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FEB -2E -1991 15:50 FROM SIdEENEY & BORER Mr. Joel R. Hanson February 22, 1991 Page Two TO LITTLE— CRNADA P. 03%25 The name of the license has been changed in order to prevent confusion with the "On -Sale B Tavern" licenses to be issued under the proposed ordinance. 6) Sections 702.070 (9) and (10), and Section 703.100 (8) and (9) have been revised in a manner consistent with the provisions of proposed Chapter 706. Several other issues have been raised relating to the proposed ordinance. Since these issues are matters of policy for the Council's determination, 1 have not revised the proposed ordinance as to these issues. License fees may be set by resolution, which would avoid the necessity of revising the Liquor and Beer Ordinance every time those fees are changed. The proposed ordinance should be changed to provide for the setting of license fees by resolution if the Council wishes to exercise this option. Please note that Minnesota Statute §340A.408, Subdivision 3a requires that any increase in license fees must be accompanied by mailed notice to all affected licensees at least 30 days before the date set for the public hearing. Under the present ordinance, nonintoxicating malt liquor establishments must be evacuated by 1 :30 a.m. The existing ordinance, however, does not directly address the question of when patrons must evacuate an intoxicating liquor establishment. Section 703.080 of the existing ordinance, and Section 703.140 (3) of the proposed ordinance provide that "no 'On -Sale' licensees shall permit any person to consume any liquor on his premises except within the hours when the sale of such liquor is permitted." Although this provision expressly prohibits the consumption of alcohol after 1:00 a.m., it does not address the requirement that the intoxicating liquor establishment be evacuated. State law is silent on this issue, and the Department of Public Safety takes the position that a municipal ordinance is necessary to regulate the evacuation of the premises of intoxicating liquor licensees. The existing and proposed ordinance includes language requiring that liquor be served on Sunday "only with meals and only to people seated at tables." This requirement is more extensive than State law which requires that the sale of intoxicating liquor for consumption on the premises be "in conjunction with the sale of food." Since the Council is Page 2