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Office of the Revisor of Statutes

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

                            CHAPTER 364-S.F.No. 2274 
                  An act relating to liquor; regulating beer brewers and 
                  wholesalers; providing for the obligations of 
                  successors; allowing the commissioner of public safety 
                  to issue on-sale licenses to Giants Ridge and 
                  Ironworld Discovery Center; modifying restrictions for 
                  temporary on-sale licenses; authorizing issuance of 
                  temporary on-sale licenses to state universities; 
                  regulating malt liquor sampling; authorizing certain 
                  cities to issue additional on-sale licenses; amending 
                  Minnesota Statutes 1996, sections 325B.01; 325B.14; 
                  340A.404, subdivision 10, and by adding a subdivision; 
                  340A.410, subdivision 10; 340A.412, subdivision 4; and 
                  340A.510, subdivision 2; Laws 1994, chapter 611, 
                  section 32, as amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 325B.01, is 
        amended to read: 
           325B.01 [DEFINITIONS.] 
           Subdivision 1.  As used in sections 325B.01 to 325B.17 and 
        unless otherwise required by the context, the terms defined in 
        this section have the meanings given them. 
           Subd. 2.  "Agreement" means one or more of the following: 
           (a) A commercial relationship between a licensed beer 
        wholesaler and a licensed brewer of a definite or indefinite 
        duration, which is not required to be evidenced in writing; 
           (b) A relationship whereby the beer wholesaler is granted 
        the right to offer and sell a brand or brands of beer offered by 
        a brewer; 
           (c) A relationship whereby the beer wholesaler, as an 
        independent business, constitutes a component of a brewer's 
        distribution system; 
           (d) A relationship whereby the beer wholesaler's business 
        is substantially associated with a brewer's brand or brands, 
        designating the brewer; 
           (e) A relationship whereby the beer wholesaler's business 
        is substantially reliant on a brewer for the continued supply of 
        beer; 
           (f) A written or oral arrangement for a definite or 
        indefinite period whereby a brewer grants to a beer wholesaler a 
        license to use a brand, trade name, trademark, or service mark, 
        and in which there is a community of interest in the marketing 
        of goods or services at wholesale or retail. 
           Subd. 3.  "Beer wholesaler" shall mean any licensed person 
        importing or causing to be imported into this state or 
        purchasing or causing to be purchased within this state, any 
        beer for sale or resale to retailers or wholesalers licensed 
        under chapter 340, without regard to whether the business of the 
        person is conducted under the terms of an agreement with a 
        licensed brewer. 
           Subd. 4.  "Brewer" means every licensed brewer or importer 
        of beer located within or without the state of Minnesota, who 
        enters into an "agreement" with any beer wholesaler licensed to 
        do doing business in the state of Minnesota. 
           Subd. 5.  "Person" means a natural person, corporation, 
        partnership, trust, agency, or other entity as well as the 
        individual officers, directors or other persons in active 
        control of the activities of each such entity.  Person also 
        includes heirs, assigns, personal representatives and guardians. 
           Subd. 6.  "Successor" means a person who replaces a brewer, 
        importer, or wholesaler with regard to the right to manufacture, 
        sell, distribute, or import a brand or brands of beer. 
           Subd. 7.  "Territory" or "sales territory" means the area 
        of primary sales responsibility designated by any agreement 
        between any beer wholesaler and brewer for the brand or brands 
        of any brewer. 
           Sec. 2.  Minnesota Statutes 1996, section 325B.14, is 
        amended to read: 
           325B.14 [OBLIGATIONS OF PURCHASER SUCCESSOR.] 
           Except for good cause, which shall include, but not be 
        limited to (1) revocation of the wholesaler's license to do 
        business in the state, (2) bankruptcy or insolvency of the 
        wholesaler, (3) assignment for the benefit of creditors or 
        similar disposition of the assets of the wholesaler, (4) failure 
        by the wholesaler to substantially comply, without reasonable 
        excuse or justification, with any reasonable and material 
        requirement imposed upon the wholesaler by the brewery, the 
        purchaser of a "brewer" as defined in sections 325B.01 to 
        325B.17 shall become obligated to all of the terms and 
        conditions of the agreement in effect on the date of purchase.  
        "Purchase", as defined for the purposes of sections 325B.01 to 
        325B.17, shall include, but is not limited to, the sale of 
        stock, sale of assets, merger, lease, transfer or consolidation. 
           A successor shall become obligated to all of the terms and 
        conditions of the agreement in effect on the date of 
        succession.  This section applies regardless of the character or 
        form of the succession.  A successor has the right to 
        contractually require its wholesalers to comply with operational 
        standards of performance, if the standards are uniformly 
        established for all of the successor's wholesalers and conform 
        to sections 325B.01 to 325B.17. 
           Sec. 3.  Minnesota Statutes 1996, section 340A.404, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [STATE-OWNED RECREATION; ENTERTAINMENT 
        FACILITIES.] Notwithstanding any other law, local ordinance, or 
        charter provision, the commissioner may issue on-sale 
        intoxicating liquor licenses: 
           (1) to the state agency administratively responsible for, 
        or to an entity holding a concession or facility management 
        contract with such agency for beverage sales at, the premises of 
        any Giants Ridge recreation area building or recreational 
        improvement area owned by the state in the town of White, St. 
        Louis county; and 
           (2) to the state agency administratively responsible for, 
        or to an entity holding a concession or facility management 
        contract with such agency for beverage sales at, the premises of 
        any Ironworld Discovery Center building or facility owned by the 
        state at Chisholm. 
           The commissioner shall charge a fee for licenses issued 
        under this subdivision in an amount comparable to the fee for 
        comparable licenses issued in surrounding cities. 
           Sec. 4.  Minnesota Statutes 1996, section 340A.404, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TEMPORARY ON-SALE LICENSES.] The governing body 
        of a municipality may issue to (1) a club or charitable, 
        religious, or other nonprofit organization in existence for at 
        least three years, or to (2) a political committee registered 
        under section 10A.14, or (3) a state university, 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 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. 5.  Minnesota Statutes 1996, section 340A.410, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TEMPORARY LICENSES; RESTRICTIONS.] (a) A 
        municipality may not issue more than three four-day, four 
        three-day, or six two-day, or 12 one-day temporary licenses, in 
        any combination not to exceed 12 days per year, under section 
        340A.404, subdivision 10, for the sale of alcoholic beverages to 
        any one organization or registered political committee, or for 
        any one location, within a 12-month period. 
           (b) A municipality may not issue more than one temporary 
        license under section 340A.404, subdivision 10, for the sale of 
        alcoholic beverages to any one organization or registered 
        political committee, or for any one location, within any 30-day 
        period unless the licenses are issued in connection with an 
        event officially designated a community festival by the 
        municipality. 
           This restriction does not apply to a municipality with a 
        population of 5,000 or fewer people. 
           (c) A municipality that issues separate temporary wine and 
        liquor licenses may separately apply the limitations contained 
        in paragraphs (a) and (b) to the issuance of such licenses to 
        any one organization or registered political committee, or for 
        any one location. 
           Sec. 6.  Minnesota Statutes 1996, section 340A.412, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LICENSES PROHIBITED IN CERTAIN AREAS.] (a) No 
        license to sell intoxicating liquor may be issued within the 
        following areas: 
           (1) where restricted against commercial use through zoning 
        ordinances and other proceedings or legal processes regularly 
        had for that purpose, except licenses may be issued to 
        restaurants in areas which were restricted against commercial 
        uses after the establishment of the restaurant; 
           (2) within the capitol or on the capitol grounds, except as 
        provided under Laws 1983, chapter 259, section 9; 
           (3) on the state fairgrounds or at any place in a city of 
        the first class within one-half mile of the fairgrounds, except 
        as otherwise provided by charter; 
           (4) on the campus of the college of agriculture of the 
        University of Minnesota or at any place in a city of the first 
        class within one-half mile of the campus, provided that a city 
        may issue one on-sale wine license in this area that is not 
        included in the area described in clause (3), except as provided 
        by charter; 
           (5) within 1,000 feet of a state hospital, training school, 
        reformatory, prison, or other institution under the supervision 
        or control, in whole or in part, of the commissioner of human 
        services or the commissioner of corrections; 
           (6) in a town or municipality in which a majority of votes 
        at the last election at which the question of license was voted 
        upon were not in favor of license under section 340A.416, or 
        within one-half mile of any such town or municipality, except 
        that intoxicating liquor manufactured within this radius may be 
        sold to be consumed outside it; 
           (7) at any place on the east side of the Mississippi River 
        within one-tenth of a mile of the main building of the 
        University of Minnesota unless the licensed establishment is on 
        property owned or operated by a nonprofit corporation organized 
        prior to January 1, 1940, for and by former students of the 
        University of Minnesota; 
           (8) within 1,500 feet of a state university, except only 
        1,200 feet from that: 
           (i) the minimum distance in the case of Winona and 
        Southwest State University, provided that is 1,200 feet; 
           (ii) within 1,500 feet of St. Cloud State University one 
        on-sale wine and two off-sale intoxicating liquor licenses may 
        be issued, measured by a direct line from the nearest corner of 
        the administration building to the main entrance of the licensed 
        establishment except; 
           (iii) at Mankato State University the distance is measured 
        from the front door of the student union of the Highland campus; 
        and 
           (iv) a temporary license under section 340A.404, 
        subdivision 10, may be issued to a location on the grounds of a 
        state university for an event sponsored or approved by the state 
        university; and 
           (9) within 1,500 feet of any public school that is not 
        within a city. 
           (b) The restrictions of this subdivision do not apply to a 
        manufacturer or wholesaler of intoxicating liquor or to a 
        drugstore or to a person who had a license originally issued 
        lawfully prior to July 1, 1967. 
           Sec. 7.  Minnesota Statutes 1996, section 340A.510, 
        subdivision 2, is amended to read: 
           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 brewer or by a sampling service retained by the 
        retailer or brewer 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. 8.  Laws 1994, chapter 611, section 32, as amended by 
        Laws 1996, chapter 418, section 15, is amended to read: 
           Sec. 32.  [EAGAN; LICENSES AUTHORIZED.] 
           The city of Eagan may issue not more than eight 12 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. 9.  [CITY OF ALBERT LEA; LIQUOR LICENSES.] 
           The city of Albert Lea may issue three on-sale intoxicating 
        liquor licenses in addition to the number authorized by law.  
        All provisions of Minnesota Statutes, chapter 340A, not 
        inconsistent with this section, apply to the licenses authorized 
        under this section, except that the city may issue the licenses 
        only to establishments that derive 50 percent or more of their 
        gross income from food sales. 
           Sec. 10.  [CITY OF VIRGINIA; LIQUOR LICENSES.] 
           The city of Virginia 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. 11.  [EAST GRAND FORKS; LICENSES AUTHORIZED.] 
           The city of East Grand Forks may issue four 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 
        license authorized under this section. 
           Sec. 12.  [CANOSIA TOWNSHIP; OFF-SALE HOURS.] 
           Notwithstanding any other law, Canosia township may by 
        ordinance permit the off-sale of intoxicating liquor until 10:00 
        p.m. on Monday through Saturday. 
           Sec. 13.  [LAKE COUNTY; OFF-SALE LICENSE.] 
           Notwithstanding Minnesota Statutes, section 340A.405, 
        subdivision 2, paragraph (e), the Lake county board may issue an 
        off-sale intoxicating liquor license within one mile of the city 
        of Two Harbors.  All provisions of Minnesota Statutes, chapter 
        340A, not inconsistent with this section, apply to the license 
        authorized under this section. 
           Sec. 14.  [CITY OF PINE CITY; LIQUOR LICENSE.] 
           The city of Pine City 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. 15.  [STUDY.] 
           The house research department, office of senate counsel and 
        research, and applicable committee staff, in consultation with 
        the departments of revenue and public safety, shall study issues 
        relating to direct shipment of liquor into Minnesota.  The study 
        shall consider the legal, tax, public policy, and regulatory 
        aspects of direct shipment.  The study shall be submitted to the 
        chairs of the commerce committees of the legislature by February 
        1, 1999. 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 3, 5, and 7 are effective the day following final 
        enactment. 
           Section 8 is effective on approval by the Eagan city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 9 is effective upon approval by the Albert Lea city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 10 is effective upon approval by the Virginia city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Section 11 is effective on approval by the East Grand Forks 
        city council and compliance with Minnesota Statutes, section 
        645.021. 
           Section 12 is effective upon approval by the Canosia town 
        board and compliance with Minnesota Statutes, section 645.021.  
           Section 13 is effective upon approval by the Lake county 
        board and compliance with Minnesota Statutes, section 645.021. 
           Section 14 is effective upon approval by the Pine City city 
        council and compliance with Minnesota Statutes, section 645.021. 
           Presented to the governor April 3, 1998 
           Signed by the governor April 6, 1998, 2:50 p.m.