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ST L~ ACTION Date: 6/ 16/2003 Item I~~o: Department Approval: Manager Approved: Agenda Section: Other Business Item Description: Discussion on the Change in Hours of Operation for On-Sale Liquor Establishments Background In the recently adjourned legislative session, State Lawmakers agreed to extend the hours of operation for on-sale liquor establishments from the current 1:OOam closing time, to 2:OOam. The change in law is effective July 1, 2003. The new law allows local units of government to prohibit the extended hours by establishing an ordinance that specifies an earlier closing time. If the City wishes to prohibit the extended hours, it must do so in the affirmative. The question before the Council is two-fold; 1) Does the Council wish to extend the hours of operation for on-sale liquor establishments; and 2) Does the current City Code satisfy the desired position of the City from a legal standpoint. The City has received a request from an existing on-sale establishment who wishes to extend their hours of operation to 2:00 am. It's uncertain whether other establishments will make the same request, but it seems likely that others will do so at some time in the future. Under the new law, local approval is required before any establishment can extend their hours. Discussion Items City Code, Chapter 302 governs the licensing of liquor establishments including the hours of operation. Staff's initial review of the current City Code is somewhat inconclusive as to whether the hours of operation are clearly defined. City Code 302.09 states the following: HOURS OF SALE: On-sale licenses of autlioj~ized sales on Sunday and Monday may sey-ve intoxicating liquof~s between the Izouf s of ten o 'clock (10:00) am on Sundays and one o'clock (1:00) am on Mondays. (OYd. 1068, 12-7-1989). Depending on One's interpretation, it could be concluded that the language is specifying hours of ` operation for Sunday only, which presumably would imply that all other days of sale are governed by the hours of operation as set forth by State Statute, Chapter 340A.