Licensing Ordinance Amendments City Code Chapters X and XII

April 12, 2010

CHAPTER X

General Business License Provisions

New Section 1003 Background Investigations Purpose of ordinance:

In order to utilize the BCA’s criminal database for background investigations, the BCA requires a local ordinance

Types of background investigations: Employment Licenses

Section 1003 – Background Investigations Section 1003.03 –

Employment All applicants Current employees

(ability, not requirement)

Volunteers who work with Vulnerable adults Children

Unless Asst. City Mgr determines it is unnecessary

Section 1003.05 – Licenses

Sexually-Oriented Business Gambling Liquor Massage Pawnbroker/Precious Metal Firearms range Carnivals Car Sales/Rentals Peddlers, Solicitors Rental Evaluators/Rental

Dwellings Tattoo/Body Piercing Tobacco Ultimate Wrestling

Section 1003 – Background Investigations Requirements for both categories:

Written authorization from applicant/employee/licensee

BCA data must be kept at the PD PD will release a summary of the findings to parties

who need to know and destroy the BCA data Reasons for denial

Conviction of a crime (punishable by jail) in the last 5 years that is related to the job or license (1003.03 b and 1003.05 b)

Material misrepresentation on the application (1005.05 a (2)) Not of good moral character (1005.05 a (3))

Must give applicant/licensee notice of basis for denial and ability to appeal the denial

Section 1005 – Licensing Procedures Overview:

Add a process to address when a business conducts a licensed activity without a license

Move, eliminate, and add appropriate licenses to specific categories

Clarify the documents needed for a completed application

Provide criteria for the Police Chief to recommend denial Change insurance coverages Clarify fees related to refunds, late fees, pro-rated fees Add a Provisional License Change the renewal date to 30 days prior to its

expiration Provide a clearer hearing process for approval, denial,

revocation or suspension

New – Section 1005.01 b Activity conducted without a license Remedies available for when a licensed activity

is conducted without a license: Not approve a license until the business pays the

late fee Criminal citation Administrative citation Post a Cease and Desist Order

If it is an existing business who failed to renew, then provide business with 20 days’ notice to Cease and Desist. If fail to renew, then City can post the Order at the end of the 20 days.

If new business, immediately post with an Order. If licensed activity is continued, each day is a new violation and can pursue criminal or administrative citations

Section 1005.03 subd. 1 Licensed Businesses Eliminated the following licenses:

Skating Rinks Theaters Public Dances Taxicabs

Added the following licenses: Dangerous Dogs Precious Metal Dealers

Moved the following license: Tree Removal from Commercial and Service to Building

and Related Trades Other changes made to clarify existing practices

(i.e. Sidewalk Installation receives a Masonry/Sidewalk license)

Section 1005.03 subd. 1 (cont.) Intoxicating and 3.2% Malt Liquor

Intoxicating Liquor Off-sale On-sale Outside Service (patio) Sunday Wine Temporary On-sale Temporary Outside Service

3.2% Malt Liquor Off-Sale On-Sale Outside Service (patio) Temporary On-Sale Temporary Outside Service

Section 1005.05 subd. 1-4 The Application Adding:

Person must provide Social Security Number

Businesses must provide federal tax ID and MN employer ID number

Personal business license must provide written permission to conduct activity at the location

Eliminating: Partnership must

provide tax returns for previous 2 years

Requirement for plot plan

Requirement for preliminary building plans

Requirement for a Cert. of Occ.

Section 1005.05 subd. 5 Background Investigations Added clarifying language

If applicant is applying for more than one license and each license requires a background investigation (tobacco, liquor), shall only pay one personal fee and one business fee

Applies to all Initial and Renewal applications Gives Police Chief criteria to recommend denial

Section 1005.05 subd. 6 - Insurance

Removed Auto Liability Insurance (covered by State Statute)

Currently only required for trash haulers

Section 1005.05 subd. 7 – License Fees Changes:

Refunds – No refunds, unless approved by the Council Late Fees – If no application submitted 30 days prior to

expiration of existing license, then must pay a late fee equal to 50% of the license fee (currently it is 15 days)

Pro-Rated – (currently no pro-rating is allowed) Only licenses that require continuous monitoring throughout

the license term will be allowed to pro-rate a license for a partial year

The Council may find unique circumstances in particular cases for exceptions

Add a Provisional License fee – Additional fee for this special type of license, set on a case-by-case basis

Sections 1005.07 and 1005.09 1005.07 – Application

Submission & Renewal Renewal Date to submit

an application changed from 15 to 30 days prior to expiration and is consistent with initial applications

Moved “Late Fees” and “Activity Begun Without a License” to other sections

1005.09 – Application Consideration - Repeal This section involving

the hearing approval process was wholly incorporated into the revised section at 1005.25, which now addresses approval, denial, suspension and revocation

Sections 1005.11,1005.19, 1005.21, 1005.23 Section 1005.11 – changed to be consistent

with the background investigation criteria Section 1005.19 – Clarified that licenses are

non-transferable person-to-person or person-to-business but are transferable to a new location

Section 1005.21 – repeal. We do not currently compile, obtain or review information on a manager of a licensed activity

Section 1005.23 – Added the specific licenses for which a pre-license inspection is required

Section 1005.25 – License Hearing Changes to clarify and articulate the approval

process versus the denial, suspension or revocation process Subd. 1- New and renewal applications

City Staff makes a recommendation Council takes action, typically on consent agenda Options for Council:

Approve Deny (then requires a subd. 2 hearing) Approve a Provisional License - New Approve a license with conditions - New

Section 1005.25 subd. 1c & 1d - New

Provisional License License with Conditions

Existing business 3 violations of City Code

or State Statute within preceding 12 months (public nuisance)

Council approves a mitigation plan

License term coincides with regular license term

Council sets an additional fee based on the level of monitoring that will be required

Existing or new business

Reasonable conditions may be added to address particular concerns (parking, hours of operation, lighting, noise)

Section 1005.25 subd. 2 Grounds for denial, revocation or suspension

Many provisions were clarified to be consistent with other sections

Added the following reasons: If applicant is delinquent on any city fees If applicant has been found guilty of professional

misconduct If a background investigation finds that licensee would

be a menace to the public If licensee has violated a condition of a Provisional

License If the activity was conducted without a license Other good cause (catch-all)

Section 1005.25 subd. 3 - 6 Subd. 3 – Temporary Suspension – added “designee” to

allow ALJ or some other authority to take action Subd. 4 – Notice – clarified language that requires 20

calendar days’ notice, and indicating where notice should be served

Subd. 5 – Hearing – same change as in Subd. 3 Subd. 6 – Final Decision – Articulates the actions that

may be taken at a hearing: No action Add conditions to the license Convert it to a Provisional License Suspend Revoke Deny

Other

Repeal 1100.07 – Public Dances Repeal 1155 – Taxicabs Recommend ordinance be adopted by

summary publication to avoid expensive publication fees for such a lengthy ordinance

Chapter XII

Intoxicating and 3.2% Malt Liquor Licenses

Section 1200 – Intoxicating Liquor Overview:

Change sections to be consistent with State Statutes

Consolidate On-Sale licenses from 3 categories into 2

Change Seasonal Outside Service Licenses to the on-going Outside Service Licenses for patios

Eliminate duplicative processes between zoning and licensing

Eliminate redundancies in various provisions of the City Code and State Statutes

Change penalty provision to reflect liquor violation sanctions adopted by the Council

Section 1200.04 subd. 1 – On-Sale

Old Ordinance New Ordinance

No more than 20 3 categories:

1: (11 or more) Restaurants with at least 40 seats, 3,500 sq. ft, 55% gross income from food

2: (6 or more) Restaurants that prepare and serve food

3: (up to 3) Taverns Reduced by attrition

No more than 20 (but no limit on Clubs, theaters, hotels and bowling centers and restaurants)

2 categories: 1: Clubs, theaters,

hotels, bowling centers, and restaurants (def. as one that prepares and serves food)

2: (up to 3) Restaurant with limited food menu selection Reduced by attrition

Section 1200.04 subd. 2 – Off-Sale

Eliminated the off-sale liquor tax Eliminated reduction in the license fee for

employee training, since it is a condition of approval of the license

Added a $100 reduction in the license fee for the installation of a digital video security system

Section 1200.04 subd. 5 Outside Service

Eliminated all redundancies with zoning requirements

Added that a conditional use permit for outdoor seating is required

Eliminated the ability to revoke with 3 days’ notice, since any revocation would be required to follow the process outlined in Chapter X

Section 1200.04 subd. 6Temporary On-Sale

May be issued to any Club, or charitable, religious or non-profit organization For consumption on the license premises only In connection with a social event sponsored by the

licensee When liquor sales will be made only to members

and guests New – Added that an On-sale licensee may be

issued a temp. on-sale license to dispense liquor at an event being held at a sports facility owned by the City

Section 1200.04 subd. 7 Temp. Outside Service - New

May be issued to an On-Sale licensee, Club, or charitable, religious or non-profit organization to dispense liquor off-site at a community festival Subject to the following requirements:

Specify date, time and location Location must be compact and contiguous Location must be separated from the general public Location may not encroach into the ROW

Must provide written consent from property owner of location

Must provide written consent of 75% of residential property owners within 350 feet

Cannot reduce required number of off-street parking spaces No CUP is required, thus the extra provisions

Sections 1200.05, 1200.09, 1200.11, 1200.13 1200.05 – Persons Ineligible – eliminated

statutory redundancies 1200.09 – Conditions – Added ability for

removal of wine from restaurants, pursuant to State Statute, eliminated statutory redundancies, simplified closing hours (without changing intent), added that off-site storage is prohibited for intoxicating liquor licenses

1200.11 – Repeal – Transfer of licenses is covered in Chapter X

1200.13 - Repeal – Certain Conduct prohibited is covered in other sections of the City Code related to Sexually-Oriented Businesses

Section 1200.17 – License Penalties

Removed sections related to the previous penalties for liquor license violations and replaced the language to reflect the Resolution that was adopted by Council last fall regarding the imposition of civil penalty sanctions for liquor establishments

Section 1210 – 3.2% Malt Liquor Overview:

Terminology change from “non-intoxicating liquor” to “3.2% Malt Liquor” pursuant to State Statutes

Made many sections consistent with Intoxicating Liquor

Eliminate redundancies in various provisions of the City Code and State Statutes

Add Outside Service License and Temporary Outside Service License

Change penalty provision to reflect liquor violation sanctions adopted by the Council

Section 1210.03 – License Types Subd. 1 – On-Sale: Added bowling centers and

golf courses (statutory) Subd. 2 – Off-sale: no change Subd. 3 – Temp. On-Sale

May be issued to a Club, or charitable, religious or non-profit organization for consumption on the licensed premises and in connection with a social event

Subd. 4 – Outside Service – New – Same requirements as for Intoxicating Liquor

Subd. 5 – Temp. Outside Service – New – Same requirements as for Intoxicating Liquor, except that consent from neighboring property owners is not required

Other

Remaining sections are changed to be consistent with State Statutes and reduce redundancies

Section 1210.09 – Hours of Sale – changed to reflect that state law requires that hours of sale must be the same for Intoxicating and 3.2% Malt Liquor

Section 1210.15 – License Penalties – changed to reflect the new civil penalty sanctions for liquor establishments

Recommend ordinance be adopted by summary publication to avoid expensive publication fees for such a lengthy ordinance

Action Steps

Both ordinances on Council agenda for 1st Reading tonight If no substantive changes, may move forward with 1st

Reading If substantive changes, may continue one or both

ordinances to next meeting Will be published for public hearing and 2nd

Reading Minor modifications (non-substantive) will be

made between readings to adjust terminology and assure consistency throughout the ordinances