CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the ordinance amending Title 3 (Business and License Regulations), Chapter 3 (Liquor and Tobacco Control), Section 3-3-8 (Personnel Restrictions for Liquor Licenses) and Section 3-3-12 (Additional Liquor License Restrictions) of the Naperville Municipal Code to require Naperville BASSET training, fingerprinting and background checks, and dram shop insurance from third-party promoters as well as making third-party promoters liable for their employees' actions (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Lutzke, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On February 3, 2022 the Liquor Commission unanimously approved the proposed amendments.
BACKGROUND:
The Liquor Code's special event permit allows local not-for-profits to hold two fundraising events each year that permit the sale and service of alcohol for consumption on-site at the event. Illinois is a dual-licensing state, which means that liquor retailers, including special event retailers, must possess both a state and local liquor license to legally sell alcohol. Local not-for-profits will sometimes work with a third-party promoter, an unlicensed person or entity that assists in marketing, operating or organizing event.
In summer of 2021, there were several new special events in the City with new third-party promoters that were unfamiliar with the Naperville Liquor Code and Liquor Commission rules. The City received complaints about the sale and service of alcohol at those events. Thereafter, the Liquor Commission considered changes to the Naperville Municipal Code and to the Rules adopted by the Naperville Liquor Commissioner that would provide more oversight of third-party promoters.
DISCUSSION:
At its November 4, 2021 meeting, the Liquor Commission adopted a new internal rule requiring that prior to all new special events, the not-for-profit licensee and any th...
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