Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 418-S.F.No. 2116 
                  An act relating to alcoholic beverages; modifying 
                  eligibility for manufacturer and wholesaler licenses; 
                  clarifying requirements for selling or furnishing 
                  alcoholic beverages; allowing bed and breakfast 
                  facilities to furnish wine to guests without a license 
                  under certain circumstances; abolishing state licenses 
                  for importation of sacramental wine; exempting certain 
                  types of wine tastings from statutory restrictions; 
                  allowing off-sale retailers to offer samples of 
                  distilled spirits; allowing brewers to furnish beer 
                  directly to retailers for tastings; allowing off-sale 
                  retailers to sell distilled spirits in 50 milliliter 
                  bottles; allowing on-sale retailers to prohibit the 
                  carrying of alcoholic beverages onto the licensed 
                  premises; specifying items that may be sold in 
                  municipal liquor stores; removing references to 
                  nonintoxicating malt liquor from statute, rules, and 
                  local licenses; authorizing on-sale licenses for tour 
                  boats on the St. Croix and Mississippi rivers; 
                  requiring establishments selling alcoholic beverages 
                  to post certain signs; directing commissioners of 
                  public safety and health to design the signs; 
                  providing for division of tour boat license fees; 
                  authorizing additional on-sale licenses in West St. 
                  Paul and Eagan; authorizing seasonal on-sale license 
                  in Wadena; repealing special law restricting on-sale 
                  licenses in Thief River Falls; amending Minnesota 
                  Statutes 1994, sections 340A.301, subdivision 2; 
                  340A.316; 340A.404, subdivision 8; 340A.408, 
                  subdivision 4; 340A.410, by adding a subdivision; 
                  340A.413, subdivision 4; 340A.418, subdivision 2; 
                  340A.510; and 340A.601, subdivision 1; Minnesota 
                  Statutes 1995 Supplement, sections 340A.401; and 
                  340A.404, subdivision 10; Laws 1994, chapter 611, 
                  section 32; proposing coding for new law in Minnesota 
                  Statutes, chapter 340A; repealing Minnesota Statutes 
                  1994, sections 144.3871; and 340A.410, subdivision 4a; 
                  Laws 1974, chapter 452. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 340A.301, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERSONS ELIGIBLE.] Licenses under this section 
        may be issued only to a person who: 
           (1) is a citizen of the United States or a resident alien; 
           (2) is of good moral character and repute; 
           (3) (2) is 21 years of age or older; 
           (4) (3) has not had a license issued under this chapter 
        revoked within five years of the date of 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; and 
           (5) (4) has not been convicted within five years of the 
        date of license application of a felony, or of a willful 
        violation of a federal or state law, or local ordinance 
        governing the manufacture, sale, distribution, or possession for 
        sale or distribution of alcoholic beverages. 
           Sec. 2.  Minnesota Statutes 1994, section 340A.316, is 
        amended to read: 
           340A.316 [SACRAMENTAL WINE.] 
           The commissioner may issue licenses for the importation and 
        sale of wine exclusively for sacramental purposes.  The holder 
        of a sacramental wine license may sell wine only to a rabbi, 
        priest, or minister of a church, or other established religious 
        organization, or individual members of a religious organization 
        who conduct ceremonies in their homes, if the purchaser 
        certifies in writing that the wine will be used exclusively for 
        sacramental purposes in religious ceremonies.  The annual fee 
        for a sacramental wine license is $50.  
           A rabbi, priest, or minister of a church or other 
        established religious organization may import wine exclusively 
        for sacramental purposes without a license.  
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        340A.401, is amended to read: 
           340A.401 [LICENSE REQUIRED.] 
           Except as provided in this chapter, no person may directly 
        or indirectly, on any pretense or by any device, sell, barter, 
        keep for sale, charge for possession, or otherwise dispose of 
        alcoholic beverages as part of a commercial transaction without 
        having obtained a the required license or permit. 
           Sec. 4.  [340A.4011] [BED AND BREAKFAST FACILITIES; WHEN 
        LICENSE NOT REQUIRED.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section 
        "bed and breakfast facility" means a place of lodging that (1) 
        provides not more than eight rooms for rent to no more than 20 
        guests at a time, (2) is located on the same property as the 
        owner's personal residence, (3) provides no meals, other than 
        breakfast served to persons who rent rooms, and (4) was 
        originally built and occupied as, or was converted to, a 
        single-family residence prior to being used as a place of 
        lodging. 
           Subd. 2.  [LICENSE NOT REQUIRED.] (a) Notwithstanding 
        section 340A.401, no license under this chapter is required for 
        a bed and breakfast facility to provide at no additional charge 
        to a person renting a room at the facility not more than two 
        glasses per day each containing not more than four fluid ounces 
        of wine.  Wine so furnished may be consumed only on the premises 
        of the bed and breakfast facility. 
           (b) A bed and breakfast facility may furnish wine under 
        paragraph (a) only if the facility is registered with the 
        commissioner.  Application for such registration must be on a 
        form the commissioner provides.  The commissioner may revoke 
        registration under this paragraph for any violation of this 
        chapter or a rule adopted under this chapter. 
           Sec. 5.  Minnesota Statutes 1994, section 340A.404, 
        subdivision 8, is amended to read: 
           Subd. 8.  [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI 
        RIVER TOUR BOATS.] (a) The commissioner may issue an on-sale 
        intoxicating liquor license to a person regularly engaged, on an 
        annual or seasonal basis, in the business of offering tours by 
        boat on Lake Superior and adjacent bays, the St. Croix river, 
        and the Mississippi river.  The license shall authorize the sale 
        of intoxicating liquor between May 1 and October 1 for 
        consumption on the boat while underway or attached to a dock or 
        other mooring.  No license may be issued unless each boat used 
        in the tour business regularly sells meals in the place where 
        intoxicating liquor is sold. 
           (b) All sales of intoxicating liquor made on a boat while 
        it is attached to a dock or other mooring are subject to any 
        restrictions on the sale of liquor prescribed by the governing 
        body of the city where the boat is attached, or of a county when 
        it is attached outside a city.  A governing body may prohibit 
        liquor sales within its jurisdiction but may not require an 
        additional license, or require a fee or occupation tax, for the 
        sales.  
           (c) If a boat is moored for a period of at least three 
        consecutive months, the city may require the boat to obtain an 
        on-sale intoxicating liquor license from the city, and the fee 
        charged for the license must not exceed one-half the fee charged 
        for a comparable annual on-sale intoxicating liquor license. 
           Sec. 6.  Minnesota Statutes 1995 Supplement, 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 four 
        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 sections 340A.409 and 340A.504, subdivision 3, paragraph 
        (d), 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. 7.  Minnesota Statutes 1994, section 340A.408, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LAKE SUPERIOR, ST. CROIX RIVER, AND MISSISSIPPI 
        RIVER TOUR BOATS; COMMON CARRIERS.] (a) The annual license fee 
        for licensing of Lake Superior, St. Croix river, and Mississippi 
        river tour boats under section 340A.404, subdivision 8, shall be 
        $1,000.  The commissioner shall transmit one-half of this fee to 
        the governing body of the city that is the home port of the tour 
        boat, or to the county in which the home port is located if the 
        home port is outside a city. 
           (b) The annual license fee for common carriers licensed 
        under section 340A.407 is: 
           (1) $50 for 3.2 percent malt liquor, and $20 for a 
        duplicate license; and 
           (2) $200 for intoxicating liquor, and $20 for a duplicate 
        license. 
           Sec. 8.  Minnesota Statutes 1994, section 340A.410, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [NOTICE POSTING.] (a) A premises licensed for 
        the retail sale of alcoholic beverages and a municipal liquor 
        store must post and maintain in a conspicuous place within the 
        licensed premises clearly visible to consumers:  one sign 14-1/2 
        inches wide by 8 inches high as designed by the commissioners of 
        health and public safety, which incorporates the following 
        information:  (1) the penalties of driving while under the 
        influence of alcohol; (2) penalties for serving alcoholic 
        beverages to a person who is obviously intoxicated or under 21 
        years of age; and (3) a warning statement regarding drinking 
        alcohol while pregnant. 
           (b) The commissioners of health and public safety shall 
        design a sign that complies with this subdivision and shall make 
        the sign available for reproduction.  A retail licensee or 
        municipal liquor store may not modify the sign design, but may 
        modify the color.  
           Sec. 9.  Minnesota Statutes 1994, section 340A.413, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXCLUSIONS FROM LICENSE LIMITS.] On-sale 
        intoxicating liquor licenses may be issued to the following 
        entities by a city, in addition to the number authorized by this 
        section: 
           (1) clubs, or congressionally chartered veterans 
        organizations; 
           (2) restaurants located at a racetrack licensed under 
        chapter 240; 
           (3) establishments that are issued licenses to sell wine 
        under section 340A.404, subdivision 5; and 
           (4) Lake Superior tour boats that are issued licenses under 
        section 340A.404, subdivision 8; and 
           (5) theaters that are issued licenses under section 
        340A.404, subdivision 2. 
           Sec. 10.  Minnesota Statutes 1994, section 340A.418, 
        subdivision 2, is amended to read: 
           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 off-premises 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. 
           (e) This section does not prohibit or restrict a wine 
        tasting that is: 
           (1) located on on-sale premises where no charitable 
        organization is participating; or 
           (2) located on on-sale premises where the proceeds are for 
        a designated charity but where the tasting is primarily for 
        educational purposes. 
           Sec. 11.  Minnesota Statutes 1994, section 340A.510, is 
        amended to read: 
           340A.510 [SAMPLES.] 
           Subdivision 1.  [SAMPLES AUTHORIZED.] Off-sale licenses and 
        municipal liquor stores may provide samples of malt liquor, 
        wine, liqueurs, and cordials, and distilled spirits which the 
        licensee or municipal liquor store currently has in stock and is 
        offering for sale to the general public without obtaining an 
        additional license, provided the wine, liqueur, and cordial, and 
        distilled spirits samples are dispensed at no charge and 
        consumed on the licensed premises during the permitted hours of 
        off-sale in a quantity less than 100 milliliters of malt liquor 
        per variety per customer, 50 milliliters of wine per variety per 
        customer and, 25 milliliters of liqueur or cordial, and 15 
        milliliters of distilled spirits per variety per customer. 
           Subd. 2.  [MALT LIQUOR FURNISHED FOR SAMPLING.] (a) 
        Notwithstanding section 340A.308, with respect only to sampling 
        authorized under subdivision 1, a brewer may furnish at no cost 
        to an off-sale retailer malt liquor the brewer manufactures if: 
           (1) the malt liquor is dispensed by the retailer only for 
        tastings authorized under subdivision 1; 
           (2) the retailer makes available for return to the brewer 
        any unused malt liquor and empty containers; 
           (3) the samples are dispensed by an employee of the 
        retailer, or by a sampling service retained by the retailer and 
        not affiliated directly or indirectly with a brewer or malt 
        liquor wholesaler; 
           (4) the brewer furnishes not more than three cases of malt 
        liquor to the retailer for each sampling; 
           (5) each sampling continues for not more than eight hours; 
           (6) the brewer has furnished malt liquor for not more than 
        five samplings for any retailer in any calendar year; 
           (7) the brewer delivers the malt liquor for the sampling to 
        its exclusive wholesaler for that malt liquor; 
           (8) the brewer has at least seven days before the sampling 
        filed with the commissioner, on a form the commissioner 
        prescribes, written notice of intent to furnish malt liquor for 
        the sampling, which contains (i) the name and address of the 
        retailer conducting the sampling, (ii) the amount of malt liquor 
        being furnished by the brewer, (iii) the number of times the 
        brewer has furnished malt liquor to the retailer in the calendar 
        year in which the notice is filed, (iv) the date and time of the 
        sampling, (v) the exclusive wholesaler to whom the brewer will 
        deliver the malt liquor, and (vi) a statement by the brewer to 
        the effect that to the brewer's knowledge all requirements of 
        this section have been or will be complied with; and 
           (9) the commissioner has not notified the brewer filing the 
        notice under clause (8) that the commissioner disapproves the 
        notice. 
           (b) For purposes of this subdivision "retailer" means a 
        licensed off-sale retailer of alcoholic beverages and a 
        municipal liquor store that sells at off-sale. 
           Sec. 12.  [340A.511] [CERTAIN SIZES MAY BE SOLD.] 
           An off-sale retailer of intoxicating liquor may sell 
        distilled spirits in bottles of 50 milliliters. 
           Sec. 13.  [340A.512] [CONTAINERS BROUGHT INTO PREMISES.] 
           A licensed retailer of alcoholic beverages may prohibit any 
        person from bringing into the licensed premises any container of 
        alcoholic beverages, or from consuming from such a container on 
        the licensed premises, without the licensee's permission. 
           Sec. 14.  Minnesota Statutes 1994, section 340A.601, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] A city having a population of 
        not more than 10,000 may establish, own, and operate a municipal 
        liquor store which may sell at retail intoxicating liquor, 3.2 
        percent malt liquor, tobacco products, ice, soft drinks, 
        beverages for mixing intoxicating liquor, and food for 
        consumption on the premises alcoholic beverages and (1) in the 
        case of a municipal liquor store that sells at off-sale only, 
        all items that may lawfully be sold in an exclusive liquor store 
        under section 340A.412, subdivision 14, or (2) in the case of a 
        municipal liquor store that sells at on-sale only, or at on- and 
        off-sale, any item that may lawfully be sold in an establishment 
        with an on-sale intoxicating liquor license.  A municipal liquor 
        store may also offer recorded or live entertainment and make 
        available coin-operated amusement devices. 
           Sec. 15.  Laws 1994, chapter 611, section 32, is amended to 
        read: 
           Sec. 32.  [EAGAN; LICENSES AUTHORIZED.] 
           The city of Eagan may issue not more than three eight 
        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. 16.  [WEST ST. PAUL; LICENSES AUTHORIZED.] 
           Notwithstanding any other law, the city of West St. Paul 
        may issue not more than 18 on-sale intoxicating liquor licenses. 
        All provisions of Minnesota Statutes, chapter 340A, not 
        inconsistent with this section, apply to the licenses authorized 
        by this section. 
           Sec. 17.  [WADENA; SEASONAL LICENSES.] 
           Notwithstanding any other law, the city of Wadena may issue 
        one seasonal on-sale intoxicating liquor license in addition to 
        the number of on-sale intoxicating liquor licenses authorized by 
        law.  The license authorized by this section is valid for a 
        period to be determined by the city, not to exceed nine months.  
        Not more than one license may be issued under this section for 
        any one premise during any consecutive 12-month period.  All 
        provisions of Minnesota Statutes, chapter 340A, not inconsistent 
        with this section, apply to the license authorized by this 
        section. 
           Sec. 18.  [REPEALER.] 
           Minnesota Statutes 1994, sections 144.3871; and 340A.410, 
        subdivision 4a, are repealed.  Laws 1974, chapter 452, is 
        repealed. 
           Sec. 19.  [EFFECTIVE DATE.] 
           Sections 4 to 7, 9, and 11 to 14 are effective the day 
        following final enactment.  Section 15 is effective on approval 
        by the Eagan city council and compliance with Minnesota 
        Statutes, section 645.021.  Section 16 is effective on approval 
        by the West St. Paul city council and compliance with Minnesota 
        Statutes, section 645.021.  Section 17 is effective on approval 
        by the Wadena city council and compliance with Minnesota 
        Statutes, section 645.021. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 2, 1996, 12:47 p.m.