CITY OF COKATO
Notice of Proposed Ordinance
Cable Franchise Amendment
Notice is hereby given that the Cokato City Council will consider amendments to repeal and replace Ordinance 2019-03, Franchise Agreement which provides for the operation of cable service in the City of Cokato. This amendment will be considered at the next regular City Council meeting on Wednesday, November 13, 2019 at 6:00 p.m. at Cokato City Hall, 255 Broadway Ave S, Cokato, MN 55321. A copy of the proposed replacement ordinance is posted on the city’s website at www.cokato.mn.us, or may be viewed at City Hall.
Annita M. Smythe
Published in the Enterprise Dispatch Oct. 25 and Nov. 1, 2019.
REGULATION OF THE POSSESSION, SALE AND CONSUMPTION OF 3.2 PERCENT MALT LIQUOR AND INTOXICATING LIQUOR WITHIN THE CITY OF DASSEL
110.1 Adoption of state law by reference
110.2 City may be more restrictive than state law
110.4 License required
110.5 Licenses for on-sale intoxicating liquor
110.6 Applications for license
110.7 License fees and terms
110.9 Hearing and issuance of a license
110.10 Transfer of license
110.11 Renewing a license
110.12 Person ineligible for license
110.13 Conditions of license
110.14 Hours and days of sale
110.15 Minors on Premises
110.16 Restrictions on purchase and consumption
110.18 Nudity on the premises of licensed establishments prohibited
110.19 Suspension and revocation
110.21 Effective date
§ 110.01 ADOPTION OF STATE LAW BY REFERENCE.
The provisions of Minn. Stat. Ch. 340A, as they may relate to the terms, conditions of operation, restrictions on consumption, sales, days and hours of sale, and all other matters pertaining to the retail sale, distribution and consumption of 3.2 percent malt liquor and intoxicating liquor (alcoholic beverages) are hereby adopted by reference and are made a part of this chapter as if set out in full. It is the intention of the City Council that all future amendments to Minn. Stat. Ch. 340A are hereby adopted by reference as they had been in existence at the time this chapter is adopted.
§ 110.02 CITY MAY BE MORE RESTRICTIVE THAN STATE LAW.
The City Council is authorized by the provisions of Minn. Stat. § 340A.101 and by this chapter to impose and has imposed additional restrictions on the sale, possession, and consumption of alcoholic beverages beyond those contained in Minn. Stat. Ch. 340A, as amended from time to time.
§ 110.03 DEFINITIONS.
In addition to the definitions contained in Minn. Stat. § 340A.101 as amended from time to time, the following terms are defined for purposes of this chapter.
3.2 % BEER, OR PERCENT (3.2%) MALT LIQUOR. These terms reference any beer, ale, or other beverage made from malt by fermentation and containing at least one-half of one percent alcohol by volume but not more than 3.2 percent alcohol by weight.
BEER OR MALT LIQUOR. When not modified by the preface “3.2%”, these terms reference any beer, ale, or other beverage made from malt by fermentation, and containing not less than one-half of one percent (0.5%) alcohol by volume.
BEER STORE. An establishment for the sale of beer, cigars, cigarettes, all forms of tobacco, beverages and soft drinks at retail.
CLUB or BONA FIDE CLUB. An incorporated organization organized for civic, fraternal, social, or business purposes, for intellectual improvement or for the promotion of sports, or a congressionally charted veterans’ organization which has more than 30 members and a board of directors or executive committee, where the serving of beer or liquor is incidental to and not the major purpose of the club.
INTOXICATING LIQUOR. Ethyl alcohol, distilled, fermented, spirituous, and vinous, and malt beverages containing more than 3.2% of alcohol by weight.
LIQUOR. As used in this sub-chapter and without modification by the words “intoxicating” or “beer” or “3.2% malt liquor”, includes both intoxicating liquor and 3.2% malt liquor.
ORIGINAL PACKAGE. The bottle or sealed container in which the liquor is placed at the point of manufacture.
RESTAURANT. An establishment, other than a hotel, under the control of a single proprietor or manager where meals are regularly prepared on the premises and are served to the general public for consumption at tables or on the premises, with a minimum seating capacity for guests as prescribed by the appropriate license issuing authority. To be a restaurant as defined by this section an establishment shall have a license from the state in accordance with Minn. Stat. §157.16 as amended from time to time.
§ 110.04 LICENSE REQUIRED.
No person may directly or indirectly on any pretense or by any device sell, barter, keep for sale any liquor within the city without first having obtained a license therefore as hereinafter provided. The City Council is authorized to issue in its sound discretion the following licenses and permits:
(A) “On-sale” 3.2% malt liquor licenses shall be granted only to bona fide clubs, beer stores, drug stores, restaurants and hotels where food is prepared and served for consumption on the premises. “On sale” licenses shall permit the sale of beer for consumption on the premises only.
(B) “Off-sale” 3.2% malt liquor licenses permitting the sale of beer at retail or at wholesale in the original package for consumption off the premises only.
(C) Temporary “on sale” 3.2% malt liquor licenses granting bona fide clubs, charitable, religious or nonprofit organizations to sell beer for a time period specified by the City Council.
(D) Approval of the issuance of a consumption and display permit by the Commissioner of Public Safety.
§ 110.05 LICENSES FOR ON- SALE OF INTOXICATING LIQUOR
Although the City of Dassel owns and operates an off-sale municipal liquor store, the City became a “split liquor” city following an affirmative vote in a public referendum held on August 13, 2019. As a split liquor city, the City Council is authorized and may, in its sound discretion, issue private “on-sale” licenses for the sale of intoxicating liquor by restaurants, hotels, and clubs for consumption “on” the premises where the sale is made, during weekdays and weekends including Sundays as permitted by law. Issuance of on-sale licenses to a club shall be in accordance with Minn. Stat. §340A.404, Subd.1 as it may be amended from time to time. The number of on-sale licenses issued under this section is governed by Minn. Stat. §340A.413, as it may be amended from time to time. Holidays and other days when on-sale of intoxicating liquor is not authorized are governed by Minn. Stat. §340A.504 as from time to time amended.
§ 110.06 APPLICATIONS FOR LICENSE.
(A) Form. Every application for a license issued under this sub-chapter shall be on a form provided by the city. Every application shall state the name of the applicant, the applicant’s age, representations as to the applicants character, with references as the Council may require, the type of license applied for, the business in connection with which the proposed license will operate and its location, a description of the premises, whether the applicant is owner and operator of the business, how long the applicant has been in that business at that place, and other information as the Council may require from time to time. In the case of an application for an on-sale intoxicating liquor license, the application shall specifically describe the compact and contiguous premises within which liquor may be dispense and consumed. The area of service and consumption shall not include any parking lot or public sidewalk. An application for an on-sale intoxicating liquor license shall be in the form prescribed by the Commissioner of Public Safety and shall also contain the information required in this section. The form shall be verified and filed with the city. No person shall make a false statement in an application.
(B) Financial responsibility. Prior to the issuance of any license under this chapter, the applicant shall demonstrate proof of financial responsibility as defined in Minn. Stat. § 340A.409 and with regard to liability under M.S. § 340A.801 as those statutes are amended from time to time. This proof will be filed with the city and with the Commissioner of Public Safety. Any liability insurance policy filed as proof of financial responsibility under this section shall conform to Minn. Stat. § 340A.409 as amended. Operation of a business which is required to be licensed by this sub-chapter without having on file with the city at all times effective proof of financial responsibility is a cause for revocation of the license.
§ 110.07 LICENSE FEES AND TERMS.
(A) The Council may establish the fee for any license it is authorized to issue. No license fee shall exceed any limit established by Minn. Stat. Ch. 340A as amended. Each application for a license shall be accompanied by a receipt from the City Administrator-Clerk/Treasurer for payment in full of the required fee for the license. All fees shall be paid into the General Fund of the city. Upon rejection of any application for a license, the Administrator-Clerk/Treasurer shall refund the amount paid.
(B) Each license shall be issued for a maximum period of one year, except that if a portion of the license year has elapsed when the application is made, a license may be issued for the remainder of the year for a pro rata fee. In computing such fee, any unexpired fraction of a month shall be counted as one month. All licenses, except for display and consumption and temporary “on sale” 3.2% malt liquor licenses, shall expire on the last day of June in each year. Display and consumption permits shall expire on the last day of March in each year. Temporary licenses expire according to their terms.
(C) The annual fees for an “on sale” 3.2% malt liquor license, an “off sale” 3.2% malt liquor license, a temporary “on sale” 3.2% malt liquor license, a consumption and display permit, and an on-sale intoxicating liquor license shall be as set forth in the fee schedule. The city shall not increase the fee for liquor licenses except after notice of hearing on the proposed increase. Notice of the proposed increase must be mailed to all affected licensees at least 30 days before the date set for the hearing before the City Council.
(D) No part of the fee paid for any license issued under this sub-chapter shall be refunded except in the following instances upon application to the Council within ten days from the happening of the event. There shall be refunded a pro rata portion of the fee for the unexpired period of the license, computed on a monthly basis, when operation of the licensed business ceases not less than one month before expiration of the license because of:
(1) Destruction or damage of the licensed premises by fire or other catastrophe;
(2) The licensee’s illness;
(3) The licensee’s death;
(4) A change in the legal status of the city making it unlawful for the licensed business to continue.
§ 110.08 INVESTIGATION.
(A) Preliminary background and financial investigation. Based upon the initial application for a license or on an application for transfer of a license, the City Council may, if it determines to be in the public interest to do so, conduct a preliminary background and financial investigation of the applicant or it may contract with the Commissioner of Public Safety for the investigation. The applicant shall pay the investigation fee as set forth in the fee schedule, which shall be in addition to any license fee. If the cost of the preliminary investigation is less than the investigation fee, the unused balance shall be returned to the applicant. The results of the preliminary investigation shall be sent to the Commissioner of Public Safety if the application is for an on-sale intoxicating liquor license or an on-sale wine license.
(B) Comprehensive background and financial investigation. If the results of a preliminary investigation warrant, and if in the sound discretion of the Council a comprehensive background and financial investigation is appropriate, the Council may either conduct the investigation itself or contract with the Commissioner of Public Safety for the investigation. The investigation fee for this comprehensive background and financial investigation to be paid by the applicant shall be $500, less any amount paid for the initial investigation if the investigation is to be conducted within the state, and $10,000, less any amount paid for the initial investigation, if the investigation is required outside the state. The unused balance of the fee shall be returned to the applicant whether or not the application is denied. The fee shall be paid in advance of any investigation and the amount expended on the investigation shall not be refundable in the event the application is denied. The results of the comprehensive investigation shall be sent to the Commissioner of Public Safety if the application is for an on-sale intoxicating liquor or an on-sale wine license.
(C) The Council may, in its sound discretion, waive the investigation requirement for an applicant applying for a temporary liquor license.
§ 110.09 HEARING AND ISSUANCE OF A LICENSE.
The Council shall investigate all facts set out in the application and not investigated in the preliminary or comprehensive background and financial investigations. Opportunity shall be given to any person to be heard for or against the granting of the license. After the investigation and hearing, the Council in its sound discretion shall either grant or deny the application. No applicant has a right to a license under this subchapter. No license shall become effective until the proof of financial security has been approved by the Commissioner of Public Safety.
§ 110.010 TRANSFER OF LICENSE.
No license issued under this subchapter may be transferred without the approval of the City Council. Any transfer of stock of a corporate licensee is deemed to be a transfer of the license, and a transfer of stock without prior Council approval is a ground for revocation of the license. An application to transfer a license shall be treated the same as an application for a new license, and all the provisions of this sub-chapter applying to applications for a license shall apply.
§ 110.11 RENEWING A LICENSE.
At least 90 days before a license issued under this subchapter is to be renewed, an application for renewal shall be filed with the city. The decision whether or not to renew a license rests within the sound discretion of the Council. No licensee has a right to have a license renewed.
§ 110.12 PERSONS INELIGIBLE FOR LICENSE.
(A) No license shall be issued to any person under 21 years of age.
(B) Not more than one license shall be directly or indirectly issued within the city to any one person.
(C) No license shall be granted to any person who is not of good moral character and repute.
(D) No license shall be issued to any person who is not a resident of the state. If the applicant is a corporation, all of the shareholders shall be residents of the state. The provisions of this section shall not apply to any license existing on the effective date of this sub-chapter or to the renewal of an existing license.
(E) No new license may be issued to and the city may refuse to renew the license of any person who, within five years of the license application, has been convicted of a willful violation of federal or state law or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of any alcoholic beverage.
(F) No license shall be granted or renewed for operation on any premises on which taxes, assessments, utility charges, service charges or other financial claims of the city are delinquent and unpaid.
§ 110.13 CONDITIONS OF LICENSE.
The failure of a licensee to meet any one of the conditions of the license specified below shall result in a suspension of the license until the condition is met.
(A) All licensed premises shall have the license/permit posted in a conspicuous place at all times.
(B) No liquor shall be sold or served to any intoxicated person.
(C) No gambling or any gambling devise shall be permitted on any licensed premises. Charitable gambling may be allowed in a licensed establishment after a permit is applied for and reviewed by the City Council on an individual basis. Any organization holding a charitable gambling license within the city shall contribute 10% of their annual net profits derived from lawful charitable gambling to the General Fund of the city.
(D) Within 90 days after employment, every person selling or serving liquor in an establishment which has an “on sale” license shall receive training regarding the selling or serving of liquor to customers. The training shall be provided by an organization approved by the Council. Proof of training shall be provided by the licensee.
(E) Every licensee shall allow any peace officer, health officer, city employee, or any other person designated by the Council to conduct compliance checks and to otherwise enter, inspect and search the premises of the licensee during business and after business hours during the time when customers remain on the premises without a warrant.
(F) No “on sale” establishment shall display liquor to the public during hours when the sale of liquor is prohibited.
(G) Every licensee shall be responsible for the conduct of the place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by this subchapter and the law equally with the employee.
(H) Compliance with financial responsibility requirements of state law and of this sub-chapter is a continuing condition of any license.
§ 110.14 HOURS AND DAYS OF SALE.
(A) The hours of operation and days of sale shall not be greater than those set by Minn. Stat. §340A.504, as amended from time to time, and the City Council may by resolution or ordinance provide for more restrictive hours than state law allows. No sale of liquor may be made after 5:00 p.m. on Christmas Eve, Christmas Day, or Easter Sunday.
(B) No person shall consume nor shall any “on-sale” licensee permit any consumption of any liquor in an “on-sale” licensed premises more than 30 minutes after the time when a sale can legally occur.
(C) No “on-sale” licensee shall permit any glass, bottle or other container containing liquor to remain upon any table, bar, stool or other place where customers are served, more than 30 minutes after the time when a sale can legally occur.
(D) No person, other than the licensee and any employee, shall remain on the “on-sale” licensed premises more than 30 minutes after the time when a sale can legally occur.
(E) Any violation of any condition of this section may be grounds for revocation or suspension of the license.
§ 110.15 MINORS ON PREMISES.
(A) No person under the age of 18 years shall be employed in any rooms constituting the place in which liquor is sold at retail “on sale”, except that persons under the age of 18 may be employed as musicians or to perform the duties of a bus person or dishwashing services in places defined as a restaurant, hotel, motel or other multipurpose building serving food in rooms in which liquor is sold at retail “on sale”.
(B) No person under the age of 21 years may enter a licensed establishment except to work, consume meals on premises that qualify as a restaurant, or attend social functions that are held in a portion of the premises where liquor is not sold.
§ 110.16 RESTRICTIONS ON PURCHASE AND CONSUMPTION.
No person shall mix, or prepare liquor for consumption, or consume liquor in any public place of business unless it has a license to sell on-sale, or a permit from the Commissioner of Public Safety under the provisions of Minn. Stat. § 340A.414, as it may be amended from time to time, which has been approved by the Council. No person shall consume liquor in any such place.
§ 110.17 CLUBS.
No club shall sell liquor except to members and to guests in the company of a member.
§ 110.18 NUDITY ON THE PREMISES OF LICENSED ESTABLISHMENTS PROHIBITED.
(A) The City Council finds that it is in the best interests of the public health, safety and general welfare of the people of the city that nudity is prohibited as provided in this section on the premises of any establishment licensed under this subchapter. This is to protect and assist the owners, operators and employees of the establishment, as well as patrons and the public in general, from harm stemming from the physical immediacy and combination of alcohol, nudity and sex. The Council especially intends to prevent any subliminal endorsement of sexual harassment or activities likely to lead to the possibility of various criminal conduct, including prostitution, sexual assault and disorderly conduct. The Council also finds the prohibition of nudity on the premises of any establishment licensed under this subchapter, as set forth in this section, reflects the prevailing community standards of the city.
(B) It is unlawful for a licensee to permit or allow any person or persons on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a nontransparent material. It is unlawful for any person to be on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a non-transparent material.
(C) A violation of this section is a misdemeanor punishable as provided by law, and is justification for revocation or suspension of any liquor license or the imposition of a civil penalty.
§ 110.19 SUSPENSION AND REVOCATION.
(A) The Council shall either suspend for a period not to exceed 60 days or revoke any liquor license upon finding that the licensee has failed to comply with any applicable statute, regulation or provision of this sub-chapter relating to liquor. Except in cases of lapse of proof of financial responsibility, no suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to the Administrative Procedures, Minn. Stat. §§ 14.57 to 14.70, as it may be amended from time to time. The Council may act as the hearing body under that act, or it may contract with the Office of Hearing Examiners for a hearing officer.
(B) The following are the minimum periods of suspension or revocation which shall be imposed by the Council for violations of the provisions of this sub-chapter or Minn. Stat. Ch. 340A, as amended from time to time, or any rules promulgated under that chapter as they may be amended from time to time:
(1) For commission of a felony related to the licensed activity, sale of alcoholic beverages while the license is under suspension, sale of intoxicating liquor where the only license is for 3.2% malt liquor, or violation of § 110.18 of this sub-chapter, the license shall be revoked.
(2) The license shall be suspended by the Council after a finding under sub-section (A) above that the licensee has failed to comply with any applicable statute, rule, or provision of this sub-chapter for at least the minimum periods as follows:
(a) For the first violation within any three-year period, at least one-day suspension in addition to any criminal or civil penalties which may be imposed;
(b) For a second violation within any three-year period, at least three consecutive days suspension in addition to any criminal or civil penalties which may be imposed;
(c) For the third violation within any three-year period, at least seven consecutive days suspension in addition to any criminal or civil penalties which may be imposed; or
(d) For a fourth violation within any three-year period, the license shall be revoked.
(3) The Council shall select the day or days during which the license will be suspended.
(C) Lapse of required proof of financial responsibility shall effect an immediate suspension of any license issued pursuant to this sub-chapter or state law without further action of the Council. Notice of cancellation or lapse of a current liquor liability policy shall also constitute notice to the licensee of the impending suspension of the license. The holder of a license who has received notice of lapse of required insurance or of suspension or revocation of a license may request a hearing thereon and, if a request is made in writing to the Administrator/City Clerk/ Treasurer a hearing before the Council shall be granted and heard within ten days of the grant. Any suspension under this sub-section shall continue until the Council determines that the financial responsibility requirements of state law and this sub-chapter have again been met.
(D) The provisions of §110.20 may be imposed in addition to or in lieu of any suspension or revocation under this section.
(A )Any person violating the provisions of this sub-chapter or Minn. Stat. Ch. 340A as amended from time to time, or any rules promulgated under that chapter as they may be amended, is guilty of a misdemeanor and upon conviction shall be punished as provided by law.
(B) The Council shall impose a civil penalty of up to $2,000 for each violation of Minn. Stat. Ch. 340A, as amended from time to time, and of this sub-chapter. Conviction of a violation in a court of law is not required in order for the Council to impose the civil penalty. A hearing under the Administrative Procedures Act, Minn. Stat. §§ 14.57 to 14.70, as it may be amended from time to time, is not required before the penalty is imposed, but the Council shall hold a hearing on the proposed violation and the proposed penalty and hear any person who wishes to speak. Non-payment of the penalty is grounds for suspension or revocation of the license. The following is the minimum schedule of presumptive civil penalties which must be imposed in addition to any suspension unless the license is revoked:
(1) For the first violation within any three-year period, $500.
(2) For the second violation within any three-year period, $1,000.
(3) For the third and subsequent violations within any three-year period, $2,000.
(C) Revocation shall occur within 60 days following a violation for which revocation is imposed.
§ 110.21 EFFECTIVE DATE
This sub-chapter becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as amended from time to time.
This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as adopted by the Dassel City Council on October 21, 2019.
/s/ Ron Hungerford, Mayor
Terri Boese, City Clerk/Treasurer
Published in the Enterprise Dispatch Oct. 25, 2019.