6.a Hearing on Liquor License Violation
Staff Report
Date of Meeting: October 16, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Hearing on Liquor License Violation
Background:
On July 10, 2018, Scandia Olde Towne Liquors failed an alcohol compliance check conducted
by the Washington County Sheriff’s Office, when a beer was to an underage buyer.
A complaint was filed with the District Court stating that there is probably cause to believe
the defendant (Adrian Joseph Franssen, committed the offense of sale of alcohol to a
person under the age of 21.
On August 14, 2018 Mr. Franssen appeared for court entered a plea of guilty to the charge
of providing alcohol to a minor. The agreed upon dispositions was a fine of $387 including
surcharge and 90 days in jail, with all 90 days suspended for one year on the condition he be
law abiding and have no same or similar offenses. This was a misdemeanor sentence, even
though the original charge was a gross misdemeanor. City Prosecutor Mike Welsh noted
that first time defendants in similar alcohol compliance failures almost always receive
similar treatment on my Forest Lake and Scandia cases.
City Ordinance No. 93, Adopting Liquor Regulations, provides that the City Council hold a
hearing on a violation of the ordinance or applicable statutes, to consider the violation and
the proposed penalty, and hear any person who may wish to speak. On October 2, 2018
Scandia Olde Towne Liquors’s owner was notified that the city would hold the hearing on
October 16, 2018.
For a first violation Section 36 of the Ordinance specifies that for the first vio lation within
any three-year period the minimum suspension is one day in addition to any criminal or civil
penalties which may be imposed. A minimum presumptive civil penalty of $500 must be
imposed in addition to any suspension for a first violation unless the license is revoked.
Recommendation: The City Council should hold the hearing, allowing representatives of Scandia
Olde Towne Liquors and any other persons to speak. At conclusion of the hearing, the Council
should make findings regarding the violation and impose the appropriate penalties. A draft
resolution has been prepared for the Council’s use. The minimum penalties have been included in
the draft but may be altered by the Council. The Council will need to determine a date or dates on
which any suspension will be served.
10
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)
11
shall continue until the 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.
Dennis D. Seefeldt, Mayor
ATTEST:
Anne Hurlburt, Clerk/Administrator
14727 209 th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433 -2274 Fax (651) 433 -5112 http://www.ci.scandia.mn.us
October 2, 2018
Adrian Franssen
Scandia Olde Towne Liquors
21190 Ozark Ave. N
Scandia, MN 55073
RE: Liquor License Violation
Notice of City Council Hearing
Dear Mr. Franssen;
The letter is your notice that the Scandia City Council will hold a hearing on a liquor
license violation that occurred at your business, as required by Ordinance No. 93
Adopting Liquor Regulations for the City of Scandia, at the following date and time:
Tuesday, October 16, 2018 at7:00 p.m.
Board Room, Scandia Community Building
14727 209th St. N
The alleged violation occurred on July 10, 2018 when you were charged with furnishing
alcohol to an underage person. The Council will hold a hearing on the violation and the
proposed penalty, and hear any person who wishes to speak.
I have enclosed the sections of the Ordinance that relate to Suspension and Revocation
and Penalties. Please contact me by telephone at 651.433.2274 or email
(n.soltis@ci.scandia.mn.us) if you have any questions.
Sincerely
Neil Soltis
City Administrator