language to be deleted (2) new language
Laws of Minnesota 1990 CHAPTER 554-S.F.No. 2108 An act relating to liquor; authorizing sale of liqueur-filled candies in exclusive liquor stores; specifying minimum seating capacity of restaurants in certain counties; restricting right of brewers to be beer wholesalers or to have an interest in a beer wholesaler; providing for hours of sale at certain establishments; requiring notification to commissioner of public safety of issuance of wine licenses; repealing requirement that cities conduct a referendum on continuation of municipal liquor operations; modifying restrictions on license issuance by counties; authorizing licenses for sale of Minnesota-produced wine at Minneapolis-St. Paul International Airport; permitting removal of unfinished bottles of wine from restaurants; authorizing issuance of wine licenses to licensed bed and breakfast facilities; authorizing issuance of licenses by Minneapolis, St. Paul, Brooklyn Center, and Evansville; requiring certain establishments to make Minnesota-produced beer available; permitting Anoka county to delegate liquor licensing authority to towns; amending Minnesota Statutes 1988, sections 31.121; 340A.101, subdivisions 10 and 25; 340A.301, subdivisions 1, 7, and by adding a subdivision; 340A.404, subdivisions 3, 5, and by adding a subdivision; 340A.405, subdivision 2, and by adding a subdivision; 340A.413, subdivision 4; 340A.504, subdivision 1; and 340A.601, subdivision 2; Minnesota Statutes 1989 Supplement, section 340A.404, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 340A; repealing Minnesota Statutes 1988, section 340A.405, subdivision 5. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 1988, section 31.121, is amended to read: 31.121 [FOOD ADULTERATION.] A food shall be deemed to be adulterated: (a) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance such food shall not be considered adulterated under this clause if the quantity of such substance in such food does not ordinarily render it injurious to health; or (b) If it bears or contains any added poisonous or added deleterious substance, other than one which is a pesticide chemical in or on a raw agricultural commodity; a food additive; or a color additive, which is unsafe within the meaning of section 31.122; or (c) If it is a raw agricultural commodity and it bears or contains a pesticide chemical which is unsafe within the meaning of section 31.122; or (d) If it is or it bears or contains any food additive which is unsafe within the meaning of section 31.122; provided that where a pesticide chemical has been used in or on a raw agricultural commodity in conformity with an exemption granted or tolerance prescribed under section 31.122, and such raw agricultural commodity has been subjected to processing such as canning, cooking, freezing, dehydrating, or milling, the residue of such pesticide chemical remaining in or on such processed food shall, notwithstanding the provisions of section 31.122 and this clause, not be deemed unsafe if such residue in or on the raw agricultural commodity has been removed to the extent possible in good manufacturing practice, and the concentration of such residue in the processed food when ready to eat is not greater than the tolerance prescribed for the raw agricultural commodity; or (e) If it consists in whole or in part of a diseased, contaminated, filthy, putrid, or decomposed substance, or if it is otherwise unfit for food; or (f) If it has been produced, prepared, packed, or held under insanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered diseased, unwholesome, or injurious to health; or (g) If it is in whole or in part the product of a diseased animal or of an animal which has died otherwise than by slaughter, or of an animal that has been fed upon the uncooked offal from a slaughterhouse; or (h) If its container is composed in whole or in part of any poisonous or deleterious substance which may render the contents injurious to health; or (i) If it has been intentionally subjected to radiation, unless the use of the radiation was in conformity with a rule or exemption in effect pursuant to section 31.122 or section 409 of the federal act; or (j) If any valuable constituent has been in whole or in part omitted or abstracted therefrom; or (k) If any substance has been substituted wholly or in part therefor; or (l) If damage or inferiority has been concealed in any manner; or (m) If any substance has been added thereto or mixed or packed therewith so as to increase its bulk or weight, or reduce its quality or strength or make it appear better or of greater value than it is; or (n) If it is confectionery, and (1) has partially or completely imbedded therein any nonnutritive object; provided, that this clause shall not apply in the case of any nonnutritive object if in the judgment of the commissioner, as provided by rules, such object is of practical functional value to the confectionery product and would not render the product injurious or hazardous to health; or (2)
bears or contains any alcohol, other than alcohol not in excess of one half of one percent by volume derived solely from the use of flavoring extracts; or (3)bears or contains any nonnutritive substance; provided, that this clause shall not apply to a safe nonnutritive substance which is in or on confectionery by reason of its use for some practical functional purpose in the manufacture, packaging, or storing of such confectionery if the use of the substance does not promote deception of the consumer or otherwise result in adulteration or misbranding in violation of any provision of the Minnesota food law; and provided further, that the commissioner may, for the purpose of avoiding or resolving uncertainty as to the application of this clause, issue rules allowing or prohibiting the use of particular nonnutritive substances; or (o) If it is or bears or contains any color additive which is unsafe within the meaning of section 31.122; or (p) If it is oleomargarine or margarine or butter and any of the raw material used therein consisted in whole or in part of any filthy, putrid, or decomposed substance, or such oleomargarine or margarine or butter is otherwise unfit for food. Sec. 2. Minnesota Statutes 1988, section 340A.101, subdivision 10, is amended to read: Subd. 10. [EXCLUSIVE LIQUOR STORE.] "Exclusive liquor store" is an establishment used exclusively for the sale of intoxicating liquor except for the incidental sale of ice, tobacco, nonintoxicating malt liquor, beverages for mixing with intoxicating liquor, soft drinks, liqueur-filled candies, cork extraction devices, and books and videos on the use of alcoholic beverages in the preparation of food, and the establishment may offer recorded or live entertainment. "Exclusive liquor store" also includes an on-sale or combination on-sale and off-sale intoxicating liquor establishment which sells food for on-premise consumption when authorized by the municipality issuing the license. Sec. 3. Minnesota Statutes 1988, section 340A.101, subdivision 25, is amended to read: Subd. 25. [RESTAURANT.] "Restaurant" is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly served at tables to the general public, and having seating capacity for guests in the following minimum numbers: (a) First class cities 50 (b) Second and third class cities and statutory cities of over 10,000 population 30 (c) Unincorporated or unorganized territory other than in Cook, Itasca, Lake, Lake of the Woods, and St. Louis counties 100 (d) Unincorporated or unorganized territory in Cook, Itasca, Lake, Lake of the Woods, and St. Louis counties 50 In the case of classes (b) and (c) above, the governing body of a city or county may prescribe a higher minimum number. In fourth class cities and statutory cities under 10,000 population, minimum seating requirements are those prescribed by the governing body of the city. Sec. 4. Minnesota Statutes 1988, 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 nonintoxicating malt liquor 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 of malt liquor may sell products at wholesale without an additional license.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 7a, paragraph (c) or (d). A licensed wholesaler of intoxicating malt liquor may sell nonintoxicating malt liquor at wholesale without an additional license. The business of manufacturer and wholesaler may be combined and carried on under a single manufacturer's license.Sec. 5. Minnesota Statutes 1988, section 340A.301, subdivision 7, is amended to read: Subd. 7. [INTEREST IN OTHER BUSINESS.] (a) Except as provided in this subdivision, a holder of a license as a manufacturer, brewer, or wholesaler may not have any ownership, in whole or in part, in a business holding a retail intoxicating liquor or nonintoxicating malt liquor license, but a manufacturer or wholesaler of intoxicating liquor may use or have property rented for retail intoxicating liquor sales if the manufacturer or wholesaler has owned the property continuously since November 1, 1933. (b) A licensed brewer of malt liquor described in subdivision 6, clause (d) may be issued an on-sale intoxicating liquor or nonintoxicating malt liquor license by a municipality for a restaurant operated in or immediately adjacent to the place of manufacture. (c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a 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. 6. Minnesota Statutes 1988, section 340A.301, is amended by adding a subdivision to read: Subd. 7a. [PERMITTED INTERESTS IN WHOLESALE BUSINESS.] (a) A brewer may financially assist a wholesaler of malt liquor through participation in a limited partnership in which the brewer is the limited partner and the wholesaler is the general partner. A limited partnership authorized in this paragraph may not exist for more than ten years from the date of its creation, and may not, directly or indirectly, be recreated, renewed, or extended beyond that date. (b) A brewer may financially assist a malt liquor wholesaler and collateralize the financing by taking a security interest in the inventory and assets, other than the corporate stock, of the wholesaler. A financial agreement authorized by this paragraph may not be in effect for more than ten years from the date of its creation and may not be directly or indirectly extended or renewed. (c) A brewer who, after creation of a financial agreement authorized by paragraph (b), or after creation of a limited partnership authorized in paragraph (a), acquires legal or equitable title to the wholesaler's business which was the subject of the agreement or limited partnership, or to the business assets, must divest the business or its assets within two years of the date of acquiring them. A malt liquor wholesaler whose business or assets are acquired by a brewer as described in this paragraph may not enter into another such financial agreement, or participate in another such limited partnership, for 20 years from the date of the acquisition of the business or assets. (d) A brewer may have an interest in the business, assets, or corporate stock of a malt liquor wholesaler as a result of (1) a judgment against the wholesaler arising out of a default by the wholesaler or (2) acquisition of title to the business, assets, or corporate stock as a result of a written request of the wholesaler. A brewer may maintain ownership of or an interest in the business, assets, or corporate stock under this paragraph for not more than two years, and only for the purpose of facilitating an orderly transfer of the business to an owner not affiliated with the brewer. (e) A brewer may continue to maintain an ownership interest in a malt liquor wholesaler if it owned the interest on the effective date of this section. (f) A brewer that was legally selling the brewer's own products at wholesale in Minnesota on the effective date of this section may continue to sell those products at wholesale in the area where it was selling those products on that date. (g) A brewer that manufactures malt liquor in Minnesota may, if the brewer does not manufacture in Minnesota in any year more than 25,000 barrels of malt liquor or its metric equivalent, own or have an interest in a malt liquor wholesaler that sells only the brewer's products. (h) When the commissioner issues a license to a malt liquor wholesaler described in paragraph (a) or (b), the commissioner may issue the license only to the entity which is actually operating the wholesale business and may not issue the license to a brewer that is a limited partner under paragraph (a) or providing financial assistance under paragraph (b) unless the brewer has acquired a wholesaler's business or assets under paragraph (c) or (d). (i) For purposes of this subdivision and subdivision 7, clause (c), "brewer" means: (1) a holder of a license to manufacture malt liquor; (2) an officer, director, agent, or employee of such a license holder; and (3) an affiliate of such a license holder, regardless of whether the affiliation is corporate or by management, direction, or control. Sec. 7. Minnesota Statutes 1989 Supplement, 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 Theatre, the Cricket Theatre, the Orpheum Theatre, and the State 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 theatres 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) 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 owner of the sports arena located at 600 First Avenue North in the city of Minneapolis or an entity holding a concessions contract with the owner for use on the premises of that sports arena. The license authorizes sales on all days of the week to holders of tickets for sporting events or other events at the sports arena and to the owner of the sports arena and the owner's guests. The licensee may not dispense intoxicating liquor to any person attending or participating in an amateur athletic event held on the premises. Sec. 8. Minnesota Statutes 1988, section 340A.404, subdivision 3, is amended to read: Subd. 3. [NOTICE TO THE COMMISSIONER.] A city shall within ten days of the issuance of a license under subdivision 1 or 5, inform the commissioner of the licensee's name and address and trade name, and the effective date and expiration date of the license. The city shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period. Sec. 9. Minnesota Statutes 1988, 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 nonintoxicating 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. Sec. 10. Minnesota Statutes 1988, section 340A.404, is amended by adding a subdivision to read: Subd. 11. [REMOVAL OF WINE FROM RESTAURANT.] A restaurant licensed to sell intoxicating liquor or wine at on-sale under this section may permit a person purchasing a full bottle of wine in conjunction with the purchase of a meal to remove the bottle on leaving the licensed premises provided that the bottle has been opened and the contents partially consumed. A removal of a bottle under the conditions described in this subdivision is not an off-sale of intoxicating liquor and may be permitted without additional license. Sec. 11. Minnesota Statutes 1988, section 340A.405, subdivision 2, is amended to read: Subd. 2. [COUNTIES.] (a) A county may issue an off-sale intoxicating license with the approval of the commissioner to exclusive liquor stores located within unorganized territory of the county. (b) A county board of any county except Ramsey county containing a town exercising powers under section 368.01, subdivision 1, may issue an off-sale license to an exclusive liquor store within that town with the approval of the commissioner. No license may be issued under this paragraph unless the town board adopts a resolution supporting the issuance of the license. (c) A county board of any county except Ramsey county containing a town that may not exercise powers under section 368.01, subdivision 1, may issue a combination off-sale and on-sale license to restaurants within that town with the approval of the commissioner pursuant to section 340A.404, subdivision 6. No license may be issued under this paragraph unless the town board adopts a resolution supporting the issuance of the license. (d) No license may be issued under this subdivision unless a public hearing is held on the issuance of the license. Notice must be given to all interested parties and to any city located within three miles of the premises proposed to be licensed. At the hearing the county board shall consider testimony and exhibits presented by interested parties and may base its decision to issue or deny a license upon the nature of the business to be conducted and its impact upon any municipality, the character and reputation of the applicant, and the propriety of the location. Any hearing held under this paragraph is not subject to chapter 14. (e) A county board may not issue a license under this subdivision to a person for an establishment located less than three milesone mile by the most direct route from the boundary of any statutory or home rule city except cities of the first class or within Pine, Carlton, Carver, Itasca, or Red Lake county within three milesone mile of a statutory or home rule city with a municipal liquor store. (f) The town board may impose an additional license fee in an amount not to exceed 20 percent of the county license fee. (g) Notwithstanding any provision of this subdivision or Laws 1973, chapter 566, as amended by Laws 1974, chapter 200, a county board may transfer or renew a license that was issued by a town board under Minnesota Statutes 1984, section 340.11, subdivision 10b, prior to January 1, 1985. Sec. 12. Minnesota Statutes 1988, section 340A.405, is amended by adding a subdivision to read: Subd. 6. [AIRPORTS COMMISSION.] The metropolitan airports commission may with the approval of the commissioner issue licenses for the off-sale of Minnesota-produced wine at the Minneapolis-St. Paul International Airport. Sec. 13. Minnesota Statutes 1988, section 340A.413, subdivision 4, is amended to read: Subd. 4. [EXCLUSIONS FROM LICENSE LIMITS.] On-sale intoxicating liquor licenses may be issued to the following entities by a city, in addition to the number authorized by this section: (1) clubs, or congressionally chartered veterans organizations; (2) restaurants located at a racetrack licensed under chapter 240; (3) restaurantsestablishments that are issued licenses to sell wine under section 340A.404, subdivision 5; (4) Lake Superior tour boats that are issued licenses under section 340A.404, subdivision 8; and (5) theaters that are issued licenses under section 340A.404, subdivision 2. Sec. 14. Minnesota Statutes 1988, section 340A.504, subdivision 1, is amended to read: Subdivision 1. [NONINTOXICATING MALT LIQUOR.] No sale of nonintoxicating malt liquor may be made between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between 1:00 a.m. and 12:00 noon on Sunday, provided that an establishment located on land owned by the metropolitan sports commission, or the sports arena for which one or more licenses have been issued under section 340A.404, subdivision 2, paragraph (c), may sell nonintoxicating malt liquor between 10:00 a.m. and 12:00 noon on a Sunday on which a sports or other event is scheduled to begin at that location on or before 1:00 p.m. of that day. Sec. 15. Minnesota Statutes 1988, section 340A.601, subdivision 2, is amended to read: Subd. 2. [POPULATION CHANGE.] A city which has established a municipal liquor store may continue to operate it notwithstanding a subsequent change in population if within one year after the effective date of the census by which the municipality exceeds 10,000 in population, the question, "Shall the city continue to operate its municipal liquor store?" is submitted to the voters of the city at a general or special municipal election and a majority of the voters voting on the question at the election vote in the affirmative on the question. The notice of the election shall state the question to be submitted to the electors at the election. Sec. 16. [340A.908] [LIQUEUR-FILLED CANDY.] Liqueur-filled candy may only be sold in an exclusive liquor store. Sec. 17. [340A.909] [SALE OF MINNESOTA BEER AT PUBLIC FACILITIES.] Subdivision 1. [MINNESOTA-PRODUCED BEER; REQUIRED AVAILABILITY.] At any permanent or temporary building or structure owned or operated by the state, a political subdivision, or an instrumentality thereof, where beer is sold for on-premise consumption, the entity owning or operating the building or structure must insure that a Minnesota-produced beer is available for purchase at each station where beer is sold. This section applies to all such permanent or temporary buildings or structures without regard to whether sales of beer are made by the owning or operating government entity or employees thereof or by a person holding a lease or concession contract with the government entity. Subd. 2. [EXCEPTIONS.] This section does not apply to: (1) municipal liquor stores; or (2) persons holding an event on property owned by a government entity where (a) the event is conducted under a temporary permit from that government entity, and (b) alcoholic beverages are provided to persons attending the event, at no cost to those persons. Sec. 18. [ANOKA COUNTIES; LIQUOR LICENSING.] The county board of Anoka county may, by resolution, delegate to the town board of towns located within the county, powers possessed by the county to issue nonintoxicating malt liquor licenses under Minnesota Statutes, section 340A.403, on-sale intoxicating liquor licenses under section 340A.404, and off-sale intoxicating liquor licenses under section 340A.405, within the unincorporated area of the county; provided that the town board of the respective town consents to the delegation of powers. License fees must be paid to the town and the town board shall assume all powers and duties of the county board in regard to licensing. Sec. 19. [CITY OF ST. PAUL; WINE AND BEER LICENSES.] Subdivision 1. [LICENSE AUTHORIZED.] The city of St. Paul may issue on-sale nonintoxicating malt liquor licenses and on-sale wine licenses to the city's division of parks and recreation. The licenses authorize the sale of wine or nonintoxicating malt liquor on property owned by the city and under the jurisdiction of the division by: (1) employees of the city; (2) persons holding a permit from the division to conduct an event and sell wine or nonintoxicating malt liquor to persons attending the event; or (3) persons who have contracted with the city to sell wine or nonintoxicating malt liquor on such property. Subd. 2. [PERMITS; CONTRACTS.] (a) Permits issued by the city under subdivision 1, clause (2), and contracts entered into by the city under subdivision 1, clause (3), must provide for: (1) the duration of the permit or contract; (2) the premises or area in which sales of wine or nonintoxicating malt liquor will be made; (3) the persons to whom such sales will be made; (4) the days and hours in which such sales will be made; and (5) obtaining by the permit holder or contracted vendor of such liquor liability insurance or bond, or both, as the city considers necessary to protect the city's interest as the holder of the license. (b) A permit may be issued or a contract entered into under this section with a person who does not hold a license issued under Minnesota Statutes, chapter 340A, for the retail sale of alcoholic beverages. (c) The division may, without notice or hearing, refuse to issue a permit under subdivision 1, clause (2). Subd. 3. [CITY COUNCIL APPROVAL.] The St. Paul city council must approve each: (1) facility at which wine or nonintoxicating malt liquor will be sold by city employees; (2) permit issued under subdivision 1, clause (2); and (3) contract entered into under subdivision 1, clause (3). Subd. 4. [APPLICABILITY OF GENERAL LAW.] All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply to licenses issued under this section. Licenses authorized by this section are in addition to any other licenses authorized by law. Sec. 20. [EARLE BROWN HERITAGE CENTER LICENSE.] In addition to any license authorized by law, the city of Brooklyn Center may issue one on-sale intoxicating liquor license for the Earle Brown Heritage Center convention center. The license shall authorize the sale and serving of liquor to persons attending events at the center other than amateur athletic events. The license fee and hours of sale shall be set by the city council within the limits imposed by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply to this license. Sec. 21. [CITY OF EVANSVILLE; SUNDAY LIQUOR LICENSE.] Notwithstanding Minnesota Statutes, section 340A.504, subdivision 3, paragraph (d), the city of Evansville may issue a license authorizing on-sales of intoxicating liquor on Sunday to a restaurant in the city without authorization by the voters of the city. All other provisions of Minnesota Statutes, chapter 340A, apply to a license issued under this section. Sec. 22. [REPEALER.] Minnesota Statutes 1988, section 340A.405, subdivision 5, is repealed. Sec. 23. [EFFECTIVE DATE.] Sections 1 to 3, 7, 9 to 13, 15, 16, and 18 to 21 are effective the day following final enactment. Sections 4 to 6 are effective January 1, 1991. Presented to the governor April 26, 1990 Signed by the governor May 4, 1990, 11:52 p.m.