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Craft Brewery and Brew Pub Liquor License Classifications./ Happy Hour Discussion"HAPPY HOUR" STATE REGULATIONS vs CHAPTER 13 PROVISION STATE REGULATION (recommended) CHAPTER 13 (proposed to delete) BEVERAGE PROMOTION ■ State legislation now allows licensees to offer discounted drinks for up to 4 hours per day, and not Mount Prospect currently prohibits any more than 15 hours per week form of beverage promotion • Licensee shall not offer drink promotion between the 1 �!.— (h) hours of 10:00 p.m. and closing hour MEAL PACKAGE (Service of alcoholic liquor as an accompaniment to food in form of a meal package) • There is no limit of drinks with a meal package. 0 Limit of (1) drink per meal package PARTY PACKAGE (Service of food and alcohol for a fixed price by invitation or reservation not open to the general public) • Offer food in a dedicated space • Mount Prospect allows 13.405C (1 a) with • No more than 3 hours following provisions: • No limit on number of drinks ® Not to exceed (3) licenses per year • Must distribute wristbands, lanyards or shirts to party ® Must give Village Manager (7) days notice package attendees. prior to event ADVERTISING ® Social media and daily special advertising is allowed • Happy hour, meal packages and party packages can be advertised • Licensee must give notice of discounted drinks on premise or website 7 days prior to drink promotion INFUSION * Infused spirits are allowed • A record of production, storage and cleaning dates must be kept on premises for inspection by state agents. BASSET CERTIFICATION 4 Advertising not regulated a Infusion not regulated • Basset certification required for all wait staff, • Basset certification required bouncers, security guards employees 13.407 F • Newly hired staff have 120 days after start date to • Newly hired within (30) days obtain certification date • Certification renewal every 3 years is required 0 No certification renewal requirec of all after start An\ MOUNT PROSPECT POLICE DEPARTMENT FORMAL MEMORANDUM I CHF 15-68 C ONTIMI., NUMBER TO: ACTING VILLAGE MANAGER DAVID STRAHL FROM: CHIEF TIM JANOWI SUBJECT: CHAPTER 13 - ALCOHOLIC LIQUORS: HAPPY HOURS DATE: AUGUST 17, 2015 ISSUE Recently, the Illinois legislature passed a bill restoring the Happy Hour concept and Governor Rauner subsequently signed the legislation into law. The new statute limits Happy Hour promotions to a total of fifteen (15) hours per week for each establishment with a maximum of four (4) hours per day. The issue of the Happy Hour comes before the Village for consideration on a local level as the local ordinance currently prohibits liquor establishments from conducting Happy Hours (Chapter 13). DISCUSSION The issue of Happy Hour promotions has two concerns worth consideration in preparation for a discussion by the Village Board on whether to reinstitute the promotional concept in Mount Prospect. The first concern is from a business development/relationship standpoint, and the second is from a law enforcement perspective. First, from a business development and relationship perspective, reinstituting the option for Happy Hour promotions to Mount Prospect liquor establishments would be beneficial to the hospitality industry within the corporate limits, particularly if surrounding communities begin to adopt ordinances allowing for Happy Hour promotions in their liquor establishments. Could the Village create a revenue decline for liquor establishments should the prohibition of Happy Hour promotions remains and surrounding communities chose to allow Happy Hour promotions? What would the subsequent tax revenue loss and/or business loss be for the Village should a choice be made to maintain the prohibition? How might perspective restaurant/bar businesses perceive the opportunities available to them within the Village compared to neighboring communities? Based on the diversity of establishments serving alcoholic beverages within the community, certain businesses would likely opt out of Happy Hour promotions as the marketing strategy might not be well suited for their particular business model. Happy Hour promotions would likely be appealing to certain liquor establishments as opposed to all of the liquor establishments in the Village. Second, from a law enforcement perspective, much has changed culturally regarding the use of alcoholic beverages since Illinois last authorized Happy Hours in the late 1980s. People, in Page 1 of 2 With COURAGE we protect, with COMPASSION we serve. MOUNT PROSPECT POLICE DEPARTMENT I CHF 15-68 FORMAL MEMORANDUM CONTROL NUMBER general, appear to be more aware of the need for moderation while consuming alcoholic beverages, using car pools or designated drivers, and taking taxi cabs and public transportation. The Village reinforces the message of reducing the risk of impaired drivers through the Village Code by requiring liquor establishment staff to call for a taxi should a patron need or request one to avoid driving while under the influence of alcohol. In the intervening time since the State last permitted Happy Hour promotions, impaired motorist laws have become stricter with the lowering of the presumed intoxicated alcohol content from 0.10 to 0.08, the introduction of Breath Alcohol Ignition Interlock Devices (BAIID), tougher rules regarding the issuance of Judicial Driving Permits (JPD), enhanced penalties at sentencing, stricter repeat offender consequences, and longer periods of driver's license suspension or revocation, not to mention the incredible expense of defending DUI cases and paying the fines and fees at sentencing. Should the Village decide to restore Happy Hour promotions, the Police Department would continuously review law enforcement factors including the trending effect on DUI arrest statistics, traffic crash statistics, and calls for service regarding disturbances at liquor establishments to determine if a correlating effect is present. RECOMMENDATION The Police Department would support the reinstitution of Happy Hour promotions at liquor establishments within the Village. The Police Department would monitor traffic crash, liquor disturbance calls for service, and arrest data to determine if further review or revisions are necessary. TJ c: Deputy Chief Michael Eterno Deputy Chief Tim Griffin Mr. Evertt Hill, Attorney Page 2 of 2 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 13 "ALCOHOLIC LIQUOR" ARTICLES I AND II OF THE VILLAGE CODE OF MOUNT PROSPECT. ILLINOIS BE IT ORDAINED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION 1: Section 13.101 "Words and Phrases" to Article I "Definitions" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by adding the following seven definitions in alphabetical order to be and read as follows: BREW PUB: A manufacturer and retailer of craft beer as defined and regulated by the State of Illinois. CRAFT BREWERY: A manufacturer of craft beer as defined and regulated by the State of Illinois. DRINK PROMOTION PERIOD: Any period of the business day when an alcoholic beverage is offered to the public or segment of the public at a reduced price. GROWLER or HOWLER: A sealed and refillable container of approximately one quart to one half gallon in size used for the retail sale of beer by a craft brewery for off -premises consumption. HAPPY HOUR: Any period of the business day when an alcoholic beverage is offered to the public or segment of the public at a reduced price. INFUSED BEVERAGE: An alcoholic beverage to which a fruit or vegetable has been added to impart the flavor of that fruit or vegetable. Infusion usually involves soaking or marinating for a period of days. MEAL PACKAGE: A special menu package where food and alcoholic beverages are included in a single price. PARTY PACKAGE: An offering by a licensee for private party functions or events for specific social or business occasion. 346501_1 SECTION 2: Section 13.204.1 "Descriptions and Restrictions" to Article II "Licensing for Regulated Service" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by adding the following new subparagraph (g) to Paragraph B "Class F Licenses (food service)" and read as follows: (g) Infused beverages may be delivered only in accordance with state regulations. SECTION 3: Section 13.204.1 "Descriptions and Restrictions" to Article II "Licensing for Regulated Service" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by adding the following new subparagraph (g) to Paragraph C "Specialty Licenses" and read as follows: (g) Infused beverages may be delivered only in accordance with state regulations. SECTION 4: Section 13.204.1 "Descriptions and Restrictions" to Article II "Licensing for Regulated Service" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by adding the following new subparagraph (8) to Paragraph C "Specialty Licenses" and the current subparagraph (8) shall become subparagraph (9) and read as follows: (8) Craft Brewery License: Class S-8, for the manufacture and delivery of beer for on -premises and off -premises consumption by a craft brewery and for guided tours of its brewing facility. Restrictions specific to a Class S-8 license: (a) Must comply with all laws and regulations of the State of Illinois as may apply to Craft Brewers. (b) Samplings may be conducted only pursuant to a Village Sampling Endorsement. (c) Hours of sale shall be the same as a P -Package License. 346501_1 2 (d) Retail sales are allowed as follows: On -premises consumption:. 1. Not more than fifty-two (52) ounces of beer may be served to any customer in one (1) day and each serving shall be limited to sixteen (16) ounces. 2. At a minimum, must provide limited food service such as cheese, crackers, snack food or other similar deli -style items to customers who are consuming craft beer. ii. Growlers and Howlers: 1. may be filled only with beer manufactured on the premises; and 2. shall be filled and sanitized according to all applicable laws and regulations; and 3.. shall be sealed with a tamper -proof seal; and 4, may be sold for off -premises consumption only. iii. Package goods: Beer manufactured on the premises and packaged according to Illinois law may be sold at retail from the licensed premises. (d) Tours of the brewing facility may be offered during hours that the premises is open for retail sales. SECTION 5: Section 13.204.1 "Descriptions and Restrictions" to Article II "Licensing for Regulated Service" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by adding the following new subparagraph (h) to Paragraph B "Class F Licenses (Food Service)" and shall read as follows: (h) Brew Pub License: Class F-8 for service of alcoholic beverages at a restaurant which brews beer on its premises. Regulations specific to an F-8 license: 346501_1 3 (1) All regulations applicable to a Class F-3 License shall apply to an F-8 license. (2) The licensee must be in compliance with state regulations applicable to a state brew pub license. (3) Growlers and Howlers. 1. may be filled only with beer manufactured on the premises; and 2. shall be filled and sanitized according to all applicable laws and regulations; and 3. shall be sealed with a tamper -proof seal; and 4, may be sold for off -premises consumption only.. SECTION 8: Paragraph E(1) "Endorsements" to Section 13.204.1 "Descriptions and Restrictions" to Article II "Licensing for Regulated Service" of Chapter 13 "Alcoholic Liquor" of the Mount Prospect Village Code shall be amended by deleting subparagraph (b) in its entirety and inserting the following in its place: "(c) The actual amount of beer or wine in an individual sampling container may not exceed two (2) ounces"; and deleting subparagraph (c) in its entirety and re -lettering the following paragraphs. SECTION 7; Subparagraph A(3) "Specialty Licenses" to Section 13.201 "License Required" to Division II "Fees, Rates and Taxes" of the Mount Prospect Village Code shall be amended by adding the following new Class S-8 to the table with a fee of $1,500.00 and re -numbering the current Class S-8 to Class S-9 with a fee of $2,750.00. Subparagraph A(2) shall be amended by adding the new Class F-8 to the table with a fee of $3,000.00. 346501_1 4 SECTION 8: Subparagraph C "Other Prohibited Acts" to Section 13.405 "Prohibited Conduct" to Article IV "Regulation of Licenses" of the Mount Prospect Village Code shall be amended as follows: 1. By deleting the words "a fixed price" in the second sentence of paragraph 1(a) and inserting "either a meal package or a party package" in its place. 2. By deleting subparagraphs (1) through (5) under paragraph 1(a) and inserting the following in lieu thereof: (i) Meal package. (1) Food service must be included. (2) Meal package privileges are available only to holders of an F or an S-8 licensee. (3) All other liquor code regulations shall apply including, but not limited to, over service of alcoholic beverages. (ii) Party Package: (1) A Party Package: (a) must be arranged by invitation or ticket sales. (b) must be open to a defined number of guests and not open to the general public. (c) must include food service. (d) may not last for more than three hours. (e) guests have identifiers such as wristbands, lanyards or tee shirts. (f) nonfixed price ticket holders must dine in a portion of the establishment that is discreet from the portion where the event is held. (g) Is available only to holders of an F or S-8 license. 346501_1 5 (h) Requires application of all other liquor code regulations including, but not limited to, over service of alcoholic beverages. 3. By deleting paragraph (b) under paragraph 1 in its entirety and inserting in lieu thereof a new paragraph (b) to read as follows: b, Conducting or allowing drink promotion periods or happy hours; except pursuant to the following rules: 1, Licensee must give notice of any drink promotion period (a) by signs on its premises or (b) on its website; at least seven days prior to the drink promotion period. 2. Drink promotion period is prohibited between 10:00 p.m. and closing time. 3. The aggregate drink promotion periods for a licensed premises may not exceed 15 hours in any 7 day consecutive period. 4. A single drink promotion period may not exceed 4 hours, 5. All other regulations with respect to the delivery of alcoholic beverages shall apply. SECTION 9: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law, AYES: NAYS: ABSENT: PASSED and APPROVED this ATTEST: M. Lisa Angell, Village Clerk day of 2015 Arlene Juracek, Mayor 346501_1 6