HF 2147

as introduced - 90th Legislature (2017 - 2018) Posted on 03/06/2017 01:23pm

A bill for an act
relating to liquor; requiring a direct shipper's license for certain shipments of wine
to consumers; establishing reporting requirements for direct shippers; amending
Minnesota Statutes 2016, section 340A.417.

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

Section 1.

Minnesota Statutes 2016, section 340A.417, is amended to read:

340A.417 new text begin DIRECT WINE new text end SHIPMENTS deleted text begin INTO MINNESOTA deleted text end new text begin ; LICENSE
REQUIRED new text end .

new text begin Subdivision 1. new text end

new text begin Direct shipper license. new text end

(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 new text begin obtain a direct shipper license which allows the winery
to new text end 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. deleted text begin Delivery of a shipment under this section may not be deemed a sale in this state.
deleted text end

new text begin (b) A winery applicant for an initial or renewal direct shipper license shall:
new text end

new text begin (1) file an application with the department on a form prescribed by the department;
new text end

new text begin (2) pay a license fee of $50;
new text end

new text begin (3) submit a copy of the applicant's current federal basic wine manufacturing permit;
new text end

new text begin (4) register each brand label offered for sale in this state, if not previously registered,
and pay all applicable brand registration fees under section 340A.311;
new text end

new text begin (5) hold a Minnesota sales and use tax license issued by the Department of Revenue;
and
new text end

new text begin (6) be current on the remittance of all required state taxes.
new text end

new text begin (c) A direct shipper license under this section is valid for a calendar year.
new text end

new text begin (d) A holder of a direct shipper license may only ship wine that was produced by the
direct shipper in accordance with the direct shipper's federal basic wine manufacturing
permit.
new text end

new text begin (e) A holder of a direct shipper license is deemed to have consented to the jurisdiction
of the department and the courts of this state with respect to the enforcement of this section.
new text end

new text begin (f) Any sale and shipment of wine directly to a person in this state from a winery that
does not hold a valid direct shipper license is prohibited.
new text end

deleted text begin (b) deleted text end new text begin (g) new text end The shipping container of any wine sent under this section must be clearly marked
"Alcoholic Beverages: adult signature (over 21 years of age) required."

deleted text begin (c) deleted text end new text begin (h) new 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.

new text begin Subd. 2. new text end

new text begin Reporting. new text end

new text begin A holder of a direct shipper's license shall file quarterly reports
with the department on or before the 15th day of the month following each quarterly period.
The required quarterly report shall be filed even if no business was transacted in this state
during the reporting period. The report shall include:
new text end

new text begin (1) the business name, address, and direct shipper license number of the holder of the
direct shipper license;
new text end

new text begin (2) the total gallons of wine shipped to residents of this state during the quarterly period;
and
new text end

new text begin (3) the date, type of wine, brand label, quantity, and purchase price of each shipment,
along with any taxes paid by the purchaser, during the quarterly period.
new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

deleted text begin (d) deleted text end new text begin (a) 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 (e) deleted text end new text begin (b) new text end or deleted text begin (f) deleted text end new text begin (c) 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 (e) deleted text end new text begin (b) 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 (d) deleted text end new text begin (a) new text end , is guilty of a misdemeanor.

deleted text begin (f) deleted text end new text begin (c) new text end Any person who commits a third or subsequent violation of this section 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 January 1, 2018.
new text end