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CHAPTER 112 LIQUOR REGULATIONS

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CHAPTER 112 LIQUOR REGULATIONS

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    CITY OF MADISON, MINNESOTA

    ORDINANCE NO. 354

AN ORDINANCE AUTHORIZING AND REGULATING THE SALE AND CONSUMPTION

    OF LIQUOR IN THE CITY OF MADISON, MINNESOTA

    GENERAL PROVISIONS

? 112.01 ADOPTION OF STATE LAW BY REFERENCE.

    The provisions of M.S. Chapter 340A, as they may be amended from time to time, with reference to the definition of terms, conditions of operation, restrictions on consumption, provisions relating to sales, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of intoxicating liquor and 3.2 percent malt liquor are hereby adopted by reference and are made a part of this Chapter as if set out in full. It is the intention of the City Council that all future amendments to M.S. Chapter 340A are hereby adopted by reference or referenced as if they had been in existence at the time this Chapter is adopted.

? 112.02 CITY MAY BE MORE RESTRICTIVE THAN STATE LAW.

    The Council is authorized by the provisions of M.S. ? 340A.509, as it may be amended from time to time, to impose, and has imposed in this chapter, additional restrictions on the sale and possession of alcoholic beverages within its limits beyond those contained in M.S. Chapter 340A, as it may be amended from time to time.

? 112.03 DEFINITIONS.

    In addition to the definitions contained in M.S. ? 340A.101, as it may be amended from time to time, the following terms are defined for purposes of this chapter:

    LIQUOR. As used in this chapter, without modification by the words “intoxicating” or “3.2

    percent malt,” includes both intoxicating liquor and 3.2 percent malt liquor.

    RESTAURANT. An eating facility, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public. To be a “restaurant” as defined by this section, an establishment shall have a license from the state as required by M.S. ? 157.16, as it may be amended from time to time, and meet the definition of either a “small establishment,” “medium establishment” or “large establishment” as defined in M.S. ? 157.16,

    Subd. 3d, as it may be amended from time to time. An establishment which serves prepackaged food that receives heat treatment and is served in the package or frozen pizza that is heated and served, shall

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    not be considered to be a restaurant for purposes of this chapter unless it meets the definitions of “small establishment”, “medium establishment” or “large establishment.”

    CLUB. An incorporated organization organized under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which:

(1) has more than 30 members;

    (2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members;

    (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body.

? 112.04 NUDITY ON THE PREMISES OF LICENSED ESTABLISHMENTS PROHIBITED.

    (A) The City Council finds that it is in the best interests of the public health, safety, and general welfare of the people of the city that nudity is prohibited as provided in this section on the premises of any establishment licensed under this chapter. This is to protect and assist the owners, operators, and employees of the establishment, as well as patrons and the public in general, from harm stemming from the physical immediacy and combination of alcohol, nudity, and sex. The Council especially intends to prevent any subliminal endorsement of sexual harassment or activities likely to lead to the possibility of various criminal conduct, including prostitution, sexual assault, and disorderly conduct. The Council also finds that the prohibition of nudity on the premises of any establishment licensed under this chapter, as set forth in this section, reflects the prevailing community standards of the city.

    (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, breasts, and genitals covered with a non-transparent material. It is unlawful for any person to be on the licensed premises when the person does not have his or her buttocks, anus, breasts, and genitals covered with a non-transparent material.

    (C) A violation of this section is a misdemeanor punishable as provided by law, and is justification for revocation or suspension of any liquor, wine, or 3.2 percent malt liquor license or the imposition of a civil penalty under the provisions of ? 112.99(B).

    Penalty, see ? 112.99

? 112.05 CONSUMPTION IN PUBLIC PLACES.

    No person shall consume intoxicating liquor or 3.2 percent malt liquor in a public park, on any public street, sidewalk, parking lot or alley, or in any public place other than on the premises of an establishment licensed under this chapter, in a municipal liquor dispensary if one exists in the city, or where the consumption and display of liquor is lawfully permitted unless otherwise permitted by Council, such as with a special permit, unless otherwise permitted by the Council. Nothing in this

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    section shall be construed to prohibit the consumption of 3.2 percent malt liquor in a public park purchased from an on-site concession stand with a valid license and lease from the city. Penalty, see ? 112.99

     LICENSING

? 112.20 NUMBER OF LICENSES WHICH MAY BE ISSUED.

    The city may issue as many licenses as permitted by the state law. The Council shall not be required to issue the full number of licenses that it has available.

? 112.21 TERM AND EXPIRATION OF LICENSES.

    Each license shall be issued for a maximum period of one year. All licenses, except temporary licenses, shall expire on December 31 of each year unless another date is provided by ordinance. All licenses shall expire on the same date. Temporary licenses expire according to their terms. Consumption and display permits issued by the Commissioner of Public Safety, and the accompanying city consent to the permit, shall expire on March 31 of each year.

? 112.22 KINDS OF LIQUOR LICENSES.

    The Council of a city is authorized to issue the following licenses and permits, up to the number specified in ? 112.20.

    (A) 3.2 percent malt liquor on-sale licenses, which may be issued only to golf courses, 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.

    (B) 3.2 percent malt liquor off-sale license.

    (C) Temporary 3.2 percent malt liquor licenses which may be issued only to a club, charitable, religious, or nonprofit organization.

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    (D) On-sale intoxicating liquor licenses, which may be issued to the following establishments as defined by M.S. ? 340A.101, as it may be amended from time to time, and this chapter: hotels, restaurants, bowling centers, theaters, clubs or congressionally chartered veterans organizations, and exclusive liquor stores. Club licenses may be issued only with the approval of the Commissioner of Public Safety. The fee for club licenses established by the Council under ? 112.23 shall not exceed the amounts provided for in M.S. ? 340A.408, Subd. 2b, as it may be amended from time to time. The Council may in its sound discretion authorize a retail on-sale licensee to dispense intoxicating liquor off the licensed premises at a community festival held within the city under the provisions of M.S. ? 340A.404, Subd. 4b, as it may be amended from time to time. The Council may in its sound discretion authorize a retail on-sale licensee to dispense intoxicating liquor off the licensed premises at any convention, banquet, conference, meeting, or social affair conducted on the premises of a sports event, convention, or cultural facility owned by the city, under the provisions of M.S. ? 340A.404, Subd. 4a, as it may be amended from time to time; however, the licensee is prohibited from dispensing intoxicating liquor to any person attending or participating in an amateur athletic event being held on the premises.

    (E) Sunday on-sale intoxicating liquor licenses, only after authorization to do so by voter approval at a general or special election as provided by M.S. ? 340A.504, Subd. 3, as it may be amended from time to time. Sunday on-sale intoxicating liquor licenses may be issued only to a restaurant as defined in ? 112.03, club, bowling center, or hotel which has a seating capacity of at least 30 persons, which holds an on-sale intoxicating liquor license, and which serves liquor only in conjunction with the service of food. The maximum fee for this license, which shall be established by the Council under the provisions of ? 112.23, shall not exceed $200, or the maximum amount provided by M.S. ? 340A.504, Subd. 3c, as it may be amended from time to time.

    (F) Sunday on-sale 3.2 percent malt liquor license.

    (G) Temporary on-sale intoxicating liquor licenses, with the approval of the Commissioner of Public Safety, which may be issued only in connection with a social event sponsored by a club, charitable, religious, or other nonprofit corporation that has existed for at least three years. No license shall be for longer than three consecutive days, and the city shall issue no more than 12 days worth of temporary licenses to any one organization in one calendar year.

    (H) On-sale wine licenses, with the approval of the Commissioner of Public Safety to: theaters, restaurants that have facilities for seating at least 25 guests at one time and meet the criteria of M.S. ? 340A.404, Subd. 5, as it may be amended from time to time, and which meet the definition of restaurant in ? 112.03; and to licensed bed and breakfast facilities which meet the criteria in M.S. ? 340A.401, Subd. 1, as it may be amended from time to time. The fee for an on-sale wine license established by the Council under the provisions of ? 112.23 shall not exceed one-half of the license fee charged for an on-sale intoxicating liquor license. The holder of an on-sale wine license who also holds an on-sale 3.2 percent malt liquor license is authorized to sell malt liquor with a content over 3.2 percent (strong beer) without an additional license. On Sundays, the said establishments may sell wine and strong beer for consumption on the premises in conjunction with the sale of food between the hours of 12 noon Sunday and 1 a.m. on Mondays if it has gross receipts at least 60 percent attributed to the sale of food. The said establishments shall have a Sunday beer license to sell 3.2 percent malt liquor.

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    (I) One day consumption and display permits with the approval of the Commissioner of Public Safety to a nonprofit organization in conjunction with a social activity in the city sponsored by the organization.

    (J) Approval of the issuance of a consumption and display permit by the Commissioner of Public Safety. The maximum amount of the additional fee which may be imposed by the Council on a person who has been issued a consumption and display permit under the provisions of ? 112.23 shall not exceed $300, or the maximum amount permitted by M.S. ? 340A.14, Subd. 6, as it may be amended from time to time. Consumption and display permits shall expire on March 31 of each year.

? 112.23 LICENSE FEES; PRO RATA.

    (A) No license or other fee established by the city shall exceed any limit established by M.S. Chapter 340A, as it may be amended from time to time, for a liquor license.

    (B) The Council may establish from time to time in the Resolution Establishing Fees and Charges the fee for any of the liquor licenses it is authorized to issue. The license fee may not exceed the cost of issuing the license and other costs directly related to the enforcement of the liquor laws and this chapter.

    (C) The fee for all licenses, except temporary licenses, granted after the commencement of the license year shall be prorated on a quarterly basis.

    (D) All license fees shall be paid in full at the time prior to receiving the approved license from the city.

    (E) A refund of a pro rata share of an annual license fee may occur only if authorized by M.S. ? 340A.408, Subd. 5, as it may be amended from time to time.

? 122.24 COUNCIL DISCRETION TO GRANT OR DENY A LICENSE.

    The Council in its sound discretion may either grant or deny the application for any license or for the transfer or renewal of any license. No applicant has a right to a license under this chapter.

? 112.25 APPLICATION FOR LICENSE.

    (A) Form. Every application for a license issued under this chapter shall be on a form provided by the city. Every application shall state the name of the applicant, the applicant's age, representations as to the applicant's character, with references as the Council may require, the type of license applied for, the business in connection with which the proposed license will operate and its location, a description of the premises, whether the applicant is owner and operator of the business, how long the applicant has been in that business at that place, and other information as the Council may require from time to time. An application for an on-sale intoxicating liquor license shall be in the form prescribed by the

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    Commissioner of Public Safety and shall also contain the information required in this section. The form shall be verified and filed with the city. No person shall make a false statement in an application.

    (B) Financial responsibility. Prior to the issuance of any license under this chapter, the applicant shall demonstrate proof of financial responsibility as defined in M.S. ? 340A.409, as it may be amended from time to time, with regard to liability under M.S. ? 340A.801, as it may be amended from time to time. This proof will be filed with the city and the Commissioner of Public Safety. Any liability insurance policy filed as proof of financial responsibility under this section shall conform to M.S. ? 340A.409, as it may be amended from time to time. Operation of a business which is required to be licensed by this chapter without having on file with the city at all times effective proof of financial responsibility is a cause for revocation of the license.

    Penalty, see ? 112.99

? 112.26 DESCRIPTION OF PREMISES.

    The application shall specifically describe the compact and contiguous premises within which liquor may be dispensed and consumed. The description may not include any parking lot or sidewalk.

? 112.27 APPLICATIONS FOR RENEWAL.

    At least 60 days before a license issued under this chapter is to be renewed, an application for renewal shall be filed with the city. The decision whether or not to renew a license rests within the sound discretion of the Council. No licensee has a right to have the license renewed.

? 112.28 TRANSFER OF LICENSE.

    No license issued under this chapter may be transferred without the approval of the Council. Any transfer of stock of a corporate licensee is deemed to be a transfer of the license, and a transfer of stock without prior Council approval is a ground for revocation of the license. An application to transfer a license shall be treated the same as an application for a new license, and all of the provisions of this code applying to applications for a license shall apply.

    Penalty, see ? 112.99

? 112.29 INVESTIGATION.

    On an initial application or for transfer of a liquor license, the city shall conduct a preliminary background and financial investigation of the applicant or contract with the State Commissioner of Public Safety for such an investigation. The Council may also conduct or contract with the State Commissioner of Public Safety for a background and financial investigation on application for renewal of liquor licenses. The applicant shall pay with the application an investigation fee established by council resolution, which shall be in addition to any license fee.

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? 112.30 HEARING AND ISSUANCE.

    The 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 the investigation, the Council shall in its sound discretion grant or deny the application. No license shall become effective until the proof of financial security has been approved by the Commissioner of Public Safety.

? 112.31 RESTRICTIONS ON ISSUANCE.

    (A) Each license shall be issued only to the applicant for the premises described in the application.

    (B) No license shall be granted or renewed for operation on any premises on which taxes, assessments, utility charges, service charges, or other financial claims of the city are delinquent and unpaid.

    (C) No license shall be issued for any place or any business ineligible for a license under state law.

    (D) No license shall be issued to any person who is not a resident of the state. If the applicant is a corporation, all of the shareholders shall be residents of the state.

    (E) No license shall be granted within 100 feet of any active school or active church. The distance is to be measured from the closest side of the church to the closest side of the structure on the premises within which liquor is to be sold. The provisions of this division shall not apply to any license existing on the effective date of this chapter or to the renewal of an existing license.

Penalty, see ? 112.99

? 112.32 CONDITIONS OF LICENSE.

    The failure of a licensee to meet any one of the conditions of the license specified below shall result in a suspension of the license until the condition is met.

     (A) Every licensee is responsible for the conduct of the place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by this chapter and the law equally with the employee.

    (B) Every licensee shall allow any peace officer, health officer, city employee, or any other person designated by the Council to conduct compliance checks and to otherwise enter, inspect, and search the premises of the licensee during business hours and after business hours during the time when customers remain on the premises without a warrant.

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    (C) No on-sale establishment shall display liquor to the public during hours when the sale of liquor is prohibited.

    (E) Compliance with financial responsibility requirements of state law and of this chapter is a continuing condition of any license.

    Penalty, see ? 112.99

? 112.33 HOURS AND DAYS OF SALE.

    (A) No type of intoxicating liquor or malt liquor beverage may be sold between the hours of 1:00 a.m. through 8:00 a.m. Monday through Saturday and 1:00 a.m. through 12 noon. on Sunday. Only 3.2 percent malt liquor may be sold 12 noon Sunday through 1:00 a.m. Monday, unless otherwise noted in this chapter.

    (B) No person shall consume nor shall any on-sale licensee permit any consumption of intoxicating liquor or 3.2 percent malt liquor in an on-sale licensed premises more than 30 minutes after the time when a sale can legally occur.

    (C) No on-sale licensee shall permit any glass, bottle, or other container containing intoxicating liquor or 3.2 percent malt liquor to remain upon any table, bar, stool, or other place where customers are served, more than 30 minutes after the time when a sale can legally occur.

    (D) No person, other than the licensee and any employee, shall remain on the on-sale licensed premises more than 30 minutes after the time when a sale can legally occur.

    (E) Any violation of any condition of this section may be grounds for revocation or suspension of the license.

    Penalty, see ? 112.99

? 112.34 MINORS ON PREMISES.

    (A) No person under the age of 18 years shall be employed in any rooms constituting the place in which intoxicating liquors or 3.2 percent malt liquor are sold at retail on sale, except that persons under the age of 18 may be employed as musicians or to perform the duties of a bus person or dishwashing services in places defined as a restaurant, hotel, motel or other multi-purpose building serving food in rooms in which intoxicating liquors or 3.2 percent malt liquor are sold at retail on sale.

? 112.35 RESTRICTIONS ON PURCHASE AND CONSUMPTION.

    No person shall mix or prepare liquor for consumption in any public place of business unless it has a license to sell on-sale, or a permit from the Commissioner of Public Safety under the provisions of M.S. ? 340A.414, as it may be amended from time to time, which has been approved by the Council, and no person shall consume liquor in any such place.

    Penalty, see ? 112.99

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? 112.36 SUSPENSION AND REVOCATION.

    (A) The Council shall either suspend for a period not to exceed 60 days or revoke any liquor license upon finding that the licensee has failed to comply with any applicable statute, regulation, or provision of this chapter relating to liquor. Except in cases of lapse of proof of financial responsibility, no suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to the Administrative Procedures Act, M.S. ?? 14.57 to 14.70, as it may be amended from time to time. The Council may act as the hearing body under that act, or it may contract with the Office of Hearing Examiners for a hearing officer.

    (B) The following are the minimum periods of suspension or revocation which shall be imposed by the Council for violations of the provisions of this chapter or M. S. Chapter 340A, as it may be amended from time to time or any rules promulgated under that Chapter as they may be amended from time to time:

    (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 where the only license is for 3.2 percent malt liquor, or violation of ? 112.04, the license shall be revoked.

    (2) The license shall be suspended by the Council after a finding under division (A) that the licensee has failed to comply with any applicable statute, rule, or provision of this chapter for at least the minimum periods as follows:

    (a) For the first violation within any three-year period, at least one day suspension in addition to any criminal or civil penalties which may be imposed.

    (b) For a second violation within any three-year period, at least three consecutive days suspension in addition to any criminal or civil penalties which may be imposed.

    (c) For the third violation within any three-year period, at least seven consecutive days suspension in addition to any criminal or civil penalties which may be imposed.

    (d) For a fourth violation within any three-year period, the license shall be revoked.

    (3) The council shall select the day or days during which the license will be suspended.

    (C) 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. Notice of cancellation or lapse of a current liquor liability policy 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 of suspension or revocation of a license may request a hearing thereon and, if a request is made in writing to the Clerk, a hearing before the Council shall be granted within ten days.

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    Any suspension under this division (B) shall continue until the Council determines that the financial responsibility requirements of state law and this chapter have again been met.

    (D) The provisions of ? 112.99 pertaining to administrative penalty may be imposed in addition to or in lieu of any suspension or revocation under this chapter.

    Penalty, see ? 112.99

     MUNICIPAL LIQUOR STORES

? 112.51 EXISTING MUNICIPAL STORES CONTINUED.

    The city has in existence on the effective date of this chapter a municipal liquor store for the sale of intoxicating liquor. Except as provided in ? 112.55, no intoxicating liquor may be sold at retail elsewhere in the city.

    Penalty, see ? 112.99

? 112.52 LOCATION.

    The municipal liquor store shall be located at a suitable place in the city as the Council determines by motion. However, no premises upon which taxes, assessments, or other public charges are delinquent shall be leased for municipal liquor store purposes. The Council shall have the right to establish additional off-sale and on-sale stores at other locations as it may, from time to time, by motion, determine.

? 112.53 OPERATION.

    (A) Manager. The municipal liquor store shall be in the immediate charge of a Liquor Store Manager selected by the Council and paid compensation as is fixed by the Council. The Manager shall not be a person who would be prohibited by law or any provision of this chapter from being eligible for an intoxicating liquor license. The Manager shall operate the municipal liquor store under the Council's direction and shall perform those duties in connection with the store as may be established by the Council. The Manager shall be responsible to the Council for the conduct of the store in full compliance with this chapter and with the laws relating to the sale of intoxicating liquor and 3.2 percent malt liquor.

    (B) Other employees. The Manager may also appoint part-time employees as may be necessary. All employees shall be placed in the appropriate range and step on the same pay schedule as other city

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