Memo- 2nd Reading Ordinance 98-819
CITY OF HOPKINS
. MEMORANDUM
To: Hopkins City Council
From: Jim Genellie
Date: March 9, 1999
Subject: Second Reading of Ordinance 98-819
Staff recommends that the Council approve the following motion: Move that the Hopkins
City Council approve Ordinance 98-819 for second reading, approve the summary of
Ordinance 98-819 and order the summary published.
The City Council instructed staff to draft language that would allow establishments that
currently have an on-sale and off-sale license to continue to carry both licenses even if the
establishment is sold. The following changes were made in Ordinance 98-819:
Subd, 5, Off-sale licenses. Off-sale licenses shall be issued to exclusive liquor stores and shall permit off sales of liquor
only. No off-sale license shall be issued to an establishment holding an on-sale liquor license except those on-sale and
. off-sale licenses that in 1961 ''vere issued in combination to one holder and are presently existing in such combination,
The sale of such an establishment shall not prevent the new owners from applying for an off-sale liquor license. At any
time hereafter that any such existing combined on-sale and off-sale licenses are for any reason suspended, canceled, or
not applied for, no further re-issuance or renewal of such sllspeFlded or revoked licenses shall thereafter be allowed or
issued in combination.
Attaclunents:
. Summary of Ordinance 98-819
. Ordinance 98-819
.
. CITY OF HOPKINS COUNTY OF HENNEPIN
SUMMARY OF
ORDINANCE NO. 98-819
AN ORDINANCE DELETING SECTION 1200, 1205 AND 1210 OF THE
HOPKINS CITY CODE AND REPLACING IT WITH
A NEW SECTION 1200 - ALCOHOLIC BEVERAGES
The following is a summary of the major provisions of the new ordinance:
. Defines the types of licenses that are available
. Restricts the types of establishments that will be granted new on-sale liquor licenses to those
that have at least 50% of their gross receipts from the sale of food.
. Removes language requiring the loss of the off-sale license in the event that an establishment
with an on-sale and off-sale license is sold.
. Requires establishments with wine and 3.2 percent malt liquor licenses, that have sales of
less than $10,000 per year, to maintain dram shop insurance.
. Establishes that no license shall be granted for operation on any premises upon which state or
city taxes, assessments or other financial claims of the state or city are delinquent and unpaid.
. . Defines the procedures for license renewals.
. Establishes the criteria for determining when changes in ownership require a new license.
. Defines hours when sales can occur- brings Hopkins' rules into conformance with
Minnesota State rules.
. Requires evacuation of licensed premises, except restaurants and clubs, within 15 minutes of
the time when liquor sales must cease.
A printed copy ofthe entire ordinance is available from the City Clerk and at the Hopkins
library.
First Reading of Ordinance 98-819 October 20, 1998
Second Reading of Ordinance 98-819 March 16, 1999
Publication of Summary Ordinance 98-819 March 24, 1999
Effective Date of Ordinance 98-819 April 13, 1999
.
----
. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 98-819
AN ORDINANCE DELETING SECTION 1200, 1205 AND 1210 OF THE
HOPKINS CITY CODE AND REPLACING IT WITH
A NEW SECTION 1200 - ALCOHOLIC BEVERAGES
In order to maintain consistency with the State Statutes governing the sale and
consumption of alcohol and to further insure the safety and well being of its
residents, the City Council of the City of Hopkins does hereby ordain as follows:
Section 1: Sections 1200, 1205 and 1210 of the Hopkins City Code are deleted in
their enti rety.
Section 2: Provisions of the State Law adopted. The provisions of Minnesota State
Statute, Chapter 340A, relating to the definitions 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.
Section 3: That in addition to adopting State Statute, Chapter 340A, the following
. terms and conditions are incorporated:
Section 4: Licenses Required.
Subd. 1. 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 of Hopkins, any intoxicating liquor without a
license to do so as provided in this ordinance. Liquor licenses shall be of eight
kinds: "on-sale" , temporary" on-sale", "off-sale", "club", "on-sale wine", "3.2
% malt liquor on-sale", 1/3.2 % malt liquor off-sale", and temporary 3.2% malt
liquor on-sale.
Subd. 2. On-sale licenses. JI On-sale" licenses shall be issued only to hotels,
clubs, restaurants, Bowling Centers and to exclusive liquor stores, which
exclusive liquor stores were in existence on July 1, 1999, and shall permit on-
sale of liquor only. Ten on-sale licenses may be granted in a year.
After July 1, 1999, no on-sale liquor license shall be issued to an establishment
unless the applicant makes a bona fide estimation that at least fifty percent of
the gross receipts of the establishment during its first year of business will be
attributable to the sale of food.
.
1
. Each establishment granted an on-sale liquor license under this section shall have
the continuing obligation to have at least fifty percent of gross receipts from the
establishment during the preceding business year attributable to the sale of food.
For the purpose of this requirement, II establishment" shall include the food and
beverage portion of a multi-service establishment. Financial records for the food
and beverage portion must be maintained separately from the records of the
remainder of the establishment.
For the purpose of this section, "sale of food" shall include gross receipts
attributable to the sale of food items, soft-drinks and nonalcoholic beverages. It
shall not include any portion of gross receipts attributable to the nonalcoholic
I components of a plain or mixed alcoholic beverage, such as ice, soft-drink mixes
or other mixes.
The Council may require the production of such documents or information,
including, but not limited to, books, records, audited financial statements, or pro
forma financial statements as it deems necessary or convenient to enforce these
provisions. The Council may also obtain its own audit or review of such
documents or information, and all licensees shall cooperate with such a review,
including prompt production of requested records.
. In addition to other remedies that it may have available, the Council may place
the license of any JI on-sale" liquor licensee on probationary status for up to one
year, when the sale of food is reported, or found to be, less than fifty percent of
gross receipts for any business year. During the probationary period, the
licensee shall prepare any plans and reports, participate in any required meetings,
and take other action that the Council may require to increase the sale of food.
The above provisions shall not apply to any business having an on-sale liquor
license prior to July 1, 1999 and will not affect the future renewals of the on- I
sale licenses for such businesses. These provisions shall not apply to new
licenses issued for existing establishments, due to sale or transfer of ownership
of these establishments, unless the establishment has been closed and without a
liquor license for at least 90 days. These provisions shall also not apply to any
new on-sale liquor license for a hotel or bowling alley.
Subd. 3. On-Sale wine licenses. "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 14 percent
alcohol by volume, for consumption on the licensed premises only, in
conjunction with the sale of food.
e
2
. The holder of an on-sale wine license who is also licensed to sell 3.2 percent
malt liquors at on-sale and whose gross receipts are at least 60 percent
attributable to the sale of food, may sell intoxicating malt liquors at on-sale
without an additional license.
Subd.4. Temporary on-sale licenses. Subject to the approval of the
commissioner of pub1ic 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.
I Subd. 5. Off-sale licenses. Off-sale licenses shall be issued to exclusive liquor
stores and shall permit off sales of liquor only. No off-sale license shall be
issued to an establishment holding an on-sale liquor license except those on-sale
and off-sale licenses that are presently existing in such combination. The sale of
such an establishment shall not prevent the new owners from applying for an
off-sale liquor license. At any time hereafter that any such existing combined on-
sale and off-sale licenses are for any reason suspended, canceled, or not applied
for, no further re-issuance or renewal of such licenses shall thereafter be allowed
or issued in combination.
. Subd 6. Special club licenses. Special club licenses shall be issued only to
incorporated clubs or congressionally chartered veterans' organizations that have
been in existence at least three years.
Subd 7. 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.
Subd. 8. 3.2 percent malt liquoL on-sale. An on-sale 3.2 percent malt liquor
license may only be issued to drugstores, restaurants, hotels, clubs, bowling
centers where food is prepared and served for consumption on the premises and
in bona fide clubs, and shall permit the sale of beer for consumption on the
premises only.
Subd. g. 3.2 percent malt liquor. off sale. A 3.2 percent off-sale malt liquor
license may be issued to permit the sale of beer in the original packages for
removal from and consumption off the premises only.
.
3
. Subd. 10. Exemptions.
a. Any person licensed to sell intoxicating liquor at on-sale shall not be
required to obtain a 3.2 percent malt liquor on-sale and may sell 3.2
percent beer at on-sale without further license.
b. Any person licensed to sell intoxicating liquor at off-sale shall not be
required to obtain a 3.2 percent malt liquor off-sale license and may sell
3.2 beer without further license.
Subd. 11. Temporary 3.2 percent malt liquor. A club or charitable, religious, or
nonprofit organization may be issued a temporary on-sale license for the sale and
consumption of 3.2 percent malt liquor. The issuance of such license shall be
made in accordance with city policy.
Subd. 12. Application for License. A person desiring any license for either on-
sale or off-sale of liquor, wine, or 3.2 percent malt liquor must file an application
in writing with the clerk in the form prescribed by the commissioner and with
such additional information as the council may require.
Subd 13. Payment. Each application for a license shall be accompanied by
payment in full of the license fee and the investigation fee. Each license shall be
issued for a period of one year except that if the application is made during the
license year, then the license fee shall be one-fourth of the fee for each three
. months or part thereof for the remainder of the license year.
Subd. 14. Investigation/ Granting of License. The council shall cause
investigation to be made of all representation set forth in the application. No
license shall be issued, or renewed if the results show to the satisfaction of the
council that issuance would not be in the public interest. Opportunity shall be
given at a regular or special meeting of the council to any person to be heard for
or against the granting of any license. After such investigation, the council shall
grant or refuse such license in its discretion provided that no off-sale, wine, or
club license shall become effective until it, together with the security furnished
by the applicant has the approval of the commissioner. The fee for such
investigation shall be set from time to time by resolution and shall be payable by
the applicant whether or not the license is granted.
Subd. 15. Refunds. No refund of any fee shall be made except as authorized by
statute.
.
4
. Subd. 16. Proof of Financial Responsibility. No liquor license may be issued,
maintained, or renewed unless the applicant demonstrates proof of financial
responsibility as defined in Minnesota Statutes Section 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 and 3.2 percent malt liquor licenses with sales of less than $10,000 per
year. Any liability insurance policy filed as proof of financial responsibility under
this subdivision shall conform to Minnesota Statutes Section 340A.409.
Temporary liquor license applicants shall provide aggregate limits of one million
dollars.
Subd. 17 Payment of Taxes and other Fees. No License shall be granted for
operation on any premises upon which state or city taxes, assessments or other
financial claims of the state or city are delinquent and unpaid. Any existing
license may be suspended or revoked until such time that delinquent or unpaid
tax or assessment, or other financial claim is paid in full. At such time that all
delinquent or unpaid taxes or assessments or other financial claims are paid in
full, a revoked or suspended license shall be re-issued for the remainder of the
license period without additional application or payment by the licensee.
Notwithstanding the foregoing, if the delinquent taxes, assessments or other
. financial claims are against a landowner, and the licensee is a tenant of the
landowner and has no financial interest in the landowner, then the City Council
may, 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 other financial claims
as set forth herein.
Subd. 18. Posting. Licensed premises shall have the license posted in a
conspicuous place therein at all times. ,
,
Subd. 19. Renewal of License.
1. Time for Renewal. Applications for renewal of an existing license shall be
made at least sixty days prior to the date of the expiration of the license. If
in the judgement of the City Council, good and sufficient cause is shown by
any applicant for his failure to file a renewal application within the time
prescribed, the Council may never the less receive such application.
2. License Renewal Investigation. All renewal applications, which reflect a
change of status, may be investigated for verification of the matters set forth
in the renewal application, which are updated since the last application. If at
the time of renewal, a change of the manager of the premises is identified,
the licensee shall pay a supplemental investigation fee which will be set from
.
5
- - ,- - .,-
. time to time by resolution and shall be payable whether or not the license is
granted.
Subd 20. Transfer of License. No license shall be transferable between persons
or to a different location. Any change in individual ownership or substitution of
partners will require application for a new license. For a corporation, a transfer or
sale of more than 10% of the shares will also require a new license. A transfer
of stock without prior council approval and an investigation is a ground for
revocation of the license
New licenses required under this section will require the full investigation fee to
be paid by the applicant. The license fee will be pro-rated according to Subd. 13.
Subd 21. Conditions of license. Subdivision 1. General rule. Licenses granted
under this section shall be granted subject to the following conditions of this
subsection, and subject to all other ordinances of the city applicable thereto and
to all regulations promulgated by the commissioner applicable thereto.
Subd 22. Conduct. Every licensee shall be responsible for the conduct of his
licensed place of business and for conditions of sobriety and order therein. No
licensee shall keep, possess, or operate, or permit the keeping, possession, or
operation of, on the licensed premises, or in any room adjoining the licensed
. premises, any slot machine, dice, or any gambling device or apparatus, nor
permit any gambling therein, except that which is approved by state statute, nor
permit the licensed premises or any room in the same, or in any adjoining
building, directly or indirectly under its control to be used by prostitutes or other
disorderly persons.
Subd. 23. Sales prohibited. No intoxicating wine, liquor or malt beverage shall
be sold or furnished for any purpose whatever to a person under the age of 21
years, or to a habitual drunkard, or to a person under guardianship, or to any
person obviously intoxicated, or to any of the persons to whom sale is prohibited
by statute.
Subd. 24. Character. A license may not be issued to a person not a citizen or
resident alien of the United States and a licensee shall be of good moral
character and repute. A license may not be issued to any person who shall
hereafter be convicted of any willful violation of any law of the United States or
the State of Minnesota or of any local ordinance with regard to the manufacture,
sale, distribution or possession for sale or distribution of intoxicating liquor, nor
to any person whose license under this section shall be revoked for any willful
violation of any such laws or ordinances.
.
6
. Subd. 25. Additional conditions of intoxicating liquor licenses and the operation
of licensed premises. The following acts or conduct on licensed premises
deemed and decreed to be contrary to public welfare and morals and, therefore,
no on sale liquor license shall be operated, maintained or allowed at, in or on any
premises where such acts or conduct are permitted or tolerated. No licensee
shall employ, permit or encourage any person or employee in or on any such
licensed premises in or under any of the following circumstances:
a. while such employee or person is unclothed or in such attire, costume or
clothing as to expose any portion of the female breast below the top of the
areola, or any portion of the pubic hair, anus, cleft of the buttocks, vulva or
genitals; or
b. while such employee or person encourages or permits the wear or use of
any device or covering exposed to view which resembles or simulates the
breast, genitals, anus or other portion of the body above mentioned; or
c. while such employee or person permits or encourages any person to
perform or simulate the performance of sexual intercourse, sodomy, oral
copulation, flagellation, masturbation/bestiality or other acts prohibited by
law; or
. d. while such employee or person encourages or permits any person to use
artificial devices or inanimate objects to depict any of the prohibited
activities herein described; or
e. while such employee or person encourages or permits any person on the
licensed premises to touch, caress or fondle the breasts, buttocks, anus or
genitals of any other person; or
f. while such employee or person encourages or permits any of the behavior,
conditions or acts hereinabove set forth by any other person or persons.
Whenever the term "person" is used in this section, it is intended to mean and
shall include but not be limited to, any host, hostess, other employer or
employee, customer or spectator and all provisions of this section shall apply
equally to both sexes.
Subd. 26. Hours of operation. a. No sale of 3.2 percent malt liquor may be
made between 1 :00 a.m. and 8:00 a.m. on the days of Monday through
Saturday, nor between 1 :00 a.m. and 12:00 noon on Sunday.
.
7
. b. Intoxicating liquor; on-sale. No sale of intoxicating liquor for consumption on
the licensed premises may be made:
(1) between 1 :00 a.m. and 8:00 a.m. on the days of Monday through
Saturday;
(2) after 1 :00 a.m. on Sundays, except as provided by section 4, subd. 7.
c. 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 in conjunction with the sale of food between the
hours of 10:00 a.m. on Sundays and 1 :00 a.m. on Mondays.
d. Intoxicating liquor; off-sale. No sale of intoxicating liquor may be made by an
off-sale licensee:
1. on Sundays;
2. before 8:00 a.m. on Monday through Saturday;
3. after 8:00 p.m. on Monday through Thursday and after 10:00 p.m. on
Friday and Saturday. An off-sale licensee may sell intoxicating liquor until
10:00 p.m. on December 31 and July 3, and on the day preceding
Thanksgiving day, unless otherwise prohibited.
4. on Thanksgiving Day;
5. on Christmas Day, December 25; or
6, after 8:00 p.m. on Christmas Eve, December 24.
. Subd. 27, Evacuation of Licensed Premises. No licensed premises named in an
"ON SALE' Intoxicating Liquor License shall remain open for business more than
15 minutes after the closing time stated in section 4, subd. 26 of this
Ordinance. It is unlawful for a licensee or an employee of a licensee to permit
any person, other than a licensee or an employee, to remain on said licensed
premises more than 15 minutes after closing time. It is also unlawful for any
person, not a licensee or employee of a licensee, to remain on said licensed
premises more than 15 minutes after closing time. This subsection does not
apply to any restaurant as defined in MN Statute 340A.1 01, or to any premises
holding a "Club License".
Subd. 28, License Revocation or Suspension. MN Statute 340A,415, License
Revocation or Suspension, is adopted by reference.
.
8
,-
. Section 5. The effective date of this ordinance shall be twenty days after
publication.
First Reading: October 20, 1998
Second Reading: March 1 6, 1 999
Date of Publication: March 24, 1999
Date Ordinance Takes Effect: April 13, 1999
Charles D. Redepenning, Mayor
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
.
City Attorney Signature Date
!
.
9