Battle Lake - Business Regulations CHAPTER 111: ALCOHOLIC BEVERAGES

1 Battle Lake - Business Regulations CHAPTER 111: ALCOHOLIC BEVERAGES Section General Provisions 111.01 State law applicable 111.02 Definitions 111.03 Interpretation 111.04 Public consumption 111.05 Consumption in unlicensed place 111.06 Prohibited acts by person under age for purchase 111.07 Allowing or inducing person under legal age to purchase or consume 111.08 Nudity on the premises of licensed establishments prohibited Licenses 111.20 License required; kinds of licenses 111.21 Number of licenses allowed 111.22 Submission of information to Commissioner 111.23 Eligible applicants 111.24 Premises of applicant 111.25 Applications 111.26 Investigation 111.27 Issuance 111.28 Duration 111.29 Fees 111.30 Refunds 111.31 Bond and financial responsibility 111.32 Transfer of licenses 111.33 Hours of sale 111.34 Consumption after hours 111.35 Premises open when sale prohibited 111.36 Gambling 111.37 Conditions 111.38 Suspension and revocation 111.39 Permit required for set-ups and bottle clubs 111.40 One-day permits 111.41 Seasonal outdoor sales 111.50 Municipal store 111.51 Manager; duties 111.52 Employees 111.53 Bond 111.54 Financial responsibility 111.55 Liquor store fund 111.56 Handling of funds 111.57 Audit 111.58 Hours 111.59 Samples 111.60 Restrictions 111.61 Misconduct of employee 111.99 Penalty Municipal Liquor Store

2 GENERAL PROVISIONS 111.01 STATE LAW APPLICABLE. The provisions of this chapter relating to alcoholic beverages are adopted pursuant to M.S. Chapter 340A, as it may be amended from time to time. All requirements of M.S. Chapter 340A, pertaining to alcoholic beverages shall apply. As permitted by M.S. Chapter 340A, this chapter also establishes additional local regulations pertaining to alcoholic beverages. ( 87 Code, 6.111) 111.02 DEFINITIONS. All words and phrases used in this chapter which are defined in M.S. Chapter 340A, as it may be amended from time to time, or which are otherwise given a special meaning there, are used in this chapter with reference to their statutory definition or meaning unless given a special or more limited meaning here or elsewhere in this chapter. For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning. RESTAURANT. Any establishment which is a restaurant as defined in M.S. 340A.101, subd. 25, as it may be amended from time to time, and which has a seating capacity for not less than 30 guests at one time. ( 87 Code, 6.112) 111.03 INTERPRETATION. The terms 3.2% malt liquor and intoxicating liquor are used in this chapter to maintain consistency between terminology in this chapter and in M.S. Chapter 340A, as it may be amended from time to time. The use of the term 3.2% malt liquor in this code does not represent a determination by the Council that the alcoholic beverages referred to under that term are not intoxicating beverages. ( 87 Code, 6.113) 111.04 PUBLIC CONSUMPTION. No person shall consume any alcoholic beverage upon any public street, alley or sidewalk in the city. This prohibition shall not apply if a temporary license has been granted for sale at the location where consumption occurs. ( 87 Code, 6.131) Penalty, see 111.99 111.05 CONSUMPTION IN UNLICENSED PLACE. No person shall consume any alcoholic beverage in any place of business open to the public for the consumption of alcoholic beverages knowing the place not to hold a license or permit which allows consumption of the alcoholic beverage. Nor shall any patron of any business establishment consume any alcoholic beverage at the establishment unless it holds a license for consumption of the alcoholic beverage. ( 87 Code, 6.132) Penalty, see 111.99 111.06 PROHIBITED ACTS BY PERSON UNDER AGE FOR PURCHASE. No person under the legal age for the purchase of any alcoholic beverage shall do any of the following: (A) Purchase or attempt to purchase any alcoholic beverage; (B) Induce or attempt to induce another person not his or her parent or guardian to purchase any alcoholic beverage for him or her; (C) For the purpose of purchasing or attempting to purchase any alcoholic beverage: (1) Misrepresent his or her age; (2) Alter any driver s license or other identification; or (3) Possess any altered or false driver s license or other identification; (D) Enter any establishment licensed for the sale of alcoholic beverages, or the municipal liquor store, for the purpose of purchasing, having served or having delivered any alcoholic beverage. This provision shall not prohibit the person from entering for any other lawful purpose; (E) Consume any alcoholic beverage unless with the consent of his or her parent or

guardian while in the household of the parent or guardian giving the consent; and (F) Possess any alcoholic beverage at a place other than the household of his or her parent or guardian. This prohibition shall apply regardless of whether the person intends to deliver the alcoholic beverage to the household of his or her parent or guardian for consumption there. ( 87 Code, 6.133) Penalty, see 111.99 111.07 ALLOWING OR INDUCING PERSON UNDER LEGAL AGE TO PURCHASE OR CONSUME. No person shall do any of the following: (A) If a 3.2% malt liquor licensee, an intoxicating liquor licensee, or a bottle club permittee, allow any person under the legal age to purchase any alcoholic beverage to purchase, possess, or consume any alcoholic beverage on the licensed premises; (B) Sell, barter, furnish, or give any alcoholic beverage to a person under the legal age for purchase of the alcoholic beverage. This shall not apply to the parent or guardian of a person under the legal age for purchase who gives or furnishes an alcoholic beverage to the person under the legal age for purchase solely for consumption in the household of the parent or guardian; (C) For the purpose of assisting a person under the legal age for the purchase of any alcoholic beverage in purchasing an alcoholic beverage: (1) Misrepresent the age of the person under the legal age for purchase; (2) Alter any driver s license or other identification for the person under the legal age for purchase; or (3) Furnish to or procure for the person under the legal age for purchase any altered or false driver s license or other identification; (D) Induce or attempt to induce any person under the legal age for purchase of an alcoholic beverage to purchase or procure any alcoholic beverage; and (E) Induce or attempt to induce any person under the legal age for purchase of an alcoholic beverage to consume any alcoholic beverage, other than at the household of the parent or guardian of the person under the legal age for purchase with the consent of the parent or guardian. ( 87 Code, 6.134) Penalty, see 111.99 111.08 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 chapter. 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 that the prohibition of nudity on the premises of any establishment licensed under this chapter, 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 non-transparent 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% malt liquor license or the imposition of a civil penalty under the provisions of 10.99. Penalty, see 111.99 LICENSES 111.20 LICENSE REQUIRED; KINDS OF LICENSES. (A) No person, except a person by law not required to obtain a license from the city, may 3

directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, or otherwise dispose of any alcoholic beverage as part of a commercial transaction in the city without having obtained a license to do so as provided in this subchapter. Any person licensed to sell intoxicating liquor at on-sale shall not be required to obtain an on-sale license for 3.2% malt liquor. ( 87 Code, 6.211) (B) 3.2% malt liquor licenses shall be of the following kinds: (1) Off-sale 3.2% malt liquor license. An off-sale 3.2% malt liquor license shall permit the sale of 3.2% malt liquor in the original package for consumption off the licensed premises only; (2) On-sale 3.2% malt liquor license. An on-sale 3.2% malt liquor license shall permit sale of 3.2% malt liquor for consumption on the licensed premises only. An on-sale license shall be issued only to drugstores, restaurants, hotels, clubs, and establishments used exclusively for the sale of 3.2% malt liquor with the incidental sale of tobacco and soft drinks; and (3) Temporary on-sale 3.2% malt liquor license. A temporary on-sale 3.2% malt liquor license shall permit the temporary sale of 3.2% malt liquor for consumption on the licensed premises only. A temporary on-sale license shall be issued only to a club or a charitable, religious, or nonprofit organization. A temporary license may authorize the sale of 3.2% malt liquor in any school or school building. A temporary license shall be subject to any terms prescribed by the Council as a condition of the issuance of the license.( 87 Code, 6.212) (C) Intoxicating liquor licenses shall be of the following kinds: (1) On-sale intoxicating liquor license. An on-sale intoxicating liquor license shall permit sale of intoxicating liquor for consumption on the licensed premises only. An on-sale license shall be issued only to an individual person operating a hotel or restaurant, or to a club which does not or cannot avail itself of a club on-sale intoxicating liquor license. (2) On-sale wine license. An on-sale wine license shall permit sale of wine of up to 14% alcohol by volume for consumption with the sale of food on the licensed premises only. An on-sale wine license shall be issued only to a restaurant having facilities for seating at least 25 guests at one time. An on-sale wine license shall authorize the sale of wine on all days of the week unless the Council restricts the license s authorization to the sale of wine on all days except Sundays. An on-sale wine license shall be issued only with the approval of the Commissioner of Public Safety. (3) Club on-sale intoxicating liquor license. A club on-sale intoxicating liquor license shall permit sale of intoxicating liquor to club members and bona fide guests of club members only, for consumption on the licensed premises only. A club on-sale license shall be issued only to a congressionally chartered veterans organization which has been in existence for ten years or more or to any other club which has been in existence for 15 years or more. (4) Temporary on-sale intoxicating liquor license. A temporary on-sale intoxicating liquor license shall be issued only to a club or charitable, religious, or other nonprofit organization in existence for at least three years. The license shall permit sale of intoxicating liquor for consumption on the licensed premises only, for not more than three consecutive days specified in the license, in connection with a social event in the city sponsored by the licensee. In granting the license, the Council may authorize sale on premises other than premises the licensee owns or permanently occupies. The Council may provide that the licensee may contract for intoxicating liquor catering services with an on-sale intoxicating liquor licensee. A temporary on-sale license shall be subject to any additional terms imposed by the Council. A temporary on-sale license shall not be valid until first approved by the Commissioner of Public Safety. ( 87 Code, 6.213) (5) (a) Special Sunday on-sale license. Special on-sale licenses for the sale of intoxicating liquor on Sunday shall be issued only to bowling centers and to hotels, restaurants, and clubs as defined in M.S. 340A.101, as it may be amended from time to time. All sales at such establishments shall be in accordance with M.S. 340A.504, subd. 3, as it may be amended from time to time. (b) Sunday hours. The sale of on-sale intoxicating liquor on Sundays is allowed between the hours of 10:00 a.m. on Sunday and 1:00 a.m. on Monday. Establishments serving liquor on Sundays must obtain a special license under subsection (5)(a) above. (Ord. 100, passed 11-28-00) Penalty, see 111.99 4

111.21 NUMBER OF LICENSES ALLOWED. The Council may issue the number of on-sale intoxicating liquor licenses as permitted by M.S. 340A.413 and 340A.601 as amended. Within any limits established by law, the Council may, by resolution, limit the number of any other kind of license which may be issued. 5 111.22 SUBMISSION OF INFORMATION TO COMMISSIONER. Within ten days of the issuance of any on-sale intoxicating liquor license, the Clerk- Treasurer shall submit to the State Commissioner of Public Safety the licensee s name and address and trade name, and the effective date and expiration date of the license. The Clerk- Treasurer shall inform the Commissioner of any transfer, cancellation, suspension or revocation during the license period of any on-sale intoxicating liquor license. The Clerk-Treasurer shall also submit to the Commissioner any other information required by law to be submitted concerning any license or permit of any kind. ( 87 Code, 6.219) 111.23 ELIGIBLE APPLICANTS. Applicants for licenses shall meet all requirements of law and of this subchapter, including any special requirements for the specific license sought. No 3.2% malt liquor license and no intoxicating liquor license shall be issued to: (A) A person who is not a citizen of the United States or who is not a resident alien; (B) A person under 21 years of age; (C) A person who within five years of the license application has been convicted of a willful violation of a federal or state law or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution, of intoxicating or 3.2% malt liquors; (D) A person who has had an intoxicating liquor or 3.2% malt liquor license revoked within five years of the license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than 5% of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; or (E) A person not of good moral character and repute. ( 87 Code, 6.221) 111.24 PREMISES OF APPLICANT. The licensed premises shall meet all requirements of law and of this subchapter, including any special requirements for the specific license sought. In addition to any requirements which appear elsewhere in this subchapter, the following requirements shall apply: (A) No license shall be granted for any premises restricted against commercial use through zoning ordinances and other proceedings or legal processes regularly had for that purpose, except a license may be issued to a restaurant in an area which was restricted against commercial uses after the establishment of the restaurant. This restriction shall not apply to a temporary on-sale 3.2% malt liquor license or to a temporary on-sale intoxicating liquor license, except to the extent required by law; (B) No license shall be granted for any premises within 1,500 feet of any public school that is not within the city. This restriction shall not apply to a temporary on-sale 3.2% malt liquor license or to a temporary on-sale intoxicating liquor license, except to the extent required by law; (C) No license shall be granted to any person in connection with the premises of another to whom a license could not by law be issued. This shall not prevent the granting of a license to a proper lessee because the person has leased the premises of a minor, a noncitizen who is not a resident alien, or a person who has been convicted of a crime other than a violation of M.S. Chapter 340A, as it may be amended from time to time; (D) No license shall be granted for any premises within 50 feet of any public school or church, as measured by the shortest distance between the nearest point of the licensed premises to the school or church building. This limitation shall not apply to a temporary on-sale 3.2% malt liquor license or a temporary on-sale intoxicating liquor license. The Council may, at its discretion, waive this requirement and continue to issue any license when the school or church is established at the location in question after a license has first been issued, upon finding that the

public health, safety and welfare will not be harmed by issuance of the license; and (E) No license shall be granted for any premises upon which any real estate taxes or installments of special assessments are delinquent, or upon which any financial claims of the city are delinquent. ( 87 Code, 6.222) 111.25 APPLICATIONS. Any person desiring a license shall file with the Clerk-Treasurer a written application. When so required by law, the application shall be in the form prescribed by the State Bureau of Criminal Apprehension. Otherwise it shall be in the form prescribed by the Clerk-Treasurer. The applicant shall present any additional information required by the Council. Every applicant for the issuance, transfer or renewal of a license shall include a copy of each summons received by the applicant under M.S. 340A.802, as it may be amended from time to time, during the preceding year. No person shall make any false statement in or concerning any application. 111.26 INVESTIGATION. (A) Upon an initial application for any license, or upon any application to transfer to a new licensee any existing license, the Council shall make, or cause to be made, such background and financial investigation of the applicant as the Council deems appropriate. The Council may also conduct such investigation regarding the licensee as it deems appropriate upon an application for renewal of an existing license, or at any other time. The Council may, by ordinance, establish an investigation fee required to be paid by each applicant for a new license or for transfer of a license, and may require that the fee be paid by the applicant at the time of making application for a license. (B) If the Council determines, or if the Bureau of Criminal Apprehension on its own initiative determines, that a comprehensive background and financial investigation is necessary upon an initial application for any on-sale intoxicating liquor license, or upon any application to transfer to a new licensee any existing on-sale intoxicating liquor license, the Council may contract with the Bureau of Criminal Apprehension for the investigation, or it may otherwise conduct the investigation itself. In addition, a comprehensive investigation may be required by the Council prior to the renewal of an existing on-sale intoxicating liquor license if the Council deems it in the public interest. When a comprehensive investigation is conducted the applicant shall pay to the city a comprehensive investigation fee not to exceed the amount provided by law if the investigation is conducted within the state, or the actual cost not to exceed the amount provided by law if the investigation is required outside the state. The Council shall, by ordinance, fix the in-state comprehensive investigation fee, within the maximum amount provided by law, and the Council may, by ordinance, fix a maximum out-of-state comprehensive investigation fee, below the maximum amount provided by law. ( 87 Code, 6.224) 111.27 ISSUANCE. After investigation and opportunity for an applicant to be heard, the Council shall grant or deny the application in its discretion. If the application is approved, the Clerk-Treasurer shall issue the license to the applicant upon the applicant complying with all requirements of law and of this subchapter relating to issuance of the license. If any license, bond or insurance is required by law to be approved by the Commissioner of Public Safety, the license shall not become effective until approval of the Commissioner is granted. ( 87 Code, 6.226) 111.28 DURATION. A license, other than a temporary on-sale 3.2% malt liquor license or a temporary on-sale intoxicating liquor license, shall become effective on January 1 of the year for which it is issued, or such later date as is requested in the application or as the applicant complies with all requirements of law and of this subchapter relating to issuance of the license. The license shall expire on the last day of December of the year for which it is issued. A temporary on-sale 3.2% malt liquor license or a temporary on-sale intoxicating liquor license shall be issued for a specific period, which shall be stated on the license. ( 87 Code, 6.227) 111.29 FEES. (A) Establishment. Within any limits established by law, the Council shall, by ordinance, 6

establish the fee for each kind of license. ( 87 Code, 6.231) (B) Pro rata fees. If a license is issued for less than a full calendar year, the fee shall be one-twelfth of the annual fee for each month or fraction of a month for which the license is issued. The Council may, by ordinance, fix a minimum pro rata fee. ( 87 Code, 6.232) (C) Payment. An applicant shall pay the license fee in full at the time application is made for a license. If an application is rejected, the Clerk-Treasurer shall refund the amount paid, unless the Council in rejecting the license orders that the fee or a portion of it be retained from an applicant making a false statement in or concerning an application or from an applicant ineligible to receive a license. ( 87 Code, 6.233) 111.30 REFUNDS. (A) No part of the fee for a license which has been issued may be refunded, except a pro rata portion of the fee may be refunded to the licensee or to the licensee s estate 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. (B) An application for refund must be made to the Clerk-Treasurer within 30 days after the business ceases to operate. The Council may grant or deny the refund in its discretion. If the refund is granted, there shall be refunded one-twelfth of the annual fee for each full month remaining in the license year. In no event shall the portion of the annual fee retained be less than the minimum pro rata fee, if any, established for a license issued during the license year. ( 87 Code, 6.234) 111.31 BOND AND FINANCIAL RESPONSIBILITY. (A) Bond. Before issuance of a regular on-sale intoxicating liquor license, the applicant shall file with the Clerk-Treasurer a bond with corporate surety, or cash or United States government bonds in lieu of bond. The bond shall be in the amount of $5,000. The bond shall be conditioned upon the licensee obeying all laws governing the business and paying all taxes, fees, penalties, and other charges, and shall provide that the bond is forfeited to the city upon any violation of law. If an insurance policy under division (B) of this section is made subject to all the conditions required for a bond, to the amount required for a bond, no separate bond shall be required. This requirement for the giving of bond shall apply only to licensees required by law to give bond. As a condition of the issuance of any license of any kind to a licensee not otherwise required to give bond, the Council may require that the licensee furnish bond or other security of not less than $1,000 nor more than $3,000 when the Council determines that to do so would be in the public interest. ( 87 Code, 6.241) (B) Proof of financial responsibility. No license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed under M.S. 340A.801, as it may be amended from time to time. The Clerk-Treasurer shall submit to the Commissioner of Public Safety the applicant s proof of financial responsibility for those licensees for which submission of proof to the Commissioner is required. The requirement for proof of financial responsibility may be met by filing with the Clerk- Treasurer: (1) A certificate that there is in effect for the license period an insurance policy or pool providing at least $100,000 of coverage because of bodily injury to any one person in any one occurrence, $200,000 because of bodily injury to two or more persons in any one occurrence, $20,000 because of injury to or destruction of property of others in any one occurrence, $100,000 for loss of means of support of any one person in any one occurrence, and $200,000 for loss of means of support of two or more persons in any one occurrence; (2) A bond of a surety company with minimum coverages as provided in subsection (1); or (3) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $200,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $200,000. ( 87 Code, 6.242) (C) The insurer may provide the coverage required by this division in combination with 7

other insurance coverage. An annual aggregate policy limit for dram shop insurance of not less than $300,000 per policy year may be included in the policy provisions. A liability insurance policy required by this section must provide that it may not be canceled for any cause by either the insured or the insurer unless the canceling party has first given a ten-day notice in writing to the Clerk-Treasurer of intent to cancel the policy. The proof of financial responsibility given shall also meet all other requirements of law for proof of financial responsibility. ( 87 Code, 6.242) (D) Financial responsibility of certain licensees. The requirements of divisions (B) and (C) of this section for demonstration of proof of financial responsibility shall not apply to licensees who are not required by law to do so, and who file with the Clerk-Treasurer an affidavit establishing that fact. As a condition of the issuance of any license of any kind to a licensee not required by law to demonstrate proof of financial responsibility, the Council may require that the licensee demonstrate proof of financial responsibility in such amount and manner as the Council deems advisable when the Council determines that to do so would be in the public interest. ( 87 Code, 6.243) (E) Filing. No licensee who is required to give bond or to demonstrate proof of financial responsibility shall commence business until the requirement is met and the bond or proof of financial responsibility, or both if applicable, are filed with the Clerk-Treasurer. The Clerk- Treasurer shall not issue the license until the applicant required to do so has done so. ( 87 Code, 6.244) Penalty, see 111.99 Cross-reference: Suspension and revocation, see 111.38 111.32 TRANSFER OF LICENSES. A license shall be issued to the applicant only, and may be transferred to another applicant only with the approval of the Council. A license shall be issued only for the premises specified in the approved application, and may be transferred to another place only with the approval of the Council. Any transfer of shares of a corporate licensee, other than a transfer of shares of a publicly held corporation, shall constitute a transfer of the license, and any such transfer of shares, without prior Council approval, is cause for revocation of the license. ( 87 Code, 6.251) Penalty, see 111.99 111.33 HOURS OF SALE. No sale shall be made upon any day or at any time of day that sale is prohibited by law under the license held by the licensee. ( 87 Code, 6.252) Penalty, see 111.99 111.34 CONSUMPTION AFTER HOURS. No licensee holding an on-sale license of any kind shall permit consumption upon the licensed premises during hours that sale is prohibited. Immediately upon the hour that sale becomes prohibited, the licensee shall take up any alcoholic beverages which remain unconsumed in order to prevent their consumption after hours. ( 87 Code, 6.253) Penalty, see 111.99 111.35 PREMISES OPEN WHEN SALE PROHIBITED. If any portion of any premises having an on-sale license of any kind is open to the public when sale is prohibited, the part of the premises where alcoholic beverages are kept shall be locked against access by the public during the time that the premises are open while sale is prohibited. This requirement shall not apply to any premises which are open no more than a ½- hour after sale is prohibited. Any licensee, regardless of the kind of license held, whose premises are open to the public when sale is prohibited shall comply with all requirements of law, if any, which apply to licensees whose premises are open to the public when sale is prohibited. ( 87 Code, 6.254) Penalty, see 111.99 111.36 GAMBLING. No licensee may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises, of dice or any gambling device unless specifically permitted to do so by law and not otherwise prohibited from doing so under this code. No licensee may conduct or 8

9 permit any gambling upon the licensed premises unless specifically permitted to do so by law and not otherwise prohibited from doing so under this code. ( 87 Code, 6.255) Penalty, see 111.99 Cross-reference: Gambling, also see Chapter 130 111.37 CONDITIONS. Licenses issued shall be subject to the following conditions: (A) The licensee shall comply with all requirements of this subchapter, with all requirements of law, and with all requirements of administrative regulation relating to the license; (B) The license shall be posted in a conspicuous place in the premises; (C) No sale shall be made to any obviously intoxicated person, to any disorderly person, or to any person to whom sale is prohibited by law; (D) The licensee shall be responsible for the conduct in the licensed establishment, and for conditions of sobriety and order in it; (E) Any sale of any alcoholic beverage by any employee authorized to sell any alcoholic beverage in the establishment is the act of the licensee, except as specifically otherwise provided by law; (F) The licensee may not sell any alcoholic beverage to any person for the purpose of resale, or to any person whom the licensee has reason to believe intends to resell the alcoholic beverage, without written approval to do so from the Commissioner of Public Safety; (G) The licensee shall permit any law enforcement officer, any member of the Board of Health, and any duly acting employee of the city to enter and inspect the premises at any time the premises are open to the public, and to make any other inspection allowed by law; (H) A license is effective only for the compact and contiguous space specified in the license; (I) If a licensee dies, the personal representative of the estate may continue operation under the license for not more than 90 days after the death of the licensee, but only if the personal representative would not be prohibited under 111.23 of this subchapter or prohibited by law from having a license; and (J) No person under 18 years of age may serve or sell any alcoholic beverage in any licensed establishment, even if state law would otherwise permit the service or sale. ( 87 Code, 6.256) Penalty, see 111.99 111.38 SUSPENSION AND REVOCATION. (A) The Council shall either suspend for up to 60 days or revoke the license or permit or impose a civil fine not to exceed $2,000 for each violation on a finding that the license or permit holder has failed to comply with an applicable law, rule or ordinance relating to alcoholic beverages. No suspension or revocation shall take effect until the license or permit holder has been afforded an opportunity for a hearing as provided by law. The Council may impose the penalties provided in this section on a retail licensee who knowingly sells alcoholic beverages to another retail licensee for the purpose of resale, or on a retail licensee who purchases alcoholic beverages from another retail licensee for the purpose of resale. ( 87 Code, 6.257) (B) Lapse or cancellation of any required bond or liability insurance, or withdrawal of any required deposit of cash or securities in lieu of bond or insurance, shall effect an immediate suspension of the license without further notice or action of the Council. Notice to the licensee of cancellation or lapse of a bond or insurance policy, or notice to the licensee of withdrawal of deposited cash or securities, shall constitute notice to the licensee of the suspension or impending suspension of the license. A licensee may file with the Clerk-Treasurer a written request for hearing upon a suspension which occurs under this section. The Council shall hold a hearing within ten days of the filing of the request, or within such longer period of time as the licensee requests and the Council allows. After hearing, the suspension shall be lifted if the Council finds that the requirements for bond and for financial responsibility are met by the licensee. A suspension under this section shall continue until the Council determines that the licensee again meets the requirements for bond and for financial responsibility.

10 ( 87 Code, 6.258) Penalty, also see 10.99 111.39 PERMIT REQUIRED FOR SET-UPS AND BOTTLE CLUBS. (A) Requirement. No business establishment or club which does not hold an on-sale intoxicating liquor license may directly or indirectly allow the consumption and display of intoxicating liquor or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first having obtained a permit from the Commissioner of Public Safety to do so as provided by law. Any such permit issued by the Commissioner shall not be effective until approved by the Council. ( 87 Code, 6.261) (B) Local permit fee. Within the limits established by law, the Council shall, by ordinance, establish a local permit fee. This fee shall be in addition to any state fee which is imposed. ( 87 Code, 6.262) (C) Pro rata fee. If a permit is issued for less than a full permit year, the local permit fee shall be one-twelfth of the annual fee for each month or fraction of a month for which the permit is issued. The Council may, by ordinance, fix a minimum pro rata local permit fee. ( 87 Code, 6.263) (D) Conditions of approval. It shall be a specific condition of all permits approved by the Council that the permittee comply with all requirements of law which pertain to the permit. To the extent allowed by law, the Council may also impose any other reasonable conditions in giving its approval for any permit. ( 87 Code, 6.264) Penalty, see 111.99 111.40 ONE-DAY PERMITS. The Council may issue a one-day permit for the consumption and display of intoxicating liquor to a nonprofit organization in conjunction with a social activity in the city sponsored by the organization. The permit must be approved by the Commissioner of Public Safety. A oneday permit shall be valid only for the day indicated on the permit. A one-day permit shall be subject to any reasonable conditions imposed by the Council in granting the permit. Within the limits established by law, the Council shall, by ordinance, establish the fee for a one-day permit. The Council may not issue more than ten one-day permits in any one year. ( 87 Code, 6.265) 111.41 SEASONAL OUTDOOR SALES The sale of liquors pursuant to any of the licenses issued with this chapter shall be limited to sale and consumption inside of a structure on the licensed premises, unless the licensee applies for and receives permission from the City for sale and consumption outside of the structure on the licensed premises as indicated by receipt of a license to conduct "Seasonal Outdoor Sales". An on-sale license holder which is a restaurant as defined in the Code may include in the application or re-application the additional request to have an area that is contiguous to the completely enclosed licensed premises included in the area licensed to permit the sale and/or consumption of liquor in such contiguous area that is not wholly within a completely enclosed building. The contiguous area shall not be part of a public grounds and such area must be specified as included on the liquor liability insurance certificate. In the event that an existing licensee would like to utilize areas of their real property for special events, the Licensee may apply for a limited onsite special event permit. Each application pursuant to this section shall contain a description of the outdoor area that is proposed to be licensed and shall be accompanied by a drawing of the proposed area to be licensed. Such application shall also include a detailed description of the barriers that will be used, method of seating, ingress and egress arrangements, security provisions, sanitary and fire arrangements, and lighting. The drawing required hereunder must include the dimensions of the area, barriers, tables, aisles, and equipment, and must be drawn proportionately to scale. The drawing shall also include adjacent properties and uses (e.g. residential, commercial). Live entertainment or the use of sound producing equipment in the licensed area is prohibited except upon receipt of a special permit issued separately by the City. City staff will review such request for seasonal outdoor sales of liquors for suitability of the proposed location in light of applicable fire, building and life safety codes, zoning ordinances,

past performance of the licensee in maintaining order and obeying applicable laws in the licensed outdoor area and in the principal licensed premises, the adequacy of the proposal to provide for the safety of persons on the proposed premises, impact on the surrounding land, adequacy of lighting, appropriateness of noise level, suitability of ingress and egress arrangements including control of persons entering and leaving for purposes of preventing consumption by minors and safety arrangements. An application may be denied based on the following non-exclusive list of factors: (A) Inability to comply with fire, building and life safety codes or inability to comply with zoning ordinances; (B) Occurrences of disorderly conduct; (C) Demonstrated history or inability to provide safety on the premises; (D) Adverse impact on surrounding land, inadequate lighting, in appropriate noise levels; (E) Unsuitable ingress and egress arrangements; (F) Such other grounds if the City finds that issuing the permit is not in the best interest of the general health, welfare and safety of the citizenly. Sales of liquor in approved outdoor locations is limited to the hours and date(s) dictated by the approved permit. Any licensing of premises must be deemed experimental and as such, no expectation must be made by the licensee that the licensing of outdoor areas will be renewed, even though no misconduct occurred in the outdoor area, in the event the City Council determines to repeal the general authorization for seasonal outdoor sales. 11 MUNICIPAL LIQUOR STORE 111.50 MUNICIPAL STORE. (A) The municipal liquor store which has been established is hereby continued for the offsale of intoxicating liquor. It may also sell tobacco products, ice, soft drinks, beverages for mixing intoxicating liquor and food for consumption on the premises. It may provide recorded or live entertainment and coin-operated amusement devices for patrons of the dispensary. No retail sale of intoxicating liquor shall be made at off-sale within the city except by the municipal liquor store. ( 87 Code, 6.311) (B) The Council shall determine the location of the municipal liquor store. ( 87 Code, 6.312) Penalty, see 111.99 111.51 MANAGER; DUTIES. (A) The municipal liquor store shall be in the immediate charge of a Liquor Store Manager selected by the Council. The Manager shall be paid such compensation as is fixed by the Council. The Manager shall serve at the pleasure of the Council. ( 87 Code, 6.313) (B) The Manager shall operate the municipal liquor store, subject to the Council s direction. The Manager shall perform such duties in connection with the municipal store as the Council determines. The Manager shall conduct the municipal store in full compliance with this code and with all requirements of law and of administrative regulation which apply. ( 87 Code, 6.314) Penalty, see 111.99 111.52 EMPLOYEES. The Council may employ additional employees as needed for the proper and efficient operation of the municipal liquor store. ( 87 Code, 6.315) 111.53 BOND. The Manager shall furnish a surety bond to the city, in such amount as the Council may require, conditioned upon the faithful discharge of the duties of the Manager. The Council, at its discretion, may require any other employee to furnish bond. The bond premium shall be paid by the city unless the Council specifically requires that it be paid by the person bonded. ( 87 Code, 6.316) 111.54 FINANCIAL RESPONSIBILITY.

The municipal liquor store shall demonstrate proof of financial responsibility as required by law. ( 87 Code, 6.317) 111.55 LIQUOR STORE FUND. The municipal liquor store fund, also known as the municipal liquor dispensary fund, is hereby continued. All revenues received from operation of the municipal store shall be deposited into it and all ordinary operating expenses shall be paid from it. Any amount borrowed from the general fund of the city in connection with the municipal store shall be reimbursed to the general fund out of the first available moneys coming into the municipal liquor store fund thereafter. Surpluses in the municipal liquor store fund may be transferred to the general fund or to any other appropriate fund of the city by resolution of the Council and expended for any municipal purpose. ( 87 Code, 6.318) 111.56 HANDLING OF FUNDS. Handling of municipal liquor store receipts and disbursements shall comply with the procedures prescribed by law for the receipt and disbursement of city funds. ( 87 Code, 6.319) Penalty, see 111.99 111.57 AUDIT. The Council shall provide as soon as possible following the close of each fiscal year for an audit of the accounts and inventory of the municipal liquor store for that fiscal year. ( 87 Code, 6.320) 111.58 HOURS. No sale shall be made upon any day or at any time of day that sale is prohibited by law under the license held by the licensee, except as provided herein. (Ord. 100, passed 11-28-00) Penalty, see 111.99 111.59 SAMPLES. The municipal liquor store may provide samples of alcoholic beverages as allowed by statute and currently has in stock and is offering for sale to the general public. The samples shall be dispensed without charge and consumed on the premises in a quantity less than 50 milliliters of wine per variety per customer and 25 milliliters of liqueur or cordial per variety per customer. Samples shall be provided only as provided by law and only in compliance with all requirements of law. ( 87 Code, 6.322) Penalty, see 111.99 111.60 RESTRICTIONS. The following restrictions shall apply to the municipal liquor store: (A) The Manager and all other employees shall comply with all requirements of law, of administrative regulation and of this code which apply; (B) No sale shall be made on store credit; (C) No sale of any alcoholic beverage shall be made to a person under the legal age for purchase, to an obviously intoxicated person, or to any other person to whom sale is prohibited; (D) No person who is disorderly or who is obviously intoxicated shall be permitted to remain in the dispensary; (E) No person who is under the legal age for purchase shall be permitted to remain in the premises, unless in the company of the person s parent or guardian; (F) No person shall be permitted to loiter in the premises; (G) No person shall be permitted to gamble in the premises, except to the extent that the gambling is permitted by law and has been specifically and duly authorized; and (H) The municipal liquor store and its employees shall also comply with any further lawful restrictions imposed by the Council regarding further limitations upon the hours of operation, samples which may be given, sales which may be made and any other matter, and shall comply with all requirements of law. ( 87 Code, 6.323) Penalty, see 111.99 12

111.61 MISCONDUCT OF EMPLOYEE. Violation of any requirement of law or of this code pertaining to the municipal liquor store and the sale of alcoholic beverages at the store by any municipal liquor store employee, or violation of any further lawful restrictions imposed by the Council, shall be cause for suspension or discharge of the employee. An employee may also be suspended, discharged or otherwise disciplined for any other misconduct by the employee. ( 87 Code, 6.324) Penalty, see 111.99 111.99 PENALTY. Any person who violates any provision of this chapter shall be subject to criminal penalties as provided in 10.99 of this code. Cross-reference: Suspension, revocation of license, and civil fines, see 111.38 13 Amended 5/9/2017 Gene Kelm, Mayor Attest, Valerie J. Martin, Clerk/Treasurer