Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1998, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes