1.1A bill for an act1.2relating to liquor; authorizing and clarifying terms of various licenses; modifying 1.3certain insurance requirements; authorizing State Agricultural Society to license 1.4and regulate tobacco sales on State Fairgrounds;amending Minnesota Statutes 1.52008, sections 37.21; 340A.404, subdivisions 2, 5; 340A.409, subdivisions 1, 1.64; 340A.419, as amended; 461.12, subdivision 1; Laws 2009, chapter 120, 1.7section 16.1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.9    Section 1. Minnesota Statutes 2008, section 37.21, is amended to read:1.1037.21 SALE OF LIQUORS.1.11    Subdivision 1. Liquor prohibited. Except as provided under Laws 2003, chapter 1.12126, section 29, as amended by Laws 2005, chapter 25, section 6 in subdivision 2, no 1.13person may sell, barter, give away, or otherwise dispose of or introduce, have, or keep for 1.14barter, gift, or sale, any intoxicating liquors of any kind upon the State Fairgrounds, or 1.15aid and abet any of those acts. The presence and possession of any kind of these liquors, 1.16in any quantity, upon the person or upon the premises leased or occupied by any person 1.17within these limits is a public nuisance and is prima facie evidence of the purpose of the 1.18person to barter, give away, or sell the liquor. Any person who violates this section is 1.19guilty of a misdemeanor.1.20    Subd. 2. Exceptions.Notwithstanding subdivision 1, The following exceptions 1.21apply:1.22(a) The State Agricultural Society may authorize issue, under terms and conditions 1.23it chooses, licenses for the sale, possession, and consumption of intoxicating liquors at 1.24special events taking place on the fairgrounds at times other than during the annual fair 1.25including, but not limited to, family reunions, class reunions, weddings, conventions, and 2.1similar events. This section does not authorize the society to issue retail licenses for the 2.2sale of alcoholic beverages. Notwithstanding subdivision 1,2.3(b) The State Agricultural Society may also authorize issue, under terms and 2.4conditions it chooses, consistent with state law, licenses for the sale, possession, and 2.5consumption of intoxicating malt liquors during the annual fair or at other times of their 2.6choosing, provided that at least one Minnesota brewed malt liquor is made available for 2.7sale at each allowed location within the grounds.2.8(c) The State Agricultural Society may issue a license for the sale and consumption 2.9of wine to a holder of a state fair concession's contract with the State Agricultural Society 2.10which authorizes the licensee to sell Minnesota-produced wine by the glass at the state 2.11fair in connection with the sale of food by the concessionaire. For the purposes of this 2.12subdivision, "Minnesota-produced wine" means wine produced by a farm winery licensed 2.13under section 340A.315.2.14EFFECTIVE DATE.This section is effective the day following final enactment.2.15    Sec. 2. Minnesota Statutes 2008, section 340A.404, subdivision 2, is amended to read:2.16    Subd. 2. Special provision; city of Minneapolis. (a) The city of Minneapolis may 2.17issue an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the 2.18Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding 2.19the limitations of law, or local ordinance, or charter provision relating to zoning or school 2.20or church distances. The licenses authorize sales on all days of the week to holders 2.21of tickets for performances presented by the theaters and to members of the nonprofit 2.22corporations holding the licenses and to their guests.2.23(b) The city of Minneapolis may issue an intoxicating liquor license to 510 2.24Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises 2.25owned by 510 Groveland Associates, notwithstanding limitations of law, or local 2.26ordinance, or charter provision.2.27(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to 2.28Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 2.29Park Avenue South in Minneapolis, and to the American Swedish Institute for use on 2.30the premises owned by the American Swedish Institute at 2600 Park Avenue South, 2.31notwithstanding limitations of law, or local ordinances, or charter provision relating to 2.32zoning or school or church distances.2.33(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to 2.34the American Association of University Women, Minneapolis branch, for use on the 2.35premises owned by the American Association of University Women, Minneapolis branch, 3.1at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local 3.2ordinances, or charter provisions relating to zoning or school or church distances.3.3(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 3.4percent malt liquor license to a restaurant located at 5000 Penn Avenue South, and an 3.5on-sale wine license and an on-sale malt liquor license to a restaurant located at 1931 3.6Nicollet Avenue South, notwithstanding any law or local ordinance or charter provision.3.7(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt 3.8liquor license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue 3.9South, the Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue 3.10South, the Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring 3.11Playhouse located at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 3.12Lyndale Avenue South, Brave New Institute located at 2605 Hennepin Avenue South, 3.13the Guthrie Lab located at 700 North First Street, and the Southern Theatre located at 3.141420 Washington Avenue South, notwithstanding any law or local ordinance or charter 3.15provision. The license authorizes sales on all days of the week.3.16(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to 3.17University Gateway Corporation, a Minnesota nonprofit corporation, for use by a 3.18restaurant or catering operator at the building owned and operated by the University 3.19Gateway Corporation on the University of Minnesota campus, notwithstanding limitations 3.20of law, or local ordinance or charter provision. The license authorizes sales on all days of 3.21the week.3.22(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 3.23Walker Art Center's concessionaire or operator, for a restaurant and catering operator 3.24on the premises of the Walker Art Center, notwithstanding limitations of law, or local 3.25ordinance or charter provisions. The license authorizes sales on all days of the week.3.26(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 3.27Guthrie Theater's concessionaire or operator for a restaurant and catering operator on the 3.28premises of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or 3.29charter provisions. The license authorizes sales on all days of the week.3.30(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt 3.31liquor license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or 3.32operator for a restaurant and catering operator on the premises of the Minnesota Book and 3.33Literary Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local 3.34ordinance or charter provision. The license authorizes sales on all days of the week.4.1(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a 4.2restaurant located at 5411 Penn Avenue South, notwithstanding any law or local ordinance 4.3or charter provision.4.4(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 4.5Museum of Russian Art's concessionaire or operator for a restaurant and catering operator 4.6on the premises of the Museum of Russian Art located at 5500 Stevens Avenue South, 4.7notwithstanding any law or local ordinance or charter provision.4.8EFFECTIVE DATE.This section is effective upon approval by the Minneapolis 4.9City Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions 4.102 and 3.4.11    Sec. 3. Minnesota Statutes 2008, section 340A.404, subdivision 5, is amended to read:4.12    Subd. 5. Wine licenses. (a) A municipality may issue an on-sale wine license with 4.13the approval of the commissioner to a restaurant having facilities for seating at least 25 4.14guests at one time. A wine license permits the sale of wine of up to 14 percent alcohol by 4.15volume for consumption with the sale of food. A wine license authorizes the sale of wine 4.16on all days of the week unless the issuing authority restricts the license's authorization to 4.17the sale of wine on all days except Sundays.4.18(b) The governing body of a municipality may by ordinance authorize a holder of 4.19an on-sale wine license issued pursuant to paragraph (a) who is also licensed to sell 3.2 4.20percent malt liquors at on-sale pursuant to section 
         340A.411, and whose gross receipts 4.21are at least 60 percent attributable to the sale of food, to sell intoxicating malt liquors 4.22at on-sale without an additional license. 4.23(c) A municipality may issue an on-sale wine license with the approval of the 4.24commissioner to a licensed bed and breakfast facility. A license under this paragraph 4.25authorizes a bed and breakfast facility to furnish wine only to registered guests of the 4.26facility and, if the facility contains a licensed commercial kitchen, also to guests attending 4.27private events at the facility.4.28(d) The State Agricultural Society may issue an on-sale wine license to the holder of 4.29a state fair concession contract pursuant to section 37.21, subdivision 2.4.30EFFECTIVE DATE.This section is effective the day following final enactment.4.31    Sec. 4. Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to read:4.32    Subdivision 1. Insurance required. No retail license may be issued, maintained or 4.33renewed unless the applicant demonstrates proof of financial responsibility with regard 5.1to liability imposed by section 
         340A.801. The issuing authority must submit to the 5.2commissioner the applicant's proof of financial responsibility. This subdivision does not 5.3prohibit a local unit of government from requiring higher insurance or bond coverages, or 5.4a larger deposit of cash or securities. The minimum requirement for proof of financial 5.5responsibility may be given by filing: 5.6(1) a certificate that there is in effect for the license period an insurance policy 5.7issued by an insurer required to be licensed under section 
         60A.07, subdivision 4, or by 5.8an insurer recognized as an eligible surplus lines carrier pursuant to section 
         60A.206 or 5.9pool providing at least $50,000 of coverage because of bodily injury to any one person in 5.10any one occurrence, $100,000 because of bodily injury to two or more persons in any one 5.11occurrence, $10,000 because of injury to or destruction of property of others in any one 5.12occurrence, $50,000 for loss of means of support of any one person in any one occurrence, 5.13and $100,000 for loss of means of support of two or more persons in any one occurrence, 5.14$50,000 for other pecuniary loss of any one person in any one occurrence, and $100,000 5.15for other pecuniary loss of two or more persons in any one occurrence; 5.16(2) a bond of a surety company with minimum coverages as provided in clause (1); or5.17(3) a certificate of the commissioner of management and budget that the licensee 5.18has deposited with the commissioner of management and budget $100,000 in cash or 5.19securities which may legally be purchased by savings banks or for trust funds having a 5.20market value of $100,000.5.21This subdivision does not prohibit an insurer from providing the coverage required 5.22by this subdivision in combination with other insurance coverage.5.23An annual aggregate policy limit for dram shop insurance of not less than $300,000 5.24per policy year may be included in the policy provisions.5.25A liability insurance policy required by this section must provide that it may not be 5.26canceled for:5.27(1) any cause, except for nonpayment of premium, by either the insured or the 5.28insurer unless the canceling party has first given 30 days' notice in writing to the issuing 5.29authority of intent to cancel the policy; and5.30(2) nonpayment of premium unless the canceling party has first given ten days' 5.31notice in writing to the issuing authority of intent to cancel the policy.5.32All insurance policies which provide coverage with regard to any liability imposed 5.33by section 340A.801 must contain at least the minimum coverage required by this section.5.34EFFECTIVE DATE.This section is effective the day following final enactment.5.35    Sec. 5. Minnesota Statutes 2008, section 340A.409, subdivision 4, is amended to read:6.1    Subd. 4. Insurance not required. Subdivision 1 does not apply to licensees who 6.2by affidavit establish that:6.3(1) they are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000 6.4of 3.2 percent malt liquor for the preceding year;6.5(2) they are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000 6.6of 3.2 percent malt liquor for the preceding year;6.7(3) they are holders of on-sale wine licenses with sales of less than $25,000 for 6.8wine for the preceding year; or6.9(4) they are holders of temporary wine licenses issued under law; or6.10(5) they are wholesalers who donate wine to an organization for a wine tasting 6.11conducted under section 340A.418 or 340A.419.6.12EFFECTIVE DATE.This section is effective the day following final enactment.6.13    Sec. 6. Minnesota Statutes 2008, section 340A.419, as amended by Laws 2009, chapter 6.14120, section 12, is amended to read:6.15340A.419 WINE TASTINGS CONDUCTED BY EXCLUSIVE LIQUOR 6.16STORE.6.17    Subdivision 1. Definition. For purposes of this section, a "wine tasting" is an event 6.18of not more than four hours' duration at which persons pay a fee to participate and are 6.19allowed to consume wine, malt liquor, or spirits by the glass without paying a separate 6.20charge for each glass.6.21    Subd. 2. Tastings. (a) Notwithstanding any other law, an exclusive liquor store may 6.22conduct a wine, malt liquor, or spirits tasting on the premises of a holder of an on-sale 6.23intoxicating liquor license that is not a temporary license or on the premises of a holder 6.24of a wine license under section 
         340A.404, subdivision 5, if the exclusive liquor store 6.25complies with this section.6.26(b) No wine at a wine tasting, malt liquor, or spirits authorized for use under this 6.27section may be sold for off-premises consumption. A participant in the tasting may fill out 6.28a form indicating preferences for wine, malt liquor, or spirits. The form may be held on 6.29the premises of the exclusive liquor store to assist the participant in making an off-sale 6.30purchase at a later date.6.31(c) Notwithstanding any other law, an exclusive liquor store may purchase or 6.32otherwise obtain wine or spirits for a wine tasting conducted under this section from 6.33a wholesaler licensed to sell wine or spirits. The wholesaler may sell or give wine or 7.1spirits to an exclusive liquor store for a wine tasting conducted under this section and may 7.2provide personnel to assist in the wine tasting.7.3(d) An exclusive liquor store that conducts a wine tasting under this section must use 7.4any fees collected from participants in the tasting only to defray the cost of conducting 7.5the tasting.7.6    (e) Notwithstanding section 
         340A.409, subdivision 4, the premises on which a wine7.7tasting is conducted must be insured as required by section 
         340A.409, subdivision 1.7.8    Subd. 3.Malt liquor tastings.An exclusive liquor store conducting a malt liquor 7.9tasting under this section must also comply with the requirements of section 340A.510, 7.10subdivision 2.7.11EFFECTIVE DATE.This section is effective the day following final enactment.7.12    Sec. 7. Minnesota Statutes 2008, section 461.12, subdivision 1, is amended to read:7.13    Subdivision 1. Authorization. A town board or the governing body of a home rule 7.14charter or statutory city may license and regulate the retail sale of tobacco as defined 7.15in section 
         609.685, subdivision 1, and establish a license fee for sales to recover the 7.16estimated cost of enforcing this chapter. The county board shall license and regulate the 7.17sale of tobacco in unorganized territory of the county except on the State Fairgrounds and 7.18in a town or a home rule charter or statutory city if the town or city does not license and 7.19regulate retail tobacco sales. The State Agricultural Society shall license and regulate 7.20the sale of tobacco on the State Fairgrounds. Retail establishments licensed by a town 7.21or city to sell tobacco are not required to obtain a second license for the same location 7.22under the licensing ordinance of the county.7.23EFFECTIVE DATE.This section is effective the day following final enactment.7.24    Sec. 8. Laws 2009, chapter 120, section 16, is amended to read:7.25    Sec. 16. CITY OF MINNEAPOLIS; LIQUOR LICENSE.7.26Notwithstanding any law, ordinance, or charter provision to the contrary, the city of 7.27Minneapolis may issue an on-sale intoxicating liquor license to an establishment located 7.28at 2124 Como Avenue Southeast.7.29EFFECTIVE DATE.This section is effective on the effective date of Laws 2009, 7.30chapter 120, section 16.7.31    Sec. 9. MINNEAPOLIS CAMPUS OF ST. THOMAS UNIVERSITY; ON-SALE 7.32LICENSE.8.1Notwithstanding any other law, local ordinance, or charter provision, the city of 8.2Minneapolis may issue an on-sale intoxicating liquor license to St. Thomas University, 8.3for catering on the premises of the Minneapolis campus of St. Thomas University, or for 8.4any portion of the premises as described in the approved license application. A license 8.5authorized by this section may be issued for space that is not compact and contiguous, 8.6provided that all the space is within the boundaries of the Minneapolis campus of St. 8.7Thomas University and is included in the description of the licensed premises on the 8.8approved license application. The license authorizes sales on all days of the week to 8.9persons attending events at the college, subject to the hours and days of sale restrictions in 8.10Minnesota Statutes, section 340A.504, and any reasonable license conditions or restrictions 8.11imposed by the licensing authority. All other provisions of Minnesota Statutes, chapter 8.12340A, not inconsistent with this section, apply to the license authorized under this section.8.13EFFECTIVE DATE.This section is effective upon approval by the Minneapolis 8.14City Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions 8.152 and 3.8.16    Sec. 10. BEMIDJI REGIONAL CENTER; ON-SALE LICENSE.8.17Notwithstanding any other law, local ordinance, or charter provision to the contrary, 8.18the city of Bemidji may issue an on-sale intoxicating liquor license, or an on-sale wine and 8.19malt liquor license to the Bemidji Regional Event Center. Any license authorized by this 8.20section may be issued for space that is not compact and contiguous, provided that all the 8.21space is within the boundaries of the Bemidji Regional Event Center and is included in 8.22the description of the licensed premises on the approved license application. A license 8.23issued under this paragraph authorizes sales on all days of the week to persons attending 8.24activities or events at the event center. All other provisions of Minnesota Statutes, chapter 8.25340A, not inconsistent with this section, apply to the license authorized under this section.8.26EFFECTIVE DATE.This section is effective the day following final enactment.8.27    Sec. 11. EXEMPTION; BEMIDJI STATE UNIVERSITY.8.28Notwithstanding Minnesota Statutes 340A.410, subdivision 10, paragraph (b), 8.29Bemidji State University may be issued temporary liquor licenses for events at the 8.30university authorized under Minnesota Statutes, section 340A.412, subdivision 4, 8.31paragraph (a), clause (7), item (iv), on an as needed basis, provided that the combination 8.32of temporary licenses issued not exceed 12 events or a total of 12 days within a 12-month 8.33period.9.1EFFECTIVE DATE.This section is effective the day following final enactment.