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1998-819CITY 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 entirety. 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. Ge eral 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", "3.2 % malt liquor off-sale", and temporary 3.2% malt liquor on-sale. Subd. 2. On-sale licenses. "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, "establishment" shall include the food and beverage portion of amulti-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 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 "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- 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. 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 public safety, temporary on-sale licenses shall be issued only to clubs or charitable, religious, or other non-profit organizations in existence for at least three years. A temporary license authorizes the on-sale of intoxicating liquor in connection with a social event within the city sponsored by the licensee and subject to restrictions imposed by the state liquor act. 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. SrJecial 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 Jicense 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 liquor, 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. 9. 3.2 aercent 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. Exem tp ions. 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. 1 1. Tempora~r 3 2,percent malt liauor. 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. Pakment. 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. Ref No refund of any fee shall be made except as authorized by statute. 4 Subd. 16. Proof of Financial ResAOnsibility. 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 all applicants for wine and 3.2 percent malt liquor licenses. 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 Pakment 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. P in 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. 5 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 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. C n t. 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. 6 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. Subd. 25. Additional conditions of intoxicating Iguor 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. 7 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 oaeration. 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. 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.101, or to any premises holding a "Club License". 8 Subd. 28. License Revocation or Suspension. MN Statute 340A.415, License Revocation or Suspension, is adopted by reference. Section 5. The effective date of this ordinance shall be twenty days after publication. First Reading: October 20, 1998 Second Reading: Date of Publication: Date Ordinance Takes Effect: Charles D. Redepenning, March 16, 1999 March 24, 1999 April 13, 1999 ATTEST: Terry ermaier, City Clerk APPR~'C/ED AS TO FORM AND LEGALITY: Attorney Signature Date yor 9 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 all establishments with wine and 3.2 percent malt liquor licenses 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 of the 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