Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1996, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes