as introduced - 90th Legislature (2017 - 2018) Posted on 01/17/2017 10:34am
A bill for an act
relating to liquor; authorizing shipments of malt liquor into Minnesota with certain
conditions; amending Minnesota Statutes 2016, sections 297G.07, subdivision 1;
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2016, section 297G.07, subdivision 1, is amended to read:
The following are not subject to the excise tax:
(1) Sales by a manufacturer, brewer, or wholesaler for shipment outside the state in
(2) Alcoholic beverages sold or transferred between Minnesota wholesalers.
(3) Sales to common carriers engaged in interstate transportation of passengers, except
as provided in this chapter.
(4) Malt beverages served by a brewery for on-premise consumption at no charge, or
distributed to brewery employees for on-premise consumption under a labor contract.
(5) Shipments of wine new text beginnew text endto Minnesota residents under section 340A.417.
(6) Fruit juices naturally fermented or beer naturally brewed in the home for family use
and not sold or offered for sale.
(7) Sales of wine for sacramental purposes under section 340A.316.
(8) Alcoholic beverages sold to authorized manufacturers of food products or
pharmaceutical firms. The alcoholic beverage must be used exclusively in the manufacture
of food products or medicines. For purposes of this clause, "manufacturer" means a person
who manufactures food products intended for sale to wholesalers or retailers for ultimate
sale to the consumer.
(9) Liqueur-filled candy.
(10) Sales to a federal agency, that the state of Minnesota is prohibited from taxing under
the Constitution or laws of the United States or under the Constitution of Minnesota.
(11) Sales to Indian tribes as defined in section 297G.08.
(12) Shipments of intoxicating liquor from foreign countries to diplomatic personnel of
foreign countries assigned to service in this state.
(13) Shipments of bulk distilled spirits or bulk wine to farm wineries licensed under
section 340A.315 for input to the final product.
Minnesota Statutes 2016, section 340A.417, is amended to read:
(a) Notwithstanding section 297G.07, subdivision 2, or any provision of this chapter, a
winery new text beginnew text endlicensed in a state other than Minnesota, or a winery located in Minnesota,
may ship, for personal use and not for resale, not more than two cases of wine, containing
a maximum of nine liters per case, new text beginnew text endin any calendar year to any resident of Minnesota age
21 or over. Delivery of a shipment under this section may not be deemed a sale in this state.
(b) The shipping container of any wine new text beginnew text endsent under this section must be
clearly marked "Alcoholic Beverages: adult signature (over 21 years of age) required."
(c) It is not the intent of this section to impair the distribution of wine new text beginnew text end through distributors or importing distributors, but only to permit shipments of wine new text beginnew text endfor personal use.
(d) No criminal penalty may be imposed on a person for a violation of this section other
than a violation described in paragraph (e) or (f). Whenever it appears to the commissioner
that any person has engaged in any act or practice constituting a violation of this section,
and the violation is not within two years of any previous violation of this section, the
commissioner shall issue and cause to be served upon the person an order requiring the
person to cease and desist from violating this section. The order must give reasonable notice
of the rights of the person to request a hearing and must state the reason for the entry of the
order. Unless otherwise agreed between the parties, a hearing shall be held not later than
seven days after the request for the hearing is received by the commissioner after which
and within 20 days after the receipt of the administrative law judge's report and subsequent
exceptions and argument, the commissioner shall issue an order vacating the cease and
desist order, modifying it, or making it permanent as the facts require. If no hearing is
requested within 30 days of the service of the order, the order becomes final and remains
in effect until modified or vacated by the commissioner. All hearings shall be conducted in
accordance with the provisions of chapter 14. If the person to whom a cease and desist order
is issued fails to appear at the hearing after being duly notified, the person shall be deemed
in default, and the proceeding may be determined against the person upon consideration of
the cease and desist order, the allegations of which may be deemed to be true.
(e) Any person who violates this section within two years of a violation for which a
cease and desist order was issued under paragraph (d), is guilty of a misdemeanor.
(f) Any person who commits a third or subsequent violation of this section within any
subsequent two-year period is guilty of a gross misdemeanor.