DISCLAIMER

 

05-048-O

ORDINANCE NO. __________


AN ORDINANCE AMENDING CHAPTER 8, SECTIONS 13, 18, 24, 27, 32, 40, 41, 42, 44, 49, 50, 51, 52, 55, 56, 57, 59, 62 AND 67 OF THE DULUTH CITY CODE, 1959, AS AMENDED.

BY COUNCILOR STEWART:

The city of Duluth does ordain:

     Section 1. That Chapter 8, Section 13, of the Duluth City Code, 1959, as amended, is amended to read as follows:

Sec. 8-13. Definitions.

     For the purposes of this Division, the following words and phrases shall have the meanings respectively ascribed to them by this Section:

     Alcoholic beverages. Distilled, fermented, spirituous, vinous, and malt beverages containing .5 percent or more of ethyl alcohol by weight which are potable for consumption by human beings.

     At retail. Such term means for use or consumption by the purchaser and not for resale.

     Bed and breakfast establishment. Any bed and breakfast inn authorized by Section 50-35 of this Code or other residential, owner occupied, historically or architecturally unique, overnight lodging facility that serves meals to its guests and which is authorized or allowed by local law and is found by the alcoholic beverage board to be the functional equivalent of a bed and breakfast inn.

     Club. Any corporation duly organized under the laws of the state for civic, fraternal, social or business purposes, or for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization which shall have more than 50 members and which shall, for more than a year, have owned, hired or leased a building or space in a building of such extent and character as may be suitable and adequate for the reasonable and comfortable accommodation of its members, whose affairs and management are conducted by a board of directors, executive committee or other similar body chosen by the members at a meeting held for that purpose, none of whose members, officers, agents or employees is paid directly or indirectly any compensation by way of profit from the distribution or sale of beverages to the members of the club, or to its guests, beyond the amount of such reasonable salary or wages as may be fixed and voted each year by the directors or other governing body.

     Exclusive liquor store. An establishment used exclusively for the sale of intoxicating liquor for consumption off or away from the licensed premises where sold, and the sale of ice, soft drinks, and cigarettes.

     Hotel. Any establishment having a resident proprietor or manager, where, in consideration of payment therefor, food and lodging are regularly furnished to transients, which maintains not less than 50 guest rooms with bedding and other suitable and necessary furnishings in each room, which is provided with a suitable lobby, desk and office for the registration of its guests at the main entrance and on the ground floor, which employs an adequate staff to provide suitable and the usual service and which maintains, under the same management and control as the rest of the establishment and has as an integral part thereof, a dining room with appropriate facilities for seating not less than 30 guests at one time and where the general public is, in consideration of payment therefor, served with meals at tables.

     Intoxicating liquor. Ethyl alcohol and distilled, fermented, spirituous, vinous and malt beverages containing in excess of 3.2 percent of alcohol by weight.

     Manufacturer. Every person who, by any process of manufacture, fermenting, brewing, distilling, refining, rectifying, blending or by the combination of different materials, prepares or produces intoxicating liquors for sale.

     Malt liquor. Any beer, ale or other beverage made from malt by fermentation and containing not less than one-half of one percent alcohol by volume.

     Nonintoxicating malt liquor or nonintoxicating liquor 3.2 percent malt liquor. Any liquid, potable as a beverage malt liquor containing not less than one-half of one percent alcohol by volume nor more than 3.2 percent alcohol by weight, containing not more than 3.2 percent of alcohol by weight nor less than ½ of one percent of alcohol by volume.

     Off sale. The sale of alcoholic beverages in original packages in retail stores for consumption off or away from the premises where sold.

     On sale. The sale of alcoholic beverages by the glass for consumption on the premises only.

     Package or original package. Any container or receptacle holding alcoholic beverages, which container or receptacle is corked or sealed.

     Public place. Any place that the general public can occupy as a matter of right or any place that is open to the general public by invitation, either for business purposes or otherwise.

     Restaurant. Any establishment, other than a hotel, under the control of a single proprietor or manager, having appropriate facilities for the serving of meals and for seating not less than 50 guests at one time and where, in consideration of payment therefor, meals are regularly served at tables to the general public, which employs an adequate staff to provide the usual and suitable service to its guests and a principal part of the business of which is the serving of foods. One or more bowling alleys may be included in the licensed premises of a restaurant if table service is available throughout the licensed premises.

     Sale, sell, dispense or sold. All barters and all manners or means of furnishing alcoholic beverages for a consideration. Such term shall include all transactions, whether for cash, credit or other considerations and shall include transactions where the consideration for the alcoholic beverage is included or combined with another transaction or where the consideration is called a "donation" or used to purchase any ticket, token, or other object redeemable for alcoholic beverages.

     Wholesaler. Any person engaged in the business of selling alcoholic beverages to retail dealers.

     Wine. The product made from the normal alcoholic fermentation of grapes, including still wine, sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry and sake, in each instance containing not less than one-half of one percent nor more than 24 percent alcohol by volume for nonindustrial use. Wine does not include distilled spirits as defined by Minnesota Statutes, Chapter 340A.101, Subd. 9.

     Section 2. That Chapter 8, Section 18, of the Duluth City Code, 1959, as amended, is amended to read as follows:

Sec. 8-18. Same--Nonintoxicating 3.2 percent malt liquor.

     No sale of nonintoxicating 3.2 percent malt liquor shall be made on any Sunday between the hours of 1:00 a.m. and 12:00 Noon 10:00 a.m.. No sale shall be made between the hours of 1:00 a.m. and 8:00 a.m. on any weekday, Monday through Saturday inclusive.

     Sales can be made at other times that are authorized by Minnesota Laws 2003, Chapter 126 (M.S.A. Sec. 340A.504) or its amendments or successor, provided that the seller has first obtained each required state permit and has paid required fees, and has applied for and obtained a “late hours” permit from the office of the city clerk and paid any fee due.

     No owner or proprietor of any premises for which an on sale intoxicating liquor license has been granted shall directly or indirectly permit upon such premises the sale, dispensing or furnishing of nonintoxicating 3.2 percent malt liquor at any time during Sunday unless he has a valid special Sunday license as provided for in Section 8-46 of the Duluth City Code, 1959, as amended.

     Section 3. That Chapter 8, Section 24, of the Duluth City Code, 1959, as amended, be amended to read as follows:

     Sec. 8-24. Gambling devices, prostitution, etc., prohibited.

     (a)  Except as provided below, no licensee shall keep, possess, operate or permit the keeping, possession or operation of any roulette wheel, football boards or other sports score betting boards, slot machine, dice or other gambling device or apparatus designed to facilitate betting on the premises or in any room adjoining the licensed premises controlled by him, permit any gambling therein, or permit the licensed premises or any room in the same or in any adjoining building, directly or indirectly under his control, to be used as a resort for prostitutes or other disorderly persons;

     (b)  A charitable organization licensed by the state of Minnesota pursuant to Minnesota Statutes, Chapter 349, to conduct lawful gambling may conduct such gambling on premises for which an intoxicating or nonintoxicating 3.2 malt liquor license has been issued. The operation of lawful gambling in establishments licensed to sell alcoholic beverages shall be subject to the regulations set forth herein and no licensee or other person shall violate any of said regulations. In addition to criminal penalties, the city council shall, pursuant to Minnesota Statutes, Section 349.213, disapprove of the issuance of any lawful gambling license or premises permit by the Minnesota gambling control board if the issuance of such license or permit would violate these regulations. The regulations are as follows:

           (1)  No organization, including its auxiliaries and subdivisions, shall operate lawful gambling in more than six establishments in the city which are licensed to sell alcoholic beverages, and only three of the establishments may have pull-tabs sold by jar operators or pull-tab dispensing devices, with the remaining establishments served by pull-tab dispensing devices only;

           (2)  Only one organization may operate lawful gambling on each premises licensed to sell alcoholic beverages;

           (3)  No organization shall pay lease payments in excess of $1,000 per month to any establishment in the city licensed to sell alcoholic beverages for leases entered into prior to May 31, 2003. For booth operation leases negotiated after May 31, 2003, no organization shall pay lease payments in excess of ten percent of gross profits or a maximum of $1,750 per month. For booth operation leases negotiated after May 31, 2003, the maximum lease payment allowed for sites with less than $4,000 gross profit per month shall be $400 per month. For bar operation leases in an establishment that has no booth operation, which are negotiated after May 31, 2003, if the organization only operates pull-tab dispensing devices at an establishment where redemption is made by an employee of the lessor, the organization shall not pay lease payments in excess of 20 percent of gross profits or a maximum of $2,000 per month, with a maximum of $200 per month on the first $1,000 of gross profits. For the purpose of this Section, any money or other thing of value given by an organization directly or indirectly to the liquor establishment or to any other entity in furtherance of the liquor establishment's interests shall be considered a lease payment, regardless of the stated purpose of the transaction. No liquor establishment shall accept lease payments in excess of any lawful limit;

           (4)  The area where pull-tabs are sold or other lawful gambling is operated shall be separate and away from the bar and liquor dispensing service areas of any establishment licensed to sell alcoholic beverages;

           (5)  No pull-tabs shall be sold by any employee of the establishment licensed to sell alcoholic beverages;

     (c)  The provisions of regulations (4) and (5) above shall not apply to any situation where the same organization holds both the alcoholic beverage license and the lawful gambling license;

     (d)  The provisions of regulation (2) shall not apply to the Duluth Entertainment Convention Center;

     (e)  Minnesota state lottery tickets authorized by Minnesota Statutes, Chapter 349A, may be sold on premises licensed to sell alcoholic beverages;

     (f)  Gambling equipment may be kept or operated and raffles conducted on licensed premises and adjoining rooms when the use of the gambling equipment is authorized by:

           (1)  A tribal ordinance in conformity with the Indian Gaming Regulatory Act, Public Law Number 100-497; or

           (2)  A tribal-state compact authorized under Minnesota Statutes, Section 3.9221.

     Section 4. That Chapter 8, Section 27, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-27. Consumption by minors prohibited.

     No person under 21 years of age shall:

     (a)  Consume any alcoholic beverage; or

     (b)  Have in his possession any alcoholic beverage for the purpose of consumption by him or by any other person under 21 years of age; or

     (c)  Have any alcoholic beverage present in his body as evidence by observable symptoms or chemical tests.

     It shall be an affirmative defense to a charge of violating this Section if only nonintoxicating 3.2 percent malt liquor was consumed or possessed for the purpose of consumption and such consumption or possession was in the presence of the parent, parents or legal guardian of the person so charged.

     Section 5. That Chapter 8, Section 32, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-32. Spiking prohibited.

     Except in establishments holding bottle club licenses, no person who is in charge of, or who has the control or management of any restaurant, hotel or club licensed to sell nonintoxicating 3.2 percent malt liquor shall permit any patron, guest or person, while in or upon such premises, to increase the alcoholic content of any otherwise nonintoxicating 3.2 percent malt liquor sold on such premises. The drinking or possession of any intoxicating liquor or beer containing an alcoholic content in excess of 3.2 percent by weight on such premises shall be grounds for the revocation of such restaurant, hotel or club on sale licenses.

     Section 6. That Chapter 8, Section 40, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-40. Dancing and late hours entertainment licenses for liquor establishments.

     (a)  No person licensed to sell alcoholic beverages on sale shall allow any dancing participated in by the public on said premises unless such person has first received a license pursuant to this Section;

     (b)  A dancing license shall entitle the license holder to have dancing participated in by the public on the licensed premises. The annual fee for a dancing license shall be set in accordance with Section 31-6(a) of this Code. The fee shall be prorated in the same manner as liquor licenses;

     (c)  Notwithstanding any provision of this Section or Chapter to the contrary, clubs and congressionally chartered veterans organizations that are open only to members and bona fide guests of members may have dancing participated in by members and guests, without securing a dancing license;

     (d)  Notwithstanding any provision of this Section or Chapter to the contrary, seasonal dancing licenses covering the months of May through August, or a one day dance license, may be issued to any on sale licensee for a fee set in accordance with Section 31-6(a) of this Code;

     (e)  Notwithstanding any provision of this Section or Chapter to the contrary, late hours entertainment licenses may be issued to establishments holding on sale alcoholic beverage licenses if they meet the criteria set forth in this paragraph. Such license shall allow the establishment to have music and entertainment, including dancing by patrons, after the hours when sales of alcoholic beverages are required to cease. The fee for such license shall be set in accordance with Section 31-6(a) of this Code. Every application for such license shall be investigated by the police department and alcohol, gambling and tobacco commission. No license shall be issued in an area or under circumstances where the late hours entertainment would disturb adjoining properties or the surrounding neighborhood. In their investigation and recommendations, the police and alcohol, gambling and tobacco commission shall consider, without limitation:

           (1)  The proximity of the establishment to residences and residentially zoned property;

           (2)  The character of the neighborhood surrounding the establishment;

           (3)  Parking facilities at the establishment;

           (4)  The acoustic properties of the building housing the establishment;

           (5)  The past record of the establishment; and

           (6)  Any past complaints from adjoining property owners.

     The license may contain conditions and limitations concerning types of entertainment and hours of entertainment. No entertainment shall be allowed after 3:00 a.m. All establishments allowing late hours dancing must have a dancing license as required by paragraphs (a) and (d) of this Section.

     Section 7. That Chapter 8, Section 41, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-41. Types generally.

     With respect to intoxicating liquor, there shall be six types of licenses: on sale, on sale club, on sale wine, temporary on sale, off sale and a brewery malt liquor off sale. On sale licenses shall permit the licensee to sell intoxicating liquor at retail for consumption on the licensed premises only. Temporary on sale licenses shall permit the licensee to sell intoxicating liquor on sale temporarily in connection with a social event sponsored by the licensee. Except as provided herein, off sale licenses shall permit the licensee to sell intoxicating liquor at retail in original packages for consumption off the licensed premises only. Brewery malt liquor off sale licenses shall permit breweries holding on sale licenses or a brewer who manufactures fewer than 3,500 barrels of malt liquor in a year to sell malt liquor off sale in 64-ounce containers commonly known as growlers, subject to the restrictions in Minnesota Statutes, Section 340A.301, subd. 7(b) and this Chapter. Notwithstanding the provisions of sections 8-21 and 8-22 of this Chapter, it shall be lawful for the holder of an off sale intoxicating liquor license or a brewery malt liquor off sale license to provide samples as provided in Minnesota Statutes, Section 340A.510, subd. 1 and subd. 2.

     With respect to nonintoxicating 3.2 percent malt liquor, there shall be three types of licenses: on sale, off sale and temporary on sale. On sale licenses shall permit the licensee to sell nonintoxicating 3.2 percent malt liquor at retail for consumption on the licensed premises only. Off sale licenses shall permit the licensee to sell nonintoxicating 3.2 percent malt liquor at retail in original packages for consumption off the licensed premises only. A temporary on sale license shall permit the licensee to sell nonintoxicating 3.2 percent malt liquor at retail for a limited period of time at a designated licensed premise only.

     No alcoholic beverage license of any type shall be granted to any elective, executive or administrative officer of the city, nor to any employee holding a position in the classified service of the city and working as a licensed peace officer in the police department or as a fire marshal or assistant fire marshal, nor shall any such officer or employee engage in the business, except that employees in the classified service not working as a licensed peace officer in the police department or as a fire marshal or assistant fire marshal may work in any licensed establishment if they do not participate in the management of the business.

     Section 8. That Chapter 8, Section 42, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-42. Issuance or transfer of an on sale license; application procedure; limitation on issuance of inactive licenses.

     (a)  Whenever there shall be filed with the city clerk an application for the issuance of an on sale alcoholic beverage license or for a transfer thereof, the fire marshall and the St. Louis County health department shall proceed to inspect and examine such premises and make a report to the alcohol, gambling and tobacco commission as to whether such premises show substantial compliance with the requirements of this Chapter and other applicable laws. The police department shall investigate the applicant and report whether the applicant is a proper person to receive such license. In the event such reports and any supplementary assurances indicate the building will comply with the requirements of laws relating to on sale alcoholic beverage licenses, including building, fire and health codes, a license may be granted, which shall be held by the city clerk until completion of the proposed premises. Thereafter, a final inspection and report shall be made by each of such officers and if their reports indicate that the premises meet the requirements of all applicable laws and are otherwise suitable for the operation of the business permitted by such license, then the clerk shall physically deliver the license to the applicant. In the event that construction of the proposed premises is not prosecuted by the applicant with reasonable diligence, or in the event the building, when completed, does not comply with the requirements above set forth, the council may revoke such license as provided for in this Chapter;

     (b)  Except as provided herein, no alcoholic beverage license shall be reissued to any licensee who has held a license for a period of two years or more without using said license by engaging in the business of selling alcoholic beverages on the licensed premises pursuant to said license for a continuous period of 30 days or more. The city council may reissue a liquor license that has been inactive for more than two years for an additional year, but only if it has been shown at a hearing before the alcohol, gambling and tobacco commission that the licensee is subject to special circumstances that make it difficult for the licensee to use the license and make it inequitable to divest the licensee of the license. Any licensee wishing a hearing hereunder shall request the hearing at least 45 days before the renewal date of the license. The request shall be in writing and shall outline the special circumstances affecting the licensee. At the hearing, the alcohol, gambling and tobacco commission shall examine the licensee's circumstances and shall make a recommendation for or against reissuance to the city council. The recommendation, together with a transcript of the hearing, shall be sent to the city council. After reviewing the recommendation, the city council shall grant or deny the license. More than one reissuance may be granted, but each reissuance shall require a hearing. No alcoholic beverage license may be renewed if the licensee has not made sales authorized by the license at any time during the one-year period immediately prior to the date of renewal.

     Section 9. That Chapter 8, Section 44, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-44. To whom licenses issued--intoxicating liquor.

     On sale intoxicating liquor licenses shall be granted only to establishments which are used exclusively for the sale of intoxicating liquor, cigars, cigarettes, ice, all forms of tobacco, nonintoxicating 3.2 percent malt liquor and soft drinks at retail and to hotels, clubs, restaurants and bowling alleys.

     On sale club licenses shall be granted, subject to the approval of the commissioner of public safety, only to clubs or to congressionally chartered veterans organizations which have been in existence for three years or more. Such license shall authorize the sale of intoxicating liquors only to members of the licensed organization and their bona fide guests.

     On sale wine licenses shall be granted only to restaurants or bed and breakfast establishments and shall authorize licensees on every day of the week to sell wine not exceeding 14 percent alcohol by volume, for consumption on the licensed premises only, in conjunction with the sale of food. A bed and breakfast establishment may furnish wine only to registered guests of the establishment. Sunday hours of sale shall be from Noon to 1:00 a.m. Monday. No on sale wine license shall be in effect until it is approved by the liquor control commissioner of the state of Minnesota. For the purposes of this Section wine shall mean wine as defined by Title 27, the Code of Federal Regulations on May 1, 1975.

     Temporary on sale liquor licenses shall be issued only to:

     (a)  Clubs, charitable organizations, religious organizations and other nonprofit organizations in existence for at least three years;

     (b)  A registered political committee; or

     (c)  A state university; or

     (d)  A brewer who manufactures fewer than 3,500 barrels of malt liquor in a year,

in connection with a social event sponsored by the licensee. The license shall be issued for a limited length of time, not to exceed four consecutive days. Temporary on sale licenses to any one organization or for one location shall not exceed more than three four-day, four three-day, six two-day or 12 one-day licenses, in any combination not to exceed 12 days per year. No more than one license shall be issued to any one organization or for any one location within any 30-day period unless the licenses are issued in connection with an event officially designated a community festival by the city. The city may authorize the temporary on sale liquor license 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 intoxicating liquor license used by the city.

     Off sale intoxicating liquor licenses shall be granted only to exclusive liquor stores.

     Brewery malt liquor off sale licenses shall be granted only to:

     (a)  Breweries holding on sale licenses; or

     (b)  A brewer who manufactures fewer than 3,500 barrels of malt liquor in a year,

and shall be subject to all restrictions, terms and conditions contained in Minnesota Statutes, Section 340A.301, subd. 7(b).

     Section 10.That Chapter 8, Section 49, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-49. Same--Nonintoxicating 3.2 percent malt liquor.

     On sale nonintoxicating 3.2 percent malt liquor licenses shall be granted only to premises which have been approved by the city council upon advice from the alcohol, gambling and tobacco commission. The total number of on sale licenses to be granted under this Section shall not exceed the ratio of one on sale license for every 800 inhabitants of the city or fraction thereof, as determined by the last federal census; provided, that in determining such ratio, clubs shall not be included or limited in such number.

     Section 11.That Chapter 8, Section 50, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-50. To whom licenses issued--temporary nonintoxicating malt liquor.

     (a)  For purposes of this Section, the following words and phrases shall have the following meanings:

     Charitable organization. An organization which engages in solicitation of funds, on a permanent basis, for any charitable, benevolent, philanthropic, patriotic or eleemosynary purposes.

     Religious organization. An organization which is affiliated with a national or regional religious denomination and which maintains an established church and congregation.

     Nonprofit organization. An organization which is neither designed for nor results in any private pecuniary gain, either directly or indirectly, for any of its members;

     (b)  Notwithstanding any provisions of the Duluth City Code to the contrary, temporary on sale nonintoxicating 3.2 percent malt liquor licenses may be issued to clubs, charitable organizations, religious organizations and other nonprofit organizations permitting such club or organization to sell nonintoxicating 3.2 percent malt beverage on sale;

     (c)  Such license shall be issued for a limited length of time, not to exceed 14 days, and such license shall state on its face the specific dates on which it is valid. The application for such license and the license itself shall specifically state the precise premises where such nonintoxicating 3.2 percent malt liquor is to be sold. The license application shall be accompanied by insurance if insurance is required under the provisions of Minnesota Statutes, Chapter 340A. The fee for such license shall be set in accordance with Section 31-6(a) of this Code. Said fee and cash deposit shall be paid to the city clerk at the time of application. All applications for such licenses shall be made to and filed with the city clerk on forms provided by the city clerk. Such license shall not be transferable. No license shall be issued under this Section if it appears that the issuance of such license will endanger the health, safety or morals of the public. Licensed premises outside of buildings shall be clearly indicated;

     (d)  The chief of police shall designate or approve one or more security personnel to police premises licensed pursuant to this Section at times when nonintoxicating 3.2 percent malt liquor is sold on such premises. The fees and expenses for such personnel shall be paid by the licensee.

     Section 12.That Chapter 8, Section 51, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-51. Beer sales by and entertainment in certain restaurants.

     (a)  Pursuant to Chapter 200, Laws of Minnesota, 1979, and notwithstanding any other law in the contrary, restaurants holding both an on sale wine license and an on sale nonintoxicating 3.2 percent malt liquor license may make on sales of beer which is brewed and bottled outside the United States and which does not exceed seven percent alcohol by weight without an additional license;

     (b)  Pursuant to Minnesota Statutes, Section 340A.404, Subdivision 5(b), and notwithstanding any other law to the contrary, restaurants holding both an on sale wine license and an on sale nonintoxicating 3.2 percent malt liquor license and whose gross receipts are at least 60 percent attributable to the sale of food, may sell all malt liquors not exceeding seven percent alcohol by weight without an additional license.

     Section 13.That Chapter 8, Section 52, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-52. Terms and conditions of on sale licenses.

     On sale intoxicating and nonintoxicating 3.2 percent liquor licenses shall be issued subject to the following terms and conditions:

     (a)  No on sale license shall be granted to any applicant or for any premises if, in the judgment of the city council, the operations of the proposed establishment are likely to become a public nuisance or detrimental to public morals;

     (b)  No dancing shall be conducted on the licensed premises between the hours of 1:00 a.m. and 8:00 a.m. on any day, unless the establishment has been granted a late hours entertainment license under the provisions of Section 8-40 of this Chapter;

     (c)  The chief of police, under the direction of the administrative assistant, shall designate a suitable person to act as an officer of the law on the licensed premises during the hours when dancing is conducted on such premises. The fees of such person or officer shall be paid by the licensee. In case any person not a public officer shall be designated as such officer of the law, the person to whom such permit has been issued shall be responsible for the officer’s acts and conduct. There shall be no liability for the acts and conduct of the designated officer on the part of any city employee designating such officer under the provisions of this Division.

     Section 14.That Chapter 8, Section 55, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-55. Duration; expiration date; prorating of certain licenses.

     Except as herein otherwise expressly provided, all alcoholic beverage licenses shall be issued for a period of one year; except, that for the purpose of coordinating the time of expiration of licenses in general, such licenses may be issued for a shorter time, and when thus issued the fees therefor shall be prorated; provided, that fees for off sale nonintoxicating 3.2 percent malt liquor licenses shall not be prorated. All licenses for intoxicating liquor shall expire on the 31st day of August each year next succeeding the issuance of such license; and all licenses for nonintoxicating 3.2 percent malt liquor shall expire on the 30th day of April each year next succeeding the issuance of such license. This Section shall not apply to temporary on sale nonintoxicating 3.2 percent malt liquor licenses.

     Section 15.That Chapter 8, Section 56, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-56. Fees.

     The license fee for off sale and on sale nonintoxicating 3.2 percent malt liquor licenses shall be paid to the city clerk not later than March 15 of each year. The license fee for off sale intoxicating liquor licenses shall be paid to the city clerk not later than July 15 of each year. The license fee for on sale intoxicating liquor licenses may, at the option of the licensed applicant, be paid to the city clerk either in one lump sum not later than July 15 in each year, or in four equal installments, which shall be paid not later than July 15, October 15, January 15 and April 15, respectively. In any case where any payment for any alcoholic beverage license is not made when due, a penalty fee, which shall be set in accordance with Section 31-6(a) of this Code, shall be added to the fee. Nonpayment of fees shall constitute good cause for suspension or revocation of any license.

     Payment for license fees shall be made by certified check payable to the city treasurer of the city or in lawful money of the United States of America and when such fees are received by the city clerk they shall be transmitted to the city treasurer. Upon the granting of a license as provided in this Article the amount of fee for such license shall be paid into the general fund.

     (a)  The annual fees for on sale intoxicating liquor licenses shall be set in accordance with Section 31-6(a) of this Code.

           Whenever any licensee holding an on sale intoxicating liquor license shall at any time for any purpose operate more than one permanent bar, such licensee shall pay an additional annual license fee, which shall be set in accordance with Section 31-6(a) of this Code, for each such additional permanent bar. A so-called service bar which is used solely by employees of the licensee shall not be considered a bar for purposes of this Section;

     (b)  The annual fee for an off sale intoxicating liquor license shall be set in accordance with Section 31-6(a) of this Code;

     (c)  The fee for a temporary on sale liquor license shall be set in accordance with Section 31-6(a) of this Code;

     (d)  The annual fee for an on sale nonintoxicating 3.2 percent malt liquor license shall be set in accordance with Section 31-6(a) of this Code;

     (e)  The annual fee for an off sale nonintoxicating 3.2 percent malt liquor license shall be set in accordance with Section 31-6(a) of this Code;

     (f)  The annual fee for a brewery malt liquor off sale license shall be set in accordance with Section 31-6(a) of this Code.

     Section 16.That Chapter 8, Section 57, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-57. Refund of fees in certain cases.

     In case, during the term of an on sale intoxicating liquor license, an off sale intoxicating liquor license or an on sale nonintoxicating 3.2 percent malt liquor license, the place of business of any licensee shall be destroyed or so damaged by fire or otherwise that the licensee shall cease to carry on the licensed business, in case the business of the licensee shall cease by reason of his illness or death or if it shall become unlawful for the licensee to carry on the licensed business under his license, except when such license is revoked, the city council may, upon the happening of any such event, refund to the licensee or to his estate such part of the license fee paid by him as corresponds to the time such license had yet to run; provided, however, that in case of the death of any such licensee, his personal representative is hereby authorized to continue operation of such business for not more than 90 days after the death of such licensee.

     Section 17.That Chapter 8, Section 59, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-59. Same--Nonintoxicating 3.2 percent malt liquor licenses.

     Every person desiring a nonintoxicating 3.2 percent malt liquor license shall file a verified application therefor, in writing, with the city clerk, in the form to be prescribed by the city council.

     Such application shall be accompanied by a liability insurance policy if one is required under the provisions of Minnesota Statutes, Chapter 340A.

     Section 18.That Chapter 8, Section 62, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-62. Issuance--generally.

     The city clerk shall not issue any license under this Division unless directed to do so by resolution duly adopted by the city council. No application for a license to sell intoxicating liquor shall be received or filed by the city clerk before June 15 nor after July 15. No application for a license to sell nonintoxicating malt liquor shall be received or filed by the city clerk before February 15 nor after March 15. Where a license is made available by revocation, abandonment, surrender, cancellation or for some other cause, such available license may, upon application to the city council, be reissued by the city council as determined by a resolution adopted for such purpose. Any resolution granting a license may be conditioned on final departmental approvals, payment of taxes or any other condition the council deems appropriate. The city clerk shall not issue any license until all such conditions are met.

     The alcohol, gambling and tobacco commission shall cause an investigation to be made of all of the representations set forth in the applications. Opportunity shall be given at a regular or special meeting of the alcohol, gambling and tobacco commission to any person to be heard for or against the granting of any license. After such investigation, the city council shall grant or refuse such license in its discretion; provided, that no off sale intoxicating liquor license shall become effective until it, together with any required insurance policy, has the approval of the liquor control commissioner of the state.

     The licensed premises shall have the license posted in a conspicuous place.

     Section 19.That Chapter 8, Section 67, of the Duluth City Code, 1959, as amended, be amended to read as follows:

Sec. 8-67. Transfer; modification of licensed premises or designated serving area.

     (a)  No license issued under the provisions of this Subdivision shall be assigned or transferred by the licensee, nor shall a change of address in the location of the licensed premises be permitted, unless a resolution authorizing such assignment, transfer or change of address shall have been first duly passed by the city council. A request for an assignment, transfer or change of address shall be treated in the same manner as an application for a new license under the provisions of this Chapter. Such applications shall be accompanied by a fee which shall be set in accordance with Section 31-6(a) of this Code in the case of an intoxicating liquor license and a fee which shall be set in accordance with Section 31-6(a) of this Code in the case of a nonintoxicating 3.2 percent malt liquor license. The fee shall be refunded if the application is withdrawn, or the assignment, transfer or change of address is not granted by the city council. No fee for the assignment, transfer or change of address of an off sale nonintoxicating 3.2 percent malt liquor license shall be charged when such application is accompanied by an application for assignment, transfer or change of address of an on sale nonintoxicating 3.2 percent malt liquor license;

     (b)  No licensee shall permanently expand its licensed premises or designated serving area, unless such expansion is approved by the city council. A request for such expansion shall be made in writing to the city clerk accompanied by a fee set in accordance with Section 31-6(a) of this Code. Thereafter, the matter shall be reviewed by the alcohol, gambling and tobacco commission and referred to the city council together with the recommendation of the commission.

     Section 20.That this ordinance shall take effect 30 days after its passage and publication.


STATEMENT OF PURPOSE:  This ordinance updates Chapter 8 of the City Code which regulates alcoholic beverages and the licensing of alcoholic beverage licenses. Each year city staff conduct a review of legislative changes and prepares amendments to the City Code as authorized or required by the legislature. This year a comprehensive review was also conducted to reflect the state statute prohibiting the issuance of a license containing the term “nonintoxicating malt liquor.” Sections 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 19 delete references to “nonintoxicating malt liquor” and replace those references with the term “3.2 percent malt liquor.”


Section 1 also incorporates definitions for the terms “malt liquor,” “3.2 percent malt liquor” and “wine” provided in Minnesota Statutes Section 340A.101, subds. 16, 19 and 29.


Section 2 also changes the start time of Sunday sales of 3.2 percent malt liquor from 12:00 Noon to 10:00 a.m. as authorized by Laws of Minnesota 2005, Chapter 131, Section 8.


Section 6 also creates a one day dance license.


Section 7 also authorizes a brewer who manufactures fewer than 3,500 barrels of malt liquor in a year, and who does not have an on-sale license, to sell malt liquor in 64-ounce containers commonly known as growlers. This change is authorized by House File No. 286. This section also changes the restrictions on the ability of city employees to obtain licenses by limiting the restriction to elective, executive or administrative officers and those employees charged with law enforcement functions which includes licensed peace officers, the fire marshal and the deputy fire marshal.


Section 8 incorporates prior amendments to Minnesota Statutes, Section 340A.412, subd. 13, which prohibits cities of the first class from renewing on-sale intoxicating liquor licenses that have been inactive for a one year period immediately prior to the date of renewal. It also standardizes the time period for the renewal period for all alcohol beverages licenses.


Section 9 also incorporates the statutory definition of “wine,” eliminates the reference to the definition of “wine” defined by Title 27 of the Federal Code of Regulations, and provides for the issuance of a temporary on-sale intoxicating liquor license to a brewer who manufactures fewer than 3,500 barrels of malt liquor in a year as authorized by House File No. 286.


Section 18 eliminates the time period restrictions for receipt of licenses.


Section 20 provides for the effective date of the ordinance.