1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; providing for permits 
  1.3             for alcoholic beverage manufacturer warehouses, 
  1.4             central distribution centers, or holding facilities; 
  1.5             allowing a municipality to authorize a holder of an 
  1.6             on-sale intoxicating liquor license to dispense 
  1.7             intoxicating liquor at community festivals; allowing 
  1.8             uniform licensing periods for holders of multiple 
  1.9             on-sale licenses; modifying liability insurance 
  1.10            requirements for liquor retailers; modifying shipping 
  1.11            restrictions for certain wineries; allowing 
  1.12            municipalities to authorize on-sale of 3.2 percent 
  1.13            malt liquor at 10 a.m. on Sundays; authorizing the 
  1.14            sale of intoxicating liquor at professional athletic 
  1.15            events in the St. Paul civic center; authorizing the 
  1.16            issuance of intoxicating liquor licenses to the 
  1.17            division of parks and recreation of the city of St. 
  1.18            Paul; authorizing the city of Moorhead to issue 
  1.19            additional on-sale licenses; modifying time of day 
  1.20            restrictions for the off-sale of intoxicating liquor 
  1.21            in municipal liquor stores in certain cities; 
  1.22            authorizing the city of Spring Lake Park to issue an 
  1.23            additional on-sale license; consolidating divisions in 
  1.24            the department of public safety; providing civil and 
  1.25            criminal penalties; amending Minnesota Statutes 1996, 
  1.26            sections 16B.54, subdivision 2; 43A.34, subdivision 4; 
  1.27            299A.02, subdivisions 1, 2, and 3; 299L.01, 
  1.28            subdivisions 1 and 2; 299L.02, subdivisions 4 and 5; 
  1.29            299L.03, subdivisions 1, 5, and 7; 340A.201; 340A.404, 
  1.30            subdivision 4, and by adding a subdivision; 340A.409, 
  1.31            subdivisions 1 and 4; 340A.417; and 340A.504, 
  1.32            subdivision 3; Laws 1969, chapter 783, section 1, 
  1.33            subdivision 1, as amended; and Laws 1990, chapter 554, 
  1.34            section 19; proposing coding for new law in Minnesota 
  1.35            Statutes, chapter 340A. 
  1.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.37                             ARTICLE 1
  1.38                   ALCOHOLIC BEVERAGE REGULATION
  1.39     Section 1.  [340A.3021] [IMPORTATION RESTRICTIONS.] 
  1.40     Subdivision 1.  [DELIVERY TO WHOLESALER ONLY.] (a) No 
  2.1   person may consign, ship, or deliver alcoholic beverages to any 
  2.2   place in Minnesota except to a licensed wholesaler's warehouse, 
  2.3   if the alcoholic beverages: 
  2.4      (1) were manufactured outside Minnesota; and 
  2.5      (2) have not previously been unloaded into a licensed 
  2.6   wholesaler's warehouse in Minnesota. 
  2.7      (b) No person may ship or consign into Minnesota any 
  2.8   alcoholic beverages manufactured outside the state unless the 
  2.9   alcoholic beverages are continuously in the possession of a 
  2.10  motor carrier of property as defined in section 221.011, 
  2.11  subdivision 47, or a common carrier as defined in section 
  2.12  218.011, subdivision 2, or are carried in a motor vehicle owned, 
  2.13  leased, or rented by a wholesaler licensed under this chapter, 
  2.14  between the time the alcoholic beverages are introduced into 
  2.15  Minnesota and the time they are unloaded into a licensed 
  2.16  wholesaler's warehouse. 
  2.17     Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
  2.18     (1) alcoholic beverages passing through Minnesota in 
  2.19  interstate commerce; 
  2.20     (2) alcoholic beverages imported into Minnesota by 
  2.21  individuals for personal use in the amounts permitted under 
  2.22  section 297C.09 or 340A.417; and 
  2.23     (3) a holder of a manufacturer's warehouse permit. 
  2.24     Subd. 3.  [CONFORMITY WITH FEDERAL AND STATE 
  2.25  REGULATIONS.] No manufacturer, importer, or wholesaler licensed 
  2.26  under this chapter may introduce into Minnesota or sell in 
  2.27  Minnesota any bottle or other container containing alcoholic 
  2.28  beverages unless the alcoholic beverages are packaged, labeled, 
  2.29  and sold in conformity with all applicable federal and state 
  2.30  regulations. 
  2.31     Subd. 4.  [SOLICITATIONS PROHIBITED.] No person may send or 
  2.32  mail, or cause to be sent or mailed any letter, postcard, 
  2.33  circular, catalog, pamphlet, or similar publication for delivery 
  2.34  into Minnesota that is intended to solicit an order for 
  2.35  alcoholic beverages to be shipped to any location into Minnesota 
  2.36  other than a licensed wholesaler's warehouse. 
  3.1      Subd. 5.  [CAUSE OF ACTION.] In addition to any penalties 
  3.2   provided in this chapter, a person who is adversely affected by 
  3.3   a violation of this section may bring an action in a court of 
  3.4   appropriate jurisdiction to seek damages or injunctive relief.  
  3.5   On a finding by the court that a person has violated or is 
  3.6   violating this section, the court may enjoin the violation or 
  3.7   violations.  Any person licensed under this chapter is presumed 
  3.8   to be adversely affected by a violation of this section. 
  3.9      Sec. 2.  [340A.3055] [MANUFACTURER'S WAREHOUSE PERMIT.] 
  3.10     Subdivision 1.  [PERMIT REQUIRED.] No brewer, malt liquor 
  3.11  manufacturer, or intoxicating liquor manufacturer may import 
  3.12  alcoholic beverages to a central warehouse, central distribution 
  3.13  center, or holding area in Minnesota that the brewer or 
  3.14  manufacturer owns or leases unless the brewer or manufacturer 
  3.15  has obtained from the commissioner a manufacturer's warehouse 
  3.16  permit for the facility.  A manufacturer's warehouse permit 
  3.17  allows a brewer or manufacturer to import alcoholic beverages 
  3.18  for storage at the facility for which the permit is issued.  No 
  3.19  person other than a licensed wholesaler, or a motor carrier of 
  3.20  property as defined in section 221.011, subdivision 47, or a 
  3.21  common carrier as defined in section 218.011, subdivision 2, 
  3.22  acting on behalf of a brewer, malt liquor manufacturer, 
  3.23  intoxicating liquor manufacturer, or licensed wholesaler, may 
  3.24  accept delivery from or pick up alcoholic beverages from the 
  3.25  facility.  A licensed wholesaler may distribute alcoholic 
  3.26  beverages only from the wholesaler's warehouse. 
  3.27     Subd. 2.  [ELIGIBILITY.] A permit under this section may be 
  3.28  issued only to a brewer, malt liquor manufacturer, or 
  3.29  intoxicating liquor manufacturer: 
  3.30     (1) whose manufacturing facility or facilities are located 
  3.31  outside Minnesota; and 
  3.32     (2) who holds a valid importer's license under section 
  3.33  340A.302. 
  3.34     Subd. 3.  [FEE.] The annual fee for a permit under this 
  3.35  section is $1,000. 
  3.36     Subd. 4.  [RESTRICTION ON SALE AND DELIVERIES.] A holder of 
  4.1   a permit under this section may sell alcoholic beverages stored 
  4.2   in a facility to which a permit has been issued under this 
  4.3   section only to: 
  4.4      (1) a wholesaler licensed under this chapter; 
  4.5      (2) a wholesaler licensed in another state; or 
  4.6      (3) an out-of-state or out-of-country entity that sells 
  4.7   alcoholic beverages at wholesale or retail. 
  4.8      Subd. 5.  [REPORTS.] A holder of a permit under this 
  4.9   section must report monthly to the commissioner of revenue, in a 
  4.10  form and at a time the commissioner prescribes: 
  4.11     (1) all alcoholic beverages imported into Minnesota and 
  4.12  delivered to the permit holder's facility; and 
  4.13     (2) all sales of alcoholic beverages made from the facility.
  4.14  Reports to the commissioner of revenue under this subdivision 
  4.15  shall remain confidential unless a manufacturer authorizes the 
  4.16  release of a report. 
  4.17     Sec. 3.  Minnesota Statutes 1996, section 340A.404, 
  4.18  subdivision 4, is amended to read: 
  4.19     Subd. 4.  [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR 
  4.20  CULTURAL FACILITIES; COMMUNITY FESTIVALS.] (a) The governing 
  4.21  body of a municipality may authorize a holder of a retail 
  4.22  on-sale intoxicating liquor license issued by the municipality 
  4.23  or by an adjacent municipality to dispense intoxicating liquor 
  4.24  at any convention, banquet, conference, meeting, or social 
  4.25  affair conducted on the premises of a sports, convention, or 
  4.26  cultural facility owned by the municipality or instrumentality 
  4.27  thereof having independent policy making and appropriating 
  4.28  authority and located within the municipality.  The licensee 
  4.29  must be engaged to dispense intoxicating liquor at an event held 
  4.30  by a person or organization permitted to use the premises, and 
  4.31  may dispense intoxicating liquor only to persons attending the 
  4.32  event.  The licensee may not dispense intoxicating liquor to any 
  4.33  person attending or participating in an amateur athletic event 
  4.34  held on the premises. 
  4.35     (b) The governing body of a municipality may authorize a 
  4.36  holder of a retail on-sale intoxicating liquor license issued by 
  5.1   the municipality to dispense intoxicating liquor off premises at 
  5.2   a community festival held within the municipality.  The 
  5.3   authorization shall specify the area in which the intoxicating 
  5.4   liquor must be dispensed and consumed, and shall not be issued 
  5.5   unless the licensee demonstrates that it has liability insurance 
  5.6   as prescribed by section 340A.409 to cover the event. 
  5.7      Sec. 4.  Minnesota Statutes 1996, section 340A.404, is 
  5.8   amended by adding a subdivision to read: 
  5.9      Subd. 13.  [HOLDERS OF MULTIPLE ON-SALE LICENSES; UNIFORM 
  5.10  LICENSING PERIODS.] Notwithstanding any local ordinance or other 
  5.11  law, a local government unit may adjust the licensing period for 
  5.12  any holder of multiple on-sale alcoholic beverage licenses in 
  5.13  the state, upon request of the licensee.  The local government 
  5.14  unit may charge a fee for an adjustment of the licensing period. 
  5.15     Sec. 5.  Minnesota Statutes 1996, section 340A.409, 
  5.16  subdivision 1, is amended to read: 
  5.17     Subdivision 1.  [INSURANCE REQUIRED.] No retail license may 
  5.18  be issued, maintained or renewed unless the applicant 
  5.19  demonstrates proof of financial responsibility with regard to 
  5.20  liability imposed by section 340A.801.  The issuing authority 
  5.21  must submit to the commissioner the applicant's proof of 
  5.22  financial responsibility.  This subdivision does not prohibit a 
  5.23  local unit of government from requiring higher insurance or bond 
  5.24  coverages, or a larger deposit of cash or securities.  The 
  5.25  minimum requirement for proof of financial responsibility may be 
  5.26  given by filing: 
  5.27     (1) a certificate that there is in effect for the license 
  5.28  period an insurance policy issued by an insurer required to be 
  5.29  licensed under section 60A.07, subdivision 4, or by an insurer 
  5.30  recognized as an eligible surplus lines carrier pursuant to 
  5.31  section 60A.206 or pool providing at least $50,000 of coverage 
  5.32  because of bodily injury to any one person in any one 
  5.33  occurrence, $100,000 because of bodily injury to two or more 
  5.34  persons in any one occurrence, $10,000 because of injury to or 
  5.35  destruction of property of others in any one occurrence, $50,000 
  5.36  for loss of means of support of any one person in any one 
  6.1   occurrence, and $100,000 for loss of means of support of two or 
  6.2   more persons in any one occurrence; 
  6.3      (2) a bond of a surety company with minimum coverages as 
  6.4   provided in clause (1); or 
  6.5      (3) a certificate of the state treasurer that the licensee 
  6.6   has deposited with the state treasurer $100,000 in cash or 
  6.7   securities which may legally be purchased by savings banks or 
  6.8   for trust funds having a market value of $100,000. 
  6.9      This subdivision does not prohibit an insurer from 
  6.10  providing the coverage required by this subdivision in 
  6.11  combination with other insurance coverage. 
  6.12     An annual aggregate policy limit for dram shop insurance of 
  6.13  not less than $300,000 per policy year may be included in the 
  6.14  policy provisions. 
  6.15     A liability insurance policy required by this section must 
  6.16  provide that it may not be canceled for: 
  6.17     (1) any cause, except for nonpayment of premium, by either 
  6.18  the insured or the insurer unless the canceling party has first 
  6.19  given 30 days' notice in writing to the issuing authority of 
  6.20  intent to cancel the policy; and 
  6.21     (2) nonpayment of premium unless the canceling party has 
  6.22  first given ten days' notice in writing to the issuing authority 
  6.23  of intent to cancel the policy. 
  6.24     Sec. 6.  Minnesota Statutes 1996, section 340A.409, 
  6.25  subdivision 4, is amended to read: 
  6.26     Subd. 4.  [INSURANCE NOT REQUIRED.] Subdivision 1 does not 
  6.27  apply to licensees who by affidavit establish that: 
  6.28     (1) they are on-sale 3.2 percent malt liquor licensees with 
  6.29  sales of less than $10,000 $25,000 of 3.2 percent malt liquor 
  6.30  for the preceding year; 
  6.31     (2) they are off-sale 3.2 percent malt liquor licensees 
  6.32  with sales of less than $20,000 $50,000 of 3.2 percent malt 
  6.33  liquor for the preceding year; 
  6.34     (3) they are holders of on-sale wine licenses with sales of 
  6.35  less than $10,000 $25,000 for wine for the preceding year; or 
  6.36     (4) they are holders of temporary wine licenses issued 
  7.1   under law.  
  7.2      Sec. 7.  Minnesota Statutes 1996, section 340A.417, is 
  7.3   amended to read: 
  7.4      340A.417 [SHIPMENTS INTO MINNESOTA.] 
  7.5      (a) Notwithstanding section 297C.09 or any provision of 
  7.6   this chapter, a winery licensed in a state which affords 
  7.7   Minnesota wineries an equal reciprocal shipping privilege, or a 
  7.8   winery located in Minnesota, may ship, for personal use and not 
  7.9   for resale, not more than two cases of wine, containing a 
  7.10  maximum of nine liters per case, in any calendar year to any 
  7.11  resident of Minnesota age 21 or over.  Delivery of a shipment 
  7.12  under this section may not be deemed a sale in this state.  
  7.13     (b) The shipping container of any wine sent into or out of 
  7.14  Minnesota under this section must be clearly labeled to indicate 
  7.15  that the package cannot be delivered to a person under the age 
  7.16  of 21 years.  
  7.17     (c) No person may (1) advertise shipments authorized under 
  7.18  this section, or (2) by advertisement or otherwise, solicit 
  7.19  shipments authorized by this section, or (3) accept orders for 
  7.20  shipments authorized by this section by use of the Internet.  No 
  7.21  shipper located outside Minnesota may advertise such interstate 
  7.22  reciprocal wine shipments in Minnesota.  
  7.23     (d) It is not the intent of this section to impair the 
  7.24  distribution of wine through distributors or importing 
  7.25  distributors, but only to permit shipments of wine for personal 
  7.26  use. 
  7.27     (e) No criminal penalty may be imposed on a person for a 
  7.28  violation of this section other than a violation described in 
  7.29  paragraph (f) or (g).  Whenever it appears to the commissioner 
  7.30  that any person has engaged in any act or practice constituting 
  7.31  a violation of this section, and the violation is not within two 
  7.32  years of any previous violation of this section, the 
  7.33  commissioner shall issue and cause to be served upon the person 
  7.34  an order requiring the person to cease and desist from violating 
  7.35  this section.  The order must give reasonable notice of the 
  7.36  rights of the person to request a hearing and must state the 
  8.1   reason for the entry of the order.  Unless otherwise agreed 
  8.2   between the parties, a hearing shall be held not later than 
  8.3   seven days after the request for the hearing is received by the 
  8.4   commissioner after which and within 20 days after the receipt of 
  8.5   the administrative law judge's report and subsequent exceptions 
  8.6   and argument, the commissioner shall issue an order vacating the 
  8.7   cease and desist order, modifying it, or making it permanent as 
  8.8   the facts require.  If no hearing is requested within 30 days of 
  8.9   the service of the order, the order becomes final and remains in 
  8.10  effect until modified or vacated by the commissioner.  All 
  8.11  hearings shall be conducted in accordance with the provisions of 
  8.12  chapter 14.  If the person to whom a cease and desist order is 
  8.13  issued fails to appear at the hearing after being duly notified, 
  8.14  the person shall be deemed in default, and the proceeding may be 
  8.15  determined against the person upon consideration of the cease 
  8.16  and desist order, the allegations of which may be deemed to be 
  8.17  true. 
  8.18     (f) Any person who violates this section within two years 
  8.19  of a violation for which a cease and desist order was issued 
  8.20  under paragraph (e), is guilty of a misdemeanor. 
  8.21     (g) Any person who commits a third or subsequent violation 
  8.22  of this section, including a violation for which a cease and 
  8.23  desist order was issued under paragraph (c), within any 
  8.24  subsequent two-year period is guilty of a gross misdemeanor. 
  8.25     Sec. 8.  Minnesota Statutes 1996, section 340A.504, 
  8.26  subdivision 3, is amended to read: 
  8.27     Subd. 3.  [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 
  8.28  A restaurant, club, bowling center, or hotel with a seating 
  8.29  capacity for at least 30 persons and which holds an on-sale 
  8.30  intoxicating liquor license may sell intoxicating liquor for 
  8.31  consumption on the premises in conjunction with the sale of food 
  8.32  between the hours of 12:00 noon on Sundays and 1:00 a.m. on 
  8.33  Mondays. 
  8.34     (b) The governing body of a municipality may after one 
  8.35  public hearing by ordinance permit a restaurant, hotel, bowling 
  8.36  center, or club to sell intoxicating liquor alcoholic beverages 
  9.1   for consumption on the premises in conjunction with the sale of 
  9.2   food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on 
  9.3   Mondays, provided that the licensee is in conformance with the 
  9.4   Minnesota clean air act. 
  9.5      (c) An establishment serving intoxicating liquor on Sundays 
  9.6   must obtain a Sunday license.  The license must be issued by the 
  9.7   governing body of the municipality for a period of one year, and 
  9.8   the fee for the license may not exceed $200. 
  9.9      (d) A city may issue a Sunday intoxicating liquor license 
  9.10  only if authorized to do so by the voters of the city voting on 
  9.11  the question at a general or special election.  A county may 
  9.12  issue a Sunday intoxicating liquor license in a town only if 
  9.13  authorized to do so by the voters of the town as provided in 
  9.14  paragraph (e).  A county may issue a Sunday intoxicating liquor 
  9.15  license in unorganized territory only if authorized to do so by 
  9.16  the voters of the election precinct that contains the licensed 
  9.17  premises, voting on the question at a general or special 
  9.18  election. 
  9.19     (e) An election conducted in a town on the question of the 
  9.20  issuance by the county of Sunday sales licenses to 
  9.21  establishments located in the town must be held on the day of 
  9.22  the annual election of town officers. 
  9.23     (f) Voter approval is not required for licenses issued by 
  9.24  the metropolitan airports commission or common carrier licenses 
  9.25  issued by the commissioner.  Common carriers serving 
  9.26  intoxicating liquor on Sunday must obtain a Sunday license from 
  9.27  the commissioner at an annual fee of $50, plus $20 for each 
  9.28  duplicate.  
  9.29     Sec. 9.  Laws 1969, chapter 783, section 1, subdivision 1, 
  9.30  as amended by Laws 1971, chapter 498, section 1, as amended by 
  9.31  Laws 1973, chapter 396, section 1, is amended to read: 
  9.32     Section 1.  [ST. PAUL, CITY OF; CIVIC CENTER; LIQUOR 
  9.33  LICENSE.] 
  9.34     Subdivision 1.  In addition to the licenses now authorized 
  9.35  by law, and notwithstanding any provision of law to the contrary 
  9.36  contained in the charter or ordinances of such city, or statutes 
 10.1   applicable to such city, the city of St. Paul is authorized to 
 10.2   issue an "on sale" liquor license for the premises known and 
 10.3   used as the St. Paul civic center.  The license so authorized 
 10.4   may be vested, with the prior approval of the civic center 
 10.5   authority, in any person, firm or corporation who has contracted 
 10.6   for the use of the civic center premises for an event or a 
 10.7   caterer of such person, firm or corporation approved by the 
 10.8   civic center authority.  The license may be vested in such 
 10.9   person, firm, corporation or caterer notwithstanding the fact 
 10.10  that such person, firm, corporation or caterer may hold another 
 10.11  "on sale" license in its own right, but such license vested by 
 10.12  the authority shall expire upon termination of the contracted 
 10.13  event.  The fee for such license to the authority shall be fixed 
 10.14  by the governing body of the city of St. Paul.  Such liquor 
 10.15  license shall be issued in accordance with the statutes 
 10.16  applicable to the issuance of "on sale" liquor licenses in 
 10.17  cities of the first class not inconsistent herewith and in 
 10.18  accordance with the charter and ordinances of the city of St. 
 10.19  Paul not inconsistent herewith and shall limit the sale of 
 10.20  intoxicating liquor to patrons of the entire civic center 
 10.21  complex who gather therein for any convention, banquet, 
 10.22  conference, meeting, professional athletic or sporting event, 
 10.23  theatrical event or social affair, but shall prohibit the sale 
 10.24  of:  (1) intoxicating liquor to the public or to any persons 
 10.25  attending or participating in any amateur athletic event other 
 10.26  than an intercollegiate athletic event being held on the civic 
 10.27  center premises; and (2) intoxicating liquor other than malt 
 10.28  liquor to the public or to any persons attending or 
 10.29  participating in an intercollegiate athletic event at the civic 
 10.30  center premises. 
 10.31     Sec. 10.  Laws 1990, chapter 554, section 19, is amended to 
 10.32  read: 
 10.33     Sec. 19.  [CITY OF ST. PAUL; WINE AND BEER LICENSES.] 
 10.34     Subdivision 1.  [LICENSE AUTHORIZED.] The city of St. Paul 
 10.35  may issue on-sale nonintoxicating malt liquor licenses and, 
 10.36  on-sale wine licenses, and on-sale intoxicating liquor licenses 
 11.1   to the city's division of parks and recreation.  The licenses 
 11.2   authorize the sale or service of wine or, nonintoxicating malt 
 11.3   liquor, or intoxicating liquor on property owned by the city and 
 11.4   under the jurisdiction of the division by: 
 11.5      (1) employees of the city; 
 11.6      (2) persons holding a permit from the division to conduct 
 11.7   an event and sell or serve wine or, nonintoxicating malt liquor, 
 11.8   or intoxicating liquor to persons attending the event; or 
 11.9      (3) persons who have contracted with the city to sell or 
 11.10  serve wine or, nonintoxicating malt liquor, or intoxicating 
 11.11  liquor on such property. 
 11.12     Subd. 2.  [PERMITS; CONTRACTS.] (a) Permits issued by the 
 11.13  city under subdivision 1, clause (2), and contracts entered into 
 11.14  by the city under subdivision 1, clause (3), must provide for: 
 11.15     (1) the duration of the permit or contract; 
 11.16     (2) the premises or area in which sales or service of 
 11.17  wine or, nonintoxicating malt liquor, or intoxicating liquor 
 11.18  will be made; 
 11.19     (3) the persons to whom such sales or service will be made; 
 11.20     (4) the days and hours in which such sales or service will 
 11.21  be made; and 
 11.22     (5) obtaining by the permit holder or contracted vendor of 
 11.23  such liquor liability insurance or bond, or both, as the city 
 11.24  considers necessary to protect the city's interest as the holder 
 11.25  of the license. 
 11.26     (b) A permit may be issued or a contract entered into under 
 11.27  this section with a person who does not hold a license issued 
 11.28  under Minnesota Statutes, chapter 340A, for the retail sale of 
 11.29  alcoholic beverages. 
 11.30     (c) The division may, without notice or hearing, refuse to 
 11.31  issue a permit under subdivision 1, clause (2). 
 11.32     Subd. 3.  [CITY COUNCIL APPROVAL.] The St. Paul city 
 11.33  council must approve each: 
 11.34     (1) facility at which wine or, nonintoxicating malt liquor, 
 11.35  or intoxicating liquor will be sold or served by city employees; 
 11.36     (2) permit issued under subdivision 1, clause (2); and 
 12.1      (3) contract entered into under subdivision 1, clause (3). 
 12.2      Subd. 4.  [APPLICABILITY OF GENERAL LAW.] All provisions of 
 12.3   Minnesota Statutes, chapter 340A, not inconsistent with this 
 12.4   section apply to licenses issued under this section.  Licenses 
 12.5   authorized by this section are in addition to any other licenses 
 12.6   authorized by law. 
 12.7      Sec. 11.  [CITY OF MOORHEAD; LIQUOR LICENSES.] 
 12.8      The city of Moorhead may issue two on-sale intoxicating 
 12.9   liquor licenses in addition to the number authorized by law.  
 12.10  All provisions of Minnesota Statutes, chapter 340A, not 
 12.11  inconsistent with this section, apply to the licenses authorized 
 12.12  under this section. 
 12.13     Sec. 12.  [CITY OF DULUTH; OFF-SALE HOURS.] 
 12.14     Notwithstanding any other law, the city of Duluth may by 
 12.15  ordinance permit the off-sale of intoxicating liquor until 10:00 
 12.16  p.m. on Monday through Saturday. 
 12.17     Sec. 13.  [CITY OF PROCTOR; OFF-SALE HOURS.] 
 12.18     Notwithstanding any other law, the city of Proctor may by 
 12.19  ordinance permit the off-sale of intoxicating liquor until 10:00 
 12.20  p.m. on Monday through Saturday. 
 12.21     Sec. 14.  [CITY OF HERMANTOWN; OFF-SALE HOURS.] 
 12.22     Notwithstanding any other law, the city of Hermantown may 
 12.23  by ordinance permit the off-sale of intoxicating liquor until 
 12.24  10:00 p.m. on Monday through Saturday. 
 12.25     Sec. 15.  [CITY OF SPRING LAKE PARK; LIQUOR LICENSES.] 
 12.26     The city of Spring Lake Park may issue one on-sale 
 12.27  intoxicating liquor license in addition to the number authorized 
 12.28  by law.  All provisions of Minnesota Statutes, chapter 340A, not 
 12.29  inconsistent with this section, apply to the license authorized 
 12.30  under this section. 
 12.31     Sec. 16.  [EFFECTIVE DATE.] 
 12.32     Sections 2, 3, and 8 are effective the day following final 
 12.33  enactment. 
 12.34     Section 9 is effective upon approval by the St. Paul city 
 12.35  council and compliance with Minnesota Statutes, section 645.021, 
 12.36  subdivision 3. 
 13.1      Section 10 is effective upon approval by the Saint Paul 
 13.2   city council and compliance with Minnesota Statutes, section 
 13.3   645.021. 
 13.4      Section 11 is effective upon approval by the Moorhead city 
 13.5   council and compliance with Minnesota Statutes, section 645.021. 
 13.6      Section 12 is effective upon approval by the Duluth city 
 13.7   council and compliance with Minnesota Statutes, section 645.021. 
 13.8      Section 13 is effective upon approval by the Proctor city 
 13.9   council and compliance with Minnesota Statutes, section 645.021. 
 13.10     Section 14 is effective upon approval by the Hermantown 
 13.11  city council and compliance with Minnesota Statutes, section 
 13.12  645.021. 
 13.13     Section 15 is effective upon approval by the Spring Lake 
 13.14  Park city council and compliance with Minnesota Statutes, 
 13.15  section 645.021. 
 13.16                             ARTICLE 2
 13.17                  ALCOHOL AND GAMBLING ENFORCEMENT
 13.18     Section 1.  Minnesota Statutes 1996, section 16B.54, 
 13.19  subdivision 2, is amended to read: 
 13.20     Subd. 2.  [VEHICLES.] (a)  [ACQUISITION FROM AGENCY; 
 13.21  APPROPRIATION.] The commissioner may direct an agency to make a 
 13.22  transfer of a passenger motor vehicle or truck currently 
 13.23  assigned to it.  The transfer must be made to the commissioner 
 13.24  for use in the central motor pool.  The commissioner shall 
 13.25  reimburse an agency whose motor vehicles have been paid for with 
 13.26  funds dedicated by the constitution for a special purpose and 
 13.27  which are assigned to the central motor pool.  The amount of 
 13.28  reimbursement for a motor vehicle is its average wholesale price 
 13.29  as determined from the midwest edition of the National 
 13.30  Automobile Dealers Association official used car guide. 
 13.31     (b)  [PURCHASE.] To the extent that funds are available for 
 13.32  the purpose, the commissioner may purchase or otherwise acquire 
 13.33  additional passenger motor vehicles and trucks necessary for the 
 13.34  central motor pool.  The title to all motor vehicles assigned to 
 13.35  or purchased or acquired for the central motor pool is in the 
 13.36  name of the department of administration.  
 14.1      (c)  [TRANSFER AT AGENCY REQUEST.] On the request of an 
 14.2   agency, the commissioner may transfer to the central motor pool 
 14.3   any passenger motor vehicle or truck for the purpose of 
 14.4   disposing of it.  The department or agency transferring the 
 14.5   vehicle or truck must be paid for it from the motor pool 
 14.6   revolving account established by this section in an amount equal 
 14.7   to two-thirds of the average wholesale price of the vehicle or 
 14.8   truck as determined from the midwest edition of the National 
 14.9   Automobile Dealers Association official used car guide. 
 14.10     (d)  [VEHICLES; MARKING.] The commissioner shall provide 
 14.11  for the uniform marking of all motor vehicles.  Motor vehicle 
 14.12  colors must be selected from the regular color chart provided by 
 14.13  the manufacturer each year.  The commissioner may further 
 14.14  provide for the use of motor vehicles without marking by: 
 14.15     (1) the governor; 
 14.16     (2) the lieutenant governor; 
 14.17     (3) the division of criminal apprehension, the division of 
 14.18  liquor control, the division of alcohol and gambling 
 14.19  enforcement, and arson investigators of the division of fire 
 14.20  marshal in the department of public safety; 
 14.21     (4) the financial institutions division of the department 
 14.22  of commerce; 
 14.23     (5) the division of disease prevention and control of the 
 14.24  department of health; 
 14.25     (6) the state lottery; 
 14.26     (7) criminal investigators of the department of revenue; 
 14.27     (8) state-owned community service facilities in the 
 14.28  department of human services; 
 14.29     (9) the investigative staff of the department of economic 
 14.30  security; and 
 14.31     (10) the office of the attorney general. 
 14.32     Sec. 2.  Minnesota Statutes 1996, section 43A.34, 
 14.33  subdivision 4, is amended to read: 
 14.34     Subd. 4.  [STATE PATROL, CONSERVATION AND CRIME BUREAU 
 14.35  OFFICERS EXEMPTED.] Notwithstanding any provision to the 
 14.36  contrary, (a) conservation officers and crime bureau officers 
 15.1   who were first employed on or after July 1, 1973, and who are 
 15.2   members of the state patrol retirement fund by reason of their 
 15.3   employment, and members of the Minnesota state patrol division 
 15.4   and alcohol and gambling enforcement divisions division of the 
 15.5   department of public safety who are members of the state patrol 
 15.6   retirement association by reason of their employment, shall not 
 15.7   continue employment after attaining the age of 60 years, except 
 15.8   for a fractional portion of one year that will enable the 
 15.9   employee to complete the employee's next full year of allowable 
 15.10  service as defined pursuant to section 352B.01, subdivision 3; 
 15.11  and (b) conservation officers and crime bureau officers who were 
 15.12  first employed and are members of the state patrol retirement 
 15.13  fund by reason of their employment before July 1, 1973, shall 
 15.14  not continue employment after attaining the age of 70 years.  
 15.15     Sec. 3.  Minnesota Statutes 1996, section 299A.02, 
 15.16  subdivision 1, is amended to read: 
 15.17     Subdivision 1.  [DIRECTOR OF DIVISION OF LIQUOR 
 15.18  CONTROL CONFLICT OF INTEREST.] No employee of the department of 
 15.19  public safety or the department of revenue having any 
 15.20  responsibility for the administration or enforcement of Laws 
 15.21  1985, chapter 305, articles 2 to 11 chapter 297C or 340A shall 
 15.22  have a direct or indirect interest, except through ownership or 
 15.23  investment in pension or mutual funds, in the manufacture, 
 15.24  transportation or sale of intoxicating liquor or any malt or 
 15.25  vinous beverages, intoxicating, nonintoxicating, or commercial 
 15.26  or industrial alcohol.  The commissioner of public safety or the 
 15.27  commissioner of revenue may remove an employee in the 
 15.28  unclassified civil service for any intentional violation of any 
 15.29  provision in Laws 1985, chapter 305, articles 2 to 11 of chapter 
 15.30  297C or 340A.  Intentional violation of the preceding sections a 
 15.31  provision of chapter 297C or 340A by a classified employee of 
 15.32  one of the departments may be grounds for removal of that 
 15.33  employee pursuant to section 43A.33. 
 15.34     Sec. 4.  Minnesota Statutes 1996, section 299A.02, 
 15.35  subdivision 2, is amended to read: 
 15.36     Subd. 2.  [GENERAL POWERS.] The commissioner shall 
 16.1   administer and enforce the provisions of Laws 1985, chapter 305, 
 16.2   articles 2 to 11 chapters 297C and 340A through the director of 
 16.3   alcohol and gambling enforcement, except for those provisions 
 16.4   thereof for which administration and enforcement are reserved to 
 16.5   the commissioner of revenue. 
 16.6      Sec. 5.  Minnesota Statutes 1996, section 299A.02, 
 16.7   subdivision 3, is amended to read: 
 16.8      Subd. 3.  [REPORTS; RULES.] The commissioner shall have 
 16.9   power to require periodic factual reports from all licensed 
 16.10  importers, manufacturers, wholesalers and retailers of 
 16.11  intoxicating liquors and to make all reasonable rules to effect 
 16.12  the object of Laws 1985, chapter 305, articles 2 to 11 chapters 
 16.13  297C and 340A.  The rules shall include provisions for assuring 
 16.14  the purity of intoxicating liquors and the true statement of its 
 16.15  contents and proper labeling thereof with regard to all forms of 
 16.16  sale.  No rule may require the use of new containers in aging 
 16.17  whiskey.  No rule may require cordials or liqueurs to contain in 
 16.18  excess of 2-1/2 percent by weight of sugar or dextrose or both. 
 16.19     Sec. 6.  Minnesota Statutes 1996, section 299L.01, 
 16.20  subdivision 1, is amended to read: 
 16.21     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 16.22  chapter, the terms defined in this subdivision have the meanings 
 16.23  given them. 
 16.24     (b) "Division" means the division of alcohol and gambling 
 16.25  enforcement.  
 16.26     (c) "Commissioner" means the commissioner of public safety. 
 16.27     (d) "Director" means the director of alcohol and gambling 
 16.28  enforcement.  
 16.29     (e) "Manufacturer" means a person who assembles from raw 
 16.30  materials or subparts a gambling device for sale or use in 
 16.31  Minnesota. 
 16.32     (f) "Distributor" means a person who sells, offers to sell, 
 16.33  or otherwise provides a gambling device to a person in Minnesota.
 16.34     (g) "Used gambling device" means a gambling device five or 
 16.35  more years old from the date of manufacture. 
 16.36     (h) "Test" means the process of examining a gambling device 
 17.1   to determine its characteristics or compliance with the 
 17.2   established requirements of any jurisdiction. 
 17.3      (i) "Testing facility" means a person in Minnesota who is 
 17.4   engaged in the testing of gambling devices for use in any 
 17.5   jurisdiction. 
 17.6      Sec. 7.  Minnesota Statutes 1996, section 299L.01, 
 17.7   subdivision 2, is amended to read: 
 17.8      Subd. 2.  [ESTABLISHED; CONSOLIDATION WITH LIQUOR CONTROL.] 
 17.9   Effective October 1, 1996, the duties and powers of the division 
 17.10  of gambling enforcement is a are transferred to the division of 
 17.11  alcohol and gambling enforcement in the department of public 
 17.12  safety, under the control and supervision of a director, 
 17.13  appointed by the commissioner and serving at the commissioner's 
 17.14  pleasure in the unclassified service.  The director must be a 
 17.15  person who is licensed or eligible to be licensed as a peace 
 17.16  officer under sections 626.84 to 626.863. 
 17.17     Sec. 8.  Minnesota Statutes 1996, section 299L.02, 
 17.18  subdivision 4, is amended to read: 
 17.19     Subd. 4.  [OTHER GAMBLING.] The director of gambling 
 17.20  enforcement shall cooperate with all state and local agencies in 
 17.21  the detection and apprehension of unlawful gambling. 
 17.22     Sec. 9.  Minnesota Statutes 1996, section 299L.02, 
 17.23  subdivision 5, is amended to read: 
 17.24     Subd. 5.  [BACKGROUND CHECKS.] In any background check 
 17.25  required to be conducted by the division of gambling enforcement 
 17.26  under this chapter, chapter 240, 349, 349A, or section 3.9221, 
 17.27  the director may, or shall when required by law, require that 
 17.28  fingerprints be taken and the director may forward the 
 17.29  fingerprints to the Federal Bureau of Investigation for the 
 17.30  conducting of a national criminal history check.  The director 
 17.31  may charge a fee for fingerprint recording and investigation 
 17.32  under section 3.9221. 
 17.33     Sec. 10.  Minnesota Statutes 1996, section 299L.03, 
 17.34  subdivision 1, is amended to read: 
 17.35     Subdivision 1.  [INSPECTIONS; ACCESS.] In conducting any 
 17.36  inspection authorized under this chapter or chapter 240, 349, or 
 18.1   349A, the employees of the division of gambling enforcement 
 18.2   employees have free and open access to all parts of the 
 18.3   regulated business premises, and may conduct the inspection at 
 18.4   any reasonable time without notice and without a search 
 18.5   warrant.  For purposes of this subdivision, "regulated business 
 18.6   premises" means premises where: 
 18.7      (1) lawful gambling is conducted by an organization 
 18.8   licensed under chapter 349 or by an organization exempt from 
 18.9   licensing under section 349.166; 
 18.10     (2) gambling equipment is manufactured, sold, distributed, 
 18.11  or serviced by a manufacturer or distributor licensed under 
 18.12  chapter 349; 
 18.13     (3) records required to be maintained under chapter 240, 
 18.14  297E, 349, or 349A are prepared or retained; 
 18.15     (4) lottery tickets are sold by a lottery retailer under 
 18.16  chapter 340A; 
 18.17     (5) races are conducted by a person licensed under chapter 
 18.18  240; or 
 18.19     (6) gambling devices are manufactured, distributed, or 
 18.20  tested, including places of storage under section 299L.07. 
 18.21     Sec. 11.  Minnesota Statutes 1996, section 299L.03, 
 18.22  subdivision 5, is amended to read: 
 18.23     Subd. 5.  [ARREST POWERS.] The director may designate 
 18.24  certain division employees within the division of gambling 
 18.25  enforcement who are authorized to arrest or investigate any 
 18.26  person who is suspected of violating any provision of chapter 
 18.27  240, 349, or 349A, or is suspected of committing any crime 
 18.28  involving gambling, and to conduct searches and seizures to 
 18.29  enforce any of those laws.  Any employee authorized by this 
 18.30  subdivision to make an arrest must be licensed under sections 
 18.31  626.84 to 626.863.  
 18.32     Sec. 12.  Minnesota Statutes 1996, section 299L.03, 
 18.33  subdivision 7, is amended to read: 
 18.34     Subd. 7.  [OTHER POWERS.] Nothing in this chapter limits 
 18.35  the authority of the division of gambling enforcement to 
 18.36  exercise any other power specified under chapter 240, 340A, 349, 
 19.1   or 349A.  
 19.2      Sec. 13.  Minnesota Statutes 1996, section 340A.201, is 
 19.3   amended to read: 
 19.4      340A.201 [LIQUOR CONTROL AUTHORITY.] 
 19.5      Subdivision 1.  [1976 SUCCESSOR.] The commissioner of 
 19.6   public safety is the successor to the commissioner of liquor 
 19.7   control with respect to the powers and duties vested in the 
 19.8   latter as of February 6, 1976, except for those powers and 
 19.9   duties transferred to the commissioner of revenue.  Any 
 19.10  proceeding, court action, prosecution, or other business 
 19.11  undertaken or commenced as of February 6, 1976, by the 
 19.12  commissioner of liquor control is assigned to the commissioners 
 19.13  of public safety and revenue as appropriate and may be completed 
 19.14  by them.  
 19.15     Subd. 2.  [DELEGATION; 1996 CONSOLIDATION; DIVISION 
 19.16  DIRECTOR.] Effective October 1, 1996, the duties and powers 
 19.17  vested previously in the commissioner of public safety and 
 19.18  delegated to the department's division of liquor control are 
 19.19  delegated and transferred to, and consolidated with, the 
 19.20  division of alcohol and gambling enforcement of the department 
 19.21  of public safety, under the supervision of a director appointed 
 19.22  by the commissioner and serving in the unclassified service at 
 19.23  the pleasure of the commissioner. 
 19.24     Sec. 14.  [RESPONSIBILITIES TRANSFERRED AND CONSOLIDATED 
 19.25  INTO DIVISION OF ALCOHOL AND GAMBLING ENFORCEMENT.] 
 19.26     Subdivision 1.  [RESPONSIBILITIES TRANSFERRED.] The 
 19.27  responsibilities of the division of liquor control and the 
 19.28  division of gambling enforcement are transferred and 
 19.29  consolidated into the division of alcohol and gambling 
 19.30  enforcement in the department of public safety, under the 
 19.31  supervision of a director in the unclassified service appointed 
 19.32  by the commissioner of public safety and serving at the 
 19.33  commissioner's pleasure.  The term "responsibilities" includes 
 19.34  powers, duties, rights, obligations, and other authority imposed 
 19.35  by law on the former divisions.  The term "new division" means 
 19.36  the division of alcohol and gambling enforcement and "former 
 20.1   divisions" means the division of liquor control and the division 
 20.2   of gambling enforcement.  
 20.3      Subd. 2.  [CONTINUATION.] The new division is a 
 20.4   continuation of the former divisions as to those 
 20.5   responsibilities and matters within the jurisdiction of the 
 20.6   former divisions that are transferred to the new division.  
 20.7   Following a transfer the new division shall carry out the 
 20.8   assigned responsibilities as though the responsibilities of the 
 20.9   former division had not been transferred.  A transfer is not a 
 20.10  new authority for the purpose of succession to all 
 20.11  responsibilities of the former divisions as constituted at the 
 20.12  time of the transfer. 
 20.13     Subd. 3.  [RULES.] Rules adopted pursuant to 
 20.14  responsibilities that are transferred to the new division remain 
 20.15  effective and shall be enforced until amended or repealed in 
 20.16  accordance with law by the commissioner of public safety.  The 
 20.17  rulemaking authority of the commissioner of public safety, that 
 20.18  existed to implement the responsibilities that are transferred 
 20.19  from the former divisions, is retained by the commissioner.  
 20.20     Subd. 4.  [COURT ACTIONS.] Any proceeding, court action, 
 20.21  prosecution, or other business or matter pending on the 
 20.22  effective date of a transfer of responsibilities may be 
 20.23  conducted and completed under the authority of the commissioner 
 20.24  of public safety in the same manner, under the same terms and 
 20.25  conditions, and with the same effect as though it involved or 
 20.26  were commenced and conducted or completed prior to the transfer. 
 20.27     Subd. 5.  [CONTRACTS; RECORDS.] The former divisions whose 
 20.28  responsibilities are transferred shall give all contracts, 
 20.29  books, maps, plans, papers, records, and property of every 
 20.30  description relating to the transferred responsibilities and 
 20.31  within its jurisdiction or control to the new division.  The new 
 20.32  division shall accept the material presented.  The transfer 
 20.33  shall be made in accordance with the directions of the new 
 20.34  division.  
 20.35     Subd. 6.  [UNEXPENDED FUNDS.] The unexpended balance of any 
 20.36  appropriation to a former division for the purposes of any 
 21.1   responsibilities that are transferred to the new division are 
 21.2   reappropriated to the new division under the same conditions as 
 21.3   the original appropriation, effective retroactively to October 
 21.4   1, 1996.  
 21.5      Subd. 7.  [PERSONNEL.] The position of director of the 
 21.6   division of liquor control is abolished.  The person occupying 
 21.7   the position of director of gambling enforcement becomes the 
 21.8   director of alcohol and gambling enforcement, a position in the 
 21.9   unclassified service.  The director serves at the pleasure of 
 21.10  the commissioner of public safety.  All other classified and 
 21.11  unclassified positions associated with the responsibilities 
 21.12  being transferred are transferred with their incumbents to the 
 21.13  new division.  Personnel changes are effective retroactively to 
 21.14  October 1, 1996.  Nothing in this subdivision abrogates or 
 21.15  modifies the rights now enjoyed by affected employees under the 
 21.16  managerial or commissioner's plan under Minnesota Statutes, 
 21.17  section 43A.18, or the terms of an agreement between an 
 21.18  exclusive representative of public employees and the state or 
 21.19  one of its appointing authorities. 
 21.20     Sec. 15.  [INSTRUCTION TO REVISOR.] 
 21.21     The revisor of statutes shall change the terms "division of 
 21.22  gambling enforcement," "division of liquor control," "director 
 21.23  of gambling enforcement," "director of the division of liquor 
 21.24  control," and similar terms referring to either of those 
 21.25  divisions or directors to "division of alcohol and gambling 
 21.26  enforcement" or "director of alcohol and gambling enforcement," 
 21.27  as appropriate:  
 21.28     (1) where found in Minnesota Statutes, chapters 299L, 340A, 
 21.29  349, and 349A, and Minnesota Statutes, sections 10A.01, 
 21.30  subdivision 18; 13.99, subdivision 92a; 240.06, subdivisions 3 
 21.31  and 8; 240.07, subdivision 2; 240.08, subdivision 3; 240.09, 
 21.32  subdivision 3a; 240.21; 297E.13, subdivision 5; 297E.16, 
 21.33  subdivision 2; 352B.01, subdivision 2; 626.05, subdivision 2; 
 21.34  626.13; and 626.84, subdivision 1; and 
 21.35     (2) where found in Minnesota Rules. 
 21.36     Sec. 16.  [EFFECTIVE DATE.] 
 22.1      Sections 1 to 14 are effective retroactively to October 1, 
 22.2   1996.