§ 120-1. Provisions of state law adopted.

The provisions of Minnesota Statutes Chapter 340 with reference to the definitions of terms, conditions of operation, restrictions on consumption, provisions relating to sales, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of intoxicating liquor in or by a municipal liquor dispensary are adopted and made a part of this article as if set out in full.

§ 120-2. Dispensary continued.

Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I). The municipal liquor dispensary heretofore established is hereby continued for the off-sale and on-sale of intoxicating liquor. No liquor may be sold at retail elsewhere in the City or by anyone not employed in the dispensary, except that the on-sale of such liquor is permitted in clubs, hotels or restaurants as may be lawfully authorized by the City Council. No person shall consume liquor in a public park, on a public street, or in any public place other than in the municipal dispensary or in a licensed establishment or in an establishment where the consumption and display of liquor is lawfully permitted.

§ 120-3. Location; manager and other employees.

A. Location. The dispensary shall be located at such suitable place in the City as the Council determines, but no premises upon which taxes, assessments, or other public charges are delinquent shall be leased for dispensary purposes. Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

B. Manager. The dispensary shall be in the immediate charge of a liquor store manager selected by the Council and paid such compensation as is fixed by the Council. He shall furnish a surety bond to the municipality, conditioned upon the faithful discharge of his duties, in such sum as the Council specifies. The bond premium shall be paid by the City. The manager shall operate the dispensary under the Council's direction and shall perform such duties in connection with the dispensary as may be imposed upon him by the Council. He shall be responsible to the Council for the conduct of the dispensary in full compliance with this article and with the laws relating to the sale of liquor and beer.

C. Other employees. The Council shall also appoint such additional employees as may be required for the dispensary and shall fix their compensation. All employees, including the manager, shall hold their position at the pleasure of the Council. No minor shall be employed in the dispensary. In the discretion of the Council such employees may be required to furnish surety bonds conditioned for the faithful discharge of their duties, in such sums as the Council may specify. The premium on such bonds shall be paid by the City.

§ 120-4. Dispensary fund created.

A municipal Liquor Dispensary Fund is hereby created in which all revenues received from the operation of the dispensary shall be deposited and from which all ordinary operating expenses shall be paid. Any amounts it may be necessary to borrow from the general fund of the City for initial costs of rent, fixtures and stock or for operating expenses shall be reimbursed to that fund out of the first available moneys coming into the dispensary fund thereafter. Surpluses accumulating in the dispensary fund may be transferred to the general fund or to any other appropriate fund of the City by resolution of the Council and expanded for any municipal purpose.

§ 120-5. Receipts and disbursements.

The handling of municipal liquor dispensary receipts and disbursements shall comply with the procedure prescribed by law for the receipts and disbursements of the City funds generally.

§ 120-6. Audit.

The Council shall provide as soon as possible following the close of each fiscal year for an audit of the accounts of the municipal liquor dispensary for that fiscal year by the state auditor or a qualified public accountant.

§ 120-7. Prohibited business.

No business other than the sale of liquor shall be carried on in the dispensary except the retail sale of cigars, cigarettes, all forms of tobacco, food, soft drinks and beer, both on-sale and off-sale.

§ 120-8. Enforcement.

It shall be the duty of all police officers of the City to enforce the provisions of this article, to search premises and seize evidence of law violation and preserve the same as evidence against any person alleged to be violating this article, and to prepare the necessary processes and papers thereafter.

§ 120-9. Violations and penalties.

Editor's Note: Added at time of adoption of Code (see Ch. 1, General Provisions, Art. I). Violations of this article shall be punishable as a misdemeanor as provided in Chapter 1, Article III, General Penalty.

§ 120-10. Definitions.

As used in this article, the following terms shall have the meanings indicated:

BEER or NONINTOXICATION MALT LIQUOR

Any malt beverage with an alcoholic content of more than 1/2 of 1% by volume and not more than 3.2% by weight.

BEER STORE

An establishment for the sale of beer, cigars, cigarettes, all forms of tobacco, beverages and soft drinks at retail.

§ 120-11. License required.

A. Licenses. No person, except wholesalers and manufacturers to the extent authorized by law, shall deal in or dispose of by gift, sale or otherwise, or keep or offer for sale, any beer within the City without first having received a license as hereinafter provided. Licenses shall be of three kinds:

(1) Regular on-sale.

(2) Temporary on-sale.

(3) Off-sale.

B. Regular on-sale. Regular on-sale licenses shall be granted only to bona fide clubs, beer stores, exclusive on-sale liquor stores and restaurants where food is prepared and served for consumption on the premises. On-sale licenses shall permit the sale of beer for consumption on the premises only.

C. Temporary on-sale. Temporary on-sale licenses shall be granted only to bona fide clubs and charitable, religious, and nonprofit organizations for the sale of beer for consumption on the premises only.

D. Off-sale licenses shall permit the sale of beer at retail in the original package for consumption off the premises only.

§ 120-12. License applications.

Every application for a license to sell beer shall be made to the City Clerk/Treasurer on a form supplied by the City and containing such information as the Clerk/Treasurer or the City Council may require. It shall be unlawful to make any false statement in an application.

§ 120-13. License fees.

A. Payment required. Each application for a license shall be accompanied by a receipt from the City Treasurer for payment in full of the required fee for the license. All fees shall be paid into the general fund of the City. Upon rejection of any application for a license, the Treasurer shall refund the amount paid.

B. Expiration; pro rata fees. Every license except a temporary license shall expire on the last day of December in each year. Each license except a temporary license shall be issued for a period of one year, except that if a portion of the license year has elapsed when the license is granted, the license shall be issued for the remainder of the year for a pro rata fee. In computing such fee, any unexpired fraction of a month shall be counted as one month. A temporary license shall be issued for a specific period in which a special event to which the sale is incident is being held and such period shall be stated on the issue.

C. Fees.

(1) The annual fee for the regular on-sale license is $50.

(2) The annual fee for an off-sale license is $25.

(3) The fee for a temporary on-sale license $5 per day for residents and $25 per day for nonresidents of the City of Kellogg.

D. Refunds. No part of the fee paid for any license issued under this article shall be refunded except in the following instances upon application to the Council within 30 days from the happening of the event. There shall be refunded a pro rata portion of the fee for the unexpired period of the license, computed on a monthly basis, when operation of the licensed business ceases not less than one month before expiration of the license because of:

(1) Destruction or damage of the licensed premises by fire or other catastrophe.

(2) The licensee's illness.

(3) The licensee's death.

(4) A change in the legal status of the municipality making it unlawful for the licensed business to continue.

§ 120-14. Granting of license.

A. Investigation and hearing. The City Council shall investigate all facts set out in the application. Opportunity shall be given to any person to be heard for or against the granting of the license. After such investigation and hearing, the Council shall grant or refuse the application in its discretion.

B. Transfers. Each license shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. No license may be transferred to another place without the approval of the Council.

§ 120-15. Person ineligible for license.

No license shall be granted to or held by any person who:

A. Is under 18 years of age;

B. Has, within five years prior to the application for such license, been convicted of a felony, or of violating any law of this state or local ordinance relating to the manufacture, sale, distribution, or possession for sale or distribution of intoxicating liquor or beer and cannot show competent evidence under Minn. Stat. § 364.03, of sufficient rehabilitation and present fitness to perform the duties of a beer licensee;

C. Is a manufacturer of beer or is interested in the control of any place where beer is manufactured;

D. Is an alien of the City;

E. Is not of good moral character;

F. Is or during the period of this license becomes the holder of a federal retail liquor dealer's special tax stamp for the sale of intoxicating liquor at any place unless there has also been issued to him a local license to sell intoxicating liquor at such place; or

G. Is not the proprietor of the establishment for which the license is issued.

§ 120-16. Places ineligible for license.

No license shall be granted for sale on any premises where a licensee has been convicted of the violation of this article or of the state beer or liquor law, or where any license hereunder has been revoked for cause until one year has elapsed after such conviction or revocation.

§ 120-17. Violations and penalties.

Editor's Note: Added at time of adoption of Code (see Ch. 1, General Provisions, Art. I). Violations of this article shall be punishable as a misdemeanor as provided in Chapter 1, Article III, General Penalty.

§ 120-18. Term defined.

As used herein, the phrase "intoxicating liquors" shall have the definition provided for the same in Minn. Stat. § 340A.101, Subd. 14, and as the same may be amended.

§ 120-19. Special license for Sunday sales.

Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I). No person holding an on-sale intoxicating liquor license for a restaurant, club, bowling center or hotel with a seating capacity for at least 30 persons shall sell liquor on Sundays unless issued a special license for consumption of intoxicating liquor on the premises in conjunction with the sale of food between the hours of 12:00 noon and 12:00 midnight on Sunday.

§ 120-20. Period of license; fee.

The license so issued by the governing body of the City of Kellogg shall be for a period of one year and with the fee for the license to be determined by the resolution of the City Council, but to not exceed $200.

§ 120-21. Violations and penalties.

Editor's Note: Added at time of adoption of Code (see Ch. 1, General Provisions, Art. I). Violations of this article shall be punishable as a misdemeanor as provided in Chapter 1, Article III, General Penalty.

§ 120-22. Definitions.

As used in this article the following terms have the following meanings:

INTOXICATING LIQUOR

Ethyl alcohol, distilled, fermented, spirituous, vinous, and malt beverages containing more than 3.2% of alcohol by weight.

INTOXICATING LIQUOR ESTABLISHMENT

Any establishment which is a licensed premises for the sale of intoxicating liquor.

LICENSED PREMISES

Prescribed to it by Minn. Stat. § 340A.101, Subd. 15, as presently in effect and as may be amended.

§ 120-23. Consumption on premises.

It shall be a misdemeanor for a licensee of any intoxicating liquor establishment or any employee thereof to allow any person to consume alcoholic beverages on the licensed premises after 1:30 a.m. and before 8:00 a.m. on any day.

§ 120-24. Remaining on premises.

It shall be a misdemeanor for any person other than the licensee or the licensee's on-duty employees working at the time to remain on or be present on the licensed premises of any intoxicating liquor establishments after 1:30 a.m. and before 5:00 a.m. on any day.

§ 120-25. Notice.

It shall be the duty of the Kellogg City Clerk/Treasurer to provide notice of the enactment of this article by mailing a true and correct copy thereof, by first-class mail, postage prepaid, to the licensed premises existing in the City of Kellogg at the time of the enactment of this article. Any premises licensed after the enactment of this article shall be deemed to have notice by virtue of the publication of this article as required by law, and this provision shall not be construed as to require the Kellogg City Clerk/Treasurer to provide specific notice to any premises that may be licensed after the enactment of this article.

§ 120-26. Violations and penalties.

Editor's Note: Added at time of adoption of Code (see Ch. 1, General Provisions, Art. I). Violations of this article shall be punishable as a misdemeanor as provided in Chapter 1, Article III, General Penalty.