HF 1476

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:27pm

1.1A bill for an act

1.2relating to liquor; modifying and clarifying certain licensing requirements;
1.3authorizing various licenses; modifying provision relating to shipments into the
1.4state; providing for wine tastings; extending certain on-sale hours;amending
1.5Minnesota Statutes 2008, sections 340A.101, by adding a subdivision; 340A.301,
1.6subdivision 4; 340A.315, subdivisions 2, 7; 340A.401; 340A.404, subdivisions
1.71, 4, 4a; 340A.412, subdivision 14; 340A.414, subdivision 1; 340A.417;
1.8340A.419, subdivision 2; proposing coding for new law in Minnesota Statutes,
1.9chapter 340A.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. Minnesota Statutes 2008, section 340A.101, is amended by adding a
1.12subdivision to read:
1.13    Subd. 31. Public facility. "Public facility" is a park, community center, or other
1.14accommodation or facility owned or managed by or on behalf of a subdivision of the state,
1.15including any county, city, town, township, or independent district of the state.

1.16    Sec. 2. Minnesota Statutes 2008, section 340A.301, subdivision 4, is amended to read:
1.17    Subd. 4. Bond. The commissioner may not issue a license under this section to a
1.18person who has not filed a bond with corporate surety, or cash, or United States government
1.19bonds payable to the state. The proof of financial responsibility must be approved by the
1.20commissioner before the license is issued. The bond must be conditioned on the licensee
1.21obeying all laws governing the business and paying when due all taxes, fees, penalties and
1.22other charges, and must provide that it is forfeited to the state on a violation of law. This
1.23subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315,
1.24that is in existence as of January 1, 2010. Bonds must be in the following amounts:

2.1 2.2		Manufacturers and wholesalers of intoxicating liquor except as provided in this subdivision		$	10,000
2.3 2.4		Manufacturers and wholesalers of wine up to 25 percent alcohol by weight		$	5,000
2.5 2.6		Manufacturers and wholesalers of beer of more than 3.2 percent alcohol by weight		$	1,000

2.7    Sec. 3. Minnesota Statutes 2008, section 340A.315, subdivision 2, is amended to read:
2.8    Subd. 2. Sales. A license authorizes the sale, on the farm winery premises, of table,
2.9sparkling, or fortified wines produced by that farm winery at on-sale or off-sale, in retail,
2.10or wholesale lots in total quantities not in excess of 50,000 gallons in a calendar year,
2.11glassware, wine literature and accessories, cheese and cheese spreads, other wine-related
2.12food items, and the dispensing of free samples of the wines offered for sale. Sales at
2.13on-sale and off-sale may be made on Sundays between 12:00 noon 10:00 a.m. and
2.1412:00 midnight. Labels for each type or brand produced must be registered with the
2.15commissioner, without fee prior to sale. A farm winery may provide samples of distilled
2.16spirits manufactured pursuant to subdivision 7, on the farm winery premises, but may
2.17sell the distilled spirits only through a licensed wholesaler. Samples of distilled spirits
2.18may not exceed 15 milliliters per variety.

2.19    Sec. 4. Minnesota Statutes 2008, section 340A.315, subdivision 7, is amended to read:
2.20    Subd. 7. Distilled spirits permitted. Farm wineries licensed under this section are
2.21permitted to manufacture distilled spirits as defined under section 340A.101, subdivision
2.229, which may exceed 25 percent alcohol by volume, made from Minnesota-produced or
2.23-grown grapes, grape juice, other fruit bases, or honey. The following conditions pertain:
2.24    (1) no farm winery or firm owning multiple farm wineries may manufacture more
2.25than 5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of
2.26the 50,000 gallon limit found in subdivision 2;
2.27    (2) farm wineries must pay an additional annual fee of $500 $50 to the commissioner
2.28before beginning production of distilled spirits; and
2.29    (3) farm wineries may not sell or produce distilled spirits for direct sale to
2.30manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

2.31    Sec. 5. Minnesota Statutes 2008, section 340A.401, is amended to read:
2.32340A.401 LICENSE REQUIRED.
2.33Except as provided in this chapter, no person may directly or indirectly, on any
2.34pretense or by any device, sell, barter, keep for sale, charge for possession, or otherwise
3.1dispose of alcoholic beverages as part of a commercial transaction without having
3.2obtained the required license or permit. Rental of or permission to use a public facility is
3.3not a commercial transaction for the purposes of this chapter.

3.4    Sec. 6. Minnesota Statutes 2008, section 340A.404, subdivision 1, is amended to read:
3.5    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to
3.6the following establishments located within its jurisdiction:
3.7(1) hotels;
3.8(2) restaurants;
3.9(3) bowling centers;
3.10(4) clubs or congressionally chartered veterans organizations with the approval of
3.11the commissioner, provided that the organization has been in existence for at least three
3.12years and liquor sales will only be to members and bona fide guests, except that a club
3.13may permit the general public to participate in a wine tasting conducted at the club under
3.14section 340A.419;
3.15(5) sports facilities located on land owned by the Metropolitan Sports Commission;
3.16and
3.17(6) exclusive liquor stores.
3.18(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
3.19or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
3.20ordinance, or charter provision. A license issued under this paragraph authorizes sales on
3.21all days of the week to persons attending events at the theater.
3.22(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
3.23an on-sale malt liquor license to a convention center within the city, notwithstanding any
3.24law, local ordinance, or charter provision. A license issued under this paragraph authorizes
3.25sales on all days of the week to persons attending events at the convention center. This
3.26paragraph does not apply to convention centers located in the seven-county metro area.
3.27EFFECTIVE DATE.This section is effective the day following final enactment.

3.28    Sec. 7. Minnesota Statutes 2008, section 340A.404, subdivision 4, is amended to read:
3.29    Subd. 4. Special provisions; sports, conventions, or cultural facilities;
3.30community festivals. (a) The governing body of a municipality may authorize a holder of
3.31a retail on-sale intoxicating liquor license issued by the municipality or by an adjacent
3.32municipality to dispense intoxicating liquor at any convention, banquet, conference,
3.33meeting, or social affair conducted on the premises of a sports, convention, or cultural
3.34facility owned by the municipality or instrumentality thereof having independent
4.1policy-making and appropriating authority and located within the municipality. The
4.2licensee must be engaged to dispense intoxicating liquor at an event held by a person or
4.3organization permitted to use the premises, and may dispense intoxicating liquor only to
4.4persons attending the event. The licensee may not dispense intoxicating liquor to any
4.5person attending or participating in an a youth amateur athletic event, for persons 18 years
4.6of age or younger, held on the premises.
4.7(b) The governing body of a municipality may authorize a holder of a retail on-sale
4.8intoxicating liquor license issued by the municipality to dispense intoxicating liquor
4.9off premises at a community festival held within the municipality. The authorization
4.10shall specify the area in which the intoxicating liquor must be dispensed and consumed,
4.11and shall not be issued unless the licensee demonstrates that it has liability insurance as
4.12prescribed by section 340A.409 to cover the event.

4.13    Sec. 8. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to read:
4.14    Subd. 4a. State-owned recreation; entertainment facilities. (a) Notwithstanding
4.15any other law, local ordinance, or charter provision, the commissioner may issue on-sale
4.16intoxicating liquor licenses:
4.17    (1) to the state agency administratively responsible for, or to an entity holding a
4.18concession or facility management contract with such agency for beverage sales at, the
4.19premises of any Giants Ridge Recreation Area building or recreational improvement area
4.20owned by the state in the town of White, St. Louis County;
4.21    (2) to the state agency administratively responsible for, or to an entity holding a
4.22concession or facility management contract with such agency for beverage sales at, the
4.23premises of any Ironworld Discovery Center building or facility owned by the state at
4.24Chisholm; and
4.25    (3) to the Board of Regents of the University of Minnesota for events at Northrop
4.26Auditorium, the intercollegiate football stadium, or at no more than seven other locations
4.27within the boundaries of the University of Minnesota, provided that the Board of Regents
4.28has approved an application for a license for the specified location. provided that a license
4.29for an arena or stadium location is void unless it requires the sale or service of intoxicating
4.30liquor throughout the arena or stadium if intoxicating liquor is sold or served anywhere in
4.31the arena or stadium; and
4.32(4) to the Duluth Entertainment and Convention Center Authority for beverage
4.33sales on the premises of the Duluth Entertainment and Convention Center Arena during
4.34intercollegiate hockey games.
5.1    The commissioner shall charge a fee for licenses issued under this subdivision in an
5.2amount comparable to the fee for comparable licenses issued in surrounding cities.
5.3    (b) No alcoholic beverage may be sold or served at TCF Bank Stadium unless the
5.4Board of Regents holds an on-sale intoxicating liquor license for the stadium as provided
5.5in paragraph (a), clause (3).
5.6EFFECTIVE DATE.This section is effective the day following final enactment.

5.7    Sec. 9. Minnesota Statutes 2008, section 340A.412, subdivision 14, is amended to read:
5.8    Subd. 14. Exclusive liquor stores. (a) Except as otherwise provided in this
5.9subdivision, an exclusive liquor store may sell only the following items:
5.10(1) alcoholic beverages;
5.11(2) tobacco products;
5.12(3) ice;
5.13(4) beverages, either liquid or powder, specifically designated for mixing with
5.14intoxicating liquor;
5.15(5) soft drinks;
5.16(6) liqueur-filled candies;
5.17(7) food products that contain more than one-half of one percent alcohol by volume;
5.18(8) cork extraction devices;
5.19(9) books and videos on the use of alcoholic beverages;
5.20(10) magazines and other publications published primarily for information and
5.21education on alcoholic beverages; and
5.22(11) multiple use bags designed to carry purchased items;
5.23(12) devices designed to ensure safe storage and monitoring of alcohol in the home,
5.24to prevent access by underage drinkers; and
5.25(11) (13) home brewing equipment.
5.26(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
5.27license may sell food for on-premise consumption when authorized by the municipality
5.28issuing the license.
5.29(c) An exclusive liquor store may offer live or recorded entertainment.
5.30EFFECTIVE DATE.This section is effective the day following final enactment.

5.31    Sec. 10. Minnesota Statutes 2008, section 340A.414, subdivision 1, is amended to read:
5.32    Subdivision 1. Permit required. No business establishment or club which does
5.33not hold an on-sale intoxicating liquor license may directly or indirectly allow the
6.1consumption and display of alcoholic beverages or knowingly serve any liquid for the
6.2purpose of mixing with intoxicating liquor without first having obtained a permit from the
6.3commissioner. Rental of a public facility does not make a subdivision or the facility a
6.4"business establishment" for the purposes of this chapter.

6.5    Sec. 11. Minnesota Statutes 2008, section 340A.417, is amended to read:
6.6340A.417 SHIPMENTS INTO MINNESOTA.
6.7(a) Notwithstanding section 297G.07, subdivision 2, or any provision of this chapter,
6.8a winery licensed in a state other than Minnesota, or a winery located in Minnesota, may
6.9ship, for personal use and not for resale, not more than two cases of wine, containing a
6.10maximum of nine liters per case, in any calendar year to any resident of Minnesota age 21
6.11or over. Delivery of a shipment under this section may not be deemed a sale in this state.
6.12(b) The shipping container of any wine sent under this section must be clearly
6.13marked "Alcoholic Beverages: adult signature (over 21 years of age) required."
6.14(c) No person may (1) advertise shipments authorized under this section, (2) by
6.15advertisement or otherwise, solicit shipments authorized by this section, or (3) accept
6.16orders for shipments authorized by this section by use of the Internet. No shipper located
6.17outside Minnesota may advertise interstate reciprocal wine shipments in Minnesota.
6.18(d) It is not the intent of this section to impair the distribution of wine through
6.19distributors or importing distributors, but only to permit shipments of wine for personal
6.20use.
6.21(e) (d) No criminal penalty may be imposed on a person for a violation of this
6.22section other than a violation described in paragraph (f) (e) or (g) (f). Whenever it appears
6.23to the commissioner that any person has engaged in any act or practice constituting a
6.24violation of this section, and the violation is not within two years of any previous violation
6.25of this section, the commissioner shall issue and cause to be served upon the person an
6.26order requiring the person to cease and desist from violating this section. The order must
6.27give reasonable notice of the rights of the person to request a hearing and must state the
6.28reason for the entry of the order. Unless otherwise agreed between the parties, a hearing
6.29shall be held not later than seven days after the request for the hearing is received by the
6.30commissioner after which and within 20 days after the receipt of the administrative law
6.31judge's report and subsequent exceptions and argument, the commissioner shall issue an
6.32order vacating the cease and desist order, modifying it, or making it permanent as the facts
6.33require. If no hearing is requested within 30 days of the service of the order, the order
6.34becomes final and remains in effect until modified or vacated by the commissioner. All
6.35hearings shall be conducted in accordance with the provisions of chapter 14. If the person
7.1to whom a cease and desist order is issued fails to appear at the hearing after being duly
7.2notified, the person shall be deemed in default, and the proceeding may be determined
7.3against the person upon consideration of the cease and desist order, the allegations of
7.4which may be deemed to be true.
7.5(f) (e) Any person who violates this section within two years of a violation for which
7.6a cease and desist order was issued under paragraph (e) (d), is guilty of a misdemeanor.
7.7(g) (f) Any person who commits a third or subsequent violation of this section,
7.8including a violation for which a cease and desist order was issued under paragraph (c),
7.9within any subsequent two-year period is guilty of a gross misdemeanor.
7.10EFFECTIVE DATE.This section is effective the day following final enactment.

7.11    Sec. 12. Minnesota Statutes 2008, section 340A.419, subdivision 2, is amended to read:
7.12    Subd. 2. Tastings. (a) Notwithstanding any other law, an exclusive liquor store may
7.13conduct a wine tasting on the premises of a holder of an on-sale intoxicating liquor license
7.14that is not a temporary license or on the premises of a holder of a wine license under
7.15section 340A.404, subdivision 5, if the exclusive liquor store complies with this section.
7.16(b) No wine at a wine tasting under this section may be sold for off-premises
7.17consumption. A participant in the tasting may fill out a form indicating preferences for
7.18wine. The form may be held on the premises of the exclusive liquor store to assist the
7.19participant in making an off-sale purchase at a later date.
7.20(c) Notwithstanding any other law, an exclusive liquor store may purchase or
7.21otherwise obtain wine for a wine tasting conducted under this section from a wholesaler
7.22licensed to sell wine. The wholesaler may sell or give wine to an exclusive liquor store
7.23for a wine tasting conducted under this section and may provide personnel to assist
7.24in the wine tasting.
7.25(d) An exclusive liquor store that conducts a wine tasting under this section must use
7.26any fees collected from participants in the tasting only to defray the cost of conducting
7.27the tasting.
7.28    (e) Notwithstanding section 340A.409, subdivision 4, the premises on which a wine
7.29tasting is conducted must be insured as required by section 340A.409, subdivision 1.

7.30    Sec. 13. [340A.5041] AIRPORT COMMISSION; EXTENDED HOURS.
7.31Notwithstanding any law, rule, or ordinance to the contrary, the Metropolitan
7.32Airports Commission may allow extended hours of sale at on-sale locations within the
7.33security areas of the Lindbergh and Humphrey Terminals. Extended hours are allowed for
7.34sales during the hours between 6:00 a.m. and 2:00 a.m. Monday through Sunday.
8.1EFFECTIVE DATE.This section is effective the day following final enactment.

8.2    Sec. 14. AUGSBURG COLLEGE; ON-SALE LICENSE.
8.3Notwithstanding any other law, local ordinance, or charter provision, the city of
8.4Minneapolis may issue an on-sale intoxicating liquor license to Augsburg College, or to
8.5an entity holding a caterer's permit and a contract with Augsburg College, for catering on
8.6the premises of Augsburg College campus, or for any portion of the premises as described
8.7in the approved license application. The license authorized by this section may be issued
8.8for space that is not compact and contiguous, provided that all the space is within the
8.9boundaries of Augsburg College campus and is included in the description of the licensed
8.10premises on the approved license application. The license authorizes sales on all days of
8.11the week to persons attending events at the college. All other provisions of Minnesota
8.12Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized
8.13under this section.
8.14EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
8.15City Council in the manner provided by Minnesota Statutes, section 645.021,
8.16notwithstanding Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

8.17    Sec. 15. GRAND MARAIS; ON-SALE.
8.18Notwithstanding any law, local ordinance, or charter provision to the contrary, the
8.19city of Grand Marais may issue an on-sale intoxicating liquor license, or an on-sale wine
8.20license and an on-sale malt liquor license, to Holland Motel, Inc. d/b/a the Best Western
8.21Superior Inn and Suites located at 104 First Avenue East, Grand Marais, and an additional
8.22on-sale intoxicating liquor license, or on-sale wine and on-sale malt liquor license to East
8.23Bay Hospitality, LLC; d/b/a East Bay Suites located at 21 Wisconsin Street, Grand Marais.
8.24The license may authorize sales only to persons who are registered guests at the lodging
8.25establishment, their invitees, or persons attending a conference, meeting, or other event at
8.26the lodging establishment. The license may authorize sales on all days of the week.
8.27EFFECTIVE DATE.This section is effective the day following final enactment.

8.28    Sec. 16. CITY OF MINNEAPOLIS; LIQUOR LICENSE.
8.29Notwithstanding any law, ordinance, or charter provision to the contrary, the city
8.30of Minneapolis may issue an intoxicating liquor license to an establishment located at
8.312124 Como Avenue Southeast.
9.1EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
9.2City Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions
9.32 and 3.

9.4    Sec. 17. SUPERSEDING PROVISIONS.
9.5The provisions amending Minnesota Statutes, section 340A.404, subdivision 4a,
9.6in this act supersede any inconsistent or conflicting provisions in 2009 S.F. No. 2083, if
9.7enacted, regardless of the order of enactment or effective date of the provisions contained
9.8in this act and the provisions in S.F. No. 2083.