Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes