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1987 Minnesota Session Laws

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                         Laws of Minnesota 1987 

                        CHAPTER 310-S.F.No. 1152 
           An act relating to alcoholic beverages; limiting 
          imports by individuals; permitting certain 
          transactions between brewers and wholesalers; 
          specifying limits on variable volume prices; providing 
          for notice of credit-delinquent retailers; authorizing 
          counties to issue seasonal on-sale licenses; 
          specifying counties which may issue licenses in 
          certain locations; permitting wine auctions; setting 
          minimum age to sell or serve alcoholic beverages; 
          specifying who may impose administrative penalties for 
          certain violations by retailers; authorizing 
          inspections of licensed premises by the commissioner 
          of public safety; repealing affirmation law, wholesale 
          price filing, and percentage requirements for malt 
          barley in beer; amending Minnesota Statutes 1986, 
          sections 297C.09; 340A.302, subdivision 1; 340A.308; 
          340A.312, subdivision 2; 340A.318, subdivisions 2, 3, 
          and 4; 340A.404, by adding a subdivision; 340A.405, 
          subdivision 2, and by adding a subdivision; 340A.412, 
          subdivision 10; 340A.415; proposing coding for new law 
          in Minnesota Statutes, chapter 340A; repealing 
          Minnesota Statutes 1986, sections 34.119; 34.12; 34.13;
          34.14; 340A.307, subdivision 3; and 340A.313. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1986, section 297C.09, is 
amended to read:  
    297C.09 [IMPORTATION BY INDIVIDUALS.] 
    A person, other than a person under the age of 19 21 years, 
entering Minnesota from another state may have in possession one 
liter of intoxicating liquor or 288 ounces of malt liquor and a 
person entering Minnesota from a foreign country may have in 
possession four liters of intoxicating liquor or ten quarts (320 
ounces) of malt liquor without the required payment of the 
Minnesota excise tax.  Amounts in excess of these quantities may 
be imported only by a licensee holding the appropriate license 
as manufacturer, wholesaler, or importer under section 340A.301 
or 340A.302.  A collector of commemorative bottles, other than a 
person under the age of 19 21 years, entering Minnesota from 
another state may have in possession 12 or fewer commemorative 
bottles without the required payment of the Minnesota excise 
tax.  A person who imports or has in possession untaxed 
intoxicating liquor or malt liquor in excess of the quantities 
provided for in this section is guilty of a misdemeanor.  This 
section does not apply to the consignments of alcoholic 
beverages shipped into this state by holders of Minnesota import 
licenses or Minnesota manufacturers and wholesalers when 
licensed by the commissioner of public safety or to common 
carriers with licenses to sell intoxicating liquor in more than 
one state.  A peace officer, the commissioner, or their 
authorized agents, may seize untaxed liquor. 
    Sec. 2.  Minnesota Statutes 1986, section 340A.302, 
subdivision 1, is amended to read:  
    Subdivision 1.  [LICENSES REQUIRED.] Except as provided 
in section sections 297C.09 and 340A.301, subdivision 1, no 
retailer or other person may ship or cause to be shipped 
alcoholic beverages or ethyl alcohol for personal use or to a 
licensed manufacturer or wholesaler without obtaining an 
importer's license from the commissioner. 
    Sec. 3.  Minnesota Statutes 1986, section 340A.308, is 
amended to read:  
    340A.308 [PROHIBITED TRANSACTIONS.] 
    (a) No brewer or malt liquor wholesaler may directly or 
indirectly, or through an affiliate or subsidiary company, or 
through an officer, director, stockholder, or partner: 
    (1) give, or lend money, credit, or other thing of value to 
a retailer; 
    (2) give, lend, lease, or sell furnishing or equipment to a 
retailer; 
    (3) have an interest in a retail license; or 
    (4) be bound for the repayment of a loan to a retailer. 
    (b) This section does not prohibit a manufacturer or 
wholesaler from: 
    (1) furnishing, lending, or renting to a retailer outside 
signs, of a cost of up to $100 excluding installation and repair 
costs; 
    (2) furnishing, lending, or renting to a retailer inside 
signs and other promotional material, of a cost of up to $100 in 
a year; 
    (3) furnishing to or maintaining for a retailer equipment 
for dispensing malt liquor, including tap trailers, cold plates 
and other dispensing equipment, of a cost of up to $100 per tap 
in a year; 
    (4) using or renting property owned continually since 
November 1, 1933, for the purpose of selling intoxicating or 
nonintoxicating malt liquor at retail; or 
    (5) extending customary commercial credit to a retailer in 
connection with a sale of nonalcoholic beverages only, or 
engaging in cooperative advertising agreements with a retailer 
in connection with the sale of nonalcoholic beverages only.  
    Sec. 4.  Minnesota Statutes 1986, section 340A.312, 
subdivision 2, is amended to read:  
    Subd. 2.  [VOLUME PRICES.] A variable volume price offered 
by a wholesaler to a licensed retailer on sales of distilled 
spirits or wine may not be for a quantity of more than 300 
one-liter or smaller bottles 25 cases. 
    Sec. 5.  Minnesota Statutes 1986, section 340A.318, 
subdivision 2, is amended to read:  
    Subd. 2.  [REPORTING.] Every distiller, manufacturer or 
wholesaler selling to retailers shall submit to the commissioner 
in triplicate not later than Thursday of each calendar week a 
verified list of the names and addresses of each retail licensee 
purchasing distilled spirits or wine from that distiller, 
manufacturer or wholesaler who, on the first day of that 
calendar week, was delinquent beyond the 30-day period, or a 
verified statement that no delinquencies exist which are 
required to be reported.  The name and address of each retail 
licensee who makes payment with a postdated check, or a check 
that is dishonored on presentment, must also be submitted to the 
commissioner at that time.  If a retail licensee previously 
reported as delinquent cures the delinquency by payment, the 
name and address of that licensee shall be submitted in 
triplicate to the commissioner not later than the close of the 
second full business day following the day the delinquency was 
cured. 
    Sec. 6.  Minnesota Statutes 1986, section 340A.318, 
subdivision 3, is amended to read:  
    Subd. 3.  [POSTING; NOTICE.] Verified list or statements 
required by subdivision 2 shall be posted by the commissioner in 
offices of the department in places available for public 
inspection and mailed to each licensed wholesaler not later than 
the day following receipt.  Documents so posted and mailed shall 
constitute notice to every distiller, manufacturer or wholesaler 
of the information posted.  Actual notice, however received, 
also constitutes notice. 
    Sec. 7.  Minnesota Statutes 1986, section 340A.318, 
subdivision 4, is amended to read:  
    Subd. 4.  [MISCELLANEOUS PROVISIONS.] The 30-day 
merchandising period allowed by this section shall commence with 
the day immediately following the date of invoice and shall 
include all successive days, including Sundays and holidays, to 
and including the 30th successive day.  In addition to other 
legal methods, payment by check during the period for which 
merchandising credit may be extended shall be considered 
payment.  All checks received in payment for distilled spirits 
or wine shall be deposited promptly for collection.  A postdated 
check or a check dishonored on presentation for payment does not 
constitute payment.  A retail licensee shall not be deemed 
delinquent for any alleged sale in any instance where there 
exists a bona fide dispute between the licensee and the 
distiller, manufacturer or wholesaler as to the amount owing as 
a result of the alleged sale.  A delinquent retail licensee who 
engages in the retail liquor business at two or more locations 
shall be deemed to be delinquent with respect to each location. 
A retail licensee who engages in the retail liquor business at 
two or more locations means "a person or group of persons 
possessing 50 percent or more ownership in two or more 
locations." 
    Sec. 8.  Minnesota Statutes 1986, section 340A.404, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [SEASONAL LICENSES; COUNTIES.] A county may 
issue seasonal on-sale intoxicating liquor licenses of periods 
specified in the licenses, which may not exceed six months, or 
in the case of Lake county, nine months.  The county board shall 
determine the fee for such a license.  Not more than one 
seasonal on-sale license may be issued to any one premises in 
any 12-month period. 
    Sec. 9.  Minnesota Statutes 1986, section 340A.405, 
subdivision 2, is amended to read:  
    Subd. 2.  [COUNTIES.] (a) A county may issue an off-sale 
intoxicating license with the approval of the commissioner to 
exclusive liquor stores located within unorganized territory of 
the county. 
    (b) A county board of any county except Ramsey county 
containing a town exercising powers under section 368.01, 
subdivision 1, may issue an off-sale license to an exclusive 
liquor store within that town with the approval of the 
commissioner.  No license may be issued under this paragraph 
unless the town board adopts a resolution supporting the 
issuance of the license. 
    (c) A county board of any county except Ramsey county 
containing a town that may not exercise powers under section 
368.01, subdivision 1, may issue a combination off-sale and 
on-sale license to restaurants within that town with the 
approval of the commissioner pursuant to section 340A.404, 
subdivision 6.  No license may be issued under this paragraph 
unless the town board adopts a resolution supporting the 
issuance of the license. 
    (d) No license may be issued under this subdivision unless 
a public hearing is held on the issuance of the license.  Notice 
must be given to all interested parties and to any city located 
within three miles of the premises proposed to be licensed.  At 
the hearing the county board shall consider testimony and 
exhibits presented by interested parties and may base its 
decision to issue or deny a license upon the nature of the 
business to be conducted and its impact upon any municipality, 
the character and reputation of the applicant, and the propriety 
of the location.  Any hearing held under this paragraph is not 
subject to chapter 14. 
    (e) A county board may not issue a license under this 
subdivision to a person for an establishment located less than 
three miles by the most direct route from the boundary of any 
statutory or home rule city except cities of the first class or 
within Pine or, Kanabec, Carlton or Red Lake counties within 
three miles of a statutory or home rule city with a municipal 
liquor store.  
    (f) The town board may impose an additional license fee in 
an amount not to exceed 20 percent of the county license fee. 
    (g) Notwithstanding any provision of this subdivision or 
Laws 1973, chapter 566, as amended by Laws 1974, chapter 200, a 
county board may transfer or renew a license that was issued by 
a town board under Minnesota Statutes 1984, section 340.11, 
subdivision 10b prior to January 1, 1985. 
    Sec. 10.  Minnesota Statutes 1986, section 340A.405, is 
amended by adding a subdivision to read: 
    Subd. 4.  [TEMPORARY OFF-SALE LICENSES; WINE AUCTIONS.] (a) 
The governing body of a city may issue a temporary license for 
the off-sale of wine at an auction with the approval of the 
commissioner.  A license issued under this subdivision 
authorizes the sale of only vintage wine of a brand and vintage 
that is not commonly being offered for sale by any wholesaler in 
Minnesota.  The license may authorize the off-sale of wine for 
not more than three consecutive days provided not more than 600 
cases of wine are sold at any auction.  The licenses are subject 
to the terms, including license fee, imposed by the issuing 
city.  Licenses issued under this subdivision are subject to all 
laws and ordinances governing the sale of intoxicating liquor 
except section 340A.409 and those laws and ordinances which by 
their nature are not applicable.  
    (b) As used in the subdivision, "vintage wine" means 
bottled wine which is at least five years old.  
    Sec. 11.  Minnesota Statutes 1986, section 340A.412, 
subdivision 10, is amended to read:  
    Subd. 10.  [EMPLOYMENT OF MINORS.] No person under 18 years 
of age may be employed in a place where intoxicating liquor is 
sold for consumption on the premises, except persons under 18 
years of age may be employed as musicians or in bussing or 
washing dishes in a restaurant or hotel that is licensed to sell 
intoxicating liquor and may be employed as waiters or waitresses 
at a restaurant, hotel, or motel where only wine is sold, 
provided that the person under the age of 18 may not serve or 
sell any wine serve or sell intoxicating liquor in a retail 
intoxicating liquor establishment. 
    Sec. 12.  Minnesota Statutes 1986, section 340A.415, is 
amended to read:  
    340A.415 [LICENSE REVOCATION OR SUSPENSION.] 
    The authority issuing or approving any retail license or 
permit under this chapter shall either suspend for up to 60 days 
or revoke the license or permit or impose a civil fine not to 
exceed $2,000 for each violation on a finding that the license 
or permit holder has failed to comply with an applicable 
statute, rule, or ordinance relating to alcoholic beverages.  No 
suspension or revocation takes effect until the license or 
permit holder has been afforded an opportunity for a hearing 
under sections 14.57 to 14.70 of the administrative procedure 
act.  The issuing authority or the commissioner may impose the 
penalties provided in this section on a retail licensee who 
knowingly sells alcoholic beverages to another retail licensee 
for the purpose of resale, or on a retail licensee who purchases 
alcoholic beverages from another retail licensee for the purpose 
of resale. 
    Sec. 13.  [340A.907] [INSPECTION.] 
    The commissioner of public safety or any duly authorized 
employee may, at all reasonable hours, enter in and upon the 
premises of any licensee or permit holder under this chapter to 
inspect the premises and examine the books, papers, and records 
of a manufacturer, wholesaler, importer, or retailer for the 
purpose of determining whether the provisions of this chapter 
are being complied with.  If the commissioner or any duly 
authorized employee is denied free access or is hindered or 
interfered with in making an inspection or examination, the 
licensee or permit holder is subject to revocation pursuant to 
section 340A.304 in the case of a wholesaler, manufacturer, or 
importer, and section 340A.415 in the case of a retailer. 
    Sec. 14.  [REPEALER.] 
    Minnesota Statutes 1986, sections 34.119; 34.12; 34.13; 
34.14; 340A.307, subdivision 3; and 340A.313, are repealed. 
    Approved May 28, 1987

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