LOCAL CONTROL

The Legal Framework for Alcohol Regulation in the United States

In the United States, the distribution and use of alcoholic beverages is regulated by individual states. The Twenty-First Amendment to the U.S. Constitution grants the states broad regulatory powers over the importation and sale of alcoholic beverages. States, in turn, may grant authority to local communities to regulate many areas of alcohol sales and consumption. The level of regulatory control delegated to local communities varies, however, by state. In some states, cities and towns have the option to place a wide range of controls on the sale and distribution of alcohol. In other states, state law preempts local control; in other words, the state laws govern completely and therefore local communities cannot place controls on liquor licenses that are more strict than the state statutes.

Local Licensing Authority
In states that grant high levels of authority to local communities, regulation of alcohol can be accomplished through licensing ordinances. In order to sell or serve alcohol, a merchant must obtain a license from the local governing body. Without a license, all sale of alcohol is illegal. The purpose of licensing liquor establishments is to protect and promote public health, safety, morals, and welfare.

To reduce potential exposure to harm caused by the use of alcohol, local communities may place any reasonable restrictions on the liquor licenses it issues. For example, communities may limit the number and type of licenses, restrict the hours of sale, establish licensing fees, restrict the use of the premises on which the sale is licensed, and require training of the alcohol sellers/servers through the licensing process.

Local Zoning Authority
In states where local regulation of liquor licenses is limited, communities have placed restrictions on the sale and distribution of alcoholic beverages through zoning ordinances. Zoning imposes restrictions on the use of the land. The zoning power is the city's authority to regulate the use of property for the purpose of promoting health, safety, morals, or the general welfare of the community.

Through zoning, the city may regulate the size, construction, location, density and use of structures and land. Because alcohol is related to public health, cities may enact zoning ordinances regulating property used for the sale of alcohol. Use of zoning power to regulate alcohol requires evidence that the proposed ordinance would alleviate harms to the community.

The local decision to regulate alcohol through either licensing or zoning ordinances, or both, depends on the degree of authority granted to local governing bodies by the state. Communities in states that allow local control of alcohol should, in most cases, use licensing restrictions. These communities may also be able to place controls on alcohol through zoning ordinances. However, this process may be more complex and time-consuming since communities need to demonstrate the potential effectiveness of the ordinance in protecting the community prior to enactment. On the other hand, local communities in states that do not grant authority to municipalities to regulate alcohol may have no alternative but to use their zoning power. In some states, communities may need to use a combination of licensing and zoning ordinances to reduce alcohol-related problems if the state grants authority to local communities for some regulations through licensure but not others.

Local Police Authority
Activities related to alcohol consumption by underage youth may also be regulated under the general police authority of the city. The purpose of such regulation is simply to protect the general safety and welfare of the citizens of the city, including its citizens who are under the legal drinking age. Any regulation, however, must also be consistent with current federal and state laws.

Minnesota Framework
Municipalities in Minnesota have broad power to regulate the sale of alcoholic beverages through licensing ordinances. The state has granted local city councils the authority to pass ordinances regulating most conditions and activities under which alcohol is sold. Therefore, licensing ordinances are the primary means by which most communities in Minnesota regulate alcohol sales.

Under licensing law, the city council can permit the sale of alcohol only under conditions that the council reasonably believes will limit the negative effects of alcohol. A license to sell alcoholic beverages may be granted only with the consent of the city council. Any suspension or revocation of a liquor license is made by the city council and is final, unless it is so arbitrary that it violates the licensee's constitutional rights.

In addition, Minnesota law provides that each municipality be self-governing in matters of police and municipal jurisdiction as much as possible. Therefore, the municipalities also have broad authority to regulate activities related to underage drinking under their general local police power.

Finally, a community in Minnesota can entirely prohibit the sale of alcohol in their city through a local-option election.