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Ordinance 299CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. 299 AN ORDINANCE AMENDING CHAPTER 10 OF THE CHANHASSEN CITY CODE CONCERNING THE SALE, CONSUMPTION, AND DISPLAY OF ALCOHOLIC BEVERAGES THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: Section 1. Chapter 10, Article H, of the Chanhassen City Code is amended in its entirety to read as follows: ARTICLE II. ALCOHOLIC BEVERAGES DIVISION 1. STATE LAW ADOPTED/DEFINITIONS Sec. 10-16. Provisions of State Law Adopted. Except to the extent the provisions of this is Article are more restrictive, the provisions of Minnesota Statutes, Chapter 340A, as amended, regarding the terms, licensing, consumption, 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 adopted and made a part of this Article as if set out in full. Sec. 10-17. Definitions. For the purposes of this Article, and in addition to those definitions contained in Minnesota Statutes, Chapter 340A, as amended, the terms used in this Subsection are deemed as follows: (a) Dim: The term "Display" means the keeping, storing, or permitting to be kept or stored of an alcoholic beverage which has been poured, dispensed or has had its package seal broken on, in, or at any table, booth, bar or other area of a licensed premises accessible to the general public, except when the alcoholic beverage is stored in a normal storage area during non - sale hours. (b) In .r s : The term "interest" as used in this Article includes any pecuniary interest in the ownership, operation, management or profits of a liquor establishment, but does not include: bona fide loans; bona fide fixed sum rental agreements; bona fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business or selling or leasing merchandise, fixtures or supplies to such establishment; or any interest of 5 percent or less in any corporation holding a City liquor license. A person who receives monies, from time to time, directly or indirectly from a licensee in the absence of a bona • fide consideration therefor and excluding bona fide gifts or donations, shall be deemed to have a pecuniary interest in such retail license. In determining "bona fide," the reasonable value of the 84472.05/Ciean (OLD WP #66526.09) 1 RNKA3/27/00 • goods or things received as consideration for the payment of the licensee and all other facts reasonably tending to prove or disprove the existence of any purposeful scheme or arrangement to evade any prohibitions under this Article shall be considered. (c) Licensed Premises: The term "Licensed Premises" is the premises described in the approved license application. In the case of a restaurant, club, or exclusive liquor store licensed for on -sales of alcoholic beverages and located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated. (d) Operating Manager: The term "Operating Manager" as used in this Article means a person designated by the license holder who works full-time at the licensed premises and is in charge of day-to-day liquor sales. (e) Properly Designated Officer: The term "Properly Designated Officer" means and includes (i) the Chanhassen City Fire Inspector; (ii) the Chanhassen City Building Official; and (iii) the Health Inspectors employed by Carver or Hennepin County or the State of Minnesota acting in the course of the scope of their employment. (f) Underage Person: The term "Underage Person" means a person who is under the legal drinking age as provided by Minnesota Statutes Chapter 340A. DIVISION 2. RETAIL LICENSES Sec. 10-18. Licenses Require . No person, except as otherwise provided in Minnesota Statutes Chapter 340A shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating liquor, 3.2 percent malt liquor, or wine as part of a commercial transaction without first having received a license to do so as provided in this Article; 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 or serve any liquid for the purpose of mixing with intoxicating liquor without first obtaining a license from the City as provided in this Article. Sec. 10-19. Tunes of Licenses. The following types of licenses are issued under this Article: (a) On -Sale Intoxicating Liquor License. On -sale intoxicating liquor licenses shall be granted only to hotels, bowling centers, clubs, restaurants, and exclusive liquor stores. A license shall be issued to clubs and congressionally chartered veterans' organizations if they have been in existence for at least three years and liquor sales will only be to members and bona fide guests. On -sale licenses will only be issued to exclusive liquor stores that were licensed on January 1, 2000. (b) Off -Sale Intoxicating Liquor License. Off -sale intoxicating liquor licenses may be issued to an exclusive liquor store and shall permit off -sale of intoxicating liquor and 3.2 percent malt liquor. No more than four (4) off -sale intoxicating liquor licenses may be issued by the • City. 84472.05/Clean (OLD WP #66526.09) 2 RNK:r03/27/00 • (c) Wine Licenses. Wine licenses may be issued, with the approval of the Commissioner, only to restaurants having facilities for seating at least 25 people at one time for the sale of wine not exceeding 14 percent alcohol by volume and for consumption on the licensed premises only in conjunction with the sale of food. The holder of a wine license who is also licensed to sell 3.2 percent malt liquor on -sale and whose gross receipts are at least fifty percent (50%) attributable to the sale of food, may also sell intoxicating malt liquors at on -sale without an additional license. (d) On -Sale 3.2 Percent Malt Liquor License. On -sale 3.2 percent malt liquor license may be issued to bona fide clubs, bowling centers, restaurants, and hotels where food is prepared and served for consumption on the premises only. (e) Off -Sale 3.2 Percent Malt Liquor License. Off -sale 3.2 percent malt liquor license may be issued to general food stores and drug stores and permit the sale of 3.2 percent malt liquor at retail in the original package for consumption off the premises only. (f) On -Sale Sunday Liquor License. On -sale Sunday liquor licenses may be issued only to a hotel or restaurant, with facilities for serving not less than fifty (50) guests at one time, to which an on -sale intoxicating license has been issued. Such license may permit the sale of liquor to be consumed on the premises between the hours of 10:00 a.m. and 1:00 a.m. on Monday in conjunction with the serving of food provided that the licensee is in conformance with the Minnesota Clean Air Act and provided a public hearing is held prior to the issuance of the • license. No Sunday license is needed for on -sale wine licenses. (g) Temporary On -Sale 3.2 Percent Malt Liquor Licenses. Temporary on -sale 3.2 percent malt liquor licenses may be issued to a club or charitable, religious, or nonprofit organization in existence for at least 3 years. The license may authorize the on -sale of 3.2 malt liquor for not more than 3 consecutive days, and may authorize on -sales on premises other than premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for 3.2 malt liquor with the holder of a full -year on -sale liquor license issued by the City. The licenses are subject to the terms, including the license fee, normally imposed by the City. The licenses issued in this Section are subject to all laws and ordinances governing the sale of liquor, including furnishing a form of proof of financial responsibility. (h) Temporary On -Sale Intoxicating Liquor Licenses. The City Council may issue to a club or charitable religious or nonprofit organization in existence for at least three (3) years or to a political committee registered under Minn. Stat. § 10A.14 a temporary license for the on -sale of intoxicating liquor in connection with a social event within the City sponsored by the licensee. The license may authorize the on -sale of intoxicating liquor for not more than four (4) consecutive days, and may authorize on -sales on premises other than premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for intoxicating liquor catering services with the holder of a full -year on -sale liquor license issued by the City. The licenses are subject to the terms, including license fee, imposed by the City. The licenses issued under this Section are subject to all laws and ordinances governing the sale of intoxicating . liquor except Minn. Stat. § 340A.409 and § 340A.504, Subd. 3, paragraph (d), and the laws and ordinances which by their nature are not applicable. Temporary licenses must first be approved by the Commissioner of Public Safety before they become valid. No more than three (3) four- 84472.05/Clean (OLD WP #66526.09) 3 RNK:r03/27/00 day, four (4) three-day, or six (6) two-day temporary licenses, in any combination not to exceed • twelve (12) days per year, may be issued for the sale of alcoholic beverages to any one organization or registered political committee, or for any one location, within a 12-month period. Not more than one temporary license may be issued to any one organization or registered political committee, or for any one location, within any 30-day period. (i) Club L.icenses. Club licenses may be issued to clubs as provided in Minn. Stat. § 340A.404, subd. 1. 0) Consumption and Display Permits. Consumption and display permits may be issued to a bottle club which complies with the requirements of Minn. Stat. § 340A.414 and which has obtained a permit from the Commissioner of Public Safety. Consumption and display permits shall not be issued in the City, except to establishments that had been issued such a license on or prior to the effective date of this ordinance. Sec. 10-20. License Period. Each renewal license shall be issued for a maximum period of one year. Temporary licenses shall expire according to their terms. All intoxicating liquor licenses, 3.2 percent malt liquor licenses, and consumption and display licenses expire on April 30 of each year. Sec. 10-21. Retail License Fees. (a) Annual Fees. The annual fees for all licenses and temporary licenses shall be as determined by City Council resolution in amounts no greater than those amounts provided under Minn. Stat. § 340A.408. (b) Prorated Fees. If a license application is made during the license year, the license shall be issued for the remainder of the year and, except in the case of wine licenses and off -sale intoxicating liquor licenses, the license fee shall be pro rated, with any unexpired fraction of a month being counted as one month. (c) Investigation Fees. Investigation fees shall be determined by City Council resolution. Investigation fees are non-refundable. No investigation fee shall be charged for a renewal application. At any time that an additional investigation is required because of a change in the control of a corporate license, change in manager, change in location, or enlargement of the premises, the licensee shall pay an additional investigation fee. Where a new application is filed as a result of incorporation or a change of name by an existing licensee and the ownership control and interest in the license are unchanged, no additional investigation fee will be required. Sec. 10-22. License Fee Refunds. License fees shall be refunded if an application for a license is denied by the City Council, except where rejection is for a willful misstatement in the license application. No part of the fee paid for any issued license shall be refunded except as authorized under Minnesota Statutes Section 340A.408, subd. 5, upon application to the City Clerk within 20 days of the happening of any event provided under Minnesota Statutes Section • 340A.408, subdivision 5. 84472.05/Clean (OLD WP #66526.09) 4 RNK:r03/27/00 • Sec. 10-23. Liability Insurance. Except as provided in Minn. Stat. § 340A.409, Subd. 4, all applicants for any liquor license or consumption and display permit must, as a condition to the issuance of the license, demonstrate proof of financial responsibility with regard to liability imposed by Minnesota Statutes Section 340A.801 to the City, by providing proof of liquor liability/dram shop, general liability, and workers compensation insurance coverage. (a) Liability. Proof of financial responsibility shall be given by filing one of the following: (1) A certificate that there is in effect for the license period an insurance policy issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or pool providing at least $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of mean of support of two or more persons in any one occurrence; (2) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities which may legally be purchased by savings banks or trust funds having a market value of $100,000. (b) Dramsho . An annual aggregate insurance policy for dram shop insurance of not less than $300,000 per policy year to cover each person, each occurrence, property damage each occurrence, loss of means of support per person, loss of means of support each occurrence, and policy aggregate. (c) Workers' Compensation Insurance. The policy limits for workers' compensation insurance shall be as provided for by state law. (d) Additional Requirements. For purposes of Paragraphs (a) and (b) under this Section, the City shall be named as additional insured on the liability insurance policy. The liability insurance 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 ten days' notice in writing to the City of intent to cancel the policy. The insurance limits outlined in this section shall be effective for license renewals and immediately on any new applications. Sec. 10-24. License Application. A license applicant shall complete the applicable application form provided by the City Clerk. The City Clerk may waive completion of any part of the form that is inappropriate or unnecessary. Sec. 10-25. Execution of Application. If the application is by an individual, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof, if by a partnership, by • one of the partners; if by an incorporated association, by the operating officer or managing officer thereof. If the applicant is a partnership, the application, license, and insurance policy 84472.05/Clean (OLD WP #66526.09) 5 RNKA3/27/00 • shall be made and issued in the name of all partners. It shall be unlawful to make any false statement in an application. • Sec. 10-26. Renewal Application. (a) Applications for the renewal of an existing license shall be made at least forty-five (45) days prior to the date of the expiration of the license, and shall state that everything in the prior applications remains true and correct except as otherwise indicated. (b) Renewal applications for an on -sale license for a restaurant shall include a Certified Public Accountant statement showing total sales, food sales, liquor sales, and percentage of total sales for the previous year. Sec. 10-27. Investigations. (a) At the time of making an initial application, renewal application, or request for approval for a new manager, the applicant shall, in writing, authorize the City to investigate all facts set out in the application and do a personal background and criminal record check on the applicant and Operating Manager. The applicant shall further authorize the City to release information received from such investigation to the City Council. (b) Should the City Council deny the applicant's request for a license due, partially or solely, to the applicant's prior conviction of a crime, the City Council shall notify the applicant of the grounds and reasons for the denial; the applicable complaint and grievance procedure as set forth in Minnesota Statutes, section 364.06; the earliest date the applicant may reapply for a license; and that all competent evidence of rehabilitation will be considered upon reapplication. Sec. 10-28. Hearing Required for New Licenses. A public hearing for the issuance of a license for a new premises, or for a different licensee at the same premises, or for a different licensee at the same premises shall be preceded by ten (10) days' published notice. In addition, the public hearing for the issuance of a license for a new premises shall also be preceded by a ten (10) days' mailed notice 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 located. A public hearing is not required for temporary license applications. Sec. 10-29. Information Considered for License Approval. The City Council shall consider the following in addition to conformity with state statutes and city ordinances in determining whether a new or renewal license shall be granted: (a) The investigative and staff report submitted by the City Clerk; (b) Information received through the public hearing process; 84472.05/Clean (OLD WP #66526.09) 6 RNK:r03/27/00 • (c) Whether the applicant has or will take affirmative action to minimize public safety problems commonly associated with on -sale liquor establishments, including but not limited to DWI drivers, illegal sale to minors, disturbing the peace, etc.; (d) Any other relevant information. Sec. 10-30. Granting or Transfer of License. (a) Applicant. A license shall be issued to the applicant only, and no license shall be transferred except as provided in this Article. (b) Premises. Each license shall be issued only for the exact rooms and square footage described in the application. A license is valid only in the compact and contiguous building or structure situated on the premises described in the license, and all transactions relating to a sale under such license must take place within such building or structure. (c) Building Under Construction. When a license is granted for a 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. (d) Death of Licensee. in the event of the death of a person holding a license, the personal representative of that person shall be allowed to continue to operate the business within the terms of the license for a period not to exceed 90 days after the death of the licensee. Sec. 10-31. Corporations, Partnerships, or Associations. (a) All corporations, partnerships, and associations must designate an Operating Manager. The Operating Manager must be a person working full-time at the licensed premises who is in charge of day-to-day liquor sales. (b) Licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation, as defined in this Article, unless such change is approved by the Council. The requirement concerning change in officers does not apply to corporations whose stock is traded on the New York or American Stock Exchanges. (c) Licenses issued to associations or partnerships shall be valid only so long as there is no change in the partnership or association, unless such change is approved by the Council. (d) Corporations, partnerships, or associations holding licenses shall submit written notice to the City Clerk of any changes described herein on or before 30 days prior to the effective date of any such change. Notwithstanding the definition of "interest" as defined in this Article, in the case of a corporation, the licensee shall notify the City Clerk when a person not listed in the application acquires an interest that, when combined with that of a spouse, parent, brother, sister, or child, exceeds 5 percent and shall give all information about said person as is • required of a person pursuant to the provisions of this Article. 84472.05/Clean (OLD WP #66526.09) 7 RNKA3/27/00 (e) Corporations holding licenses shall submit written notice to the City Clerk of any change in Operating Managers prior to the effective date of such change. The written notice shall designate the new Operating Manager. The new Operating Manager shall be subject to the investigation required by this Article. (f) The designation of a new Operating Manager shall not cause the corporation's license to become invalid before a decision is rendered by the City Manager or City Manager's designee, provided proper notice and application are made by the applicant. A proposed new Operating Manager shall be referred to as the interim Operating Manager. In the event an interim Operating Manager is rejected by the City Manager or City Manager's designee, the corporation shall designate another interim Operating Manager and make the required application within 15 days of the decision by the City Manager or City Manager's designee. In any event, a corporation shall be limited to 2 successive interim Operating Managers. Sec. 10-32. Ineligible for License. (a) State Law. No license shall be granted to or held by any person (1) made ineligible by State law; (2) who is a person under 21 years of age; (3) who is not a citizen of the United States or a resident alien; (4) upon whom it is impractical to conduct a background and financial investigation due to the unavailability of information; (5) who has had a 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 five percent of the capital stock of a corporation licensee, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; (6) who is not of good moral character and repute; (7) who has a direct or indirect interest in a manufacturer, brewer, or wholesaler; or (8) who, within five years of the license application, has been convicted of a felony or a willful violation of a federal or state law or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of an alcohol 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. • (b) Manager Required. No licenses shall be granted to a corporation that does not have an Operating Manager. 84472.05/Clean (OLD WP #66526.09) 8 RNK:r03/27/00 • (c) Real Party in Interest. No license shall be granted to a person who, in the judgment of the Council, is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. (d) Residency Requirements. A license will not be renewed if, in the case of an individual, the licensee is not a resident of the State at the time of the date for renewal; if, in the case of a partnership, the managing partner is not a resident of the State at the time of the renewal; or in the case of a corporation, if the Operating Manager is not a resident of the State at the time of the date of renewal. The time for establishing residency within the State may, for good cause, be extended by the Council. (e) Delinquent Taxes or Charges. No license shall be granted for operation on any premises on which state, city or county taxes, assessments, or other financial claims of the state, city, or county are delinquent and unpaid. Notwithstanding the foregoing, if the delinquent taxes, assessments, or financial claims are against a landowner, and licensee is a tenant of landowner and has no financial interest in landowner, then the City Council may, in its discretion, but shall not be required to, grant a license to an applicant so long as the applicant is not delinquent on any taxes, assessments, or financial claims as set forth herein. (f) Restaurants. No on -sale intoxicating liquor license shall be issued unless at least 50% of the gross food and beverage receipts of the establishment will be attributable to the sale of food. This requirement shall be regulated as follows: (1) Each on -sale intoxicating licensee shall have the continuing obligation to have at least 50% of gross food and beverage receipts from the establishment during the preceding business year attributable to the sale of food. (2) In the case of a new restaurant, the applicant must make a bona fide estimation that at least 50% of the gross receipts from the sale of food and beverages of the establishment during its first year of business will be attributable to the sale of food. (3) For the purpose of this section, "establishment" shall include the food and beverage portion of a multi -service establishment. Financial records for the food and beverage portion must be maintained separately from the records of the remainder of the establishment. (4) For the purpose of this section, "sale of food" shall include gross receipts attributable to the sale of food items, soft -drinks and nonalcoholic beverages. It shall not include any portion of gross receipts attributable to the nonalcoholic components of plain or mixed alcoholic beverages, such as ice, soft-drink mixes or other mixes. (5) The City may require the production of such documents or information, including but not limited to books, records, audited financial statements or pro forma isfinancial statements as it deems necessary or convenient to enforce these provisions. The City may also obtain its own audit or review of such documents 84472.05/Clean (OLD WP #66526.09) 9 RNKA3/27/00 • or information, and all licensees shall cooperate with such a review, including prompt production of requested records. (6) In addition to other remedies that it may have available, the City may place the license of any on -sale intoxicating liquor licensee on probationary status for up to one year, when the sale of food is reported, or found to be, less than fifty percent (50%) of gross food and beverage receipts for any business year. During the probationary period, the licensee shall prepare any plans and reports, participate in any required meetings, and take other action that the City may require to increase the sale of food. (g) Instructional Program. No license or renewal license shall be issued to sell alcoholic beverages under this Article unless an applicant or license holder has an approved program for instructing all employees at the business premises for which the license was issued, in the legal requirements pertaining to the sale of alcoholic beverages, including, but not limited to, reviewing the law on the sale of alcoholic beverages, providing information on the health risks of using alcoholic beverages, and requiring employees to request identification from every customer who appears to be under 27 years of age. No license shall be issued or renewed unless the applicant or license holder signs a City form attesting that each employee of the applicant or license holder has received training and instruction on the sale of alcoholic beverages and the date such training occurred. Training must be completed before an employee commences work in a licensed establishment and annually thereafter. The training shall include information that the sale of alcoholic beverages to minors is illegal, explains what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal liability. Sec. 10-33. Conditions of Approval. At the time a license is issued pursuant to this Article or a consumption and display permit is approved, the City Council may attach special conditions to the approval based upon the nature of the business, the location of the business, and verified complaints, if any, to protect the health, safety, welfare, and quietude of the community and ensure harmony with the location where the business is located. Violation of any of the conditions shall be grounds for revocation of the license. Sec. 10-34. Nudity on Licensed Premises. (a) It is unlawful for any person on premises licensed under this article to: (1) Employ or use any person in the sale or service of alcoholic beverages in or upon the licensed premises while such person is unclothed or in such attire, costume or clothing so as to expose or to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft or the buttocks, vulva or genitals. (2) Employ or use services of any host or hostess while such host or hostess is • unclothed or in such attire, costume or clothing as described in paragraph (1) above. 84472.05/Clean (OLD WP #66526.09) 10 RNK:r03/27/00 • (3) Employ or use any dancers, musicians, or other performers or entertainers, who are unclothed or in such attire, costume or clothing as described in paragraph (1) above. (4) Directly or indirectly sponsor any contests which may foreseeably cause, result in, or lead to the occurrence of the acts or incidents described in paragraph (6) below. (5) Encourage or permit any person on the licensed premises to touch, caress or fondle breasts, buttocks, anus or genitals of any employee of the licensee or any performers or entertainers who are employed or whose services are used by the licensee. (6) Permit any person to perform acts of or acts which simulate: a. With or upon another person sexual intercourse, sodomy, oral copulation, flagellation or any sexual act which is prohibited by law. b. Masturbation or bestiality. C. With or upon another person the touching, caressing or fondling of the buttocks, anus, genitals, or female breasts. • d. The displaying of pubic hair, anus, vulva, genitals or female breasts below the top of the areola. (7) Permit any person to use artificial devices or inanimate objects depicting any of the prohibited activities described. (8) Permit any person to remain in or upon the licensed premises, or any area owned or controlled by the licensee upon the licensee's premises, who permits the public to view any portion of his genitals or anus. (9) Permit the showing of film, still pictures, electronic reproduction or other visual reproduction depicting; a. Acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation or any sexual act which is prohibited by law. b. Any person being touched, caressed or fondled on the breast, buttock, anus, or genitals. C. Scenes wherein a person displays the vulva, the anus or the genitals. . d. Scenes wherein artificial devices or inanimate objects are employed to depict, or drawings are employed to portray, any of the prohibited activities described in this section. 84472.05/Clean (OLD WP 466526.09) 11 RNK:r03/27/00 • (b) The provisions of this Section shall not apply to any theatrical production performed in a theater by a professional theatrical or musical company that has serious artistic merit. (c) Both the licensee and the person(s) actually engaging in any of the acts prohibited by subsection (a) shall be criminally liable. Any violation of this section shall also constitute grounds for revocation or suspension of the licensee's license. Sec. 10-35. Federal Stamps. No licensee shall possess a federal wholesale liquor dealer's special tax stamp or a federal gambling stamp. Sec. 10-36. Compliance Checks. (a) Compliance Checks. From time to time, the City shall conduct compliance checks. Such compliance checks may involve, but are not limited to, engaging underage persons to enter the licensed premises to attempt to purchase alcohol and alcohol related products. (b) Underage Persons. If underage persons are used for compliance checks they shall not be guilty of unlawful possession of alcohol when such items are obtained as a part of a compliance check. No underage person used in compliance checks shall attempt to use a false identification misrepresenting the person's age, and all underage persons lawfully engaged in a • compliance check shall answer all questions about the person's age asked by the licensee or his or her employee and shall produce any identification for which he or she is asked. Sec. 10-37. Revocation or Suspension of License. The Council may suspend or revoke any license for the sale of intoxicating or 3.2 percent malt liquor for any of the following reasons: (a) False or misleading statements made on a license application or renewal, or failure to abide by the commitments, promises or representations made to the City Council. (b) 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. (c) Violation of any Federal, State, or local law regulating the sale of intoxicating liquor, 3.2 percent malt liquor, or controlled substance. (d) Creation of a nuisance on the premises or in the surrounding area. (e) That the licensee suffered or permitted illegal acts upon the licensed premises or on property owned or controlled by the licensee adjacent to the licensed premises, unrelated to the sale of intoxicating liquor or 3.2 percent malt liquor. (f) That the licensee had knowledge of illegal acts upon or attributable to the licensed • premises, but failed to report the same to the police. 84472.05/Clean (OLD WP #66526.09) 12 RNK:r03/27/00 • (g) Expiration or cancellation of any required insurance, or failure to notify the City within a reasonable time of changes in the term of the insurance or the carriers. Sec. 10-38. Inactive Licens, . The City Council may revoke the intoxicating liquor or 3.2 percent malt liquor license of any establishment granted a license that is not under construction and exhibiting satisfactory progress toward completion within 6 months from its issuance, or any establishment that ceases operation for a period of 6 months. A hearing shall be held to determine what progress has been made toward opening or reopening the establishment and, if satisfactory progress is not demonstrated, the Council may revoke the license. Sec. 10-39. HearingNotice. Revocation or suspension of a license by the City Council shall be preceded by a public hearing conducted in accordance with Minnesota Statutes Section 14.57 to 14.70. The City Council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice shall be given at least 10 days prior to the hearing, include notice of the time and place of the hearing, and state the nature of the charges against the licensee. Sec. 1040. Minimum Civil Penalties. (a) Purpose. The purpose of this Section is to establish criteria by which the City Council determines the length of license suspensions and the propriety of revocations, and shall apply to all premises licensed under this Article. These penalties are the minimum penalties appropriate for most situations; however, the Council may deviate in an individual case where the • Council finds that there exist reasons making it more appropriate to deviate, such as, but not limited to, a licensee's efforts in combination with the State or City to prevent the sale of alcohol to minors. When deviating from these standards, the Council will provide written findings that support the penalty selected. U (b) Minimum Penalties for Violations. The minimum penalties for convictions or violations are as follows (unless specified, numbers below indicate consecutive days' suspension): Appearance Type of Violation I st 2nd 3rd 4th 1. Commission of a felony Revocation NA NA NA related to the licensed activity 2. Sale of alcoholic beverages Revocation NA NA NA while license is under suspension 3. Sale of alcoholic beverages 3 6 18 Revocation to under -age person 4. Sale of alcoholic beverages 3 ! 6 18 Revocation to obviously intoxicated I person j 84472.05/Clean (OLD WP #66526.09) 13 RNK:r03/27/00 • U Appearance 5. After hours sale of alcoholic 3 6 18 Revocation beverages 6. After hours display or 3 6 18 Revocation consumption of alcoholic beverages 7. Refusal to allow City 5 15 Revocation NA inspectors or Police admission to inspect premises 8. Illegal gambling on I 3 6 18 Revocation premises I 9. Failure to take reasonable I 3 i 6 18 Revocation steps to stop person from j leaving premises with alcoholic beverages j 10. Sale of intoxicating liquor , Revocation i NA NA NA where only license is for j 3.2 percent malt liquor I ++ i 1 (c) Multiple Violations. At a licensee's first appearance before the Council, the Council must act upon all of the violations that have been alleged in the notice sent to the licensee. The Council in that case must consider the minimum penalty for each violation under the first appearance column in subsection (b) above. The occurrence of multiple violations is grounds for deviation from the minimum penalties in the Council's discretion. (d) Subsequent Violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance before the Council, unless the City Manager and licensee agree in writing to add the violation to the first appearance. The same procedure applies to a second, third, or fourth appearance before the Council. (e) Subsequent _Appearances. Upon a second, third, or fourth appearance before the council by the same licensee, the Council must impose the minimum penalty for the violation or violations giving rise to the subsequent appearance without regard to the particular violation or violations that were the subject of the first or prior appearance. However, the Council may consider the amount of time elapsed between appearances as a basis for deviating from the minimum penalty imposed by this Section. (f) Computation of Appearances. After the firsL appearance, a subsequent appearance by the same licensee will be determined as follows: • (1) If the first appearance was within three (3) years of the current violation, the current violation will be treated as second appearance. 84472.05/Clean (OLD WP #66526.09) 14 RNKA3/27/00 • (2) If a licensee has appeared before the Council on two (2) previous occasions, and the current violation occurred within five (5) years of the first appearance, the current violation will be treated as a third appearance. (3) If a licensee has appeared before the Council on three (3) previous occasions, and the current violation occurred within seven (7) years of the first appearance, the current violation will be treated as a fourth appearance. (4) Any appearance not covered by subsection (1), (2), or (3), above will be treated as a first appearance. (g) Other Penalties. Nothing in this Section shall restrict or limit the authority of the Council to suspend up to sixty (60) days, revoke the license, impose a civil fine not to exceed two thousand dollars ($2,000.00), to impose conditions, or take any other action in accordance with law; provided, that the license holder has been afforded an opportunity for a hearing in the manner provided in this Article. DIVISION 3. RETAIL SALES REGULATION Sec. 10-41. Right of Inspection. (a) Any City designated police officer displaying proper identification shall have the unqualified right to enter, inspect, and search the premises of any licensee hereunder without a • warrant, during business hours or when owners, managers, or other employees are located on the premises. (b) The business records of the licensee, including Feaeral and State tax returns, shall be available for inspection by the City at all reasonable times upon written request. Sec. 10-42. (a) Orderly Conduct. Every licensee shall be responsible for the conduct on the licensee's place of business including conduct and activity attributable to the business on property owned or controlled by the licensee. Every licensee shall also cooperate with the City in controlling activity attributable to the business in surrounding areas. (b) Act of Employe. The act of any employee in violation of this Article on the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this Article and other laws equally with the employee. Sec. 10-43. Hours of Operation. (a) Hours and Days of Sale. Hours and days cf sale shall be as allowed by state law. There shall be no consumption or display of intoxicating or 3.2 percent malt liquor during the hours that sale is prohibited by state law. (b) Non -employees on Premises. A liquor licensee shall not allow non -employees on the • business premises from fifteen (15) minutes after the sale of intoxicating liquor is prohibited until the sale is again permitted except as hereinafter provided. On -sale intoxicating liquor licensees and 84472.05/Clean (OLD WP #66526.09) 15 RNK:r03/27/00 • on -sale 3.2 percent malt liquor licensees may permit non -employees on the premises during its normal hours of operation when the sale of intoxicating and 3.2 percent malt liquor is prohibited, provided, that there be no sale, consumption, or display of intoxicating or 3.2 percent malt liquor during the hours in which the sale or consumption of liquor is prohibited, and provided that the licensee has closed off all access to the bar area in a manner approved by the City. Sec. 10-44. Posting License. All liquor licensees shall have the license posted in a conspicuous place that is visible to the public in the licensed establishment at all times. Sec. 10-45. Building Changes. Proposed enlargement or substantial alteration which changes the character of the establishment, or extension of premises previously licensed shall be reported to the City Clerk at or before the time application is made for a building permit for any such change. The enlargement, substantial alteration or extension shall not be allowed unless the Council approves an amendment to the license. Sec. 10-46. Public haract r of Liquor Sales. No sale of liquor shall be made to or in guest rooms of hotels unless: (a) the rules of such hotel provide for the servi:;e of meals in guest rooms; (b) the sale of such liquor is made in the manner on -sales are required to be made; (c) such sale accompanies and is incidental to the regular service of meals to guests therein; is(d) the rules of such hotel and the description, location, and number of such guest rooms are fully set out in the application for the liquor license. Sec. 10-47. Y ectrictions Involving Underage Persons. (a) No licensee, his agent, or employee shall serve or dispense upon the licensed premises any intoxicating or 3.2 percent malt liquor to a person under the legal drinking age; nor shall such licensee, or his 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, his agent, or employee, permit any such person to be delivered any such liquors. (b) No person under the legal drinking age shall enter a licensed premises for the purpose of purchasing or consuming any alcoholic beverage. It is not unlawful for any person who has attained the age of 18 years to enter licensed premises for the following purposes: (1) to perform work for the establishment, including the serving of alcoholic beverages, unless otherwise prohibited by statute; (2) to consume meals; and (3) to attend social functions that are held in a portion of the establishment where liquor is no' sold. (c) No person under the legal drinking age shall possess any intoxicating or 3.2 percent malt • liquor. Possession of an alcoholic beverage by a person under the legal drinking age at a place 84472.05/Clean (OLD WP #66526.09) 16 RNK:r03/27/00 other than the household of the parent or guardian is prima facie evidence of intent to consume it at a place other than the household of the person's parent or guardian. (d) Misrepresenting Age. No underage person shall misrepresent the person's age for the purpose of obtaining intoxicating liquor or 3.2 percent malt liquor, nor shall the person enter any premises licensed for the retail sale of intoxicating liquor or 3.2 percent malt liquor for the purposes of purchasing or having served or delivered any alcoholic beverage. Nor shall any such person purchase, attempt to purchase, consume, or have another person purchase for the underage person any intoxicating liquor or 3.2 percent malt liquor. (1) Identification Required. Any person shall, upon demand of the licensee, his employee, or agent, produce and permit to be examined one of the following forms of identification provided under Minnesota Statutes Section 340A.503, subdivision 6. (2) prima Facie Fvidence. In every prosecution for a violation of the provisions of this section relating to the sale or furnishing of intoxicating liquor or nonintoxicating malt beverages to underage persons and in every proceeding before the Council with respect thereto, the fact that the underage person involved has obtained and presented to the licensee, his employee or agent, a driver's license, passport or identification card from which it appears that said person was not an underage person and was regularly issued such identification card, shall be prima facie evidence that the licensee, his agent o employee is not guilty of a violation of such • a provision and shall be conclusive evidence that a violation, if one has occurred, was not willful or intentional. Sec. 10-48. F,m}wment of Persons Under Eighteen Fears of Age. No person under eighteen (18) years of age may serve or sell intoxicating liquor in a retail intoxicating liquor establishment. Sec. 10-49. Prohibited Conditions. (a) Prostitution. No licensee shall knowingly permit the licensed premises or any room in those premises or any adjoining building directly under the licensee's control to be used by prostitutes. (b) Controlled Substances. No licensee shall knowingly permit the sale, possession or consumption of controlled substances on the licensed premises in violation of state law. (c) Gamblinor. Gambling and gambling devices are not permitted on licensed premises. State lottery tickets may be purchased and sold within licensed premises as authorized by the director of the state lottery. Sec. 10-50. Ownershipof Equipment. No equipment or fixture in any licensed place shall be owned in whole or in part by any manufacturer or distiller except such as shall be expressly permitted by state law. • Sec. 10-51. Display of Liquor. No on -sale liquor establishment shall display liquor to the public during the hours when the sale of liquor is prohibited. 84472.05/Clean (OLD WP #66526.09) 17 RNK:r03/27/00 • Sec.10-52. Delivery. (a) Restrictions. Only licensed off -sale retail liquor establishments and no other dealers may make deliveries of intoxicating liquor from their stores to the residence of the purchaser or other location. Such delivery shall be made only to a person 21 or more years of age. No deliveries may be made to a beer tavern or other public or private place in violation of law. No deliveries may be made to purchasers in any location where the sale or delivery thereof is prohibited by law. No deliveries may be made of any intoxicating liquor during the hours when off -sale of liquor is prohibited by state law or municipal ordinance. Only alcoholic beverages ordered and packed at the store for delivery shall be carried in the delivery vehicle. (b) Delivery Tickets Required. The person in charge of any vehicle delivering intoxicating liquor to purchasers shall carry an invoice or delivery slip stating the date and names and addresses of the seller and purchaser, itemizing the number, size, and brands of intoxicating liquor to be delivered. Upon delivery, the invoice shall be signed by the person accepting delivery and by the deliverer and the signed copy preserved on the retainer's premises for a period of six months. (c) Licensee May Refuse to Deliver. Any licensee, or employee or agent of the licensee, may refuse to sell or deliver intoxicating liquor to any person whom they have reasons to believe is ineligible to buy such liquor, or whom they have reason to believe intends to deliver the intoxicating liquor to ineligible consumers. They may require a person of doubtful age to produce written evidence of being 21 or more years of age. doSec. 10-53. Samples. Off -sale licensees may provide samples of malt liquor, wine, liqueurs, cordials, and distilled spirits which the licensee currently has in stock and is offering for sale to the general public without obtaining an additional license, provided the wine, liqueur, cordial, and distilled spirits samples are dispensed at no charge and consumed on the licensed premises during the permitted hours of off -sale in a quantity less than 100 milliliters of malt liquor per variety per customer, 50 milliliters of wine per variety per customer, 25 milliliters of liqueur or cordial, and 15 milliliters of distilled spirits per variety per customer. • Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this 13th day of March, 2000, by the City Council of the City of Chanhassen. ATTES '\ U Scott A. Botcher, Clerk/Manager 71A -4 A- eA1,V �.C.( Nancy K. Ma ino, Mayor (Published in the Chanhassen Villager on 30, 2000). 84472.05/Clean (OLD WP #66526.09) 18 RNK:r03/27/00 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. 299 AN ORDINANCE AMENDING CHAPTER 10 OF THE CHANHASSEN CITY CODE CONCERNING THE SALE, CONSUMPTION, AND DISPLAY OF ALCOHOLIC BEVERAGES This ordinance amends Chapter 10, Article II of the Chanhassen City Code in its entirety. The ordinance adopts Minnesota Statutes, Chapter 340A in its entirety, as well as sets guidelines for the issuance of Halsor ficenses in 'the city. License hogs will now be reauired to cksignseanlo�emng Sec, 14*0 a program of compliance cbe cks, W provi4e -training fart everyone who serves hquor. The ordinance also establishes penalties for non-compliance. Passed and adopted by the Chanhassen City Council on March 13, 2000. Scott A. Botcher City Manager (Published in the Chanhassen Villager on Thursday, March 30, 2000; No. 4246) Affidavit of Publication Southwest Suburban Publishing State of Minnesota) )SS. County of Carver ) Stan Rolfsrud, being duly sworn, on oath says that he is the publisher or the authorized agent of the publisher of the newspapers known as the Chaska Herald and the Chanhassen Villager and has full knowledge of the facts herein stated as follows: (A) These newspapers have complied with the requirements constituting qualification as a legal newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as amended. (B) The printed public notice that is attached to this Affidavit and identified as No. V4�7 was published on the date or dates and in the newspaper stated in the attached Notice and said Notice is hereby incorporated as part of this Affidavit. Said notice was cut from the columns of the newspaper specified. Printed below is a copy of the lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being the kind and size of type used in the composition and publication of the Notice: abcdefghijklmnopgrstu By: Subscribed and sworn before me on Stan Rolfsrud, General Manager or his designated agent thisday of ice-' , 2000 GUEN M. RADUENZ NOTARY PUBLIC MINNESOTA My Commission Expires Jan. 31, 2005 Notary Public RATE INFORMATION Lowest classified rate paid by commercial users for comparable space.... $13.00 per column inch Maximum rate allowed by law for the above matter ................................ $13.00 per column inch Rate actually charged for the above matter ................................................ $9.25 per column inch