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23 <br />HANDBOOK FOR MINNESOTA CITIES <br />Minn. Stat. § 340A.414, subds. Under the consumption and display law, establishments must <br />5, 6. receive a permit from the liquor control division of the state <br />Department of Public Safety. The liquor control director must <br />obtain approval from the city council before issuing this <br />permit. Permits are for one year, expiring annually on June 30. <br />The fee for such permits is currently $150, but the statutes <br />allow cities to impose an additional fee of not more than $300 <br />per year. A city may not simultaneously require a license for <br />these clubs, and may not grant bottle club licenses to <br />businesses or clubs that do not have the state permit. The city, <br />with the approval of the commissioner, may grant up to 10 <br />one -day permits to nonprofit organizations in conjunction with <br />a social activity sponsored by the city. <br />A.O.Op. 218 -h -2 (Aug. 1, Cities may, in some instances, impose more restrictive <br />1961). regulations than those in state law. For example, a city may <br />enforce anti - spiking ordinances or local regulations limiting <br />the time when such establishments may operate. Cities may <br />also pass ordinances that forbid altogether the operation of <br />such clubs or establishments within their boundaries. <br />Municipal liquor <br />Minn. Stat. § 340A.601 -.604. Any Minnesota city with a population of 10,000 or less, except <br />those that have been incorporated for less than two years, may <br />own and operate a retail dispensary with off -sale liquor, <br />on -sale liquor or both. A recently incorporated city may be <br />able to establish a municipal liquor store in less than two years <br />after incorporating if it was an urban town or major part of an <br />urban town. Subsequent changes in population do not affect <br />the ability of a city to operate a liquor store. <br />Minn. Stat. § 340A.601, subd. Once a city establishes a municipal store, all private <br />5. intoxicating liquor licensing in the city must cease, unless the <br />city has opted for split liquor, or has annexed or consolidated <br />with an area and a private liquor license holder was located in <br />the area. After the voters approve a split liquor system, cities <br />may issue on -sale licenses to hotels, clubs and restaurants. <br />344 <br />