4. Ord. No. 93 Regulating LiquorCITY OF SCANDIA
ORDINANCE NO. 93
AN ORDINANCE ADOPTING LIQUOR REGULATIONS FOR
THE CITY OF SCANDIA
The City Council of the City of Scandia hereby ordains:
The City Council of the City of Scandia hereby adopts liquor regulations for the City of
Scandia as follows:
General Provisions
Section 1. Adoption of state law by reference
Section 2. City may be more restrictive than state law
Section 3. Definitions
Section 4. Nudity on the premises of licensed establishments prohibited
Licensing
Section 20.
Number of licenses which may be issued
Section 21.
Term and expiration of licenses
Section 22.
Kinds of liquor licenses
Section 23.
License fees; pro rata
Section 24.
Council discretion to grant or deny a license
Section 25.
Application for license
Section 26.
Description of premises
Section 27.
Applications for renewal
Section 28.
Transfer of license
Section 29.
Investigation
Section 30.
Hearing and issuance
Section 31.
Restrictions on issuance
Section 32.
Conditions of license
Section 33.
Hours and days of sale
Section 34.
Minors on premises
Section 35.
Restrictions on purchase and consumption
Section 36.
Suspension and revocation
Section 99. Penalties
City of Scandia, Minnesota
Ordinance No. 93
GENERAL PROVISIONS
Section 1. ADOPTION OF STATE LAW BY REFERENCE.
The provisions of M.S. Ch. 340A, as they may be amended from time to time, with
reference to the definition of terms, conditions of operation, restrictions on consumption,
provisions relating to 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 hereby
adopted by reference and are made a part of this Ordinance as if set out in full. It is the intention
of the City Council that all future amendments to M. S. Ch. 340A are hereby adopted by reference
or referenced as if they had been in existence at the time this Ordinance is adopted.
Section 2. CITY MAY BE MORE RESTRICTIVE THAN STATE LAW.
The Council is authorized by the provisions of M.S. § 340A.509, as it may be amended
from time to time, to impose, and has imposed in this Ordinance, additional restrictions on the sale
and possession of alcoholic beverages within its limits beyond those contained in M.S. Ch. 340A,
as it may be amended from time to time.
Section 3. DEFINITIONS.
In addition to the definitions contained in M.S. § 340A.101, as it may be amended from
time to time, the following terms are defined for purposes of this Ordinance:
LIQUOR. As used in this Ordinance, without modification by the words "intoxicating" or
"3.2 percent malt," includes both intoxicating liquor and 3.2 percent malt liquor.
RESTAURANT. An eating facility, other than a hotel, under the control of a single
proprietor or manager, where meals are regularly prepared on the premises, where full
waitress/waiter table service is provided, where a customer orders food from printed menus and
where the main food course is served and consumed while seated at a single location. To be a
"restaurant" as defined by this section, an establishment shall have a license from the state as
required by M.S. § 157.16, as it may be amended from time to time, and meet the definition of
either a "small establishment," "medium establishment" or "large establishment" as defined in M.S.
§ 157.16, Subd. 3d, as it may be amended from time to time. An establishment which serves
prepackaged food that receives heat treatment and is served in the package or frozen pizza that is
heated and served, shall not be considered to be a restaurant for purposes of this Ordinance unless
it meets the definitions of "small establishment", "medium establishment" or "large establishment."
Section 4. 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 Ordinance. This is to protect and assist the
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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 that the prohibition of
nudity on the premises of any establishment licensed under this Ordinance, as set forth in this
section, reflects the prevailing community standards of the city.
(B) It is unlawful for any 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, wine, or 3.2 percent malt liquor license or
the imposition of a civil penalty under the provisions of §99. Penalty, see §99.
LICENSING
Section 20. NUMBER OF LICENSES WHICH MAY BE ISSUED.
State law establishes the number of liquor licenses that a city may issue. However, the
number of licenses which may be granted under this Ordinance is limited to the number of licenses
which were issued as of the effective date of this Ordinance. The Council in its sound discretion
may provide by ordinance that a larger number of licenses may be issued up to the number of
licenses authorized by M.S. Ch. 340A, as it may be amended from time to time.
Section 21. TERM AND EXPIRATION OF LICENSES.
Each license shall be issued for a maximum period of one year. All licenses, except
temporary licenses, shall expire on December 31 of each year unless another date is provided by
ordinance. All licenses shall expire on the same date. Temporary licenses expire according to their
terms. Consumption and display permits issued by the Commissioner of Public Safety, and the
accompanying city consent to the permit, shall expire on March 31 of each year.
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Section 22. KINDS OF LIQUOR LICENSES.
The Council is authorized to issue the following licenses and permits, up to the number
specified in §20.
(A) 3.2 percent malt liquor on -sale licenses, which may be issued only to golf courses,
restaurants, hotels, clubs, bowling centers, and establishments used exclusively for the sale of 3.2
percent malt liquor with the incidental sale of tobacco and soft drinks.
(B) 3.2 percent malt liquor off -sale licenses.
(C) Temporary 3.2 percent malt liquor licenses which may be issued only to a club,
charitable, religious, or nonprofit organization.
(D) Off -sale intoxicating liquor licenses. The fee for an off sale intoxicating liquor license
established by the Council under §23 shall not exceed $100 or a greater amount which may be
permitted by M.S. § 340A.408, Subd. 3, as it may be amended from time to time.
(E) On -sale intoxicating liquor licenses, which may be issued to the following
establishments as defined by M.S. § 340A.101, as it may be amended from time to time, and this
ordinance: hotels, restaurants, bowling centers, theaters, clubs or congressionally chartered
veterans organizations, and exclusive liquor stores. Club licenses may be issued only with the
approval of the Commissioner of Public Safety. The fee for club licenses established by the
Council under §23 shall not exceed the amounts provided for in M.S. § 340A.408, Subd. 2b, as it
may be amended from time to time. The Council may in its sound discretion authorize a retail
on -sale licensee to dispense intoxicating liquor off the licensed premises at a community festival
held within the city under the provisions of M.S. § 340A.404, Subd. 4b, as it may be amended
from time to time. The Council may in its sound discretion authorize a retail on -sale licensee to
dispense intoxicating liquor off the licensed premises at any convention, banquet, conference,
meeting, or social affair conducted on the premises of a sports, convention, or cultural facility
owned by the city, under the provisions of M.S. § 340A.404, Subd. 4a, as it may be amended
from time to time; however, the licensee is prohibited from dispensing intoxicating liquor to any
person attending or participating in an amateur athletic event being held on the premises.
(F) Sunday on -sale intoxicating liquor licenses. Sunday on -sale intoxicating liquor licenses
may be issued only to a restaurant as defined in Section 3, club, bowling center, or hotel which
has a seating capacity of at least 30 persons, which holds an on -sale intoxicating liquor license,
and which serves liquor only in conjunction with the service of food. The maximum fee for this
license, which shall be established by the Council under the provisions of Section 23, shall not
exceed $200, or the maximum amount provided by M.S. § 340A.504, Subd. 3c, as it may be
amended from time to time.
(G) Combination on-sale/off-sale intoxicating liquor licenses.
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(H) Temporary on -sale intoxicating liquor licenses, with the approval of the Commissioner
of Public Safety, which may be issued only in connection with a social event sponsored by a club,
charitable, religious, or other nonprofit corporation that has existed for at least three years. No
license shall be for longer than four consecutive days, and the city shall issue no more than 12
days worth of temporary licenses to any one organization in one calendar year.
(I) On -sale wine licenses, with the approval of the Commissioner of Public Safety to:
theaters, restaurants that have facilities for seating at least 25 guests at one time and meet the
criteria of M.S. § 340A.404, Subd. 5, as it may be amended from time to time, and which meet
the definition of restaurant in §3; and to licensed bed and breakfast facilities which meet the
criteria in M.S. § 340A.401, Subd. 1, as it may be amended from time to time. The fee for an
on -sale wine license established by the Council under the provisions of §23 shall not exceed
one-half of the license fee charged for an on -sale intoxicating liquor license. The holder of an
on -sale wine license who also holds an on -sale 3.2 percent malt liquor license is authorized to sell
malt liquor with a content over 3.2 percent (strong beer) without an additional license.
(J) One day consumption and display permits with the approval of the Commissioner of
Public Safety to a nonprofit organization in conjunction with a social activity in the city sponsored
by the organization.
(K) Approval of the issuance of a consumption and display permit by the Commissioner of
Public Safety. The maximum amount of the additional fee which may be imposed by the Council
on a person who has been issued a consumption and display permit under the provisions of §23
shall not exceed $300, or the maximum amount permitted by M. S. § 340A.414, Subd. 6, as it
may be amended from time to time. Consumption and display permits shall expire on March 31 of
each year.
Section 23. LICENSE FEES; PRO RATA.
(A) No license or other fee established by the city shall exceed any limit established by
M.S. Ch. 340A, as it may be amended from time to time, for a liquor license.
(B) The Council may establish by ordinance from time to time the fee for any of the liquor
licenses it is authorized to issue. The license fee may not exceed the cost of issuing the license and
other costs directly related to the enforcement of the liquor laws and this Ordinance. No liquor
license fee shall be increased without providing mailed notice of a hearing on the proposed
increase to all affected licensees at least 30 days before the hearing.
(C) The fee for all licenses, except temporary licenses, granted after the commencement of
the license year shall be prorated on a quarterly basis.
(D) All license fees shall be paid in full at the time the application is filed with the city. If
the application is denied, the license fee shall be returned to the applicant.
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(E) A refund of a pro rata share of an annual license fee may occur only if authorized by
M.S. § 340A.408, Subd. 5, as it may be amended from time to time.
Section 24. COUNCIL DISCRETION TO GRANT OR DENY A LICENSE.
The Council in its sound discretion may either grant or deny the application for any license
or for the transfer or renewal of any license. No applicant has a right to a license under this
ordinance.
Section 25. APPLICATION FOR LICENSE.
(A) Form. Every application for a license issued under this ordinance 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 applicant's 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. 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 Ordinance, the
applicant shall demonstrate proof of financial responsibility as defined in M.S. § 340A.409, as it
may be amended from time to time, with regard to liability under M.S. § 340A.801, as it may be
amended from time to time. This proof will be filed with the city and the Commissioner of Public
Safety. Any liability insurance policy filed as proof of financial responsibility under this section
shall conform to M.S. § 340A.409, as it may be amended from time to time. Operation of a
business which is required to be licensed by this Ordinance without having on file with the city at
all times effective proof of financial responsibility is a cause for revocation of the license. Penalty,
see §99.
Section 26. DESCRIPTION OF PREMISES.
The application shall specifically describe the compact and contiguous premises within
which liquor may be dispensed and consumed.
Section 27. APPLICATIONS FOR RENEWAL.
At least 90 days before a license issued under this Ordinance 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 the license
renewed.
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Section 28. TRANSFER OF LICENSE.
No license issued under this Ordinance may be transferred without the approval of the
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 of the provisions of this code applying to applications for a license shall apply. Penalty,
see §99.
Section 29. INVESTIGATION.
(A) Preliminary background and financial investigation. On an initial application for a
license, on an application for transfer of a license and, in the sound discretion of the Council that
it is in the public interest to do so, on an application for renewal of a license, the city shall 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 with the application
an investigation fee of $500 which shall be in addition to any license fee. If the cost of the
preliminary investigation is less than $500, 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, in the sound discretion of the Council, a comprehensive background and
financial investigation, 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 actually
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 license or an on -sale wine license.
Section 30. HEARING AND ISSUANCE.
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 shall in its sound discretion grant or deny the application. No license shall
become effective until the proof of financial security has been approved by the Commissioner of
Public Safety.
Section 31. RESTRICTIONS ON ISSUANCE.
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(A) Each license shall be issued only to the applicant for the premises described in the
application.
(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 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.
(D) No license shall be issued for any place or any business ineligible for a license under
state law.
(E) 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 division (E) shall not apply to any license existing on the effective date of this Ordinance or to
the renewal of an existing license.
Section 32. 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) 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.
(B) Every licensee is 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
Ordinance and the law equally with the employee.
(C) 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 hours and after business hours during the
time when customers remain on the premises without a warrant.
(D) No on -sale establishment shall display liquor to the public during hours when the sale
of liquor is prohibited.
(E) Compliance with financial responsibility requirements of state law and of this
Ordinance is a continuing condition of any license. Penalty, see §99.
Section 33. HOURS AND DAYS OF SALE.
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(A) The hours of operation and days of sale shall be those set by M.S. § 340A.504, as it
may be amended from time to time, except that no sale of 3.2 percent malt liquor or intoxicating
liquor may be made between the hours of 1:00 a.m. and 8:00 a.m. on any day.
(B) No person shall consume nor shall any on -sale licensee permit any consumption of
intoxicating liquor or 3.2 percent malt 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
intoxicating liquor or 3.2 percent malt 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. Penalty, see §99.
Section 34. MINORS ON PREMISES.
(A) No person under the age of 18 years shall be employed in any rooms constituting the
place in which intoxicating liquors or 3.2 percent malt liquor are 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
multi -purpose building serving food in rooms in which intoxicating liquors or 3.2 percent malt
liquor are 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. Penalty, see §99.
Section 35. RESTRICTIONS ON PURCHASE AND CONSUMPTION.
No person shall mix or prepare liquor for consumption 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 M.S. § 340A.414, as it may be amended from time to time, which has been
approved by the Council, and no person shall consume liquor in any such place. Penalty, see §99.
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Section 36. 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 Ordinance 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 Act, M.S. §§
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 Ordinance or M.S. Ch. 340A, as it
may be amended from time to time or any rules promulgated under that Ordinance 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 percent malt liquor, or violation of §4, the license shall be revoked.
(2) The license shall be suspended by the Council after a finding under division (A)
that the licensee has failed to comply with any applicable statute, rule, or provision of this
Ordinance 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.
(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 Ordinance 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 Clerk, a hearing before the Council shall
be granted within ten days. Any suspension under this Subdivision (C) shall continue until the
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Council determines that the financial responsibility requirements of state law and this Ordinance
have again been met.
(D) The provisions of §99 pertaining to administrative penalty may be imposed in addition
to or in lieu of any suspension or revocation under this Ordinance. Penalty, see §99.
Section 99. PENALTIES.
(A) Any person violating the provisions of this Ordinance or M.S. Ch. 340A as it may be
amended from time to time or any rules promulgated under this Ordinance as it may be amended
from time to time 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 M.S. Ch.
340A, as it may be amended from time to time, and of this Ordinance. 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, M.S. §§ 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 licenses 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) The term "violation" as used in this section includes any and all violations of the
provisions of this Ordinance, or of M.S. Ch. 340A, as it may be amended from time to time or any
rules promulgated under this Ordinance as they may be amended from time to time. The number
of violations shall be determined on the basis of the history of violations for the preceding
three-year period. Revocation shall occur within 60 days following a violation for which
revocation is imposed.
Passed and adopted by the City Council of the City of Scandia this 2nd day of January,
2007.
ATTEST:
Anne Hurlburt, Clerk/Administrator
Dennis D. Seefeldt, Mayor
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