An Ordinance to Amend Chapter VI

AN ORDINANCE TO AMEND
CHAPTER VI, LIQUOR AND BEER, OF THE DANVERS CITY CODE TO ELIMINATE THE MUNICIPAL LIQUOR DISPENSARY AND TO PERMIT THE ISSUANCE OF ON SALE AND OFF SALE LIQUOR LICENSES WITHIN THE CITY OF DANVERS
The City of Danvers does ordain:
  Chapter VI. Liquor and Beer, of the Danvers City Code is hereby repealed in its entirety and is hereby replaced by the following:
CHAPTER VI.  ALCOHOLIC BEVERAGES
601.01. PROVISIONS OF STATE LAW ADOPTED.  The provisions of Minnesota Statutes, Chapter 340A, as amended from time to time, with reference to the definition of terms, conditions of operation, licensing, consumption, sales, hours of sale, and all other matters pertaining to the retail sale, distribution and consumption of intoxicating liquor  are adopted and made part of this chapter as if set out in full.  The City reserves its right, as set forth in Minnesota Statutes, Section 340A.509 to impose additional restrictions on the sale and possession of alcoholic beverages within its limits beyond those contained in Minnesota Statutes Chapter 340A.  Subject to the reservation of that right, it is the intention of the City Council that all future amendments of Minnesota Statutes, Chapter 340A are hereby adopted by reference as if they had been in existence at the time this Ordinance is adopted.
601.02. LICENSES REQUIRED.  No person, except as otherwise proved in Minnesota Statutes Chapter 340A, shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating liquor and/or 3.2 percent malt liquor as part of a commercial transaction without first having received a license to do so as provided in this chapter nor shall any private club or public place, directly or indirectly, or upon any pretense or by any device, allow the consumption or display of intoxicating liquor and/or 3.2 percent malt liquor or serve any liquid for the purpose of mixing the intoxicating liquor and/or 3.2 percent malt liquor without first obtaining a license from the City as provided in this chapter. 
601.03. LIMITATION ON THE NUMBER OF LICENSES.  There shall be no more than one (1) on-sale license to sell intoxicating liquor or 3.2 percent malt liquor and no more than one (1) off-sale license to sell intoxicating liquor or 3.2 percent malt liquor issued by the city and active at any one time.  This limitation shall not apply to temporary on-sale intoxicating liquor licenses as defined in section 601.04.
601.04.  TYPES OF LICENSES.  The following types of licenses are permitted under this chapter:
(1) On-Sale Intoxicating Liquor License.  On-sale intoxicating liquor licenses shall be granted only to exclusive liquor stores and shall permit on-sale of intoxicating liquor and 3.2 percent malt liquor.
(2) Off-Sale Intoxicating Liquor License.  Off-sale intoxicating liquor licenses shall be granted only to exclusive liquor stores and shall permit off-sale of intoxicating liquor and 3.2 percent malt liquor.
(3) Temporary On-Sale Intoxicating Liquor License.  With the approval of the Commissioner of Public Safety, a temporary on-sale intoxicating liquor licenses may be issued, in accordance with the provisions of Minnesota Statutes Section 340A.404, Subd (10), to a club or charitable, religious, or non-profit organization in existence for at least three (3) years at the time of application.    
601.05. APPLICATION FOR LICENSE.  Every application for a license issued under this chapter shall be on a form provided by the city and prescribed by the state liquor control commissioner and shall be filed with the city clerk. Each application shall contain the following information:
(1) The name of the applicant;
(2) The age of the applicant;
(3) Representations as to the applicant’s character, with such
     references as may be required;
(4) The applicant’s citizenship;
(5) The business in connection with which the proposed license
      will operate and its location;
(6) Whether the applicant if owner and operator of the business;
(7) How long the applicant has been in that business at that place;   
     and
(8) Such other information as the city council may require from time to time
No person shall make a false statement in an application.
601.06.  FINANCIAL RESPONSIBILITY.  Prior to the issuance of any license under this chapter, the applicant shall demonstrate proof of financial responsibility as defined in Minnesota Statutes Section 340A.409, as it may be amended from time to time, with regard to liability under Minnesota Statutes Section 340A.801 as it may be amended from time to time.  This proof must be filed with city and the Commissioner of Public Safety. 
Any liability insurance policy filed as proof of financial responsibility under this section shall conform to Minnesota Statutes Section 340A.409 as it may be amended from time to time.  Operation of a business which is required to be licensed by this chapter without having on file with the city at all times effective proof of financial responsibility is a cause for revocation of the license.
601.07.  APPLICATIONS FOR RENEWAL.  At least 45 days before a license issued under this chapter is to be renewed, an application for renewal shall be filed with the city clerk.  The application shall include a statement that all information contained in the prior application(s) remains true and correct except as otherwise indicated.  The decision whether or not to renew a license rests within the sound discretion of the city council.
601.08.  TRANSFER OF LICENSE.  No license issued under this chapter may be transferred without the approval of the city council.  Any transfer of ownership of a business licensee is deemed to be a transfer of the license.  An application for transfer of a license shall be treated the same as an application for a new license and all of the provisions of this chapter applying to new applications for a license shall apply to an application for transfer of a license.
601.09.  INVESTIGATIONS.  At the time of an initial application for a license or an application for transfer of a license the applicant shall, in writing, authorize the city to investigate all facts set out in the application and to conduct a background check, criminal record check and financial investigation of the applicant and facility manager. The applicant shall further authorize law enforcement personnel to release information received from such investigation to the city council. 
601.10.  HEARING REQUIRED.  The city council shall, with ten (10) days published notice and ten (10) days posted notice at city hall and at the premises to be licensed, hold a public hearing for the issuance of a new license for a premises or for a different licensee at the same premises.  Mailed notice shall also be sent to all owners of property located within five hundred (500) feet of the boundaries of the property on which the business that is the subject of the application is or will be located.  At the hearing opportunity shall be given to any person to be heard for or against the granting of the license.    
601.11.  COUNCIL DISCRETION TO GRANT OR DENY A LICENSE.  After completion of the required investigation and hearing the city 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.
601.12.  LICENSE FEE.   The fee for a license issued under this chapter shall be determined by the city council and set by resolution subject to the provisions of Minnesota Statutes section 340A.408.  Each application for a license shall be accompa- nied by a receipt from the city treasurer for payment in full of the license fee.  If the application for a license is rejected the treasurer shall refund the amount paid, except where the rejection is for a willful misstatement in the license application.
601.13.   LICENSE TERM.  Each license issued under this ordinance, other than a temporary on-sale license, shall be issued for a period of one (1) calendar year and will expire on January 31 of each year.  A license may be issued for remainder of any calendar year for a pro rata fee with any fractional portion of a month being counted as one (1) month.
601.14.  LICENSE CONDITIONS; TRANSFERABILITY.   
(1) Applicant.  A license under this ordinance shall be issued to the applicant only and no license shall be transferred except as provided in this ordinance.  No more than one license shall be issued, directly or indirectly, to any one person.
(2) Premises.  Each license shall be issued only for the exact rooms and square footage described in the application and the license is only valid for that premises.  All transactions relating to a sale under the license must take place within the described premises.
(3) Building Under Construction.  When a license is granted for premises where the building is under construction or otherwise not ready for occupancy, the city clerk shall not issue the license until notified by the building official that the building is ready for occupancy.
(4) Death of Licensee.  In the event of the death of a person holding a license, the personal representative of the decedent’s estate shall be allowed to continue to operate the business within the terms of the license for a period not to exceed ninety (90) days after the death of the licensee.
601.15.  LICENSE INELIGIBILITY.  No license shall be granted to or held by any person under the following circumstances:
(1) Any person made ineligible by State law;
(2) Any person under the age of twenty-one (21) years;
(3) Any person who is not a citizen of the United States or a resident alien;
(4) Any person upon whom is impractical to conduct a background and/or financial investigation due to the unavailability of information
(5) Any person who has had a liquor license revoked within five (5) years of the license application or who, at the time of the application, owns any interest, whether as a holder of more than five percent (5%) of the capital stock or other ownership interest in a business licensee
(6) Any person who is not of good moral character and repute;
(7) Any person who has a direct or indirect interest in a manufacturer, brewer or wholesaler of intoxicating liquor; or
(8) Any person who, within five (5) years of the license application, has been convicted of a felony or a willful violation of federal or state law or local ordinance governing the manufacture, sale, distribution or possession for sale or distribution of an alcoholic beverage and who cannot show competent evidence under Minnesota Statutes section 364.03 of sufficient rehabilitation and present fitness to perform the duties of a licensee.
(9) Any person who is the spouse of a person ineligible for a license under this ordinance or who, in the judgment of the city council, is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license.
(10) Any person who is not a resident of the State of Minnesota at the time of the application.  The time for establishing residency with the State of Minnesota may, for good cause, be extended by the city council.
(11) For any premises on which any taxes, assessments or other financial claims of the State, County or City are delinquent and unpaid. 
(12) For any premises located within five hundred (500) feet of any school or church measured from the property line of the premises to the property line of the school or church.
601.16.  LICENSE SUSPENSION OR REVOCATION.  The city council may suspend or revoke any license issued under this ordinance for any of the following reasons:
(1)    Violation of any Federal, State or local law regulating the sale of intoxicating liquor, 3.2 percent malt liquor or controlled substance.
(2)    Violation of any special conditions under which the license was granted, including, but not limited to, the timely payment of real estate taxes and all other charges.
(3)    False or misleading statements made on a license application or renewal.
(4)    Creation of a nuisance on the premises or in the surrounding area.
(5)    That the licensee committed, suffered or permitted upon the licensed premise or on property owned or controlled by the licensee adjacent to the licensed premises illegal acts which are unrelated to the sale of intoxicating liquor.
(6)    That the licensee had knowledge of illegal acts upon or attributable to the licensed premise but failed to report the same to law enforcement.
(7)    Expiration or cancellation of any required insurance or failure to notify the city within a reasonable time of changes in the terms of the insurance or the carrier.
(8)    A business for which a license has been issued under ordinance ceases operation for a period of six (6) months unless, after hearing, the city council determines that satisfactory progress toward opening or reopening the business is being made.
Revocation or suspension of a license by the city council shall be preceded by a public hearing.  At least ten (10) days written notice of the hearing shall be sent to the licensee at his or her last known address.
601.17.  RETAIL SALES REGULATIONS.
(1) Every licensee shall be responsible for the conduct and activity on the licensed premises and for conduct and activity attributable to the business that occurs on property owned or controlled by the licensee.  Every licensee shall cooperate with the city and law enforcement in controlling conduct and activity attributable to the business.
(2) Any act of an employee on the licensed premises in violation of this ordinance is deemed to be the act of the licensee as well and the licensee shall be liable for all penalties provided by this ordinance and any other laws equally with the employee.
(3) Hours and days of sale shall be as allowed by state law.  A licensee shall not allow non-employees on the business premises from fifteen (15) minutes after the time that sales of intoxicating liquor is prohibited until the time that sales are again permitted.
(4) All liquor licensees shall, at all times, have the license posted in a conspicuous place in the licensed premises that is visible to the public.
(5) No enlargement or substantial alteration of a licensed premises shall be allowed unless an application for an amendment of the license is approved by the city council.
(6) No licensee, agent or employee shall sell any intoxicating liquor to a person under the legal drinking age or knowingly permit such person to be delivered any intoxicating liquor.
(7) No person under the age of eighteen (18) years shall be allowed to enter the licensed premises without a parent or guardian.  No person who has attained the age of eighteen (18) years but is under the legal drinking age shall enter a licensed premises except to perform work for the establishment, including the serving of alcoholic beverages, unless otherwise prohibited by statute, to consume meals or to attend social functions that are held in a portion of the establishment where liquor is not sold.
(8) No person under the age of eighteen (18) years may serve or sell intoxicating liquor and/or 3.2 percent malt liquor in a retail liquor establishment or work in any portion of the establishment where liquor is sold. 
(9) No licensee or licensee’s agent or employee shall serve or dispense upon the licensed premises any intoxicating liquor or 3.2 percent malt liquor to a person under the legal drinking age, nor shall such licensee or licensee’s agent or employee permit any such person to be furnished or allowed to consume any such liquors on the licensed premises, nor shall such licensee or licensee’s agent or employee permit any such person to be delivered any such liquors.
(10) Every licensee shall allow any peace officer, health officer, city employee or any other person designated by the city council to conduct compliance checks and to otherwise enter, inspect and search the licensed premises, without a warrant, during business hours.
601.18.  VIOLATION AND PENALTIES.  Any person, firm or corporation who violates any provision of this ordinance for which other penalty is not specifically provided by Minnesota Statutes shall, upon conviction, be guilty of a misdemeanor.
601.19.  EFFECTIVE DATE.  The repeal of the provisions of Chapter VI, Part 1, Municipal Liquor Dispensary, shall be effective on October 1, 2017.The rest of the provisions of this ordinance shall be effective upon adoption and publication of this ordinance as prescribed by law.  
/s/ Eric Ziegler
Mayor
ATTEST:     /s/ Shari Swanberg   
City Clerk
Approved as to form:
Donald A Wilcox, Danvers City Attorney
First Reading: July12, 2017
Second Reading: July 19, 2017
Publication: August 30, 2017                                                    8-30-1c