Mound City Code 810.00

Section 810 – BEER LICENSING

810.01 Definitions and State Law Incorporated.

Subd. 1. Provisions of State Law Adopted. The provisions of Minnesota Statutes, Chapter 340A relating to the definition of terms, licensing, conditions of bonds of licenses, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of 3.2 percent malt liquor are adopted and made a part of this Section as if set out in full.

Subd. 2. Beer. As used in this Section, "beer" or "3.2 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. 3. Beer Store. As used in this Section, "beer store" means an establishment for the sale of beer, cigars, cigarettes, all forms of tobacco, beverages, and soft drinks at retail.

Subd. 4. Cafe or Restaurant. "Cafe" or "restaurant" as used in Section 810 shall mean any place where preparing and serving lunches or meals to the public to be consumed on the premises constitutes the major business thereof.

Subd. 5. Original Package. "Original package" as used in Section 810 shall mean the bottle or sealed container in which the beer is placed at the place of manufacture.

810.05 License Required.

Subd. 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:

(a) Regular "On-Sale",

(b) Temporary "On-Sale".

(c) "Off-Sale".

Subd. 2. Regular "On-Sale". Regular "On-Sale" licenses shall be granted only to bona fide clubs, beer stores, exclusive "On-Sale" liquor stores, cafes, restaurants and hotels where food is prepared and served for consumption on the premises. "On-Sale" licenses shall permit the sale of beer for consumption on the premises only.

Subd. 3. Temporary "On-Sale". Subject to the restrictions set forth in Section 340A.404 of Minnesota Statutes, Temporary "On-Sale" licenses shall be granted only to bona fide clubs and charitable, religious, and non-profit organizations for the sale of beer for consumption on the premises only, provided that such club or such organization conducts the greater portion of its activities within the City of Mound. Temporary "On-Sale" licenses shall be granted for one to ten consecutive days only. Other provisions of this Section to the contrary notwithstanding, Temporary "On-Sale" licenses may be issued so as to allow consumption and sale of beer in theaters, recreation halls, dance halls, ball parks, school property, public property, and other places of public gathering for the purpose of entertainment, amusement, or playing of games; provided that the terms of the waiver of any such restrictions are endorsed upon the face of the Temporary "On-Sale" License itself. Only four such Temporary "On-Sale" permits shall be granted to any club or charitable, religious, and non-profit organization within any one calendar year. (ORD. #11-1988 6-14-88)

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.

810.10 License Applications and Insurance.

Subd. 1. Application 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. In the case of any application for a Temporary "On-Sale" license to allow sale and consumption of beer on public land or public school lands, the applicant shall, prior to issuance of such license, file the written consent of the owner of such lands to such use of its lands.

Subd. 2. Liability Insurance.

(a) Prior to the issuance of any beer license, the applicant shall demonstrate proof of financial responsibility with regard to liability imposed by Minnesota Statutes Section 340A.801 to the City Clerk and to the Commissioner of Public Safety as a condition of the issuance or renewal of his license. Proof of financial responsibility shall be given by filing a certificate that there is in effect an insurance policy or pool providing the minimum coverages for dram shop liability as required by Minnesota Statutes, Section 340A.409, Subdivision 1. It is the intent of this section to require the minimum insurance coverages and amounts required by Minnesota law. (ORD. #35-1989 10-23-89)

(b) Any certificate of insurance filed pursuant to clause (a) above shall show that the insurance company cannot cancel said insurance until at least 30 days written notice of said cancellation has been served upon the City. If a new certificate of insurance is not filed with the City Clerk during the 30 day period after notice of cancellation, the license to sell at retail 3.2 malt liquor shall be suspended until a new certificate of insurance is filed with the City Clerk and the Minnesota Commissioner of Public Safety.

(c) Subject to the restrictions set forth in Section 340A.409, Subd. 4, of Minnesota Statutes, the City Clerk is hereby authorized to waive the foregoing requirements for 3.2 malt liquor licenses with sales of less than the amounts set forth in the Statute if said licensee files an affidavit from a Certified Public Accountant to show that sales are under the amounts set forth in the Statute. The licensee must also file a written commitment with the City Clerk that if the sales reach the amounts set forth in the Statute, the licensee will not continue to sell 3.2 malt liquor or wine until he or she has filed a certificate of insurance meeting the requirements set forth in this Subsection 810.10. (ORD. #56-1992 - 5-11-92)

810.15 License Fees.

Subd. 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 or 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 the 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 eight months of the license year has elapsed when the license is granted, the license shall be issued for the remainder of the year for one-half of the regular fee. In computing such fee, any unexpired fraction of a month shall be counted as one month. A temporary license shall be issued for a specific period in which a special event to which the sale is incident is being held, not to exceed ten days, and such period shall be stated on the license.

Subd. 3. Fees. The annual fee for a regular "On-Sale" license and for an "Off-Sale" license and the daily fee for a temporary "On-Sale" license shall be established in accordance with the provisions of Section 500 of the City Code. The Council shall not waive the license fee for any temporary "On-Sale" license. (ORD. 01-2001, 2/25/01)

Subd. 4. Refunds. No part of the fee paid for any license issued under this Section 810 shall be refunded except in the following instances upon application to the Council within 30 days from the happening of the event.

There shall be refunded a pro rata portion of the fee for the unexpired period of the license, computed on a monthly basis, when operation of the licensed business ceases not less than one month before expiration of the license because of:

                    (a) destruction or damage of the licensed premises by fire or other catastrophe;

(b) the licensee's illness;

                    (c) the licensee's death;

                    (d) a change in the legal status of the City making it unlawful for the licensed business                     to continue.

810.20 Granting of License.

Subd. 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 at 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.

810.25 Persons Ineligible for License. No license shall be granted to any person made ineligible for such a license by state law. (ORD. #56-1992 - 5-11-92)

810.30 Places Ineligible for License.

Subd. 1. Conviction or Revocation. No license shall be granted for sale of any premises where a licensee has been convicted of the violation of this Section, 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. Theaters, Recreation Halls, Dance Halls, Ball Parks. Except as provided in Subsection 810.05, Subd. 3, no license shall give permission to sell beer in any theater, recreation hall or center, dance hall, ball park, or other place of public gathering for the purpose of entertainment, amusement, or playing of games, except bowling alleys.

Subd. 3. Limitation on New Locations. No license shall be granted for any place outside of the central business district as defined in the City Zoning Code unless such location was either:

(a) Validly licensed for the Off-Sale or the On-Sale of beer on August 22, 1974, or

(b) REPEALED 2/25/97 (ORD. 85-1997, 3/8/97)

Subd. 4. Six Months Prior Eligibility. Is hereby repealed. (ORD. 56-1992 - 5-11-92)

Subd. 5. Unpaid Taxes or Assessments. 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.

810.35 Conditions of License.

Subd. 1. General Conditions. Every license shall be granted subject to the conditions in the following subdivisions and all other provisions of this Section 810 and of any other applicable ordinance of the City or state law.

Subd. 2. Sales to Under Age or Intoxicated Persons. No beer shall be sold or served to any intoxicated person or to any person under the minimum age allowed by Chapter 340A of Minnesota Statutes.

Subd. 3. Consumption by Under Age Persons. No person under the minimum age allowed by Chapter 340A of Minnesota Statutes shall be permitted to consume beer on the licensed premises unless accompanied by his or her parent or legal guardian.

Subd. 4. Employment of Under Age Persons. Except as authorized by Chapter 340A of Minnesota Statutes, no person under 21 years of age shall be employed on the premises of a beer store.

Subd. 5. Gambling. No gambling or any gambling device shall be permitted on any licensed premises.

Subd. 6. Interest of Manufacturers or Wholesalers. No manufacturer or wholesaler of beer shall have any ownership of or interest in an establishment licensed to sell at retail contrary to the provisions of Minnesota Statutes, Section 340A.308. No retail licensee and manufacturer or wholesaler 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 of beer shall confer any benefits contrary to law upon a retail licensee.

Subd. 7. Liquor Dealer's Stamp. No licensee shall sell beer while holding or exhibiting in the licensed premises a federal retail liquor dealer's special tax stamp unless he or she is licensed under the laws of Minnesota to sell intoxicating liquors.

Subd. 8. Sales of Intoxicating Liquor. No licensee who is not also licensed to sell intoxicating liquor and who does not hold a consumption or display permit shall sell or permit the consumption and display of intoxicating liquors on the licensed premises or serve any liquids for the purpose of mixing with intoxicating liquor. The presence of intoxicating liquors 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 Section.

                   Subd. 9.  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. 8.

Subd. 10. Licensee Responsibility. Every licensee shall be responsible for the conduct of his or her place of business and shall maintain conditions of sobriety an order.

810.40 Hours of Sale.

Subd. 1. No beer or 3.2 malt liquor shall be sold, served or consumed on the licensed premises between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between 1:00 a.m. and 12:00 noon on Sunday. (ORD 06-2003, 8/24/03)

Subd. 2. Every room, place, or premises where such beer or 3.2 malt liquor is permitted to be sold, including cafe, restaurant, or dining room operated in connection therewith, pursuant to an "on-sale" license, shall be closed or kept closed to the public during the times when a sale of beer or 3.2 malt liquor is prohibited under Subdivision 1. (ORD 06-2003, 8/24/03)

810.45 Clubs. No club shall sell beer except to bona fide members.

810.50 Restrictions on Purchases and Consumption.

Subd. 1. Age Misrepresentation. No minor shall misrepresent his or her age for the purpose of obtaining beer.

Subd. 2. Inducing Purchase. No person shall induce a person under age 21 to purchase or procure beer.

Subd. 3. Procurement. No person other than the parent or legal guardian shall procure beer for any person under the minimum age allowed by Chapter 340A of Minnesota Statutes.

Subd. 4. Possession. No person under the minimum age allowed by Chapter 340A of Minnesota Statutes shall have beer in his or her possession with the intent to consume it at a place other than the household of his or her parent or guardian.

Subd. 5. Consumption. No minor shall consume beer on any licensed premises.

Subd. 6. Consumption Prohibited - Where. Except as provided in Subsection 810.05, Subd. 3, no beer shall be consumed in any theater, recreation hall or center, dance hall, ball park, or other place of public gathering used for purpose of entertainment, amusement, or playing of games, except bowling alleys. Except as provided in Subsection 810.05, Subd. 3, no person shall consume beer on a public highway, public park, or other public place.

Subd. 7. Liquor Consumption and Display. No person shall consume or display any intoxicating liquor on the premises of a licensee who is not also licensed to sell intoxicating liquors or who does not hold a consumption or display permit.

Subd. 8. No 3.2 malt liquor (beer) shall be sold, served, or consumed on the licensed premises during the time when a sale is prohibited by law. (ORD. #65-1993 - 8/30/93)

810.55 Suspension and Revocation.  The council shall either suspend for up to 60 days or revoke any liquor license, or impose a civil penalty as established in accordance with the provisions of Section 500 of the City Code, or impose any combination of these sanctions, for each violation upon a finding that the licensee has failed to comply with any applicable statute, regulation, or ordinance related to liquor.  No suspension of revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to Minnesota Statutes, Section 14.57 to 14.70. (ORD. 15-2006, 8/6/06)