12-26-1990 Council Agenda - Laserfiche WebLink

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DEC -21 -1990 12 :54 FROM SWEENEY z"\ BORER Mr. Joel R. Hanson December 21, 1990 Page Two TO LITTLE - CANADA P.O3 /24 to business qualifying for either an "On -Sale A Restaurant " or "On -Sale B Tavern" license. Chapter 704 covers special on -sale wine licenses, which are covered in the present ordinance under Chapter 703.170. The present fee for an on -sale wine license under the existing ordinance is $100.00. State law allows a license fee of up to 1/2 of the license fee for an on -sale intoxicating liquor license, which in this case would allow a fee of up to $1,125.00. In your memo to the City Council on June 22, 1990, you listed the following four (4) issues to be addressed in the revision of the licensing ordinance: (1) Bonding requirements; (2) Suspension and revocation procedures; (3) Sale of strong beer in conjunction with a wine license; and (4) Liquor liability for special events. The enclosed ordinance reflects conclusions as to each of these issues. First, the State Legislature eliminated the requirement of a bond for liquor licenses during the 1989 Legislature. Minnesota Statutes §340A.412, Subdivision 1, previously required a bond for all intoxicating liquor licenses, but was repealed. Our conclusion is that a bond requirement is of little or no benefit, especially in the amounts presently provided for in the Ordinance. It remains within the discretion of the City Council to require such a bond. However, we believe that requiring that all liquor licensees are properly insured is of far greater significance. Revocation or suspension procedures are presently provided for in Chapter 703.150. The procedures for suspension and revocation, and the possible penalties for violating the conditions of the license are set forth in Chapter 702.110 and Chapter 703.180. Please note that I have incorporated into the revocation and suspension procedures an automatic revocation or suspension upon the lapse of required dram shop insurance. We do not recommend the inclusion in the Ordinance of detailed procedural requirements. A licensee is generally entitled to a hearing before the City Council prior to revocation or suspension and such a revocation or suspension must be based upon a violation of one of the conditions of the license, as set forth in Sections 702.070 and 703.100. Page 51