HF 1476

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:51am

A bill for an act
relating to liquor; modifying and clarifying certain licensing requirements;
authorizing various licenses; modifying provision relating to shipments into the
state; providing for wine tastings; extending certain on-sale hours; amending
Minnesota Statutes 2008, sections 340A.101, by adding a subdivision; 340A.401;
340A.404, subdivisions 1, 4, 4a; 340A.412, subdivision 14; 340A.414,
subdivision 1; 340A.417; 340A.419, subdivision 2; proposing coding for new
law in Minnesota Statutes, chapter 340A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 340A.101, is amended by adding a
subdivision to read:

new text begin Subd. 31. new text end

new text begin Public facility. new text end

new text begin "Public facility" is a park, community center, or other
accommodation or facility owned or managed by or on behalf of a subdivision of the state,
including any county, city, town, township, or independent district of the state.
new text end

Sec. 2.

Minnesota Statutes 2008, section 340A.401, is amended to read:

340A.401 LICENSE REQUIRED.

Except as provided in this chapter, no person may directly or indirectly, on any
pretense or by any device, sell, barter, keep for sale, charge for possession, or otherwise
dispose of alcoholic beverages as part of a commercial transaction without having
obtained the required license or permit. new text begin Rental of or permission to use a public facility is
not a commercial transaction for the purposes of this chapter.
new text end

Sec. 3.

Minnesota Statutes 2008, section 340A.404, subdivision 1, is amended to read:

Subdivision 1.

Cities.

(a) A city may issue an on-sale intoxicating liquor license to
the following establishments located within its jurisdiction:

(1) hotels;

(2) restaurants;

(3) bowling centers;

(4) clubs or congressionally chartered veterans organizations with the approval of
the commissioner, provided that the organization has been in existence for at least three
years and liquor sales will only be to members and bona fide guests new text begin , except that a club
may conduct wine tastings as allowed under section 340A.419, subdivision 2 new text end ;

(5) sports facilities located on land owned by the Metropolitan Sports Commission;
and

(6) exclusive liquor stores.

(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.

new text begin (c) For the purposes of chapter 340A only, a city may issue an on-sale intoxicating
liquor license, an on-sale wine license, or an on-sale malt liquor license to a convention
center within the city, notwithstanding any law, local ordinance, or charter provision. A
license issued under this paragraph authorizes sales on all days of the week to persons
attending events at the convention center. This does not apply to convention centers
in the seven-county metro area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2008, section 340A.404, subdivision 4, is amended to read:

Subd. 4.

Special provisions; sports, conventions, or cultural facilities;
community festivals.

(a) The governing body of a municipality may authorize a holder of
a retail on-sale intoxicating liquor license issued by the municipality or by an adjacent
municipality to dispense intoxicating liquor at any convention, banquet, conference,
meeting, or social affair conducted on the premises of a sports, convention, or cultural
facility owned by the municipality or instrumentality thereof having independent
policy-making and appropriating authority and located within the municipality. The
licensee must be engaged to dispense intoxicating liquor at an event held by a person or
organization permitted to use the premises, and may dispense intoxicating liquor only to
persons attending the event. The licensee may not dispense intoxicating liquor to any
person attending or participating in deleted text begin an deleted text end new text begin a youth new text end amateur athletic event new text begin , for persons 18 years
of age or younger, new text end held on the premises.

(b) The governing body of a municipality may authorize a holder of a retail on-sale
intoxicating liquor license issued by the municipality to dispense intoxicating liquor
off premises at a community festival held within the municipality. The authorization
shall specify the area in which the intoxicating liquor must be dispensed and consumed,
and shall not be issued unless the licensee demonstrates that it has liability insurance as
prescribed by section 340A.409 to cover the event.

Sec. 5.

Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to read:

Subd. 4a.

State-owned recreation; entertainment facilities.

Notwithstanding any
other law, local ordinance, or charter provision, the commissioner may issue on-sale
intoxicating liquor licenses:

(1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the town of White, St. Louis County;

(2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm; deleted text begin and
deleted text end

(3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium, the intercollegiate football stadium, or at no more than seven other locations
within the boundaries of the University of Minnesota, provided that the Board of Regents
has approved an application for a license for the specified location deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) to the Duluth Entertainment and Convention Center Authority for beverage
sales on the premises of the Duluth Entertainment and Convention Center Arena during
intercollegiate hockey games.
new text end

The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 340A.412, subdivision 14, is amended to read:

Subd. 14.

Exclusive liquor stores.

(a) Except as otherwise provided in this
subdivision, an exclusive liquor store may sell only the following items:

(1) alcoholic beverages;

(2) tobacco products;

(3) ice;

(4) beverages, either liquid or powder, specifically designated for mixing with
intoxicating liquor;

(5) soft drinks;

(6) liqueur-filled candies;

(7) food products that contain more than one-half of one percent alcohol by volume;

(8) cork extraction devices;

(9) books and videos on the use of alcoholic beverages;

(10) magazines and other publications published primarily for information and
education on alcoholic beverages; deleted text begin and
deleted text end

new text begin (11) multiple use bags designed to carry purchased items; new text end

new text begin (12) devices designed to ensure safe storage and monitoring of alcohol in the home,
to prevent access by underage drinkers; and
new text end

deleted text begin (11) deleted text end new text begin (13) new text end home brewing equipment.

(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
license may sell food for on-premise consumption when authorized by the municipality
issuing the license.

(c) An exclusive liquor store may offer live or recorded entertainment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2008, section 340A.414, subdivision 1, is amended to read:

Subdivision 1.

Permit required.

No business establishment or club which does
not hold an on-sale intoxicating liquor license may directly or indirectly allow the
consumption and display of alcoholic beverages or knowingly serve any liquid for the
purpose of mixing with intoxicating liquor without first having obtained a permit from the
commissioner. new text begin Rental of a public facility does not make a subdivision or the facility a
"business establishment" for the purposes of this chapter.
new text end

Sec. 8.

Minnesota Statutes 2008, section 340A.417, is amended to read:

340A.417 SHIPMENTS INTO MINNESOTA.

(a) Notwithstanding section 297G.07, subdivision 2, or any provision of this chapter,
a winery licensed 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, in 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 sent under this section must be clearly
marked "Alcoholic Beverages: adult signature (over 21 years of age) required."

(c) deleted text begin No person may (1) advertise shipments authorized under this section, (2) by
advertisement or otherwise, solicit shipments authorized by this section, or (3) accept
orders for shipments authorized by this section by use of the Internet. No shipper located
outside Minnesota may advertise interstate reciprocal wine shipments in Minnesota.
deleted text end

deleted text begin (d) deleted text end It is not the intent of this section to impair the distribution of wine through
distributors or importing distributors, but only to permit shipments of wine for personal
use.

deleted text begin (e) deleted text end new text begin (d) new text end No criminal penalty may be imposed on a person for a violation of this
section other than a violation described in paragraph deleted text begin (f) deleted text end new text begin (e) new text end or deleted text begin (g) deleted text end new text begin (f) new text end . 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.

deleted text begin (f) deleted text end new text begin (e) new text end Any person who violates this section within two years of a violation for which
a cease and desist order was issued under paragraph deleted text begin (e) deleted text end new text begin (d) new text end , is guilty of a misdemeanor.

deleted text begin (g) deleted text end new text begin (f) new text end Any person who commits a third or subsequent violation of this section deleted text begin ,
including a violation for which a cease and desist order was issued under paragraph (c), deleted text end
within any subsequent two-year period is guilty of a gross misdemeanor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2008, section 340A.419, subdivision 2, is amended to read:

Subd. 2.

Tastings.

(a) Notwithstanding any other law, an exclusive liquor store
may conduct a wine tasting on the premises of a holder of an on-sale intoxicating liquor
license new text begin , including on the premises of a club holding a license under 340A.404, subdivision
1, paragraph (a), clause (4), or on the premises of a holder of a wine license under section
340A.404, subdivision 5, new text end that is not a temporary license if the exclusive liquor store
complies with this section.

(b) No wine at a wine tasting under this section may be sold for off-premises
consumption. A participant in the tasting may fill out a form indicating preferences for
wine. The form may be held on the premises of the exclusive liquor store to assist the
participant in making an off-sale purchase at a later date.

(c) Notwithstanding any other law, an exclusive liquor store may purchase or
otherwise obtain wine for a wine tasting conducted under this section from a wholesaler
licensed to sell wine. The wholesaler may sell or give wine to an exclusive liquor store
for a wine tasting conducted under this section and may provide personnel to assist
in the wine tasting.

(d) An exclusive liquor store that conducts a wine tasting under this section must use
any fees collected from participants in the tasting only to defray the cost of conducting
the tasting.

new text begin (e) The premises on which a tasting is conducted under this section must be insured
as required by section 340A.409.
new text end

Sec. 10.

new text begin [340A.5041] AIRPORT COMMISSION; EXTENDED HOURS.
new text end

new text begin Notwithstanding any law, rule, or ordinance to the contrary, the Metropolitan
Airports Commission may allow extended hours of sale at on-sale locations within the
security areas of the Lindbergh and Humphrey Terminals. Extended hours are allowed for
sales during the hours between 6:00 a.m. and 2:00 a.m. Monday through Sunday.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text begin AUGSBURG COLLEGE; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue an on-sale intoxicating liquor license to Augsburg College, or to
an entity holding a caterer's permit and a contract with Augsburg College, for catering on
the premises of Augsburg College campus, or for any portion of the premises as described
in the approved license application. The license authorized by this section may be issued
for space that is not compact and contiguous, provided that all such space is within the
boundaries of Augsburg College campus and is included in the description of the licensed
premises on the approved license application. The license authorizes sales on all days of
the week to persons attending events at the college. All other provisions of Minnesota
Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized
under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis
City Council in the manner provided by Minnesota Statutes, section 645.021,
notwithstanding Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 12. new text begin GRAND MARAIS; ON-SALE.
new text end

new text begin Notwithstanding any law, local ordinance, or charter provision to the contrary, the
city of Grand Marais may issue an on-sale intoxicating liquor license, or an on-sale wine
license and an on-sale malt liquor license, to Holland Motel, Inc. d/b/a the Best Western
Superior Inn and Suites located at 104 First Avenue East, Grand Marais, and an additional
on-sale intoxicating liquor license, or on-sale wine and on-sale malt liquor license to East
Bay Hospitality, LLC; d/b/a East Bay Suites located at 21 Wisconsin Street, Grand Marais.
The license may authorize sales only to persons who are registered guests at the lodging
establishment, their invitees, or persons attending a conference, meeting, or other event at
the lodging establishment. The license may authorize sales on all days of the week.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end