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SF 2808

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/13/2010 02:25pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

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A bill for an act
relating to liquor; authorizing and clarifying terms of various licenses; modifying
certain insurance requirements; authorizing State Agricultural Society to license
and regulate tobacco sales on State Fairgrounds; amending Minnesota Statutes
2008, sections 37.21; 340A.404, subdivisions 2, 5; 340A.409, subdivisions 1,
4; 340A.419, as amended; 461.12, subdivision 1; Laws 2009, chapter 120,
section 16.

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

Section 1.

Minnesota Statutes 2008, section 37.21, is amended to read:


37.21 SALE OF LIQUORS.

Subdivision 1.

Liquor prohibited.

Except as provided deleted text beginunder Laws 2003, chapter
126, section 29, as amended by Laws 2005, chapter 25, section 6
deleted text endnew text begin in subdivision 2new text end, no
person may sell, barter, give away, or otherwise dispose of or introduce, have, or keep for
barter, gift, or sale, any intoxicating liquors of any kind upon the State Fairgrounds, or
aid and abet any of those acts. The presence and possession of any kind of these liquors,
in any quantity, upon the person or upon the premises leased or occupied by any person
within these limits is a public nuisance and is prima facie evidence of the purpose of the
person to barter, give away, or sell the liquor. Any person who violates this section is
guilty of a misdemeanor.

Subd. 2.

Exceptions.

deleted text begin Notwithstanding subdivision 1, deleted text end new text begin The following exceptions
apply:
new text end

new text begin (a)new text end The State Agricultural Society may deleted text beginauthorizedeleted text endnew text begin issuenew text end, under terms and conditions
it chooses, new text beginlicenses for new text endthe sale, possession, and consumption of intoxicating liquors at
special events taking place on the fairgrounds at times other than during the annual fair
including, but not limited to, family reunions, class reunions, weddings, conventions, and
similar events. deleted text beginThis section does not authorize the society to issue retail licenses for the
sale of alcoholic beverages. Notwithstanding subdivision 1,
deleted text end

new text begin (b)new text end The State Agricultural Society may deleted text beginalso authorizedeleted text endnew text begin issuenew text end, under terms and
conditions it chooses, consistent with state law, new text beginlicenses for new text endthe sale, possession, and
consumption of intoxicating malt liquors during the annual fair or at other times of their
choosing, provided that at least one Minnesota brewed malt liquor is made available for
sale at each allowed location within the grounds.

new text begin (c) The State Agricultural Society may issue a license for the sale and consumption
of wine to a holder of a state fair concession's contract with the State Agricultural Society
which authorizes the licensee to sell Minnesota-produced wine by the glass at the state
fair in connection with the sale of food by the concessionaire. For the purposes of this
subdivision, "Minnesota-produced wine" means wine produced by a farm winery licensed
under section 340A.315.
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. 2.

Minnesota Statutes 2008, section 340A.404, subdivision 2, is amended to read:


Subd. 2.

Special provision; city of Minneapolis.

(a) The city of Minneapolis may
issue an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the
Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding
the limitations of law, or local ordinance, or charter provision relating to zoning or school
or church distances. The licenses authorize sales on all days of the week to holders
of tickets for performances presented by the theaters and to members of the nonprofit
corporations holding the licenses and to their guests.

(b) The city of Minneapolis may issue an intoxicating liquor license to 510
Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises
owned by 510 Groveland Associates, notwithstanding limitations of law, or local
ordinance, or charter provision.

(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to
Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540
Park Avenue South in Minneapolis, and to the American Swedish Institute for use on
the premises owned by the American Swedish Institute at 2600 Park Avenue South,
notwithstanding limitations of law, or local ordinances, or charter provision relating to
zoning or school or church distances.

(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to
the American Association of University Women, Minneapolis branch, for use on the
premises owned by the American Association of University Women, Minneapolis branch,
at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local
ordinances, or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2
percent malt liquor license to a restaurant located at 5000 Penn Avenue South, and an
on-sale wine license and an on-sale malt liquor license to a restaurant located at 1931
Nicollet Avenue South, notwithstanding any law or local ordinance or charter provision.

(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt
liquor license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue
South, the Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue
South, the Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring
Playhouse located at 1633 Hennepin Avenue South, the Jungle Theater located at 2951
Lyndale Avenue South, Brave New Institute located at 2605 Hennepin Avenue South,
the Guthrie Lab located at 700 North First Street, and the Southern Theatre located at
1420 Washington Avenue South, notwithstanding any law or local ordinance or charter
provision. The license authorizes sales on all days of the week.

(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to
University Gateway Corporation, a Minnesota nonprofit corporation, for use by a
restaurant or catering operator at the building owned and operated by the University
Gateway Corporation on the University of Minnesota campus, notwithstanding limitations
of law, or local ordinance or charter provision. The license authorizes sales on all days of
the week.

(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
Walker Art Center's concessionaire or operator, for a restaurant and catering operator
on the premises of the Walker Art Center, notwithstanding limitations of law, or local
ordinance or charter provisions. The license authorizes sales on all days of the week.

(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
Guthrie Theater's concessionaire or operator for a restaurant and catering operator on the
premises of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or
charter provisions. The license authorizes sales on all days of the week.

(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt
liquor license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or
operator for a restaurant and catering operator on the premises of the Minnesota Book and
Literary Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local
ordinance or charter provision. The license authorizes sales on all days of the week.

(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a
restaurant located at 5411 Penn Avenue South, notwithstanding any law or local ordinance
or charter provision.

new text begin (l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
Museum of Russian Art's concessionaire or operator for a restaurant and catering operator
on the premises of the Museum of Russian Art located at 5500 Stevens Avenue South,
notwithstanding any law or local ordinance or charter provision.
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, subdivisions
2 and 3.
new text end

Sec. 3.

Minnesota Statutes 2008, section 340A.404, subdivision 5, is amended to read:


Subd. 5.

Wine licenses.

(a) A municipality may issue an on-sale wine license with
the approval of the commissioner to a restaurant having facilities for seating at least 25
guests at one time. A wine license permits the sale of wine of up to 14 percent alcohol by
volume for consumption with the sale of food. A wine license authorizes the sale of wine
on all days of the week unless the issuing authority restricts the license's authorization to
the sale of wine on all days except Sundays.

(b) The governing body of a municipality may by ordinance authorize a holder of
an on-sale wine license issued pursuant to paragraph (a) who is also licensed to sell 3.2
percent malt liquors at on-sale pursuant to section 340A.411, and whose gross receipts
are at least 60 percent attributable to the sale of food, to sell intoxicating malt liquors
at on-sale without an additional license.

(c) A municipality may issue an on-sale wine license with the approval of the
commissioner to a licensed bed and breakfast facility. A license under this paragraph
authorizes a bed and breakfast facility to furnish wine only to registered guests of the
facility and, if the facility contains a licensed commercial kitchen, also to guests attending
private events at the facility.

new text begin (d) The State Agricultural Society may issue an on-sale wine license to the holder of
a state fair concession contract pursuant to section 37.21, subdivision 2.
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.409, subdivision 1, is amended to read:


Subdivision 1.

Insurance required.

No retail license may be issued, maintained or
renewed unless the applicant demonstrates proof of financial responsibility with regard
to liability imposed by section 340A.801. The issuing authority must submit to the
commissioner the applicant's proof of financial responsibility. This subdivision does not
prohibit a local unit of government from requiring higher insurance or bond coverages, or
a larger deposit of cash or securities. The minimum requirement for proof of financial
responsibility may be given by filing:

(1) a certificate that there is in effect for the license period an insurance policy
issued by an insurer required to be licensed under section 60A.07, subdivision 4, or by
an insurer recognized as an eligible surplus lines carrier pursuant to section 60A.206 or
pool providing at least $50,000 of coverage because of bodily injury to any one person in
any one occurrence, $100,000 because of bodily injury to two or more persons in any one
occurrence, $10,000 because of injury to or destruction of property of others in any one
occurrence, $50,000 for loss of means of support of any one person in any one occurrence,
deleted text begin anddeleted text end $100,000 for loss of means of support of two or more persons in any one occurrencenew text begin,
$50,000 for other pecuniary loss of any one person in any one occurrence, and $100,000
for other pecuniary loss of two or more persons in any one occurrence
new text end;

(2) a bond of a surety company with minimum coverages as provided in clause (1); or

(3) a certificate of the commissioner of management and budget that the licensee
has deposited with the commissioner of management and budget $100,000 in cash or
securities which may legally be purchased by savings banks or for trust funds having a
market value of $100,000.

This subdivision does not prohibit an insurer from providing the coverage required
by this subdivision in combination with other insurance coverage.

An annual aggregate policy limit for dram shop insurance of not less than $300,000
per policy year may be included in the policy provisions.

A liability insurance policy required by this section must provide that it may not be
canceled for:

(1) any cause, except for nonpayment of premium, by either the insured or the
insurer unless the canceling party has first given 30 days' notice in writing to the issuing
authority of intent to cancel the policy; and

(2) nonpayment of premium unless the canceling party has first given ten days'
notice in writing to the issuing authority of intent to cancel the policy.

new text begin All insurance policies which provide coverage with regard to any liability imposed
by section 340A.801 must contain at least the minimum coverage required by this section.
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. 5.

Minnesota Statutes 2008, section 340A.409, subdivision 4, is amended to read:


Subd. 4.

Insurance not required.

Subdivision 1 does not apply to licensees who
by affidavit establish that:

(1) they are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000
of 3.2 percent malt liquor for the preceding year;

(2) they are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000
of 3.2 percent malt liquor for the preceding year;

(3) they are holders of on-sale wine licenses with sales of less than $25,000 for
wine for the preceding year; deleted text beginor
deleted text end

(4) they are holders of temporary wine licenses issued under lawnew text begin; or
new text end

new text begin (5) they are wholesalers who donate wine to an organization for a wine tasting
conducted under section 340A.418 or 340A.419
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. 6.

Minnesota Statutes 2008, section 340A.419, as amended by Laws 2009, chapter
120, section 12, is amended to read:


340A.419 deleted text beginWINEdeleted text end TASTINGS CONDUCTED BY EXCLUSIVE LIQUOR
STORE.

Subdivision 1.

Definition.

For purposes of this section, a "deleted text beginwinedeleted text end tasting" is an event
of not more than four hours' duration at which persons pay a fee to participate and are
allowed to consume winenew text begin, malt liquor, or spiritsnew text end by the glass without paying a separate
charge for each glass.

Subd. 2.

Tastings.

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

(b) No wine deleted text beginat a wine tastingdeleted text endnew text begin, malt liquor, or spirits authorized for use new text endunder this
section may be sold for off-premises consumption. A participant in the tasting may fill out
a form indicating preferences for winenew text begin, malt liquor, or spiritsnew text end. 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 new text beginor spirits new text endfor a deleted text beginwinedeleted text end tasting conducted under this section from
a wholesaler licensed to sell winenew text begin or spiritsnew text end. The wholesaler may sell or give wine new text beginor
spirits
new text endto an exclusive liquor store for a deleted text beginwinedeleted text end tasting conducted under this section and may
provide personnel to assist in the deleted text beginwinedeleted text end tasting.

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

(e) Notwithstanding section 340A.409, subdivision 4, the premises on which a deleted text beginwinedeleted text end
tasting is conducted must be insured as required by section 340A.409, subdivision 1.

new text begin Subd. 3. new text end

new text begin Malt liquor tastings. new text end

new text begin An exclusive liquor store conducting a malt liquor
tasting under this section must also comply with the requirements of section 340A.510,
subdivision 2.
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. 7.

Minnesota Statutes 2008, section 461.12, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

A town board or the governing body of a home rule
charter or statutory city may license and regulate the retail sale of tobacco as defined
in section 609.685, subdivision 1, and establish a license fee for sales to recover the
estimated cost of enforcing this chapter. The county board shall license and regulate the
sale of tobacco in unorganized territory of the county new text beginexcept on the State Fairgrounds new text endand
in a town or a home rule charter or statutory city if the town or city does not license and
regulate retail tobacco sales. new text beginThe State Agricultural Society shall license and regulate
the sale of tobacco on the State Fairgrounds.
new text endRetail establishments licensed by a town
or city to sell tobacco are not required to obtain a second license for the same location
under the licensing ordinance of the county.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Laws 2009, chapter 120, section 16, is amended to read:


Sec. 16. CITY OF MINNEAPOLIS; LIQUOR LICENSE.

Notwithstanding any law, ordinance, or charter provision to the contrary, the city of
Minneapolis may issue annew text begin on-salenew text end intoxicating liquor license to an establishment located
at 2124 Como Avenue Southeast.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on the effective date of Laws 2009,
chapter 120, section 16.
new text end

Sec. 9. new text beginMINNEAPOLIS CAMPUS OF ST. THOMAS UNIVERSITY; 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 St. Thomas University,
for catering on the premises of the Minneapolis campus of St. Thomas University, or for
any portion of the premises as described in the approved license application. A license
authorized by this section may be issued for space that is not compact and contiguous,
provided that all the space is within the boundaries of the Minneapolis campus of St.
Thomas University 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, subject to the hours and days of sale restrictions in
Minnesota Statutes, section 340A.504, and any reasonable license conditions or restrictions
imposed by the licensing authority. 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, subdivisions
2 and 3.
new text end

Sec. 10. new text beginBEMIDJI REGIONAL CENTER; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any other law, local ordinance, or charter provision to the contrary,
the city of Bemidji may issue an on-sale intoxicating liquor license, or an on-sale wine and
malt liquor license to the Bemidji Regional Event Center. Any license authorized by this
section may be issued for space that is not compact and contiguous, provided that all the
space is within the boundaries of the Bemidji Regional Event Center and is included in
the description of the licensed premises on the approved license application. A license
issued under this paragraph authorizes sales on all days of the week to persons attending
activities or events at the event center. 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 the day following final enactment.
new text end

Sec. 11. new text beginEXEMPTION; BEMIDJI STATE UNIVERSITY.
new text end

new text begin Notwithstanding Minnesota Statutes 340A.410, subdivision 10, paragraph (b),
Bemidji State University may be issued temporary liquor licenses for events at the
university authorized under Minnesota Statutes, section 340A.412, subdivision 4,
paragraph (a), clause (7), item (iv), on an as needed basis, provided that the combination
of temporary licenses issued not exceed 12 events or a total of 12 days within a 12-month
period.
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