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Mr. Joel R. Hanson <br />June 9, 1994 <br />Page Two <br />revoked, or a civil fine be imposed, which may not exceed <br />$2,000.00 This statute is clearly applicable since the <br />ordinance which was violated, section 703.104(3) clearly relates <br />to alcoholic beverages and establishments serving alcoholic <br />beverages. <br />Under Little Canada Section 703.100(1), every license is <br />granted subject to all applicable ordinances and state law. In <br />addition, Little Canada has adopted an ordinance incorporating <br />the provision of the state law, which is found in section <br />703.170, entitled "Suspension and Revocation" which provides, in <br />part, as follows: <br />"The Council shall either suspend for up to 60 days or <br />revoke any intoxicating liquor license, or impose a civil <br />fine not to exceed $2,000.00, for each violation upon a <br />finding that the licensee has failed to comply with any <br />applicable statute, regulation, or ordinance relating to <br />alcoholic beverages. Except in cases of failure of <br />financial responsibility, no suspension or revocation shall <br />take effect until the licensee has been afforded an <br />opportunity for a hearing...." <br />As a result, the Little Canada ordinance imposes the same <br />mandatory procedure as state law and provides for either a <br />suspension of the license for a period not to exceed 60 days, <br />revocation of the license, or the imposition of a fine, not in <br />excess of $2,000.00, for each violation. <br />Counsel for Mr. Engelsma and Kraus - Anderson Bowling and <br />Entertainment Center, Inc. argued vehemently throughout these <br />proceedings that Mr. Engelsma and the corporation were not <br />responsible because they did not have actual knowledge of these <br />violations. At a pretrial hearing held before Judge Roland <br />Faricy on February 11, 1994, these arguments were rejected by <br />the Court. A copy of the transcript of the proceedings from <br />February 11, 1994 relating to that issue is also enclosed for <br />your information and convenience. The lack of knowledge of <br />corporate officers or the corporation itself of the unlawful <br />activities was not a defense to the code violations nor does it <br />result in any exception to the application of state statutes or <br />city ordinances relating to the suspension or revocation of <br />liquor licenses. <br />Both state law and Little Canada ordinance provide for <br />mandatory action by the City Council. The severity of the <br />disciplinary action to be taken is entirely within the <br />Page 3 <br />