City Code: 806:0

Section 806 - "On-Sale" Liquor, Sunday Sales, Regulations
and License Provisions

Section 806:00. Definitions.

Subd. 1. Unless the context clearly indicates otherwise, the words, combinations of words, terms and phrases, as used in Section 806:00 et seq., shall have the meanings set forth in the subdivisions of this section which follow, and Chapter 340A of Minnesota Statutes.

Section 806:05. License Procedures - "On-Sale."

Subd. 1. General Requirement. No person, except a wholesaler or manufacturer to the extent authorized under State License, shall directly or indirectly deal in, sell or keep for sale in the City any intoxicating liquor without a license to do so as provided in this ordinance.

Subd. 2. On-Sale Licenses. "On-sale" licenses shall be issued only to hotels, clubs, restaurants and exclusive liquor stores and shall permit "on-sale" of liquor only.

Subd. 3. Number of On-Sale Licenses. The authorized number of "on-sale" licenses for issuance shall be twenty (20). eff. 1/5/99

Subd. 4. Special Licenses for Sunday Sales.

a. A special license authorizing sales on Sunday in conjunction with the sale of food may be issued to any restaurant, club, bowling center or hotel with a seating capacity for at least thirty (30) persons and which holds an 'on-sale" intoxicating liquor license. eff. 11/4/02

b. For purposes of this Subdivision 4, 'Restaurant" is defined as an establishment as defined in Minn. Stat. 157.15, Subd. 12, and shall have a license issued by the State Health Department as required by Minn. Stat. 157.16, as it may be amended from time to time, and meet the definition of either 'limited food menu selection", 'small establishment", 'medium establishment", or 'large establishment", as defined in Minn. Stat. 157.16, Subd. 3(d), as it may be amended from time to time. An applicant for a special license under this Subdivision 4, and a licensee to whom a special Sunday license has been issued, shall file with the City a duplicate of the food license at the time of the initial application or upon renewal. eff. 11/4/02

c. For purposes of this Subdivision, 'the sale of food" means the licensee shall serve food not less than five (5) days weekly, including Sundays. eff. 11/4/02

d. All personnel, preparation areas, service areas and equipment must comply with all applicable laws and ordinances. eff. 11/4/02

e. Food service must be maintained from time of opening until 9:00 p.m.

f. A licensee holding a special license under this Subdivision 4, is authorized to sell alcoholic beverages for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, provided that the licensee is in conformance with the Minnesota Clean Air Act. eff. 11/4/02

g. The establishment must be under the supervision and control of a single proprietor or manager or supervisory person who is available on the premises to the public and City officials during hours of operation.

h. For private parties with the service of hors d'oeuvres, the licensee need not comply with paragraph h above, but must comply with the following: eff. 11/4/02

(1) All private parties must be held in an enclosed room, rooms or area separated or restricted from public use, said area to be monitored;

(2) Admission must be monitored by an employee of the licensee and be limited to invited guests only;

i. For purposes of this Subdivision 4, a hotel is defined as follows:

Hotel. "Hotel" is an establishment where food and lodging are regularly furnished to transients and which has:

(1) A resident proprietor or manager;

(2) A dining room serving the general public at tables and having facilities for seating at least thirty (30) guests at one time; and

(3) Guest rooms in the following minimum numbers: Ten (10).

A hotel is subject to the requirements of a restaurant provided under this Subdivision 4.

j. For purposes of this Subdivision 4, a club is defined as follows:

Club. "Club" is an incorporated organization organized under the laws of the State for civic, fraternal, social or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which:

(1) Has more than fifty (50) members;

(2) Has owned or rented a building or space in a building for more than one (1) year that is suitable and adequate for the accommodation of its members;

(3) Is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body.

k. Clubs may sell liquor on Sundays only in conjunction with the sales of food.

Subd. 5. Temporary Licenses. A temporary license for a period not to exceed three (3) days, may be granted to a club or charitable, religious or other nonprofit organization in existence for at least three (3) years, in connection with a social event within the City of Owatonna, sponsored by the applying organization.

Qualified organizations applying for a temporary license must complete the prescribed application and submit it with the license fee and a certificate of liquor liability insurance in amounts equal to those prescribed in Section 806:10, Subd. 2, or, in the alternative, a contract with a previously licensed on-sale, intoxicating liquor licensee, licensed to sell to the general public, to cater and provide the serving of intoxicating liquors. The catering licensee must present a certificate extending the liquor liability insurance to the premises in which the social event is being held.

No more than one (1) such temporary license will be allowed an organization in the course of any twelve (12) month span.

Each such application must be approved by the Minnesota Commissioner of Public Safety before becoming effective.

Section 806:10. Application for License.

Subd. 1. Form. Every application for a license to sell liquor shall state the name of the applicant, his age, representation as to his character, with such references as the Council may request, his citizenship, the type of license applied for, the business in connection with which the proposed license will operate and its location, whether the applicant is owner and operator of the business, how long he has been in that business at that place, and such other information as the Council may request from time to time. In addition to containing such information, the application shall be in the form prescribed by the liquor control director and shall be verified and filed with the City Clerk. No person shall make a false statement in an application. A copy of each application shall be forwarded to the Chief of Police and he shall return a report of his objections, if any, to issuance of the license as requested.

Subd. 2. Insurance. Each applicant for a license shall provide, with the application, proof of financial responsibility as follows: eff. 6/20/00

a. A certificate that there is in effect an insurance policy or pool providing the following minimum coverages:

(1) $50,000 because of bodily injury to any one (1) person in any one (1) occurrence, and, subject to the limit for one (1) person, in the amount of $100,000 because of bodily injury to two (2) or more persons in any one (1) occurrence, and in the amount of $10,000 because of injury to or destruction of property of others in any one (1) occurrence.

(2) $50,000 for loss of means of support of any one (1) person in any one (1) occurrence, and, subject to the limit for one (1) person, $100,000 for loss of means of support of two (2) or more persons in any one (1) occurrence; or

b. A bond of a surety company, with minimum coverages as provided in clause a., or

c. A certificate of the State Treasurer that the licensee has deposited with him $100,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $100,000.

Subd. 3. Approval of Security. The security offered under Subdivision 2 shall be approved by the City Council. Surety bonds shall be approved as to form by the City Attorney. Operation of a licensed business without having on file with the City at all times effective security, as required in Subdivision 2, is cause for revocation of the license.

Section 806:15. License Fees.

Subd. 1. Fees. The annual fee for a liquor license for an "on-sale" license, and for a special license for Sunday sales and for dance permit shall be in the amounts duly established from time to time by the City Council.

Subd. 2. Payment. Each application for a license shall be accompanied by a receipt from the City Treasurer for payment of the prescribed license fee. All fees shall be paid into the General Fund. If an application for a license is rejected, the Treasurer shall refund the amount paid.

Subd. 3. Term; Pro Rata Fee. Each license shall be issued for a period of one (1) year except that if an initial application is made during the license year, a license may be issued for the remainder of the year for a pro rata fee of $200 per month plus an administrative fee of $100; any fraction of a month is counted as one (1) month. Every license shall expire on the last day of June. eff. 12/6/94

Subd. 4. Refunds. Refunds of license fees may be made to licensees of record, according to the following formula: Of the amount paid in, $100 shall be retained to cover the costs of administration and processing. The balance shall be refunded at the rate of $200 per each full month that the license is not used. At the time of surrender of the license, the residual balance may be remitted to the surrendering licensee upon application to the City Clerk-Treasurer and approval by the City Council. eff. 12/6/94

Subd. 5. Investigation Fee. At the time of initial application for an "on-sale" license or special license for Sunday sales, or upon application for a transfer of an existing license, the applicant shall pay to the City an investigation fee of an amount to be set by the Council from time to time, which is not refundable in whole or in part. An investigation fee is not required for renewals for the same applicant unless an investigation is deemed necessary by the Council.

Section 806:20. Granting of Licenses.

Subd. 1. Investigation and Issuance. The City Council shall consider all facts set out in the application and the report of the Chief of Police. Opportunity shall be given to any person to be heard for or against the granting of the license. After the hearing, the Council shall, in its discretion, grant or refuse the application. No "on-sale" license shall become effective until it, together with the security furnished by the applicant, has been approved by the liquor control director.

Subd. 2. Person and Premises Licenses; Transfer. Each license shall be issued only to the applicant and only for the premises described in the application. No license may be transferred to another person or place without City Council approval. Any transfer of a majority of the stock of a corporate licensee is deemed a transfer of the license, and a transfer of a majority of the stock without prior Council approval is a ground for revocation of the license.

Subd. 3. New Premises. Where an applicant has applied for a license for premises whereon a new structure is to be erected, or an existing structure is to be substantially reconstructed, the license may be granted by the Council but issued to the applicant only after applicant furnishes to the Council a certificate of occupancy issued to the applicant by the building official. If a new building is contemplated or under construction, a floor plan and site plan must be provided with this application.

Subd. 4.. Persons Ineligible for License. No license shall be granted to any person made ineligible for such a license by State law.

Subd. 5. Places Ineligible for License - General Prohibition. No license shall be issued for any place or any business ineligible for such a license under State law.

Subd. 6. Delinquent Taxes and Charges. No license shall be granted or renewed for operation on any premises on which Federal, State, County or Municipal taxes, assessments or other financial claims are delinquent and unpaid.

Section 806:25. Conditions of License.

Subd. 1. In General. Every license is subject to the conditions in the following subdivisions and all other provisions of this ordinance and of any other applicable ordinance, State law or regulation.

Subd. 2. Hours of Sale. No sale of intoxicating liquor for consumption on the licensed premises may be made:
(1) Between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday;
(2) After 1:00 a.m. on Sunday except as provided by Section 806:05, Subd. 4(f).
No 'on-sale" shall be made nor shall any person be allowed to consume or have in his possession or under his control any intoxicating liquor after the hour of 1:00 a.m. It shall be the responsibility of the licensee, or employees of licensees to remove all bottles, glassware and other beverage containers that contain intoxicating liquor as defined in Minnesota Statutes, Section 340A.101, Subd. 14, from the bar, table areas and from customers by no later than 1:00 a.m. The premises of the establishment shall be vacated of all customers by 1:30 a.m. eff. 1/3/06

Subd. 3. Licensee's Responsibility. Every licensee is responsible for the conduct of his place of business and the conditions of sobriety and order in it. The act of any employee on the licensed premises authorized to sell intoxicating liquor there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by this ordinance and the law equally with the employee.

Subd. 4. Inspections. Every licensee shall allow any peace officer, health officer, building inspector or other properly designated officer or employee of the City to enter, inspect and search the premises of the licensee during business hours without a warrant.

Subd. 5. Display During Prohibited Hours. No "on-sale" establishment shall display liquor to the public during hours when the sale of liquor is prohibited.

Subd. 6. Federal Stamps. No licensee shall possess a Federal wholesale liquor dealer's special tax stamp or a Federal gambling stamp.

Section 806:30. Prohibited Acts.

Subd. 1. No dancing whatever shall be permitted in any establishment other than clubs which are licensed to sell intoxicating liquor, except where permit is issued therefor.

Subd. 2. A dance permit may be issued by the Council for a fee in the amount duly established by the Council from time to time to "on-sale" license holders. Each permit shall run concurrently with the "on-sale" license of the permittee, and shall authorize patron dancing only, and only in designated areas specified in the permit. No more than two (2) designated areas shall be allowed per establishment. Permit holder shall be responsible for policing dance areas, and failure to do so shall constitute a violation of the terms of the permit, and authorize the Council, upon a public hearing with ten (10) days written notice, to revoke the permit or suspend said permit, separate from the "on-sale" license.

Subd. 3. It shall be unlawful for any minor to enter or be in any establishment licensed for the sale of intoxicating liquor, except that nothing herein contained shall be construed to prohibit a minor from entering or remaining in any such establishment in an area set aside for the serving of meals, for the purpose of purchasing food or non-intoxicating beverages for his or her consumption. "An area set aside for serving meals," as used herein, shall be separated from the serving bar by a permanent type of partition constructed in a manner satisfactory to the Council so as to delineate in the licensed premises an area separate from the bar which would be used primarily for the serving of meals to the public for a consideration to be charged therefor. It shall be the responsibility of the licensee or any employee of licensee to insure that no minor enter the establishment, other than an area set aside for serving meals. Should a minor be found in an area other than an area set aside for serving meals, the licensee shall be in violation of this ordinance.

Subd. 4. No musical entertainment shall be permitted or conducted in any licensed premises other than clubs, except on an area set aside solely for the use as a stage.

Subd. 5. No person may carry or transport intoxicating liquor in a glass or other open container on a public sidewalk, street, alley or parking lot in the City, or consume it thereon.

Section 806:35. Restrictions on Purchase and Consumption.

Subd. 1. Liquor in Unlicensed Places. No person shall mix or prepare liquor for consumption in any public place or place of business unless it has a license to sell liquor "on-sale" or permit from the liquor control director under Minnesota Statutes, and no person shall consume liquor in any such place.

Section 806:40. Suspension and Revocation. The Council may either suspend for not to exceed sixty (60) days or revoke any liquor license upon a finding that the licensee has failed to comply with any applicable statute, regulation or ordinance relating to intoxicating liquor. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to Minnesota Statutes, Section 14.58.

City Code Index