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HF 2620

as introduced - 92nd Legislature (2021 - 2022) Posted on 05/12/2021 04:46pm

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

Bill Text Versions

Engrossments
Introduction Posted on 05/12/2021

Current Version - as introduced

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A bill for an act
relating to liquor; converting 3.2 percent malt liquor licenses to 5.5 percent alcoholic
beverage licenses; making conforming changes; amending Minnesota Statutes
2020, sections 28A.16; 169A.35, subdivisions 1, 1a, 2, 3, 4; 181A.115; 182.651,
subdivision 18; 204C.06, subdivision 7; 270C.725, subdivision 3; 295.75,
subdivision 1; 297G.01, subdivisions 10, 18, 21; 297G.04, subdivision 1; 340A.101,
subdivisions 14, 19; 340A.24, subdivision 1; 340A.301, subdivisions 1, 4, 8, 12;
340A.308; 340A.310; 340A.311; 340A.402, subdivision 1; 340A.403; 340A.404,
subdivisions 2, 5; 340A.4055; 340A.407; 340A.408, subdivisions 1, 4, 5; 340A.409,
subdivision 4; 340A.410, subdivision 8; 340A.411; 340A.412, subdivision 6;
340A.414, subdivision 2; 340A.503, subdivision 1; 340A.504, subdivisions 1, 6,
7; 340A.508, subdivision 2; 349.12, subdivision 3c; 349.17, subdivisions 7, 9;
349.1721, subdivisions 3, 4; 609.33, subdivisions 1, 4; 624.701, subdivision 1a;
624.731, subdivisions 5, 8.

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

ARTICLE 1

LIQUOR ACT

Section 1.

Minnesota Statutes 2020, section 340A.101, subdivision 14, is amended to
read:


Subd. 14.

Intoxicating liquor.

"Intoxicating liquor" is ethyl alcohol, distilled, fermented,
spirituous, vinous, and malt beverages containing more than deleted text begin3.2deleted text endnew text begin 5.5new text end percent of alcohol by
weight.

Sec. 2.

Minnesota Statutes 2020, section 340A.101, subdivision 19, is amended to read:


Subd. 19.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end.

"deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverage
new text end" is deleted text beginmalt liquordeleted text end new text beginan alcoholic beverage new text endcontaining not less than one-half
of one percent alcohol by volume nor more than deleted text begin3.2deleted text endnew text begin 5.5new text end percent alcohol by weightnew text begin, and
includes but is not limited to beer, ale, hard cider, hard seltzer, and canned cocktails
new text end.

Sec. 3.

Minnesota Statutes 2020, section 340A.24, subdivision 1, is amended to read:


Subdivision 1.

On-sale license.

A brew pub may be issued an on-sale intoxicating liquor
or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end license by a municipality for a restaurant
operated in the place of manufacture.

Sec. 4.

Minnesota Statutes 2020, section 340A.301, subdivision 1, is amended to read:


Subdivision 1.

Licenses required.

No person may directly or indirectly manufacture or
sell at wholesale intoxicating liquor, or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end
without obtaining an appropriate license from the commissioner, except where otherwise
provided in this chapter. A manufacturer's license includes the right to import. A licensed
brewer may sell the brewer's products at wholesale only if the brewer has been issued a
wholesaler's license. The commissioner shall issue a wholesaler's license to a brewer only
if (1) the commissioner determines that the brewer was selling the brewer's own products
at wholesale in Minnesota on January 1, 1991, or (2) the brewer has acquired a wholesaler's
business or assets under subdivision 9, paragraph (c) or (d). A licensed wholesaler of
intoxicating malt liquor may sell deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end at wholesale
without an additional license.

Sec. 5.

Minnesota Statutes 2020, section 340A.301, subdivision 4, is amended to read:


Subd. 4.

Bond.

The commissioner may not issue a license under this section to a person
who has not filed a bond with corporate surety, or cash, or United States government bonds
payable to the state. The proof of financial responsibility must be approved by the
commissioner before the license is issued. The bond must be conditioned on the licensee
obeying all laws governing the business and paying when due all taxes, fees, penalties and
other charges, and must provide that it is forfeited to the state on a violation of law. This
subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315,
that is in existence as of January 1, 2010. Bonds must be in the following amounts:

Manufacturers and wholesalers of intoxicating
liquor except as provided in this subdivision
$
10,000
Manufacturers and wholesalers of wine up to 25
percent alcohol by weight
$
5,000
Manufacturers and wholesalers of beer of more
than deleted text begin3.2deleted text endnew text begin 5.5new text end percent alcohol by weight
$
1,000
Manufacturers and wholesalers of fewer than
20,000 proof gallons
$
2,000
Manufacturers and wholesalers of 20,000 to
40,000 proof gallons
$
3,000

Sec. 6.

Minnesota Statutes 2020, section 340A.301, subdivision 8, is amended to read:


Subd. 8.

Interest in other business.

(a) Except as provided in this subdivision, a holder
of a license as a manufacturer, brewer, importer, or wholesaler may not have any ownership,
in whole or in part, in a business holding a retail intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt
liquor
deleted text endnew text begin alcoholic beveragenew text end license. The commissioner may not issue a license under this
section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating liquor
has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. A
manufacturer or wholesaler of intoxicating liquor may use or have property rented for retail
intoxicating liquor sales only if the manufacturer or wholesaler has owned the property
continuously since November 1, 1933. A retailer of intoxicating liquor may not use or have
property rented for the manufacture or wholesaling of intoxicating liquor.

(b) Except as provided in subdivision 9, no brewer as defined in subdivision 9 or importer
may have any interest, in whole or in part, directly or indirectly, in the license, business,
assets, or corporate stock of a licensed malt liquor wholesaler.

Sec. 7.

Minnesota Statutes 2020, section 340A.301, subdivision 12, is amended to read:


Subd. 12.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end; label.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt
liquor
deleted text endnew text begin alcoholic beveragenew text end, as defined under section 340A.101, subdivision 19, may be sold
with a label that states "MAX deleted text begin3.2%deleted text endnew text begin 5.5%new text end ALC/WT" or equivalent, on the side of the can
or bottle, and does not require a similar disclosure on the can top or bottom. The
commissioner shall establish standards to implement this requirement.

Sec. 8.

Minnesota Statutes 2020, section 340A.308, is amended to read:


340A.308 PROHIBITED TRANSACTIONS.

(a) Except as otherwise provided in section 340A.301, no brewer or malt liquor wholesaler
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 or malt liquor wholesaler if furnishing of these items by the brewer or
wholesaler 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 or wholesaler 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 deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end at retail;

(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 only; or

(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 10.

Sec. 9.

Minnesota Statutes 2020, section 340A.310, is amended to read:


340A.310 SALES BY WHOLESALERS.

A wholesaler may sell intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic
beverages
new text end only to municipal liquor stores, government instrumentalities, or holders of
alcoholic beverage licenses issued under this chapter.

Sec. 10.

Minnesota Statutes 2020, section 340A.311, is amended to read:


340A.311 BRAND REGISTRATION.

(a) A brand of intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end may
not be manufactured, imported into, or sold in the state unless the brand label has been
registered with and approved by the commissioner. A brand registration must be renewed
every three years in order to remain in effect. The fee for an initial brand registration is $40.
The fee for brand registration renewal is $30. The brand label of a brand of intoxicating
liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end for which the brand registration has
expired, is conclusively deemed abandoned by the manufacturer or importer.

(b) In this section "brand" and "brand label" include trademarks and designs used in
connection with labels.

(c) The label of any brand of wine or intoxicating or nonintoxicating malt beverage may
be registered only by the brand owner or authorized agent. No such brand may be imported
into the state for sale without the consent of the brand owner or authorized agent. This
section does not limit the provisions of section 340A.307.

(d) The commissioner shall refuse to register a malt liquor brand label, and shall revoke
the registration of a malt liquor brand label already registered, if the brand label states or
implies in a false or misleading manner a connection with an actual living or dead American
Indian leader. This paragraph does not apply to a brand label registered for the first time in
Minnesota before January 1, 1992.

Sec. 11.

Minnesota Statutes 2020, section 340A.402, subdivision 1, is amended to read:


Subdivision 1.

Disqualifiers.

No retail license may be issued to:

(1) a person under 21 years of age;

(2) a person who has had an intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic
beverage
new text end license revoked within five years of the license application, or to any person who
at the time of the violation owns any interest, whether as a holder of more than five percent
of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or
in the business conducted thereon, or to a corporation, partnership, association, enterprise,
business, or firm in which any such person is in any manner interested;

(3) a person not of good moral character and repute; or

(4) a person who has a direct or indirect interest in a manufacturer, brewer, or wholesaler.

In addition, no new retail license may be issued to, and the governing body of a
municipality may refuse to renew the license of, a person who, within five years of the
license application, has been convicted of a felony or a willful violation of a federal or state
law or local ordinance governing the manufacture, sale, distribution, or possession for sale
or distribution of an alcoholic beverage. The Alcohol and Gambling Enforcement Division
or licensing authority may require that fingerprints be taken and forwarded to the Federal
Bureau of Investigation for purposes of a criminal history check.

Sec. 12.

Minnesota Statutes 2020, section 340A.403, is amended to read:


340A.403 deleted text begin3.2deleted text endnew text begin 5.5new text end PERCENT deleted text beginMALT LIQUORdeleted text endnew text begin ALCOHOLIC BEVERAGEnew text end
LICENSES.

Subdivision 1.

Issuance by county or city.

The governing body of a city or county may
issue off-sale or on-sale licenses for the sale of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end
within their respective jurisdictions.

Subd. 2.

Temporary licenses.

(a) A club or charitable, religious, or nonprofit organization
may be issued a temporary on-sale license for the sale of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic
beverages
new text end.

(b) The temporary license may authorize the sale of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic
beverages
new text end in any school or school buildings.

(c) Temporary licenses are subject to the terms set by the issuing county or city.

Subd. 3.

Exemption.

(a) Any person licensed to sell intoxicating liquor at on-sale shall
not be required to obtain an on-sale license under this section, and may sell nonintoxicating
malt beverages at on-sale without further license.

(b) Any person licensed to sell intoxicating liquor at off-sale shall not be required to
obtain an off-sale license under this section, and may sell nonintoxicating malt beverages
at off-sale without further license.

Subd. 4.

Notice to commissioner.

Within ten days of the issuance of a license under
this section, a municipality shall inform the commissioner, on a form the commissioner
prescribes, of the licensee's name and address and trade name, the effective date and
expiration date of the license, and any other information on the license the commissioner
requires.

Sec. 13.

Minnesota Statutes 2020, 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, 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 deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end 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.

(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.

(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the
American Swedish Institute or to its concessionaire or operator 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.

(n) Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue one or more on-sale intoxicating liquor licenses to the Minneapolis
Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity holding a concessions
or catering contract with the Minneapolis Institute of Arts for use on the premises of the
Minneapolis Institute of Arts. The licenses authorized by this subdivision may be issued
for space that is not compact and contiguous, provided that all such space is included in the
description of the licensed premises on the approved license application. The licenses
authorize sales on all days of the week.

(o) The city of Minneapolis may issue an on-sale intoxicating liquor license to Norway
House or to its concessionaire or operator for use on the premises owned by Norway House
at 913 East Franklin Avenue, notwithstanding limitations of law, or local ordinances, or
charter provision relating to zoning or school or church distances.

(p) Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue one or more on-sale intoxicating liquor licenses to any entity holding
a concessions or catering contract with the Minneapolis Park and Recreation Board for use
on the premises of the Downtown Commons Park, the Minneapolis Sculpture Garden, or
at Boom Island Park. The licenses authorized by this subdivision may be used for space
specified within the park property, provided all such space is included in the description of
the licensed premises on the approved license application. The licenses authorize sales on
the dates on the approved license application.

Sec. 14.

Minnesota Statutes 2020, 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 24 percent alcohol by volume
for consumption. 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 deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquorsdeleted text endnew text begin alcoholic beveragesnew text end at on-sale pursuant to section 340A.411, 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.

(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.

Sec. 15.

Minnesota Statutes 2020, section 340A.4055, is amended to read:


340A.4055 LICENSES IN INDIAN COUNTRY.

Notwithstanding any law to the contrary, on-sale or off-sale licenses for the sale of
intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end issued by the governing
body of an Indian tribe in accordance with United States Code, title 18, section 1161, to an
Indian tribal member or Indian tribal entity for an establishment located within Indian
country as defined under United States Code, title 18, section 1154, are valid. When a license
is issued under this section, the issuing authority shall notify the commissioner of public
safety of the name and address of the licensee. Upon receipt of the notice, the commissioner
shall issue a retailer's identification card to the licensee to permit the licensee to purchase
distilled spirits, wine, or malt beverages. An establishment issued a license under this section
is not required to obtain a license from any municipality, county, or town.

Sec. 16.

Minnesota Statutes 2020, section 340A.407, is amended to read:


340A.407 COMMON CARRIERS.

The commissioner may issue an on-sale license to a person certificated by either the
state or the United States of America, or an agency thereof, as a common carrier engaged
in the business of transporting persons for hire in interstate or intrastate commerce to sell
intoxicating or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end in a place where meals are
sold. A license issued under this subdivision only authorizes the sale of intoxicating or deleted text begin3.2deleted text endnew text begin
5.5
new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end to a bona fide passenger who is actually being
transported in interstate or intrastate commerce.

Sec. 17.

Minnesota Statutes 2020, section 340A.408, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end.

(a) The license fee for
an on-sale and off-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end license is the fee set
by the county or city issuing the license.

(b) One-half of the license fee received by a county for a retail license to sell deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end within any town in the county shall be paid to the
town board where the business is located.

Sec. 18.

Minnesota Statutes 2020, section 340A.408, subdivision 4, is amended to read:


Subd. 4.

Lake Superior, St. Croix River, and Mississippi River tour boats; common
carriers.

(a) The annual license fee for licensing of Lake Superior, St. Croix River, and
Mississippi River tour boats under section 340A.404, subdivision 8, shall be $1,500. The
commissioner shall transmit one-half of this fee to the governing body of the city that is the
home port of the tour boat or to the county in which the home port is located if the home
port is outside a city.

(b) The annual license fee for common carriers licensed under section 340A.407 is:

(1) $50 for deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end, and $20 for a duplicate
license; and

(2) $250 for intoxicating liquor, and $30 for a duplicate license.

Sec. 19.

Minnesota Statutes 2020, section 340A.408, subdivision 5, is amended to read:


Subd. 5.

Refunds.

A pro rata share of an annual license fee for a retail license to sell
intoxicating or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end, either on-sale or off-sale,
may be refunded to the licensee or to the licensee's estate if:

(1) the business ceases to operate because of destruction or damage;

(2) the licensee dies;

(3) the business ceases to be lawful for a reason other than a license revocation; or

(4) the licensee ceases to carry on the licensed business under the license.

Sec. 20.

Minnesota Statutes 2020, 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 deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end licensees with sales
of less than deleted text begin$25,000deleted text endnew text begin $50,000new text end of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end for the
preceding year;

(2) they are off-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percentdeleted text begin malt liquordeleted text endnew text begin alcoholic beveragenew text end licensees with sales
of less than deleted text begin$50,000deleted text endnew text begin $100,000new text end of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end 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;

(4) they are holders of temporary wine licenses issued under law; or

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

Sec. 21.

Minnesota Statutes 2020, section 340A.410, subdivision 8, is amended to read:


Subd. 8.

Copy of summons.

Every application for the issuance or renewal of intoxicating
or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end licenses must include a copy of each
summons received by the applicant under section 340A.802 during the preceding year.

Sec. 22.

Minnesota Statutes 2020, section 340A.411, is amended to read:


340A.411 LICENSE RESTRICTIONS; deleted text begin3.2deleted text endnew text begin 5.5new text end PERCENT deleted text beginMALT LIQUORdeleted text endnew text begin
ALCOHOLIC BEVERAGE
new text end LICENSES.

Subdivision 1.

On-sale licenses.

On-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end
licenses may only be issued to drugstores, restaurants, hotels, clubs, bowling centers, golf
courses, and establishments used exclusively for the sale of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverages
new text end with the incidental sale of tobacco and soft drinks.

Subd. 2.

License duration.

All retail deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end
licenses must be issued for one year, except that for the purpose of coordinating the time
of expiration of licenses in general, licenses may be issued for a shorter time, in which case
a pro rata license fee must be charged.

Subd. 3.

Terminology.

A political subdivision may not issue a deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt
liquor
deleted text endnew text begin alcoholic beveragenew text end license that includes the term "nonintoxicating liquor."

Sec. 23.

Minnesota Statutes 2020, section 340A.412, subdivision 6, is amended to read:


Subd. 6.

Off-sale licenses where deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end is
sold.

An off-sale intoxicating liquor license may not be issued to a place where deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end is sold for consumption on the premises. This
subdivision does not apply to those places where both an on-sale and off-sale license or a
combination license have been issued under section 340A.406.

Sec. 24.

Minnesota Statutes 2020, section 340A.414, subdivision 2, is amended to read:


Subd. 2.

Eligibility for permit.

(a) The commissioner may issue a permit under this
section only to:

(1) an applicant who has not, within five years prior to the application, been convicted
of a felony or of violating any provision of this chapter or rule adopted under this chapter;

(2) a restaurant;

(3) a hotel;

(4) an establishment licensed for the sale of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic
beverages
new text end;

(5) a resort as defined in section 157.15;

(6) a club as defined in section 340A.101, subdivision 7, or an unincorporated club
otherwise meeting that definition; and

(7) a bed and breakfast facility as defined in section 340A.4011, subdivision 1.

(b) The commissioner may not issue a permit to a club holding an on-sale intoxicating
liquor license.

Sec. 25.

Minnesota Statutes 2020, section 340A.503, subdivision 1, is amended to read:


Subdivision 1.

Consumption.

(a) It is unlawful for any:

(1) retail intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end licensee,
municipal liquor store, or bottle club permit holder under section 340A.414, to permit any
person under the age of 21 years to drink alcoholic beverages on the licensed premises or
within the municipal liquor store; or

(2) person under the age of 21 years to consume any alcoholic beverages. If proven by
a preponderance of the evidence, it is an affirmative defense to a violation of this clause
that the defendant consumed the alcoholic beverage in the household of the defendant's
parent or guardian and with the consent of the parent or guardian.

(b) An offense under paragraph (a), clause (2), may be prosecuted either in the jurisdiction
where consumption occurs or the jurisdiction where evidence of consumption is observed.

(c) As used in this subdivision, "consume" includes the ingestion of an alcoholic beverage
and the physical condition of having ingested an alcoholic beverage.

Sec. 26.

Minnesota Statutes 2020, section 340A.504, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end.

No sale of deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end may be made between 2:00 a.m. and 8:00 a.m. on
the days of Monday through Saturday, nor between 2:00 a.m. and 10:00 a.m. on Sunday.

Sec. 27.

Minnesota Statutes 2020, section 340A.504, subdivision 6, is amended to read:


Subd. 6.

Municipalities may limit hours.

A municipality may further limit the days or
hours of on and off sales of alcoholic beverages, provided that further restricted on-sale
hours for intoxicating liquor must apply equally to on-sale hours of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt
liquor
deleted text endnew text begin alcoholic beveragesnew text end. A city may not permit the sale of alcoholic beverages during
hours when the sale is prohibited by this section.

Sec. 28.

Minnesota Statutes 2020, section 340A.504, subdivision 7, is amended to read:


Subd. 7.

Sales after 1:00 a.m.; permit fee.

(a) No licensee may sell intoxicating liquor
or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end on-sale between the hours of 1:00 a.m.
and 2:00 a.m. unless the licensee has obtained a permit from the commissioner. Application
for the permit must be on a form the commissioner prescribes. Permits are effective for one
year from date of issuance. For retailers of intoxicating liquor, the fee for the permit is based
on the licensee's gross receipts from on-sales of alcoholic beverages in the 12 months prior
to the month in which the permit is issued, and is at the following rates:

(1) up to $100,000 in gross receipts, $300;

(2) over $100,000 but not over $500,000 in gross receipts, $750; and

(3) over $500,000 in gross receipts, $1,000.

For a licensed retailer of intoxicating liquor who did not sell intoxicating liquor at on-sale
for a full 12 months prior to the month in which the permit is issued, the fee is $200. For a
retailer of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end, the fee is $200.

(b) The commissioner shall deposit all permit fees received under this subdivision in
the alcohol enforcement account in the special revenue fund.

(c) Notwithstanding any law to the contrary, the commissioner of revenue may furnish
to the commissioner the information necessary to administer and enforce this subdivision.

Sec. 29.

Minnesota Statutes 2020, section 340A.508, subdivision 2, is amended to read:


Subd. 2.

Tampering or diluting contents.

It is unlawful for a person holding a retail
intoxicating liquor license or a deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end license, directly
or indirectly through an agent, employee, or other person, to dilute or in any manner tamper
with the contents of an original package or bottle so as to change its composition or alcoholic
content while the contents are in the original package or bottle. Possession on the premises
by a licensee of alcoholic beverages in the original package or bottle, differing in composition
or alcoholic content from when it was received from the manufacturer or wholesaler from
whom it was purchased, is prima facie evidence that the contents of the original package
or bottle has been diluted, changed, or tampered with in violation of this section.

Sec. 30. new text begin3.2 PERCENT MALT LIQUOR LICENSES.
new text end

new text begin Notwithstanding any law to the contrary, by the effective date of this section, the license
issuing authority shall issue to a person that is licensed, as of the effective date of this section,
under Minnesota Statutes, section 340A.403, subdivision 1, for the off-sale or on-sale of
3.2 percent malt liquor, a license for the off-sale or on-sale of alcoholic beverages containing
not more than 5.5 percent of alcohol by weight. All other provisions of Minnesota Statutes,
chapter 340A, not inconsistent with this section, apply to the issuance of a license under
this section.
new text end

Sec. 31. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective ........
new text end

ARTICLE 2

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2020, section 28A.16, is amended to read:


28A.16 PERSONS SELLING LIQUOR.

(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end "on-sale" as provided in section 340A.403, or to
persons licensed to sell intoxicating liquors "on-sale" or "off-sale" as provided in sections
340A.404 to 340A.407, provided that these persons sell only ice manufactured and packaged
by another, or bottled or canned soft drinks and prepacked candy at retail.

(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner
must exclude all gross sales of off-sale alcoholic beverages when determining the applicable
license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive
liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

Sec. 2.

Minnesota Statutes 2020, section 169A.35, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section:

(1) "alcoholic beverage" has the meaning given it in section 340A.101, subdivision 2;

(2) "distilled spirits" has the meaning given it in section 340A.101, subdivision 9;

(3) "motor vehicle" does not include motorboats in operation, or off-road recreational
vehicles except when being operated on a roadway or shoulder of a roadway that is not part
of a grant-in-aid trail or trail designated for that vehicle by the commissioner of natural
resources;

(4) "possession" means either that the person had actual possession of the bottle or
receptacle or that the person consciously exercised dominion and control over the bottle or
receptacle; and

(5) "deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end" has the meaning given it in section
340A.101, subdivision 19.

Sec. 3.

Minnesota Statutes 2020, section 169A.35, subdivision 1a, is amended to read:


Subd. 1a.

Alcoholic beverage, distilled spirit, deleted text begin3.2deleted text endnew text begin 5.5new text end deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end;
determination.

For purposes of this section only, when determining whether a beverage is
an alcoholic beverage, a distilled spirit, or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end:

(1) "alcohol by volume" means milliliters of alcohol per 100 milliliters of beverage; and

(2) "alcohol by weight" means grams of alcohol per 100 grams of beverage.

Sec. 4.

Minnesota Statutes 2020, section 169A.35, subdivision 2, is amended to read:


Subd. 2.

Drinking and consumption; crime described.

It is a crime for a person to
drink or consume an alcoholic beverage, distilled spirit, or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverage
new text end in a motor vehicle when the vehicle is upon a street or highway.

Sec. 5.

Minnesota Statutes 2020, section 169A.35, subdivision 3, is amended to read:


Subd. 3.

Possession; crime described.

It is a crime for a person to have in possession,
while in a private motor vehicle upon a street or highway, any bottle or receptacle containing
an alcoholic beverage, distilled spirit, or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end that
has been opened, or the seal broken, or the contents of which have been partially removed.

Sec. 6.

Minnesota Statutes 2020, section 169A.35, subdivision 4, is amended to read:


Subd. 4.

Liability of nonpresent owner; crime described.

It is a crime for the owner
of any private motor vehicle or the driver, if the owner is not present in the motor vehicle,
to keep or allow to be kept in a motor vehicle when the vehicle is upon a street or highway
any bottle or receptacle containing an alcoholic beverage, distilled spirit, or deleted text begin3.2deleted text endnew text begin 5.5new text end percent
deleted text begin malt liquordeleted text endnew text begin alcoholic beveragenew text end that has been opened, or the seal broken, or the contents of
which have been partially removed.

Sec. 7.

Minnesota Statutes 2020, section 181A.115, is amended to read:


181A.115 PROHIBITED EMPLOYMENT RELATING TO PRESENCE OF
LIQUOR.

No minor under the age of 18 shall be employed in any rooms constituting the place in
which intoxicating liquors or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquorsdeleted text endnew text begin alcoholic beveragesnew text end are served or
consumed or in any tasks involving the serving, dispensing, or handling of such liquors that
are consumed on the premises except that:

(1) minors who have reached the age of 16 may be employed to perform busing,
dishwashing, or hosting services in those rooms or areas of a restaurant, hotel, motel, or
resort where the presence of intoxicating liquor is incidental to food service or preparation;

(2) minors who have reached the age of 16 may be employed to perform busing,
dishwashing, or hosting services or to provide waiter or waitress service in rooms or areas
where the presence of deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end is incidental to food
service or preparation;

(3) minors who have reached the age of 16 may be employed to provide musical
entertainment in those rooms or areas where the presence of intoxicating liquor and deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end is incidental to food service or preparation; and

(4) minors are not prevented from working at tasks which are not prohibited by law in
establishments where liquor is sold, served, dispensed, or handled in those rooms or areas
where no liquor is consumed or served.

Sec. 8.

Minnesota Statutes 2020, section 182.651, subdivision 18, is amended to read:


Subd. 18.

Hazardous substance exclusions.

(a) The following substances or mixtures
are not hazardous substances if they are:

(1) products intended for personal consumption by employees in the workplace;

(2) consumer products packaged for distribution to, and used by, the general public,
including any product used by an employer or the employer's employees in the same form,
concentration, and manner as it is sold to consumers, and to the employer's knowledge,
employee exposure is not significantly greater than the consumer exposure occurring during
principal consumer use of the product;

(3) any article, including but not limited to, an item of equipment or hardware, which
contains a hazardous substance, if the substance is present in a solid form which does not
create a health hazard as a result of being handled by an employee;

(4) any hazardous substance that is bound and not released under normal conditions of
work or in a reasonably foreseeable occurrence resulting from workplace operations;

(5) products sold or used in retail food sale establishments and all other retail trade
establishments, exclusive of processing and repair work areas;

(6) "intoxicating liquor" as defined in section 340A.101, subdivision 14, or "deleted text begin3.2deleted text endnew text begin 5.5new text end
percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end" as defined in section 340A.101, subdivision 19;

(7) "food" as defined in the Federal Food, Drug, and Cosmetic Act, United States Code,
title 27, section 321, et seq.; or

(8) any waste material regulated pursuant to the federal Resource Conservation and
Recovery Act, Public Law 94-580, but only with respect to any employer in a business
which provides a service of collection, processing, or disposal of such waste.

(b) The commissioner may, by inclusion in the standards adopted pursuant to section
182.655, determine whether any of the following may be excluded from the definitions of
hazardous substance or harmful physical agent:

(1) waste products labeled pursuant to the Resource Conservation and Recovery Act;

(2) any substance received by an employee in a sealed package and subsequently sold
or transferred in that package, if the seal remains intact while the substance is in the
employer's workplace; or

(3) any substance, mixture, or product if present in a physical state, volume, or
concentration for which there is no valid and substantial evidence that a significant risk to
human health may occur from exposure.

Sec. 9.

Minnesota Statutes 2020, section 204C.06, subdivision 7, is amended to read:


Subd. 7.

Use of intoxicating liquor; prohibition; penalty.

During the time an election
is being held it is a misdemeanor to bring intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverages
new text end into a polling place, to drink intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt
liquor
deleted text endnew text begin alcoholic beveragesnew text end in a polling place, or to be intoxicated in a polling place. The
election judges shall not permit an obviously intoxicated individual to vote or remain in the
polling place for any purpose.

Sec. 10.

Minnesota Statutes 2020, section 270C.725, subdivision 3, is amended to read:


Subd. 3.

Penalty.

A wholesaler, manufacturer, or brewer of intoxicating liquor or deleted text begin3.2deleted text endnew text begin
5.5
new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end who violates subdivision 2 is subject to the
penalties provided in section 340A.304.

Sec. 11.

Minnesota Statutes 2020, section 295.75, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Commissioner" means the commissioner of revenue.

(c) "Gross receipts" means the total amount received, in money or by barter or exchange,
for all liquor sales at retail as measured by the sales price, but does not include any taxes
imposed directly on the consumer that are separately stated on the invoice, bill of sale, or
similar document given to the purchaser.

(d) "Liquor" means:

(1) intoxicating liquor, as defined in section 340A.101, subdivision 14;

(2) beverage containing intoxicating liquor; and

(3) deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end, as defined in section 340A.101,
subdivision 19
, when sold at an on-sale or off-sale municipal liquor store or other
establishment licensed to sell any type of intoxicating liquor.

(e) "Liquor retailer" means a retailer that sells liquor.

(f) "Retail sale" has the meaning given in section 297A.61, subdivision 4.

Sec. 12.

Minnesota Statutes 2020, section 297G.01, subdivision 10, is amended to read:


Subd. 10.

Intoxicating liquor.

"Intoxicating liquor" is ethyl alcohol, distilled spirits,
fermented, spirituous, vinous, and fermented malt beverages containing more than deleted text begin3.2deleted text endnew text begin 5.5new text end
percent of alcohol by weight.

Sec. 13.

Minnesota Statutes 2020, section 297G.01, subdivision 18, is amended to read:


Subd. 18.

deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end.

"deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverage
new text end" deleted text beginis a fermented malt beverage containing not less than one-half of one
percent alcohol by volume nor more than 3.2 percent alcohol by weight
deleted text endnew text begin has the meaning
given in section 340A.101, subdivision 19
new text end.

Sec. 14.

Minnesota Statutes 2020, section 297G.01, subdivision 21, is amended to read:


Subd. 21.

Low-alcohol dairy cocktail.

"Low-alcohol dairy cocktail" means a premixed
cocktail, or any other product except liqueur-filled candy, that:

(1) consists primarily of milk products;

(2) contains distilled spirits;

(3) is drinkable as a beverage or is promoted as an alcoholic product; and

(4) contains less than deleted text begin3.2deleted text endnew text begin 5.5new text end percent alcohol by volume.

Sec. 15.

Minnesota Statutes 2020, section 297G.04, subdivision 1, is amended to read:


Subdivision 1.

Tax imposed.

The following excise tax is imposed on all fermented malt
beverages that are imported, directly or indirectly sold, or possessed in this state:

(1) on fermented malt beverages containing not more than deleted text begin3.2deleted text endnew text begin 5.5new text end percent alcohol by
weight, $2.40 per 31-gallon barrel; and

(2) on fermented malt beverages containing more than deleted text begin3.2deleted text endnew text begin 5.5new text end percent alcohol by weight,
$4.60 per 31-gallon barrel.

For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.

Sec. 16.

Minnesota Statutes 2020, section 349.12, subdivision 3c, is amended to read:


Subd. 3c.

Bar bingo.

"Bar bingo" is a bingo occasion conducted at a permitted premises
in an area where on-sale intoxicating liquor or on-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmaltdeleted text endnew text begin alcoholicnew text end
beverages are sold and where a licensed organization conducts another form of lawful
gambling and consents to the conduct of bar bingo on the premises. Bar bingo does not
include bingo games linked to other permitted premises.

Sec. 17.

Minnesota Statutes 2020, section 349.17, subdivision 7, is amended to read:


Subd. 7.

Bar bingo.

An organization may conduct bar bingo subject to the following
restrictions:

(1) the bingo is conducted at a site the organization owns or leases and which has a
license for the on-sale of intoxicating beverages on the premises under chapter 340A or
where on-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmaltdeleted text endnew text begin alcoholicnew text end beverages are sold; and

(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
sheets purchased from a licensed distributor or licensed linked bingo game provider.

Sec. 18.

Minnesota Statutes 2020, section 349.17, subdivision 9, is amended to read:


Subd. 9.

Linked bingo games played exclusively on electronic bingo devices.

In
addition to the requirements of subdivision 8, the following requirements and restrictions
apply when linked bingo games are played exclusively on electronic bingo devices.

(a) The permitted premises must be:

(1) a premises licensed for the on-sale of intoxicating liquor or on-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent
deleted text begin maltdeleted text endnew text begin alcoholicnew text end beverages; or

(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100.

(b) The number of electronic bingo devices is limited to:

(1) no more than six devices in play for permitted premises with 200 seats or less;

(2) no more than 12 devices in play for permitted premises with 201 seats or more; and

(3) no more than 50 devices in play for permitted premises where bingo is the primary
business.

Seating capacity is determined as specified under the local fire code.

(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
participating organizations, must provide to the board a bingo program in a format prescribed
by the board.

(d) Before participating in the play of a linked bingo game, a player must present a valid
picture identification card that includes the player's date of birth. Except for prize receipts
required by section 349.19, subdivision 10, an organization is not required to register or
retain any information contained on the player's picture identification card.

(e) A licensed organization must require each person cashing out an electronic linked
bingo device with $600 or more in credits to present identification in the form of a driver's
license, Minnesota identification card, or other identification the board deems sufficient to
allow the identification and tracking of the winner. The organization must retain the winner's
identification in the form of a prize receipt for 3-1/2 years. A prize receipt for electronic
linked bingo must include the same information as is required in board rules for a paper
pull-tab game prize receipt.

(f) Except for prize receipts required by paragraph (e), an organization is not required
to register or retain any information contained on the player's picture identification card.

(g) An organization may remove from play a device that a player has not maintained in
an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.

Sec. 19.

Minnesota Statutes 2020, section 349.1721, subdivision 3, is amended to read:


Subd. 3.

Pull-tab dispensing device location restrictions and requirements.

The
following pertain to pull-tab dispensing devices as defined under section 349.12, subdivision
32a.

(a) The use of any pull-tab dispensing device must be at a permitted premises which is:

(1) a licensed premises for on-sale of intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmaltdeleted text endnew text begin alcoholicnew text end
beverages;

(2) a premises where bingo is conducted as the primary business; or

(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug stores
and general food stores licensed under section 340A.405, subdivision 1.

(b) The number of pull-tab dispensing devices located at any permitted premises is
limited to three.

Sec. 20.

Minnesota Statutes 2020, section 349.1721, subdivision 4, is amended to read:


Subd. 4.

Electronic pull-tab device requirements and restrictions.

The following
pertain to the use of electronic pull-tab devices as defined under section 349.12, subdivision
12b.

(a) The use of any electronic pull-tab device may only be at a permitted premises that
is:

(1) a premises licensed for the on-sale of intoxicating liquor or on-sale deleted text begin3.2deleted text endnew text begin 5.5new text end percent
deleted text begin maltdeleted text endnew text begin alcoholicnew text end beverages; or

(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100; and

(3) where a licensed organization sells paper pull-tabs and consents to the conduct of
electronic pull-tab devices on the premises.

(b) The number of electronic pull-tab devices is limited to:

(1) no more than six devices in play at any permitted premises with 200 seats or less;

(2) no more than 12 devices in play at any permitted premises with 201 seats or more;
and

(3) no more than 50 devices in play at any permitted premises where the primary business
is bingo.

Seating capacity is determined as specified under the local fire code.

(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.

(d) All electronic pull-tab games must be sold and played on the permitted premises and
may not be linked to other permitted premises.

(e) Electronic pull-tab games may not be transferred electronically or otherwise to any
other location by the licensed organization.

(f) Electronic pull-tab games may be commingled if the games are from the same family
of games and manufacturer and contain the same game name, form number, type of game,
ticket count, prize amounts, and prize denominations. Each commingled game must have
a unique serial number.

(g) An organization may remove from play a device that a player has not maintained in
an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.

(h) Before participating in the play of an electronic pull-tab game, a player must present
a valid picture identification card that includes the player's date of birth. Except for prize
receipts required by section 349.19, subdivision 10, an organization is not required to register
or retain any information contained on the player's picture identification card.

(i) A licensed organization must require each person cashing out an electronic pull-tab
device with $600 or more in credits to present identification in the form of a driver's license,
Minnesota identification card, or other identification the board deems sufficient to allow
the identification and tracking of the winner. The organization must retain the winner's
identification in the form of a prize receipt for 3-1/2 years. A prize receipt for electronic
pull-tabs must include the same information as is required in board rules for a paper pull-tab
game prize receipt.

(j) Except for prize receipts required by paragraph (i), an organization is not required to
register or retain any information contained on the player's picture identification card.

(k) Each player is limited to the use of one device at a time.

Sec. 21.

Minnesota Statutes 2020, section 609.33, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purpose of this section, "disorderly house" means a
building, dwelling, place, establishment, or premises in which actions or conduct habitually
occur in violation of laws relating to:

(1) the sale of intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragenew text end;

(2) gambling;

(3) prostitution as defined in section 609.321, subdivision 9, or acts relating to
prostitution; or

(4) the sale or possession of controlled substances as defined in section 152.01,
subdivision 4
.

Sec. 22.

Minnesota Statutes 2020, section 609.33, subdivision 4, is amended to read:


Subd. 4.

Evidence.

Evidence of unlawful sales of intoxicating liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent
deleted text begin malt liquordeleted text endnew text begin alcoholic beveragesnew text end, of unlawful possession or sale of controlled substances, of
prostitution or acts relating to prostitution, or of gambling or acts relating to gambling, is
prima facie evidence of the existence of a disorderly house. Evidence of sales of intoxicating
liquor or deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end between the hours of 1:00 a.m.
and 8:00 a.m., while a person is within a disorderly house, is prima facie evidence that the
person knew it to be a disorderly house.

Sec. 23.

Minnesota Statutes 2020, section 624.701, subdivision 1a, is amended to read:


Subd. 1a.

Exceptions.

Subdivision 1 does not apply to the following:

(1) experiments in laboratories;

(2) a person who has been issued a temporary license to sell deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin
alcoholic beverages
new text end under section 340A.403, subdivision 2, or intoxicating liquor under
section 340A.404, subdivision 10; or

(3) a person possessing deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end or intoxicating
liquor as a result of a purchase from a person or organization holding a temporary license
under section 340A.403, subdivision 2, or 340A.404, subdivision 10.

Sec. 24.

Minnesota Statutes 2020, section 624.731, subdivision 5, is amended to read:


Subd. 5.

Prohibited sale.

Except as permitted by subdivision 6, no person shall knowingly
furnish or sell tear gas or a tear gas compound to another person. No person shall knowingly
furnish or sell an authorized tear gas compound or an electronic incapacitation device to a
person prohibited from possessing it by subdivision 3. No person shall knowingly furnish
or sell an authorized tear gas compound or an electronic incapacitation device which fails
to meet the requirements of subdivision 2. No tear gas, tear gas compound, authorized tear
gas compound, or electronic incapacitation device shall be sold or furnished on premises
where deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquordeleted text endnew text begin alcoholic beveragesnew text end as defined in section 340A.101,
subdivision 19
, is sold on an on-sale basis or where intoxicating liquor as defined in section
340A.101, subdivision 13, is sold on an on-sale or off-sale basis. No person shall sell tear
gas, a tear gas compound, authorized tear gas compound, or electronic incapacitation device
in violation of local licensing requirements.

Sec. 25.

Minnesota Statutes 2020, section 624.731, subdivision 8, is amended to read:


Subd. 8.

Penalties.

(a) The following violations of this section shall be considered a
felony:

(1) The possession or use of tear gas, a tear gas compound, an authorized tear gas
compound, or an electronic incapacitation device by a person specified in subdivision 3,
paragraph (b).

(2) Knowingly selling or furnishing of tear gas, a tear gas compound, an authorized tear
gas compound, or an electronic incapacitation device to a person specified in subdivision
3, paragraph (b).

(3) The use of an electronic incapacitation device as prohibited in subdivision 4, paragraph
(a).

(4) The use of tear gas or a tear gas compound as prohibited in subdivision 4, paragraph
(d).

(b) The following violations of this section shall be considered a gross misdemeanor:
(1) the prohibited use of tear gas, a tear gas compound, or an authorized tear gas compound
as specified in subdivision 4, paragraph (a); (2) the use of an electronic incapacitation device
except as allowed by subdivision 2 or 6.

(c) The following violations of this section shall be considered a misdemeanor:

(1) The possession or use of tear gas, a tear gas compound, an authorized tear gas
compound, or an electronic incapacitation device which fails to meet the requirements of
subdivision 2 by any person except as allowed by subdivision 6.

(2) The possession or use of an authorized tear gas compound or an electronic
incapacitation device by a person specified in subdivision 3, paragraph (a) or (c).

(3) The use of tear gas, a tear gas compound, or an authorized tear gas compound except
as allowed by subdivision 2 or 6.

(4) Knowingly selling or furnishing an authorized tear gas compound or an electronic
incapacitation device to a person specified in subdivision 3, paragraph (a) or (c).

(5) Selling or furnishing of tear gas or a tear gas compound other than an authorized tear
gas compound to any person except as allowed by subdivision 6.

(6) Selling or furnishing of an authorized tear gas compound or an electronic
incapacitation device on premises where intoxicating liquor is sold on an on-sale or off-sale
basis or where deleted text begin3.2deleted text endnew text begin 5.5new text end percent deleted text beginmalt liquor isdeleted text endnew text begin alcoholic beverages arenew text end sold on an on-sale
basis.

(7) Selling an authorized tear gas compound or an electronic incapacitation device in
violation of local licensing requirements.

Sec. 26. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective .......
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