3.2 percent malt liquor at retail, in the

original package for consumption off the premises only.

§ 112.22 LICENSE APPLICATION.

(A) Form. Every application for a license to sell 3.2 percent malt liquor shall be made to the

city clerk on a form supplied by the city and containing such information as the clerk or the city

council may require. It shall be unlawful to make any false statement in an application. Every

application for the issuance or renewal of a license shall include a copy of each summons received

by the applicant under Minn. Stat. 340A.802 during the preceding year.

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(B) Proof of financial responsibility. Prior to the issuance of a 3.2 percent malt liquor

license, the applicant shall demonstrate proof of financial responsibility as defined in Minn. Stat.

340A.409, Subd. 1, with reference to liability under the Minn. Stat. 340A.801. Such proof shall

be filed with the commissioner of public safety except that if a license involves sales of 3.2

percent malt liquor of a prospective vendor who is not required by law to file such proof with the

commissioner of public safety, such proof shall be filed with the city clerk. Any liability

insurance policy filed as proof of financial responsibility under the subdivision shall conform to

Minn. Stat. 340A.409.

state law shall be approved as to form by the city attorney. Operation of a business licensed by

this ordinance without having on file with the state insurance commissioner or the city at all times

effective security as required in § 112.22.B is a cause for revocation or suspension of the license.

§ 112.23 LICENSE FEES.

(A) Payment required. Each application for a license shall be accompanied by a receipt from

the city treasurer for payment in full of the required fee for the license. All fees shall be paid into

the general fund of the city. Upon rejection of any application for a license, the treasurer shall

refund the amount paid.

(B) Expiration; pro rata fees. Every license except a temporary license shall expire on the

last day of June in each calendar year. Each license except a temporary license shall be issued for

a period of one year, except that if a portion of the license year has elapsed when the license is

granted, the license shall be issued for the remainder of the year for a pro rata fee. In computing

such a fee, any unexpired fraction of a month shall be counted as one month. A temporary license

shall be issued for a specific period in which a special event to which the sale is incident is being

held and such period shall be stated on the license.

Ordinance Establishing Fees and Charges adopted pursuant to § 30.11 of this Code, as that

ordinance may be amended from time to time.

(D) Refunds. No part of the fee paid for any license issued under this ordinance shall be

refunded except in the following instances upon application to the council within 30 days from the

happening of the event. There shall be refunded a pro rata portion of the fee for the unexpired

period of the license, computed on a monthly basis, if:

(1) The business ceases to operate because of destruction or damage;

(2) The licensee dies;

(3) The business ceases to be lawful for a reason other than a license revocation; or

(4) The licensee ceases to carry on the licensed business under the license.

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§ 112.24 GRANTING OF LICENSE.

(A) Investigation and hearing. The city council shall investigate all facts set out in the

application. Opportunity shall be given to any person to be heard for or against the granting of the

license. After such investigation and hearing, the council shall grant or refuse the application in its

discretion.

(B) Transfers. Each license shall be issued to the applicant only and shall not be

transferrable to another holder. Each license shall be issued only for the premises described in the

application. No license may be transferred to another place without the approval of the council.

§ 112.25 PERSONS INELIGIBLE FOR LICENSE.

No license shall be granted to or held by any person who:

(A) Is under 21 years of age;

(B) Has within five years prior to the application for such license, been convicted of a felony,

or of violating any law of this state or local ordinance relating to the manufacture, sale,

distribution, or possession for sale or distribution of intoxicating liquors, and cannot show

competent evidence under Minn. Stat. 364.03 of sufficient rehabilitation and present fitness to

perform the duties of a 3.2 percent malt liquor licensee;

control of any place where intoxicating liquor or 3.2 percent malt liquor is manufactured;

(D) Is not a citizen or resident alien, is a non-resident of the city;

(E) Is not of good moral character;

(F) Is not the proprietor of the establishment for which the license is issued.

§ 112.26 PLACES INELIGIBLE FOR LICENSE.

(A) Conviction or revocation. No license shall be granted for sale on any premises where a

licensee has been convicted of the violation of this ordinance, or of the state 3.2 percent malt

liquor or liquor law, or where any license hereunder has been revoked for cause until one year has

elapsed after such conviction or revocation.

(B) Distance from schools and churches. No license shall be granted for any place within

500 feet of any public school or within 500 feet of any church. In applying this restriction, the

distance shall be measured between the main front entrances following the route of ordinary

pedestrian travel.

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(C) Financial Claims. No license shall be granted for operation on any premises upon which

taxes or assessments or other financial claims of the city are delinquent and unpaid.

§ 112.27 CONDITIONS OF LICENSE.

(A) General conditions. Every license shall be granted subject to the conditions in the

following subdivisions and all other provisions of this ordinance and of any other applicable

ordinance of the city or state law.

(B) Insurance. Compliance with financial responsibility requirements of state law and of this

ordinance is a continuing condition of any license granted pursuant to this ordinance.

malt liquor shall be sold or served to any obviously intoxicated person or to any person under 21

years of age.

(D) Consumption by minors. No person under the age of 21 years shall be permitted to

consume intoxicating liquor or 3.2 percent malt liquor on the licensed premises.

(E) Interest of manufacturers or wholesalers. No manufacturer or wholesaler of intoxicating

liquor or 3.2 percent malt liquor shall have any ownership of, or interest in, an establishment

licensed to sell at retail contrary to the provisions of Minn. Stat. 340A.301, Subd. 7. No retail

licensee and manufacturer or wholesaler of intoxicating liquor or 3.2 percent malt liquor shall be

parties to any exclusive purchase contract. No retail licensee shall receive any benefits contrary

to law from a manufacturer or wholesaler of intoxicating liquor or 3.2 percent malt liquor and no

such manufacturer or wholesaler shall confer any benefits contrary to law upon a retail licensee.

(F) Sales of intoxicating liquor. No licensee who does not hold a consumption and display

permit shall sell or permit the consumption or display of intoxicating liquors on the licensed

premises or serve any liquids for the purpose of mixing with intoxicating liquor. The presence of

intoxicating liquors on the premises of such a licensee shall be prima facie evidence of possession

of intoxicating liquors for the purpose of sale; and the serving of any liquid for the purpose of

mixing with intoxicating liquors shall be prima facie evidence that intoxicating liquor is being

permitted to be consumed or displayed contrary to this ordinance.

(G) Searches and seizures. Any peace officer may enter, inspect and search the premises of a

licensee during business hours without a search and seizure warrant and may seize all intoxicating

liquors found on the licensed premises in violation of § 112.27.F.

(H) Licensee’s responsibility. Every licensee is responsible for the conduct in the licensed

establishment and any sale of alcoholic beverages by any employee authorized to sell such

beverages is the act of the licensee.

(I) Banquet rooms. A regular on-sale license shall entitle the holder to serve 3.2 percent malt

liquor in a separate room of the licensed premises for banquets or dinners.

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§ 112.28 CLOSING HOURS.

No sale of 3.2 percent malt liquor shall be made on any Sunday between the hours of 2:00 a.m.

and 12:00 noon, nor between the hours of 2:00 a.m. and 8:00 a.m. on any other day of the week.

§ 112.29 CLUBS.

No club shall sell 3.2 percent malt liquor except to members and to guests in the company of

members.

§ 112.30 SUSPENSION AND REVOCATION.

The council shall either suspend for up to 60 days or revoke any 3.2 percent malt liquor

license, or impose a civil fine not to exceed $2,000, for each violation upon a finding that the

licensee has failed to comply with any applicable statute, regulation, or ordinance relating to

alcoholic beverages. Except in cases of failure of financial responsibility, no suspension or

revocation shall take effect until the licensee has been afforded an opportunity for a hearing

pursuant to Minn. Stat. 14.57 to 14.69 of the administrative procedure act. The lapse of required

dram shop insurance or bond, or withdrawal of a required deposit of cash or securities, shall

effect an immediate suspension of any license issued pursuant to this ordinance 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 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 clerk, a

hearing shall be granted within 10 days or such longer period as may be required. Any suspension

under this paragraph shall continue until the city council determines that the financial responsibility

of this ordinance has again been met.

REPEALED - JANUARY 1, 2003 - municipal liquor

MUNICIPAL LIQUOR

§ 112.45 ON AND OFF-SALE DISPENSARY ESTABLISHED.

A municipal on-sale and off-sale dispensary is hereby authorized to be continued within the

city for the sale of intoxicating liquors.

§ 112.46 LOCATION AND OPERATION.

The said municipal on-sale and off-sale dispensary shall be at such places as the council shall

determine by motion and may be either leased or owned by the city. It shall be in the charge of the

person known as the manager, who shall also be selected by the council and who shall be paid

such compensation as the council shall determine. Said manager shall have charge of the operation

of such dispensary and shall have authority to purchase supplies as are necessary and employ such

additional help as the manager may need at a rate of compensation to be first

approved by the council and under rules to be determined by the council. No person under age 18

shall be employed in the municipal dispensaries.

§ 112.47 DISPENSARY FUND CREATED.

A liquor dispensary fund is hereby created into which all revenues received from the operation

of the dispensary shall be deposited and from which all operating and purchase expenses shall be

paid, provided that the initial costs of rent, fixtures, and stock may be paid out of the dispensary

fund of the municipality but such amounts shall be reimbursed to the said dispensary fund out of the

first monies coming into the said liquor dispensary fund not needed for carrying on the said

business.

§ 112.48 REGULATION AND HOURS OF SALE.

No sale of intoxicating liquor shall be made during times prohibited by state law. No opaque

windows shall be used and all sales shall be made in full view of the public. No intoxicating

liquors shall be sold or furnished for habitual drunkards or to any person obviously under the

influence of intoxicating liquor, or to any person to whom sale is prohibited by statute.

§ 112.49 CONDITIONS OF OPERATION AND RESTRICTIONS ON CONSUMPTION.

No slot machines, dice or any other gambling device shall be kept, operated, permitted,

maintained, or used on the premises and no gambling shall be permitted on the premises. No

person of a known immoral character or any disorderly person shall be permitted on the premises.

No business other than those permitted by law shall be carried on by the dispensary or by any

person employed therein during the time so employed or while said dispensary is open to the

public. The premises occupied by these dispensaries shall be duly inspected by the council or its

designee at least once a month and as many other times as council or its designee deems necessary

to see that said premises are in a sanitary condition. No person shall be permitted to loaf or loiter

habitually about the dispensaries.

LICENSED ESTABLISHMENTS AND NUDITY

§ 112.60 NUDITY ON THE PREMISES OF LICENSED ESTABLISHMENTS

PROHIBITED.

(A) The City Council finds it be in the best interests of the public health, safety and general

welfare of the people of this city that certain types of activities are prohibited as provided in this

section upon the premises of licensed liquor, wine and 3.2 malt liquor establishments so as to best

protect and assist the owners and operators and employees of these premises, as well as patrons

and the public in general. The Council also finds that the standard set forth in this section reflect

the prevailing community standards of the city. The provisions of this section are intended to

prevent harm stemming from the physical immediacy and combination of alcohol, nudity and sex.

The Council also intends to prevent any subliminal endorsement of sexual harassment or

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activities likely to lead to the possibility of various criminal conduct, including prostitution, sexual

assault and disorderly conduct.

(B) It is unlawful for any licensee to permit or allow any person or persons on the licensed

premises when the person does not have his or her buttocks, anus, breast, and genitals covered

with a nontransparent material.

suspension of any liquor, wine or 3.2 malt beverage license.