Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes