SF 191

as introduced - 91st Legislature (2019 - 2020) Posted on 01/17/2019 01:54pm

A bill for an act
relating to liquor; allowing producers to provide liquor to nonprofit organizations
for tasting events; amending Minnesota Statutes 2018, sections 340A.404,
subdivision 10; 340A.418.

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

Section 1.

Minnesota Statutes 2018, section 340A.404, subdivision 10, is amended to
read:

Subd. 10.

Temporary on-sale licenses.

(a) The governing body of a municipality may
issue to (1) a club or charitable, religious, or other nonprofit organization in existence for
at least three years, (2) a political committee registered under section 10A.14, or (3) a state
university, a temporary license for the on-sale of intoxicating liquor in connection with a
social event within the municipality sponsored by the licensee. The license may authorize
the on-sale of intoxicating liquor for not more than four consecutive days, and may authorize
on-sales on premises other than premises the licensee owns or permanently occupies. The
license may provide that the licensee may contract for intoxicating liquor catering services
with the holder of a full-year on-sale intoxicating liquor license issued by any municipality.
The licenses are subject to the terms, including a license fee, imposed by the issuing
municipality. Licenses issued under this subdivision are subject to all laws and ordinances
governing the sale of intoxicating liquor except sections 340A.409 and 340A.504, subdivision
3, paragraph (d), and those laws and ordinances which by their nature are not applicable.
Licenses under this subdivision are not valid unless first approved by the commissioner of
public safety.

(b) A county under this section may issue a temporary license only to a premises located
in the unincorporated or unorganized territory of the county.

(c) The governing body of a municipality may issue to a brewer who manufactures fewer
than 3,500 barrels of malt liquor in a year new text begin , a winery licensed under section 340A.301,
subdivision 6, paragraph (b), a farm winery licensed under section 340A.315, new text end or a
microdistillery a temporary license for the on-sale of intoxicating liquor in connection with
a social event within the municipality sponsored by the brewer or microdistillery. The terms
and conditions specified for temporary licenses under paragraph (a) shall apply to a license
issued under this paragraph, except that the requirements of section 340A.409, subdivisions
1 to 3a, shall apply to the license.

Sec. 2.

Minnesota Statutes 2018, section 340A.418, is amended to read:

340A.418 ALCOHOLIC BEVERAGE TASTINGS.

Subdivision 1.

Definition.

For purposes of this section, an "alcoholic beverage tasting"
or "tasting" means an event at which persons pay a fee or donation to participate, and are
allowed to consume wine, malt liquor, or both, by the glass without paying a separate charge
for each glass.

Subd. 2.

Tastings authorized.

(a) A charitable, religious, or other nonprofit organization
may conduct a tasting of not more than four hours duration on premises the organization
owns or leases or has use donated to it, or on the licensed premises of a holder of an on-sale
intoxicating liquor license that is not a temporary license, if the organization holds a
temporary on-sale intoxicating liquor license under section 340A.404, subdivision 10, and
complies with this section. An organization holding a temporary license may be assisted in
conducting the tasting by another nonprofit organization.

(b) An organization that conducts a tasting under this section may use the net proceeds
from the tasting only for:

(1) the organization's primary nonprofit purpose; or

(2) donation to another nonprofit organization assisting in the tasting, if the other
nonprofit organization uses the donation only for that organization's primary nonprofit
purpose.

(c) No wine or malt liquor at a tasting under this section may be sold, or orders taken,
for off-premises consumption.

deleted text begin (d) Notwithstanding any other law, an organization may purchase or otherwise obtain
wine or malt liquor for a tasting conducted under this section from a wholesaler licensed to
sell wine or malt liquor, and the wholesaler may sell or give wine or malt liquor to an
organization for a tasting conducted under this section and may provide personnel to assist
in the tasting. A wholesaler who sells or gives wine or malt liquor to an organization for a
tasting under this section must deliver the wine or malt liquor directly to the location where
the tasting is conducted.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end This section does not prohibit or restrict a tasting that is:

(1) located on on-sale premises where no charitable organization is participating; or

(2) located on on-sale premises where the proceeds are for a designated charity but where
the tasting is primarily for educational purposes.

deleted text begin (f) deleted text end new text begin (e) new text end The four-hour limitation specified in paragraph (a) shall not apply to a tasting at
a convention of fine wine, malt liquor, and gourmet food exhibitors, provided the convention
has at least 100 exhibitors and takes place over not more than three days.

new text begin Subd. 3. new text end

new text begin Provision of liquor and tasting-related services. new text end

new text begin (a) Notwithstanding any
law to the contrary, any Minnesota producer, including but not limited to a brewer, brew
pub, winery, farm winery, distiller, or microdistiller licensed by the state, may sell or give
liquor produced by the licensee to an organization for a tasting conducted under this section,
and may provide personnel to assist in the tasting. A producer who sells or gives liquor to
an organization for a tasting under this section must deliver the liquor directly to the location
where the tasting is being conducted.
new text end

new text begin (b) Notwithstanding any law to the contrary, an organization may purchase or otherwise
obtain wine or malt liquor for a tasting conducted under this section from a wholesaler
licensed to sell wine or malt liquor, and the wholesaler may sell or give wine or malt liquor
to an organization for a tasting conducted under this section and may provide personnel to
assist in the tasting. A wholesaler who sells or gives wine or malt liquor to an organization
for a tasting under this section must deliver the wine or malt liquor directly to the location
where the tasting is conducted.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end