City of Madison, Wisconsin | Legislative Information Center
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File #: 27696    Version: 1 Name: Restaurant Audits
Type: Ordinance Status: Passed
File created: 9/13/2012 In control: ALCOHOL LICENSE REVIEW COMMITTEE
On agenda: 10/2/2012 Final action: 10/2/2012
Enactment date: 10/11/2012 Enactment #: ORD-12-00125
Title: Amending Section 38.05(10) of the Madison General Ordinances to provide procedures for the auditing of alcohol licensed premises operating as restaurants.
Sponsors: Shiva Bidar, Lisa Subeck, Michael E. Verveer
Fiscal Note
There may be a small increase in General Fund Revenues derived from forfeitures. City staff will perform any inspections and audits as part of their regular duties. No additional appropriation is required.
Title
Amending Section 38.05(10) of the Madison General Ordinances to provide procedures for the auditing of alcohol licensed premises operating as restaurants.
Body
DRAFTER'S ANALYSIS: The Alcohol License Review Commission (ALRC) regularly issues Class B licenses to premises with the condition that said premises operate as “restaurants.” Sec. 38.05(9)(o)4.a.iii., MGO, provides that in order to qualify as a “restaurant” the premises must generate 50% or less of its annual gross revenues from the sale of alcohol. Sec. 28.05(9)(o)4.a.iv., MGO, provides that such a premise may be subject to an audit to ensure compliance with these requirements. Sec. 38.05(10), MGO, currently provides that licensed premises may be subject to searches by MPD officers and subject to financial audits and imposes a duty upon the license holder to cooperate with such searches and audits. However, the current ordinance is silent as to whom may order such an audit and under what circumstances. This ordinance revision was drafted at the request of the ALRC based upon its experience with recent audits.
The proposed revisions to Sec. 38.05(10), MGO, restate the requirement that compliance with the search an audit provisions are a mandatory condition of obtaining alcohol licenses. The ordinance is also amended to explicitly provide for a forfeiture of not less than $50 nor more than $1,000 for failure to comply with these provisions.
Sec. 38.05(10)(a), restates the existing search/inspection provisions and adopts provisions of state law with reference to the searches/inspections of licensed premises. These changes make it clear that such searches/inspections are for the purposes of determining compliance with state alcohol beverage taxes and state/local alcohol regulations....

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