1.1 	A bill for an act
1.2 	relating to liquor; modifying law relating to
1.3 	wholesaler-retailer relationships; amending Minnesota
1.4 	Statutes 2004, sections 340A.308; 340A.318.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 340A.308, is
1.7 	amended to read:
1.8 	340A.308 PROHIBITED TRANSACTIONS.
1.9 	(a) Except as otherwise provided in section 340A.301, no
1.10 	brewer ~~or malt liquor wholesaler~~ may directly or indirectly, or
1.11 	through an affiliate or subsidiary company, or through an
1.12 	officer, director, stockholder, or partner:
1.13 	(1) give, or lend money, credit, or other thing of value to
1.14 	a retailer;
1.15 	(2) give, lend, lease, or sell furnishing or equipment to a
1.16 	retailer;
1.17 	(3) have an interest in a retail license; or
1.18 	(4) be bound for the repayment of a loan to a retailer.
1.19 	(b) No retailer may solicit any equipment, fixture,
1.20 	supplies, money, or other thing of value from a brewer ~~or malt~~
1.21 	~~liquor wholesaler~~ if furnishing of these items by the brewer ~~or~~
1.22 	~~wholesaler~~ is prohibited by law and the retailer knew or had
1.23 	reason to know that the furnishing is prohibited by law.
1.24 	(c) This section does not prohibit a manufacturer ~~or~~
1.25 	~~wholesaler~~ from:
2.1 	(1) furnishing, lending, or renting to a retailer outside
2.2 	signs, of a cost of up to $400 excluding installation and repair
2.3 	costs;
2.4 	(2) furnishing, lending, or renting to a retailer inside
2.5 	signs and other promotional material, of a cost of up to $300 in
2.6 	a year;
2.7 	(3) furnishing to or maintaining for a retailer equipment
2.8 	for dispensing malt liquor, including tap trailers, cold plates
2.9 	and other dispensing equipment, of a cost of up to $100 per tap
2.10 	in a year;
2.11 	(4) using or renting property owned continually since
2.12 	November 1, 1933, for the purpose of selling intoxicating or 3.2
2.13 	percent malt liquor at retail; or 
2.14 	(5) extending customary commercial credit to a retailer in
2.15 	connection with a sale of nonalcoholic beverages only, or
2.16 	engaging in cooperative advertising agreements with a retailer
2.17 	in connection with the sale of nonalcoholic beverages only~~; or~~ 
2.18 	~~(6) in the case of a wholesaler, with the prior written~~
2.19 	~~consent of the commissioner, selling beer on consignment to a~~
2.20 	~~holder of a temporary license under section 340A.403,~~
2.21 	~~subdivision 2, or 340A.404, subdivision 10~~.

2.22 	Sec. 2. Minnesota Statutes 2004, section 340A.318, is
2.23 	amended to read:
2.24 	340A.318 CREDIT EXTENSIONS RESTRICTED.
2.25 		Subdivision 1.Restriction. Except as provided in this
2.26 	section, no retail licensee may accept or receive credit, other
2.27 	than merchandising credit in the ordinary course of business for
2.28 	a period not to exceed 30 days, from a distiller,
2.29 	manufacturer, ~~or wholesaler of distilled spirits or wine,~~or
2.30 	agent or employee thereof.  No distiller~~,~~or manufacturer ~~or~~
2.31 	~~wholesaler~~ may extend the prohibited credit to a retail
2.32 	licensee.  No retail licensee delinquent beyond the 30-day
2.33 	period shall solicit, accept or receive credit or purchase or
2.34 	acquire distilled spirits or wine directly or indirectly, and no
2.35 	distiller~~,~~or manufacturer ~~or wholesaler~~ shall knowingly grant
2.36 	or extend credit nor sell, furnish,or supply distilled spirits
3.1 	or wine to a retail licensee who has been posted delinquent
3.2 	under subdivision 3.  No right of action shall exist for the
3.3 	collection of any claim based upon credit extended contrary to
3.4 	the provisions of this section.
3.5 		Subd. 2.Reporting. Every distiller~~,~~or manufacturer ~~or~~
3.6 	~~wholesaler~~ selling to retailers shall submit to the commissioner
3.7 	in triplicate not later than Thursday of each calendar week a
3.8 	verified list of the names and addresses of each retail licensee
3.9 	purchasing distilled spirits or wine from that distiller~~,~~or 
3.10 	manufacturer~~, or wholesaler~~ who, on the first day of that
3.11 	calendar week, was delinquent beyond the 30-day period, or a
3.12 	verified statement that no delinquencies exist which are
3.13 	required to be reported.  The name and address of each retail
3.14 	licensee who makes payment with a postdated check, or a check
3.15 	that is dishonored on presentment, must also be submitted to the
3.16 	commissioner at that time.  If a retail licensee previously
3.17 	reported as delinquent cures the delinquency by payment, the
3.18 	name and address of that licensee shall be submitted in
3.19 	triplicate to the commissioner not later than the close of the
3.20 	second full business day following the day the delinquency was
3.21 	cured.
3.22 		Subd. 3.Posting; notice. Verified lists or statements
3.23 	required by subdivision 2 shall be posted by the commissioner in
3.24 	offices of the department in places available for public
3.25 	inspection not later than the Monday following receipt.
3.26 	Documents posted shall constitute notice to every distiller~~,~~or 
3.27 	manufacturer~~, or wholesaler~~ of the information posted.  Actual
3.28 	notice, however received, also constitutes notice.
3.29 		Subd. 4.Miscellaneous provisions. The 30-day
3.30 	merchandising period allowed by this section shall commence with
3.31 	the day immediately following the date of invoice and shall
3.32 	include all successive days, including Sundays and holidays, to
3.33 	and including the 30th successive day.  In addition to other
3.34 	legal methods, payment by check during the period for which
3.35 	merchandising credit may be extended shall be considered
3.36 	payment.  All checks received in payment for distilled spirits
4.1 	or wine shall be deposited promptly for collection.  A postdated
4.2 	check or a check dishonored on presentation for payment does not
4.3 	constitute payment.  A retail licensee shall not be deemed
4.4 	delinquent for any alleged sale in any instance where there
4.5 	exists a bona fide dispute between the licensee and the
4.6 	distiller~~,~~or manufacturer ~~or wholesaler~~ as to the amount owing
4.7 	as a result of the alleged sale.  A delinquent retail licensee
4.8 	who engages in the retail liquor business at two or more
4.9 	locations shall be deemed to be delinquent with respect to each
4.10 	location. A retail licensee who engages in the retail liquor
4.11 	business at two or more locations means "a person or group of
4.12 	persons possessing 50 percent or more ownership in two or more
4.13 	locations."
4.14 		Subd. 5.License suspension or revocation. The license
4.15 	of any retail licensee, distiller, or manufacturer ~~or wholesaler~~ 
4.16 	violating any provision of this section shall be subject to
4.17 	suspension or revocation in the manner provided by this chapter.