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Office of the Revisor of Statutes

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

                            CHAPTER 611-H.F.No. 2617 
                  An act relating to alcoholic beverages; prohibiting 
                  brewer refusal to supply; regulating brand extensions 
                  and termination of agreements; prohibiting 
                  discrimination in sales and rebates; setting license 
                  fees; providing for amounts of malt liquor that may be 
                  brewed in a brewery-restaurant; providing exemption 
                  from law regulating nondiscrimination in liquor 
                  wholesaling; prohibiting registration brand label 
                  stating or implying a false or misleading connection 
                  with an American Indian leader; requiring monthly 
                  reports by microbrewers; removing restriction on sale 
                  of intoxicating liquor on Christmas Eve and Christmas 
                  day; providing for inspection of premises of temporary 
                  on-sale licenses; authorizing issuance of licenses by 
                  certain counties and cities; defining terms; 
                  prohibiting certain solicitations by retailers; 
                  authorizing consignment sales of beer by wholesalers 
                  to temporary licensees; removing requirement that 
                  retail licensees be citizens or resident aliens; 
                  authorizing counties to issue on-sale licenses to 
                  hotels; allowing registered political committees in 
                  existence for less than three years to obtain 
                  temporary on-sale licenses; placing restrictions on 
                  the number of temporary licenses issued to any 
                  organization or for any location; imposing new 
                  restrictions on issuance of more than one off-sale 
                  license to any person in a municipality; regulating 
                  certain wine tastings; restricting use of coupons by 
                  retailers, wholesalers, and manufacturers; providing 
                  penalties; amending Minnesota Statutes 1992, sections 
                  325B.02; 325B.04; 325B.05; 325B.12; 340A.101, 
                  subdivision 13; 340A.301, subdivisions 6, 7, and by 
                  adding a subdivision; 340A.307, subdivision 4; 
                  340A.308; 340A.311; 340A.404, subdivisions 6 and 10; 
                  340A.405, subdivisions 1, 2, and 4; 340A.410, by 
                  adding a subdivision; 340A.412, subdivision 3; 
                  340A.416, subdivision 3; 340A.504, subdivision 2; and 
                  340A.907; Minnesota Statutes 1993 Supplement, sections 
                  340A.402; and 340A.415; proposing coding for new law 
                  in Minnesota Statutes, chapters 325B; and 340A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 325B.02, is 
        amended to read: 
           325B.02 [NO INDUCEMENT OR COERCION.] 
           No brewer shall: 
           (1) Induce or coerce, or attempt to induce or coerce, any 
        beer wholesaler to accept delivery of any alcoholic beverage or 
        any other commodity which shall not have been ordered by the 
        beer wholesaler. 
           (2) Induce or coerce, or attempt to induce or coerce, any 
        beer wholesaler to do any illegal act or thing by threatening to 
        amend, cancel, terminate, or refuse to renew any agreement 
        existing between a brewer and a beer wholesaler. 
           (3) Require a wholesaler to assent to any condition, 
        stipulation or provision limiting the wholesaler's right to sell 
        the product of any other brewer anywhere in the state of 
        Minnesota, provided that the acquisition of the product of 
        another brewer does not materially impair the quality of service 
        or quantity of sales of the existing brand or brands of the 
        brewer seeking to impose the condition, stipulation or provision.
           (4) Refuse to supply, in reasonable quantities and within a 
        reasonable time after receipt of the wholesaler's order, beer 
        ordered by a wholesaler who has an agreement with the brewer for 
        sale and distribution of the brewer's beer, unless the refusal 
        to supply is due to: 
           (i) the brewer's prudent and reasonable restrictions on 
        extension of credit to the wholesaler; 
           (ii) weather or other natural events; 
           (iii) a work stoppage or delay resulting from a strike or 
        other labor dispute; 
           (iv) a bona fide shortage of materials; 
           (v) a freight embargo; or 
           (vi) any other cause over which the brewer or the brewer's 
        agents have no control. 
           Sec. 2.  [325B.031] [BRANDS; BRAND EXTENSIONS.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section:
           (a) "Brand" is any word, name, group of letters, symbol, or 
        combination thereof, that is adopted and used by a brewer or 
        importer to identify a specific beer product, and to distinguish 
        that beer product from another beer product. 
           (b) "Brand extension" is any brand that (1) incorporates 
        all or a substantial part of the unique features of a 
        preexisting brand of the same brewer or importer, and (2) which 
        relies to a significant extent on the goodwill associated with 
        that preexisting brand. 
           Subd. 2.  [BRAND EXTENSION TO BE ASSIGNED.] A brewer or 
        importer who assigns a brand extension to a wholesaler must 
        assign the brand extension to the wholesaler to whom the brewer 
        or importer granted the exclusive sales territory to the brand 
        from which the brand extension resulted.  This requirement does 
        not apply to assignments of brand extensions to wholesalers that 
        were made by a brewer or importer before the effective date of 
        this section. 
           Subd. 3.  [ADDITIONAL BRAND EXTENSION.] In the event that 
        prior to the effective date of this section a brewer or importer 
        had assigned a brand extension to a wholesaler who was not the 
        appointed wholesaler for the brand from which the brand 
        extension was made, then any additional brand extension must be 
        assigned to the wholesaler who first had the brand. 
           Sec. 3.  Minnesota Statutes 1992, section 325B.04, is 
        amended to read: 
           325B.04 [CANCELLATION TERMINATION OF AGREEMENTS.] 
           Subdivision 1.  [TERMINATIONS.] Notwithstanding the terms, 
        provisions or conditions of any agreement, no brewer shall 
        amend, cancel, terminate or refuse to continue to renew any 
        agreement, or cause a wholesaler to resign from an agreement, 
        unless good cause exists for amendment, termination, 
        cancellation, nonrenewal, noncontinuation or causing a 
        resignation. "Good cause" shall not include the sale or purchase 
        of a brewer. "Good cause" shall include, but not be limited to, 
        the following: 
           (1) Revocation of the wholesaler's license to do business 
        in the state. 
           (2) Bankruptcy or insolvency of the wholesaler. 
           (3) Assignment for the benefit of creditors or similar 
        disposition of the assets of the wholesaler. 
           (4) Failure by the wholesaler to substantially comply, 
        without reasonable excuse or justification, with any reasonable 
        and material requirement imposed upon the wholesaler by the 
        brewer. the brewer: 
           (1) has satisfied the notice and opportunity to cure 
        requirements of section 325B.05; 
           (2) has acted in good faith; and 
           (3) has good cause for the cancellation, termination, 
        nonrenewal, discontinuance, or forced resignation. 
           Subd. 2.  [GOOD CAUSE.] For purposes of subdivision 1: 
           (a) "Good cause" includes, but is not limited to, the 
        following: 
           (1) revocation of the wholesaler's license under section 
        340A.304; 
           (2) the wholesaler's bankruptcy or insolvency; 
           (3) assignment of the assets of the wholesaler for the 
        benefit of creditors, or a similar disposition of the 
        wholesaler's assets; or 
           (4) a failure by the wholesaler to substantially comply, 
        without reasonable excuse or justification, with any reasonable 
        and material requirement imposed on the wholesaler by the 
        brewer, where the failure was discovered by the brewer not more 
        than one year before the date on which the brewer gave notice to 
        the wholesaler under section 325B.05. 
           (b) "Good cause" does not include the sale or purchase of a 
        brewer. 
           Sec. 4.  Minnesota Statutes 1992, section 325B.05, is 
        amended to read: 
           325B.05 [NOTICE OF INTENT TO TERMINATE.] 
           Except as provided in this section, a brewer shall provide 
        a wholesaler at least 90 days prior written notice of any intent 
        to amend, terminate, cancel or not renew any agreement.  The 
        notice shall state all the reasons for the intended amendment, 
        termination, cancellation or nonrenewal.  The wholesaler shall 
        have 90 days in which to rectify any claimed deficiency.  If the 
        deficiency shall be rectified within 90 days of notice, then the 
        proposed amendment, termination, cancellation or nonrenewal 
        shall be null and void and without legal effect.  The notice 
        provisions of this section shall not apply if the reason for the 
        amendment, termination, cancellation, or nonrenewal is: 
           (1) The bankruptcy or insolvency of the wholesaler. 
           (2) An assignment for the benefit of creditors or similar 
        disposition of the assets of the business. 
           (3) Revocation of the wholesaler's license. 
           (4) Conviction or a plea of guilty or no contest to a 
        charge of violating a law relating to the business that 
        materially affects the wholesaler's ability to remain in 
        business. 
           Subdivision 1.  [NOTICES; TIME LIMIT.] (a) Notwithstanding 
        any provision to the contrary in any agreement between a brewer 
        and a wholesaler, a brewer who intends to terminate, cancel, 
        discontinue, or refuse to renew an agreement with a wholesaler 
        must furnish written notice to that effect to the wholesaler not 
        less than 90 days before the effective date of the intended 
        action and must provide the wholesaler with a bona fide 
        opportunity to substantially cure any claimed deficiency within 
        the 90 days. 
           (b) The notice must be sent by certified mail and must 
        contain, at a minimum, (1) the effective date of the intended 
        action, and (2) a statement of the nature of the intended action 
        and the brewer's reasons therefor. 
           (c) In no event may a termination, cancellation, 
        discontinuance, or nonrenewal be effective until at least 90 
        days from the wholesaler's receipt of written notice under this 
        section, unless the wholesaler has consented in writing to a 
        shorter period. 
           Subd. 2.  [NOTICES; OTHER PROVISIONS.] Notwithstanding 
        subdivision 1 or section 325B.04, a brewer may terminate or 
        refuse to renew an agreement on not less than 15 days' written 
        notice to the wholesaler, upon any of the following occurrences: 
           (1) the bankruptcy or insolvency of the wholesaler; 
           (2) an assignment of the wholesaler's assets for the 
        benefit of creditors, or a similar disposition of those assets; 
           (3) revocation of the wholesaler's license under section 
        340A.304; or 
           (4) conviction or a plea of guilty or no contest to a 
        charge of violating any state or federal law, where the 
        violation materially affects the wholesaler's right to remain in 
        business.  A notice under this subdivision must meet the 
        requirements of subdivision 1, paragraph (b). 
           Sec. 5.  Minnesota Statutes 1992, section 325B.12, is 
        amended to read: 
           325B.12 [NO DISCRIMINATION.] 
           Subdivision 1.  [DISCRIMINATION PROHIBITED.] No brewer 
        shall discriminate among its wholesalers in any business 
        dealings including, but not limited to, the price of beer sold 
        to the wholesaler, unless the classification among its 
        wholesalers is based upon reasonable grounds.  Nothing in this 
        section shall be construed to prohibit the sale or offer of sale 
        of beer at a volume discount. 
           Subd. 2.  [SALES; REBATES.] No brewer may: 
           (1) sell or offer to sell any beer to any Minnesota 
        wholesaler at a price lower than the actual price offered to any 
        other Minnesota wholesaler for the same product; 
           (2) utilize any method, including but not limited to, a 
        sales promotion plan or program: 
           (i) that constitutes or results in a different offer being 
        made to wholesalers for the same product; 
           (ii) that relates in any way to the price being charged or 
        to be charged by a wholesaler to a retailer, including without 
        limitation, any arrangement whereby the wholesale price is 
        connected with any reduction from or addition to the 
        wholesaler's normal price to retail; or 
           (iii) that results in a fixed retail price predetermined by 
        a brewer; or 
           (3) utilize any rebate plan or program in connection with 
        the sale of beer to a Minnesota wholesaler, unless: 
           (i) the brewer pays rebates to a wholesaler, pursuant to a 
        rebate plan or program, within ten days after the wholesaler 
        provides the brewer with appropriate documentation as reasonably 
        required by the brewer; 
           (ii) the rebate plan or program guarantees that the brewer 
        will make a rebate payment no later than 45 days after the 
        initiation of a rebate plan or program, provided that a 
        wholesaler timely submits appropriate documentation as 
        reasonably required by a brewer; and 
           (iii) in the event of an audit, other examination, or claim 
        by a brewer regarding the propriety of rebate payments made to a 
        wholesaler, a brewer shall only be permitted to examine a 
        wholesaler's records going back one year from the date of the 
        audit, other examination, or claim and shall only be permitted 
        to seek reimbursement for rebate payments made to the wholesaler 
        during the one-year period. 
           Sec. 6.  Minnesota Statutes 1992, section 340A.101, 
        subdivision 13, is amended to read: 
           Subd. 13.  [HOTEL.] "Hotel" is an establishment where food 
        and lodging are regularly furnished to transients and which has: 
           (1) a resident proprietor or manager; 
           (2) a dining room serving the general public at tables and 
        having facilities for seating at least 30 guests at one time; 
        and 
           (3) (2) guest rooms in the following minimum numbers:  in 
        first class cities, 50; in second class cities, 25; in all other 
        cities and unincorporated areas, 10. 
           Sec. 7.  Minnesota Statutes 1992, section 340A.301, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FEES.] The annual fees for licenses under this 
        section are as follows: 
          (a) Manufacturers (except as provided 
              in clauses (b) and (c))                    $15,000 
              Duplicates                                 $ 3,000
          (b) Manufacturers of wines of not more
              than 25 percent alcohol by volume          $   500
          (c) Brewers other than those described
              in clause clauses (d) and (i)              $ 2,500
          (d) Brewers who also hold a retail on-sale
              license and who manufacture fewer than
              2,000 3,500 barrels of malt liquor in a year, 
              except as provided in subdivision 10, 
              the entire production of which is solely 
              for consumption on tap on the licensed 
              premises                                   $   500
          (e) Wholesalers (except as provided in
              clauses (f), (g), and (h))                 $15,000
              Duplicates                                 $ 3,000
          (f) Wholesalers of wines of not more
              than 25 percent alcohol by volume          $ 2,000
          (g) Wholesalers of intoxicating
              malt liquor                                $   600
              Duplicates                                 $    25
          (h) Wholesalers of 3.2 percent 
              malt liquor                                $    10
          (i) Brewers who manufacture fewer than
              2000 barrels of malt liquor in a year      $   150
           If a business licensed under this section is destroyed, or 
        damaged to the extent that it cannot be carried on, or if it 
        ceases because of the death or illness of the licensee, the 
        commissioner may refund the license fee for the balance of the 
        license period to the licensee or to the licensee's estate. 
           Sec. 8.  Minnesota Statutes 1992, 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 3.2 percent malt liquor license.  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 3.2 percent malt liquor license by a municipality for 
        a restaurant operated in or immediately adjacent to the place of 
        manufacture.  Malt liquor brewed by such a licensee may not be 
        removed from the licensed premises unless the malt liquor is 
        entered in a tasting competition where none of the malt liquor 
        so removed is sold.  
           (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. 9.  Minnesota Statutes 1992, section 340A.301, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [BREWERY-RESTAURANTS; PERMITS.] A licensed 
        brewer of malt liquor described in subdivision 6, clause (d), 
        may apply to the commissioner for a permit to manufacture more 
        than 3,500 barrels of malt liquor in a calendar year.  The 
        commissioner shall issue the permit if the commissioner 
        determines that (1) the brewer will manufacture at least 3,500 
        barrels of malt liquor in that year, and (2) all malt liquor 
        manufactured by the brewer will be consumed on the licensed 
        premises only, except as provided in subdivision 7, paragraph 
        (b).  The permit authorizes the permit holder to manufacture 
        more than 3,500 barrels of malt liquor in the year in which the 
        permit is issued, for consumption on the licensed premises 
        only.  A permit under this subdivision expires on December 31 of 
        the year of issuance. 
           Sec. 10.  Minnesota Statutes 1992, section 340A.307, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXCEPTIONS.] Nothing in this section applies to: 
           (a) (1) wine or malt liquor of any alcohol content; or 
           (b) (2) intoxicating liquor which is:  
           (1) (i) further distilled, refined, rectified, or blended 
        within the state; and 
           (2) (ii) bottled within the state and labeled with the 
        importer's own labels after importation into the state; or 
           (3) any brand of intoxicating liquor which is offered for 
        sale only in this state.  No such brand shall vary from an 
        existing or new brand sold in another state in any manner as to 
        brand name, age, or proof of the product. 
           Sec. 11.  Minnesota Statutes 1992, section 340A.308, is 
        amended to read: 
           340A.308 [PROHIBITED TRANSACTIONS.] 
           (a) 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 3.2 
        percent malt liquor at retail; or 
           (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. 12.  Minnesota Statutes 1992, section 340A.311, is 
        amended to read: 
           340A.311 [BRAND REGISTRATION.] 
           (a) A brand of intoxicating liquor or 3.2 percent malt 
        liquor 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 $30.  The fee for brand 
        registration renewal is $20.  The brand label of a brand of 
        intoxicating liquor or 3.2 percent malt liquor 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. 13.  [340A.319] [REPORTS BY BREWERS.] 
           The commissioner may require a brewer that manufactures 
        25,000 or fewer barrels of malt liquor in any year to report to 
        the commissioner, on a form and at the frequency the 
        commissioner prescribes, on the total amount of malt liquor 
        brewed by the brewer. 
           Sec. 14.  [340A.32] [TRANSPORTATION OF ALCOHOLIC 
        BEVERAGES.] 
           Subdivision 1.  [PERMIT REQUIRED.] No person other than the 
        holder of a valid retailer's identification card issued by the 
        commissioner may transport distilled spirits or wine intended 
        for resale to consumers without possessing a valid alcoholic 
        beverage transporter's permit issued under this section. 
           Subd. 2.  [ISSUANCE OF PERMIT.] (a) A person seeking a 
        transporter's permit must submit an application, on a form the 
        commissioner prescribes, that contains the applicant's name and 
        address, and if a corporation, the names and addresses of the 
        corporation's officers and such other information as the 
        commissioner deems necessary. 
           (b) A permit under this section is valid for one year.  The 
        annual fee for the permit is $20. 
           Subd. 3.  [SUSPENSION; REVOCATION.] The commissioner may 
        revoke, or suspend for up to 60 days, a permit under this 
        subdivision, or impose on the permit holder a civil fine of not 
        more than $2,000 for each violation, on a finding that the 
        permit holder has violated a provision of this chapter or a rule 
        of the commissioner.  A suspension or revocation is a contested 
        case under the administrative procedure act. 
           Subd. 4.  [PREMISES.] For purposes of inspection of 
        premises of transporter permit holders under section 340A.907, 
        "premises" includes any vehicle the transporter uses to 
        transport distilled spirits or wine. 
           Sec. 15.  Minnesota Statutes 1993 Supplement, 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) (2) 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; 
           (4) (3) a person not of good moral character and repute; or 
           (5) (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.  
           Sec. 16.  Minnesota Statutes 1992, 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, or hotel 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.  
        Notwithstanding section 340A.412, subdivision 8, a seasonal 
        license is valid for a period specified by the board, not to 
        exceed nine months.  Not more than one license may be issued for 
        any one premises during any consecutive 12-month period. 
           Sec. 17.  Minnesota Statutes 1992, section 340A.404, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TEMPORARY ON-SALE LICENSES.] The governing body 
        of a municipality may issue to a club or charitable, religious, 
        or other nonprofit organization in existence for at least three 
        years, or to a political committee registered under section 
        10A.14, a temporary license for the on-sale of intoxicating 
        liquor in connection with a social event within the municipality 
        sponsored by the licensee.  The license may authorize the 
        on-sale of intoxicating liquor for not more than three 
        consecutive days, and may authorize on-sales on premises other 
        than premises the licensee owns or permanently occupies.  The 
        license may provide that the licensee may contract for 
        intoxicating liquor catering services with the holder of a 
        full-year on-sale intoxicating liquor license issued by any 
        municipality.  The licenses are subject to the terms, including 
        a license fee, imposed by the issuing municipality.  Licenses 
        issued under this subdivision are subject to all laws and 
        ordinances governing the sale of intoxicating liquor except 
        section 340A.409 and those laws and ordinances which by their 
        nature are not applicable.  Licenses under this subdivision are 
        not valid unless first approved by the commissioner of public 
        safety. 
           A county under this section may issue a temporary license 
        only to a premises located in the unincorporated or unorganized 
        territory of the county. 
           Sec. 18.  Minnesota Statutes 1992, section 340A.405, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CITIES.] (a) A city other than a city of 
        the first class may issue with the approval of the commissioner, 
        an off-sale intoxicating liquor license to an exclusive liquor 
        store, or to a drugstore to which an off-sale license had been 
        issued on or prior to May 1, 1994.  
           (b) A city of the first class may issue an off-sale license 
        to an exclusive liquor store, a general food store to which an 
        off-sale license had been issued on August 1, 1989, or a 
        drugstore to which an off-sale license had been issued on or 
        prior to May 1, 1994.  
           Sec. 19.  Minnesota Statutes 1992, 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 an off-sale license to an 
        exclusive liquor store within that town, or a combination 
        off-sale and on-sale license to restaurants a restaurant 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 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. 20.  Minnesota Statutes 1992, section 340A.405, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TEMPORARY OFF-SALE LICENSES; WINE AUCTIONS.] (a) 
        The governing body of a city or county may issue a temporary 
        license for the off-sale of wine at an auction with the approval 
        of the commissioner.  A license issued under this subdivision 
        authorizes the sale of only vintage wine of a brand and vintage 
        that is not commonly being offered for sale by any wholesaler in 
        Minnesota.  The license may authorize the off-sale of wine for 
        not more than three consecutive days provided not more than 600 
        cases of wine are sold at any auction.  The licenses are subject 
        to the terms, including license fee, imposed by the issuing city 
        or county.  Licenses issued under this subdivision are subject 
        to all laws and ordinances governing the sale of intoxicating 
        liquor except section 340A.409 and those laws and ordinances 
        which by their nature are not applicable.  
           (b) As used in the subdivision, "vintage wine" means 
        bottled wine which is at least five years old.  
           Sec. 21.  Minnesota Statutes 1992, section 340A.410, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [TEMPORARY LICENSES; RESTRICTION ON NUMBER.] A 
        municipality may not issue more than three temporary licenses 
        for the sale of alcoholic beverages to any one organization or 
        registered political committee, or for any one location, within 
        a 12-month period.  This restriction applies to temporary 
        licenses issued under sections 340A.403, subdivision 2, and 
        340A.404, subdivision 10. 
           Sec. 22.  Minnesota Statutes 1992, section 340A.412, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LIMITATIONS ON ISSUANCE OF LICENSES TO ONE 
        PERSON OR PLACE.] (a) A municipality may not issue more than one 
        off-sale intoxicating liquor license to any one person or for 
        any one place. 
           (b) A municipality may not allow the same business name to 
        be used by more than one of its off-sale intoxicating liquor 
        licensees. 
           (c) For purposes of this subdivision, "person" means: 
           (1) a holder of an off-sale intoxicating liquor license; 
           (2) an officer, director, agent, or employee of a holder of 
        an off-sale intoxicating liquor license; or 
           (3) an affiliate of a holder of an off-sale intoxicating 
        liquor license, regardless of whether the affiliation is 
        corporate or by management, direction, or control. 
           Sec. 23.  Minnesota Statutes 1993 Supplement, section 
        340A.415, is amended to read: 
           340A.415 [LICENSE REVOCATION OR SUSPENSION; CIVIL PENALTY.] 
           The authority issuing any retail license or permit under 
        this chapter or the commissioner shall either suspend for up to 
        60 days or revoke the license or permit or impose a civil 
        penalty not to exceed $2,000 for each violation On a finding 
        that the license or permit holder has (1) sold alcoholic 
        beverages to another retail licensee for the purpose of resale, 
        (2) purchased alcoholic beverages from another retail licensee 
        for the purpose of resale, (3) conducted or permitted the 
        conduct of gambling on the licensed premises in violation of the 
        law, (4) failed to remove or dispose of alcoholic beverages when 
        ordered by the commissioner to do so under section 340A.508, 
        subdivision 3, or (5) failed to comply with an applicable 
        statute, rule, or ordinance relating to alcoholic beverages, the 
        commissioner or the authority issuing a retail license or permit 
        under this chapter may revoke the license or permit, suspend the 
        license or permit for up to 60 days, impose a civil penalty of 
        up to $2,000 for each violation, or impose any combination of 
        these sanctions.  No suspension or revocation takes effect until 
        the license or permit holder has been given 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 hearings.  Imposition of a penalty or 
        suspension by either the issuing authority or the commissioner 
        does not preclude imposition of an additional penalty or 
        suspension by the other so long as the total penalty or 
        suspension does not exceed the stated maximum.  
           Sec. 24.  Minnesota Statutes 1992, section 340A.416, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EFFECT OF ELECTION RESULTS.] If a majority of 
        persons voting on the referendum question the vote "against 
        license," the city may not issue intoxicating liquor licenses 
        until the results of the referendum have been reversed at a 
        subsequent election where the question has been submitted as 
        provided in this section. 
           Sec. 25.  [340A.418] [WINE TASTINGS.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section, 
        a "wine tasting" is an event of not more than four hours' 
        duration at which persons pay a fee or donation to participate, 
        and are allowed to consume wine by the glass without paying a 
        separate charge for each glass. 
           Subd. 2.  [TASTINGS AUTHORIZED.] (a) A charitable, 
        religious, or other nonprofit organization may conduct a wine 
        tasting on premises the organization owns or leases or has use 
        donated to it, or on the licensed premises of a holder of an 
        on-sale intoxicating liquor license that is not a temporary 
        license, if the organization holds a temporary on-sale 
        intoxicating liquor license under section 340A.404, subdivision 
        10, and complies with this section.  An organization holding a 
        temporary license may be assisted in conducting the wine tasting 
        by another nonprofit organization. 
           (b) An organization that conducts a wine tasting under this 
        section may use the net proceeds from the wine tasting only for: 
           (1) the organization's primary nonprofit purpose; or 
           (2) donation to another nonprofit organization assisting in 
        the wine tasting, if the other nonprofit organization uses the 
        donation only for that organization's primary nonprofit purpose. 
           (c) No wine at a wine tasting under this section may be 
        sold, or orders taken, for off-premise consumption. 
           (d) Notwithstanding any other law, an organization may 
        purchase or otherwise obtain wine for a wine tasting conducted 
        under this section from a wholesaler licensed to sell wine, and 
        the wholesaler may sell or give wine to an organization for a 
        wine tasting conducted under this section and may provide 
        personnel to assist in the wine tasting.  A wholesaler who sells 
        or gives wine to an organization for a wine tasting under this 
        section must deliver the wine directly to the location where the 
        wine tasting is conducted. 
           Sec. 26.  Minnesota Statutes 1992, 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 that when December 25 occurs on a Sunday 
        on-sales on that day are governed by subdivision 3. 
           Sec. 27.  [340A.5071] [COUPONS PROHIBITED.] 
           A retailer of alcoholic beverages may not accept as full or 
        partial payment for any product any coupons that are redeemed 
        directly or indirectly from a manufacturer or wholesaler of 
        alcoholic beverages. 
           Sec. 28.  Minnesota Statutes 1992, section 340A.907, is 
        amended to read: 
           340A.907 [INSPECTION.] 
           The commissioner of public safety or any duly authorized 
        employee may, at all reasonable hours, enter in and upon the 
        premises of any licensee or permit holder under this chapter to 
        inspect the premises and examine the books, papers, and records 
        of a manufacturer, wholesaler, importer, or retailer for the 
        purpose of determining whether the provisions of this chapter 
        are being complied with.  If the commissioner or any duly 
        authorized employee is denied free access or is hindered or 
        interfered with in making an inspection or examination, the 
        licensee or permit holder is subject to revocation pursuant to 
        section 340A.304 in the case of a wholesaler, manufacturer, or 
        importer, and section 340A.415 in the case of a retailer.  For a 
        holder of a temporary license under section 340A.403, 
        subdivision 2, or 340A.404, subdivision 10, the commissioner's 
        authority under this section extends for two years beyond the 
        expiration of the temporary license or the permit. 
           Sec. 29.  [ST. LOUIS COUNTY; OFF-SALE LICENSE.] 
           Notwithstanding Minnesota Statutes, section 340A.405, 
        subdivision 2, paragraph (c), the St. Louis county board may 
        issue one off-sale intoxicating liquor license to a premises 
        located in Embarrass township.  
           Sec. 30.  [ST. PAUL; LICENSE AUTHORIZED.] 
           (a) Notwithstanding any state or local law or charter 
        provision, the city of St. Paul may issue an on-sale license to 
        the College of St. Catherine catering service for the sale of 
        wine and 3.2 percent malt liquor at O'Shaughnessy auditorium and 
        St. Joseph's hall on the campus of the College of St. 
        Catherine.  The license may only authorize the licensee to 
        dispense wine and 3.2 percent malt liquor to persons attending 
        social events or performances at O'Shaughnessy auditorium or St. 
        Joseph's hall. 
           (b) Notwithstanding any state or local law or charter 
        provision, the city of St. Paul may issue an on-sale license to 
        the catering service that serves the University of St. Thomas 
        for the sale of wine and 3.2 percent malt liquor at the Murray 
        Herrick Campus Center and the O'Shaughnessy Education Center on 
        the campus of the University of St. Thomas.  The license may 
        only authorize the licensee to dispense wine and 3.2 percent 
        malt liquor to persons attending events at the Murray Herrick 
        Campus Center or the O'Shaughnessy Education Center. 
           (c) The licenses authorized by this section are in addition 
        to any other licenses authorized by law.  All provisions of 
        Minnesota Statutes, chapter 340A, not inconsistent with this 
        section, apply to the licenses authorized by this section. 
           Sec. 31.  [EDEN PRAIRIE; ON-SALE LICENSES.] 
           The Eden Prairie city council may issue eight on-sale 
        intoxicating liquor licenses in addition to the number 
        authorized by Minnesota Statutes, section 340A.413.  The 
        licenses are subject to all other provisions of Minnesota 
        Statutes, chapter 340A. 
           Sec. 32.  [EAGAN; LICENSES AUTHORIZED.] 
           The city of Eagan may issue not more than three on-sale 
        intoxicating liquor licenses in addition to the number 
        authorized by Minnesota Statutes, section 340A.413.  All 
        provisions of Minnesota Statutes, chapter 340A, not inconsistent 
        with this section, apply to the licenses authorized by this 
        section. 
           Sec. 33.  [CLAY COUNTY; OFF-SALE LICENSE.] 
           Notwithstanding any state or local law or charter 
        provision, the Clay county board may issue one off-sale 
        intoxicating liquor license to a premises located in Elkton 
        township.  The license is subject to all other provisions of 
        Minnesota Statutes, chapter 340A. 
           Sec. 34.  [BURNSVILLE; ADDITIONAL LICENSES.] 
           The city of Burnsville may issue up to three on-sale 
        intoxicating liquor licenses in addition to the number 
        authorized by law.  All provisions of Minnesota Statutes, 
        chapter 340A, not inconsistent with this section apply to the 
        licenses authorized by this section. 
           Sec. 35.  [EFFECTIVE DATE.] 
           Sections 2, 7, 8, 9, 10, 18, and 25 are effective the day 
        following final enactment.  Section 29 is effective on approval 
        by the St. Louis county board and compliance with Minnesota 
        Statutes, section 645.021, subdivision 3.  Section 30 is 
        effective on approval by the St. Paul city council and 
        compliance with section 645.021, subdivision 3.  Section 31 is 
        effective on approval by the Eden Prairie city council and 
        compliance with section 645.021, subdivision 3.  Section 32 is 
        effective on approval by the Eagan city council and compliance 
        with section 645.021, subdivision 3.  Section 33 is effective on 
        approval by the Clay county board and compliance with section 
        645.021, subdivision 3.  Section 34 is effective on approval by 
        the Burnsville city council and compliance with sections 
        645.021, subdivision 3. 
           Presented to the governor May 5, 1994 
           Signed by the governor May 9, 1994, 4:52 p.m.