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Updating Chapter 310 of the Legislative Code (Title XXIX) pertaining to Uniform License Procedures to extend payment of license renewal fees owed in calendar year 2026.
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SECTION I
WHEREAS, The City of Saint Paul holds direct authority over several service-based business license types, a critical lever it can use to provide timely support to local businesses; and
WHEREAS, The Department of Safety and Inspections (DSI) is funded in part by licensing fees as required by section 310.01 of the Saint Paul Legislative Code; and
WHEREAS, Federal immigration enforcement actions conducted in the Minneapolis-Saint Paul metropolitan area as part of “Operation Metro Surge,” beginning in late 2025, have caused significant economic disruption and instability for businesses and workers across the region; and
WHEREAS, Many establishments holding Class N licenses operate within the hospitality and nightlife sectors and rely heavily on stable staffing and consistent customer activity, but as a result of Operation Metro Surge these establishments have experienced reduced revenue and staffing challenges; and
WHEREAS, Providing a temporary delay in payment of Class N license renewal fees is a sound policy approach that delivers clear temporary, targeted relief while maintaining necessary oversight; and
WHEREAS, The City experienced a cyberattack in July of 2025 that, as a consequence, prevented the timely notice of all business license renewals, necessitating DSI’s delay of renewal notices normally issued and due between July 2025 and April 2026; and
WHEREAS, The City is taking this action to support local businesses, protect jobs, and strengthen economic stability, community resilience, and the vibrancy of all neighborhoods in Saint Paul; and
WHEREAS, Providing temporary flexibility in the timing of Class N license renewal fee payments received and owed in calendar year 2026 will help affected businesses maintain compliance with licensing requirements while recovering from these unexpected economic disruptions; and now, therefore, be it
RESOLVED, The City of Saint Paul does hereby ordain:
SECTION 2
Title XXIX of the Saint Paul Legislative Code is hereby amended and shall read as follows:
Sec. 310.04. - Revocation; suspension; adverse actions; imposition of conditions.
(a) Council may take adverse action. The council is authorized to take adverse action, as defined in section 310.01 above, against any or all licenses or permits, licensee or applicant for a license, as provided in and by these chapters. Adverse actions against entertainment licenses issued under chapter 411 of the Legislative Code may be initiated for the reasons set forth in subsection (b) below, or upon any lawful grounds which are communicated to the license holder in writing prior to the hearing before the council. Such actions must be initiated and carried out in accordance with the procedures outlined in section 310.03; provided, however, that the formal notice of hearing must be used to initiate the adverse action.
(b) Basis for action. Such adverse action may be based on one (1) or more of the following reasons, which are in addition to any other reason specifically provided by law or in these chapters:
(1) The license or permit was procured by misrepresentation of material facts, fraud, deceit or bad faith.
(2) The applicant or one acting in his or her behalf made oral or written misstatements or misrepresentations of material facts in or accompanying the application.
(3) The license was issued in violation of any of the provisions of the zoning code, or the premises which are licensed or which are to be licensed do not comply with applicable health, housing, fire, zoning and building codes and regulations.
(4) The license or permit was issued in violation of law, without authority, or under a material mistake of fact.
(5) The licensee or applicant has failed to comply with any condition set forth in the license, or set forth in the resolution granting or renewing the license.
(6)
a. The licensee or applicant (or any person whose conduct may by law be imputed to the licensee or applicant) has violated, or performed any act which is a violation of, any of the provisions of these chapters or of any statute, ordinance or regulation reasonably related to the licensed activity, regardless of whether criminal charges have or have not been brought in connection therewith;
b. The licensee or applicant has been convicted of a crime that may disqualify said applicant from holding the license in question under the standards and procedures in Minn. Stat. chapter 364; or
c. The licensee or applicant (or any person whose conduct may by law be imputed to the licensee or applicant) has engaged in or permitted a pattern or practice of conduct of failure to comply with laws reasonably related to the licensed activity or from which an inference of lack of fitness or good character may be drawn.
(7) The activities of the licensee in the licensed activity created or have created a serious danger to the public health, safety or welfare, or the licensee performs or has performed his or her work or activity in an unsafe manner.
(8) The licensed business, or the way in which such business is operated, maintains or permits conditions that unreasonably annoy, injure or endanger the safety, health, morals, comfort or repose of any considerable number of members of the public.
(9) Failure to keep sidewalks or pedestrian ways reasonably free of snow and ice as required under chapter 114 of the Saint Paul Legislative Code.
(10) The licensee or applicant has shown by past misconduct or unfair acts or dealings: physical abuse, assaults or violent actions done to others, including, but not limited to, actions meeting the definition of criminal sexual conduct pursuant to Minn Stats. §§ 609.342 through 609.3451; sexual abuse, physical abuse or maltreatment of a child as defined in Minn. Stats. § 626.556, subdivisions 2 and 10e, including, but not limited to, acts which constitute a violation of Minn. Stats. §§ 609.02, subdivision 10; 609.321 through 609.3451; or 617.246; neglect or endangerment of a child as defined in Minn. Stats. § 626.557, subdivision 2; the manufacture, distribution, sale, gift, delivery, transportation, exchange or barter of a controlled substance as defined in Minn. Stats. chapter 152; the possession of a controlled substance as defined in Minn. Stats. chapter 152 in such quantities or under circumstances giving rise to a reasonable inference that the possession was for the purpose of sale or distribution to others; or by the abuse of alcohol or other drugs, that such licensee or applicant is not a person of the good moral character or fitness required to engage in a licensed activity, business or profession.
(11) The licensee or applicant has materially changed or permitted a material change in the design, construction or configuration of the licensed premises without the prior approval of the city council in the case of Class N licenses, the director in the case of Class T licenses, and the director in the case of Class R licenses, or without first having obtained the proper building permits from the city.
(12) The licensee or applicant has violated section 294.01 of the Legislative Code, or has made or attempted to make a prohibited ex parte contact with a council member as provided in section 310.03 (c-2) of the Legislative Code.
(13) The licensee violated the law or any license condition and that violation is related to a death or great bodily harm, as defined in Minn. Stats. § 609.02, subd. 8, in or near the establishment.
(14) The licensee has failed to pay license fees within sixty (60) days of the date the fees are due. Licensee must pay any outstanding fees and delinquent fees in total. Failure to do so within sixty (60) days of the due date may result in revocation of the license. A revocation for this reason, however, is not considered a revocation resulting from misconduct or unfitness of the licensee, evidence of violations of law involving licensed premises, evidence that the applicant had been involved in the operation of a nuisance, or fraud or deception in the license application. Therefore, the requirement of section 310.02 prohibiting re-application within one (1) year of revocation shall not apply to revocations under this paragraph.
Except, in the calendar year 2026, all Class N license renewal fees may be paid up to six (6) months from the date such fees are due. So long as all license renewal fees owed for calendar years 2025 or 2026 are paid in calendar year 2026, late payments will not be subject to a late fee penalty as described in section 310.07(d). Class N license renewal fees for calendar years 2025 and 2026 that are not paid before the end of calendar year 2026 shall be subject to a late fee penalty as described in section 310.07(d) and failure to pay the renewal fee and any penalty fee within sixty (60) days of January 1, 2027, shall provide a basis for adverse action under this Chapter as directed by this Chapter.
SECTION 3
This Ordinance shall become effective and be in force thirty (30) days following passage, approval, and publication.