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HomeMy WebLinkAbout10/10/2011ORDINANCE COM1vIITTEE October 10, 2011 4:40 p.m. Council Chambers Roll Call: Members: Chairperson Mayor Pro Tem All Council Members Approval of Agenda, as proposed. NEW BUSINESS 1. Business and License Regulations Ordinance Update —Submitted by Aric Schroeder, City Planner. ADJOURNMENT Suzy Schares City Clerk Proposed changes to the City Code of Ordinances, Title 3 Business and License Regulations, Chapter 2 Liquor Control 3-2-1: PURPOSE: The purpose of this chapter is to provide administration of licenses and permits and for local regulations and procedures for the conduct of the sale and consumption of beer and liquor, for the protection of the safety, morals and general welfare of this community. 3-2-2: DEFINITIONS: Where words and phrases used in this chapter are defined by state law, such definitions are adopted by reference and shall apply to their use of those words and phrases in this chapter and arc adoptcd by reference. Those definitions so adopted that need further definition or are reiterated, and other words and phrases used herein, shall have the following meanings: CLUB: Any nonprofit corporation or association of individuals, which is the owner, lessee or occupant of a permanent building or part thereof, membership in which entails the prepayment of regular dues and is not operated for a profit other than such profits as would accrue to the entire membership. COMMERCIAL ESTABLISHMENT: A place of business which is at all times equipped with sufficient tables and seats to accommodate twenty five (25) persons at one time, and the licensed premises of which conforms to the ordinances of the city. GROCERY STORE: Any retail establishment, the principal business of which consists of the sale at that location of food, -or food products or beverages for consumption off the premises, where the volume of sales of such items and other products, but not including alcoholic beverages, is more than fifty percent (50%) of the total volume of all . The volume of sales of all other items, commodities and materials sold by the establishment. shall be included with thc volume of sales of bccr, and sales of beer shall not equal or exceed fifty percent (50%) of the dollar volume of all sales made by the establishment to meet thc test that food sales mutt be the principal business thereof. HOTEL OR MOTEL: A premises licensed by athc state agencydepartment of agriculture and regularly or seasonally kept open in a bona fide manner for the lodging of transient guests, and with twenty (20) or more sleeping rooms. LEGAL AGE: The legal age as defined by state lave - PERSON OF GOOD MORAL CHARACTER: Any person, as such term is defined by Chapter 123 of the Code of Iowa who meets all of the following requirements: A. He or she has such financial standing and good reputation as will satisfy the city council and the directoradministrator that he or she will comply with the Iowa Alcoholic Beverage Control Act and all other laws, ordinances and regulations applicable to his or her operations under state law. B. He or she does not possess a federal gambling stamp. C. He or she is not prohibited by the provisions of subsection 3-2-10B of this chapter from obtaining a liquor license or beer permit. D. He or she lis a citizen of the United States and a resident of Iowa, or is licensed to do business in Iowa in the case of a corporation. E. He or she has not been convicted of a felony. However, if thehis conviction of a felony occurred more than five (5) years before the application for a license or permit, and if his or her rights of citizenship have been restored by the governor, the administratordirester may determine that he or she is a person of good moral character notwithstanding such conviction. F. If such person is a corporation, partnership, association, club or hotel or motel, the requirements as set out in this definition shall apply to each of the officers, directors and partners of such person, and to any person who directly or indirectly owns or controls ten percent (10%) or more of any class of stock of such person or has an interest of ten percent (10%) or more in the ownership or profits of such person. For the purpose of this provision, an individual and his spouse shall be regarded as one person. PHARMACY: A retail establishmentdrug store in which prescription drugs and medicines are compounded and/or exposed for sale and sold at retail, or in which prescriptions of licensed physicians and surgeons, dentists or veterinarians are compounded and sold by a licensed registered pharmacist, where the volume of sales of such items and other products, but not including alcoholic beverages, is more than fifty percent (50%) of the total volume of all items, commodities and materials sold by the establishment. 3-2-3: ELIGIBILITY FOR LIQUOR CONTROL LICENSE OR BEER PERMIT: Upon meeting the requirements imposed by state law and the ordinances of this city, a person who is of good moral character, as defined by state law and this chapter, may apply for a liquor control license or a beer permit. In the case of a club, corporation„- r partnership or other entity, the officers of the club„-er corporation or entity, and the partners of a partnership, shall be persons of good moral character, as defined by state law and this chapter. 3-2-4: APPLICATION FOR LICENSE OR PERMIT: A. Investigation Of Applicant: Upon receipt of an original application for a liquor license or beer permit by the city clerk, it shall be forwarded to the chief of police, who shall conduct an investigation and shall submit a written report on the applicant as to the truth of the facts averred in the application and a recommendation to the city council as to the approval of the license or permit. It shall be the duty of the health inspector, the building inspector and the fire chief to inspect the premises to determine if they conform to the requirements of the city, and no license or permit shall be approved until or unless an approving report has been filed with the city council by such officers. B. Civil Liability: Every liquor control licensee and Class B beer permittee shall furnish proof of financial responsibility either by the existence of a liability insurance policy or by posting bond in such amount as determined by the divisiondepartment. 2 C. Application For Renewal: Upon receipt of an application for the renewal of a liquor license or beer permit, it shall be forwarded to the chief of police only, who shall conduct an investigation and shall submit a written report on the applicant as to the truth of the facts answered in the application and a recommendation to the city council as to the approval of the license or permit. D. Action By City Council: Action taken by the city council shall be so endorsed on the application and thereafter the application, fee and bond shall be forwarded to the Iowa beer division for such further action as is provided by law. 3-2-5: LICENSE AND PERMIT TERMS; SEASONAL PERMITS: All liquor control licenses and beer permits, unless sooner suspended or revoked, shall expire one year from date of issuance. Six (6) or eight (8) month seasonal licenses or beer permits may be issued for a proportionate part of the license or permit fee. No seasonal license or permit shall be renewed except after a period of two (2) months. Seasonal licensing shall be only as permitted by state regulation. 3-2-6: CONDITIONS OF LICENSE OR PERMIT: A. Investigations: An applicant for a liquor control license or beer permit, as a further condition for approval by the city council, must give consent in writing on the application, that members of the fire, police and health departments and the building inspector may enter upon the premises without warrant to inspect for violations of the provisions of state law and of this chapter. 1. No liquor control license or beer permit shall be approved for premises which do not conform to all applicable laws, ordinances, resolutions and health and fire regulations. 2. No licensee shall have or maintain an interior access to residential or sleeping quarters unless permission is granted by the state beer and liquor control directoradministrator in the form of a living quarters permit. 3. The premises for which a Class B beer permit is sought must be located within a business district or an area now or hereafter zoned as a business district and conform to the zoning requirements of the city. 4. The premises of a Class B beer permit shall, at the time of the application, continue to be equipped with sufficient tables and seats to accommodate twenty five (25) persons at one time. 5. No state liquor storc shall be located within three hundred feet (300') of a public or private educational institution unlene a lc"cer distance is specifically authorized by chapter. B. Visibility From Licensed Premises: The licensed premises of any beeFlicensee or IiqueF permittee shall be clearly visible at any hour from the outside, whether the licensee or permittee is open for business, or otherwise, and the following regulations shall be complied with as a condition for approval by the city council: 3 1 The entrance of the licensed premises which is primarily used by patrons shall have a door or window which provides an unobstructed view of the main seating and/or serving area of the licensed premises with the minimum dimensions of nine inches by nine inches (9" x 9") set into the door or window at eye level, which shall be approximately fifty six inches (56") to sixty four inches (64") above the ground level of the premises. 2. Any window presently in existence, which is mounted at eye level in an exterior wall adjoining the seating and/or serving area, shall have a minimum of nine inches by nine inches (9" x 9") of unobstructed view into the licensed premises. 3. Any licensed premises which has the serving area located within a permanent building whereby the main seating and/or serving area are not immediately accessible nor visible from a public street shall have an unobstructed opening to the main seating and/or serving area as provided in subsection B1 and/or B2 of this section. 4. The required openings as provided in subsections B1 and B2 of this section shall not be obstructed, in any fashion, to hinder clear view into the main seating and/or serving area of the licensed premises. 5. The building inspector, or designee, shall be solely responsible for the enforcement of those provisions- of this subsection B. Upon inspection, notice of noncompliance shall be sent to the holder of the liquor liccncclicensee or beer permitpermittee and to the city clerk for appropriate action in accordance with this section. 6. Compliance by the licensee or permittee with the terms and conditions of this subsection shall occur no later than the time of the renewal of the beer or liquor licensc, whichever last occurs. or permit. Failure to timely comply may result in suspension or revocation of the liquor license or permit in accordance with this chapter. C. Separate Locations For Class B Or C: Every person holding a Class B or Class C beer permit having more than one place of business wherc such beer is sold shall be required to have a separate license for each separate place of business, except as otherwise prohibited by state law. D. Nature Of License Or Permit: A liquor control license or beer permit shall be a purely personal privilege and be revocable for cause. It shall not constitute property, nor be subject to attachment and execution nor be alienable nor assignable, and in any case it shall cease upon the death of the permittee or licensee. However, the directoradministrator may, in his or her discretion, allow the executor or administrator of the estate of a permittee or licensee to operate the business of the decedent for a reasonable time not to exceed the expiration date of the permit or license. Every permit or license shall be issued in the name of the applicant and no person holding a permit or license shall allow any other person to use same. E. Transfers: The city council will, in its discretion, authorize a licensee or permittee to transfer the license or permit from one location to another within the city, provided that the premises to which the transfer is to be made would have been eligible for a license or permit in the first instance and such transfer will not result in the violation of any law or ordinance. 4 3-2-7: REFUNDS: Any such licensee or permittee, or thehis executor, or administrator of his or her estate, or any person duly appointed by the court to take charge of and administer the property or assets of the licensee or permittee for the benefit of his or her creditors, may voluntarily surrender such license or permit to the departmentdivision and when so surrendered the departmentdivision shall notify the city, and the departmentdivision and the city, or the city itself in the case of a retail beer permit, shall refund to the person so surrendering the license or permit a proportionate amount of the fee paid for such license or permit as follows: if surrendered during the first three (3) months of the period for which said license or permit was issued, the refund shall be three -fourths (3/4) of the amount of the fee; if surrendered more than three (3) months but not more than six (6) months after issuance, the refund shall be one-half (1/2) of the amount of the fee; if surrendered more than six (6) months but not more than nine (9) months after issuance, the refund shall be one-fourth ('/4) of the amount of the fee. No refund shall be made, however, for a liguer-serttrol license or beer permit surrendered more than nine (9) months after issuance. No refund shall be made to any licensee or permittee, upon the surrender of thehis license or permit, if there is at the time of said surrender a complaint filed with the departmentdivision or the city, charging him with a violation of this chapter or provisions of the Iowa Beer and LiquorAlcoholic Beverages Control Act. If upon hearing on any such complaint the license or permit is not revoked or suspended, then the licensee or permittee shall be eligible, upon surrender of thehis license or permit, to receive a refund as herein provided. But if his or her license or permit is revoked or suspended upon such hearing, he or she shall not be eligible for the refund or any portion of his or her license or permit fee. No refund shall be made for seasonal licenses or permits. 3-2-8: PROHIBITED ACTS AND CONDITIONS: No person er club -holding a iiga-Flicense or beer permit, nor thehis agents or employees of such person, shall do any of the following: A. Prohibited Interest: It shall be unlawful for any person or persons to be either directly or indirectly interested in more than one class of beer permit. B. Sales To Intoxicated Persons: Sell, dispense or give to any intoxicated person, or one simulating intoxication, any alcoholic liquor or beerbeverages. C. Closing Hours: Sell or dispense any alcoholic liquor or beerbeverages on the premises covered by the license or permit, or permit the consumption thereof, between the hours of two o'clock (2:00) A.M. and six o'clock (6:00) A.M. on any weekday, and between the hours of two o'clock (2:00) A.M. on Sunday and six o'clock (6:00) A.M. on the following Monday, however, a holder of a liquor control license or Class B beer permit granted the privilege of selling -alcoholic liquor or beer on Sunday may sell or dispense such liquor or beer between the hours of twelve o'clock (12:00) noon and ten o'clock (10:00) P.M. on Sunday. D. Sales On Credit: Sell alcoholic liquor or beerbeverages to any person on credit, except with a bona fide credit card. This provision shall not apply to sales by a club to its members nor to sales by a hotel or motel to bona fide registered guests. 5 E. Adding Alcohol To Beer: In the case of a retail beer permittee, knowingly allow the mixing or adding of alcohol or any alcoholic beverage to beer or any other beverage in or about the permittee's his place of business. F. Dancing: No dancing shall be permitted unless the licensee or permittee has first secured a dance hall license under the provisions of the ordinances of the city'-, G. Obscenity: Cause, permit, procure, counsel or assist any person who is acting as a waiter, waitress, host, hostess, dancer or entertainer on the licensed premises to: 1. Expose his or her genitals, pubic hair, perineum, anus region or pubic hair region; or 2. Expose or wear any device, costume or covering which gives the appearance of or simulates the genitals, pubic hair, perineum, anus region or pubic hair region; or 3. Comes into any physical contact with any customer, or patron; within the establishment, other than when assisting said customer or patron when entering, leaving, seating or serving. For purposes of this subsection, a person shall be deemed a waiter, waitress, host, hostess, dancer or entertainer if such person acts in that capacity without regard to whether such person is paid any compensation by the liquor control licensee or beer permittee, or by an his -agent or employee thereof. H. Obscene Pictures: Cause, procure, counsel or assist any person in showing or displaying motion pictures, slides, photographic or other printed displays within the licensed premises which depict or show the genitals, pubic hair, perineum, anus region or pubic hair region of either the male or female. I. Beer Brand Signs Prohibited: No signs or other matter advertising any brand of beeralcoholic beverage shall be erected or placed upon the outside of any premises occupied by a licensee or permittec authorizcd to sell bccr at retail. J. Consumption In Public Places; Intoxication: It is unlawful for any person to use or consume alcoholic liquors or beerbeverages upon the public streets or highways, or alcoholic liquors in any public place, except premises covered by a liquor control license, and no person shall be intoxicated nor simulate intoxication in a public place. 3-2-9: PROHIBITED ACTS INVOLVING MINORS: It shall be unlawful to: A. Employment Of Minors: Employ any person under the age of eighteen (18) years old in the sale or serving of alcoholic liquor or beerbeverages for consumption on the premises where 1 sold. B. Sales To Minors: Sell, give or otherwise supply any alcoholic beverages sF-beer to any person knowing or having reasonable cause to believe him or her to be under legal age, or 6 permit any person knowing or having reasonable cause to believe him or her to be under legal age, to consume any alcoholic beverage or beer. C. Persons Under Legal Age: No person shall sell, give or otherwise supply alcoholic liquor or beefbeverages to any person knowing or having reasonable cause to believe him or her to be under legal age, and no person or persons under legal age shall individually or jointly have alcoholic liquor or beerbeverages in his, her or their possession or control; except in the case of liquor or beeran alcoholic beverage given or dispensed to a person under legal age within a private home and with the knowledge and consent of the parent or guardian for beverage or medicinal purposes or as administered to him or her by either a physician or dentist for medicinal purposes and except to the extent that a person under legal age may handle alcoholic beverages and beer during the regular course of his or her employment by a Iiguor control -licensee or beer permittee under state law. D. Minors Prohibited From Certain Premises: 1 Policy And Purpose: It is the purpose and intent of this provision to preclude minorspersons under twenty one (21) years of age from entering or remaining in those establishments whose sale or dispensing of alcoholic beverages is more than fifty percent (50%) of the business conducted therein. Although the ultimate responsibility for the minor's unlawful presence lies with that minor, the licensee or permittee and his or her employees have a responsibility to make reasonable scrutiny of those reasonably suspected to be unlawfully present. 2. It shall be unlawful for it iecued pursuant to the Iowa Alcoholic Beverage Control Acta licensee or permittee for premises where more than fifty percent (50%) of the business conducted therein is the sale or dispensing of alcoholic beverages, and for any person employed upon such premises, to knowingly permit or fail to take reasonable measures to prevent the entry uonto such premises of any and all persons who have not yet attained the legal age for the lawful purchase and possession of alcoholic beverages. 3. It shall be unlawful for any person who has not yet attained thelegal age for_IawfuI purchase and/or possession of alcoholic beverages to enter upon such premises as are described in subsection D2 of this section except as provided for herein. 4. The provisions of subsection D2 of this section shall not apply in the following circumstances: a. The underage minor is an employee of the licence holderlicensee or permittee, or performing a contracted service with respect to said premises. b. The underage person is accompanied by a parent, legal guardian or spouse who is of legal age for the purchase and/or possession of alcoholic beverages. c. The underage minor is on the premises during a time that the licensee or permittee has, in accordance with a written notice and plan given in advance to the chief of police, suspended the dispensing of alcoholic beverages on the licensed premises or on a clearly delineated part of the licensed premises operated under a differentiating 7 trade name. It shall be the strict duty of a licensee or permittee who authorizes such underage minor to be on the licensed premises pursuant to such plan, and of all persons employed with respect to said premises, to prevent the underage minor from consuming and/or possessing alcoholic beverages on said premises. Police officers shall be admitted upon the premises at any time to monitor compliance with all applicable laws. Failure to comply with that duty, whether knowingly or otherwise, shall be punishable as a violation of this subsection. 5. It shall be the duty of the licensee or permittee to display in a prominent place a printed sign, no smaller than eight inches by ten inches (8" x 10") in size, boldly printed and reading as follows: WARNING TO MINORS: You are subject to punishment under the Waterloo city code if you are on the premises without your parent or legal guardian or spouse or if you attempt to possess and/or purchase any alcoholic beverages. 3-2-9A: PREMISES CONTROL: A licensee or permittee shall comply with the following requirements: A. Employ reasonable methods to monitor the premises and all parking lots, streets, alleys and sidewalks abutting such premises to prevent loitering, littering, violation of noise ordinances, or consumption of alcoholic beverages in public places by the patrons of such business. If such activity is observed, then the owner or manager shall promptly report such violations to the police department. B. Post signs on the exterior of the business premises advising patrons to comply with ordinances against loitering, littering, public alcohol consumption, and excessive noises. No less than one sign shall be posted, conspicuously and in a manner calculated to come to the attention of business patrons, on each side of the building along which patrons can reasonably be expected to pass. C. No less than daily on each day that the premises is open for business, pick up and properly dispose of all litter on the property and any area within fifty (50) feet thereof that is not apparently protected against public entry by means of a wall, fence, gate, hedge or similar barrier. 3-2-10: SUSPENSION AND REVOCATION: A. Material Facts For Suspension And Revocation: 1 The city may suspend a license or permit issued pursuant to this chapter for a period not to exceed one year, revoke the license or permit, or impose a civil penalty not to exceed one thousand dollars ($1,000.00) per violation. Before suspension, revocation or imposition of a civil penalty, the licensee or permit holderpermittee shall be given written notice and an opportunity for a hearing pursuant to state law. 8 2. A license or permit issued under this chapter may be suspended or revoked, or a civil penalty may be imposed, on the licensee or permit holderpermittee by the city for any of the following causes: a. Misrepresentation of any material fact in the application for such license or permit. b. Violation of any of the provisions of this chapter or applicable zoning regulations. c. Any change in the ownership or interest in the business operated under a Class A, Class B or Class C license, or any wine or beer permit, which change was not previously reported to and approved by the local authority and the state. d. An event which would have resulted in disqualification from receiving such license or permit when originally issued. e. Any sale, hypothecation or transfer of the license or permit. f. The failure or refusal on the part of any licensee or permittee to render any report or remit any taxes to the division under this chapter when due. q. Violation of the terms or conditions or anv agreement entered into with governing authority with respect to a license or permit. 3. A criminal conviction is not a prerequisite to suspension, revocation or imposition of a civil penalty pursuant to this section. The city shall notify the division in writing of the action taken and shall notify the licensee or permitlicense holder of the right to appeal a suspension, revocation or imposition of a civil penalty to the division. Civil penalties imposed and collected by the city under this section shall be retained by the city. 4. The city may suspend any retail wine or beer permit or liquor control license for a violation of an ordinance or regulation adopted by the city. 5. When a liquor license or wine or beer permit is suspended, after a hearing as a result of violations of this chapter by the licensee; or permittee, or the licensee'shis or pPef-m-itteelsher agents or employees, the premises which were licensed by thesubiect to a license or permit shall not be relicensed for a new applicant until the suspension has terminated or time of suspension has elapsed, or ninety (90) days have elapsed since the commencement of the suspension, whichever occurs first. However, this section does not prohibit the premises from being relicensed to a new applicant before the suspension has terminated or before the time of suspension has elapsed or before ninety (90) days have elapsed from the commencement of the suspension, if the premises prior to the time of the suspension has been purchased under contract, and the vendor under that contract has exercised the person's rights under Iowa Code chapter 656 and sold the property to a different person who is not related to the previous licensee or permittee by marriage or within the third degree of consanguinity or affinity and if the previous licensee or permittee does not have a financial interest in the business of the new applicant. As to any applicant, licensee or permittee that is not a natural person, the limitations of this subsection shall apply with reference to each 9 natural person who is required to be a person of good moral character under section 3- 2-2 of this chapter. 6. If the cause for suspension is a first offense violation of Iowa Code section 123.49(2)(h), or subsection 3-2-8D of this chapter, the city shall impose a civil penalty in the amount of three hundred dollars ($300.00) in lieu of suspension of the license or permit. The city shall retain civil penalties collected under this subsection if the proceeding to impose the penalty is conducted by the city. B. Effect Of Revocation: Any liquor control license , rmittee or beer permittee whose license or permit is revoked under this chapter shall not thereafter be permitted to hold a liguer-eeatrel-licensc, wine permit or beer permit in the state of Iowa for a period of two (2) years from the date of revocation. A spouse or business associate holding ten percent (10%) or more of the capital stock or ownership interest in the business of a person whose license or permit has been revoked shall not be issued a liquor control license, wi .e rmit or beer permit, and no liquor control license, wine permit or beer permit shall be issued which covers any business in which such person has a financial interest for a period of two (2) years from the date of revocation. If a license or permit is revoked, the premises which had been covered by the license or permit shall not be relicensed for one year. C. Appeal And Hearing: When the city imposes an administrative sanction or disapproves a license application, the licencccapplicant may appeal the city's action to the Alcoholic Beverages Divicion of the state of lowadivision. The appeal must be in writing and must be filed with the division within twenty one (21) days from the date that the'i�eapplicant was notified of the city's action. 3-2-11: PENALTIES: A. Any licensee, permittee or person violating any of the provisions of this chapter shall be subject to a fine of one hundred dollars ($100.00) for the first offense, two hundred fifty dollars ($250.00) for the second offense, and five hundred dollars ($500.00) for each subsequent offense or imprisonment of thirty (30) days. Repeated violations may result in the suspension and/or revocation of the licensee's or permittee's license. B. The conviction of any liquor control licensee or beer permittee of a violation of any of the provisions of this chapter may, subject to subsection C of this section, be grounds for the suspension or revocation of the license or permit by the city. However, if any liquor control licensee is convicted of any violation of Iowa Code section 123.49, subsection (2), paragraphs a, d or e, or if any beer permittee is convicted of a violation of Iowa Code section 123.49 subsection (2), paragraph a, all -of the Iowa Alcoholic Beverage Control Act, the liquor control license or beer -permit may be revoked and upon revocation shall immediately surrender the liquor control license or beer permit, and the bond of the licensee or per -wit helderpermittee shall be forfeited to the department of commercedivision. C. If any licensee, beer or permittee, or anv employee of thee licensee or permittee, is convicted of a violation of subsection 3-2-9B of this chapter, or a retailClass B beer permittee is convicted of a violation of subsection 3-2-8E of this chapter, the city may, in addition to the other penalties fixed for such violations by this section, assess a penalty as follows: 10 1. Upon a first conviction, the violator's license or beer permit may be suspended fora period of fourteen (14) days. 2. Upon a second conviction within a period of two (2) years, the violator's liquor control license or beer permit may be suspended for a period of thirty (30) days. 3. Upon a third conviction within a period of three (3) years, the violator's liquor control license or beer permit shall be suspended for a period of sixty (60) days. 4. Upon a fourth conviction within a period of three (3) years, the violator's liquor control license or beer permit shall be revoked. 11