5-02 Retail Licensing

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CHAPTER 5-02RETAIL LICENSING5-02-01. State and local retail license required - Exception. Except as otherwiseprovided in section 5-02-01.1, any person engaging in the sale of alcoholic beverages at retail<br>without first securing an appropriate license from the attorney general and a local license from<br>the governing body of any city, or if said business is located outside the corporate limits of a city,<br>the board of county commissioners or the governing body of an Indian tribe, as the location<br>requires, is guilty of a class A misdemeanor. This section does not apply to public carriers<br>engaged in interstate commerce.5-02-01.1. Event permit authorized - Penalty.1.The local governing body may by permit authorize a qualified alcoholic beverage<br>licensee licensed under this chapter to engage in the sale of alcoholic beverages at<br>events designated by the permit. For purposes of this section, "qualified alcoholic<br>beverage licensee" means a licensee in a city that imposed a city lodging and<br>restaurant tax on July 31, 1993, who paid such tax and who continues to pay any<br>such tax imposed by the city or a licensee in a county, a licensee in a city that did<br>not impose a city lodging and restaurant tax on July 31, 1993, or a tribal licensee. A<br>fee for the local permit may be set by ordinance or resolution at not more than<br>twenty-five dollars. The permit may not be valid for a period greater than fourteen<br>days and may include Sundays. The local governing body may establish rules to<br>regulate and restrict the operation of an event permit. Any person who dispenses,<br>sells, or permits the consumption of alcoholic beverages in violation of this section or<br>the conditions of a permit is guilty of a class B misdemeanor.2.The local governing body may authorize persons under twenty-one years of age to<br>remain in the area of the event, or a portion thereof, where beer, wine, or sparkling<br>wine may be sold pursuant to the permit.However, this authorization must besubject to the following minimum conditions:a.The area where persons under twenty-one years of age may remain must be<br>specifically set forth in the permit;b.Only employees of the qualified alcoholic beverage licensee who are at least<br>twenty-one years of age may deliver and sell the beer, wine, or sparkling wine;c.Subject to section 5-02-06, the area where persons under twenty-one years of<br>age may remain may not be the qualified alcoholic beverage licensee's fixed or<br>permanent licensed premises as shown on the state and local governing body's<br>alcoholic beverage license issued pursuant to section 5-02-01; andd.No person under twenty-one years of age within the area described in the<br>permit may consume, possess, or receive alcoholic beverages.5-02-02. Qualifications for license. A retail license may not be issued to any personunless the applicant files a sworn application, accompanied by the required fee, showing the<br>following qualifications:1.The applicant, other than an organization, must be a legal resident of the United<br>States and be a person of good moral character.2.If the applicant is:a.A corporation, then:Page No. 1(1)The manager of the licensed premises and the officers and directors<br>must be legal residents of the United States and persons of good moral<br>character; and(2)The shareholders:(a)Who are individuals, must be legal residents of the United States<br>and of good moral character; and(b)Which are organizations, must meet the requirements of this<br>section for applicants which are organizations.Corporate applicants must first be properly registered with the secretary of<br>state.b.A limited liability company, then:(1)The manager of the licensed premises and the managers and governors<br>must be legal residents of the United States and of good moral character.(2)The members:(a)Who are individuals, must be legal residents of the United States<br>and of good moral character; and(b)Which are organizations, must meet the requirements of this<br>section for applicants that are organizations.(3)The applicant must first be properly registered with the secretary of state.c.A limited partnership, then:(1)The manager of the licensed premises must be a legal resident of the<br>United States and of good moral character.(2)The general partners and limited partners:(a)If individuals, must be legal residents of the United States and of<br>good moral character; and(b)If organizations, must meet the requirements of this section for<br>applicants that are organizations.(3)The applicant must first be properly registered with the secretary of state.d.A general partnership, then:(1)The manager of the licensed premises must be a legal resident of the<br>United States and of good moral character; and(2)The partners:(a)Who are individuals, must be legal residents of the United States<br>and of good moral character; and(b)Which are organizations, must meet the requirements of this<br>section for applicants that are organizations.e.A limited liability partnership, then:Page No. 2(1)The manager of the licensed premises must be a legal resident of the<br>United States and of good moral character; and(2)The partners:(a)Who are individuals, must be legal residents of the United States<br>and of good moral character; and(b)Which are organizations, must meet the requirements of this<br>section for applicants that are organizations.Limited liability partnership applicants must first be properly registered with the<br>secretary of state.3.The applicant or manager must not have been convicted of an offense determined<br>by the attorney general to have a direct bearing upon an applicant's or manager's<br>ability to serve the public as an alcoholic beverage retailer, or, following conviction of<br>any offense, is determined not to be sufficiently rehabilitated under section<br>12.1-33-02.1.4.The building in which business is to be conducted must meet local and state<br>requirements regarding the sanitation and safety.5.The applicant for a state license must have first secured a local license.6.The attorney general, or local governing body, may require the applicant to set forth<br>such other information in the application as necessary to enable them to determine if<br>a license should be granted.7.The applicant may not have any financial interest in any wholesale alcoholic<br>beverage business.8.As a condition precedent to a background check, the attorney general may require<br>the applicant to pay, in advance, an estimated additional fee necessary to defray the<br>actual cost of a background check of a person for whom adequate background<br>information sources are not readily available. The estimated additional fee must be<br>placed in the attorney general's refund fund for use to defray the actual expenses of<br>the background check. The remainder of the funds must be returned to the person<br>within thirty days of the conclusion of the background check.In addition, theattorney general may require the applicant or such other person subject to a<br>background check to execute a written consent if needed by the attorney general to<br>obtain background or criminal history information.5-02-02.1.Sale of alcoholic beverages in gas stations, grocery stores, andconvenience stores. Before a state retail off sale alcoholic beverage license may be issued to a<br>person whose business to be licensed is located in a building that is primarily a gas station,<br>grocery store, or convenience store, the area to be licensed for the sale of alcoholic beverages<br>must be clearly set out in a blueprint or diagram. The area licensed for the sale of alcoholic<br>beverages must be separated from the nonlicensed portion of the business by a wall designed to<br>allow sales personnel to serve customers and make sales in both the licensed and unlicensed<br>portions of the premises, and that may allow customers in either portion of the premises access<br>to the other portion.5-02-03. Local license fees. The fee for an annual local on and off sale liquor licensemust be set by ordinance or resolution at not less than two hundred dollars nor more than two<br>thousand dollars, except outside the corporate limits of a city the fee shall not exceed one<br>thousand dollars.The fee for an annual on and off sale local beer license must be set byordinance or resolution at not less than fifty dollars nor more than five hundred dollars. The fee<br>for an annual local exclusive on sale liquor license must be set by ordinance or resolution at notPage No. 3less than two hundred dollars nor more than two thousand dollars, except outside the corporate<br>limits of a city the fee must not exceed one thousand dollars.The fee for an annual localexclusive on sale local beer license must be set by ordinance or resolution at not less than fifty<br>dollars nor more than five hundred dollars. The fee for an annual local exclusive off sale beer or<br>off sale liquor license must not be more than the fee charged for an on and off sale license. The<br>local governing body may by ordinance or resolution provide for issuance of licenses for any<br>period not to exceed one year and may allow for proration and refunds of license fees.Inaddition to any other license fee permitted by this section, a license fee may be increased by not<br>more than five dollars for each Sunday the licensee sells alcoholic beverages.5-02-04. State license fee. The fee for an annual state beer or liquor license is fiftydollars each, except in cities over five hundred population at the last federal decennial census,<br>the fee is one hundred dollars for each license. The fee for an annual state license will be<br>charged on a calendar-year basis. License fees will be prorated from the first day of the month in<br>which the license is issued up to the last day of the month in which such license expires, except<br>that no license fee will be less than twenty-five dollars. A reinstatement fee of one hundred<br>dollars is required in addition to the annual license fee for each license renewal applied for after<br>December thirty-first.5-02-05.Dispensing prohibited on certain days - Penalty.A person may notdispense or permit the consumption of alcoholic beverages on a licensed premises between<br>two a.m. and twelve noon on Sundays, between the hours of two a.m. and eight a.m. on all other<br>days of the week, or on Christmas Day or after six p.m. on Christmas Eve. In addition, a person<br>may not provide off sale after two a.m. on Thanksgiving Day. A person that violates this section<br>is guilty of a class A misdemeanor.5-02-05.1. Sunday alcoholic beverage permit - Penalty.1.Any local governing body may issue a Sunday alcoholic beverage permit to a<br>qualified alcoholic beverage licensee licensed under this chapter or to a publicly<br>owned or operated facility.For purposes of this section, "qualified alcoholicbeverage licensee" has the same meaning as in section 5-02-01.1. A county may<br>not issue a permit under this section to a retail alcoholic beverage establishment<br>located within the geographical boundaries of a city.2.The authority for issuing the permit rests solely with the local governing body. A<br>permit may be granted only upon proper application to and approval by the<br>governing body and must include payment of a fee determined by the governing<br>body. A permit granted by the local governing body may be effective for more than<br>one Sunday.3.Under the permit, alcoholic beverages may be distributed and dancing may be<br>permitted in the establishment or facility.A local governing body may permitdancing and the distribution of alcoholic beverages between the hours of twelve<br>noon on Sunday and two a.m. on Monday. The general public may be permitted to<br>participate in the consumption of alcoholic beverages distributed under the authority<br>of the permit.The establishment or facility granted the permit shall enforce therequirements of this section.4.Any person who dispenses, sells, or permits the consumption of alcoholic beverages<br>in violation of this section, or who furnishes information required by this section<br>which is false or misleading, is guilty of a class A misdemeanor.5-02-05.2. Local approval of Sunday beer and wine sales by eating establishments- Fee. Repealed by S.L. 1993, ch. 63,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t05/pdf/t05c02.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 5-02RETAIL LICENSING5-02-01. State and local retail license required - Exception. Except as otherwiseprovided in section 5-02-01.1, any person engaging in the sale of alcoholic beverages at retail\u003cbr\u003ewithout first securing an appropriate license from the attorney general and a local license from\u003cbr\u003ethe governing body of any city, or if said business is located outside the corporate limits of a city,\u003cbr\u003ethe board of county commissioners or the governing body of an Indian tribe, as the location\u003cbr\u003erequires, is guilty of a class A misdemeanor. This section does not apply to public carriers\u003cbr\u003eengaged in interstate commerce.5-02-01.1. Event permit authorized - Penalty.1.The local governing body may by permit authorize a qualified alcoholic beverage\u003cbr\u003elicensee licensed under this chapter to engage in the sale of alcoholic beverages at\u003cbr\u003eevents designated by the permit. For purposes of this section, \u0026quot;qualified alcoholic\u003cbr\u003ebeverage licensee\u0026quot; means a licensee in a city that imposed a city lodging and\u003cbr\u003erestaurant tax on July 31, 1993, who paid such tax and who continues to pay any\u003cbr\u003esuch tax imposed by the city or a licensee in a county, a licensee in a city that did\u003cbr\u003enot impose a city lodging and restaurant tax on July 31, 1993, or a tribal licensee. A\u003cbr\u003efee for the local permit may be set by ordinance or resolution at not more than\u003cbr\u003etwenty-five dollars. The permit may not be valid for a period greater than fourteen\u003cbr\u003edays and may include Sundays. The local governing body may establish rules to\u003cbr\u003eregulate and restrict the operation of an event permit. Any person who dispenses,\u003cbr\u003esells, or permits the consumption of alcoholic beverages in violation of this section or\u003cbr\u003ethe conditions of a permit is guilty of a class B misdemeanor.2.The local governing body may authorize persons under twenty-one years of age to\u003cbr\u003eremain in the area of the event, or a portion thereof, where beer, wine, or sparkling\u003cbr\u003ewine may be sold pursuant to the permit.However, this authorization must besubject to the following minimum conditions:a.The area where persons under twenty-one years of age may remain must be\u003cbr\u003especifically set forth in the permit;b.Only employees of the qualified alcoholic beverage licensee who are at least\u003cbr\u003etwenty-one years of age may deliver and sell the beer, wine, or sparkling wine;c.Subject to section 5-02-06, the area where persons under twenty-one years of\u003cbr\u003eage may remain may not be the qualified alcoholic beverage licensee's fixed or\u003cbr\u003epermanent licensed premises as shown on the state and local governing body's\u003cbr\u003ealcoholic beverage license issued pursuant to section 5-02-01; andd.No person under twenty-one years of age within the area described in the\u003cbr\u003epermit may consume, possess, or receive alcoholic beverages.5-02-02. Qualifications for license. A retail license may not be issued to any personunless the applicant files a sworn application, accompanied by the required fee, showing the\u003cbr\u003efollowing qualifications:1.The applicant, other than an organization, must be a legal resident of the United\u003cbr\u003eStates and be a person of good moral character.2.If the applicant is:a.A corporation, then:Page No. 1(1)The manager of the licensed premises and the officers and directors\u003cbr\u003emust be legal residents of the United States and persons of good moral\u003cbr\u003echaracter; and(2)The shareholders:(a)Who are individuals, must be legal residents of the United States\u003cbr\u003eand of good moral character; and(b)Which are organizations, must meet the requirements of this\u003cbr\u003esection for applicants which are organizations.Corporate applicants must first be properly registered with the secretary of\u003cbr\u003estate.b.A limited liability company, then:(1)The manager of the licensed premises and the managers and governors\u003cbr\u003emust be legal residents of the United States and of good moral character.(2)The members:(a)Who are individuals, must be legal residents of the United States\u003cbr\u003eand of good moral character; and(b)Which are organizations, must meet the requirements of this\u003cbr\u003esection for applicants that are organizations.(3)The applicant must first be properly registered with the secretary of state.c.A limited partnership, then:(1)The manager of the licensed premises must be a legal resident of the\u003cbr\u003eUnited States and of good moral character.(2)The general partners and limited partners:(a)If individuals, must be legal residents of the United States and of\u003cbr\u003egood moral character; and(b)If organizations, must meet the requirements of this section for\u003cbr\u003eapplicants that are organizations.(3)The applicant must first be properly registered with the secretary of state.d.A general partnership, then:(1)The manager of the licensed premises must be a legal resident of the\u003cbr\u003eUnited States and of good moral character; and(2)The partners:(a)Who are individuals, must be legal residents of the United States\u003cbr\u003eand of good moral character; and(b)Which are organizations, must meet the requirements of this\u003cbr\u003esection for applicants that are organizations.e.A limited liability partnership, then:Page No. 2(1)The manager of the licensed premises must be a legal resident of the\u003cbr\u003eUnited States and of good moral character; and(2)The partners:(a)Who are individuals, must be legal residents of the United States\u003cbr\u003eand of good moral character; and(b)Which are organizations, must meet the requirements of this\u003cbr\u003esection for applicants that are organizations.Limited liability partnership applicants must first be properly registered with the\u003cbr\u003esecretary of state.3.The applicant or manager must not have been convicted of an offense determined\u003cbr\u003eby the attorney general to have a direct bearing upon an applicant's or manager's\u003cbr\u003eability to serve the public as an alcoholic beverage retailer, or, following conviction of\u003cbr\u003eany offense, is determined not to be sufficiently rehabilitated under section\u003cbr\u003e12.1-33-02.1.4.The building in which business is to be conducted must meet local and state\u003cbr\u003erequirements regarding the sanitation and safety.5.The applicant for a state license must have first secured a local license.6.The attorney general, or local governing body, may require the applicant to set forth\u003cbr\u003esuch other information in the application as necessary to enable them to determine if\u003cbr\u003ea license should be granted.7.The applicant may not have any financial interest in any wholesale alcoholic\u003cbr\u003ebeverage business.8.As a condition precedent to a background check, the attorney general may require\u003cbr\u003ethe applicant to pay, in advance, an estimated additional fee necessary to defray the\u003cbr\u003eactual cost of a background check of a person for whom adequate background\u003cbr\u003einformation sources are not readily available. The estimated additional fee must be\u003cbr\u003eplaced in the attorney general's refund fund for use to defray the actual expenses of\u003cbr\u003ethe background check. The remainder of the funds must be returned to the person\u003cbr\u003ewithin thirty days of the conclusion of the background check.In addition, theattorney general may require the applicant or such other person subject to a\u003cbr\u003ebackground check to execute a written consent if needed by the attorney general to\u003cbr\u003eobtain background or criminal history information.5-02-02.1.Sale of alcoholic beverages in gas stations, grocery stores, andconvenience stores. Before a state retail off sale alcoholic beverage license may be issued to a\u003cbr\u003eperson whose business to be licensed is located in a building that is primarily a gas station,\u003cbr\u003egrocery store, or convenience store, the area to be licensed for the sale of alcoholic beverages\u003cbr\u003emust be clearly set out in a blueprint or diagram. The area licensed for the sale of alcoholic\u003cbr\u003ebeverages must be separated from the nonlicensed portion of the business by a wall designed to\u003cbr\u003eallow sales personnel to serve customers and make sales in both the licensed and unlicensed\u003cbr\u003eportions of the premises, and that may allow customers in either portion of the premises access\u003cbr\u003eto the other portion.5-02-03. Local license fees. The fee for an annual local on and off sale liquor licensemust be set by ordinance or resolution at not less than two hundred dollars nor more than two\u003cbr\u003ethousand dollars, except outside the corporate limits of a city the fee shall not exceed one\u003cbr\u003ethousand dollars.The fee for an annual on and off sale local beer license must be set byordinance or resolution at not less than fifty dollars nor more than five hundred dollars. The fee\u003cbr\u003efor an annual local exclusive on sale liquor license must be set by ordinance or resolution at notPage No. 3less than two hundred dollars nor more than two thousand dollars, except outside the corporate\u003cbr\u003elimits of a city the fee must not exceed one thousand dollars.The fee for an annual localexclusive on sale local beer license must be set by ordinance or resolution at not less than fifty\u003cbr\u003edollars nor more than five hundred dollars. The fee for an annual local exclusive off sale beer or\u003cbr\u003eoff sale liquor license must not be more than the fee charged for an on and off sale license. The\u003cbr\u003elocal governing body may by ordinance or resolution provide for issuance of licenses for any\u003cbr\u003eperiod not to exceed one year and may allow for proration and refunds of license fees.Inaddition to any other license fee permitted by this section, a license fee may be increased by not\u003cbr\u003emore than five dollars for each Sunday the licensee sells alcoholic beverages.5-02-04. State license fee. The fee for an annual state beer or liquor license is fiftydollars each, except in cities over five hundred population at the last federal decennial census,\u003cbr\u003ethe fee is one hundred dollars for each license. The fee for an annual state license will be\u003cbr\u003echarged on a calendar-year basis. License fees will be prorated from the first day of the month in\u003cbr\u003ewhich the license is issued up to the last day of the month in which such license expires, except\u003cbr\u003ethat no license fee will be less than twenty-five dollars. A reinstatement fee of one hundred\u003cbr\u003edollars is required in addition to the annual license fee for each license renewal applied for after\u003cbr\u003eDecember thirty-first.5-02-05.Dispensing prohibited on certain days - Penalty.A person may notdispense or permit the consumption of alcoholic beverages on a licensed premises between\u003cbr\u003etwo a.m. and twelve noon on Sundays, between the hours of two a.m. and eight a.m. on all other\u003cbr\u003edays of the week, or on Christmas Day or after six p.m. on Christmas Eve. In addition, a person\u003cbr\u003emay not provide off sale after two a.m. on Thanksgiving Day. A person that violates this section\u003cbr\u003eis guilty of a class A misdemeanor.5-02-05.1. Sunday alcoholic beverage permit - Penalty.1.Any local governing body may issue a Sunday alcoholic beverage permit to a\u003cbr\u003equalified alcoholic beverage licensee licensed under this chapter or to a publicly\u003cbr\u003eowned or operated facility.For purposes of this section, \u0026quot;qualified alcoholicbeverage licensee\u0026quot; has the same meaning as in section 5-02-01.1. A county may\u003cbr\u003enot issue a permit under this section to a retail alcoholic beverage establishment\u003cbr\u003elocated within the geographical boundaries of a city.2.The authority for issuing the permit rests solely with the local governing body. A\u003cbr\u003epermit may be granted only upon proper application to and approval by the\u003cbr\u003egoverning body and must include payment of a fee determined by the governing\u003cbr\u003ebody. A permit granted by the local governing body may be effective for more than\u003cbr\u003eone Sunday.3.Under the permit, alcoholic beverages may be distributed and dancing may be\u003cbr\u003epermitted in the establishment or facility.A local governing body may permitdancing and the distribution of alcoholic beverages between the hours of twelve\u003cbr\u003enoon on Sunday and two a.m. on Monday. The general public may be permitted to\u003cbr\u003eparticipate in the consumption of alcoholic beverages distributed under the authority\u003cbr\u003eof the permit.The establishment or facility granted the permit shall enforce therequirements of this section.4.Any person who dispenses, sells, or permits the consumption of alcoholic beverages\u003cbr\u003ein violation of this section, or who furnishes information required by this section\u003cbr\u003ewhich is false or misleading, is guilty of a class A misdemeanor.5-02-05.2. Local approval of Sunday beer and wine sales by eating establishments- Fee. 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