Memo - Discussion Of Policy 4-B, Liquor Law Violations
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. Administrative Services Department
Office of the City Manager
Memorandum
To: Honorable Mayor and Members of the City Council
From: Steven C. Mielke, City Manage~ ' '
Date: March 19,2004
Subject: Discussion of Policy 4-B, Liquor Law Violations
In the most recent alcohol compliance check conducted on off-sale liquor
establishments, four of the eight establishments failed the check, selling alcohol to a
minor.
In 1989 the City Council established general policies regarding liquor license violations.
This policy is now classified as Policy 4-8 in the Legislative Policy Manual. Through the
. ' years this policy has been used by the city to administer sanctions for violations of
liquor laws.
, Backqround on Current Policy
In the mid-1980's the City Council dealt with a number of violations to the liquor laws.
In each case the City Council held a hearing as required by law, and listened to
evidence on both sides of the issue, ultimately determining how to proceed. Due to the
difficulty of this process the City Council adopted a policy in 1987, which was eventually
amended slightly in 1989 providing presumptive penalties for various types of violations.
They empowered the City Manager to negotiate penalties with the violator in an attempt
to simplify the process of determining the sanction for liquor violations: The current
policy, however, does not usurp the license holders ability to have a hearing before the
Council should they wish to do so.
Throughout the late '80's and '90's the policy has been used and most have utilized the
administrative process, rather than seeking a hearing with the City Council.
The presumptive penalties that are part of the current policy, leave quite a bit of
discretion to negotiations, theoretically based upon the conditions of the violation.
Since there is a negotiation held, quite a bit of discussion happens between the City
Manager and the license holder with a judgment call being made as to the level of
penalty to be assessed. If the City Manager and the license holder are unable to agree
upon a presumptive penalty, the item automatically goes to the City Council for a
decision.
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Discussion of Policy 4-B, Liquor Law Violations
Page 2
. Discussion
While the existing policy has worked reasonably well, there are a number of issues that '
have been problematic from time to time. Additionally, staff believes there may be
better options for enforcement and inducements for better compliance by license
holders. These items include:
. Council concurrence with the negotiated agreement under the current policy
. Cost of compliance checks and enforcement activities
. Consideration of requiring mandatory ID checks, '
On one or two occasions the City Manager has negotiated a proposed agreement with
a license holder and brought it forward to the City Council. Under the current policy, the
, City Council is allowed to reject the agreement and either direct the manager to attempt
a different negotiated settlement, or to require a hearing in front of the City Council.
This creates confusion when it occurs, even though it is proper and authorized for the
Council to have the authority to do so. A list of standardized penalties for violations
without the negotiation would give clear direCtion to the City Manager and to the license
holders on the Council's directives relative to penalties. On the other hand, the removal
ofthis negotiation also restricts the Council's ability to recognize violations that may be ' '
more blatant than others.
Staff is aware of at least one city (Plymouth) that has standardized its penalties but
. gives leeway to those organizations who are taking proactive steps to minimize the
chances of having a violation through various activities. This carrot and stick approach
gives a greater chance for organizations to meet and comply with the law, but have a
reduced penalty if a mistake is made. In reviewing the Plymouth process, there is a
heavy involvement from the police department in training and assisting organizations
that wish to be proactive in their compliance activities. Staff is concerned about the
cost of the Plymouth system in Hopkins.
It is argUable that compliance checks on a more frequent basis will perhaps lead to
greater compliance by licensed sellers. The theory being that if the sellers do not
believe there is much chance of getting caught, they are more likely to be lax in their
compliance activities. Once again, cost becomes a consideration in that compliance
checks are somewhat expensive to conduct, without any revenue to support the activity.
Historically, revenues from the fines have gone towards the Chemical Health
Commission for education purposes. It could be changed to using those fines for
compliance activities within the police department, thus offsetting some of the cost of
doing compliance checks. '
A final consideration would be the idea of mandating ID checks on all purchasers of
alcoholic beverages, both on- and off-sale. During compliance checks, the majority of
violations occur because the violator did not ask for an ID. Mandating 10 checks may
, help in compliance. There are also technological answers to checking ID's, such as
license reading machines that mayor may not be connected to cash registers. The
difficulty with this may be the cost for the smaller operations.
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Discussion of Policy 4-B, Liquor Law Violations
Page 3
. SUmmary
The last round of compliance checks was disappointing in that 50 percent of the off-
sale license holders failed the compliance check. The logical conch..isiorl is that alcohol
is being sold to minors. Inasmuch as this runs counter to the goals of the Chemical
Health Commission and the City Council, staff is looking for ways in which to increase
compliance with Hquorlaws;, Staff is looking for direction from the City Council on
whether or not the current system should be altered.
Attachments
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.
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. POLICY 4-B
LIQUOR LAW VIOLATIONS
1. PURPOSE
1.01 It is the intent of this policy to inform the public and business community in the
City of Hopkins that henceforth all criminal violations of liquor laws and
ordinances will result in automatic administrative action. Nothing in this policy
concerning the administrative procedures that will be followed in the event of
criminal violations of liquor laws and ordinances shall detract from the Council's
authority to impose sanctions for violations of other criminal laws occurring on
the premises of licensees or for complaints of non-criminal conduct.
2. PROCEDURE
2.01 In the event of any reports by the Hopkins Police Department of violations of the
laws of the State of Minnesota or the ordinances of the City of Hopkins relating to,
alcoholic beverages, the administration is directed to take the following action:
1. Notify the Council ofthe report.
2. Monitor the Criminal case resulting from the report.
3. If' the crhninal case is dismissed or results in an acquittal or if the
administration otherwise finds the evidence of the violation unreliable, the
Council shall be So informed. The Council, at that time, shall decide whether
. to dismiSS the matter or proceed.
4. If the criminal case results in a conviction or payment of the court cost or if
the administration otherwise finds the evidence reliable, the City Manager
shall meet with the licensee and invite the licensee to sign a conditional
admission and waiver of hearing that includes a proposed sanction.
5. If the conditional admission is signed, it shall be presented to the Council for
approval or other action.
6. If the conditional admission isn.ot signed, the licensee shall be provided
notice of a suspension/revocation hearing and the matter shall be set down. on
the Coun.cil agenda for hearing.
7. The hearing will be in. accord with the Administrative Procedure Act. Mitin.
Stat. 14.51 to 14.70. The hearing shall be recorded, the City Manager shall
present the evidence establishing the violation, and the licensee shall have the
right to cross-examin.e witnesses, present evidence, and make a statemen.t to
the Council. The council will issue written findings on whether a violation
occurred.
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. 3. :PRESUMPTIVE :PENAL TIES FOR VIOLATIONS
3.01 the following list of presumptive penalties be assessed as deemed nece'ssary:
Tvpe of Violation 1st Violation 2nd Violation 3rd Violation
1) Commission of a 10 - 25 consecutive Revocation N/A
felony related to the days of suspension
, licensed activitv.,
2) Sale of alcoholic 10 - 25 consecutive Revocation N/A
beverages while 'days of suspension '
license is under
suspension.
3) Sale of alcoholic o - 5 consecutive 6 - 15 consecutive Revocation
beverages to under age days of suspension. days of suspension. '
person.
4) Sale of alcoholic o - 5 consecutive 6 - 15 consecutive 16 consecutive days
beverage to days of suspension. ' days of suspension. of suspension to
intoxicated nerson. Revocation.
5) Sale of alcoholic 0-2 consecutive 3 - 9 consecutive 10 consecutive days
beverages after hours. days of suspension. days of suspension. of suspension to '
Revocation.
6) Illegal gambling on ' o - 3 consecutive 4 - 9 consecutive 10 consecutive days
premIses. days of suspension. days of suspension. of suspension toU
Revocation.
. 7) Permit person to leave 0- 2 consecutive 3 - 5 consecutive 6 - 10 consecutive
premises with days of suspension. days of suspension. days of suspension to
alcoholic beverage. ' , Revocation. '
8) Violations of City o - 5 consecutive 6 - 15 consecutive 16 consecutive days
Ordinancespe.rtallring days of suspension. days of suspension. of suspension to
to fire or building or Revocation.
health codeS.
3.02 Computation of time. For the purpose of determining the number of ocCurrences
of violations, the council shall consider a violation as a second occurrence if it
occurred within 18 calendar months of the first violation; and shall consider a
violation as a third occurrence if it occurred within 30 calendar months of the
second violation.
3.03 Other penalties. Nothing in this section shall restrict or limit the authority of the,
council to suspend up to 60 days, revoke the license, assess a civil fine not to
exceed $2,000, to impose conditions or take any adverse action in accordance
with law, provided that the license holder has been afforded an opportunity for a
hearing.
Established: 5/5/87
Revised: 2/7/S9
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. CITY OF PL YMOUTH
U~21 PROJECT
BEST PRACnCE AGREEMENT
business, operating in the City of Plymouth
with an [on-sale off-sale] [intoxicating wine wine/strong beer malt] liquor
license agrees to be a "Best Practices" establishment.
With this agreement we understand we must agree to several of the following items,
including the first four mandatory items, to a total point value of at least 100 points.
Selected Points Item
15 * Inspectionllnvestigation to ensure criteria are being
met
10 * Minimum 75% of em 10 ees trained b Public Safet
10 * Program in place for on-going training of new and
current em 10 ees
15 * Yearly meeting between designated Operating
Mana ers and de artment ersonnel
25 Participation in TIPS training program with minimum set
. number of em 10 ees certified
10 Policy requiring identification checks for anyone
a earin to be 40 or under
10 Employee reward program (program for rewarding
employees who catch underage persons attempting to
urchase
20 Automated identification card scanner s stem
10 A roved internal com Iiance check ro ram
25 Pre-agreement to meet immediately on violations (meet
with Police Department personnel immediately instead of
waitin for criminal court roceedin s
10 Pre-agreement to work with the police department on
seconda sales
*These four items are mandatory
.
. -.- .
Location of Business: .
Agreement dated this , day of r 2000.
For the Best Practice Establishment: For the City of Plymouth:
Title: Title:
e
Title: Title:
Title: Title:
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Section 1201 - State Law AdoptedlDefinitions Page 1 of2
Section 1201 - State Law Adopted/Definitions
. 1201.01. Provisions of Stat~ Law Adopted. Except to the extent the provisions of this Chapter
are more restrictive, the provisions of Minnesota Statutes, Chapter 340A, as amended, regarding the
tenns, licensing, consumption, 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 adopted and made a
pati of this Chapter as if set out in full.
1201.03. DefjDitiQl1s. For the purposes of this Chapter, and in addition to those definitions
contained in Minnesota Statutes, Chapter 340A, as amended, the tel111S used in this Subsection are
defined as follows:
(a) Disglay: The tenn "Display" means the keeping, storing, or permitting to be kept or
stored of an alcoholic beverage which has been poured, dispensed or has had its package seal
broken on, in, or at any table, booth, bar or other area of a licensed premises accessible to the
general public, except when the alcoholic beverage is stored in a normal storage area during non-
sale hours.
(b) InlE:rest: The tenn "interest" as used in this Chapter includes any pecuniary interest in
the ownership, operation, management or profits ofa liquor establishment, but does not include:
bona fide loans; bona fide fixed sum rental agreements; bona fide open accounts or other
obligations held with or without security arising out of the ordinary and regular course of
business or selling or leasing merchandise, fixtures or supplies to such establishment; or any
interest of 5 percent or less in any corporation holding a City liquor license. A person who
. receives monies, from time to time, directly or indirectly from a licensee in the absence of a bona
fide consideration therefor and excluding bona fide gifts or donations, shall be deemed to have a
pecuniary interest in such retail license. In detemlining "bona fide," the reasonable value 0 r the
goods or things received as consideration for the payment of the licensee and all other facts
reasonably tending to prove or disprove the existence of any purposeful scheme or arrangement
to evade any prohibitions under this Chapter shall be considered.
(c) Licensed Premises: The teml "Licensed Premises" is the premises described in the
approved license application. In the case of a restaurant, club, or exclusive liquor store licensed
for on-sales of a1cohohc beverages and located on a golf course, "licensed premises" means the
entire golf course except for areas where motor vehicles are regularly parked or operated.
(d) Operating}v1allager: The tem1 "Operating Manager" as used in this Chapter means a
person designated by the license holder who works full-time at the licensed premises and is in
charge of day-to-day liquor sales.
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http://www2.ci.plymouth.mn.us/pls/cop/docs/FOLDERJCITY GOY /CG_ CODE/CODE ..' 3/18/2004
Section 1201 - State Law Adopted/Definitions Page 2 of 2
Plymouth City Code 1201.03 (e)
. (e) Properly Designated Officer: The tenn "Properly Designated Officer" means and
includes (i) the Plymouth City Fire Inspector; (ii) the Plymouth City Building Official; and (iii)
the Health Inspectors employed by Hennepin County or the State of MilU1esota acting in the
course of the scope of their employment.
(f) Unclerag~peI~Qn: The term "Underage Person" means a person who is under the legal
drinking age as provided by Mirmesota Statutes Chapter 340A.
(Onl. 98-2, 01/07/98)
.
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http://www2.ci.plymouth.mn.us/pls/cop/docsIFOLDER/CITY _ GOV/CG _ CODE/CODE _'" 3/1 8/2004
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Section 1206 - Retail Licenses Page 1 of 12
Plymouth City Code 1206.01
. Section 1206 - Retail Licenses
1206,01. Licenses Required. No person, except as otherwise provided in Minnesota Statutes
Chapter 340A shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating liquor, 3.2
percent malt liquor, or wine as pari of a commercial transaction without first having received a license to
do so as provided in this Chapter; nor shall any private club or public place, directly or indirectly, or
upon any pretense or by any device, allow the consumption or display of intoxicating liquor or serve any
liquid for the purpose of mixing with intoxicating liquor without first obtaining a license from the City
as provided in this Chapter.
1206.02. Types of Licenses. The following types of licenses are issued under this Chapter:
A. On-Sale IntoxicatingLiguor License. On-sale intoxicating liquor licenses shall be
granted only to hotels, clubs, restaurants, and exclusive liquor stores. A license shall be issued to clubs
and congressionally chartered veterans' organizations if they have been in existence for at least three
years and liquor sales will only be to members and bona fide guests. On-sale intoxicating liquor
licenses are subject to the following conditions:
1. where the licensed premises is a free standing building, the building (exclusive of
land) must have a minimum valuation of $500,000;
It 2. where the licensed premises is located in a shopping center, the licensed premises:
a. may not be an exclusive liquor store;
b, may not permit live music or dancing; and
c. must have a minimum of 150 seats for dining.
3. where the licensed premises is located in an office building the licensed premises
must have a minimum of 150 seats for dining.
B. Off-Sale Intoxicati11KLiguoI. License. Off-sale intoxicating liquor licenses may be
issued to an exclusive liquor store and shall pemlit off-sale of intoxicating liquor and 3.2 percent malt
liquor.
C. WiIl~Lju~nses. Wine licenses may be issued, with the approval of the Commissioner,
only to restaurants having facilities for seating at least 25 people at one time for the sale of wine not
exceeding 14 percent alcohol by volume and for consumption on the licensed premises only in
conjunction with the sale of food. The holder of a wine license who is also licensed to sell 3,2 percent
malt liquor on-sale and whose gross receipts are at least sixty percent (60%) attributable to the sale of
food, may also sell intoxicating malt liquors at on-sale without an additional license.
D. On~S,~le 3.2 Percent Malt Liguor,License. On-sale 3.2 percent malt liquor license may be
issued to bona fide clubs, restaurants, and hotels where food is prepared and served for consumption 011
the premises only,
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http://www2.ci.plymouth.mn.us/pls/cop/docs/FOLDER/CITY _ GOV ICG_ CODE/CODE ... 3/18/2004
Section 1206 - Retail Licenses Page 2 of 12
Plymouth City Code 1206.02, Subd. E
. E. Off-Sale 3,2_percent Malt Liquor License. Off-sale 3.2 percent malt liquor license may
be issued to general food stores and drug stores and permit the sale of 3.2 percent malt liquor at retai I in
the original package for consumption off the premises only.
F. On-Sale Sunday Liquor License, On-sale Sunday liquor licenses may be issued only to a
hotel or restaurant, with facl1ities for serving not less than fifty (50) guests at one time, to which an on~
sale intoxicating license has been issued. Such license may pennit the sale ofliquor to be consumed on
the premises between the hours of 10:00 a.m. on Sunday and 1 :00 a.m. on Monday in conjunction with
the serving of food provided that the licensee is in conformance with the Minnesota Clean Air Act. No
Sunday license is needed for on-sale wine licenses.
G. Temporary Licenses. Temporary on-sale 3.2 percent malt liquor licenses may be issued
to a club or charitable, religious, or nonprofit organization in existence for at least 3 years. The license
may authorize the on-sale of 3.2 malt liquor for not more than 3 consecutive days, and may authorize
on-sales on premises other than premises the licensee owns or permanently occupies. The license may
provide that the licensee may contract for 3.2 malt liquor with the holder ofa full-year on-sale liquor
license issued by the City. The licenses are subject to the temls, including the license fee, normally
imposed by the City. The licenses issued in this Section are subject to all laws and ordinances
governing the sale of liquor, including [umishing a fonn of proof of financial responsibility.
H. Club License_s. Club licenses may be issued to clubs as provided in Minn. Stat. 9
. 340A.404, subd. 1.
I. CQnsumption and Display Permits. Consumption and display permits may be issued to a
bottle club which complies with the requirements of Minn. Stat. S 340A.414 and which has obtained a
permit from the Commissioner of Public Safety. Consumption and display permits shall not be issued in
the City, except to establishments that had been issued such a license on or prior to the effective date of
this ordinance.
1206.03. License Period. Each renewal license shall be issued for a maximum period of one year,
Temporary licenses shall expire according to their terms. All intoxicating liquor licenses expire on
January 31 of each year. All 3.2 percent malt liquor licenses expire on January 31 of each year.
Consumption and display licenses expire on March 31 of each year. (Ord 2000-15, 05/09/2000)
1206.04, Retail Li~J~nsf.F~r.~.
A Annual Fees, The annual fees for all licenses and temporary licenses are set forth in
Chapter X.
B. Prorated fe~s. If a license application is made during the license year, the license shall
be issued for the remainder of the year for a pro rata fee, with any unexpired fraction of a 1110nth being
counted as one month.
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Section 1206 - Retail Licenses Page 3 of 12
Plymouth City Code 1206.04, Subd. C
. C. Paj'ment. The fees for on-sale intoxicating liquor licenses and wine licenses may be paid
in two equal installments 1n advance of February 1 and August 1. License fees shall be paid into the
general fund.
D. Investigation Fees. Investigation fees for all licenses are set forth in Chapter X.
Investigation fees are non-refundable. No investigation fee shall be charged for a renewal application.
At any time that an additional investigation is required because of a change in the control of a corporate
license, change in manager, change in location, or enlargement of the premises, the licensee shall pay an
additional investigation fee. Where a new application is filed as a result of incorporation or a change of
name by an existing licensee and the ownership control and interest in the license are unchanged, no
additional investigation fee will be required.
1206.05, Licens,e Fee Refund,s. License fees shall be refunded if an application for a license is
denied by the City Council, except where rejection is for a willful misstatement in the license
application. No part of the fee paid for any issued license shall be refunded except as authorized under
Minnesota Stahltes Section 340A.408, subd. 5, upon application to the City Clerk within 20 days o[the
happening of any event provided under Minnesota Statutes Section 340A.408, subdivision 5.
1206.06. Liability Insurance. Except as provided in Minn. Stat. 9 304A.409, Subd. 4, all
applicants for any liquor license or consumption and display pennit must, as a condition to the issuance
of the license, demonstrate proof of financial responsibility with regard to liability imposed by
. MilUlcsota Statutes Section 340A.801 to the City, by providing proof of liquor liability/dram shop,
general liability, and workers compensation insurance coverage.
A. Liquor Liab.ilit):/DramsJ1op. Proof of financial responsibility shall be given by filing one
of the following:
1. A certificate that there is in effect an annual aggregate insurance policy for dram
shop insurance of not less than $300,000 per policy year to cover each person,
each occurrence, property
damage each occurrence, loss of means of support per person, loss of means of
support each occurrence, and policy aggregate; or
2. A certificate of the State Treasurer that the licensee has deposited with him
$100,000 in cash or securities which may legally be purchased by savings banks
or trust funds having a market value of $1 00,000.
R General Liability. Proof of financial responsibility shall be given by filing a certificate
that there is in effect for the license period an insurance policy or pool providing at least $50,000 of
coverage because of bodily injury to anyone person in anyone occurrence, $100,000 because of bodi Iy
injury to two or more persons in anyone occurrence, $10,000 because of injury to or destruction of
property of others in anyone occurrence, $50,000 for loss of means of supp0l1 of anyone person in any
one occurrence, and $100,000 for loss of means of support of two or more persons in anyone
occurrence.
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Section 1206 - Retail Licenses Page 4 of 12
Plymouth City Code 1206.06, Subd. C
. C. Workers' CompensJ!,tion Insurance. The policy limits for workers' compensation
insurance shall be as provided for by state law.
D. Additional Require[l1~nt~. For purposes of Paragraphs A and B under this Section, the
City shall be named as additional insured on the liability insurance policy. Thc liability insurance
required by this section must provide that it may not be canceled for any caLLse by either the insured or
the insurer unless the canceling party has first given ten days' notice in writing to the City of intent to
cancel the policy.
1206.07. LiceI1~e ARplication. A license applicant shall complete the applicable application fom1
provided by the City Clerk. The City Clerk may waive completion of any part of the form that is
inappropriate or unnecessary.
1206.08. Execution of AI2RJicatiol]. If the application is by an individual, it shall be signed and
swom to by such person; ifby a corporation, by an officer thereof; ifby a partnership, by one of the
partners; if by an incorporated association, by the operating officer or managing officer thereof. If the
applicant is a partnership, the application, license, and insurance policy shall be made and issued in the
name of all partners. It shall be unlawful to make any false statement in an application.
1206,09. Ren..f,w.!ll Application.
. A. Applications for the renewal of an existing license shall be made at least forty-five (4S)
days prior to the date of the expiration of the license, and shall state that everything in the prior
applications remains true and correct except as otherwise indicated.
B. Renewal applications for an on-sale license for a restaurant shall include a Certified
Public Accountant statement showing total sales, food sales, liquor sales, and percentage of total sales
for the previous year. The Council shall not renew the license unless at least f0l1y (40%) percent of the
establishment's annual gross sales is from the serving of prepared food.
1206.10. lnvestigation,E;.
A. At the time of making an initial application, or renewal application, or request for a new
manager, the applicant shall, in writing, authorize the Plymouth Police Department to investigate all
facts set out in the application and do a personal background and criminal record check on the applicant
and Operating Manager. The applicant shall further authorize the Plymouth Police Depmiment to
release i nfOl111ation received from such investigation to the City Council. (Ord 99-06: 02/16/99; Orc!.
2000-15, 05/09/2000)
B. Should the City Council deny the applicant's request for a license due, pmiial1y or solely, to
the applicant's prior conviction of a crime, the City Council shall notify the app licant of the grounds and
reasons for the denial; the applicable complaint and grievance procedure as set fmih in Minnesota
Statutes, Section 364.06; the earliest date the applicant may reapply for a license; and that all competent
evidence of rehabilitation will be considered upon reapplication.
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Section 1206 - Retail Licenses Page 5 of 12
Plymouth City Code 1206.11
.
1206.11. Hearing Reqllired for New Licenses. A public hearing for the issuance of a license for a
new premises, or for a di fferent licensee at the same premises, shall be preceded by ten (10) days'
published notice and ten (10) days' posted notice at City Hall and on the premises to be licenscd. ]n
addition, the public hearing for the issuance of a license for a new premises,-orJor <LJiJJrrcnt licensL'c at
thc' S;Hl\l' premises. shall also be preceded by a ten (10) days' mailed notice to all owners of propcliy
located within five hundred (500) feet of the boundaries of the property on which the business that is the
subject of the application is located. A public hearing is not required for temporary license
applications. (Ord. 2003-30, J 011412003)
1206,12. InfQTI11atiorL Consid~red for License Approval. The City Council shall consider the
following in addition to conformity with state statutes and city ordinances in deteTI11ining whether a new
or renewal license shall be granted:
A. The investigative and staff report submitted by the Police Department and City Clerk;
B. Information received through the public hearing process;
C. Whether the applicant has or will take affiTI11ative action to minimize public safety
problems commonly associated with on-sale liquor establishments, including but not limited to OWl
drivers, 1llegal sale to minors, disturbing the peace, etc.;
. D, Any other relevant information.
Granting or Transfer of Li_c..fns~.
1206,13,
A. Applicant. A license shall be issued to the applicant only, and no license shall be
transferred except as provided in this Chapter.
B. Premi~es. Each license shall be issued only for the exact rooms and square footage
described in the application. A license is valid only in the compact and contiguous building or structure
situated on the premises described in the license, and all transactions relating to a sale under such license
must take place within such building or structure.
C. Bujlding Under ConstructiQ..l1, When a license is granted for a premises where the
building is under construction or otherwise not ready for occupancy, the City Clerk shall not issue the
license until notified by the Building Official that the building is ready for occupancy,
D. Death QfLicensee. In the event of the death of a person holding a license, the personal
representative of that person shall be allowed to continue to operate the business within the tenllS of the
license for a period not to exceed 90 days after the death of the licensee.
1206,14. Corporation~ Pa.t:l:n.erships,m Associ~tiol1s.
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Section 1206 - Retail Licenses Page 6 of 12
Plymouth City Code 1206.14, Subd. A
. A. All corporations, partnerships, and associations must designate an Operating Manager.
The Operating Manager must be a person working full-time at the licensed premises who is in charge of
day-to-day liquor sales.
B. Licenses issued to corporations shall be valid only so long as there is no change in the
officers or ownership interest of the corporation, as defined in this Chapter, unless such change is
approved by the Council. The requirement concerning change in officers does not apply to cOlvorations
whose stock is traded on the New York or American Stock Exchanges.
C. Licenses issued to associations or partnerships shall be valid only so long as there is no
change in the partnership or association, unless such change is approved by the Council.
D, Corporations, pminerships, or associations holding licenses shall submit written notice to
the City Clerk of any changes described herein on or before 30 days prior to the effective date of any
such change. Notwithstanding the definition of "interest" as defined in this Chapter, in the case of a
corporation, the licensee shall notify the City Clerk when a person not listed in the application acquires
an interest that, when combined with that of a spouse, parent, brother, sister, or child, exceeds 5 percent
and shall give all info1111ation about said person as is required of a person pursuant to the provisions of
this Chapter.
E. Corporations holding licenses shall submit written notice to the City Clerk of any change
. in Operating Managers prior to the effective date of such change. The written notice shall designate the
new Operating Manager. The new Operating Manager shall be subject to the investigation required by
this Chapter. (Ord. 99-6; 02/16/99; Ord. 2000-15, 05/09/2000)
F, The designation of a new Operating Manager shall not cause the corporation's 1 icense to
become invalid before a decision is rendered by the City Manager or his/her designee, provided proper
notice and application are made by the applicant. A proposed new Operating Manager shall be referred
to as the interim Operating Manager. In the event an interim Operating Manager is rejected by the City
Manager or his/her designee, the corporation shall designate another interim Operating Manager and
make the required application within 15 days of the City Manager or his/her designee's decision. If the
City Manager or his/her designee rejects a proposed Operating Manager, the decision may be appealed
to the City Council by filing a written notice of appeal with the City Clerk within ten (10) days after
being noti fied of the rejection. (Ord. 2000 15, 05/09/2000)
1206.15. Ineligible:Jor License.
A. State Law. No license shall be granted to or held by any person
1) made ineligible by State law;
2) who is a person under 21 years of age;
3) who is not a citizen of the United States or a resident alien;
4) upon whom it is impractical to conduct a background and financial investigation
due to the unavailability of inf01111ation;
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Section 1206 - Retail Licenses Page 7 of 12
Plymouth City Code 1206.15, Subd. A(5)
. 5) who has had a liquor license revoked within five years of the license application,
or to any person who at the time of the violatlon owns any interest, whether as a
holder of more than five percent of the capital stock of a corporation licensee, or
to a corporation, partnership, association, enterprise, business, or finn in which
any such person is in any manner interested; who is not of good moral character
and repute;
6) who has a direct or indirect interest in a manufacturer, brewer, or wholesaler; or
7) who, within five years of the license application, has been convicted of a felony
or a willful violation of a federal or state law or local ordinance goveming the
manufacture, sale, distribution, or possession for sale or distribution of an alcohol
beverage and who cannot show competent evidence under Minnesota Statutes
Section 364.03 of sufficient rehabilitation and present fitness to perform the
duties of a licensee.
B. Manag~I Required. No licenses shall be granted to a corporation that does not have an
Operating Manager.
C. Real P<:j.X.ty in Interest. No license shall be granted to a person who is the spouse of a
person ineligible for a license under this Chapter or who, in the judgment of the council, is not the real
pa11y in interest or beneficial owner of the business operated, or to be operated, under the license.
. D. Residency Requireme]J.lli. A license will not be renewed if, in the case of an individual,
the licensee is not a resident of the State at the time of the date forrenewal; if, in the case of a
pm1ncrship, the managing partner is not a resident of the State at the time of the renewal; or in the case
of a corporation, if the Operating Manager does not reside wi thin 100 miles of the Ci ty of Plymouth at
the time of the date ofrenewal. The time for establishing residency within the State may, for good
cause, be extended by the Council. (On/. 98-31, 09-02-98)
E. Delinguent Taxes or Charges. No license shall be granted for operation on any premises
on which state, city or county taxes, assessments, or other financial claims of the state, city, or county
are delinquent and unpaid. Notwithstanding the foregoing, if the delinquent taxes, assessments, or
financial claims are against a landowner, and licensee is a tenant oflandowner and has no financial
interest in landowner, then the City Council may, in its discretion, but shall not be required to, grant a
license to an applicant so long as the applicant is not delinquent on any taxes, assessments, or financial
claims as set forth herein.
1206.16. Conditions of Apprm:~1. At the time a license is issued pursuant to this Chapter or a
consumption and display pennit is approved, the City Council may attach special conditions to the
approval based upon the nature of tbe business, tbe location of the business, and verified complaints, if
any, to protect the health, safety, welfare, and quietude of the community and ensure hannony with the
location where the business is located. Violation of any of the conditions shall be grounds for
revocation of the license.
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Section 1206 - Retail Licenses Page 8 of 12
Plymouth City Code 1206.17
. 1206.17. Distanc~ from School. No on-sale or off-sale intoxicating liquor license, club license,
consumption and display pennit, on-sale or off-sale 3.2 percent malt liquor license, or wine license may
be granted within the same block of any school or within 500 feet of any schooL The distance shall be
measured from the freestanding parcel or lot upon which the business to be licensed is located or from
the exterior wall of the approved area leased or owned by the business to be licensed within a shopping
center to the nearest point of the parcel or lot upon which the school is located. The erection of a school
within the prohibited area after the original license application has been granted shall not, in and of
itself, render such premises ineligible for renewal of the license.
1206,18. ,federal StamQs. No licensee shall possess a federal wholesale liquor dealer's special tax
stamp or a federal gambling stamp.
1206.19. Revocati9n or Suspension of License. The Council may suspend or revoke any license
for the sale of intoxicating or 3.2 percent malt liquor for any of the following reasons:
A. False or misleading statements made on a license appllcation or renewal, or failure to
abide by the commitments, promises or representations made to the City Council.
B. Violation of any special conditions under which the license was granted, including, but
not limited to, the timely payment ofreal estate taxes, and all other charges.
C. Violation of any Federal, State, or local law regulating the sale of intoxicating liquor, 3.2
. percent malt liquor, or controlled substance.
D. Creation of a nuisance on the premises or in the surrounding area.
E. That the licensee suffered or pennitted illegal acts upon the licensed premises or on
property owned or controlled by the licensee adjacent to the licensed premises, unrelated to the sale of
intoxicating liquor or 3.2 percent malt liquor.
F. That the licensee had knowledge of illegal acts upon or attributable to the licensed
premises, but failed to report the same to the police.
G, Expiration or cancellation of any required insurance, or failure to notify the City within a
reasonable time of changes in the tenn of the insurance or the calTiers.
1206,20. Inactive License. The City Coul1ci1may revoke the intoxicating liquor or 3.2 percent
malt liquor license of any establishment granted a license that is not under construction and exhibiting
satisfactory progress toward completion within 6 months from its issuance, or any establishment that
ceases operation for a period of 6 months. A hearing shall be held to determine what progress has been
made toward opening or reopening the establishment and, if satisfactory progress is not demonstrated,
the Council may revoke the license.
1206.21. Hearing NQtice. Revocation or suspension of a license by the City Council shall be
preceded by public hearing conducted in accordance with Milmesota Statutes Section 14.57 to 14.70.
. The City Council may appoint a hearing examiner or may conduct a hearing itself. The
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Section 1206 - Retail Licenses Page 9 of 12
Plymouth City Code 1206.21
. hearing notice shall be given at least 10 days prior to the hearing, include notice of the time and place 0 f
the heari ng, and state the nature of the charges against the licensee.
1206.22. Presumptive Civil Penalties.
A. PUmOl'i:l. The purpose of this Section is to establish a standard by which the City Counci I
detemlines 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
substantial reasons 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. When deviating from
these standards, the Council will provide written findings that support the penalty selected.
B. Minimum Penalties fQr ViQlations. The minimum penalties for convictions or violations
must be presumed as follows (unless specified, numbers below indicate consecutive days' suspension):
The following violations require revocation of the license on the first violation.
. Commission of a felony related to the licensed activity.
. Sale of alcoholic beverages while license is under suspension.
. Sale of intoxicating liquor where only license is for 3.2 percent malt liquor,
. BestPractic~l'.EJ>tablislun~nts. Establishments entering into an agreement with the Police Depmtment as
a Best Practice EstablislU11ent will use the Best Practices violation grid. (Ord. 2001-08,02/27/2001)
The following violations fall under this violation grid broken down by type of license.
. Sale of alcoholic beverages to under-age persons.
. Sale of alcoholic beverages to obviously intoxicated person.
. After hours sale/display/consumption of alcoholic beverage.
. Illegal gambling on premises.
. Failure to take reasonable steps to stop person from leaving premises with alcoholic
beverages (on-sale allowing off-sale),
Type of License 1 st Violation 2nd Violation 3rd Violation 4th Violation
On-sale intoxicating $500 and $1,000 and $2,000 and Revocation
Liq uor 5 days 10 days suspension ] 5 days
suspension suspension
Off-sale $500 and $1,000 and $2,000 and Revocation
intoxicating liquor 3 days 7 days 12 days
suspension suspension suspension
On-sale beer and $500 and $1,000 and $2,000 and Revocation
wll1e 5 days 10 days suspension 15 days
suspension suspension
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Section 1206 - Retail Licenses Page 10 of 12
Plymouth City Code 1206.22'uSubd.J3,
. Off-sale 3.2 malt $1,000 and $1,500 and $2,000 and Revocation
10 days 20 days 40 days
suspension suspension suspension
BEST PRACTICES PENALTY GEJlt
Type of License 1st Violation 2nd Violation 3rd Violation
On-sale intoxicating $500 $1,000 and Refilm to regular penalty grid and
Liquor 5 days suspension, Off Best Practices for I year
stayed
Off-sale intoxicating $500 $1,000 and Return to regular penalty grid and
liq uor 3 days Off Best Practices for 1 year
suspension stayed
On-sale beer and $500 $1,000 and Return to regular penalty grid and
Wl11e 5 days suspension Off Best Practices for 1 year
stayed
Off-sale 3,2 malt $1,000 $1,500 and Return to regular penalty grid and
10 days Off Best Practices for 1 year
suspension stayed
Any violation not listed in the previous infomlation would be heard by the Council and they would
. review all information and circumstances and determine a penalty with the maximum fine of $2,000
and/or 60-day suspension or determine the license should be revoked.
First violations would be handled by an administrative hearing with the Police Chief or his/her designee
with the presumptive penalty given to license holders. For Best Practice establishments first and second
violations would be handled by an administrative hearing with the Police Chief or his/her designee.
License holders have the right to request a hearing before the City Council ifnot in agreement with the
presumptive penalty. The Police Chief also has the right to request a hearing before the Council if
he/she believes there exists substantial reason making it appropriate to deviate from the presumptive
penalty. If the Police Chief and licensee agree on the presumptive penalty, these will be reported to the
City Council in a staff report.
(On/. 99-11.05/04/99; Ord. 2000-29, 8/08/2000; Ord, 2001-08, 02/27/2001)
C. Mu1tipIG-,~jolations. At a licensee's first appearance before the Council, the Council
mLlst act upon all of the violations that have been alleged in the notice sent to the licensee, The Council
in that case must consider the presumptive penalty for each violation under the first appearance column
in subsection (B) above. The OCCUlTence of multiple violations is grounds for deviation frol11 the
presLlmed penalties in the Council's discretion.
D. Subsequent Violation,S. Violations occurring after the notice of hearing has beel1l11ailed,
but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance
before the Council, unless the City Manager and licensee agree in writing to add the violation to the first
appearance. The same procedure applies to a second, third, or fourth appearance before the Council.
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Section 1206 - Retail Licenses Page 11 of 12
Plymouth City Code 1206.22, Subd. E.
. E. Subsequent Allilllarances. Upon a second, third, or fourth appearance before the council
by the same licensee, the Council must impose the presumptive penalty for the violation or violations
giving rise to the subsequent appearance without regard to the particular violation or violations that \vcrc
the subject of the first or prior appearance. However, the Council may consider the amount of time
elapsed between appearances as a basis for deviating from the presumptive penalty imposed by this
Section.
F. Compl1t~,ti9n ofViQlgtions. Multiple violations are computed by checking the time
period o[the three years immediately prior to the date of the most cunent violation. (Ord. 2000-29,
8108/2000)
G, Oth~rPenalties. Nothing in this Section shall restrict or limit the authority of the council
to suspend up to sixty (60) days, revoke the license, impose a civil fine not to exceed two thousand
dollars ($2,000.00), to impose conditions, or take any other action in accordance with law; provided,
that the license holder has been afforded an opportunity for a hearing in the manner provided in this
Chapter.
(Ord 98-2, 01/07/98)
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Section 1206 - Retail Licenses Page 12 of 12
Plymouth City Code 1206
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