1.1                          A bill for an act
  1.2             relating to liquor; allowing bed and breakfast 
  1.3             establishments to furnish wine to guests without a 
  1.4             license under certain circumstances; regulating 
  1.5             on-sale intoxicating liquor license fees; allowing 
  1.6             off-sale retailers to offer samples of distilled 
  1.7             spirits; allowing brewers to furnish beer directly to 
  1.8             retailers for tastings; allowing off-sale retailers to 
  1.9             sell distilled spirits in 50 milliliter bottles; 
  1.10            allowing on-sale retailers to prohibit the carrying of 
  1.11            alcoholic beverages onto the licensed premises; 
  1.12            specifying items that may be sold in municipal liquor 
  1.13            stores; amending Minnesota Statutes 1994, sections 
  1.14            340A.408, subdivision 2; 340A.510; and 340A.601, 
  1.15            subdivision 1; proposing coding for new law in 
  1.16            Minnesota Statutes, chapter 340A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  [340A.4011] [BED AND BREAKFAST FACILITIES; WHEN 
  1.19  LICENSE NOT REQUIRED.] 
  1.20     Subdivision 1.  [DEFINITION.] For purposes of this section 
  1.21  "bed and breakfast facility" means a place of lodging that (1) 
  1.22  provides not more than eight rooms for rent to no more than 20 
  1.23  guests at a time; (2) is the owner's personal residence and is 
  1.24  occupied by the owner at the time of rental; (3) provides no 
  1.25  meals, other than breakfast served to persons who rent rooms; 
  1.26  and (4) was originally built and occupied as, or was converted 
  1.27  to, a single-family residence prior to being used as a place of 
  1.28  lodging. 
  1.29     Subd. 2.  [LICENSE NOT REQUIRED.] Notwithstanding section 
  1.30  340A.401, no license under this chapter is required for a bed 
  1.31  and breakfast facility to provide at no additional charge to a 
  2.1   person renting a room at the facility not more than two glasses 
  2.2   per day each containing not more than four fluid ounces of 
  2.3   wine.  Wine so furnished may be consumed only on the premises of 
  2.4   the bed and breakfast facility. 
  2.5      Sec. 2.  Minnesota Statutes 1994, section 340A.408, 
  2.6   subdivision 2, is amended to read: 
  2.7      Subd. 2.  [INTOXICATING LIQUOR; ON-SALE.] (a) The license 
  2.8   fee for a retail on-sale intoxicating liquor license is the fee 
  2.9   set by the city or county issuing the license subject to the 
  2.10  limitations imposed under this subdivision.  The license fee is 
  2.11  intended to cover the costs of (1) issuing ~~and inspecting and~~ 
  2.12  ~~other directly related costs of enforcement~~ the license; (2) 
  2.13  conducting an annual inspection of the licensed premises; and (3)
  2.14  investigating alleged violations of law or rule at the licensed 
  2.15  premises where a reasonable belief of a violation exists. 
  2.16     (b) The annual license fee for an on-sale intoxicating 
  2.17  liquor license issued by a municipality to a club must be no 
  2.18  greater than: 
  2.19     (1) $300 for a club with under 200 members; 
  2.20     (2) $500 for a club with between 201 and 500 members; 
  2.21     (3) $650 for a club with between 501 and 1,000 members; 
  2.22     (4) $800 for a club with between 1,001 and 2,000 members; 
  2.23     (5) $1,000 for a club with between 2,001 and 4,000 members; 
  2.24     (6) $2,000 for a club with between 4,001 and 6,000 members; 
  2.25  or 
  2.26     (7) $3,000 for a club with over 6,000 members. 
  2.27     (c) The license fee for the issuance of a wine license may 
  2.28  not exceed one-half of the license fee charged for an on-sale 
  2.29  intoxicating liquor license, or $2,000, whichever is less. 
  2.30     (d) The town board of a town in which an on-sale 
  2.31  establishment has been licensed by a county may impose an 
  2.32  additional license fee on each such establishment in an amount 
  2.33  not to exceed 20 percent of the county license fee. 
  2.34     Sec. 3.  Minnesota Statutes 1994, section 340A.510, is 
  2.35  amended to read: 
  2.36     340A.510 [SAMPLES.] 
  3.1      Subdivision 1.  [SAMPLES AUTHORIZED.] Off-sale licenses and 
  3.2   municipal liquor stores may provide samples of ~~malt liquor,~~ 
  3.3   ~~wine, liqueurs, and cordials~~ alcoholic beverages which the 
  3.4   licensee or municipal liquor store currently has in stock and is 
  3.5   offering for sale to the general public without obtaining an 
  3.6   additional license, provided the ~~wine, liqueur, and cordial~~ 
  3.7   alcoholic beverage samples are dispensed at no charge and 
  3.8   consumed on the licensed premises during the permitted hours of 
  3.9   off-sale in a quantity less than 100 milliliters of malt liquor 
  3.10  per variety per customer, 50 milliliters of wine per variety per 
  3.11  customer and 25 milliliters of liqueur, ~~or~~ cordial, or distilled 
  3.12  spirits per variety per customer. 
  3.13     Subd. 2.  [FURNISHING OF MALT LIQUOR.] Notwithstanding any 
  3.14  other law, a brewer may furnish malt liquor the brewer 
  3.15  manufactures directly to an off-sale retailer or municipal 
  3.16  liquor store if the malt liquor so delivered is dispensed by the 
  3.17  licensee or municipal liquor store solely for tastings 
  3.18  authorized under subdivision 1.  Malt liquor authorized to be 
  3.19  furnished under this subdivision may not be delivered or 
  3.20  otherwise handled by a malt liquor wholesaler. 
  3.21     Sec. 4.  [340A.511] [CERTAIN SIZES MAY BE SOLD.] 
  3.22     Notwithstanding any rule of the commissioner of public 
  3.23  safety, an off-sale retailer of intoxicating liquor may sell 
  3.24  distilled spirits in bottles of not more than 50 milliliters. 
  3.25     Sec. 5.  [340A.512] [INTRODUCTION OF ALCOHOLIC BEVERAGES 
  3.26  INTO LICENSED PREMISES.] 
  3.27     A licensed retailer of intoxicating liquor or 3.2 percent 
  3.28  malt liquor may prohibit any person from bringing into the 
  3.29  licensed premises any container of alcoholic beverages, or 
  3.30  consuming alcoholic beverages from such a container on the 
  3.31  licensed premises, without the licensee's permission. 
  3.32     Sec. 6.  Minnesota Statutes 1994, section 340A.601, 
  3.33  subdivision 1, is amended to read: 
  3.34     Subdivision 1.  [AUTHORITY.] A city having a population of 
  3.35  not more than 10,000 may establish, own, and operate a municipal 
  3.36  liquor store which may sell at retail ~~intoxicating liquor, 3.2~~ 
  4.1   ~~percent malt liquor, tobacco products, ice, soft drinks,~~ 
  4.2   ~~beverages for mixing intoxicating liquor, and food for~~ 
  4.3   ~~consumption on the premises~~ alcoholic beverages and (1) in the 
  4.4   case of a municipal liquor store that sells at off-sale only, 
  4.5   all items that may lawfully be sold in an exclusive liquor store 
  4.6   under section 340A.412, subdivision 14; or (2) in the case of a 
  4.7   municipal liquor store that sells at on-sale only, or at on-sale 
  4.8   and off-sale, any item that may lawfully be sold in an 
  4.9   establishment with an on-sale intoxicating liquor license.  A 
  4.10  municipal liquor store may also offer recorded or live 
  4.11  entertainment and make available coin-operated amusement devices.
  4.12     Sec. 7.  [EFFECTIVE DATE.] 
  4.13     Sections 1, 3, 4, 5, and 6 are effective the day following 
  4.14  final enactment.  Section 2 is effective June 1, 1996.