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Part 2.  Beer Licensing  

602.01.  Definition of terms.  Subdivision 1.  Beer.  As used in this ordinance, beer or non-intoxicating malt liquor means any malt beverage with an alcoholic content of more than one-half of one percent by volume and not more than three and two-tenths percent by weight.  

  Subd. 2.  Beer store.  Beer store means an establishment used exclusively for the retail sale of beer, with the incidental sale of tobacco and soft drinks.  

602.02. License required.  Subdivision 1.  Licenses.  No person except wholesalers and manufacturers to the extent authorized by law, shall deal in or dispose of by gift, sale, or otherwise, or keep or offer for sale, any beer within the city without first having received a license as hereinafter provided.  Licenses shall be of three kinds:  1) regular on-sale; 2) temporary on-sale; 3) off-sale.  

  Subd. 2.   Regular on-sale.  Regular on-sale licenses shall be granted only to clubs, beer stores, exclusive on-sale liquor stores, drug stores, restaurant, hotels, and bowling centers 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.  

  Subd. 3.  Temporary on-sale.  Temporary on-sale licenses shall be granted only to clubs or charitable, religious, or non-profit organizations for the sale of beer for consumption on the premises only.  

  Subd. 4.  Off-sale.  Off-sale licenses shall permit the sale of beer at retail, in the original package for consumption off the premises only.  

602.03.  License applications.  Subdivision 1.   Form.  Every application for a license to sell beer shall be made to the city clerk on a form supplied by the city and containing such information as the clerk or the city council may require.  It shall be unlawful to make any false statement in an application.  Every application for the issuance or renewal of a license shall include a copy of each summons received by the applicant under Minn. Stat. 340A.802 during the preceding year.  

  Subd. 2.  Proof of financial responsibility.  Prior to the issuance of a beer license, the applicant shall demonstrate proof of financial responsibility as defined in Minn. Stat. 340A.409, Subd. 1, with reference to liability under  Minn.  Stat. 340A.801.  Such proof shall be filed with the commissioner of public safety except that if a license involves sales of beer of a prospective vendor who is not required by law to file such proof with the commissioner of public safety, such proof shall be filed with the city clerk.  Any liability insurance policy filed as proof of financial responsibility under this subdivision shall conform to Minn. Stat. 340A.409.  

  Subd. 3.  Approval of security.  Liability insurance policies  required by this ordinance but not by state law shall be approved as to form by the city attorney.  Operation of a business licensed by this ordinance without having on file with the state insurance commissioner or the city at all times effective security as required in Subd. 2 is a cause for revocation or suspension of the license.  

602.04.  License fees.     Subdivision 1.  Payment required.  Each application for a license shall be accompanied by a receipt from the city 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 treasurer shall refund the amount paid.  

  Subd. 2.  Expiration; pro rata fees.  Every license except a temporary license shall expire on he last day of June in each year.  Each license except a temporary license shall be issued for a period of one year, except that if a portion of the license year has elapsed when the license is granted, the license shall be issued for the remainder of the year for a pro rata fee.  In computing such a fee, any unexpired fraction of a month shall be counted as one month.  A temporary license shall be issued for a specified period in which a special event to which the sale in incident is being held and such period shall be stated on the license.  

  Subd. 3.  Fees. The annual fee for a regular on-sale license is $100.00.  

            The annual fee for an off-sale license is $100.00.  

            The fee for a temporary on-sale license is $25.00 per day.  

  Subd. 4.  Refunds.  No part of the fee paid for any license issued under this ordinance 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, if:  

  1.  The business ceases to operate because of destruction or damage;  

  2.  The licensee dies;  

  3. The business ceases to be lawful for a reason other than a license revocation; or  

  4.  The licensee ceases to carry on the licensed business under the license.  

602.05.  Granting of license.  Subdivision 1.  Investigation and hearing.  The city council shall investigate all facts set out in the application.  Opportunity shall be given to any person to be heard for or against the granting of the license.  After such investigation and hearing, the council shall grant or refuse the application in its discretion.  

  Subd. 2.  Transfers.  Each license shall be issued to the applicant only and shall not be transferable to another holder.  Each license shall be issued only for the premises described in the application.  No license may be transferred to another place without the approval of the council.  

602.06.  Persons ineligible for license.  No license shall be granted to or held by any person who:  

  1.  Is under 21 years of age;  

  2.  Has within five years prior to the application for such license, been convicted of a felony, or of violating any law of this state or local ordinances relating to the manufacture, sale, distribution or possession          for sale or distribution of intoxicating liquors, and cannot show    competent evidence under Minn. Stat. 364.03 of sufficient rehabilitation   and present fitness to perform the duties of a beer licensee;  

  3.  Is a manufacturer of beer or is interested in the control of any place where beer is manufactured.  

  4.  Is not a citizen or resident alien.  

  5.  Is not of good moral character;  

  6.  Is not the proprietor of the establishment for which the license is issued.  

602.07.  Places ineligible for license.  Subdivision 1.  Conviction or revocation.  No license shall be granted for sale on any premises where a licensee has been convicted on the violation of this ordinance, or of the state beer or liquor law, or where any license hereunder has been revoked for cause until one year has elapsed after such conviction or revocation.  

  Subd. 2.  Unpaid claims.  No license shall be granted for operation on any premises upon which taxes or assessments or other financial claims of the city are delinquent and unpaid.  

602.08.  Condition of license.  Subdivision 1.  General conditions.  Every license shall be granted subject to the conditions in the following subdivisions and all other provisions of this ordinance and of any other applicable ordinance of the city or state law.  

  Subd. 2.  Insurance.  Compliance with financial responsibility requirements of state law and of this ordinance is a continuing condition of any license granted pursuant to this ordinance.  

  Subd. 3.  Sales to minor or obviously intoxicated persons.  No beer shall be sold or served to any obviously intoxicated persons and to any person under 21 years of age.  

  Subd. 4  Consumption by minors.  No person under the age of 21 years shall be permitted to consume beer on the licensed premises.  

  Subd. 5.  Employment of minors.  No person under the age of 18 years shall be employed on the premises of a beer store.  

  Subd. 6.  Interest of manufacturers or wholesalers.   No manufacturer or wholesaler of beer shall  have any ownership of, or interest in, an establishment license to sell at retail contrary to the provisions of Minn.  Stat.  340A.301, Subd. 7.  No retail licensee and manufacturer or whole saler of beer  shall be parties to any exclusive purchase contract.  No retail licensee shall receive any benefits contrary to law from a manufacturer or wholesaler of beer and no such manufacturer or wholesaler shall confer any benefits contrary to law upon a retail licensee.  

  Subd. 7.  Sales of intoxicating liquor.  No licensee who does not hold a consumption and display permit shall sell or permit the consumption or display of intoxicating liquor on the license premises or serve any liquor for the purpose of mixing with intoxicating liquor.  The presence of intoxicating liquor  on the premises of such a licensee shall be prima facie evidence of possession of intoxicating liquors for the purpose of sale; and the serving of any liquid for the purpose of mixing with intoxicating liquors shall be prima facie evidence that intoxicating liquor is being permitted to be consumed or displayed contrary to this ordinance.  

  Subd. 8.   Searches and seizures.  Any peace officer may enter, inspect and search the premises of a licensee during business hours without a search and seizure warrant and may seize all intoxicating liquor found on the licensed premises in violation of Subd. 7.  

  Subd. 9.  Licensee's responsibility.  Every licensee is responsible for the conduct in the licensee's establishment and any sale of alcoholic beverages by any employee authorized to sell such beverage is the act of the licensee.  

  Subd. 10.  Banquet rooms.  A regular on-sale license shall entitle the holder to serve beer in a separate room of the licensed  premises for banquets or dinners at which are present not fewer than 25 persons.  

602.09.  Closing hours.  No sale of beer shall be made on any Sunday between the hours of 1:00 a.m. and 12:00 noon, nor between the hours of 1:00 a.m. and 10:00  a.m. on any other day of the week.  

602.10.  Club.  No club shall sell beer except to members and to guests in the company of members.  

602.11.  Restrictions on purchase and consumption.  Subdivision 1.  Consumption.  It is unlawful for any person under the age of 21 years to consume beer unless in the household of the person's parent or guardian and with the consent of the parent or guardian.  

  Subd. 2.  Purchasing.  It is unlawful for any person:  

  1.  To sell, barter, furnish, or give beer to a person under 21 years of age,     except that a parent or guardian of a person under that age may give or furnish beer to the person solely for consumption in the household of the  parent or guardian;  

  2.  Under the age of 21 years to purchase or attempt to purchase beer; or  

  3.  To induce a person under the age of 21 years to purchase or procure beer.  

  Subd. 3.  Possession.  It  is unlawful for a person under the age of 21 years to possess beer with the intent to consume it at a place other than the household of the person's parent or guardian.  Possession at a place other than the household of a parent or guardian is prima facie evidence of intent to consume it at a  place other than the household of the parent or guardian.  

  Subd. 4.  Entering license premises.  It is unlawful for a person under the age of 21 years to enter an establishment licensed under this ordinance in order to purchase beer or have beer served or delivered.  

  Subd. 5.   Misrepresentation of age.   It  is unlawful for a person under the age of 21 years to misrepresent his or her age for the purpose of purchasing beer.  

 Subd. 6.  Proof of age.  Proof of age for purchasing or consuming beer may be established only by a valid driver's license or Minnesota identification card,  or in the case of a foreign national by a valid passport.  

  Subd. 7.  Liquor consumption and display.  No person shall consume or display any intoxicating liquor on the premises of a licensee who does not hold a consumption and display permit.  

602.12. Suspension and revocation.  The council shall either suspend for up to 60 days or revoke any beer license, or impose a civil fine not to exceed $2,000, for each violation upon a finding that the licensee has failed to comply with any applicable statute, regulation, or ordinance relating to alcoholic beverages.  Except in case of failure of financial responsibility, no suspension or revocation shall take effect until the licensee has been afforded an opportunity for hearing pursuant to Minn.  Stat.  14.57 to 14.69 of the adminis-trative procedure act. Lapse of required dram shop insurance or bond, or withdrawal of a required deposit of cash or securities, shall effect an immediate suspension of any license issued pursuant to this ordinance without further action of the city council.  Notice of cancellation, lapse of a current liquor liability policy or bond, or withdrawal of deposited cash or securities 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 bond, or withdrawal of a required deposit, or of suspension or revocation of a license, may request a hearing thereon, and if such a request is made in writing to the clerk a hearing shall be granted within 10 days or such longer period as may be required.  Any suspension under this paragraph shall continue until the city council determines that the financial responsibility requirements of this ordinance have again been met.