273599 WH17E - CITV CLERK � •
PINK - FINANCE (`jI OF AINT PALTL Council ��35�9�.
CANARY -DEPARTMENT File NO.
BLUE -MAVOR
• '��L. /
' � Ce Ordinance N 0.
Presented By "
Referred To C mittee: Date
Out of Committee By Date
An ordinance repealing the multiple
ownership prohibition for on-sale
liquor licenses.
THE COUNCIL OF THE CITY OF SAINT PAUL DOE5 ORDAIN:
Section 1.
That Section 308.08 of the Saint Paul Legisladive Code is
amended to read as follaws:
308.08. One License Only. Not more than one "off
sale" retailer ' s license shall be directly or indirectly
issued to any one person or for any one place in this
city, nor shall any retailer' s '-e�e-sa�e-' e�+ "off sale"
license be directly or indirectly issued for any place
for which a license of another class has been granted.
It shall not be a violation of this section for a person
who owns, directly or indirectly, or who has an interest
in, any intoxicating liquor license in this city, addi-
tionally to own directly or indirectly or to have an
interest in one or more corporations owning or operating
� a hotel holding an intoxicating liquor license in con-
nection therewith, provided that such hotel shall have
at least 150 or more rental units.
Section 2.
This ordinance shall take effect and be in force thirty (30)
days from and after its passage, approval and publication.
COUI�ICILME[V Requested by Department of:
Yeas Nays
��r mGm��� In Favor
Hozza .
Hunt �
Levine Against BY
M
owalter
Tedesco SEP 13 1979 Form Approved by City Attorney
opted by Counci . Date ��
Certified P d b Coun il Secreta BY � ' '-"',`
�
By
Approve ayor: Da e P 1 4 19�9 Approved by Mayor for Submission to Council
By By
vu�usNEO SEP 2 2 1979
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;..�.,�,T Y���Lr,� C I TY �57� A U L
-�� � � '��'� OFFICE OF THE CITY ATTORNEY
>o �, �;/ _
�..'� iiu�i��ii�ii �=
, � EDWARD P. STARR, CITY ATTORNEY
,.,. ,; 647 City Hall, Sai�t Paul,Minnesota 55102
, ,, 612-298-5121
GEORGE LATIMER
MAYOR
June 18, 1979 RC�j D
� �
Councilman Ron Maddox
JUN 21 1979
703 City Hall
COUNCfL1l1AN
Saint Paul, Minnesota 55102 f'ON NiAQDOX
Dear Mr. Maddox: -
Yt�u,r,,raqu±est �or an opinion froaaa this o�f��e canc�rnfng the muI-
tiple v�iership of liquor li.censes has been-ref�rred to� t�e n��a�
siq�ed_for response. The facts are briefly that M. S. � 340.13,
Subd. 3, prohibits the City from issuing more than one intoxicat-
ing liquor license directly or indirectly to any one person. The
City of Saint Paul has an ordinance, Sec. 308.08 of the Legislative
Code, which prohibits the City from issuing to any one person
more than one intoxicating liquor license. The Legislature
amended M. S. § 340. 13, Subd. 3 (S. F. 521) , to read as follows :
Subd. 3. �IMITATIONS ON A LICENSE ISSUED TO A PERSON
OR PLACE: PENALTY,J No more than one off-sale intoxicat-
ing liquor license shall be directly or indirectly issued
to any one person or for any one place in each municipal-
ity. It is a gross misdemeanor for any person, partner-
ship, or corporation to knowingly have or possess a direct
or indirect interest in more than one off-sale license in
each municipality and upon conviction therefor the govern-
ing body of such municipality may immediately revoke all
licenses in which such person, partnership or corporation
has an interest. The term "interest" includes any pecun-
iary interest in the ownership, operation, management, or
profits of a retail liquor establishment, but does not
include: bona fide loans; bona fide rental agreements;
bond fide open accounts or other obligations held with or
without security arising out of the ordinary and regular
course of business of selling or leasing merchandise,
fixtures or supplies to such establishment; an interest
in a corporation owning or operating a hotel but having
at least 150 or more rental units holding a liquor li-
cense in conjunction therewith; or 10 percent or less in-
terest in any other corporation holding a license. A
"\�J
. �c�s��
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Ron Maddox
Page Two
June 18, 1979
person who receives moneys from time to time directly or
indirectly from a licensee, in the absence of a bona fide
consideration therefor and excluding bona fide gifts or
donations, shall be deemed to have a pecuniary interest
in such retail license. In determining "bona fides" the
reasonable value of the goods or things received as con-
sideration for any payment by the licensee and all other
facts reasonably tending to prove or disprove the exis-
tence of any purposeful scheme or arrangement to evade the
prohibitions of this subdivision shall be considered.
The amendment becomes effective August 1, 1979. T'he thrust of
the amenc�nent effective August l, 1979, is to prohibit muI.tiple
o�wnership of off-sale liquor licenses.
Your question is whether the State legislation amending $ 340.13,
Subdivision 3, by i.mplication repeal.s Section 308.Q8 of the Saint
Paul Leqislative Code. The answer is NO.
The legal effect of S. F. 521 is to prohibit multiple awnership
of off-sale liquor establishments within a municipality. The leg-
islation is silent as to multiple awnership of on-sale liquor
establishments within a municipality. By implication, hawever,
since multiple ownership of on-sale l�:c�uor establiahment is not
prohibited it is permissibl�e.
Nonetheless, municipalities may regulate by ordinance in the exer-
cise of a police power as long as the ordinance is in harmony
with State statutes. The City cannot authorize what a statute
forbids or forbid what a statute expressly permits. Power v.
Nordstrom, 150 Minn. 228, 184 N.W. 967. Since the Legislature
did not expressly permit multiple ownership of on-sale liquor
establishments, Section 308.08 of the Saint Paul Legislative Code
is still valid.
Furthermore, in the area of liquor regulations, the State statutes
are the upper limit with respect to permissibility. Pursuant to
M. S. � 340.11, Subd. 17, the Legislature has specifically granted
��P�.7�
. , .
� . . � � ;��7���9
Ron Maddox
Page Three
June 18, 1979
to municipalities the power to impose by ordinance regulations on
the sale of liquor more restrictive than State statute. Section
340.11, Subd. 17, of Minnesota Statutes reads as follows:
"Municipal Restrictions. Any local authority shall have
power to impose further restrictions and regulations
upon the sale and possession of intoxicating liquor
within its limits. "
In conclusion, Section 308.08 of the Saint Paul Legislative Code
prohibiting the multiple ownership of intoxicating liquor estab-
lishments is the controlling law withir,�•.the City of Saint Paul
until amended or repealed. "�Y
f,
Respectfully submitted,
�
G-�,--- , -
TERRENCE J. GA Y /y
Assistant Cit torney
TJG:er
cc:Council of the City of Saint Paul
Mayor George Latimer
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CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM
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Au st 9 9
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TO• David Hozza Council P�asident
� `� David H, Houa
FRQM: Maureen L. McAvey��V\
SUBJ�CT: Lic�or Licenses/Change in State Law
As you are probably aware the State Legislature this year am�ended Minnesota Statute
10.5.340.13, Subdivision 3 (Senate File #521) which prohi.bits multiple ownership
of off-sa.le liquor licenses. The legislation is silent as to multiple awnership
of on-sale establishments within the maznicipality. By implication, since
irnultiple ownership of on-sale licenses is not prahibited, it is nPrm;ssible. This,
at least, is the apinion of Terry Garvey frcan the City Attorney's office. I called
Mr. Garvey relative to this issue follawing some discussion which City staff had
regarding downtaun develognent, the need for additional liquor licenses and the
problans atta.ched to multiple ownership of on-sale liquor licenses. Mr. Garvey
indicated at that time that he had prepared. some legislation for Councilm�n Maddox
whic,h would bring the City's legislation into confornnarice with the state legislation
relative to this matter. Since Mr. Maddox was in ownership of a liquor establish�nt
he, apparently, expressed some caricern to Mr. Garvey regarding an apparent conflict
of interest in changing liquor licensing laws while he awned an ari-sale liquor
establishment. I raised the point simply because we have had several inquiries
frocn develapers who wish to do dc.xantawn develognerit but may currently ha.ve a
liquor license in another pa.rt of tawn. In several cases, these developers wpxe
aware of the proposed change in state law and were raising the question regarcling
how this might affect liquor laws within St. Paul. Since all of the legal vx�rk
has been dc,ne by Mr. Garvey relative to this point and a proposed ordinance has
been drafted by Mr. Garvey, I would like to pursue this matter further and see
if we might be able to put this on the City Council agenda and bring the City law
in conforniance with the state law.
I would be happy to m�eet with you and/or any manbers of the License Cannittee when
you think it wr�uld be appropriate, or to answer any questions you might have
relative to this issue.
cc: Gary Stout
Doug Ford
Jim Bellus
Bill Patton
MLM/edl
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i�s�s
Y St. Pau R� �
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On-Sale Liquor Dealers �
Council President
Association Inc. Davicl H. Houa
SECRETARY: RINDA M. WILLIAMS - 345 WABASHA AVE. - ST. PAUL, MINNESOTA 55102 TELEPHONE 222-5222
August 21, 1979
Councilman David Hozza
City Hall
Court House
St. Paul, Minnesota 55102
Dear Sir:
During the last legislative session, a law was passed
allowing multiple ownership of liquor licenses. In view
of this state decision we, the Board of Directors of The
Greater St. Paul Area On-Sale Liquor Dealers Association
urge the City Council of St. Paul to take the necessary
action to allow this law ta become part of our cities
licensing procedure by allowing a maximum of two licenses
per individual.
We hope that this option can be excercised as soon as
possible.
Sincere ,
i�,�
Fred Primol��`"'
Presiclent
FP:rw
OFFICERS DIRECTORS
FRED D. PRIMOLI FRANK BELGEA DIST. #1 AL HAFNER DIST. #6 VERN LANDREV[LLE
PRESIDENT SECRETARY DIST. #2 JOE PERKOVICH DIST. #7 GENE BEAULIEU
DIST.#3 JERRY EVANS DIST. #8 EARL MONTPETIT
BOB COMPARONI JIM TONER DIST. #4 EARL SCOTT AT LARGE: RICH THOMAS
VICE PRESIDENT TREASURER DIST. #5 TOM KAUFMAN
IT PAYS TO BELONG