CR 2014-058 Approve First Reading of Ordinance amending section 1200 of the City Code::e
e'
July 1, 2014 Council Report 2014-058
Approve Ordinance Amending to Section 1200 of the Hopkins City Code:
Sale, Consumption and Display of Alcohol Beverages
Proposed Action
Staff recommends adoption of the following motion: Move to adopt for first reading Ordinance 2014-
1072, amending section 1200 of the Hopkins City Code allowing Sunday Sales with On -Sale Brewer
Taproom Licenses and changing the he requirements for On -Sale Wine Licenses.
Adoption of this motion will begin the process of amending Section 1200 of the Hopkins City Code to
allow for Sunday Sales with On -Sale Brewer Taproom Licenses and change the requirements for On -
Sale Wine Licenses.
Overview
Minnesota Senate File 2336 includes various changes to liquor license requirements. Changes
included language to allow Sunday Sales at On -Sale Brewer Taprooms between the hours of 10 a.m.
Sunday to 1:00 a.m. Mondays. On -Sale Wine Licenses requirements changed to allow up to 24 percent
alcohol by volume for consumption without the sale of food and no longer require gross receipts from
the sale of food to be at least 60%.
Primary Issues to Consider
Should the Hopkins City Code Chapter 12 be amended to add Sunday Sales with On -Sale
Brewer Taproom licenses?
Supporting Documents
• Excerpt from SF 2336
• Proposed Ordinance 2014-1072
Amy Domeier, City Clerk
Financial Impact: $ Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
CR 2014-058
Page 2
Background
MN Statute 340A.301, subdivision 6b, now allows for municipalities to issue Sunday sales liquor
licenses to On -Sale Brewer Taprooms within its jurisdiction. Prior to the amendment, statute only
allowed certain establishments which served food to serve alcohol on Sundays. Under that statute, in
order to engage in on -sales, the establishment must obtain a Sunday License, issued by the governing
body for a period of one year and the license fee may not exceed $200. The City already permits
Sunday sales for licensees that qualify under Section 1200.15 during the hours of 10:00 a.m. on
Sundays to 1:00 a.m. on Mondays. The current fee set by Ordinance is $200.
As part of SF 2336, MN Statute 340A.404, subdivision 5, rules surrounding the issuance of wine
licenses to restaurants were also revised. Licensed restaurants will now be allowed to sell wine
containing up to 24 percent alcohol by volume, up from an earlier 14 percent limit. And previous
language that required restaurants with wine licenses to make up 60 percent of their gross receipts
through food sales was removed as part of the latest bill. The City currently has six On -Sale Wine
Licenses issued.
The draft ordinance is in the process of final review by the City Attorney.
A ltiwn ntivPc
1. Approve Ordinance 2014-1072 for first reading.
2. Continue the item for additional information.
Staff recommends alternative one.
EXCERPT FROM SF 2336
Sec. 6. Minnesota Statutes 2013 Supplement, section 340A.301, subdivision 6b,
is amended to read:
Subd. 6b. Brewer taproom license.
(a) A municipality, including a city with a municipal liquor store, may issue the holder of a
brewer's license under subdivision 6, clause (c), (i), or 0), a brewer taproom license. A brewer
taproom license authorizes on -sale of malt liquor produced by the brewer for consumption on the
premises of or adjacent to one brewery location owned by the brewer. Nothing in this
subdivision precludes the holder of a brewer taproom license from also holding a license to
operate a restaurant at the brewery. Section 340A.409 shall apply to a license issued under this
subdivision. All provisions of this chapter that apply to a retail liquor license shall apply to a
license issued under this subdivision unless the provision is explicitly inconsistent with this
subdivision.
(b) A brewer may only have one taproom license under this subdivision, and may not have an
ownership interest in a brewery licensed under subdivision 6, clause (d).
(c) A municipality may not issue a brewer taproom license to a brewer if the brewer seeking the
license, or any person having an economic interest in the brewer seeking the license or exercising
control over the brewer seeking the license, is a brewer that brews more than 250,000 barrels of
malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.
(d) The municipality shall impose a licensing fee on a brewer holding a brewer taproom license
under this subdivision, subject to limitations applicable to license fees under section 340A.408,
subdivision 2, paragraph (a).
(e) A municipality shall, within ten days of the issuance of a license under this subdivision,
inform the commissioner of the licensee's name and address and trade name, and the effective
date and expiration date of the license. The municipality shall also inform the commissioner of a
license transfer, cancellation, suspension, or revocation during the license period.
(f) Notwithstanding section 340A.504, subdivision 3, a taproom may be open and may conduct
on -sale business on Sundays if authorized by the municipality.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 340A.404, subdivision 5, is amended to read:
Subd. 5. Wine licenses.
(a) A municipality may issue an on -sale wine license with
the approval of the commissioner to a restaurant having facilities for seating at least 25 guests at
one time. A wine license permits the sale of wine of up to 44 24 percent alcohol by volume for
consumption v�,44 too sale offood. A wine license authorizes the sale of wine on all days of the
week unless the issuing authority restricts the license's authorization to the sale of wine on all
days except Sundays.
(b) The governing body of a municipality may by ordinance authorize a holder of an on -sale
wine license issued pursuant to paragraph (a) who is also licensed to sell 3.2 percent malt liquors
at on -sale pursuant to section 340A.411, a groneoat:e at least
„tt..:i t4ab'„ to she sa4e of food, to sell intoxicating malt liquors at on -sale without an additional
license.
(c) A municipality may issue an on -sale wine license with the approval of the commissioner to a
licensed bed and breakfast facility. A license under this paragraph authorizes a bed and breakfast
facility to furnish wine only to registered guests of the facility and, if the facility contains a
licensed commercial kitchen, also to guests attending private events at the facility.
(d) The State Agricultural Society may issue an on -sale wine license to the holder of a state fair
concession contract pursuant to section 37.21, subdivision 2.
EFFECTIVE DATE. This section is effective the day following final enactment.
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2014-1072
ORDINANCE AMENDING SECTION 1200 SALE, CONSUMPTION
AND DISPLAY OF ALCOHOLIC BEVERAGES OF THE HOPKINS
CITY CODE TO ALLOW SUNDAY SALES WITH ON -SALE BREWER TAPROOM
LICENSES AND CHANGE THE REQUIREMENTS FOR ON -SALE WINE LICENSES
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. That Section 1200.15 is amended by adding the following:
Special license for Sunday sales. A special license authorizing sales on Sunday in conjunction
with the serving of food may be issued to any hotel, restaurant, Bowling Center or club which has
facilities for serving at least 30 guests at one time, and which has an on -sale license. A special
license authorizing sales on Sunday may be issued to a license holder of an On -Sale Brewer
Taproom license for the operation of a taproom on Sundays.
Section 2. That Section 1200.46, Subd. 3, is amended by adding the following:
Intoxicating liquor; Sunday sales; on -sale. A licensee that holds a special Sunday on -sale
intoxicating liquor license may sell intoxicating liquor for consumption on the premises between
the hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays except as stated in Section
1200.46, Subd. 4. A holder of an On -Sale Taproom License for Sunday Sales under Section
1200.15 may conduct on -sale business on Sundays between the hours of 10:00 a.m. on Sundays
and 1:00 a.m. on Mondays.
Section 3. Hopkins City Code, Section 1200.07, Subd. 1, is amended by adding the following:
On -sale wine licenses shall be issued only to restaurants meeting the qualifications of Minnesota
Statutes Section 340A.404. Subdivision 5, and shall permit only the sale of wine not exceeding
4-4 24 percent alcohol by volume, for consumption on the licensed premises only,
,v�,44 t4e sale offood.
Section 4. Hopkins City Code, Section 1200.07, Subd. 2, is amended to read as follows:
The holder of an on -sale wine license who is also licensed to sell 3.2 percent malt liquors at on -
sale , may sell
intoxicating malt liquors at on -sale without an additional license.
Ordinance No. 2014-1072
Section 5. The effective date of this ordinance shall be the date of publication.
First Reading: June 17, 2014
Second Reading: July 1, 2014
Date of Publication: July 10, 2014
Date Ordinance Takes Effect: July 10, 2014
LO -A
ATTEST:
Amy Domeier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature
Eugene J. Maxwell, Mayor
Date