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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1991 

                        CHAPTER 249-H.F.No. 683 
           An act relating to alcoholic beverages; prohibiting a 
          retailer from having an interest in a manufacturer, 
          brewer, or wholesaler; prohibiting a retailer from 
          renting space to a manufacturer, brewer, or 
          wholesaler; providing that brand registration is for a 
          three-year period; specifying that club on-sale 
          licenses are subject to approval of the commissioner 
          of public safety; consolidating provisions of law 
          relating to seasonal on-sale licenses; providing for 
          sale of intoxicating liquor at a sports arena in 
          Minneapolis; providing extended duration of seasonal 
          licenses in certain counties; removing certain 
          restrictions on location of off-sale and combination 
          licenses issued by counties; providing for the 
          issuance of retailer identification cards to certain 
          licensees; clarifying law on issuance of off-sale 
          licenses by counties; allowing gambling on licensed 
          premises when governed by tribal ordinance or a 
          tribal-state compact; clarifying language on certain 
          prohibitions on issuance of multiple licenses and 
          repealing obsolete provisions relating thereto; 
          prohibiting off-site storage of intoxicating liquor; 
          specifying applicability of license limits to certain 
          fourth-class cities; changing the expiration date for 
          consumption and display permits; raising the minimum 
          age for keeping intoxicating liquor in bottle clubs; 
          authorizing commissioner of public safety to impose 
          civil penalties for conducting or permitting unlawful 
          gambling on licensed premises, or for failure to 
          remove impure products; specifying applicability to 
          municipal liquor stores of prohibitions against 
          permitting consumption of alcoholic beverages by 
          underage persons; clarifying language on sales of 
          intoxicating liquor on Christmas day; providing for 
          Sunday liquor elections in counties; prohibiting sale 
          of certain beverages; authorizing commissioner of 
          public safety to inspect alcoholic beverages for 
          purity of contents and to order the removal of impure 
          products; specifying that a split liquor referendum is 
          not required for issuance of club licenses; repealing 
          restrictions on wine sales at Minneapolis-St. Paul 
          International Airport; authorizing issuance of an 
          on-sale intoxicating malt liquor license in St. Louis 
          county; authorizing the issuance of on-sale Sunday 
          liquor licenses by the city of Alexandria; specifying 
          the number of on-sale licenses which may be issued in 
          the cities of Virginia and Hibbing; changing the name 
          of nonintoxicating malt liquor; amending Minnesota 
          Statutes 1990, sections 340A.301, subdivision 7; 
          340A.311; 340A.402; 340A.404, subdivisions 1, 2, 6, 
          and by adding a subdivision; 340A.405, subdivisions 2 
          and 6; 340A.4055; 340A.408, subdivision 2; 340A.410, 
          subdivision 5; 340A.412, subdivisions 2, 3, and by 
          adding a subdivision; 340A.413, subdivision 1; 
          340A.414, subdivisions 4 and 8; 340A.415; 340A.503, 
          subdivision 1; 340A.504, subdivisions 2 and 3; 
          340A.506; 340A.508, by adding a subdivision; 340A.601, 
          subdivision 5; and 340A.604; repealing Minnesota 
          Statutes 1990, section 340A.404, subdivision 6a; Laws 
          1974, chapter 501, section 1; and Laws 1989, chapter 
          72. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, 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.  The 
commissioner may not issue a license under this section to a 
manufacturer, brewer, or wholesaler if a retailer of 
intoxicating liquor has a direct or indirect interest in the 
manufacturer, brewer, 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) 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. 2.  Minnesota Statutes 1990, section 340A.311, is 
amended to read: 
    340A.311 [BRAND REGISTRATION.] 
    (a) A brand of intoxicating liquor or nonintoxicating malt 
liquor may not be manufactured or, 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 $20.  The brand label of a 
brand of intoxicating liquor or nonintoxicating malt liquor 
which has not been sold in the state for two years or more must 
be reregistered before its sale can be resumed.  The brand label 
of a brand of intoxicating liquor or nonintoxicating malt liquor 
which has not been sold in the state for at least three 
years 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) A brand 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. 
    Sec. 3.  Minnesota Statutes 1990, section 340A.402, is 
amended to read: 
    340A.402 [PERSONS ELIGIBLE.] 
    No retail license may be issued to: 
    (1) a person not a citizen of the United States or a 
resident alien; 
    (2) a person under 21 years of age; 
    (3) a person who has had an intoxicating liquor or 
nonintoxicating liquor 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; or 
    (4) a person not of good moral character and repute; or 
     (5) 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 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.  
    Sec. 4.  Minnesota Statutes 1990, section 340A.404, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CITIES.] 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; 
    (5) sports facilities located on land owned by the 
metropolitan sports commission; and 
    (6) exclusive liquor stores.  
    Sec. 5.  Minnesota Statutes 1990, 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. 6.  Minnesota Statutes 1990, section 340A.404, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [CITY OF MINNEAPOLIS; ARENA.] (a) 
Notwithstanding any other law, local ordinance, or charter 
provision, the city of Minneapolis may issue one or more on-sale 
or combination on-sale and off-sale intoxicating liquor licenses 
to the owner of the sports arena located at 600 First Avenue 
North in Minneapolis, or to an entity holding a concessions 
contract with the owner for use on the premises of that sports 
arena. 
    (b) The license authorizes sales on all days of the week to 
holders of tickets for events at the sports arena, and to the 
owners of the sports arena and the owners' guests. 
    (c) The licensee may not dispense intoxicating liquor to 
any person attending or participating in an amateur athletic 
event held on the premises unless such dispensing is authorized 
by the city.  The city may not authorize the dispensing of 
intoxicating liquor at any event held under the auspices of the 
Minnesota state high school league. 
    (d) The license authorized by this subdivision may be 
issued for space that is not compact and contiguous, provided 
that all such space is within the sports arena building and is 
included in the description of the licensed premises on the 
approved license application. 
    (e) Notwithstanding any law or rule to the contrary, a 
person licensed to make off-sales within the sports arena 
building may deliver alcoholic beverages to rooms and suites 
within the sports arena building (1) between midnight and 8:00 
a.m. on Monday through Thursday, and (2) between midnight and 
8:00 a.m. and between 10:00 p.m. and midnight on Friday through 
Sunday.  No delivery authorized by this paragraph may be made to 
a room or suite within the building at any time when an event 
utilizing the room or suite is in progress.  
    (f) The holder of a license issued under this subdivision 
may dispense intoxicating liquor in miniature bottles if the 
intoxicating liquor is poured from the miniature bottles, mixed 
into another beverage, and dispensed on the premises by 
employees of the licensee. 
    Sec. 7.  Minnesota Statutes 1990, section 340A.404, 
subdivision 6, is amended to read: 
    Subd. 6.  [COUNTIES.] (a) A county board may issue an 
annual on-sale intoxicating liquor license within the area of 
the county that is unorganized or unincorporated to a bowling 
center, restaurant, or club with the approval of the 
commissioner.  
    (b) A county board may also with the approval of the 
commissioner issue up to ten seasonal on-sale licenses to 
restaurants and clubs for the sale of intoxicating liquor within 
the area of the county that is unorganized or unincorporated to 
a restaurant or club with the approval of the commissioner.  
Notwithstanding section 340A.412, subdivision 8, a seasonal 
license is valid for a period specified by the board, not to 
exceed six nine months.  Not more than one license may be issued 
for any one premises during any consecutive 12-month period. 
    Sec. 8.  Minnesota Statutes 1990, 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 
one 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 
one mile of a statutory or home rule city with that had 
established a municipal liquor store before August 1, 1991, 
provided, that a county board may not issue a new license under 
this subdivision to a person for an establishment located less 
than three miles by the most direct route from the boundary of a 
city that (1) is located outside the metropolitan area as 
defined in section 473.121, subdivision 2, (2) has a population 
over 5,000 according to the most recent federal decennial 
census, and (3) had established a municipal liquor store before 
August 1, 1991. 
    (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. 9.  Minnesota Statutes 1990, section 340A.405, 
subdivision 6, is amended 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. 10.  Minnesota Statutes 1990, 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 
nonintoxicating malt liquor 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, is valid with 
the approval of the commissioner.  The commissioner shall 
approve the license if the establishment has complied with 
sections 340A.402; 340A.409; 340A.410, subdivisions 4, 5, and 7; 
340A.412, subdivisions 1 to 7, 9, and 10; 340A.413; 340A.501; 
340A.502; 340A.503; 340A.504; and 340A.506.  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 
subdivision section is not required to obtain a license from any 
municipality, county, or town.  
    Sec. 11.  Minnesota Statutes 1990, section 340A.408, 
subdivision 2, is amended to read: 
    Subd. 2.  [INTOXICATING LIQUOR; ON-SALE.] (a) The license 
fee for a retail on-sale intoxicating liquor license is the fee 
set by the city or county issuing the license subject to the 
limitations imposed under this subdivision. 
    (b) The annual license fee for an on-sale intoxicating 
liquor license issued by a city municipality to a club must be 
no greater than: 
    (1) $300 for a club with under 200 members; 
    (2) $500 for a club with between 201 and 500 members; 
    (3) $650 for a club with between 501 and 1,000 members; 
    (4) $800 for a club with between 1,001 and 2,000 members; 
    (5) $1,000 for a club with between 2,001 and 4,000 members; 
    (6) $2,000 for a club with between 4,001 and 6,000 members; 
or 
    (7) $3,000 for a club with over 6,000 members. 
    (c) The license fee for the issuance of a wine license may 
not exceed one-half of the license fee charged for an on-sale 
intoxicating liquor license, or $2,000, whichever is less. 
    (d) The town board of a town in which an on-sale 
establishment has been licensed by a county may impose an 
additional license fee on each such establishment in an amount 
not to exceed 20 percent of the county license fee. 
    Sec. 12.  Minnesota Statutes 1990, section 340A.410, 
subdivision 5, is amended to read: 
    Subd. 5.  [GAMBLING PROHIBITED.] (a) No retail 
establishment licensed to sell alcoholic beverages may keep, 
possess, or operate, or permit the keeping, possession, or 
operation on the licensed premises of dice or any gambling 
device as defined in section 349.30, or permit gambling therein 
except as provided in this subdivision.  
    (b) Gambling equipment may be kept or operated and raffles 
conducted on licensed premises and adjoining rooms when the use 
of the gambling equipment is authorized under by (1) chapter 
349, (2) a tribal ordinance in conformity with the Indian Gaming 
Regulatory Act, Public Law Number 100-497, or (3) a tribal-state 
compact authorized under section 3.9221. 
    (c) Lottery tickets may be purchased and sold within the 
licensed premises as authorized by the director of the lottery 
under chapter 349A.  
    Sec. 13.  Minnesota Statutes 1990, section 340A.412, 
subdivision 2, is amended to read: 
    Subd. 2.  [INVESTIGATION OF ON-SALE LICENSES.] (a) The city 
or county having jurisdiction over on-sale licenses to sell 
intoxicating liquor shall on initial application for an on-sale 
license or on application for a transfer of an existing license 
conduct a preliminary background and financial investigation of 
the applicant.  The application must be in the form prescribed 
by the bureau of criminal apprehension commissioner and with any 
additional information as the governing body of the city or 
county having jurisdiction over the license requires.  If the 
governing body of the city or county having jurisdiction 
determines or if the bureau of criminal apprehension 
commissioner on its the commissioner's own initiative determines 
that a comprehensive background and investigation of the 
applicant is necessary, the governing body may conduct the 
investigation itself or contract with the bureau of criminal 
apprehension commissioner for the investigation.  In addition, 
an investigation may be required prior to renewal of an existing 
on-sale license when the governing body of the city or county 
deems it in the public interest.  An investigation fee not to 
exceed $500 shall be charged an applicant by the city or county 
if the investigation is conducted within the state, or the 
actual cost not to exceed $10,000 if the investigation is 
required outside the state.  
    (b) No license may be issued, transferred, or renewed if 
the results of the investigation show, to the satisfaction of 
the governing body, that issuance, transfer, or renewal would 
not be in the public interest.  
    Sec. 14.  Minnesota Statutes 1990, section 340A.412, 
subdivision 3, is amended to read: 
    Subd. 3.  [LIMITATIONS ON ISSUANCE OF LICENSES TO ONE 
PERSON OR PLACE.] (a) No more than one off-sale intoxicating 
liquor license may be directly or indirectly issued to any one 
person or for any one place in each city or county. 
    (b) For the purpose of this subdivision, the term 
"interest": 
    (1) includes any pecuniary interest in the ownership, 
operation, management, or profits of a retail liquor 
establishment, and a person who receives money from time to time 
directly or indirectly from a licensee, in the absence of 
consideration and excluding gifts or donations, has a pecuniary 
interest in the retail license; and 
    (2) does not include loans; rental agreements; open 
accounts or other obligations held with or without security 
arising out of the ordinary and regular course of business of 
selling or leasing merchandise, fixtures, supplies to the 
establishment; an interest in a corporation owning or operating 
a hotel but having at least 150 or more rental units holding a 
liquor license in conjunction therewith; or ten percent or less 
interest in any other corporation holding a license. 
    (c) In determining whether an "interest" exists, the 
transaction must have been bona fide and the reasonable value of 
the goods and things received as consideration for a payment by 
the licensee and all other facts reasonably tending to prove or 
disprove the existence of a purposeful scheme or arrangement to 
evade the restrictions of this subdivision must be 
considered.  A municipality may not issue more than one off-sale 
intoxicating liquor license to any one person or for any one 
place. 
    Sec. 15.  Minnesota Statutes 1990, section 340A.412, is 
amended by adding a subdivision to read: 
    Subd. 12.  [OFF-SITE STORAGE PROHIBITION.] A holder of a 
retail intoxicating liquor license or a municipal liquor store 
may not store any intoxicating liquor at any location other than 
the licensed premises except with the written permission of the 
commissioner.  
    Sec. 16.  Minnesota Statutes 1990, section 340A.413, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ON-SALE LICENSES.] No on-sale intoxicating 
liquor license may be issued in any city except as provided in 
this section in excess of the following limits: 
    (1) in cities of the first class, one license for every 
1,500 population, up to 200 licenses; 
    (2) in cities of the second class, not more than 18 
licenses plus one for every 2,500 population over 45,000; 
    (3) in cities of the third class, not more than 12 
licenses; 
    (4) in cities of the fourth class, including cities whose 
acts of incorporation were repealed by Laws 1973, chapter 123, 
article V, section 5, not more than seven licenses; 
    (5) in statutory cities of 5,000 to 10,000 population, not 
more than six licenses; 
    (6) in statutory cities of 2,500 to 5,000 population, not 
more than five licenses; 
    (7) in statutory cities of 500 to 2,500 population, not 
more than four licenses; and 
    (8) in statutory cities under 500 population, not more than 
three licenses. 
    Sec. 17.  Minnesota Statutes 1990, section 340A.414, 
subdivision 4, is amended to read: 
    Subd. 4.  [PERMIT EXPIRATION.] All permits issued under 
this section expire on June 30 March 31 of each year. 
    Sec. 18.  Minnesota Statutes 1990, section 340A.414, 
subdivision 8, is amended to read: 
    Subd. 8.  [LOCKERS.] A club issued a permit under this 
section may allow members to bring and keep a personal supply of 
intoxicating liquor in lockers on the club's premises.  All 
bottles kept on the premises must have attached to it a label 
signed by the member.  No person under 19 21 years of age may 
keep a supply of intoxicating liquor on club premises.  
    Sec. 19.  Minnesota Statutes 1990, section 340A.415, is 
amended to read: 
    340A.415 [LICENSE REVOCATION OR SUSPENSION.] 
    The authority issuing or approving any retail license or 
permit under this chapter shall either suspend for up to 60 days 
or revoke the license or permit or impose a civil fine not to 
exceed $2,000 for each violation on a finding that the license 
or permit holder has failed to comply with an applicable 
statute, rule, or ordinance relating to alcoholic beverages.  No 
suspension or revocation takes effect until the license or 
permit holder has been afforded an opportunity for a hearing 
under sections 14.57 to 14.69 of the administrative procedure 
act.  This section does not require a political subdivision to 
conduct the hearing before an employee of the office of 
administrative hearing.  The issuing authority or the 
commissioner may impose the penalties provided in this section 
on a retail licensee who knowingly (1) sells alcoholic beverages 
to another retail licensee for the purpose of resale, or on a 
retail licensee who (2) purchases alcoholic beverages from 
another retail licensee for the purpose of resale, (3) conducts 
or permits the conduct of gambling on the licensed premises in 
violation of the law, or (4) fails to remove or dispose of 
alcoholic beverages when ordered by the commissioner to do so 
under section 24. 
    Sec. 20.  Minnesota Statutes 1990, section 340A.503, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONSUMPTION.] It is unlawful for any: 
    (1) retail intoxicating liquor or nonintoxicating liquor 
licensee, municipal liquor store, or bottle club permit holder 
under section 340A.414, to permit any person under the age of 21 
years to consume 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.  
    Sec. 21.  Minnesota Statutes 1990, section 340A.504, 
subdivision 2, is amended to read: 
    Subd. 2.  [INTOXICATING LIQUOR; ON-SALE.] No sale of 
intoxicating liquor for consumption on the licensed premises may 
be made: 
    (1) between 1:00 a.m. and 8:00 a.m. on the days of Monday 
through Saturday; 
    (2) after 1:00 a.m. on Sundays, except as provided by 
subdivision 3; 
    (3) between 8:00 p.m. on December 24 and 8:00 a.m. on 
December 25, except as provided that when December 25 occurs on 
a Sunday on-sales on that day are governed by subdivision 3. 
    Sec. 22.  Minnesota Statutes 1990, section 340A.504, 
subdivision 3, is amended to read: 
    Subd. 3.  [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 
A restaurant, club, bowling center, or hotel with a seating 
capacity for at least 30 persons and which holds an on-sale 
intoxicating liquor license may sell intoxicating liquor for 
consumption on the premises in conjunction with the sale of food 
between the hours of 12:00 noon on Sundays and 1:00 a.m. on 
Mondays. 
    (b) The governing body of a municipality may after one 
public hearing by ordinance permit a restaurant, hotel, bowling 
center, or club to sell intoxicating liquor for consumption on 
the premises in conjunction with the sale of food between the 
hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, 
provided that the licensee is in conformance with the Minnesota 
clean air act. 
    (c) An establishment serving intoxicating liquor on Sundays 
must obtain a Sunday license.  The license must be issued by the 
governing body of the municipality for a period of one year, and 
the fee for the license may not exceed $200. 
    (d) A municipality city may issue a Sunday intoxicating 
liquor license only if authorized to do so by the voters of the 
municipality city voting on the question at a general or special 
election.  A county may issue a Sunday intoxicating liquor 
license in a town only if authorized to do so by the voters of 
the town as provided in paragraph (e).  A county may issue a 
Sunday intoxicating liquor license in unorganized territory only 
if authorized to do so by the voters of the election precinct 
that contains the licensed premises, voting on the question at a 
general or special election. 
    (e) An election conducted in a town on the question of the 
issuance by the county of Sunday sales licenses to 
establishments located in the town must be held on the day of 
the annual election of town officers. 
    (f) Voter approval is not required for licenses issued by 
the metropolitan airports commission or common carrier licenses 
issued by the commissioner.  Common carriers serving 
intoxicating liquor on Sunday must obtain a Sunday license from 
the commissioner at an annual fee of $50, plus $5 for each 
duplicate. 
    Sec. 23.  Minnesota Statutes 1990, section 340A.506, is 
amended to read: 
    340A.506 [SALES OF ETHYL ALCOHOL AND NEUTRAL SPIRITS 
PROHIBITED.] 
    Subdivision 1.  [ETHYL ALCOHOL; NEUTRAL SPIRITS.] No person 
may sell at retail for beverage purposes ethyl alcohol or 
neutral spirits, or substitutes thereof, possessing the taste, 
aroma, and characteristics generally attributed to ethyl alcohol 
or neutral spirits. Nothing in this section prohibits the 
manufacture or sale of other products obtained by use of ethyl 
alcohol or neutral spirits as defined in United States Treasury 
Department, Bureau of Internal Revenue, Regulations 125, Article 
II, Standards of Identity for Distilled Spirits. 
    Subd. 2.  [MAXIMUM ALCOHOL CONTENT.] No person may sell for 
beverage purposes any spirits, distilled from grain or corn, 
with an alcohol content of 80 percent or more, which equals 160 
proof or more, unless such spirits have been aged in wood casks 
for not less than two years. 
    Sec. 24.  Minnesota Statutes 1990, section 340A.508, is 
amended by adding a subdivision to read: 
    Subd. 3.  [PURITY OF CONTENTS.] The commissioner may 
examine the contents of any container of alcoholic beverages on 
the premises of any licensee under this chapter or any municipal 
liquor store, for the purpose of determining the purity of the 
alcoholic beverages.  The commissioner may remove any container, 
or remove all or part of the contents thereof, for the purpose 
of conducting tests of purity.  The commissioner may order the 
removal from inventory of any container the contents of which 
fail to meet standards of purity established by rules adopted 
under this subdivision, and may order the disposal of the 
contents.  The commissioner may adopt rules that (1) provide 
standards of purity for alcoholic beverages and procedures for 
testing for purity, and (2) govern the removal from inventory 
and disposal of alcoholic beverages that do not meet the 
commissioner's standards of purity. 
    Sec. 25.  Minnesota Statutes 1990, section 340A.601, 
subdivision 5, is amended to read: 
    Subd. 5.  [ISSUANCE OF LICENSES TO PRIVATE PERSONS.] A city 
owning and operating a municipal liquor store may issue on-sale 
liquor licenses to hotels, clubs, and restaurants.  A city 
issuing on-sale licenses under this subdivision may continue to 
operate the municipal liquor store or may resume operation of a 
municipal liquor store previously discontinued. 
    The number of on-sale licenses issued under this section by 
a city is governed by section 340A.413. 
    A city may not issue licenses under this section, other 
than a license issued to a club under section 340A.404, 
subdivision 1, clause (4), until authorized by the voters of the 
city voting on the question at a special election called for 
that purpose.  
    Sec. 26.  Minnesota Statutes 1990, section 340A.604, is 
amended to read: 
    340A.604 [SUSPENSION OF OPERATION.] 
    A court shall notify the commissioner in writing within ten 
days whenever a municipal officer or employee has been convicted 
of any of the following offenses committed in a municipal liquor 
store:  
    (1) selling alcoholic beverages to persons or at times 
prohibited by law; 
    (2) selling alcoholic beverages for resale; 
    (3) selling alcoholic beverages on which state taxes have 
not been paid; or 
    (4) violating the provisions of section 340A.410, 
subdivision 6 5, relating to gambling and gambling devices.  
    On receiving the notice of conviction the commissioner may 
suspend for up to 30 days the operation of the municipal liquor 
store where the offense occurred.  The commissioner must notify 
in writing the municipality operating the store of the effective 
dates of the suspension.  An appeal of the suspension is a 
contested case under sections 14.57 to 14.69 of the 
administrative procedure act.  
    Sec. 27.  [ST. LOUIS COUNTY LICENSE.] 
    Notwithstanding any law to the contrary, the St. Louis 
county board may issue a license for the on-sale of intoxicating 
malt liquor to an establishment located in township 61, range 
18, section 29, parcel no. 2150010050251.  The county board 
shall set the fee for the license.  All provisions of Minnesota 
Statutes, chapter 340A, not inconsistent with this section, 
apply to the license authorized by this section. 
    Sec. 28.  [CITY OF ALEXANDRIA; SUNDAY LIQUOR LICENSE.] 
    Notwithstanding Minnesota Statutes, section 340A.504, 
subdivision 3, paragraph (d), the city of Alexandria may issue 
licenses authorizing on-sales of intoxicating liquor on Sunday 
to restaurants and bowling centers 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. 29.  [ON-SALE LICENSES; CITY OF VIRGINIA.] 
    Notwithstanding Minnesota Statutes, section 340A.413, 
subdivision 1, the city of Virginia may issue not more than 21 
on-sale intoxicating liquor licenses.  The licenses authorized 
by this section include any licenses which the city may issue by 
special law or by a referendum conducted under Minnesota 
Statutes, section 340A.413, subdivision 3, before the effective 
date of this section.  All other provisions of Minnesota 
Statutes, chapter 340A, including section 340A.413, subdivision 
4, not inconsistent with this section apply to licenses issued 
under this section. 
    Sec. 30.  [ON-SALE LICENSES; CITY OF HIBBING.] 
     Notwithstanding Minnesota Statutes, section 340A.413, 
subdivision 1, the city of Hibbing may issue not more than 20 
on-sale intoxicating liquor licenses.  All other provisions of 
Minnesota Statutes, chapter 340A, not inconsistent with this 
section apply to licenses issued under this section. 
     Sec. 31.  [INSTRUCTION TO REVISOR.] 
     The revisor of statutes shall change in the next and 
subsequent editions of Minnesota Statutes and Minnesota Rules 
the term "nonintoxicating malt liquor" wherever it occurs to 
"3.2 percent malt liquor." 
    Sec. 32.  [TRANSITION.] 
    Notwithstanding Minnesota Statutes, section 340A.414, 
subdivision 4, all consumption and display permits issued by the 
commissioner of public safety that expire June 30, 1991, are 
extended and are valid until March 31, 1992. 
     Sec. 33.  [REPEALER.] 
    Subdivision 1.  [SEASONAL LICENSE AUTHORITY.] Minnesota 
Statutes 1990, section 340A.404, subdivision 6a, is repealed. 
    Subd. 2.  [VIRGINIA SPECIAL LAW.] Laws 1974, chapter 501, 
section 1, is repealed. 
     Subd. 3.  [HIBBING SPECIAL LAW.] Laws 1989, chapter 72, is 
repealed. 
     Sec. 34.  [EFFECTIVE DATE.] 
    Section 8 applies to new licenses issued on or after August 
1, 1991.  Sections 17 and 30 are effective June 1, 1991.  
Section 27 is effective on approval of the St. Louis county 
board and compliance with Minnesota Statutes, section 645.021.  
Section 28 is effective on approval by the Alexandria city 
council and compliance with Minnesota Statutes, section 
645.021.  Sections 29 and 33, subdivision 2, are effective on 
approval by the Virginia city council and compliance with 
Minnesota Statutes, section 645.021.  Sections 30 and 33, 
subdivision 3, are effective on approval by the Hibbing city 
council and compliance with Minnesota Statutes, section 645.021. 
    Presented to the governor May 28, 1991 
    Signed by the governor May 31, 1991, 4:43 p.m.