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Office of the Revisor of Statutes

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

                            CHAPTER 129-S.F.No. 277 
                  An act relating to alcoholic beverages; providing for 
                  permits for alcoholic beverage manufacturer 
                  warehouses, central distribution centers, or holding 
                  facilities; allowing a municipality to authorize a 
                  holder of an on-sale intoxicating liquor license to 
                  dispense intoxicating liquor at community festivals; 
                  allowing uniform licensing periods for holders of 
                  multiple on-sale licenses; modifying liability 
                  insurance requirements for liquor retailers; modifying 
                  shipping restrictions for certain wineries; allowing 
                  municipalities to authorize on-sale of 3.2 percent 
                  malt liquor at 10 a.m. on Sundays; authorizing the 
                  sale of intoxicating liquor at professional athletic 
                  events in the St. Paul civic center; authorizing the 
                  issuance of intoxicating liquor licenses to the 
                  division of parks and recreation of the city of St. 
                  Paul; authorizing the city of Moorhead to issue 
                  additional on-sale licenses; modifying time of day 
                  restrictions for the off-sale of intoxicating liquor 
                  in municipal liquor stores in certain cities; 
                  authorizing the city of Spring Lake Park to issue an 
                  additional on-sale license; consolidating divisions in 
                  the department of public safety; providing civil and 
                  criminal penalties; amending Minnesota Statutes 1996, 
                  sections 16B.54, subdivision 2; 43A.34, subdivision 4; 
                  299A.02, subdivisions 1, 2, and 3; 299L.01, 
                  subdivisions 1 and 2; 299L.02, subdivisions 4 and 5; 
                  299L.03, subdivisions 1, 5, and 7; 340A.201; 340A.404, 
                  subdivision 4, and by adding a subdivision; 340A.409, 
                  subdivisions 1 and 4; 340A.417; and 340A.504, 
                  subdivision 3; Laws 1969, chapter 783, section 1, 
                  subdivision 1, as amended; and Laws 1990, chapter 554, 
                  section 19; proposing coding for new law in Minnesota 
                  Statutes, chapter 340A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                         ALCOHOLIC BEVERAGE REGULATION
           Section 1.  [340A.3021] [IMPORTATION RESTRICTIONS.] 
           Subdivision 1.  [DELIVERY TO WHOLESALER ONLY.] (a) No 
        person may consign, ship, or deliver alcoholic beverages to any 
        place in Minnesota except to a licensed wholesaler's warehouse, 
        if the alcoholic beverages: 
           (1) were manufactured outside Minnesota; and 
           (2) have not previously been unloaded into a licensed 
        wholesaler's warehouse in Minnesota. 
           (b) No person may ship or consign into Minnesota any 
        alcoholic beverages manufactured outside the state unless the 
        alcoholic beverages are continuously in the possession of a 
        motor carrier of property as defined in section 221.011, 
        subdivision 47, or a common carrier as defined in section 
        218.011, subdivision 2, or are carried in a motor vehicle owned, 
        leased, or rented by a wholesaler licensed under this chapter, 
        between the time the alcoholic beverages are introduced into 
        Minnesota and the time they are unloaded into a licensed 
        wholesaler's warehouse. 
           Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
           (1) alcoholic beverages passing through Minnesota in 
        interstate commerce; 
           (2) alcoholic beverages imported into Minnesota by 
        individuals for personal use in the amounts permitted under 
        section 297C.09 or 340A.417; and 
           (3) a holder of a manufacturer's warehouse permit. 
           Subd. 3.  [CONFORMITY WITH FEDERAL AND STATE 
        REGULATIONS.] No manufacturer, importer, or wholesaler licensed 
        under this chapter may introduce into Minnesota or sell in 
        Minnesota any bottle or other container containing alcoholic 
        beverages unless the alcoholic beverages are packaged, labeled, 
        and sold in conformity with all applicable federal and state 
        regulations. 
           Subd. 4.  [SOLICITATIONS PROHIBITED.] No person may send or 
        mail, or cause to be sent or mailed any letter, postcard, 
        circular, catalog, pamphlet, or similar publication for delivery 
        into Minnesota that is intended to solicit an order for 
        alcoholic beverages to be shipped to any location into Minnesota 
        other than a licensed wholesaler's warehouse. 
           Subd. 5.  [CAUSE OF ACTION.] In addition to any penalties 
        provided in this chapter, a person who is adversely affected by 
        a violation of this section may bring an action in a court of 
        appropriate jurisdiction to seek damages or injunctive relief.  
        On a finding by the court that a person has violated or is 
        violating this section, the court may enjoin the violation or 
        violations.  Any person licensed under this chapter is presumed 
        to be adversely affected by a violation of this section. 
           Sec. 2.  [340A.3055] [MANUFACTURER'S WAREHOUSE PERMIT.] 
           Subdivision 1.  [PERMIT REQUIRED.] No brewer, malt liquor 
        manufacturer, or intoxicating liquor manufacturer may import 
        alcoholic beverages to a central warehouse, central distribution 
        center, or holding area in Minnesota that the brewer or 
        manufacturer owns or leases unless the brewer or manufacturer 
        has obtained from the commissioner a manufacturer's warehouse 
        permit for the facility.  A manufacturer's warehouse permit 
        allows a brewer or manufacturer to import alcoholic beverages 
        for storage at the facility for which the permit is issued.  No 
        person other than a licensed wholesaler, or a motor carrier of 
        property as defined in section 221.011, subdivision 47, or a 
        common carrier as defined in section 218.011, subdivision 2, 
        acting on behalf of a brewer, malt liquor manufacturer, 
        intoxicating liquor manufacturer, or licensed wholesaler, may 
        accept delivery from or pick up alcoholic beverages from the 
        facility.  A licensed wholesaler may distribute alcoholic 
        beverages only from the wholesaler's warehouse. 
           Subd. 2.  [ELIGIBILITY.] A permit under this section may be 
        issued only to a brewer, malt liquor manufacturer, or 
        intoxicating liquor manufacturer: 
           (1) whose manufacturing facility or facilities are located 
        outside Minnesota; and 
           (2) who holds a valid importer's license under section 
        340A.302. 
           Subd. 3.  [FEE.] The annual fee for a permit under this 
        section is $1,000. 
           Subd. 4.  [RESTRICTION ON SALE AND DELIVERIES.] A holder of 
        a permit under this section may sell alcoholic beverages stored 
        in a facility to which a permit has been issued under this 
        section only to: 
           (1) a wholesaler licensed under this chapter; 
           (2) a wholesaler licensed in another state; or 
           (3) an out-of-state or out-of-country entity that sells 
        alcoholic beverages at wholesale or retail. 
           Subd. 5.  [REPORTS.] A holder of a permit under this 
        section must report monthly to the commissioner of revenue, in a 
        form and at a time the commissioner prescribes: 
           (1) all alcoholic beverages imported into Minnesota and 
        delivered to the permit holder's facility; and 
           (2) all sales of alcoholic beverages made from the facility.
        Reports to the commissioner of revenue under this subdivision 
        shall remain confidential unless a manufacturer authorizes the 
        release of a report. 
           Sec. 3.  Minnesota Statutes 1996, section 340A.404, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR 
        CULTURAL FACILITIES; COMMUNITY FESTIVALS.] (a) The governing 
        body of a municipality may authorize a holder of a retail 
        on-sale intoxicating liquor license issued by the municipality 
        or by an adjacent municipality to dispense intoxicating liquor 
        at any convention, banquet, conference, meeting, or social 
        affair conducted on the premises of a sports, convention, or 
        cultural facility owned by the municipality or instrumentality 
        thereof having independent policy making and appropriating 
        authority and located within the municipality.  The licensee 
        must be engaged to dispense intoxicating liquor at an event held 
        by a person or organization permitted to use the premises, and 
        may dispense intoxicating liquor only to persons attending the 
        event.  The licensee may not dispense intoxicating liquor to any 
        person attending or participating in an amateur athletic event 
        held on the premises. 
           (b) The governing body of a municipality may authorize a 
        holder of a retail on-sale intoxicating liquor license issued by 
        the municipality to dispense intoxicating liquor off premises at 
        a community festival held within the municipality.  The 
        authorization shall specify the area in which the intoxicating 
        liquor must be dispensed and consumed, and shall not be issued 
        unless the licensee demonstrates that it has liability insurance 
        as prescribed by section 340A.409 to cover the event. 
           Sec. 4.  Minnesota Statutes 1996, section 340A.404, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [HOLDERS OF MULTIPLE ON-SALE LICENSES; UNIFORM 
        LICENSING PERIODS.] Notwithstanding any local ordinance or other 
        law, a local government unit may adjust the licensing period for 
        any holder of multiple on-sale alcoholic beverage licenses in 
        the state, upon request of the licensee.  The local government 
        unit may charge a fee for an adjustment of the licensing period. 
           Sec. 5.  Minnesota Statutes 1996, section 340A.409, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSURANCE REQUIRED.] No retail license may 
        be issued, maintained or renewed unless the applicant 
        demonstrates proof of financial responsibility with regard to 
        liability imposed by section 340A.801.  The issuing authority 
        must submit to the commissioner the applicant's proof of 
        financial responsibility.  This subdivision does not prohibit a 
        local unit of government from requiring higher insurance or bond 
        coverages, or a larger deposit of cash or securities.  The 
        minimum requirement for proof of financial responsibility may be 
        given by filing: 
           (1) a certificate that there is in effect for the license 
        period an insurance policy issued by an insurer required to be 
        licensed under section 60A.07, subdivision 4, or by an insurer 
        recognized as an eligible surplus lines carrier pursuant to 
        section 60A.206 or pool providing at least $50,000 of coverage 
        because of bodily injury to any one person in any one 
        occurrence, $100,000 because of bodily injury to two or more 
        persons in any one occurrence, $10,000 because of injury to or 
        destruction of property of others in any one occurrence, $50,000 
        for loss of means of support of any one person in any one 
        occurrence, and $100,000 for loss of means of support of two or 
        more persons in any one occurrence; 
           (2) a bond of a surety company with minimum coverages as 
        provided in clause (1); or 
           (3) a certificate of the state treasurer that the licensee 
        has deposited with the state treasurer $100,000 in cash or 
        securities which may legally be purchased by savings banks or 
        for trust funds having a market value of $100,000. 
           This subdivision does not prohibit an insurer from 
        providing the coverage required by this subdivision in 
        combination with other insurance coverage. 
           An annual aggregate policy limit for dram shop insurance of 
        not less than $300,000 per policy year may be included in the 
        policy provisions. 
           A liability insurance policy required by this section must 
        provide that it may not be canceled for: 
           (1) any cause, except for nonpayment of premium, by either 
        the insured or the insurer unless the canceling party has first 
        given 30 days' notice in writing to the issuing authority of 
        intent to cancel the policy; and 
           (2) nonpayment of premium unless the canceling party has 
        first given ten days' notice in writing to the issuing authority 
        of intent to cancel the policy. 
           Sec. 6.  Minnesota Statutes 1996, section 340A.409, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INSURANCE NOT REQUIRED.] Subdivision 1 does not 
        apply to licensees who by affidavit establish that: 
           (1) they are on-sale 3.2 percent malt liquor licensees with 
        sales of less than $10,000 $25,000 of 3.2 percent malt liquor 
        for the preceding year; 
           (2) they are off-sale 3.2 percent malt liquor licensees 
        with sales of less than $20,000 $50,000 of 3.2 percent malt 
        liquor for the preceding year; 
           (3) they are holders of on-sale wine licenses with sales of 
        less than $10,000 $25,000 for wine for the preceding year; or 
           (4) they are holders of temporary wine licenses issued 
        under law.  
           Sec. 7.  Minnesota Statutes 1996, section 340A.417, is 
        amended to read: 
           340A.417 [SHIPMENTS INTO MINNESOTA.] 
           (a) Notwithstanding section 297C.09 or any provision of 
        this chapter, a winery licensed in a state which affords 
        Minnesota wineries an equal reciprocal shipping privilege, or a 
        winery located in Minnesota, may ship, for personal use and not 
        for resale, not more than two cases of wine, containing a 
        maximum of nine liters per case, in any calendar year to any 
        resident of Minnesota age 21 or over.  Delivery of a shipment 
        under this section may not be deemed a sale in this state.  
           (b) The shipping container of any wine sent into or out of 
        Minnesota under this section must be clearly labeled to indicate 
        that the package cannot be delivered to a person under the age 
        of 21 years.  
           (c) No person may (1) advertise shipments authorized under 
        this section, or (2) by advertisement or otherwise, solicit 
        shipments authorized by this section, or (3) accept orders for 
        shipments authorized by this section by use of the Internet.  No 
        shipper located outside Minnesota may advertise such interstate 
        reciprocal wine shipments in Minnesota.  
           (d) It is not the intent of this section to impair the 
        distribution of wine through distributors or importing 
        distributors, but only to permit shipments of wine for personal 
        use. 
           (e) No criminal penalty may be imposed on a person for a 
        violation of this section other than a violation described in 
        paragraph (f) or (g).  Whenever it appears to the commissioner 
        that any person has engaged in any act or practice constituting 
        a violation of this section, and the violation is not within two 
        years of any previous violation of this section, the 
        commissioner shall issue and cause to be served upon the person 
        an order requiring the person to cease and desist from violating 
        this section.  The order must give reasonable notice of the 
        rights of the person to request a hearing and must state the 
        reason for the entry of the order.  Unless otherwise agreed 
        between the parties, a hearing shall be held not later than 
        seven days after the request for the hearing is received by the 
        commissioner after which and within 20 days after the receipt of 
        the administrative law judge's report and subsequent exceptions 
        and argument, the commissioner shall issue an order vacating the 
        cease and desist order, modifying it, or making it permanent as 
        the facts require.  If no hearing is requested within 30 days of 
        the service of the order, the order becomes final and remains in 
        effect until modified or vacated by the commissioner.  All 
        hearings shall be conducted in accordance with the provisions of 
        chapter 14.  If the person to whom a cease and desist order is 
        issued fails to appear at the hearing after being duly notified, 
        the person shall be deemed in default, and the proceeding may be 
        determined against the person upon consideration of the cease 
        and desist order, the allegations of which may be deemed to be 
        true. 
           (f) Any person who violates this section within two years 
        of a violation for which a cease and desist order was issued 
        under paragraph (e), is guilty of a misdemeanor. 
           (g) Any person who commits a third or subsequent violation 
        of this section, including a violation for which a cease and 
        desist order was issued under paragraph (c), within any 
        subsequent two-year period is guilty of a gross misdemeanor. 
           Sec. 8.  Minnesota Statutes 1996, section 340A.504, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 
        A restaurant, club, bowling center, or hotel with a seating 
        capacity for at least 30 persons and which holds an on-sale 
        intoxicating liquor license may sell intoxicating liquor for 
        consumption on the premises in conjunction with the sale of food 
        between the hours of 12:00 noon on Sundays and 1:00 a.m. on 
        Mondays. 
           (b) The governing body of a municipality may after one 
        public hearing by ordinance permit a restaurant, hotel, bowling 
        center, or club to sell intoxicating liquor alcoholic beverages 
        for consumption on the premises in conjunction with the sale of 
        food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on 
        Mondays, provided that the licensee is in conformance with the 
        Minnesota clean air act. 
           (c) An establishment serving intoxicating liquor on Sundays 
        must obtain a Sunday license.  The license must be issued by the 
        governing body of the municipality for a period of one year, and 
        the fee for the license may not exceed $200. 
           (d) A city may issue a Sunday intoxicating liquor license 
        only if authorized to do so by the voters of the city voting on 
        the question at a general or special election.  A county may 
        issue a Sunday intoxicating liquor license in a town only if 
        authorized to do so by the voters of the town as provided in 
        paragraph (e).  A county may issue a Sunday intoxicating liquor 
        license in unorganized territory only if authorized to do so by 
        the voters of the election precinct that contains the licensed 
        premises, voting on the question at a general or special 
        election. 
           (e) An election conducted in a town on the question of the 
        issuance by the county of Sunday sales licenses to 
        establishments located in the town must be held on the day of 
        the annual election of town officers. 
           (f) Voter approval is not required for licenses issued by 
        the metropolitan airports commission or common carrier licenses 
        issued by the commissioner.  Common carriers serving 
        intoxicating liquor on Sunday must obtain a Sunday license from 
        the commissioner at an annual fee of $50, plus $20 for each 
        duplicate.  
           Sec. 9.  Laws 1969, chapter 783, section 1, subdivision 1, 
        as amended by Laws 1971, chapter 498, section 1, as amended by 
        Laws 1973, chapter 396, section 1, is amended to read: 
           Section 1.  [ST. PAUL, CITY OF; CIVIC CENTER; LIQUOR 
        LICENSE.] 
           Subdivision 1.  In addition to the licenses now authorized 
        by law, and notwithstanding any provision of law to the contrary 
        contained in the charter or ordinances of such city, or statutes 
        applicable to such city, the city of St. Paul is authorized to 
        issue an "on sale" liquor license for the premises known and 
        used as the St. Paul civic center.  The license so authorized 
        may be vested, with the prior approval of the civic center 
        authority, in any person, firm or corporation who has contracted 
        for the use of the civic center premises for an event or a 
        caterer of such person, firm or corporation approved by the 
        civic center authority.  The license may be vested in such 
        person, firm, corporation or caterer notwithstanding the fact 
        that such person, firm, corporation or caterer may hold another 
        "on sale" license in its own right, but such license vested by 
        the authority shall expire upon termination of the contracted 
        event.  The fee for such license to the authority shall be fixed 
        by the governing body of the city of St. Paul.  Such liquor 
        license shall be issued in accordance with the statutes 
        applicable to the issuance of "on sale" liquor licenses in 
        cities of the first class not inconsistent herewith and in 
        accordance with the charter and ordinances of the city of St. 
        Paul not inconsistent herewith and shall limit the sale of 
        intoxicating liquor to patrons of the entire civic center 
        complex who gather therein for any convention, banquet, 
        conference, meeting, professional athletic or sporting event, 
        theatrical event or social affair, but shall prohibit the sale 
        of:  (1) intoxicating liquor to the public or to any persons 
        attending or participating in any amateur athletic event other 
        than an intercollegiate athletic event being held on the civic 
        center premises; and (2) intoxicating liquor other than malt 
        liquor to the public or to any persons attending or 
        participating in an intercollegiate athletic event at the civic 
        center premises. 
           Sec. 10.  Laws 1990, chapter 554, section 19, is amended to 
        read: 
           Sec. 19.  [CITY OF ST. PAUL; WINE AND BEER LICENSES.] 
           Subdivision 1.  [LICENSE AUTHORIZED.] The city of St. Paul 
        may issue on-sale nonintoxicating malt liquor licenses and, 
        on-sale wine licenses, and on-sale intoxicating liquor licenses 
        to the city's division of parks and recreation.  The licenses 
        authorize the sale or service of wine or, nonintoxicating malt 
        liquor, or intoxicating liquor on property owned by the city and 
        under the jurisdiction of the division by: 
           (1) employees of the city; 
           (2) persons holding a permit from the division to conduct 
        an event and sell or serve wine or, nonintoxicating malt liquor, 
        or intoxicating liquor to persons attending the event; or 
           (3) persons who have contracted with the city to sell or 
        serve wine or, nonintoxicating malt liquor, or intoxicating 
        liquor on such property. 
           Subd. 2.  [PERMITS; CONTRACTS.] (a) Permits issued by the 
        city under subdivision 1, clause (2), and contracts entered into 
        by the city under subdivision 1, clause (3), must provide for: 
           (1) the duration of the permit or contract; 
           (2) the premises or area in which sales or service of 
        wine or, nonintoxicating malt liquor, or intoxicating liquor 
        will be made; 
           (3) the persons to whom such sales or service will be made; 
           (4) the days and hours in which such sales or service will 
        be made; and 
           (5) obtaining by the permit holder or contracted vendor of 
        such liquor liability insurance or bond, or both, as the city 
        considers necessary to protect the city's interest as the holder 
        of the license. 
           (b) A permit may be issued or a contract entered into under 
        this section with a person who does not hold a license issued 
        under Minnesota Statutes, chapter 340A, for the retail sale of 
        alcoholic beverages. 
           (c) The division may, without notice or hearing, refuse to 
        issue a permit under subdivision 1, clause (2). 
           Subd. 3.  [CITY COUNCIL APPROVAL.] The St. Paul city 
        council must approve each: 
           (1) facility at which wine or, nonintoxicating malt liquor, 
        or intoxicating liquor will be sold or served by city employees; 
           (2) permit issued under subdivision 1, clause (2); and 
           (3) contract entered into under subdivision 1, clause (3). 
           Subd. 4.  [APPLICABILITY OF GENERAL LAW.] All provisions of 
        Minnesota Statutes, chapter 340A, not inconsistent with this 
        section apply to licenses issued under this section.  Licenses 
        authorized by this section are in addition to any other licenses 
        authorized by law. 
           Sec. 11.  [CITY OF MOORHEAD; LIQUOR LICENSES.] 
           The city of Moorhead may issue two 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 
        under this section. 
           Sec. 12.  [CITY OF DULUTH; OFF-SALE HOURS.] 
           Notwithstanding any other law, the city of Duluth may by 
        ordinance permit the off-sale of intoxicating liquor until 10:00 
        p.m. on Monday through Saturday. 
           Sec. 13.  [CITY OF PROCTOR; OFF-SALE HOURS.] 
           Notwithstanding any other law, the city of Proctor may by 
        ordinance permit the off-sale of intoxicating liquor until 10:00 
        p.m. on Monday through Saturday. 
           Sec. 14.  [CITY OF HERMANTOWN; OFF-SALE HOURS.] 
           Notwithstanding any other law, the city of Hermantown may 
        by ordinance permit the off-sale of intoxicating liquor until 
        10:00 p.m. on Monday through Saturday. 
           Sec. 15.  [CITY OF SPRING LAKE PARK; LIQUOR LICENSES.] 
           The city of Spring Lake Park may issue one on-sale 
        intoxicating liquor license in addition to the number authorized 
        by law.  All provisions of Minnesota Statutes, chapter 340A, not 
        inconsistent with this section, apply to the license authorized 
        under this section. 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 2, 3, and 8 are effective the day following final 
        enactment. 
           Section 9 is effective upon approval by the St. Paul city 
        council and compliance with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Section 10 is effective upon approval by the Saint Paul 
        city council and compliance with Minnesota Statutes, section 
        645.021. 
           Section 11 is effective upon approval by the Moorhead city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 12 is effective upon approval by the Duluth city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 13 is effective upon approval by the Proctor city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 14 is effective upon approval by the Hermantown 
        city council and compliance with Minnesota Statutes, section 
        645.021. 
           Section 15 is effective upon approval by the Spring Lake 
        Park city council and compliance with Minnesota Statutes, 
        section 645.021. 
                                   ARTICLE 2
                        ALCOHOL AND GAMBLING ENFORCEMENT
           Section 1.  Minnesota Statutes 1996, section 16B.54, 
        subdivision 2, is amended to read: 
           Subd. 2.  [VEHICLES.] (a)  [ACQUISITION FROM AGENCY; 
        APPROPRIATION.] The commissioner may direct an agency to make a 
        transfer of a passenger motor vehicle or truck currently 
        assigned to it.  The transfer must be made to the commissioner 
        for use in the central motor pool.  The commissioner shall 
        reimburse an agency whose motor vehicles have been paid for with 
        funds dedicated by the constitution for a special purpose and 
        which are assigned to the central motor pool.  The amount of 
        reimbursement for a motor vehicle is its average wholesale price 
        as determined from the midwest edition of the National 
        Automobile Dealers Association official used car guide. 
           (b)  [PURCHASE.] To the extent that funds are available for 
        the purpose, the commissioner may purchase or otherwise acquire 
        additional passenger motor vehicles and trucks necessary for the 
        central motor pool.  The title to all motor vehicles assigned to 
        or purchased or acquired for the central motor pool is in the 
        name of the department of administration.  
           (c)  [TRANSFER AT AGENCY REQUEST.] On the request of an 
        agency, the commissioner may transfer to the central motor pool 
        any passenger motor vehicle or truck for the purpose of 
        disposing of it.  The department or agency transferring the 
        vehicle or truck must be paid for it from the motor pool 
        revolving account established by this section in an amount equal 
        to two-thirds of the average wholesale price of the vehicle or 
        truck as determined from the midwest edition of the National 
        Automobile Dealers Association official used car guide. 
           (d)  [VEHICLES; MARKING.] The commissioner shall provide 
        for the uniform marking of all motor vehicles.  Motor vehicle 
        colors must be selected from the regular color chart provided by 
        the manufacturer each year.  The commissioner may further 
        provide for the use of motor vehicles without marking by: 
           (1) the governor; 
           (2) the lieutenant governor; 
           (3) the division of criminal apprehension, the division of 
        liquor control, the division of alcohol and gambling 
        enforcement, and arson investigators of the division of fire 
        marshal in the department of public safety; 
           (4) the financial institutions division of the department 
        of commerce; 
           (5) the division of disease prevention and control of the 
        department of health; 
           (6) the state lottery; 
           (7) criminal investigators of the department of revenue; 
           (8) state-owned community service facilities in the 
        department of human services; 
           (9) the investigative staff of the department of economic 
        security; and 
           (10) the office of the attorney general. 
           Sec. 2.  Minnesota Statutes 1996, section 43A.34, 
        subdivision 4, is amended to read: 
           Subd. 4.  [STATE PATROL, CONSERVATION AND CRIME BUREAU 
        OFFICERS EXEMPTED.] Notwithstanding any provision to the 
        contrary, (a) conservation officers and crime bureau officers 
        who were first employed on or after July 1, 1973, and who are 
        members of the state patrol retirement fund by reason of their 
        employment, and members of the Minnesota state patrol division 
        and alcohol and gambling enforcement divisions division of the 
        department of public safety who are members of the state patrol 
        retirement association by reason of their employment, shall not 
        continue employment after attaining the age of 60 years, except 
        for a fractional portion of one year that will enable the 
        employee to complete the employee's next full year of allowable 
        service as defined pursuant to section 352B.01, subdivision 3; 
        and (b) conservation officers and crime bureau officers who were 
        first employed and are members of the state patrol retirement 
        fund by reason of their employment before July 1, 1973, shall 
        not continue employment after attaining the age of 70 years.  
           Sec. 3.  Minnesota Statutes 1996, section 299A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIRECTOR OF DIVISION OF LIQUOR 
        CONTROL CONFLICT OF INTEREST.] No employee of the department of 
        public safety or the department of revenue having any 
        responsibility for the administration or enforcement of Laws 
        1985, chapter 305, articles 2 to 11 chapter 297C or 340A shall 
        have a direct or indirect interest, except through ownership or 
        investment in pension or mutual funds, in the manufacture, 
        transportation or sale of intoxicating liquor or any malt or 
        vinous beverages, intoxicating, nonintoxicating, or commercial 
        or industrial alcohol.  The commissioner of public safety or the 
        commissioner of revenue may remove an employee in the 
        unclassified civil service for any intentional violation of any 
        provision in Laws 1985, chapter 305, articles 2 to 11 of chapter 
        297C or 340A.  Intentional violation of the preceding sections a 
        provision of chapter 297C or 340A by a classified employee of 
        one of the departments may be grounds for removal of that 
        employee pursuant to section 43A.33. 
           Sec. 4.  Minnesota Statutes 1996, section 299A.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL POWERS.] The commissioner shall 
        administer and enforce the provisions of Laws 1985, chapter 305, 
        articles 2 to 11 chapters 297C and 340A through the director of 
        alcohol and gambling enforcement, except for those provisions 
        thereof for which administration and enforcement are reserved to 
        the commissioner of revenue. 
           Sec. 5.  Minnesota Statutes 1996, section 299A.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REPORTS; RULES.] The commissioner shall have 
        power to require periodic factual reports from all licensed 
        importers, manufacturers, wholesalers and retailers of 
        intoxicating liquors and to make all reasonable rules to effect 
        the object of Laws 1985, chapter 305, articles 2 to 11 chapters 
        297C and 340A.  The rules shall include provisions for assuring 
        the purity of intoxicating liquors and the true statement of its 
        contents and proper labeling thereof with regard to all forms of 
        sale.  No rule may require the use of new containers in aging 
        whiskey.  No rule may require cordials or liqueurs to contain in 
        excess of 2-1/2 percent by weight of sugar or dextrose or both. 
           Sec. 6.  Minnesota Statutes 1996, section 299L.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        chapter, the terms defined in this subdivision have the meanings 
        given them. 
           (b) "Division" means the division of alcohol and gambling 
        enforcement.  
           (c) "Commissioner" means the commissioner of public safety. 
           (d) "Director" means the director of alcohol and gambling 
        enforcement.  
           (e) "Manufacturer" means a person who assembles from raw 
        materials or subparts a gambling device for sale or use in 
        Minnesota. 
           (f) "Distributor" means a person who sells, offers to sell, 
        or otherwise provides a gambling device to a person in Minnesota.
           (g) "Used gambling device" means a gambling device five or 
        more years old from the date of manufacture. 
           (h) "Test" means the process of examining a gambling device 
        to determine its characteristics or compliance with the 
        established requirements of any jurisdiction. 
           (i) "Testing facility" means a person in Minnesota who is 
        engaged in the testing of gambling devices for use in any 
        jurisdiction. 
           Sec. 7.  Minnesota Statutes 1996, section 299L.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ESTABLISHED; CONSOLIDATION WITH LIQUOR CONTROL.] 
        Effective October 1, 1996, the duties and powers of the division 
        of gambling enforcement is a are transferred to the division of 
        alcohol and gambling enforcement in the department of public 
        safety, under the control and supervision of a director, 
        appointed by the commissioner and serving at the commissioner's 
        pleasure in the unclassified service.  The director must be a 
        person who is licensed or eligible to be licensed as a peace 
        officer under sections 626.84 to 626.863. 
           Sec. 8.  Minnesota Statutes 1996, section 299L.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OTHER GAMBLING.] The director of gambling 
        enforcement shall cooperate with all state and local agencies in 
        the detection and apprehension of unlawful gambling. 
           Sec. 9.  Minnesota Statutes 1996, section 299L.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [BACKGROUND CHECKS.] In any background check 
        required to be conducted by the division of gambling enforcement 
        under this chapter, chapter 240, 349, 349A, or section 3.9221, 
        the director may, or shall when required by law, require that 
        fingerprints be taken and the director may forward the 
        fingerprints to the Federal Bureau of Investigation for the 
        conducting of a national criminal history check.  The director 
        may charge a fee for fingerprint recording and investigation 
        under section 3.9221. 
           Sec. 10.  Minnesota Statutes 1996, section 299L.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSPECTIONS; ACCESS.] In conducting any 
        inspection authorized under this chapter or chapter 240, 349, or 
        349A, the employees of the division of gambling enforcement 
        employees have free and open access to all parts of the 
        regulated business premises, and may conduct the inspection at 
        any reasonable time without notice and without a search 
        warrant.  For purposes of this subdivision, "regulated business 
        premises" means premises where: 
           (1) lawful gambling is conducted by an organization 
        licensed under chapter 349 or by an organization exempt from 
        licensing under section 349.166; 
           (2) gambling equipment is manufactured, sold, distributed, 
        or serviced by a manufacturer or distributor licensed under 
        chapter 349; 
           (3) records required to be maintained under chapter 240, 
        297E, 349, or 349A are prepared or retained; 
           (4) lottery tickets are sold by a lottery retailer under 
        chapter 340A; 
           (5) races are conducted by a person licensed under chapter 
        240; or 
           (6) gambling devices are manufactured, distributed, or 
        tested, including places of storage under section 299L.07. 
           Sec. 11.  Minnesota Statutes 1996, section 299L.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ARREST POWERS.] The director may designate 
        certain division employees within the division of gambling 
        enforcement who are authorized to arrest or investigate any 
        person who is suspected of violating any provision of chapter 
        240, 349, or 349A, or is suspected of committing any crime 
        involving gambling, and to conduct searches and seizures to 
        enforce any of those laws.  Any employee authorized by this 
        subdivision to make an arrest must be licensed under sections 
        626.84 to 626.863.  
           Sec. 12.  Minnesota Statutes 1996, section 299L.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [OTHER POWERS.] Nothing in this chapter limits 
        the authority of the division of gambling enforcement to 
        exercise any other power specified under chapter 240, 340A, 349, 
        or 349A.  
           Sec. 13.  Minnesota Statutes 1996, section 340A.201, is 
        amended to read: 
           340A.201 [LIQUOR CONTROL AUTHORITY.] 
           Subdivision 1.  [1976 SUCCESSOR.] The commissioner of 
        public safety is the successor to the commissioner of liquor 
        control with respect to the powers and duties vested in the 
        latter as of February 6, 1976, except for those powers and 
        duties transferred to the commissioner of revenue.  Any 
        proceeding, court action, prosecution, or other business 
        undertaken or commenced as of February 6, 1976, by the 
        commissioner of liquor control is assigned to the commissioners 
        of public safety and revenue as appropriate and may be completed 
        by them.  
           Subd. 2.  [DELEGATION; 1996 CONSOLIDATION; DIVISION 
        DIRECTOR.] Effective October 1, 1996, the duties and powers 
        vested previously in the commissioner of public safety and 
        delegated to the department's division of liquor control are 
        delegated and transferred to, and consolidated with, the 
        division of alcohol and gambling enforcement of the department 
        of public safety, under the supervision of a director appointed 
        by the commissioner and serving in the unclassified service at 
        the pleasure of the commissioner. 
           Sec. 14.  [RESPONSIBILITIES TRANSFERRED AND CONSOLIDATED 
        INTO DIVISION OF ALCOHOL AND GAMBLING ENFORCEMENT.] 
           Subdivision 1.  [RESPONSIBILITIES TRANSFERRED.] The 
        responsibilities of the division of liquor control and the 
        division of gambling enforcement are transferred and 
        consolidated into the division of alcohol and gambling 
        enforcement in the department of public safety, under the 
        supervision of a director in the unclassified service appointed 
        by the commissioner of public safety and serving at the 
        commissioner's pleasure.  The term "responsibilities" includes 
        powers, duties, rights, obligations, and other authority imposed 
        by law on the former divisions.  The term "new division" means 
        the division of alcohol and gambling enforcement and "former 
        divisions" means the division of liquor control and the division 
        of gambling enforcement.  
           Subd. 2.  [CONTINUATION.] The new division is a 
        continuation of the former divisions as to those 
        responsibilities and matters within the jurisdiction of the 
        former divisions that are transferred to the new division.  
        Following a transfer the new division shall carry out the 
        assigned responsibilities as though the responsibilities of the 
        former division had not been transferred.  A transfer is not a 
        new authority for the purpose of succession to all 
        responsibilities of the former divisions as constituted at the 
        time of the transfer. 
           Subd. 3.  [RULES.] Rules adopted pursuant to 
        responsibilities that are transferred to the new division remain 
        effective and shall be enforced until amended or repealed in 
        accordance with law by the commissioner of public safety.  The 
        rulemaking authority of the commissioner of public safety, that 
        existed to implement the responsibilities that are transferred 
        from the former divisions, is retained by the commissioner.  
           Subd. 4.  [COURT ACTIONS.] Any proceeding, court action, 
        prosecution, or other business or matter pending on the 
        effective date of a transfer of responsibilities may be 
        conducted and completed under the authority of the commissioner 
        of public safety in the same manner, under the same terms and 
        conditions, and with the same effect as though it involved or 
        were commenced and conducted or completed prior to the transfer. 
           Subd. 5.  [CONTRACTS; RECORDS.] The former divisions whose 
        responsibilities are transferred shall give all contracts, 
        books, maps, plans, papers, records, and property of every 
        description relating to the transferred responsibilities and 
        within its jurisdiction or control to the new division.  The new 
        division shall accept the material presented.  The transfer 
        shall be made in accordance with the directions of the new 
        division.  
           Subd. 6.  [UNEXPENDED FUNDS.] The unexpended balance of any 
        appropriation to a former division for the purposes of any 
        responsibilities that are transferred to the new division are 
        reappropriated to the new division under the same conditions as 
        the original appropriation, effective retroactively to October 
        1, 1996.  
           Subd. 7.  [PERSONNEL.] The position of director of the 
        division of liquor control is abolished.  The person occupying 
        the position of director of gambling enforcement becomes the 
        director of alcohol and gambling enforcement, a position in the 
        unclassified service.  The director serves at the pleasure of 
        the commissioner of public safety.  All other classified and 
        unclassified positions associated with the responsibilities 
        being transferred are transferred with their incumbents to the 
        new division.  Personnel changes are effective retroactively to 
        October 1, 1996.  Nothing in this subdivision abrogates or 
        modifies the rights now enjoyed by affected employees under the 
        managerial or commissioner's plan under Minnesota Statutes, 
        section 43A.18, or the terms of an agreement between an 
        exclusive representative of public employees and the state or 
        one of its appointing authorities. 
           Sec. 15.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change the terms "division of 
        gambling enforcement," "division of liquor control," "director 
        of gambling enforcement," "director of the division of liquor 
        control," and similar terms referring to either of those 
        divisions or directors to "division of alcohol and gambling 
        enforcement" or "director of alcohol and gambling enforcement," 
        as appropriate:  
           (1) where found in Minnesota Statutes, chapters 299L, 340A, 
        349, and 349A, and Minnesota Statutes, sections 10A.01, 
        subdivision 18; 13.99, subdivision 92a; 240.06, subdivisions 3 
        and 8; 240.07, subdivision 2; 240.08, subdivision 3; 240.09, 
        subdivision 3a; 240.21; 297E.13, subdivision 5; 297E.16, 
        subdivision 2; 352B.01, subdivision 2; 626.05, subdivision 2; 
        626.13; and 626.84, subdivision 1; and 
           (2) where found in Minnesota Rules. 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 1 to 14 are effective retroactively to October 1, 
        1996. 
           Presented to the governor May 8, 1997 
           Signed by the governor May 9, 1997, 8:20 a.m.