1.1                          A bill for an act 
  1.2             relating to liquor; modifying the direct shipment law; 
  1.3             requiring permits for common carriers and delivery 
  1.4             agents; increasing criminal penalties; amending 
  1.5             Minnesota Statutes 1998, sections 340A.3021, 
  1.6             subdivision 2; 340A.417; and 340A.801, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 340A.3021, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
  1.11     (1) alcoholic beverages passing through Minnesota in 
  1.12  interstate commerce; 
  1.13     (2) alcoholic beverages imported into Minnesota by 
  1.14  individuals for personal use in the amounts permitted under 
  1.15  section 297C.09 or 340A.417; 
  1.16     (3) alcoholic beverages imported into Minnesota in 
  1.17  compliance with section 340A.417; and 
  1.18     (3) (4) a holder of a manufacturer's warehouse permit. 
  1.19     Sec. 2.  Minnesota Statutes 1998, section 340A.417, is 
  1.20  amended to read: 
  1.21     340A.417 [SHIPMENTS INTO MINNESOTA.] 
  1.22     Subdivision 1.  [RECIPROCAL SHIPPING PRIVILEGE; 
  1.23  REQUIREMENTS.] (a) Notwithstanding section 297G.07, subdivision 
  1.24  2, or any provision of this chapter, a winery licensed in a 
  1.25  state which affords Minnesota wineries an equal reciprocal 
  1.26  shipping privilege, or a winery located in Minnesota, may ship, 
  2.1   for personal use and not for resale, not more than two cases of 
  2.2   wine, containing a maximum of nine liters per case, in any 
  2.3   calendar year to any resident of Minnesota age 21 or 
  2.4   over.  Shipments under this section must be delivered by a 
  2.5   common carrier or delivery agent who holds a permit under 
  2.6   subdivision 2.  Delivery of a shipment under this section may 
  2.7   not be deemed a sale in this state.  
  2.8      (b) The shipping container of any wine sent under this 
  2.9   section must be clearly labeled to indicate that the package 
  2.10  cannot be delivered to a person under the age of 21 
  2.11  years. marked "Alcoholic Beverages; adult signature (over 21 
  2.12  years of age) required."  
  2.13     (c) No person may (1) advertise shipments authorized under 
  2.14  this section, (2) by advertisement or otherwise, solicit 
  2.15  shipments authorized by this section, or (3) accept orders for 
  2.16  shipments authorized by this section by use of the Internet.  No 
  2.17  shipper located outside Minnesota may advertise interstate 
  2.18  reciprocal wine shipments in Minnesota.  
  2.19     (d) It is not the intent of this section to impair the 
  2.20  distribution of wine through distributors or importing 
  2.21  distributors, but only to permit shipments of wine for personal 
  2.22  use. 
  2.23     (e) A winery shall file reports with the commissioner on a 
  2.24  monthly basis of the volume and retail value of the wine shipped 
  2.25  pursuant to this section.  The form of the report shall be 
  2.26  prescribed by the commissioner. 
  2.27     Subd. 2.  [COMMON CARRIER; PERMIT REQUIRED.] (a) No common 
  2.28  carrier or delivery agent shall deliver alcoholic beverages 
  2.29  under this section without a permit issued by the commissioner.  
  2.30  The permit fee shall be $50. 
  2.31     (b) The common carrier or delivery agent must require the 
  2.32  person who receives a delivery under this section to sign for 
  2.33  it, verify that the receiving person is at least 21 years of 
  2.34  age, and record proof of age.  The signature record and proof of 
  2.35  age must be kept for one year and shall be made available to the 
  2.36  commissioner on demand. 
  3.1      (c) A common carrier or delivery agent shall file reports 
  3.2   with the commissioner on a monthly basis of the source of wine, 
  3.3   volume of wine, and names of persons receiving wine shipped 
  3.4   pursuant to this section.  The form of the report shall be 
  3.5   prescribed by the commissioner. 
  3.6      (d) The permittee shall send all employees who deliver 
  3.7   alcoholic beverages to a training program approved by the 
  3.8   commissioner.  The program shall provide instruction about the 
  3.9   law relating to the sale and delivery of alcoholic beverages to 
  3.10  persons under 21 years of age, the related penalties, and the 
  3.11  permittee's policy with respect to such deliveries.  The 
  3.12  permittee shall keep a written record of the training provided 
  3.13  to each employee which shall be made available to the 
  3.14  commissioner on demand. 
  3.15     (e) Subd. 3.  [PENALTIES.] (a) No criminal penalty may be 
  3.16  imposed on a person for a violation of this section other than a 
  3.17  violation described in paragraph (f) or (g) (b).  Whenever it 
  3.18  appears to the commissioner that any person has engaged in any 
  3.19  act or practice constituting a violation of this section, and 
  3.20  the violation is not within two years of any previous violation 
  3.21  of this section, the commissioner shall issue and cause to be 
  3.22  served upon the person an order requiring the person to cease 
  3.23  and desist from violating this section.  The order must give 
  3.24  reasonable notice of the rights of the person to request a 
  3.25  hearing and must state the reason for the entry of the order.  
  3.26  Unless otherwise agreed between the parties, a hearing shall be 
  3.27  held not later than seven days after the request for the hearing 
  3.28  is received by the commissioner after which and within 20 days 
  3.29  after the receipt of the administrative law judge's report and 
  3.30  subsequent exceptions and argument, the commissioner shall issue 
  3.31  an order vacating the cease and desist order, modifying it, or 
  3.32  making it permanent as the facts require.  If no hearing is 
  3.33  requested within 30 days of the service of the order, the order 
  3.34  becomes final and remains in effect until modified or vacated by 
  3.35  the commissioner.  All hearings shall be conducted in accordance 
  3.36  with the provisions of chapter 14.  If the person to whom a 
  4.1   cease and desist order is issued fails to appear at the hearing 
  4.2   after being duly notified, the person shall be deemed in 
  4.3   default, and the proceeding may be determined against the person 
  4.4   upon consideration of the cease and desist order, the 
  4.5   allegations of which may be deemed to be true. 
  4.6      (f) (b) Any person who violates this section within two 
  4.7   years of a violation for which a cease and desist order was 
  4.8   issued under paragraph (e) (a), is guilty of a misdemeanor 
  4.9   felony. 
  4.10     (g) Any person who commits a third or subsequent violation 
  4.11  of this section, including a violation for which a cease and 
  4.12  desist order was issued under paragraph (c), within any 
  4.13  subsequent two-year period is guilty of a gross misdemeanor. 
  4.14     Sec. 3.  Minnesota Statutes 1998, section 340A.801, 
  4.15  subdivision 1, is amended to read: 
  4.16     Subdivision 1.  [RIGHT OF ACTION.] A spouse, child, parent, 
  4.17  guardian, employer, or other person injured in person, property, 
  4.18  or means of support, or who incurs other pecuniary loss by an 
  4.19  intoxicated person or by the intoxication of another person, has 
  4.20  a right of action in the person's own name for all damages 
  4.21  sustained against a person who caused the intoxication of that 
  4.22  person by illegally selling or delivering alcoholic beverages.  
  4.23  All damages recovered by a minor under this section must be paid 
  4.24  either to the minor or to the minor's parent, guardian, or next 
  4.25  friend as the court directs.