AMENDMENT FOR HOUSE COMMERCE COMMITTEE ENGROSSED BILL
1294fd
___________________ moved that HB 1294 be amended as follows:
On the House Commerce Committee engrossed bill, delete everything after the enacting
clause and insert:
"
Section 1. That chapter
35-4
be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding the provisions of § 35-4-11 or 35-4-11.1 or the on-sale license fees
established pursuant to subdivisions 35-4-2(4) and (6), the governing board of any incorporated
municipality or the board of county commissioners of any county may, by ordinance, issue
additional on-sale licenses pursuant to subdivision 35-4-2(4) or (6) if the municipality or county
charges at least the minimum fee required by section 2 of this Act.
Any municipality issuing a license pursuant to this section is not subject to the quotas
established in § 35-4-11. Any county issuing a license pursuant to this section is not subject to
the quotas established in § 35-4-11.1. A municipality or county may, by ordinance, require that
any license authorized by this section may only be issued to the owner of a restaurant or facility
that enhances the economic development needs of the municipality or county.
Section 2. That chapter
35-4
be amended by adding thereto a NEW SECTION to read as
follows:
Any municipality or county adopting the ordinance pursuant to section 1 of this Act may
issue additional on-sale licenses pursuant to subdivision 35-4-2(4) or (6). Each municipality or
county shall set the on-sale license fee within ninety days of adopting the ordinance pursuant
to section 1 of this Act or within thirty days after the resolution of any appeal pursuant to section
3 of this Act. After the fee for an on-sale license issued pursuant to this Act has been
determined, no municipality or county may change the fee for a period of ten years unless an
increase in population reported by the federal decennial census requires an increase in the fee.
Section 3. That chapter
35-4
be amended by adding thereto a NEW SECTION to read as
follows:
Each licensee who owns an on-sale license issued pursuant to subdivision 35-4-2(4) or (6)
as of January 1, 2008, and who purchased or had a license transferred to them at any time after
January 1, 1998, shall report the amount originally paid for the on-sale license to the
municipality or county that issued the license. The declared purchase price shall be made under
oath and shall include the documents establishing the amount paid. If the transaction for the
purchase of the on-sale license included real or personal property, the full market value of the
real or personal property on the date of the original sale shall be deducted from the total
transaction price to determine the amount paid by the licensee for the on-sale license. The
burden of establishing the amount paid for the license shall be on the licensee. Any licensee
contesting the fair market value of the real and personal property may appeal the valuation to
circuit court.
If no on-sale license issued pursuant to subdivision 35-4-2(4) has been sold or transferred
in the ten years prior to January 1, 2008, the municipality shall set the license fee of a new on-
sale license at no less than one dollar for each person residing within the municipality as
measured by the last preceding decennial federal census. If no on-sale license issued pursuant
to subdivision 35-4-2(6) has been sold or transferred in the ten years prior to January 1, 2008,
the county shall charge at least one dollar for each person residing within the county but outside
the boundary of any municipality as measured by the last preceding decennial federal census.
Section 4. Any municipality or county adopting the ordinance pursuant to section 1 of this
Act shall set the license fee of a new on-sale license, pursuant to section 2 of this Act, at or
above the current fair market value. However, such license fee may not be less than the
minimum license fees established pursuant to subdivision 35-4-2(4) or (6). For purposes of this
section, the term, current fair market value, means the documented price of the on-sale license
most recently sold between January 1, 1998, and January 1, 2008, through an arm's-length
transaction, less the value of any real or personal property included in the transaction. Each on-
sale license holder as of January 1, 2008, who acquired the on-sale license within the last ten
years shall report to the municipality or county the date and price paid for its on-sale license.
Section 5. The municipality or county shall maintain a registry of each on-sale license that
is being offered for sale at the price established in section 4 of this Act and furnish a copy of the
registry to anyone who requests a new on-sale license. The municipality or county may only
issue a new license pursuant to this Act if no on-sale license is on the registry or a person
desiring to purchase an on-sale license listed on the registry provides documentation showing
that the person is unable to purchase any on-sale license listed on the registry at the price
established in section 4 of this Act and on terms satisfactory to both the potential buyer and
seller. The price of any on-sale license registered as, for sale, with the municipality or county
shall be sold at the current fair market price set by the municipality or county pursuant to section
4 of this Act. Nothing in this Act precludes the sale of an on-sale license by a licensee not listed
on the registry.
Section 6. The existing on-sale license holder is responsible for registering with the
municipality or county that the on-sale license is for sale pursuant to section 5 of this Act."