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1993 Minnesota Session Laws

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    Laws of Minnesota 1993 

                        CHAPTER 350-S.F.No. 429 
           An act relating to alcoholic beverages; authorizing 
          possession of alcoholic beverages by passengers in 
          certain vehicles; allowing certain shipments of wine 
          into the state and exempting them from taxation; 
          defining terms; prohibiting issuance of retail 
          licenses to certain persons; revising authority for 
          suspensions and civil penalties; providing for proof 
          of age; authorizing license issuance in certain 
          political subdivisions; amending Minnesota Statutes 
          1992, sections 169.122, by adding a subdivision; 
          297C.07; 297C.09; 340A.101, subdivisions 15, 25, and 
          29; 340A.301, subdivision 3; 340A.302, subdivision 3; 
          340A.402; 340A.410, subdivision 7; 340A.415; 340A.503, 
          subdivision 6; 340A.904, subdivision 1; Laws 1969, 
          chapter 783, section 1, as amended; Laws 1983, chapter 
          259, section 8; Laws 1991, chapter 249, section 30; 
          Laws 1992, chapter 486, section 11; proposing coding 
          for new law in Minnesota Statutes, chapter 340A; 
          repealing Minnesota Statutes 1992, section 340A.903. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1992, section 169.122, is 
amended by adding a subdivision to read: 
    Subd. 5.  [EXCEPTION.] This section does not apply to the 
possession or consumption of alcoholic beverages by passengers 
in: 
    (1) a bus operated under a charter as defined in section 
221.011, subdivision 20; or 
    (2) a limousine as defined in section 168.011, subdivision 
35. 
    Sec. 2.  Minnesota Statutes 1992, section 297C.07, is 
amended to read: 
    297C.07 [EXCEPTIONS.] 
    The following are not subject to the excise tax: 
    (1) Sales by a manufacturer, brewer, or wholesaler for 
shipment outside the state in interstate commerce. 
    (2) Sales of wine for sacramental purposes under section 
340A.316. 
    (3) Fruit juices naturally fermented or beer naturally 
brewed in the home for family use. 
    (4) Malt beverages served by a brewery for on-premise 
consumption at no charge, or distributed to brewery employees 
for on-premise consumption under a labor contract. 
    (5) Alcoholic beverages sold to authorized manufacturers of 
food products or pharmaceutical firms.  The alcoholic beverage 
must be used exclusively in the manufacture of food products or 
medicines.  For purposes of this part, "manufacturer" means a 
manufacturer of food products intended for sale to wholesalers 
or retailers for ultimate sale to the consumer. 
    (6) Sales to common carriers engaged in interstate 
transportation of passengers and qualified approved military 
clubs, except as provided in section 297C.17.  
    (7) Alcoholic beverages sold or transferred between 
Minnesota wholesalers.  
    (8) Sales to a federal agency, that the state of Minnesota 
is prohibited from taxing under the constitution or laws of the 
United States or under the constitution of Minnesota. 
    (9) Shipments of wine to Minnesota residents under section 
340A.417. 
    Sec. 3.  Minnesota Statutes 1992, section 297C.09, is 
amended to read: 
    297C.09 [IMPORTATION BY INDIVIDUALS.] 
    A person, other than a person under the age of 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.  A collector of commemorative bottles, 
other than a person under the age of 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 entering Minnesota from another 
state 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.  A person entering 
Minnesota from a foreign country 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. 4.  Minnesota Statutes 1992, section 340A.101, 
subdivision 15, is amended to read: 
    Subd. 15.  [LICENSED PREMISES.] "Licensed premises" is the 
premises described in the approved license application, subject 
to the provisions of section 340A.410, subdivision 7.  In the 
case of a restaurant, club, or exclusive liquor store licensed 
for on-sales of alcoholic beverages and located on a golf 
course, "licensed premises" means the entire golf course except 
for areas where motor vehicles are regularly parked or operated. 
    Sec. 5.  Minnesota Statutes 1992, section 340A.101, 
subdivision 25, is amended to read: 
    Subd. 25.  [RESTAURANT.] "Restaurant" is an establishment, 
other than a hotel, under the control of a single proprietor or 
manager, where meals are regularly prepared on the premises and 
served at tables to the general public, and having seating 
capacity for guests in the following minimum numbers:  
  (a)  First class cities                  50
  (b)  Second and third class cities
       and statutory cities of over
       10,000 population                   30
  (c)  Unincorporated or unorganized
       territory other than in Cook,
       Itasca, Lake, Lake of the Woods, 
       and St. Louis counties             100 
  (d)  Unincorporated or unorganized
       territory in Cook, Itasca, Lake,
       Lake of the Woods, and St. Louis 
       counties                            50
    In the case of classes (b) and (c) above, the governing 
body of a city or county may prescribe a higher minimum number. 
In fourth class cities and statutory cities under 10,000 
population, minimum seating requirements are those prescribed by 
the governing body of the city. 
    Sec. 6.  Minnesota Statutes 1992, section 340A.101, 
subdivision 29, is amended to read: 
    Subd. 29.  [WINE.] "Wine" is the product made from the 
normal alcoholic fermentation of grapes, including still wine, 
sparkling and carbonated wine, wine made from condensed grape 
must, wine made from other agricultural products than sound, 
ripe grapes, imitation wine, compounds sold as wine, vermouth, 
cider, perry and sake, in each instance containing not less than 
seven one-half of one percent nor more than 24 percent alcohol 
by volume for nonindustrial use.  Wine does not include 
distilled spirits as defined in subdivision 9. 
    Sec. 7.  Minnesota Statutes 1992, section 340A.301, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPLICATION.] An application for a license under 
this section must be made to the commissioner on a form the 
commissioner prescribes and must be accompanied by the fee 
specified in subdivision 6.  If an application is denied, $100 
of the amount of any fee exceeding that amount shall be retained 
by the commissioner to cover costs of investigation. 
    Sec. 8.  Minnesota Statutes 1992, section 340A.302, 
subdivision 3, is amended to read: 
    Subd. 3.  [FEES.] Annual fees for licenses under this 
section, which must accompany the application, are as follows: 
     Importers of distilled spirits, wine,
     or ethyl alcohol                             $420
     Importers of malt liquor                     $800
    If an application is denied, $100 of the fee shall be 
retained by the commissioner to cover costs of investigation. 
    Sec. 9.  Minnesota Statutes 1992, section 340A.402, is 
amended to read: 
    340A.402 [PERSONS ELIGIBLE.] 
    No retail license may be issued to: 
    (1) a person not a citizen of the United States or a 
resident alien; 
    (2) a person under 21 years of age; 
    (3) a person who has had an intoxicating liquor or 
nonintoxicating liquor license revoked within five years of the 
license application, or to any person who at the time of the 
violation owns any interest, whether as a holder of more than 
five percent of the capital stock of a corporation licensee, as 
a partner or otherwise, in the premises or in the business 
conducted thereon, or to a corporation, partnership, 
association, enterprise, business, or firm in which any such 
person is in any manner interested; 
    (4) a person not of good moral character and repute; or 
    (5) a person who has a direct or indirect interest in a 
manufacturer, brewer, or wholesaler.  
    In addition, no new retail license may be issued to, and 
the governing body of a municipality may refuse to renew the 
license of, a person who, within five years of the license 
application, has been convicted of a felony or a willful 
violation of a federal or state law or local ordinance governing 
the manufacture, sale, distribution, or possession for sale or 
distribution of an alcoholic beverage.  
    Sec. 10.  Minnesota Statutes 1992, section 340A.410, 
subdivision 7, is amended to read: 
    Subd. 7.  [LICENSE LIMITED TO SPACE SPECIFIED.] A licensing 
authority may issue a retail alcoholic beverage license only for 
a space that is compact and contiguous.  A retail alcoholic 
beverage license to sell any alcoholic beverage is only 
effective for the compact and contiguous space licensed premises 
specified in the approved license application.  
    Sec. 11.  Minnesota Statutes 1992, 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 or the commissioner shall either 
suspend for up to 60 days or revoke the license or permit or 
impose a civil fine penalty 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 14.69 of the administrative procedure act.  This section does 
not require a political subdivision to conduct the hearing 
before an employee of the office of administrative hearing.  The 
issuing authority or the commissioner may impose the penalties 
provided in this section on a retail licensee who 
knowingly (1) sells sold alcoholic beverages to another retail 
licensee for the purpose of resale, (2) purchases purchased 
alcoholic beverages from another retail licensee for the purpose 
of resale, (3) conducts or permits conducted or permitted the 
conduct of gambling on the licensed premises in violation of the 
law, or (4) fails failed to remove or dispose of alcoholic 
beverages when ordered by the commissioner to do so under 
section 340A.508, subdivision 3, or (5) 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 given an opportunity for a 
hearing under sections 14.57 to 14.69 of the administrative 
procedure act.  This section does not require a political 
subdivision to conduct the hearing before an employee of the 
office of administrative hearings.  Imposition of a penalty or 
suspension by either the issuing authority or the commissioner 
does not preclude imposition of an additional penalty or 
suspension by the other so long as the total penalty or 
suspension does not exceed the state maximum.  
    Sec. 12.  [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 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.  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.  
    Sec. 13.  Minnesota Statutes 1992, section 340A.503, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROOF OF AGE; DEFENSE.] (a) Proof of age for 
purchasing or consuming alcoholic beverages may be established 
only by one of the following: 
    (1) a valid driver's license or identification card issued 
by Minnesota, another state, or a province of Canada, and 
including the photograph and date of birth of the licensed 
person; 
    (2) a valid Minnesota identification card; 
    (3) a valid Canadian military identification card with the 
photograph and date of birth of the person, issued by a Canadian 
province the United States Department of Defense; or 
    (4) (3) in the case of a foreign national, from a nation 
other than Canada, by a valid passport. 
    (b) In a prosecution under subdivision 2, clause (1), it is 
a defense for the defendant to prove by a preponderance of the 
evidence that the defendant reasonably and in good faith relied 
upon representations of proof of age authorized in paragraph (a) 
in selling, bartering, furnishing, or giving the alcoholic 
beverage. 
    Sec. 14.  Minnesota Statutes 1992, section 340A.904, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISPOSAL ALTERNATIVES.] Contingent on the 
final determination of any action pending in a court, the 
commissioner shall dispose of alcoholic beverages, material, 
apparatus, or vehicle seized by inspectors or employees of the 
department by: 
    (1) delivering alcoholic beverages to the bureau of 
criminal apprehension or state patrol for use in chemical 
testing programs; 
    (2) delivering on written requests of the commissioner of 
administration any material, apparatus, or vehicle for use by a 
state department; 
    (3) selling intoxicating liquor to licensed retailers 
within the state; 
    (4) selling any material, apparatus, or vehicle; or 
    (5) destroying alcoholic beverages or contraband articles 
that have no lawful use; or 
    (6) donation to a charity registered under section 309.52. 
    Sec. 15.  Laws 1969, chapter 783, section 1, as amended by 
Laws 1971, chapter 498, section 1, as amended by Laws 1973, 
chapter 396, is further amended by adding a subdivision to read: 
    Subd. 2.  The civic center authority may delegate to its 
chief administrator any powers granted to the authority under 
subdivision 1. 
    Sec. 16.  Laws 1983, chapter 259, section 8, is amended to 
read: 
    Sec. 8.  [ST. PAUL; PARK CLUB HOUSES AND PAVILION; LIQUOR.] 
    Notwithstanding any contrary provision of law, charter or 
ordinance, the city of St. Paul may by ordinance authorize any 
holder of an "on-sale" liquor license issued by the city to 
dispense intoxicating liquor at any event of definite duration 
on the public premises known as the Phalen Park club house, the 
Como Park club house, and the Como Park lakeside pavilion.  The 
event may not be profit making except as a fund raising event 
for a nonprofit organization or a political committee as defined 
in Minnesota Statutes, section 210A.01, subdivision 8 211A.01, 
subdivision 4.  The licensee must be engaged to dispense liquor 
at the event by a person or organization permitted to use the 
premises and may dispense liquor only to persons attending the 
event.  A licensee's authority shall expire upon termination of 
the event.  The authority to dispense liquor shall be granted in 
accordance with the statutes applicable to the issuance of 
"on-sale" liquor licenses in cities of the first class 
consistent with this act.  The dispensing of liquor shall be 
subject to all laws and ordinances governing the dispensing of 
intoxicating liquor that are consistent with this act.  All 
dispensing of liquor shall be in accordance with the conditions 
prescribed by the city.  The conditions may limit the dispensing 
of liquor to designated areas of the facility.  The city may fix 
and assess a fee to be paid to the city by an "on-sale" licensee 
for each event for which the licensee is engaged to dispense 
liquor.  The authority granted by this subdivision shall not 
count as an additional "on-sale" intoxicating liquor license for 
purposes of determining the number of liquor licenses permitted 
to be issued under the provisions of Minnesota Statutes, section 
340.11 340A.413.  
    Sec. 17.  Laws 1991, chapter 249, section 30, is amended to 
read: 
    Sec. 30.  [ON-SALE LICENSES; CITY OF HIBBING.] 
    Notwithstanding Minnesota Statutes, section 340A.413, 
subdivision 1, the city of Hibbing may issue not more than 20 22 
on-sale intoxicating liquor licenses.  All other provisions of 
Minnesota Statutes, chapter 340A, not inconsistent with this 
section apply to licenses issued under this section. 
    Sec. 18.  Laws 1992, chapter 486, section 11, is amended to 
read: 
    Sec. 11.  [NATIONAL SPORTS CENTER; SALES OF ALCOHOLIC 
BEVERAGES.] 
    Subdivision 1.  [AUTHORIZATION.] The Blaine city council 
may by ordinance authorize a holder of a retail on-sale 
intoxicating liquor license issued by the city of Blaine or a 
contiguous another city within Anoka, Hennepin, or Ramsey county 
to dispense alcoholic beverages at the National Sports Center to 
persons attending a social event at the center.  The licensee 
must be engaged to dispense alcoholic beverages at a social 
event held by a person or organization permitted to use the 
National Sports Center.  Nothing in this section authorizes a 
licensee to dispense alcoholic beverages at any youth amateur 
athletic event held at the center. 
    Subd. 2.  [EFFECTIVE DATE.] This section is effective the 
day following final enactment.  Under Minnesota Statutes, 
section 645.023, subdivision 1, paragraph (a), this section 
takes effect without local approval. 
    Sec. 19.  [STEARNS COUNTY; COMBINATION OFF-SALE AND ON-SALE 
LICENSE.] 
    Notwithstanding Minnesota Statutes, section 340A.405, the 
Stearns county board may issue a combination off-sale and 
on-sale intoxicating liquor license to an establishment in Fair 
Haven township that is currently licensed to sell alcoholic 
beverages for consumption on the licensed premises but does not 
qualify as a restaurant under Minnesota Statutes, section 
340A.101, subdivision 25.  The license may be issued only after 
the Fair Haven town board adopts a resolution supporting the 
issuance of the license. 
    Sec. 20.  [INTOXICATING LIQUOR LICENSE; TOWN OF SCHROEDER.] 
    Subdivision 1.  [AUTHORITY.] The town board of Schroeder in 
Cook county may, with the approval of the commissioner of public 
safety, issue an off-sale intoxicating liquor license to an 
exclusive liquor store located within the town.  All provisions 
of Minnesota Statutes, chapter 340A, not inconsistent with this 
section apply to the license. 
    Subd. 2.  [EFFECTIVE DATE.] This section is effective on 
approval of the Schroeder town board and compliance with 
Minnesota Statutes, section 645.021, subdivision 2. 
    Sec. 21.  [APPLE VALLEY LICENSES.] 
    Subdivision 1.  [AUTHORIZATION.] (a) In addition to other 
licenses authorized by law, the city of Apple Valley may issue 
one or more on-sale intoxicating liquor licenses to an entity 
holding a concessions contract with the Minnesota zoological 
board for use on the premises of the Minnesota zoological 
gardens.  Licenses authorized under this paragraph authorize 
sales on all days of the week.  Licenses authorized by this 
paragraph may be issued for licensed premises that are not 
compact and contiguous, provided that the licensed premises must 
be (1) entirely included within the premises of the Minnesota 
zoological gardens, and (2) described in the approved license 
application. 
    (b) The city of Apple Valley may (1) authorize the holder 
of a retail on-sale intoxicating liquor license issued by the 
city to dispense intoxicating liquor at any convention, banquet, 
conference, meeting, or social affair conducted on the premises 
owned by Dakota county located at 14955 Galaxie Avenue in Apple 
Valley, or (2) may issue an on-sale intoxicating liquor license 
to any entity holding a concessions contract with the owner for 
use on the premises.  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. 
    (c) All provisions of Minnesota Statutes, chapter 340A, not 
inconsistent with this section apply to the licensing, sale, and 
serving of alcoholic beverages under this section. 
    Subd. 2.  [LOCAL APPROVAL.] This section is effective on 
approval by the Apple Valley city council and compliance with 
Minnesota Statutes, section 645.021. 
    Sec. 22.  [HOUSTON COUNTY; ON-SALE LIQUOR LICENSE.] 
    Subdivision 1.  [AUTHORIZATION.] (a) The county board of 
Houston county may, with the approval of the commissioner of 
public safety, issue an on-sale intoxicating liquor license to 
an establishment located in Crooked Creek township 
notwithstanding the fact that the establishment is not a 
restaurant as defined in Minnesota Statutes, section 340A.101, 
subdivision 25.  
    (b) The county board of Houston county may, with the 
approval of the commissioner of public safety, issue an on-sale 
intoxicating liquor license to an establishment located in 
Brownsville township notwithstanding the fact that the 
establishment is not a restaurant as defined in Minnesota 
Statutes, section 340A.101, subdivision 25.  
    (c) All other provisions of Minnesota Statutes, chapter 
340A, not inconsistent with this section apply to the licenses 
authorized by this section. 
    Subd. 2.  [LOCAL APPROVAL.] This section is effective on 
approval by the Houston county board and compliance with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 23.  [ON-SALE LICENSE; ISANTI COUNTY.] 
    Subdivision 1.  [AUTHORIZATION.] The Isanti county board 
may issue an on-sale intoxicating liquor license to a premises 
located in Dalbo township without regard to whether the licensed 
premises meets the definition of a "restaurant" in Minnesota 
Statutes, section 340A.101, subdivision 25.  All other 
provisions in Minnesota Statutes, chapter 340A, not inconsistent 
with this section apply to the license authorized by this 
section. 
    Subd. 2.  [LOCAL APPROVAL.] This section is effective on 
approval by the Isanti county board and compliance with 
Minnesota Statutes, section 645.021. 
    Sec. 24.  [AITKIN COUNTY; OFF-SALE LICENSE.] 
    Subdivision 1.  [AUTHORIZED.] Notwithstanding any provision 
of Minnesota Statutes, section 340A.405, subdivision 2, the 
Aitkin county board may issue one off-sale liquor license to a 
premises located in Farm Island township and designated at the 
time of initial licensing as the "Farm Island Store."  All other 
provisions of Minnesota Statutes, chapter 340A, not inconsistent 
with this section shall apply to this license. 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective on 
approval by the Aitkin county board and compliance with 
Minnesota Statutes, section 645.021. 
    Sec. 25.  [STILLWATER; LICENSE AUTHORIZED.] 
    Subdivision 1.  [LICENSE AUTHORIZED.] The city of 
Stillwater 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 herewith, 
apply to the license authorized by this section. 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective on 
approval by the Stillwater city council and compliance with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 26.  [PINE COUNTY ON-SALE LICENSE.] 
    Subdivision 1.  [AUTHORITY.] Notwithstanding Minnesota 
Statutes, section 340A.504, subdivision 3, paragraph (d), Pine 
county may issue one Sunday on-sale intoxicating liquor license 
to a licensed premises located in Barry township upon approval 
by the voters of the town at a special election under Minnesota 
Statutes, section 340A.504, subdivision 3, paragraph (d). 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective on 
approval by the Pine county board and compliance with Minnesota 
Statutes, section 645.021. 
    Sec. 27.  [REPEALER.] 
    Minnesota Statutes 1992, section 340A.903, is repealed. 
    Sec. 28.  [EFFECTIVE DATE.] 
    (a) Section 1 is effective June 1, 1993.  Sections 2 and 12 
are effective the day following final enactment.  Sections 4 to 
10, 14, and 27 are effective July 1, 1993. 
    (b) Sections 15 and 16 are effective on approval by the St. 
Paul city council and compliance with Minnesota Statutes, 
section 645.021. 
    Presented to the governor May 20, 1993 
    Signed by the governor May 24, 1993, 5:47 p.m.

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