1.1                          A bill for an act
  1.2             relating to alcoholic beverages; modifying eligibility 
  1.3             for manufacturer and wholesaler licenses; clarifying 
  1.4             requirements for selling or furnishing alcoholic 
  1.5             beverages; allowing bed and breakfast facilities to 
  1.6             furnish wine to guests without a license under certain 
  1.7             circumstances; regulating on-sale intoxicating liquor 
  1.8             license fees; exempting certain types of wine tastings 
  1.9             from statutory restrictions; allowing off-sale 
  1.10            retailers to offer samples of distilled spirits; 
  1.11            allowing brewers to furnish beer directly to retailers 
  1.12            for tastings; allowing off-sale retailers to sell 
  1.13            distilled spirits in 50 milliliter bottles; allowing 
  1.14            on-sale retailers to prohibit the carrying of 
  1.15            alcoholic beverages onto the licensed premises; 
  1.16            specifying items that may be sold in municipal liquor 
  1.17            stores; removing references to nonintoxicating malt 
  1.18            liquor from statute, rules, and local licenses; 
  1.19            authorizing on-sale licenses for tour boats on the St. 
  1.20            Croix and Mississippi rivers; requiring establishments 
  1.21            selling alcoholic beverages to post certain signs; 
  1.22            directing commissioners of public safety and health to 
  1.23            design the signs; providing for division of tour boat 
  1.24            license fees; authorizing additional on-sale licenses 
  1.25            in West St. Paul and Eagan; authorizing seasonal 
  1.26            on-sale license in Wadena; repealing special law 
  1.27            restricting on-sale licenses in Thief River Falls; 
  1.28            amending Minnesota Statutes 1994, sections 340A.301, 
  1.29            subdivision 2; 340A.404, subdivision 8; 340A.408, 
  1.30            subdivisions 2 and 4; 340A.410, by adding a 
  1.31            subdivision; 340A.411, subdivision 1, and by adding a 
  1.32            subdivision; 340A.413, subdivision 4; 340A.418, 
  1.33            subdivision 2; 340A.510; and 340A.601, subdivision 1; 
  1.34            Minnesota Statutes 1995 Supplement, section 340A.401; 
  1.35            proposing coding for new law in Minnesota Statutes, 
  1.36            chapter 340A; repealing Minnesota Statutes 1994, 
  1.37            sections 144.3871; and 340A.410, subdivision 4a; Laws 
  1.38            1974, chapter 452. 
  1.39  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.40     Section 1.  Minnesota Statutes 1994, section 340A.301, 
  1.41  subdivision 2, is amended to read: 
  1.42     Subd. 2.  [PERSONS ELIGIBLE.] Licenses under this section 
  2.1   may be issued only to a person who: 
  2.2      (1) is a citizen of the United States or a resident alien; 
  2.3      (2) is of good moral character and repute; 
  2.4      (3) (2) is 21 years of age or older; 
  2.5      (4) (3) has not had a license issued under this chapter 
  2.6   revoked within five years of the date of license application, or 
  2.7   to any person who at the time of the violation owns any 
  2.8   interest, whether as a holder of more than five percent of the 
  2.9   capital stock of a corporation licensee, as a partner or 
  2.10  otherwise, in the premises or in the business conducted thereon, 
  2.11  or to a corporation, partnership, association, enterprise, 
  2.12  business, or firm in which any such person is in any manner 
  2.13  interested; and 
  2.14     (5) (4) has not been convicted within five years of the 
  2.15  date of license application of a felony, or of a willful 
  2.16  violation of a federal or state law, or local ordinance 
  2.17  governing the manufacture, sale, distribution, or possession for 
  2.18  sale or distribution of alcoholic beverages. 
  2.19     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.20  340A.401, is amended to read: 
  2.21     340A.401 [LICENSE REQUIRED.] 
  2.22     Except as provided in this chapter, no person may directly 
  2.23  or indirectly, on any pretense or by any device, sell, barter, 
  2.24  keep for sale, charge for possession, or otherwise dispose of 
  2.25  alcoholic beverages as part of a commercial transaction without 
  2.26  having obtained a the required license or permit. 
  2.27     Sec. 3.  [340A.4011] [BED AND BREAKFAST FACILITIES; WHEN 
  2.28  LICENSE NOT REQUIRED.] 
  2.29     Subdivision 1.  [DEFINITION.] For purposes of this section 
  2.30  "bed and breakfast facility" means a place of lodging that (1) 
  2.31  provides not more than eight rooms for rent to no more than 20 
  2.32  guests at a time, (2) is the owner's personal residence and is 
  2.33  occupied by the owner at the time of rental, (3) provides no 
  2.34  meals, other than breakfast served to persons who rent rooms, 
  2.35  and (4) was originally built and occupied as, or was converted 
  2.36  to, a single-family residence prior to being used as a place of 
  3.1   lodging. 
  3.2      Subd. 2.  [LICENSE NOT REQUIRED.] (a) Notwithstanding 
  3.3   section 340A.401, no license under this chapter is required for 
  3.4   a bed and breakfast facility to provide at no additional charge 
  3.5   to a person renting a room at the facility not more than two 
  3.6   glasses per day each containing not more than four fluid ounces 
  3.7   of wine.  Wine so furnished may be consumed only on the premises 
  3.8   of the bed and breakfast facility. 
  3.9      (b) A bed and breakfast facility may furnish wine under 
  3.10  paragraph (a) only if the facility is registered with the 
  3.11  commissioner.  Application for such registration must be on a 
  3.12  form the commissioner provides.  The commissioner may revoke 
  3.13  registration under this paragraph for any violation of this 
  3.14  chapter or a rule adopted under this chapter. 
  3.15     Sec. 4.  Minnesota Statutes 1994, section 340A.404, 
  3.16  subdivision 8, is amended to read: 
  3.17     Subd. 8.  [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI 
  3.18  RIVER TOUR BOATS.] (a) The commissioner may issue an on-sale 
  3.19  intoxicating liquor license to a person regularly engaged, on an 
  3.20  annual or seasonal basis, in the business of offering tours by 
  3.21  boat on Lake Superior and adjacent bays, the St. Croix river, 
  3.22  and the Mississippi river.  The license shall authorize the sale 
  3.23  of intoxicating liquor between May 1 and October 1 for 
  3.24  consumption on the boat while underway or attached to a dock or 
  3.25  other mooring.  No license may be issued unless each boat used 
  3.26  in the tour business regularly sells meals in the place where 
  3.27  intoxicating liquor is sold. 
  3.28     (b) All sales of intoxicating liquor made on a boat while 
  3.29  it is attached to a dock or other mooring are subject to any 
  3.30  restrictions on the sale of liquor prescribed by the governing 
  3.31  body of the city where the boat is attached, or of a county when 
  3.32  it is attached outside a city.  A governing body may prohibit 
  3.33  liquor sales within its jurisdiction but may not require an 
  3.34  additional license, or require a fee or occupation tax, for the 
  3.35  sales.  
  3.36     (c) If a boat is moored for a period of at least three 
  4.1   consecutive months, the city may require the boat to obtain an 
  4.2   on-sale intoxicating liquor license from the city, and the fee 
  4.3   charged for the license must not exceed one-half the fee charged 
  4.4   for a comparable annual on-sale intoxicating liquor license. 
  4.5      Sec. 5.  Minnesota Statutes 1994, section 340A.408, 
  4.6   subdivision 2, is amended to read: 
  4.7      Subd. 2.  [INTOXICATING LIQUOR; ON-SALE.] (a) The license 
  4.8   fee for a retail on-sale intoxicating liquor license is the fee 
  4.9   set by the city or county issuing the license subject to the 
  4.10  limitations imposed under this subdivision.  The license fee is 
  4.11  intended to cover the costs of (1) issuing and inspecting and 
  4.12  other directly related costs of enforcement the license, (2) 
  4.13  conducting an annual inspection of the licensed premises, and (3)
  4.14  investigating alleged violations of law or rule at the licensed 
  4.15  premises where a reasonable belief of a violation exists. 
  4.16     (b) The annual license fee for an on-sale intoxicating 
  4.17  liquor license issued by a municipality to a club must be no 
  4.18  greater than: 
  4.19     (1) $300 for a club with under 200 members; 
  4.20     (2) $500 for a club with between 201 and 500 members; 
  4.21     (3) $650 for a club with between 501 and 1,000 members; 
  4.22     (4) $800 for a club with between 1,001 and 2,000 members; 
  4.23     (5) $1,000 for a club with between 2,001 and 4,000 members; 
  4.24     (6) $2,000 for a club with between 4,001 and 6,000 members; 
  4.25  or 
  4.26     (7) $3,000 for a club with over 6,000 members. 
  4.27     (c) The license fee for the issuance of a wine license may 
  4.28  not exceed one-half of the license fee charged for an on-sale 
  4.29  intoxicating liquor license, or $2,000, whichever is less. 
  4.30     (d) The town board of a town in which an on-sale 
  4.31  establishment has been licensed by a county may impose an 
  4.32  additional license fee on each such establishment in an amount 
  4.33  not to exceed 20 percent of the county license fee. 
  4.34     Sec. 6.  Minnesota Statutes 1994, section 340A.408, 
  4.35  subdivision 4, is amended to read: 
  4.36     Subd. 4.  [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI 
  5.1   RIVER TOUR BOATS; COMMON CARRIERS.] (a) The annual license fee 
  5.2   for licensing of Lake Superior, St. Croix river, and Mississippi 
  5.3   river tour boats under section 340A.404, subdivision 8, shall be 
  5.4   $1,000.  The commissioner shall transmit one-half of this fee to 
  5.5   the governing body of the city that is the home port of the tour 
  5.6   boat, or to the county in which the home port is located if the 
  5.7   home port is outside a city. 
  5.8      (b) The annual license fee for common carriers licensed 
  5.9   under section 340A.407 is: 
  5.10     (1) $50 for 3.2 percent malt liquor, and $20 for a 
  5.11  duplicate license; and 
  5.12     (2) $200 for intoxicating liquor, and $20 for a duplicate 
  5.13  license. 
  5.14     Sec. 7.  Minnesota Statutes 1994, section 340A.410, is 
  5.15  amended by adding a subdivision to read: 
  5.16     Subd. 4b.  [NOTICE POSTING.] (a) A premises licensed for 
  5.17  the retail sale of alcoholic beverages and a municipal liquor 
  5.18  store must post and maintain in a conspicuous place within the 
  5.19  licensed premises clearly visible to consumers:  one sign 14-1/2 
  5.20  inches wide by 8 inches high as designed by the commissioners of 
  5.21  health and public safety, which incorporates the following 
  5.22  information:  (1) the penalties of driving while under the 
  5.23  influence of alcohol; (2) penalties for serving alcoholic 
  5.24  beverages to a person who is obviously intoxicated or under 21 
  5.25  years of age; and (3) a warning statement regarding drinking 
  5.26  alcohol while pregnant. 
  5.27     (b) The commissioners of health and public safety shall 
  5.28  design a sign that complies with this subdivision and shall make 
  5.29  the sign available for reproduction.  A retail licensee or 
  5.30  municipal liquor store may not modify the sign design, but may 
  5.31  modify the color.  
  5.32     Sec. 8.  Minnesota Statutes 1994, section 340A.411, 
  5.33  subdivision 1, is amended to read: 
  5.34     Subdivision 1.  [ON-SALE LICENSES.] On-sale nonintoxicating 
  5.35  3.2 percent malt liquor licenses may only be issued to 
  5.36  drugstores, restaurants, hotels, clubs, bowling centers, and 
  6.1   establishments used exclusively for the sale of 3.2 percent malt 
  6.2   liquor with the incidental sale of tobacco and soft drinks. 
  6.3      Sec. 9.  Minnesota Statutes 1994, section 340A.411, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 3.  [TERMINOLOGY.] A political subdivision may not 
  6.6   issue a 3.2 percent malt liquor license that includes the term 
  6.7   "nonintoxicating liquor." 
  6.8      Sec. 10.  Minnesota Statutes 1994, section 340A.413, 
  6.9   subdivision 4, is amended to read: 
  6.10     Subd. 4.  [EXCLUSIONS FROM LICENSE LIMITS.] On-sale 
  6.11  intoxicating liquor licenses may be issued to the following 
  6.12  entities by a city, in addition to the number authorized by this 
  6.13  section: 
  6.14     (1) clubs, or congressionally chartered veterans 
  6.15  organizations; 
  6.16     (2) restaurants located at a racetrack licensed under 
  6.17  chapter 240; 
  6.18     (3) establishments that are issued licenses to sell wine 
  6.19  under section 340A.404, subdivision 5; and 
  6.20     (4) Lake Superior tour boats that are issued licenses under 
  6.21  section 340A.404, subdivision 8; and 
  6.22     (5) theaters that are issued licenses under section 
  6.23  340A.404, subdivision 2. 
  6.24     Sec. 11.  Minnesota Statutes 1994, section 340A.418, 
  6.25  subdivision 2, is amended to read: 
  6.26     Subd. 2.  [TASTINGS AUTHORIZED.] (a) A charitable, 
  6.27  religious, or other nonprofit organization may conduct a wine 
  6.28  tasting on premises the organization owns or leases or has use 
  6.29  donated to it, or on the licensed premises of a holder of an 
  6.30  on-sale intoxicating liquor license that is not a temporary 
  6.31  license, if the organization holds a temporary on-sale 
  6.32  intoxicating liquor license under section 340A.404, subdivision 
  6.33  10, and complies with this section.  An organization holding a 
  6.34  temporary license may be assisted in conducting the wine tasting 
  6.35  by another nonprofit organization. 
  6.36     (b) An organization that conducts a wine tasting under this 
  7.1   section may use the net proceeds from the wine tasting only for: 
  7.2      (1) the organization's primary nonprofit purpose; or 
  7.3      (2) donation to another nonprofit organization assisting in 
  7.4   the wine tasting, if the other nonprofit organization uses the 
  7.5   donation only for that organization's primary nonprofit purpose. 
  7.6      (c) No wine at a wine tasting under this section may be 
  7.7   sold, or orders taken, for off-premise off-premises consumption. 
  7.8      (d) Notwithstanding any other law, an organization may 
  7.9   purchase or otherwise obtain wine for a wine tasting conducted 
  7.10  under this section from a wholesaler licensed to sell wine, and 
  7.11  the wholesaler may sell or give wine to an organization for a 
  7.12  wine tasting conducted under this section and may provide 
  7.13  personnel to assist in the wine tasting.  A wholesaler who sells 
  7.14  or gives wine to an organization for a wine tasting under this 
  7.15  section must deliver the wine directly to the location where the 
  7.16  wine tasting is conducted. 
  7.17     (e) This section does not prohibit or restrict a wine 
  7.18  tasting that is: 
  7.19     (1) located on on-sale premises where no charitable 
  7.20  organization is participating; or 
  7.21     (2) located on on-sale premises where the proceeds are for 
  7.22  a designated charity but where the tasting is primarily for 
  7.23  educational purposes. 
  7.24     Sec. 12.  Minnesota Statutes 1994, section 340A.510, is 
  7.25  amended to read: 
  7.26     340A.510 [SAMPLES.] 
  7.27     Subdivision 1.  [SAMPLES AUTHORIZED.] Off-sale licenses and 
  7.28  municipal liquor stores may provide samples of malt liquor, 
  7.29  wine, liqueurs, and cordials, and distilled spirits which the 
  7.30  licensee or municipal liquor store currently has in stock and is 
  7.31  offering for sale to the general public without obtaining an 
  7.32  additional license, provided the wine, liqueur, and cordial 
  7.33  samples are dispensed at no charge and consumed on the licensed 
  7.34  premises during the permitted hours of off-sale in a quantity 
  7.35  less than 100 milliliters of malt liquor per variety per 
  7.36  customer, 50 milliliters of wine per variety per customer and, 
  8.1   25 milliliters of liqueur or cordial, and 15 milliliters of 
  8.2   distilled spirits per variety per customer. 
  8.3      Subd. 2.  [MALT LIQUOR FURNISHED FOR SAMPLING.] (a) 
  8.4   Notwithstanding section 340A.308, with respect only to sampling 
  8.5   authorized under subdivision 1, a brewer may furnish at no cost 
  8.6   to an off-sale retailer malt liquor the brewer manufactures if: 
  8.7      (1) the malt liquor is dispensed by the retailer only for 
  8.8   tastings authorized under subdivision 1; 
  8.9      (2) the retailer makes available for return to the brewer 
  8.10  any unused malt liquor and empty containers; 
  8.11     (3) the samples are dispensed by an employee of the 
  8.12  retailer, or by a sampling service retained by the retailer and 
  8.13  not affiliated directly or indirectly with a brewer or malt 
  8.14  liquor wholesaler; 
  8.15     (4) the brewer furnishes not more than three cases of malt 
  8.16  liquor to the retailer for each sampling; 
  8.17     (5) each sampling continues for not more than eight hours; 
  8.18     (6) the brewer has furnished malt liquor for not more than 
  8.19  five samplings for any retailer in any calendar year; 
  8.20     (7) the brewer delivers the malt liquor for the sampling to 
  8.21  its exclusive wholesaler for that malt liquor; 
  8.22     (8) the brewer has at least seven days before the sampling 
  8.23  filed with the commissioner, on a form the commissioner 
  8.24  prescribes, written notice of intent to furnish malt liquor for 
  8.25  the sampling, which contains (i) the name and address of the 
  8.26  retailer conducting the sampling, (ii) the amount of malt liquor 
  8.27  being furnished by the brewer, (iii) the number of times the 
  8.28  brewer has furnished malt liquor to the retailer in the calendar 
  8.29  year in which the notice is filed, (iv) the date and time of the 
  8.30  sampling, (v) the exclusive wholesaler to whom the brewer will 
  8.31  deliver the malt liquor, and (vi) a statement by the brewer to 
  8.32  the effect that to the brewer's knowledge all requirements of 
  8.33  this section have been or will be complied with; and 
  8.34     (9) the commissioner has not notified the brewer filing the 
  8.35  notice under clause (8) that the commissioner disapproves the 
  8.36  notice. 
  9.1      (b) For purposes of this subdivision "retailer" means a 
  9.2   licensed off-sale retailer of alcoholic beverages and a 
  9.3   municipal liquor store that sells at off-sale. 
  9.4      Sec. 13.  [340A.511] [CERTAIN SIZES MAY BE SOLD.] 
  9.5      Notwithstanding any rule of the commissioner of public 
  9.6   safety, an off-sale retailer of intoxicating liquor may sell 
  9.7   distilled spirits in bottles of 50 milliliters. 
  9.8      Sec. 14.  [340A.512] [CONTAINERS BROUGHT INTO PREMISES.] 
  9.9      A licensed retailer of alcoholic beverages may prohibit any 
  9.10  person from bringing into the licensed premises any container of 
  9.11  alcoholic beverages, or from consuming from such a container on 
  9.12  the licensed premises, without the licensee's permission. 
  9.13     Sec. 15.  Minnesota Statutes 1994, section 340A.601, 
  9.14  subdivision 1, is amended to read: 
  9.15     Subdivision 1.  [AUTHORITY.] A city having a population of 
  9.16  not more than 10,000 may establish, own, and operate a municipal 
  9.17  liquor store which may sell at retail intoxicating liquor, 3.2 
  9.18  percent malt liquor, tobacco products, ice, soft drinks, 
  9.19  beverages for mixing intoxicating liquor, and food for 
  9.20  consumption on the premises alcoholic beverages and (1) in the 
  9.21  case of a municipal liquor store that sells at off-sale only, 
  9.22  all items that may lawfully be sold in an exclusive liquor store 
  9.23  under section 340A.412, subdivision 14, or (2) in the case of a 
  9.24  municipal liquor store that sells at on-sale only, or at on- and 
  9.25  off-sale, any item that may lawfully be sold in an establishment 
  9.26  with an on-sale intoxicating liquor license.  A municipal liquor 
  9.27  store may also offer recorded or live entertainment and make 
  9.28  available coin-operated amusement devices. 
  9.29     Sec. 16.  [WEST ST. PAUL; LICENSES AUTHORIZED.] 
  9.30     Notwithstanding any other law, the city of West St. Paul 
  9.31  may issue not more than 18 on-sale intoxicating liquor licenses. 
  9.32  All provisions of Minnesota Statutes, chapter 340A, not 
  9.33  inconsistent with this section, apply to the licenses authorized 
  9.34  by this section. 
  9.35     Sec. 17.  [WADENA; SEASONAL LICENSES.] 
  9.36     Notwithstanding any other law, the city of Wadena may issue 
 10.1   one seasonal on-sale intoxicating liquor license in addition to 
 10.2   the number of on-sale intoxicating liquor licenses authorized by 
 10.3   law.  The license authorized by this section is valid for a 
 10.4   period to be determined by the city, not to exceed nine months.  
 10.5   Not more than one license may be issued under this section for 
 10.6   any one premise during any consecutive 12-month period.  All 
 10.7   provisions of Minnesota Statutes, chapter 340A, not inconsistent 
 10.8   with this section, apply to the license authorized by this 
 10.9   section. 
 10.10     Sec. 18.  [EAGAN; LICENSES AUTHORIZED.] 
 10.11     Notwithstanding any other law, the city of Eagan may issue 
 10.12  not more than 26 on-sale intoxicating liquor licenses.  All 
 10.13  provisions of Minnesota Statutes, chapter 340A, not inconsistent 
 10.14  with this section, apply to the licenses authorized by this 
 10.15  section. 
 10.16     Sec. 19.  [REPEALER.] 
 10.17     Minnesota Statutes 1994, sections 144.3871; and 340A.410, 
 10.18  subdivision 4a, are repealed.  Laws 1974, chapter 452, is 
 10.19  repealed. 
 10.20     Sec. 20.  [INSTRUCTION TO REVISOR.] 
 10.21     The revisor of statutes shall change the words 
 10.22  "nonintoxicating liquor" to "3.2 percent malt liquor" wherever 
 10.23  they appear in Minnesota Statutes and Minnesota Rules. 
 10.24     Sec. 21.  [EFFECTIVE DATE.] 
 10.25     Sections 3, 12, 13, 14, and 15 are effective the day 
 10.26  following final enactment.  Section 5 is effective June 1, 
 10.27  1996.  Section 16 is effective on approval by the West St. Paul 
 10.28  city council and compliance with Minnesota Statutes, section 
 10.29  645.021.  Section 17 is effective on approval by the Wadena city 
 10.30  council and compliance with Minnesota Statutes, section 
 10.31  645.021.  Section 18 is effective on approval by the Eagan city 
 10.32  council and compliance with Minnesota Statutes, section 645.021.