Minnesota Legislature
SF 1585
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to liquor; modifying law relating to
wholesaler-retailer relationships; amending Minnesota
Statutes 2004, sections 340A.308; 340A.318.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 340A.308, is
amended to read:
340A.308 PROHIBITED TRANSACTIONS.
(a) Except as otherwise provided in section 340A.301, no
brewer deleted text begin or malt liquor wholesaler deleted text end may directly or indirectly, or
through an affiliate or subsidiary company, or through an
officer, director, stockholder, or partner:
(1) give, or lend money, credit, or other thing of value to
a retailer;
(2) give, lend, lease, or sell furnishing or equipment to a
retailer;
(3) have an interest in a retail license; or
(4) be bound for the repayment of a loan to a retailer.
(b) No retailer may solicit any equipment, fixture,
supplies, money, or other thing of value from a brewer deleted text begin or malt
liquor wholesaler deleted text end if furnishing of these items by the brewer deleted text begin or
wholesaler deleted text end is prohibited by law and the retailer knew or had
reason to know that the furnishing is prohibited by law.
(c) This section does not prohibit a manufacturer deleted text begin or
wholesaler deleted text end from:
(1) furnishing, lending, or renting to a retailer outside
signs, of a cost of up to $400 excluding installation and repair
costs;
(2) furnishing, lending, or renting to a retailer inside
signs and other promotional material, of a cost of up to $300 in
a year;
(3) furnishing to or maintaining for a retailer equipment
for dispensing malt liquor, including tap trailers, cold plates
and other dispensing equipment, of a cost of up to $100 per tap
in a year;
(4) using or renting property owned continually since
November 1, 1933, for the purpose of selling intoxicating or 3.2
percent malt liquor at retail; new text begin or
new text end
(5) extending customary commercial credit to a retailer in
connection with a sale of nonalcoholic beverages only, or
engaging in cooperative advertising agreements with a retailer
in connection with the sale of nonalcoholic beverages onlydeleted text begin ; or
deleted text end
deleted text begin
(6) in the case of a wholesaler, with the prior written
consent of the commissioner, selling beer on consignment to a
holder of a temporary license under section 340A.403,
subdivision 2, or 340A.404, subdivision 10deleted text end .
Sec. 2.
Minnesota Statutes 2004, section 340A.318, is
amended to read:
340A.318 CREDIT EXTENSIONS RESTRICTED.
Subdivision 1.
Restriction.
Except as provided in this
section, no retail licensee may accept or receive credit, other
than merchandising credit in the ordinary course of business for
a period not to exceed 30 days, from a distiller,
manufacturer, deleted text begin or wholesaler of distilled spirits or wine,deleted text end or
agent or employee thereof. No distillerdeleted text begin ,deleted text end new text begin or new text end manufacturer deleted text begin or
wholesaler deleted text end may extend the prohibited credit to a retail
licensee. No retail licensee delinquent beyond the 30-day
period shall solicit, accept or receive credit or purchase or
acquire distilled spirits or wine directly or indirectly, and no
distillerdeleted text begin ,deleted text end new text begin or new text end manufacturer deleted text begin or wholesaler deleted text end shall knowingly grant
or extend credit nor sell, furnishnew text begin ,new text end or supply distilled spirits
or wine to a retail licensee who has been posted delinquent
under subdivision 3. No right of action shall exist for the
collection of any claim based upon credit extended contrary to
the provisions of this section.
Subd. 2.
Reporting.
Every distillerdeleted text begin ,deleted text end new text begin or new text end manufacturer deleted text begin or
wholesaler deleted text end selling to retailers shall submit to the commissioner
in triplicate not later than Thursday of each calendar week a
verified list of the names and addresses of each retail licensee
purchasing distilled spirits or wine from that distillerdeleted text begin ,deleted text end new text begin or
new text end
manufacturerdeleted text begin , or wholesaler deleted text end who, on the first day of that
calendar week, was delinquent beyond the 30-day period, or a
verified statement that no delinquencies exist which are
required to be reported. The name and address of each retail
licensee who makes payment with a postdated check, or a check
that is dishonored on presentment, must also be submitted to the
commissioner at that time. If a retail licensee previously
reported as delinquent cures the delinquency by payment, the
name and address of that licensee shall be submitted in
triplicate to the commissioner not later than the close of the
second full business day following the day the delinquency was
cured.
Subd. 3.
Posting; notice.
Verified lists or statements
required by subdivision 2 shall be posted by the commissioner in
offices of the department in places available for public
inspection not later than the Monday following receipt.
Documents posted shall constitute notice to every distillerdeleted text begin ,deleted text end new text begin or
new text end
manufacturerdeleted text begin , or wholesaler deleted text end of the information posted. Actual
notice, however received, also constitutes notice.
Subd. 4.
Miscellaneous provisions.
The 30-day
merchandising period allowed by this section shall commence with
the day immediately following the date of invoice and shall
include all successive days, including Sundays and holidays, to
and including the 30th successive day. In addition to other
legal methods, payment by check during the period for which
merchandising credit may be extended shall be considered
payment. All checks received in payment for distilled spirits
or wine shall be deposited promptly for collection. A postdated
check or a check dishonored on presentation for payment does not
constitute payment. A retail licensee shall not be deemed
delinquent for any alleged sale in any instance where there
exists a bona fide dispute between the licensee and the
distillerdeleted text begin ,deleted text end new text begin or new text end manufacturer deleted text begin or wholesaler deleted text end as to the amount owing
as a result of the alleged sale. A delinquent retail licensee
who engages in the retail liquor business at two or more
locations shall be deemed to be delinquent with respect to each
location. A retail licensee who engages in the retail liquor
business at two or more locations means "a person or group of
persons possessing 50 percent or more ownership in two or more
locations."
Subd. 5.
License suspension or revocation.
The license
of any retail licensee, distiller, new text begin or new text end manufacturer deleted text begin or wholesaler
deleted text end
violating any provision of this section shall be subject to
suspension or revocation in the manner provided by this chapter.