HF 3722

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/14/2022 04:55pm

A bill for an act
relating to liquor; modifying on-sale license provision; establishing a liquor
regulation advisory council; appropriating money for additional employees in the
Division of Alcohol and Gambling Enforcement; amending Minnesota Statutes
2020, section 340A.404, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 340A.

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

Section 1.

Minnesota Statutes 2020, section 340A.404, subdivision 1, is amended to read:

Subdivision 1.

Cities.

(a) A city may issue an on-sale intoxicating liquor license to the
following establishments located within its jurisdiction:

(1) hotels;

(2) restaurants;

(3) bowling centers;

(4) clubs or congressionally chartered veterans organizations with the approval of the
commissioner, provided that the organization has been in existence for at least three years
and liquor sales will only be to members and bona fide guests, except that a club may permit
the general public to participate in a wine tasting conducted at the club under section
340A.419;

(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the
Minnesota Sports Facilities Authority;

(6) sports facilities located on land owned by the Metropolitan Sports Commission; and

(7) exclusive liquor stores.

(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.

(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
an on-sale malt liquor license to a convention center within the city, notwithstanding any
law, local ordinance, or charter provision. A license issued under this paragraph authorizes
sales on all days of the week to persons attending events at the convention center. This
paragraph does not apply to convention centers located in the seven-county metropolitan
area.

(d) A deleted text begin city deleted text end new text begin municipality new text end may issue an on-sale wine license and an on-sale malt liquor
license to a person who is the owner of a summer collegiate league baseball team new text begin , or baseball
team competing in a league established by the Minnesota Baseball Association new text end , or to a
person holding a concessions or management contract with the owner, for beverage sales
at a ballpark or stadium located within the deleted text begin city deleted text end new text begin municipality new text end for the purposes of summer
collegiate league baseball games new text begin , town ball games, new text end and any other events at the ballpark or
stadium, notwithstanding any law, local ordinance, or charter provision. A license issued
under this paragraph authorizes sales on all days of the week to persons attending baseball
games and any other events at the ballpark or stadium.

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.

new text begin [340A.915] LIQUOR REGULATION ADVISORY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; composition. new text end

new text begin (a) There is created a permanent Liquor
Regulation Advisory Council. This council does not expire unless the council no longer
fulfills the purpose for which the council was established, the council has not met in the
last 18 months, or the council does not comply with the registration requirements of section
15.0599, subdivision 3. The council shall consist of nine voting members, to be appointed
by the governor as follows:
new text end

new text begin (1) three members must represent retailers, as follows:
new text end

new text begin (i) one member must represent or be employed by a municipal liquor store established
under section 340A.601;
new text end

new text begin (ii) one member must represent or be employed by an exclusive liquor store; and
new text end

new text begin (iii) one member must represent or be employed by a restaurant that has been issued an
on-sale intoxicating liquor license under section 340A.404, subdivision 1, paragraph (a),
clause (2), or subdivision 6;
new text end

new text begin (2) three members must represent wholesalers, as follows:
new text end

new text begin (i) one member must be a member of an organized labor organization representing the
employees of a wholesaler;
new text end

new text begin (ii) one member must represent or be employed by a wholesaler of distilled spirits; and
new text end

new text begin (iii) one member must represent or be employed by a malt liquor wholesaler other than
a wholesaler described in section 340A.301, subdivision 9, paragraph (g); and
new text end

new text begin (3) three members must represent manufacturers, as follows:
new text end

new text begin (i) one member must be the holder of a brewer's license under section 340A.301,
subdivision 6, paragraph (c), (i), or (j), that brews no more than 20,000 barrels of its own
brands of malt liquor annually;
new text end

new text begin (ii) one member must be the holder of a microdistillery license under section 340A.22;
and
new text end

new text begin (iii) one member must represent or be employed by a licensed manufacturer other than
a manufacturer described in item (i) or (ii).
new text end

new text begin (b) Each council member shall appoint an alternate. Alternates shall serve in the absence
of the member they replace.
new text end

new text begin (c) The appointed voting members shall serve for terms of five years and may be
reappointed.
new text end

new text begin (d) The speaker of the house and minority leader of the house of representatives shall
each appoint a caucus member as a liaison to the council. The majority and minority leaders
of the senate shall each appoint a caucus member to serve as a liaison to the council.
new text end

new text begin (e) The compensation and removal of members shall be as provided in section 15.059.
new text end

new text begin (f) The governor must appoint a member of the council to serve as chair. The chair is
the presiding officer at all meetings of the council.
new text end

new text begin Subd. 2. new text end

new text begin Duties; recommendations. new text end

new text begin The council must submit its recommendations with
respect to amendments to this chapter having a statewide impact by February 1 of each year
to the committees of the legislature with jurisdiction over liquor regulation and shall report
its views upon any pending bill relating to this chapter to the proper legislative committee.
A recommendation may not be made by the council unless it is supported by a majority of
the council members, provided that at least one member from each group described in
subdivision 1, paragraph (a), clauses (1) to (3), supports the recommendation. At the request
of the chairs of the senate or house of representatives committees that hear liquor regulation
matters, the commissioner or the commissioner's designee must schedule a meeting of the
council with the members of the committees to discuss matters of legislative concern arising
under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Meetings; voting. new text end

new text begin (a) The council must meet as frequently as necessary to
carry out its duties and responsibilities. The council may also conduct public hearings
throughout the state as may be necessary to give interested persons an opportunity to
comment and make suggestions on the operation of the state's regulatory system for alcoholic
beverages.
new text end

new text begin (b) The meetings of the council are subject to the state's Open Meeting Law, chapter
13D, except that each group described in subdivision 1, paragraph (a), clauses (1) to (3),
may meet in separate closed caucuses for the purpose of deliberating on matters before the
council. All votes of the council must be public and recorded.
new text end

new text begin Subd. 4. new text end

new text begin Executive director. new text end

new text begin (a) The commissioner or the commissioner's designee
must appoint an executive director of the council.
new text end

new text begin (b) The executive director shall provide administrative support and information to the
council in order to allow it to monitor all elements of Minnesota's regulatory system for
alcoholic beverages.
new text end

new text begin Subd. 5. new text end

new text begin Administrative support. new text end

new text begin The commissioner must supply necessary office
space, supplies, and staff support to assist the council and its executive director in their
duties.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after June 30, 2022.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $250,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of public safety for the purpose of hiring two additional full-time employees in the Division
of Alcohol and Gambling Enforcement.
new text end