Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1985, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1985
CHAPTER 305-H.F.No. 1145
An act relating to liquor; recodifying statutory
provisions relating to intoxicating liquor and
nonintoxicating malt liquor; amending Minnesota
Statutes 1984, sections 260.015, subdivision 22;
299A.02; 473F.02, subdivision 17; and 624.701;
proposing coding for new law in Minnesota Statutes,
chapter 171; proposing coding for new law as Minnesota
Statutes, chapters 297C and 340A; repealing Minnesota
Statutes 1984, sections 340.001 to 340.988.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
VIOLATIONS; PERSONS UNDER 19
Section 1. [171.171] [REVOCATIONS; ILLEGAL PURCHASE OF
ALCOHOLIC BEVERAGES.]
The commissioner shall suspend for a period of 30 days the
license of a person under the age of 19 years who is convicted
of purchasing or attempting to purchase an alcoholic beverage in
violation of section 340A.503 if the person used a drivers
license or permit to purchase or attempt to purchase the
alcoholic beverage.
ARTICLE 2
LIQUOR TAXATION
Section 1. [297C.01] [DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of this chapter the
following terms have the meaning given them unless the language
or context clearly indicates that a different meaning is
intended.
Subd. 2. [LIQUOR ACT.] For purposes of this chapter the
terms defined in article 3, section 1, have the meanings given
them in that section except as provided in this section.
Subd. 3. [COMMISSIONER.] "Commissioner" is the
commissioner of revenue.
Subd. 4. [COLLECTOR.] "Collector" is a person who collects
commemorative bottles for their use and enjoyment as collectors
items and not for the consumption of the beverage contained
therein and does not include licensed wholesalers or retailers
of alcoholic beverages.
Subd. 5. [COMMEMORATIVE BOTTLES.] "Commemorative bottles"
are ceramic commemorative bottles or other specially designed
decanters which have value as collectors items and which have
unbroken federal tax stamps thereon.
Sec. 2. [297C.02] [TAX IMPOSED.]
Subdivision 1. [DISTILLED SPIRITS AND WINE.] There is
imposed on all distilled spirits and wine manufactured,
imported, sold, or possessed in this state the following excise
tax:
Standard Metric
(a) Distilled spirits, $4.39 per gallon $1.16 per liter
liqueurs, cordials,
and specialties
regardless of
alcohol content
(excluding ethyl
alcohol)
(b) Wine containing 14 $.27 per gallon $.07 per liter
percent or less
alcohol by volume
(c) Wine containing more $.79 per gallon $.21 per liter
than 14 percent but
not more than 21
percent alcohol by
volume
(d) Wine containing more $1.58 per gallon $.42 per liter
than 21 percent but
not more than 24
percent alcohol by
volume
(e) Wine containing more $3.08 per gallon $.81 per liter
than 24 percent
alcohol by volume
(f) Natural and $1.50 per gallon $.40 per liter
artificial sparkling
wines containing
alcohol
The metric tax is imposed on all products taxable under this
subdivision when the net contents are stated in metric units of
measure.
In computing the tax on a package of distilled spirits or
wine a proportional tax at a like rate on all fractional parts
of a gallon or liter must be paid, except that the tax on a
fractional part of a gallon less than 1/16 of a gallon is the
same as for 1/16 of a gallon.
The tax on miniatures of two fluid ounces or less or 50
milliliters or less is 12 cents.
The commissioner of revenue may establish by rule a date
and procedure for the conversion of excise tax computation and
reporting from rates expressed in gallons to rates expressed in
metric volumes. The official conversion factor is one liter
equals 0.264172 U.S. gallons.
Subd. 2. [FERMENTED MALT BEVERAGES.] There is imposed on
the direct or indirect sale of fermented malt beverages the
following excise tax:
(1) On fermented malt beverages containing not more than
3.2 percent alcohol by weight, $2 per barrel of 31 gallons;
(2) On fermented malt beverages containing more than 3.2
percent alcohol by weight, $4 per barrel of 31 gallons.
The tax is at a proportional rate for fractions of a barrel
of 31 gallons.
Subd. 3. [TAX CREDIT.] A qualified brewer producing
fermented malt beverages is entitled to a tax credit of $2 per
barrel on the first 25,000 barrels in any fiscal year beginning
July 1, regardless of the alcohol content of the product.
Qualified brewers may take the credit on the 15th day of each
month, but the total credit allowed may not exceed the allowable
credit on more than 25,000 barrels produced and sold in
Minnesota in any fiscal year.
For purposes of this subdivision, a "qualified brewer"
means a brewer, whether or not located in this state,
manufacturing less than 100,000 barrels of fermented malt
beverages in the calendar year immediately preceding the
calendar year for which the credit under this subdivision is
claimed. In determining the number of barrels, all brands or
labels of a brewer must be combined. All facilities for the
manufacture of fermented malt beverages owned or controlled by
the same person, corporation, or other entity must be treated as
a single brewer.
Sec. 3. [297C.03] [PAYMENT OF TAX; WINE AND DISTILLED
SPIRITS.]
Subdivision 1. [MANNER AND TIME OF PAYMENT; PENALTIES;
DEPOSIT OF TAX PROCEEDS.] The tax on wines and distilled spirits
on which the excise tax has not been previously paid must be
paid to the commissioner by persons having on file with the
commissioner a sufficient bond as provided in subdivision 2 on
or before the tenth day of the month following the month in
which the first sale is made in this state by a licensed
manufacturer or wholesaler. Every person liable for the tax on
wines or distilled spirits imposed by section 2 must file with
the commissioner on or before the tenth day of the month
following first sale in this state by a licensed manufacturer or
wholesaler a return in the form prescribed by rule of the
commissioner, and must keep records and render reports required
by rule of the commissioner. A person liable for any tax on
wines or distilled spirits not having on file a sufficient bond
must pay the tax within 24 hours after first sale in this
state. The commissioner may certify to the commissioner of
public safety any failure to pay taxes when due as a violation
of a statute relating to the sale of intoxicating liquor for
possible revocation or suspension of license.
If a person fails to pay the tax within the time specified
or within 30 days after final determination of an appeal to the
Minnesota tax court relating thereto, there is added a penalty
equal to ten percent of the remaining unpaid amount. The
penalty must be collected as part of the tax. The amount of tax
not timely paid, together with the penalty, must bear interest
at the rate specified in section 270.75 from the time the tax
should have been paid until it is paid.
Subd. 2. [FAILURE TO FILE RETURN.] In case of a failure to
make and file a return as required by this chapter within the
time prescribed by law or by the commissioner under law, unless
it is shown that the failure is not due to willful neglect,
there must be added to the tax, in lieu of the ten percent
specific penalty in subdivision 1:
(1) ten percent if the failure is not for more than 30
days, and
(2) an additional five percent for each additional 30 days
or fraction thereof during which the failure continues.
The total fine may not exceed 25 percent in the aggregate.
The amount added to the tax must be collected at the same
time and in the same manner and as part of the tax. The amount
of the tax, together with the amount added, must bear interest
at the rate specified in section 270.75 from the time the tax
should have been paid until it is paid unless the tax has been
paid before the discovery of the neglect, in which case the
added amount must be collected in the same manner as the tax.
Subd. 3. [TAX EVASION.] If a person, with intent to evade
the tax, fails to file a required return or intentionally files
a false or fraudulent return, there is imposed an additional
penalty equal to 50 percent of the tax, found due for the period
covered by the return less any amount paid on the basis of the
false or fraudulent return. This penalty must be collected as
part of the tax and is in addition to other penalties collected
by law.
Subd. 4. [BOND.] Every person making sale of wines or
distilled spirits in this state on which a tax is imposed by
section 2 must file with the commissioner a bond or bonds, on
forms prescribed by the commissioner, with surety approved by
the commissioner. The bond must be in a penal sum to be
determined by the commissioner, not to exceed two times the
average monthly liability of that person for the preceding
calendar year, or for a new wholesaler an amount determined by
the commissioner based on an estimated two month liability.
Bonds must run to the state of Minnesota and must be conditioned
on the payment of all taxes due the state on wines and distilled
spirits and on the payment of all penalties imposed for failure
to pay taxes when due.
Subd. 5. [INVOICES AND BILLS OF LADING COVERING SHIPMENT
INTO THE STATE.] Every person shipping, or causing to be
shipped, into this state wines or distilled spirits must at the
time of shipment mail to the commissioner a true copy of the
invoice, bill of lading, memorandum of shipment, or other
document as the commissioner by rule requires, showing those
details the commissioner by rule requires.
Sec. 4. [297C.04] [PAYMENT OF TAX; MALT LIQUOR.]
The commissioner shall by rule provide a reporting method
for paying and collecting the excise tax on fermented malt
beverages. The rules must require reports to be filed with and
the excise tax to be paid to the commissioner on or before the
fifteenth day of the month following the month in which the
importation into or the first sale is made in this state,
whichever first occurs. If the excise tax is not paid when due,
the amount due is increased by a penalty of ten percent thereof,
and interest on the tax and penalty at an annual rate of 20
percent, adjusted as provided in section 270.75, from the date
the tax became due until paid.
Sec. 5. [297C.05] [RETURNS.]
Subdivision 1. [COMMISSIONER TO EXAMINE AND CORRECT
RETURN; COLLECTION OF DEFICIENCY.] As soon as practicable after
any return is filed as directed by this chapter, the
commissioner shall examine the return and correct it, if
necessary, according to the commissioner's best judgment and
information. The return, together with the commissioner's
corrections, if any, shall be prima facie correct and shall be
prima facie evidence of the correctness of the amount of tax
due, as shown therein. If the commissioner finds that any amount
of tax is due and unpaid, the commissioner shall notify the
taxpayer of the deficiency, stating that the taxpayer will be
assessed the amount due together with interest and penalties as
hereinafter provided. If a deficiency disclosed by the
commissioner's examination cannot be allocated to a particular
month or months, the commissioner shall notify the taxpayer of
the deficiency, assessing the amount due for a given period
without allocating it to any particular month or months,
together with the penalty provided in the case of other
corrected returns. If any taxpayer making any return shall die
or shall become incompetent at any time before the commissioner
issues a notice that an amount is due, that notice shall be
issued to the administrator, executor, or other legal
representative, as such, of that distributor.
Subd. 2. [MONTHLY TAX PAYMENTS; PENALTY FOR NONPAYMENT.]
All taxes shall be due and payable as directed in this chapter,
and taxes not paid shall bear interest at the rate specified in
section 270.75. The commissioner in issuing a final assessment
shall add to the amount of tax found due and unpaid a penalty of
ten percent thereof, except that, if the commissioner finds that
the taxpayer has made a false and fraudulent return with intent
to evade the tax imposed by this chapter, the penalty shall be
25 percent of the entire tax as shown by the corrected return.
If the tax is not paid within the time herein specified for the
payment thereof or within 30 days after final determination of
an appeal to the Minnesota tax court relating thereto, there
shall be added thereto a specific penalty equal to ten percent
of the amount so remaining unpaid, but in no event shall the
penalty for failure to pay the tax within the time provided for
payment be less than $10. The commissioner may extend the time
for paying the tax without penalty for good cause shown.
Subd. 3. [RECOVERY BY COMMISSIONER.] The commissioner may
recover the amount of any tax due and unpaid, interest, and any
penalty in a civil action. The collection of a tax, interest,
or penalty shall not bar any prosecution under this chapter.
Subd. 4. [PENALTY; MAXIMUM; MINIMUM; EXTENSION.] If any
return required to be filed under the provisions of this section
is not filed within the time specified, a penalty of five
percent of the unpaid tax remaining each month up to a maximum
of 25 percent is imposed. In no event shall the penalty for
failing to timely file a return be less than $10. The
commissioner of revenue may extend the time for filing a return
without penalty for good cause shown.
Sec. 6. [297C.06] [REFUNDS.]
The commissioner may refund to a taxpayer the amount of tax
paid under this chapter on intoxicating liquor or malt liquor
which becomes unfit for human consumption and is destroyed under
an order by a federal, state, or local agency while being held
for sale by a licensed retailer. Refunds shall be made only if
satisfactory proof is presented to the commissioner by the
taxpayer and the licensed retailer that the retailer was not
indemnified by insurance for the tax. The commissioner may
prescribe the method of proof required for obtaining the refund.
The commissioner may credit the amount determined under
this section against taxes otherwise payable under this chapter
by the taxpayer.
Claims for refund must be filed with the commissioner
within one year from the date of the destruction order. There
is appropriated annually from the general fund to the
commissioner the sums necessary to make the refunds provided by
this section.
Sec. 7. [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 article 5,
section 16.
(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.
Sec. 8. [297C.08] [DEPOSIT OF RECEIPTS.]
All tax revenues and other receipts payable to the state
under this chapter must be paid into the state treasury and
credited to the general fund.
Sec. 9. [297C.09] [IMPORTATION BY INDIVIDUALS.]
A person, other than a person under the age of 19 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 19 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 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. 10. [297C.10] [ENFORCEMENT.]
Subdivision 1. [ENFORCEMENT RESPONSIBILITY.] The
commissioners of public safety and revenue shall enforce and
administer the provisions of this chapter.
Subd. 2. [INSPECTION.] The commissioner of public safety
or the commissioner of revenue, or their duly authorized
employees, may, at all reasonable hours, enter in and upon a
licensed premises, and examine the books, papers, and records of
a brewer, manufacturer, wholesaler, or retailer for the purpose
of determining whether the excise tax has been paid, and may
inspect any premises where fermented malt beverages are
manufactured, sold, offered for sale, possessed, or stored for
the purpose of determining whether the provisions of this
chapter are being complied with.
Sec. 11. [297C.11] [EVASIONS.]
Subdivision 1. [ASSESSMENT, GENERALLY.] Except as
otherwise provided in this chapter, the amount of any tax due
shall be assessed within 3-1/2 years after the return is filed.
The taxes are deemed to have been assessed within the meaning of
this section whenever the commissioner of revenue has determined
the tax and computed and recorded the amount of tax due. If the
amount is found to be in excess of that originally declared on
the return, the taxes are deemed to have been assessed whenever
the commissioner has prepared a notice of tax assessment and
mailed it to the taxpayer. The notice of tax assessment shall
be sent by mail to the post office address given in the return
and the record of mailing shall be presumptive evidence of the
giving of notice, and such records shall be preserved by the
commissioner.
Subd. 2. [COMPUTATION OF TIME.] For the purposes of this
section, a return filed before the last day prescribed by law
for filing is considered as filed on the last day.
Subd. 3. [FALSE OR FRAUDULENT RETURN AND NO RETURN.] When
a company, joint stock association, copartnership, corporation,
or individual required to file a return under this chapter files
a false or fraudulent return or fails to file a return, the tax
may be assessed, and the attorney general may begin proceedings
at any time.
Subd. 4. [CONSENT TO EXTEND TIME.] Where, before the
expiration of the time prescribed in subdivision 1 for the
assessment of the tax, the commissioner of revenue and the
company, joint stock association, copartnership, corporation, or
individual filing the return consent in writing to an extension
of time for the assessment of the tax, the tax may be assessed
at any time prior to the expiration of the period agreed upon.
The period so agreed upon may be extended by subsequent
agreements in writing made before the expiration of the period
previously agreed upon.
Subd. 5. [OMISSION IN EXCESS OF 25 PERCENT.] If the
taxpayer omits an amount properly includable which is in excess
of 25 percent of the amount of tax stated in the return, the tax
may be assessed, or a proceeding in court for the collection of
the tax may be begun at any time within six years after the
return was filed.
Sec. 12. [297C.12] [UNTAXED LIQUOR; SEIZURE.]
Subdivision 1. [POSSESSION.] No person may without
authority possess distilled spirits and wine on which no tax has
been paid to a state or to a foreign government. No person may
without authority possess, with intent to resell, malt liquor on
which no tax has been paid to a state or to a foreign
government. The commissioner of public safety or the
commissioner of revenue, or their designated employees may seize
in the name of the state untaxed liquor possessed, held, sold,
or transported in violation of this subdivision, and any
apparatus, material, vehicle, or conveyance used in the
manufacture, possession, sale, storage, or transportation of
illegal untaxed liquor.
Subd. 2. [SEIZURE OF CONVEYANCES.] The commissioner of
public safety and employees designated by the commissioner may
seize all vehicles and conveyances used in the manufacture,
sale, possession, storage, or transportation of liquor in
violation of this chapter, and hold them subject to the order of
the district court of the county in which they are seized. The
forfeiture of a vehicle or conveyance seized is complete on
compliance with the following procedure:
The commissioner of public safety and inspectors and
employees designated by the commissioner shall file with the
court a separate complaint against the vehicle or conveyance,
describing it and charging its use in the specified violation,
and specifying substantially the time and place of the unlawful
use. A copy of the complaint must be served on the defendant or
person in charge of the vehicle or conveyance at the time of
seizure, if any. The court shall issue an order directed to any
person known or believed to have a right, title or interest in,
or lien on the vehicle or conveyance, and to persons unknown
claiming a right, title, interest, or lien:
(1) describing the vehicle or conveyance and stating that
it was seized and that a complaint against it, charging the
specified violation, has been filed with the court;
(2) requiring such persons to file with the clerk of the
court their answer to the complaint, setting forth any claim
they may have to a right or title to, interest in, or lien on
the vehicle or conveyance, within ten days after the service of
the order;
(3) notifying them in substance that if they fail to file
their answer within that time the vehicle or conveyance will be
ordered sold by the commissioner.
The court shall cause the order to be served on:
(1) the registered owner;
(2) any person who has duly filed a conditional sales
contract, mortgage, or other lien instrument covering the
property unless it has been released or satisfied;
(3) any other person known or believed to have a right,
title, interest in, or lien upon, the vehicle or conveyance as
in the case of a summons in a civil action; and
(4) on unknown persons by publication, as provided for
service of summons in a civil action.
If no answer is filed within the time prescribed, the court
shall, on affidavit by the clerk of the court, setting forth
such fact, order the vehicle or conveyance sold by the
commissioner or the commissioner's agents, and the proceeds of
the sale, after deducting the expense of keeping the vehicle or
conveyance and fees and costs of sale, paid into the state
treasury. If an answer is filed within the time provided, the
court shall fix a time for hearing, which shall be not less than
ten nor more than 30 days after the time for filing the answer
expires. At the hearing the matter must be heard and determined
by the court, without a jury, as in other civil actions. If the
court finds that the vehicle or conveyance, or any part thereof,
was used in a violation as specified in the complaint, it shall
order the vehicle or conveyance sold, as provided in this
section, unless the owner shows to the satisfaction of the court
that the vehicle was being used without the owner's consent or
that at the time of giving the consent the owner had no notice
or knowledge or reason to believe that the vehicle or conveyance
was intended to be used in a violation.
After deducting the expense of keeping the vehicle or
conveyance, the fee for seizure, and the costs of the sale, the
officer making the sale shall pay, according to their priority,
all liens established at the hearing as being bona fide and
existing without the lienor having any notice or knowledge at
the time the lien was created that the vehicle or conveyance was
being used or was intended to be used in connection with any
violation as specified in the order of the court, and shall pay
the balance of the proceeds into the state treasury. A sale
under the provisions of this section frees the vehicle or
conveyance sold from all liens, and appeal from order of the
district court lies to the supreme court as in other civil
actions. At any time after seizure and before the hearing the
vehicle or conveyance must be returned to the owner or person
having a legal right to its possession on execution by that
person of a valid bond to the state of Minnesota, with corporate
surety, in the sum of not less than $100 and not more than
double the value of the vehicle or conveyance seized, to be
approved by the court in which the case is triable, or a judge
thereof, conditioned on obeying any order and the judgment of
the court, and to pay the full value of the vehicle or
conveyance at the time of seizure.
Sec. 13. [297C.13] [VIOLATIONS.]
Subdivision 1. [FELONIES.] It is a felony for a holder of
an alcoholic beverage license to:
(1) evade or attempt to evade the excise tax on
intoxicating liquor and nonintoxicating malt liquor;
(2) fraudulently neglect or fail to keep complete accounts
in book or books of account, or to make true and exact entries
in them as required by the rules of the commissioner of public
safety and the commissioner of revenue, or by law;
(3) conspire to violate a provision of this chapter;
(4) fail to do or cause to be done anything required by law;
(5) refill or cause to be refilled a bottle or other
container of intoxicating liquor in order to evade tax; or
(6) sell intoxicating liquor or nonintoxicating malt liquor
on which the excise tax has not been paid and thereby evade the
tax.
Subd. 2. [GROSS MISDEMEANORS.] Any other violation of this
chapter is a gross misdemeanor except where a different penalty
is specified.
ARTICLE 3
DEFINITIONS
Section 1. [340A.101] [DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of this chapter the
following terms have the meanings given them.
Subd. 2. [ALCOHOLIC BEVERAGE.] "Alcoholic beverage" is any
beverage containing more than one-half of one percent alcohol by
volume.
Subd. 3. [AFFILIATE OR SUBSIDIARY COMPANY.] "Affiliate or
subsidiary company" is a company in which a manufacturer or its
stockholders own a majority of the stock.
Subd. 4. [BREWER.] "Brewer" is a person who manufactures
malt liquor for sale.
Subd. 5. [CITY.] "City" is a home rule charter or
statutory city unless otherwise specified.
Subd. 6. [COMMISSIONER.] "Commissioner" is the
commissioner of public safety except as otherwise provided.
Subd. 7. [CLUB.] "Club" is an incorporated organization
organized under the laws of the state for civic, fraternal,
social, or business purposes, for intellectual improvement, or
for the promotion of sports, or a congressionally chartered
veterans' organization, which:
(1) has more than 50 members;
(2) has owned or rented a building or space in a building
for more than one year that is suitable and adequate for the
accommodation of its members;
(3) is directed by a board of directors, executive
committee, or other similar body chosen by the members at a
meeting held for that purpose. No member, officer, agent, or
employee shall receive any profit from the distribution or sale
of beverages to the members of the club, or their guests, beyond
a reasonable salary or wages fixed and voted each year by the
governing body.
Subd. 8. [DEPARTMENT.] "Department" is the department of
public safety except as otherwise provided.
Subd. 9. [DISTILLED SPIRITS.] "Distilled spirits" is ethyl
alcohol, hydrated oxide of ethyl, spirits of wine, whisky, rum,
brandy, gin, and other distilled spirits, including all
dilutions and mixtures thereof, for nonindustrial use.
Subd. 10. [EXCLUSIVE LIQUOR STORE.] "Exclusive liquor
store" is an establishment used exclusively for the sale of
intoxicating liquor except for the incidental sale of ice,
tobacco, nonintoxicating malt liquor, beverages for mixing with
intoxicating liquor, and soft drinks may also be sold, and the
establishment may offer recorded or live entertainment and make
available coin-operated amusement devices. "Exclusive liquor
store" also includes an on-sale or combination on-sale and
off-sale intoxicating liquor establishment which sells food for
on-premise consumption when authorized by the municipality
issuing the license.
Subd. 11. [FARM WINERY.] "Farm winery" is a winery
operated by the owner of a Minnesota farm and producing table or
sparkling wines from grapes, grape juice, other fruit bases, or
honey with a majority of the ingredients grown or produced in
Minnesota.
Subd. 12. [GENERAL FOOD STORE.] "General food store" is a
business primarily engaged in selling food and grocery supplies
to the public for off-premise consumption.
Subd. 13. [HOTEL.] "Hotel" is an establishment where food
and lodging are regularly furnished to transients and which has:
(1) a resident proprietor or manager;
(2) a dining room serving the general public at tables and
having facilities for seating at least 30 guests at one time;
and
(3) guest rooms in the following minimum numbers: in
first-class cities, 50; in second-class cities, 25; in all other
cities, 10.
Subd. 14. [INTOXICATING LIQUOR.] "Intoxicating liquor" is
ethyl alcohol, distilled, fermented, spirituous, vinous, and
malt beverages containing more than 3.2 percent of alcohol by
weight.
Subd. 15. [LICENSED PREMISES.] "Licensed premises" is the
premises described in the approved license application.
Subd. 16. [MALT LIQUOR.] "Malt liquor" is any beer, ale,
or other beverage made from malt by fermentation and containing
not less than one-half of one percent alcohol by volume.
Subd. 17. [MANUFACTURER.] "Manufacturer" is a person who,
by a process of manufacture, fermenting, brewing, distilling,
refining, rectifying, blending, or by the combination of
different materials, prepares or produces intoxicating liquor
for sale.
Subd. 18. [MUNICIPALITY.] "Municipality" is a city, county
or, for purposes of licensing under article 6, section 4,
subdivision 7, the metropolitan airports commission.
Subd. 19. [NONINTOXICATING MALT LIQUOR.] "Nonintoxicating
malt liquor" is malt liquor containing not less than one-half of
one percent alcohol by volume nor more than 3.2 percent alcohol
by weight.
Subd. 20. [OFF-SALE.] "Off-sale" is the sale of alcoholic
beverages in original packages for consumption off the licensed
premises only.
Subd. 21. [ON-SALE.] "On-sale" is the sale of alcoholic
beverages for consumption on the licensed premises only.
Subd. 22. [PACKAGE.] "Package" is a sealed or corked
container of alcoholic beverages.
Subd. 23. [PERSON.] "Person" has the meaning given it in
section 645.44, subdivision 7.
Subd. 24. [POPULATION.] "Population" is determined by the
most recent federal decennial census or a special census taken
under law.
Subd. 25. [RESTAURANT.] "Restaurant" is an establishment,
other than a hotel, under the control of a single proprietor or
manager, where meals are regularly 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,
Lake, and St. Louis counties 100
(d) Unincorporated or unorganized
territory in Cook, Lake, 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.
Subd. 26. [RETAIL.] "Retail" is sale for consumption.
Subd. 27. [TABLE OR SPARKLING WINE.] "Table or sparkling
wine" is a beverage made without rectification or fortification
and containing not more than 25 percent of alcohol by volume and
made by the fermentation of grapes, grape juice, other fruits,
or honey.
Subd. 28. [WHOLESALER.] "Wholesaler" is a person who sells
alcholic beverages to persons to whom sale is permitted under
article 5, section 10, from a stock maintained in a warehouse in
the state.
Subd. 29. [WINE.] "Wine" is sparkling and carbonated wine,
wine made from condensed grape must, wine made from other
agricultural products than sound, ripe grapes, imitiation wine,
compounds sold as wine, vermouth, cider, perry and sake, in each
instance containing not less than seven percent nor more than 24
percent alcohol by volume for nonindustrial use.
ARTICLE 4
DEPARTMENT OF PUBLIC SAFETY
Section 1. [340A.201] [LIQUOR CONTROL AUTHORITY.]
The commissioner of public safety is the successor to the
commissioner of liquor control with respect to the powers and
duties vested in the latter as of February 6, 1976, except for
those powers and duties transferred to the commissioner of
revenue. Any proceeding, court action, prosecution, or other
business undertaken or commenced as of February 6, 1976, by the
commissioner of liquor control is assigned to the commissioners
of public safety and revenue as appropriate and may be completed
by them.
ARTICLE 5
MANUFACTURERS, WHOLESALERS, IMPORTERS
Section 1. [340A.301] [MANUFACTURERS AND WHOLESALERS
LICENSES.]
Subdivision 1. [LICENSES REQUIRED.] No person may directly
or indirectly manufacture or sell at wholesale intoxicating
liquor, or nonintoxicating malt liquor without obtaining an
appropriate license from the commissioner, except where
otherwise provided in this chapter. A manufacturer's license
includes the right to import. A licensed brewer of malt liquor
may sell products at wholesale without an additional license. A
licensed wholesaler of intoxicating malt liquor may sell
nonintoxicating malt liquor at wholesale without an additional
license. The business of manufacturer and wholesaler may be
combined and carried on under a single manufacturer's license.
Subd. 2. [PERSONS ELIGIBLE.] Licenses under this section
may be issued only to a person who:
(1) is a citizen of the United States or a resident alien;
(2) is of good moral character and repute;
(3) is 19 years of age or older;
(4) has not had a license issued under this chapter revoked
within five years of the date of 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; and
(5) has not been convicted within five years of the date of
license application of a felony, or of a willful violation of a
federal or state law, or local ordinance governing the
manufacture, sale, distribution, or possession for sale or
distribution of alcoholic beverages.
Subd. 3. [APPLICATION.] An application for a license under
this section must be made to the commissioner on a form the
commissioner prescribes.
Subd. 4. [BOND.] The commissioner may not issue a license
under this section to a person who has not filed a bond with
corporate surety, or cash, or United States government bonds
payable to the state. The proof of financial responsibility
must be approved by the commissioner before the license is
issued. The bond must be conditioned on the licensee obeying
all laws governing the business and paying when due all taxes,
fees, penalties and other charges, and must provide that it is
forfeited to the state on a violation of law. Bonds must be in
the following amounts:
Manufacturer's and wholesalers
of intoxicating liquor except
as provided in this subdivision $10,000
Manufacturers and wholesalers of wine
up to 25 percent alcohol by weight $5,000
Manufacturers and wholesalers of beer
of more than 3.2 percent alcohol by
weight $1,000
Subd. 5. [PERIOD OF LICENSE.] Licenses issued under this
section are valid for one year except that to coordinate
expiration dates initial licenses may be issued for a shorter
period.
Subd. 6. [FEES.] The annual fees for licenses under this
section are as follows:
(a) Manufacturers (except as provided
in clauses (b) and (c)) $7,500
Duplicates $3,000
(b) Manufacturers of wines of not more
than 25 percent alcohol by volume $ 500
(c) Brewers $1,250
(d) Wholesalers (except as provided in
clauses (e), (f), and (g)) $7,500
Duplicates $3,000
(e) Wholesalers of wines of not more
than 25 percent alcohol by volume $ 750
(f) Wholesalers of intoxicating
malt liquor $ 300
Duplicates $ 15
(g) Wholesalers of nonintoxicating
malt liquor $ 10
If a business licensed under this section is destroyed, or
damaged to the extent that it cannot be carried on, or if it
ceases because of the death or illness of the licensee, the
commissioner may refund the license fee for the balance of the
license period to the licensee or to the licensee's estate.
Subd. 7. [INTEREST IN OTHER BUSINESS.] A holder of a
license as a manufacturer, brewer, or wholesaler may not have
any ownership, in whole or in part, in a business holding a
retail intoxicating liquor or nonintoxicating malt liquor
license, but a manufacturer or wholesaler of intoxicating liquor
may use or have property rented for retail intoxicating liquor
sales if the manufacturer or wholesaler has owned the property
continuously since November 1, 1933.
Subd. 8. [SALES WITHOUT LICENSE.] A licensed brewer may
without an additional license sell malt liquor to employees or
retired former employees, in amounts of not more than 768 fluid
ounces in a week for off-premise consumption only. A collector
of commemorative bottles, those terms are as defined in article
2, section 1, subdivisions 4 and 5, may sell them to another
collector without a license. A licensed manufacturer of wine
containing not more than 25 percent alcohol by volume nor less
than 51 percent wine made from Minnesota-grown agricultural
products may sell at on-sale or off-sale wine made on the
licensed premises without a further license.
Subd. 9. [UNLICENSED MANUFACTURE.] Nothing in this chapter
requires a license for the natural fermentation of fruit juices
or brewing of beer in the home for family use.
Sec. 2. [340A.302] [IMPORTERS.]
Subdivision 1. [LICENSES REQUIRED.] Except as provided in
section 1, subdivision 1, no person may ship alcoholic beverages
or ethyl alcohol to a licensed manufacturer or wholesaler
without obtaining an importer's license from the commissioner.
Subd. 2. [TERMS; APPLICATION.] Importers' licenses must be
applied for on a form the commissioner prescribes. The form
must contain, along with information the commissioner requires,
an agreement on the part of the applicant to obey all laws
relating to the importation and sale of intoxicating liquor.
Subd. 3. [FEES.] Annual fees for licenses under this
section are as follows:
Importers of distilled spirts, wine,
or ethyl alcohol $300
Importers of malt liquor $200
Subd. 4. [BONDS.] The commissioner may, if needed to
protect revenue, require the holder of a license to import malt
liquor, file a bond in an amount of not less than $1,000 nor
more than $5,000, payable to the state and conditioned on the
payment of all excise taxes due the state.
Sec. 3. [340A.303] [TRANSFERS.]
A license under sections 1 or 2 may be transferred only
with the commissioner's consent. When a licensee is a
corporation a change in ownership of more than ten percent of
its stock must be reported to the commissioner within ten days
of the change.
Sec. 4. [340A.304] [LICENSE SUSPENSION AND REVOCATION.]
The commissioner may revoke, or suspend for up to 60 days,
a license issued under sections 1 or 2, or may impose a fine of
up to $1,000 for each violation, on a finding that the licensee
has violated a state law or rule of the commissioner relating to
the possession, sale, transportation, or importation of
alcoholic beverages. A license revocation or suspension under
this section is a contested case under sections 14.57 to 14.70
of the administrative procedure act.
Sec. 5. [340A.305] [WAREHOUSING.]
Subdivision 1. [FACILITIES.] All licensed wholesalers must
own or lease warehouse space within the state and must have
adequate delivery facilities to perform the function of a
wholesaler.
Subd. 2. [UNLOADING.] Except as provided in this chapter
alcoholic beverages manufactured outside the state may be
shipped into the state only to licensed wholesalers and must be
unloaded into the wholesaler's warehouse located in the state.
Licensed wholesalers may distribute alcoholic beverages only
from the warehouse.
Subd. 3. [RECIPROCITY.] The provisions of this section
relating to warehousing do not apply to a wholesaler of malt
liquor located in an adjoining state which permits wholesalers
licensed in Minnesota to deliver malt liquor to retailers
without warehousing in that state.
Subd. 4. [DIRECT SHIPMENT.] Notwithstanding the provisions
of this section, a manufacturer or United States importer of
intoxicating liquor manufactured outside Minnesota may
authorize, on a form the commissioner prescribes, a
Minnesota-licensed manufacturer or wholesaler to purchase
intoxicating liquor for direct shipment to another state, or may
appoint a Minnesota-licensed manufacturer or wholesaler as its
agent to sell or deliver intoxicating liquor to purchasers in
other states from the Minnesota warehouse inventory of the
Minnesota manufacturer or wholesaler.
Sec. 6. [340A.306] [FRAUDULENT SHIPMENTS.]
(a) It is unlawful for:
(1) any person to knowingly deliver or cause to be
delivered to a common carrier alcoholic beverages under a false
title, name, brand, or trade mark; or
(2) any person, or a common carrier, or an agent of either
to knowingly receive a fraudulent shipment under clause (1).
(b) A peace officer may examine the books and way bills of
a common carrier for the purpose of tracing a fraudulent
shipment to a shipper or receiver.
Sec. 7. [340A.307] [UNLAWFUL DISCRIMINATION.]
Subdivision 1. [NONDISCRIMINATORY SALES.] All licensed
importers must offer for sale on an equal basis to all licensed
wholesalers and manufacturers all intoxicating liquor brought
into the state of Minnesota.
Subd. 2. [PROHIBITED PRACTICES.] Without limiting
subdivision 1, the following are failures to offer intoxicating
liquor for sale on an equal basis and are unlawful:
(a) A refusal to sell to a wholesaler or manufacturer
intoxicating liquor offered for sale to any other wholesaler or
manufacturer, except when a wholesaler or manufacturer is in
arrears on payments for past purchases from the importer who
refuses to sell.
(b) A sale of intoxicating liquor to a wholesaler or
manufacturer at a price different from that offered to another
wholesaler or manufacturer, exclusive of shipping costs, except
that quantity discounts based on actual cost savings may be
uniformly offered to all wholesalers and manufacturers.
(c) A sale of intoxicating liquor to a wholesaler or
manufacturer on terms of purchase different from those offered
another wholesaler or manufacturer, except that when the
importer reasonably believes that a wholesaler or manufacturer
will be unable to comply with the existing terms of credit,
other terms may be employed, including denial of credit.
(d) Discrimination among wholesalers and manufacturers in
satisfying their respective demands for intoxicating liquor.
(e) A sale conditioned on an agreement which restricts the
wholesaler or manufacturer with respect to customers, area for
distribution, or resale price, or which otherwise restrains the
wholesaler or manufacturer from competing in trade and commerce.
(f) For purposes of this subdivision and subdivision 1
only, the term "intoxicating liquor" does not include "pop
wines" as they are defined by rule of the commissioner.
Subd. 3. [NONDISCRIMINATORY PRICES.] No licensed importer
or manufacturer may offer or sell to a licensed wholesaler
intoxicating liquor at a bottle or case price which is higher
than the lowest price at which the liquor is contemporaneously
being sold by the importer or manufacturer to a wholesaler
anywhere in any other state of the United States or in the
District of Columbia or to a state or state agency which owns
and operates retail liquor stores.
In determining the lowest price for which liquor is being
sold in any other state or in the District of Columbia, or to a
state or state agency which owns and operates retail liquor
stores, appropriate reductions must be made to reflect all
discounts, rebates, free goods, allowances, and other
inducements of any kind whatsoever offered or given to any
wholesaler, state, or state agency purchasing the liquor in
another state or in the District of Columbia. This subdivision
does not prevent differentials in price which make only due
allowance for differences in state taxes and fees, and in the
actual cost of delivery. As used in this subdivision, "state
taxes or fees" are the excise taxes imposed or the fees required
by any state or the District of Columbia based on a quantity of
liquor.
Subd. 4. [EXCEPTIONS.] Nothing in this section applies to
(a) wine or malt liquor of any alcohol content; or
(b) intoxicating liquor which is:
(1) further distilled, refined, rectified, or blended
within the state; and
(2) bottled within the state and labelled with the
importer's own labels after importation into the state.
Sec. 8. [340A.308] [PROHIBITED TRANSACTIONS.]
(a) No brewer or malt liquor wholesaler may directly or
indirectly, or through an affiliate or subsidiary company, or
through an officer, director, stockholder, or partner:
(1) give, or lend money, credit, or other thing of value to
a retailer;
(2) give, lend, lease, or sell furnishing or equipment to a
retailer;
(3) have an interest in a retail license; or
(4) be bound for the repayment of a loan to a retailer.
(b) This section does not prohibit a manufacturer or
wholesaler from:
(1) furnishing, lending, or renting to a retailer outside
signs, of a cost of up to $100 excluding installation and repair
costs;
(2) furnishing, lending, or renting to a retailer inside
signs and other promotional material, of a cost of up to $100 in
a year;
(3) furnishing to or maintaining for a retailer equipment
for dispensing malt liquor, of a cost of up to $100 per tap in a
year; or
(4) using or renting property owned continually since
November 1, 1933, for the purpose of selling intoxicating or
nonintoxicating malt liquor at retail.
Sec. 9. [340A.309] [EXCLUSIVE CONTRACTS.]
A manufacturer, brewer, or wholesaler may not directly or
indirectly make an agreement with a retailer which binds the
retailer to purchase the products of one manufacturer or brewer
to the exclusion of the products of other manufacturers and
brewers. A retailer who is a party to a violation of this
section or who receives the benefits of a violation is equally
guilty of a violation.
Sec. 10. [340A.310] [SALES TO WHOLESALERS.]
A wholesaler may sell intoxicating liquor or
nonintoxicating malt liquor only to municipal liquor stores,
government instrumentalities, or holders of alcoholic beverage
licenses issued under this chapter.
Sec. 11. [340A.311] [BRAND REGISTRATION.]
(a) A brand of intoxicating liquor or nonintoxicating malt
liquor may not be manufactured or imported into the state unless
the brand label has been registered with and approved by the
commissioner. The fee for brand registration is $20. The brand
label of a brand of intoxicating liquor or nonintoxicating malt
liquor which has not been sold in the state for two years or
more must be reregistered before its sale can be resumed. The
brand label of a brand of intoxicating liquor or nonintoxicating
malt liquor which has not been sold in the state for at least
three years is conclusively deemed abandoned by the manufacturer
or importer.
(b) In this section "brand" and "brand label" include
trademarks and designs used in connection with labels.
(c) A brand label may be registered only by the brand owner
or authorized agent. No brand may be imported into the state
for sale without the consent of the brand owner or authorized
agent. This section does not limit the provisions of article 5,
section 7.
Sec. 12. [340A.312] [JOINT PURCHASES; VOLUME PRICES.]
Subdivision 1. [JOINT PURCHASES.] The joint purchase by
two or more licensed retailers of up to 300, 1.75 liter or
smaller, bottles of distilled spirits or wine for resale to the
public is lawful.
Subd. 2. [VOLUME PRICES.] A variable volume price offered
by a wholesaler to a licensed retailer on sales of distilled
spirits or wine may not be for a quantity of more than 300
one-liter or smaller bottles.
Sec. 13. [340A.313] [PRICE FILING.]
Subdivision 1. [FILING.] A distilled spirits or wine brand
owner or wholesaler may not sell, offer for sale, or solicit
orders for distilled spirits or wine unless a schedule of
wholesale prices, including volume discounts, is filed with the
commissioner on a form prescribed by the commissioner. No sale
may be made at wholesale which is not in accordance with filed
prices. A filing must be made by the first day of each month
and is effective for the remainder of the month, except that any
filed price may be amended within five days of its filing.
Subd. 2. [INSPECTION.] The commissioner shall maintain
price filings in a manner so as to make them easily accessible
to the public. The commissioner shall provide copies of the
filings to any person requesting them, and may charge a
reasonable fee for copies.
Sec. 14. [340A.314] [SUGGESTED RETAIL PRICES.]
No wholesaler or other person may communicate in any manner
to an off-sale licensee a suggested retail price for the sale of
intoxicating liquor.
Sec. 15. [340A.315] [FARM WINERY LICENSE.]
Subdivision 1. [LICENSES.] The commissioner may issue a
farm winery license to the owner or operator of a farm winery
located within the state and producing table or sparkling
wines. Licenses may be issued and renewed for an annual fee of
$25, which is in lieu of all other license fees required by this
chapter.
Subd. 2. [SALES.] A license authorizes the sale, on the
farm winery premises, of table or sparkling wines produced by
that farm winery at on-sale or off-sale, in retail, or wholesale
lots in total quantities not in excess of 50,000 gallons in a
calendar year, glassware, wine literature and accessories, and
the dispensing of free samples of the wines offered for sale.
Sales at on-sale and off-sale may be made on Sundays between
12:00 noon and 12:00 midnight. Labels for each type or brand
produced must be registered with the commissioner, without fee
prior to sale.
Subd. 3. [APPLICABILITY.] Except as otherwise specified in
this section, all provisions of this chapter govern the
production, sale, possession, and consumption of table or
sparkling wines produced by a farm winery.
Subd. 4. [MINNESOTA PRODUCTS.] If Minnesota produced or
grown grapes, grape juice, other fruit bases, or honey is not
available in quantities sufficient to constitute a majority of
the table or sparkling wine produced by a farm winery, the
holder of the farm winery license may file an affidavit stating
this fact with the commissioner. If the commissioner, after
consultation with the commissioner of agriculture, determines
this to be true, the farm winery may use imported products and
shall continue to be governed by the provisions of this section.
The affidavit is effective for a period of one year, after which
time the farm winery must use the required amount of Minnesota
products as provided by subdivision 1 unless the farm winery
holder files a new affidavit with the commissioner.
Sec. 16. [340A.316] [SACRAMENTAL WINE.]
The commissioner may issue licenses for the importation and
sale of wine exclusively for sacramental purposes. The holder
of a sacramental wine license may sell wine only to a rabbi,
priest, or minister of a church, or other established religious
organization, or individual members of a religious organization
who conduct ceremonies in their homes, if the purchaser
certifies in writing that the wine will be used exclusively for
sacramental purposes in religious ceremonies. The annual fee
for a sacramental wine license is $25. Each licensee must also
post a $1,000 penal bond in favor of the state, conditioned upon
compliance with this section.
A rabbi, priest, or minister of a church or other
established religious organization may import wine exclusively
for sacramental purposes without a license.
ARTICLE 6
RETAIL LICENSES
Section 1. [340A.401] [LICENSE REQUIRED.]
Except as provided in this chapter, no person may directly
or indirectly, on any pretence or by any device, sell, barter,
keep for sale, or otherwise dispose of alcoholic beverages as
part of a commercial transaction without having obtained a
license.
Sec. 2. [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 19 years of age;
(3) a person who within five years of the license
application has been convicted of a willful violation of a
federal or state law or local ordinance governing the
manufacture, sale, distribution, or possession for sale or
distribution, of intoxicating or nonintoxicating malt liquors;
(4) 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; or
(5) a person not of good moral character and repute.
Sec. 3. [340A.403] [NONINTOXICATING MALT LIQUOR LICENSES.]
Subdivision 1. [ISSUANCE BY COUNTY OR CITY.] The governing
body of a city or county may issue off-sale or on-sale licenses
for the sale of nonintoxicating malt liquor within their
respective jurisdictions.
Subd. 2. [TEMPORARY LICENSES.] (a) A club or charitable,
religious, or nonprofit organization may be issued a temporary
on-sale license for the sale of nonintoxicating malt liquor.
(b) The temporary license may authorize the sale of
nonintoxicating malt liquor in any school or school buildings.
(c) Temporary licenses are subject to the terms set by the
issuing county or city.
Sec. 4. [340A.404] [INTOXICATING LIQUOR; ON-SALE
LICENSES.]
Subdivision 1. [CITIES.] A city may issue an on-sale
intoxicating liquor license to the following establishments
located within its jurisdiction:
(1) hotels;
(2) restaurants;
(3) clubs or congressionally chartered veterans
organizations provided that the organization has been in
existence for at least three years and liquor sales will only be
to members and bona fide guests;
(4) sports facilities located on land owned by the
metropolitan sports commission; and
(5) exclusive liquor stores.
Subd. 2. [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] The
city of Minneapolis may issue an on-sale intoxicating liquor
license to the Guthrie Theatre and the Cricket Theatre
notwithstanding the limitations of law, or local ordinance, or
charter provision relating to zoning or school or church
distances. The licenses authorize sales on all days of the week
to holders of tickets for dramatic performances presented by the
theatres and to members of the nonprofit corporations holding
the licenses and to their guests.
Subd. 3. [NOTICE TO THE COMMISSIONER.] A city shall within
ten days of the issuance of a license under subdivision 1,
inform the commissioner of the licensee's name and address and
trade name, and the effective date and expiration date of the
license. The city shall also inform the commissioner of a
license transfer, cancellation, suspension, or revocation during
the license period.
Subd. 4. [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR
CULTURAL FACILITIES.] The governing body of a municipality may
authorize a holder of a retail on-sale intoxicating liquor
license issued by the municipality or by an adjacent
municipality to dispense intoxicating liquor at any convention,
banquet, conference, meeting, or social affair conducted on the
premises of a sports, convention, or cultural facility owned by
the municipality or instrumentality thereof having independent
policymaking and appropriating authority and located within the
municipality. 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. The licensee may
not dispense intoxicating liquor to any person attending or
participating in an amateur athletic event held on the premises.
Subd. 5. [WINE LICENSES.] A municipality may issue an
on-sale wine license with the approval of the commissioner to a
restaurant having facilities for seating at least 25 guests at
one time. A wine license permits the sale of wine of up to 14
percent alcohol by volume for consumption with the sale of food.
Subd. 6. [COUNTIES.] A county board may issue an on-sale
intoxicating liquor license within the area of the county that
is unorganized or unincorporated, to a restaurant or club with
the approval of the commissioner.
Subd. 7. [AIRPORTS COMMISSION.] On-sale licenses may be
issued by the metropolitan airports commission for the sale of
intoxicating liquor in major airports owned by the metropolitan
airports commission and used as terminals for regularly
scheduled air passenger service.
Subd. 8. [LAKE SUPERIOR TOUR BOATS.] (a) The commissioner
may issue an on-sale intoxicating liquor license to a person
regularly engaged, on an annual or seasonal basis, in the
business of offering tours by boat on Lake Superior and adjacent
bays. The license shall authorize the sale of intoxicating
liquor for consumption on the boat while underway or attached to
a dock or other mooring. No license may be issued unless each
boat used in the tour business regularly sells meals in the
place where intoxicating liquor is sold.
(b) All sales of intoxicating liquor made on a boat while
it is attached to a dock or other mooring are subject to any
restrictions on the sale of liquor prescribed by the governing
body of the city where the boat is attached, or of a county when
it is attached outside a city. A governing body may prohibit
liquor sales within its jurisdiction but may not require an
additional license, or require a fee or occupation tax, for the
sales.
(c) If a boat is moored for a period of at least three
consecutive months, the city may require the boat to obtain an
on-sale intoxicating liquor license from the city, and the fee
charged for the license must not exceed one-half the fee charged
for a comparable annual on-sale intoxicating liquor license.
Subd. 9. [MILITARY BASES AND INSTALLATIONS.] The
commissioner may issue an on-sale license for the sale of
intoxicating liquor within the boundaries of a military base or
installation under the jurisdiction of the adjutant general with
the approval of the adjutant general. No municipal or county
license is required for the sale of intoxicating liquor under
this subdivision.
Sec. 5. [340A.405] [INTOXICATING LIQUOR; OFF-SALE
LICENSES.]
Subdivision 1. [CITIES.] A city may issue with the approval
of the commissioner, an off-sale intoxicating liquor license to
an exclusive liquor store or to a drugstore. Cities of the
first class may also issue an off-sale license to a general food
store.
Subd. 2. [COUNTIES.] A county may issue an off-sale
intoxicating license with the approval of the commissioner to
exclusive liquor stores located within unorganized territory of
the county.
Subd. 3. [TOWNS.] The town board of a town exercising
powers under section 368.01, subdivision 1, may issue an
off-sale intoxicating liquor license with the approval of the
commissioner to an exclusive liquor store located within the
town.
Sec. 6. [340A.406] [INTOXICATING LIQUOR; COMBINATION
LICENSES.]
A city of the fourth class or a statutory city of 10,000 or
fewer population may issue an off-sale and on-sale intoxicating
liquor license to the same licensee or, in lieu of issuing
on-sale and off-sale licenses separately to a licensee, may
issue a combination on-sale and off-sale license. A city may
continue to issue licenses under this subdivision when the
population of the city exceeds 10,000 population.
Sec. 7. [340A.407] [COMMON CARRIERS.]
The commissioner may issue an on-sale license to a person
certificated by either the state or the United States of
America, or an agency thereof, as a common carrier engaged in
the business of transporting persons for hire in interstate or
intrastate commerce to sell intoxicating or nonintoxicating malt
liquor in a place where meals are sold. A license issued under
this subdivision only authorizes the sale of intoxicating or
nonintoxicating malt liquor to a bona fide passenger who is
actually being transported in interstate or intrastate commerce.
Sec. 8. [340A.408] [RETAIL LICENSE FEES.]
Subdivision 1. [NONINTOXICATING MALT LIQUOR.] (a) The
license fee for an on-sale and off-sale nonintoxicating malt
liquor license is the fee set by the county or city issuing the
license.
(b) One-half of the license fee received by a county for a
retail license to sell nonintoxicating malt liquor within any
town in the county shall be paid to the town board where the
business is located.
Subd. 2. [INTOXICATING LIQUOR; ON-SALE.] (a) The license
fee for a retail on-sale intoxicating liquor license is the fee
set by the city or county issuing the license subject to the
limitations imposed under this subdivision.
(b) The annual license fee for an on-sale intoxicating
liquor license issued by a city to a club must be no greater
than:
(1) $300 for a club with under 200 members;
(2) $500 for a club with between 201 and 500 members;
(3) $650 for a club with between 501 and 1,000 members;
(4) $800 for a club with between 1,001 and 2,000 members;
(5) $1,000 for a club with between 2,001 and 4,000 members;
(6) $2,000 for a club with between 4,001 and 6,000 members;
or
(7) $3,000 for a club with over 6,000 members.
(c) The license fee for the issuance of a wine license may
not exceed one-half of the license fee charged for an on-sale
intoxicating liquor license, or $2,000, whichever is less.
(d) The town board of a town in which an on-sale
establishment has been licensed by a county may impose an
additional license fee on each such establishment in an amount
not to exceed 20 percent of the county license fee.
Subd. 3. [INTOXICATING LIQUOR; OFF-SALE.] (a) The annual
license fee for an off-sale intoxicating liquor license issued
by a city, when combined with any occupation tax imposed by the
city, may not exceed the following limits:
(1) $1,000 for cities of the first class;
(2) $200 for cities over 10,000 other than cities of the
first class;
(3) $150 for cities of between 5,000 and 10,000 population;
and
(4) $100 for cities with less than 5,000 population.
(b) The annual license fee for an off-sale intoxicating
liquor license issued by a county or town shall not exceed $500.
Subd. 4. [LAKE SUPERIOR TOUR BOATS; COMMON CARRIERS.] (a)
The annual license fee for licensing of Lake Superior tour boats
under article 6, section 4, subdivision 8, shall be $1,000.
(b) The annual license fee for common carriers licensed
under article 6, section 7 is:
(1) $25 for nonintoxicating malt liquor, and $2 for a
duplicate license; and
(2) $100 for intoxicating liquor, and $10 for a duplicate
license.
Subd. 5. [REFUNDS.] A pro rata share of an annual license
fee for a retail license to sell intoxicating or nonintoxicating
malt liquor, either on-sale or off-sale, may be refunded to the
licensee or to the licensee's estate if:
(1) the business ceases to operate because of destruction
or damage;
(2) the licensee dies;
(3) the business ceases to be lawful for a reason other
than a license revocation; or
(4) the licensee ceases to carry on the licensed business
under the license.
Sec. 9. [340A.409] [LIABILITY INSURANCE.]
Subdivision 1. [INSURANCE REQUIRED.] No retail license may
be issued or renewed unless the applicant demonstrates proof of
financial responsibility with regard to liability imposed by
article 10, section 1. The issuing authority must submit to the
commissioner the applicant's proof of financial responsibility.
This subdivision does not prohibit a local unit of government
from requiring higher insurance or bond coverages, or a larger
deposit of cash or securities. The minimum requirement for
proof of financial responsibility may be given by filing:
(1) a certificate that there is in effect for the license
period an insurance policy or pool providing at least $50,000 of
coverage because of bodily injury to any one person in any one
occurrence, $100,000 because of bodily injury to two or more
persons in any one occurrence, $10,000 because of injury to or
destruction of property of others in any one occurrence, $50,000
for loss of means of support of any one person in any one
occurrence, and $100,000 for loss of means of support of two or
more persons in any one occurrence;
(2) a bond of a surety company with minimum coverages as
provided in clause (1); or
(3) a certificate of the state treasurer that the licensee
has deposited with the state treasurer $100,000 in cash or
securities which may legally be purchased by savings banks or
for trust funds having a market value of $100,000.
Subd. 2. [MARKET ASSISTANCE.] The commissioner of commerce
shall advise licensees and municipalities subject to the
financial responsibility requirements of subdivision 1 of those
persons offering insurance coverage. The commissioner of
commerce shall establish a program to assist licensees in
obtaining insurance coverage. The program shall include a
committee appointed by the commissioner of commerce of a
representative group of insurance carriers and producers. The
commissioner of commerce shall serve as an ex officio member of
the committee. The committee shall review and act upon all
properly executed applications requesting liquor liability
market assistance. The market assistance program shall continue
to function so long as its services are deemed by the
commissioner of commerce to be necessary to relieve perceived
availability problems in the liquor liability insurance market.
If the committee finds that it cannot assist in securing
insurance coverage, it shall notify the applicant in writing
with a full explanation and recommendation for enhancing its
ability to secure insurance. The commissioner of commerce
shall, if necessary, establish an assigned risk plan pursuant to
subdivision 3.
Subd. 3. [ASSIGNED RISK PLAN.] (a) The purpose of the
assigned risk plan is to provide coverage required by
subdivision 1 to persons rejected under this subdivision.
(b) An insurer that refuses to write the coverage required
by subdivision 1 shall furnish the applicant with a written
notice of refusal. The rejected applicant shall file a copy of
the notice of refusal with the commissioner of public safety and
with the assigned risk plan at the time of application for
coverage under the plan.
(c) The commissioner of commerce may enter into service
contracts as necessary or beneficial to accomplish the purposes
of the assigned risk plan including servicing of policies or
contracts of coverage, data management, and assessment
collections. Services related to the administration of policies
or contracts of coverages must be performed by one or more
qualified insurance companies licensed pursuant to section
60A.06, subdivision 1, clause (13), or a qualified vendor of
risk management services. A qualified insurer or vendor of risk
management services must possess sufficient financial,
professional, administrative, and personnel resources to provide
the services required for operation of the plan. The cost of
all services contracted for are an obligation of the assigned
risk plan.
(d) The commissioner of commerce may assess all insurers
licensed under section 60A.06, subdivision 1, clause (13), an
amount sufficient to fully fund the obligations of the assigned
risk plan if the commissioner determines that the assets of the
assigned risk plan are insufficient to meet its obligations. The
assessment of each insurer must be in a proportion equal to the
proportion which the amount of insurance written as reported on
page 14 of the annual statement under line 5, commercial
multi-peril, and line 17, other liability, during the preceding
calendar year by that insurer bears to the total written by all
such carriers for such lines.
(e) Policies and contracts of coverage issued under this
subdivision must contain the usual and customary provisions of
liability insurance policies, and must contain the minimum
coverage required by subdivision 1 or the local governing unit.
(f) Assigned risk policies and contracts of coverage are
subject to premium tax pursuant to section 60A.15.
(g) Insureds served by the assigned risk plan must be
charged premiums based upon a rating plan approved by the
commissioner of commerce. Assigned risk premiums may not be
lower than rates generally charged by insurers for the
business. The commissioner of commerce shall fix the
compensation received by the agent of record.
(h) The commissioner of commerce may adopt rules, including
temporary rules, needed to implement this subdivision. The
rules may include:
(1) appeal procedures from actions of the assigned risk
plan;
(2) formation of an advisory committee composed of
insurers, vendors of risk management services and licensees, to
advise the commissioner of commerce regarding operation of the
plan; and
(3) applicable rating plans and rating standards.
Subd. 4. [INSURANCE NOT REQUIRED.] Subdivision 1 does not
apply to licensees who by affidavit establish that:
(1) they are on-sale nonintoxicating malt liquor licensees
with sales of less than $10,000 of nonintoxicating malt liquor
for the preceding year;
(2) they are off-sale nonintoxicating malt liquor licensees
with sales of less than $20,000 of nonintoxicating malt liquor
for the preceding year; and
(3) they are holders of on-sale wine licenses with sales of
less than $10,000 for wine for the preceding year.
Sec. 10. [340A.410] [LICENSE RESTRICTIONS; GENERAL.]
Subdivision 1. [COUNTIES; TOWN CONSENT.] A county may not
issue a retail license to sell any alcoholic beverage within an
organized town unless the governing body of the town has
consented to the issuance of the license.
Subd. 2. [COUNTIES; RECOMMENDATION AND REVIEW OF
APPLICANTS.] (1) No county may issue or renew a retail license
to sell any alcoholic beverage until the county board has
received a written recommendation from the sheriff and county
attorney stating that to the best of their knowledge that the
applicant is eligible to be licensed under section 340A.402. A
copy of the statements must be given to the town board if a
town's consent is required issuance of the license under
subdivision 3.
(2) The county board shall consider the recommendations of
the sheriff and county attorney, the character and reputation of
the applicant, and the nature and location of the business prior
to issuance of any license.
Subd. 3. [LICENSE EXTENSION; DEATH OF LICENSEE.] In the
case of the death of a retail licensee to sell alcoholic
beverages, the personal representative is authorized to continue
operation of the business for not more than 90 days after the
death of the licensee.
Subd. 4. [LICENSE POSTING.] A retail license to sell
alcoholic beverages must be posted in a conspicuous place in the
premises for which it is used.
Subd. 5. [GAMBLING PROHIBITED.] (a) No retail
establishment licensed to sell alcoholic beverages may keep,
possess, or operate, or permit the keeping, possession, or
operation on the licensed premises of dice or any gambling
device as defined in section 349.30, or permit gambling therein
except as provided in this subdivision.
(b) Gambling equipment may be kept or operated and raffles
conducted on licensed premises and adjoining rooms when the use
of the gambling equipment is authorized under chapter 349.
Subd. 6. [RACIAL DISCRIMINATION; CLUBS.] No retail license
to sell alcoholic beverages may be issued or renewed by a
municipality or county to a club which discriminates against
members or applicants for membership or guests of members on the
basis of race.
Subd. 7. [LICENSE LIMITED TO SPACE SPECIFIED.] A retail
license to sell any alcoholic beverage is only effective for the
compact and contiguous space specified in the approved license
application.
Sec. 11. [340A.411] [LICENSE RESTRICTIONS; NONINTOXICATING
MALT LIQUOR LICENSES.]
Subdivision 1. [ON-SALE LICENSES.] On-sale nonintoxicating
liquor licenses may only be issued to drugstores, restaurants,
hotels, clubs, and establishments used exclusively for the sale
of nonintoxicating malt liquor with the incidental sale of
tobacco and soft drinks.
Subd. 2. [LICENSE DURATION.] All retail nonintoxicating
malt liquor licenses must be issued for one year, except that
for the purpose of coordinating the time of expiration of
licenses in general, licenses may be issued for a shorter time,
in which case a pro rata license fee must be charged.
Sec. 12. [340A.412] [LICENSE RESTRICTIONS; INTOXICATING
LIQUOR LICENSES.]
Subdivision 1. [BOND REQUIRED.] A local unit of government
shall not grant a retail license to sell intoxicating liquor
until the applicant has filed a bond with corporate surety, or
cash, or United States government bonds in the amount of not
less than $3,000 nor more than $5,000 for on-sale licenses, and
not less than $1,000 nor more than $3,000 for off-sale
licenses. A common carrier who applies for a license to sell
intoxicating liquor under article 6, section 7, must file with
the commissioner a bond with corporate surety, or cash, or
government bonds in the sum of $1,000. A bond filed under this
subdivision must be conditional on the licensee obeying all laws
governing the business and paying all taxes, fees, penalties,
and other charges, and must provide that the bond is forfeited
to the unit of government issuing the license on a violation of
law. The commissioner must approve all bonds filed by
applicants for an off-sale license.
Subd. 2. [INVESTIGATION OF ON-SALE LICENSES.] (a) The city
or county having jurisdiction over on-sale licenses to sell
intoxicating liquor shall on initial application for an on-sale
license or on application for a transfer of an existing license
conduct a preliminary background and financial investigation of
the applicant. The application must be in the form prescribed
by the bureau of criminal apprehension and with any additional
information as the governing body of the city or county having
jurisdiction over the license requires. If the governing body
of the city or county having jurisdiction determines or if the
bureau of criminal apprehension on its own initiative determines
that a comprehensive background and investigation of the
applicant is necessary, the governing body may conduct the
investigation itself or contract with the bureau of criminal
apprehension for the investigation. In addition, an
investigation may be required prior to renewal of an existing
on-sale license when the governing body of the city or county
deems it in the public interest. An investigation fee not to
exceed $500 shall be charged an applicant by the city or county
if the investigation is conducted within the state, or the
actual cost not to exceed $10,000 if the investigation is
required outside the state.
(b) No license may be issued, transferred, or renewed if
the results of the investigation show, to the satisfaction of
the governing body, that issuance, transfer, or renewal would
not be in the public interest.
Subd. 3. [LIMITATIONS ON ISSUANCE OF LICENSES TO ONE
PERSON OR PLACE.] (a) No more than one off-sale intoxicating
liquor license may be directly or indirectly issued to any one
person or for any one place in each city or county.
(b) For the purpose of this subdivision, the term
"interest":
(1) includes any pecuniary interest in the ownership,
operation, management, or profits of a retail liquor
establishment, and a person who receives money from time to time
directly or indirectly from a licensee, in the absence of
consideration and excluding gifts or donations, has a pecuniary
interest in the retail license; and
(2) does not include loans; rental agreements; open
accounts or other obligations held with or without security
arising out of the ordinary and regular course of business of
selling or leasing merchandise, fixtures, supplies to the
establishment; an interest in a corporation owning or operating
a hotel but having at least 150 or more rental units holding a
liquor license in conjunction therewith; or ten percent or less
interest in any other corporation holding a license.
(c) In determining whether an "interest" exists, the
transaction must have been bona fide and the reasonable value of
the goods and things received as consideration for a payment by
the licensee and all other facts reasonably tending to prove or
disprove the existence of a purposeful scheme or arrangement to
evade the restrictions of this subdivision must be considered.
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 article 6, section 16,
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 Winona and Southwest State University, provided
that 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 at Mankato State University the distance is
measured from the front door of the student union of the
Highland campus; 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.
Subd. 5. [LICENSES IN CONNECTION WITH PREMISES OF
ANOTHER.] An intoxicating liquor license may not be issued to a
person in connection with the premises of another to whom a
license could not be issued under the provisions of this
chapter. This subdivision does not prevent the granting of a
license to a proper lessee because the person has leased the
premises of a minor, a noncitizen who is not a resident alien,
or a person who has been convicted of a crime other than a
violation of this chapter.
Subd. 6. [OFF-SALE LICENSES WHERE NONINTOXICATING MALT
LIQUOR IS SOLD.] An off-sale intoxicating liquor license may not
be issued to a place where nonintoxicating malt liquor is sold
for consumption on the premises. This subdivision does not
apply to those places where both an on-sale and off-sale license
or a combination license have been issued under article 6,
section 6.
Subd. 7. [DRUGSTORES.] No intoxicating liquor license may
be issued to a person operating a drugstore unless the person
has operated it for at least two years or has purchased a
drugstore that has been in continuous operation for two or more
years.
Subd. 8. [EXPIRATION DATE.] All intoxicating liquor
licenses issued by a county or a city, other than cities of the
first class, must expire on the same date.
Subd. 9. [LICENSE TRANSFER.] A license may be transferred
with the consent of the issuing authority, provided that a
license is issued to a location at a racetrack licensed under
chapter 240 may not be transferred. Where a license is held by
a corporation, a change in ownership of ten percent or more of
the stock of the corporation must be reported in writing to the
authority who issued the license within ten days of the transfer.
Subd. 10. [EMPLOYMENT OF MINORS.] No person under 18 years
of age may be employed in a place where intoxicating liquor is
sold for consumption on the premises, except persons under 18
years of age may be employed as musicians or in bussing or
washing dishes in a restaurant or hotel that is licensed to sell
intoxicating liquor and may be employed as waiters or waitresses
at a restaurant, hotel, or motel where only wine is sold,
provided that the person under the age of 18 may not serve or
sell any wine.
Subd. 11. [REISSUANCE OF LICENSES IN CERTAIN CITIES.] A
city having territory in which the sale of intoxicating liquor
has been prohibited by law or charter and in which real property
taken for a public purpose by negotiation or eminent domain
proceedings was, immediately prior to the taking, actually and
lawfully used for the sale of intoxicating liquor, may reissue
the license previously issued to the location at any otherwise
lawful location in the city. A change of location due to taking
after July 1, 1972, must have been accomplished by July 1, 1976,
but these licenses may be renewed, reissued, transferred, or
relocated after that date.
Sec. 13. [340A.413] [RESTRICTIONS ON THE NUMBER OF
INTOXICATING LIQUOR LICENSES THAT MAY BE ISSUED.]
Subdivision 1. [ON-SALE LICENSES.] No on-sale intoxicating
liquor license may be issued in any city except as provided in
this section in excess of the following limits:
(1) in cities of the first class, one license for every
1,500 population, up to 200 licenses;
(2) in cities of the second class, not more than 18
licenses plus one for every 2,500 population over 45,000;
(3) in cities of the third class, not more than 12 licenses;
(4) in cities of the fourth class, not more than seven
licenses;
(5) in statutory cities of 5,000 to 10,000 population, not
more than six licenses;
(6) in statutory cities of 2,500 to 5,000 population, not
more than five licenses;
(7) in statutory cities of 500 to 2,500 population, not
more than four licenses; and
(8) in statutory cities under 500 population, not more than
three licenses.
Subd. 2. [ADDITIONAL ON-SALE LICENSES PERMITTED FOR CITIES
IN ST. LOUIS COUNTY.] For cities in St. Louis county no on-sale
liquor license may be issued in excess of the following limits,
without the approval of the commissioner:
(1) in cities of the third class, not more than 15 licenses;
(2) in cities of the fourth class, not more than nine
licenses; and
(3) in statutory cities of 2,500 to 5,000 population, not
more than six licenses.
Subd. 3. [REFERENDUM FOR ADDITIONAL ON-SALE LICENSES.] (a)
The governing body of a city may issue on-sale intoxicating
liquor licenses over the number permitted under subdivision 1
when authorized by the voters of the city at a general or
special election.
(b) The governing body may direct that either of the
following questions be placed on the ballot:
(1) "Shall the city council be allowed to issue 'on-sale'
licenses for the sale of intoxicating liquor at retail in excess
of the number permitted by law?"
Yes .......
No ........"
(2) "Shall the city council be allowed to issue (a number
to be determined by the governing body) 'on-sale' licenses for
the sale of intoxicating liquor at retail in excess of the
number now permitted by law?"
Yes .......
No ........"
(c) If a majority of voters voting on the question in
clause (1) vote yes, the governing body may issue an unlimited
number of on-sale licenses. If a majority of voters voting on
the question in clause (2) vote yes, the governing body may
issue additional on-sale licenses in the number stated in the
question.
Subd. 4. [EXCLUSIONS FROM LICENSE LIMITS.] On-sale
intoxicating liquor licenses may be issued to the following
entities by a city, in addition to the number authorized by this
section:
(1) clubs, or congressionally chartered veterans
organizations;
(2) restaurants located at a racetrack licensed under
chapter 240;
(3) restaurants that are issued licenses to sell wine under
article 6, section 4, subdivision 5;
(4) Lake Superior tour boats that are issued licenses under
article 6, section 4, subdivision 8; and
(5) theaters that are issued licenses under article 6,
section 4, subdivision 2.
Subd. 5. [OFF-SALE LICENSES.] No off-sale intoxicating
liquor license may be issued in any city, except as provided in
this section, in excess of the following limits:
(1) in cities of the first class, not more than one
off-sale license for each 5,000 population; and
(2) in all other cities the limit shall be determined by
the governing body of the city.
Subd. 6. [AREA THAT HAS BEEN ANNEXED OR CONSOLIDATED.] A
license validly issued within the number prescribed in this
section is not rendered invalid or illegal by reason of the
consolidation or annexation of territory to a city and may
continue to remain in effect and be renewed, except that the
limitations as to ownership under article 6, section 12,
subdivision 2.
Sec. 14. [340A.414] [LICENSING OF BOTTLE CLUBS.]
Subdivision 1. [PERMIT REQUIRED.] No business
establishment or club which does not hold an on-sale
intoxicating liquor license may directly or indirectly allow the
consumption and display of intoxicating liquor or knowingly
serve any liquid for the purpose of mixing with intoxicating
liquor without first having obtained a permit from the
commissioner.
Subd. 2. [ELIGIBILITY FOR PERMIT.] (a) The commissioner
may issue a permit under this section only to:
(1) an applicant who has not, within five years prior to
the application, been convicted of a felony or of violating any
provision of this chapter or rule adopted under this chapter;
(2) a restaurant;
(3) a hotel;
(4) an establishment licensed for the sale of
nonintoxicating malt liquor;
(5) a resort as defined in section 157.01; and
(6) a club as defined in section 340.07, subdivision 15, or
an unincorporated club otherwise meeting that definition.
(b) The commissioner may not issue a permit to a club
holding an on-sale intoxicating liquor license.
Subd. 3. [ONLY AUTHORIZED TO PERMIT THE CONSUMPTION AND
DISPLAY.] A permit issued under this section authorizes the
establishment to permit the consumption and display of
intoxicating liquor on the premises. The permit does not
authorize the sale of intoxicating liquor.
Subd. 4. [PERMIT EXPIRATION.] All permits issued under
this section expire on June 30 of each year.
Subd. 5. [LOCAL CONSENT REQUIRED.] A permit issued under
this section is not effective until approved by the governing
body of the city or county where the establishment is located.
Subd. 6. [PERMIT FEES.] The annual fee for issuance of a
permit under this section is $150. The governing body of a city
or county where the establishment is located may impose an
addition of fee of not more than $300.
Subd. 7. [INSPECTION.] An establishment holding a permit
under this section is open for inspection by the commissioner
and the commissioner's representative and by peace officers, who
may enter and inspect during reasonable hours. Intoxicating
liquor sold, served, or displayed in violation of law may be
seized and may be disposed of under article 2, section 12.
Subd. 8. [LOCKERS.] A club issued a permit under this
section may allow members to bring and keep a personal supply of
intoxicating liquor in lockers on the club's premises. All
bottles kept on the premises must have attached to it a label
signed by the member. No person under 19 years of age may keep
a supply of intoxicating liquor on club premises.
Subd. 9. [ONE-DAY CITY PERMITS.] A city may issue a
one-day permit for the consumption and display of intoxicating
liquor under this section to a nonprofit organization in
conjunction with a social activity in the city sponsored by the
organization. The permit must be approved by the commissioner
and is valid only for the day indicated on the permit. The fee
for the permit may not exceed $25. A city may not issue more
than ten permits under this section in any one year.
Sec. 15. [340A.415] [LICENSE REVOCATION OR SUSPENSION.]
The authority issuing or approving any retail license or
permit under this chapter may either suspend for up to 60 days
or revoke the license or permit, and the approving authority, if
the commissioner, may impose fines of up to $500 for each
violation on a finding that the license or permit holder has
failed to comply with an applicable statute, regulation, 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 chapter 14.
Sec. 16. [340A.416] [LOCAL OPTION ELECTION.]
Subdivision 1. [PETITION.] Upon receipt of a petition
signed by 30 percent of the persons voting at the last city
election or 200 registered voters residing in the city,
whichever is less, a statutory city or home rule charter city of
the fourth class shall place before the voters of the city the
question of whether the city will issue intoxicating liquor
licenses.
Subd. 2. [BALLOT QUESTION.] The question of the referendum
under this section must be on a separate ballot and must allow
the voters to vote either "for license" or "against license."
Subd. 3. [EFFECT OF ELECTION RESULTS.] If a majority of
persons voting on the referendum question the vote "against
license" the city may not issue intoxicating liquor licenses
until the results of the referendum have been reversed at a
subsequent election where the question has been submitted as
provided in this section.
Subd. 4. [CERTIFICATION TO SECRETARY OF STATE.] The clerk
or recorder must certify results of a referendum held under this
section to the secretary of state within ten days of the
election.
Subd. 5. [CHALLENGE OF ELECTION.] Where the results of a
referendum under this section are challenged by any voter, the
county attorney of the county where the election was held must
appear in defense of the validity of the election.
ARTICLE 7
RETAIL SALES REGULATIONS
Section 1. [340A.501] [RESPONSIBILITY OF LICENSEE.]
Every licensee is responsible for the conduct in the
licensed establishment and any sale of alcoholic beverage by any
employee authorized to sell alcoholic beverages in the
establishment is the act of the licensee.
Sec. 2. [340A.502] [SALES TO OBVIOUSLY INTOXICATED
PERSONS.]
No person may sell, give, furnish, or in any way procure
for another alcoholic beverages for the use of an obviously
intoxicated person.
Sec. 3. [340A.503] [PERSONS UNDER 19; ILLEGAL ACTS.]
Subdivision 1. [CONSUMPTION.] It is unlawful for any:
(1) retail intoxicating liquor or nonintoxicating liquor
licensee or bottle club permit holder under article 6, section
14, to permit any person under the age of 19 years to consume
alcoholic beverages on the licensed premises; or
(2) person under the age of 19 years to consume any
alcoholic beverages unless in the household of the person's
parent or guardian and with the consent of the parent or
guardian.
Subd. 2. [PURCHASING.] It is unlawful for any person:
(1) to sell, barter, furnish, or give alcoholic beverages
to a person under 19 years of age, except that a parent or
guardian of a person under the age of 19 years may give or
furnish alcoholic beverages to that person solely for
consumption in the household of the parent or guardian;
(2) under the age of 19 years to purchase or attempt to
purchase any alcoholic beverage; or
(3) to induce a person under the age of 19 years to
purchase or procure any alcoholic beverage.
Subd. 3. [POSSESSION.] It is unlawful for a person under
the age of 19 years to possess any alcoholic beverage with the
intent to consume it at a place other than the household of the
person's parent or guardian. Possession at a place other than
the household of the parent or guardian is prima facie evidence
of intent to consume it at a place other than the household of
the parent or guardian.
Subd. 4. [ENTERING LICENSED PREMISES.] It is unlawful for
a person under the age of 19 years to enter an establishment
licensed for the sale of alcoholic beverages or any municipal
liquor store for the purpose of purchasing or having served or
delivered any alcoholic beverage.
Subd. 5. [MISREPRESENTATION OF AGE.] It is unlawful for a
person under the age of 19 years to misrepresent his or her age
for the purpose of purchasing alcoholic beverages.
Subd. 6. [PROOF OF AGE.] Proof of age for purchasing or
consuming alcoholic beverages may be established only by a valid
drivers license or Minnesota identification card, or in the case
of a foreign national by a valid passport.
Sec. 4. [340A.504] [HOURS AND DAYS OF SALE.]
Subdivision 1. [NONINTOXICATING MALT LIQUOR.] No sale of
nonintoxicating malt liquor may be made between 1:00 a.m. and
8:00 a.m. on the days of Monday through Saturday, nor between
1:00 a.m. and 12:00 noon on Sunday, provided that an
establishment located on land owned by the metropolitan sports
commission may sell nonintoxicating malt liquor between 10:00
a.m. and 12:00 noon on a Sunday on which a sports or other event
is scheduled to begin at that location on or before 1:00 p.m. of
that day.
Subd. 2. [INTOXICATING LIQUOR; ON-SALE.] No sale of
intoxicating liquor for consumption on the licensed premises may
be made:
(1) between 1:00 a.m. and 8:00 a.m. on the days of Tuesday
through Saturday;
(2) between 12 midnight and 8:00 a.m. on Mondays;
(3) after 1:00 a.m. on Sundays, except as provided by
subdivision 3;
(4) between 8:00 p.m. on December 24 and 8:00 a.m. on
December 25, except as provided by subdivision 3.
Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a)
A restaurant, club, or hotel with a seating capacity for at
least 30 persons and which holds an on-sale intoxicating liquor
license may sell intoxicating liquor for consumption on the
premises in conjunction with the sale of food between the hours
of 12 noon and 12 midnight on Sundays.
(b) The governing body of a municipality within the
seven-county metropolitan area as defined in section 473.121,
subdivision 2, may by ordinance permit a restaurant, hotel, or
club to sell intoxicating liquor for consumption on the premises
in conjunction with the sale of food between the hours of 10:00
a.m. and 12 midnight on Sundays, provided that the licensee is
in conformance with the Minnesota Clean Air Act.
(c) An establishment serving intoxicating liquor on Sundays
must obtain a Sunday license. The license must be issued by the
governing body of the municipality for a period of one year, and
the fee for the license may not exceed $200.
(d) A municipality may issue a Sunday intoxicating liquor
license only if authorized to do so by the voters of the
municipality voting on the question at a general or special
election.
(e) An election conducted in a town on the question of the
issuance by the county of Sunday sales licenses to
establishments located in the town must be held on the day of
the annual election of town officers.
(f) Voter approval is not required for licenses issued by
the metropolitan airports commission or common carrier licenses
issued by the commissioner. Common carriers serving
intoxicating liquor on Sunday must obtain a Sunday license from
the commissioner at an annual fee of $50, plus $5 for each
duplicate.
Subd. 4. [INTOXICATING LIQUOR; OFF-SALE.] No sale of
intoxicating liquor may be made by an off-sale licensee:
(1) on Sundays;
(2) before 8:00 a.m. on Monday through Saturday;
(3) after 10:00 p.m. on Monday through Saturday at an
establishment located in a city other than a city of the first
class or within a city located within 15 miles of a city of the
first class in the same county;
(4) after 8:00 p.m. on Monday through Thursday and after
10:00 p.m. on Friday and Saturday at an establishment located in
a city of the first class or within a city located within 15
miles of a city of the first class in the same county, provided
that an establishment may sell intoxicating liquor until 10:00
p.m. on December 31 and July 3 unless otherwise prohibited under
clause (1);
(5) on New Years Day, January 1;
(6) on Independence Day, July 4;
(7) on Thanksgiving Day;
(8) on Christmas Day, December 25; or
(9) after 8:00 p.m. on Christmas Eve, December 24.
Subd. 5. [BOTTLE CLUBS.] No establishment licensed under
article 6, section 14, may permit a person to consume or display
intoxicating liquor, and no person may consume or display
intoxicating liquor between 1:00 a.m. and 12 noon on Sundays,
and between 1:00 a.m. and 8:00 a.m. on Monday through Saturday.
Subd. 6. [MUNICIPALITIES MAY LIMIT HOURS.] A municipality
may further limit the hours of sale of alcoholic beverages,
provided that further restricted hours must apply equally to
sales of nonintoxicating malt liquor and intoxicating liquor. A
city may not permit the sale of alcoholic beverages during hours
when the sale is prohibited by this section.
Sec. 5. [340A.505] [LICENSEE MAY NOT SELL FOR RESALE.]
A retail licensee may not sell alcoholic beverages to any
person for the purpose of resale or to any person whom the
licensee has reason to believe intends to resell the alcoholic
beverage without written approval of the commissioner.
Sec. 6. [340A.506] [SALES OF ETHYL ALCOHOL AND NEUTRAL
SPIRITS PROHIBITED.] No person may sell at retail for beverage
purposes ethyl alcohol or neutral spirits, or substitutes
thereof, possessing the taste, aroma, and characteristics
generally attributed to ethyl alcohol or neutral spirits.
Nothing in this section prohibits the manufacture or sale of
other products obtained by use of ethyl alcohol or neutral
spirits as defined in United States Treasury Department, Bureau
of Internal Revenue, Regulations 125, Article II, Standards of
Identity for Distilled Spirits.
Sec. 7. [340A.507] [REGULATION OF ADVERTISING.]
Subdivision 1. [RULES.] The commissioner may by rule
regulate the advertising of alcoholic beverages. Rules must be
adopted under chapter 14.
Subd. 2. [WINE CATALOGS.] No rule may be construed as
prohibiting the advertising of wines by off-sale licensees or
municipal liquor stores by means of catalogs distributed by
direct mail listing not less than 25 varieties of wine and the
price of each.
Subd. 3. [BORDER CITIES.] No rule may prohibit the
advertising of intoxicating liquor prices by an off-sale
licensee in a newspaper of general circulation published in an
adjoining state if it is the primary newspaper of general
circulation in the licensee's area.
Sec. 8. [340A.508] [TAMPERING OR REFILLING BOTTLES.]
Subdivision 1. [REFILLING BOTTLES.] It is unlawful for a
person to sell, offer for sale, or keep for sale alcoholic
beverages in a package or bottle which has been refilled or
partly refilled.
Subd. 2. [TAMPERING OR DILUTING CONTENTS.] It is unlawful
for a person holding a retail intoxicating liquor license or a
nonintoxicating liquor license, directly or indirectly through
an agent, employee, or other person, to dilute or in any manner
tamper with the contents of an original package or bottle so as
to change its composition or alcoholic content while the
contents are in the original package or bottle. Possession on
the premises by a licensee of alcoholic beverages in the
original package or bottle, differing in composition or
alcoholic content from when it was received from the
manufacturer or wholesaler from whom it was purchased, is prima
facie evidence that the contents of the original package or
bottle has been diluted, changed, or tampered with in violation
of this section.
Sec. 9. [340A.509] [LOCAL RESTRICTIONS.]
A local authority may impose further restrictions and
regulations on the sale and possession of alcoholic beverages
within its limits.
ARTICLE 8
MUNICIPAL LIQUOR STORES
Section 1. [340A.601] [ESTABLISHMENT OF MUNICIPAL LIQUOR
STORES.]
Subdivision 1. [AUTHORITY.] A city having a population of
not more than 10,000 may establish, own, and operate a municipal
liquor store which may sell at retail intoxicating liquor,
nonintoxicating malt liquor, tobacco products, ice, soft drinks,
beverages for mixing intoxicating liquor, and food for
consumption on the premises. A municipal liquor store may also
offer recorded or live entertainment and make available
coin-operated amusement devices.
Subd. 2. [POPULATION CHANGE.] A city which has established
a municipal liquor store may continue to operate it
notwithstanding a subsequent change in population if within one
year after the effective date of the census by which the
municipality exceeds 10,000 in population, the question, "Shall
the city continue to operate its municipal liquor store?" is
submitted to the voters of the city at a general or special
municipal election and a majority of the voters voting on the
question at the election vote in the affirmative on the
question. The notice of the election shall state the question
to be submitted to the electors at the election.
Subd. 3. [SCOPE AND APPLICATION.] A city which established
a liquor store prior to July 1, 1967, may continue to own and
operate it.
Subd. 4. [NEWLY FORMED MUNICIPALITIES; MUNICIPAL LIQUOR
STORES; LIQUOR LICENSES.] A city may not establish or operate a
municipal liquor store or issue an on-sale or off-sale liquor
license until two years after its incorporation. This
restriction does not apply to a newly incorporated statutory
city which had formerly been a town or is made up of a major
geographic portion of what had formerly been a town, which town
had the powers of a statutory city under section 368.01.
Subd. 5. [ISSUANCE OF LICENSES TO PRIVATE PERSONS.] A city
owning and operating a municipal liquor store may issue on-sale
liquor licenses to hotels, clubs, and restaurants. A city
issuing on-sale licenses under this subdivision may continue to
operate the municipal liquor store or may resume operation of a
municipal liquor store previously discontinued.
The number of on-sale licenses issued under this section by
a city is governed by article 6, section 13.
A city may not issue licenses under this section until
authorized by the voters of the city voting on the question at a
special election called for that purpose.
Subd. 6. [MUNICIPALITIES; CERTAIN ON-SALE LICENSES.] A
city which did not permit the sale of intoxicating liquor within
its boundaries as of June 30, 1969, or was incorporated after
that date may issue on-sale licenses for the sale of
intoxicating liquor in accordance with subdivision 5.
Subd. 7. [NOTICE OF INTENT.] A city which has issued
retail intoxicating liquor licenses may not establish a
municipal liquor store until one year after publishing a notice
of its intention in the city's legal newspaper. The city must
provide in the notice if the municipality will be engaging in
the sale of intoxicating liquor to the exclusion of all private
interests.
Sec. 2. [340A.602] [CONTINUATION.]
In any city in which the report of the operations of a
municipal liquor store has shown a net loss in any two of three
consecutive years or has shown that no contribution to other
municipal funds has been made from the net income of the
operation in any two of three consecutive years, the city
council shall, not more than 45 days prior to the end of the
fiscal year following the three-year period, hold a public
hearing on the question of whether the city shall continue to
operate a municipal liquor store. Two weeks notice, written in
clear and easily understandable language, of the hearing must be
printed in the city's official newspaper. Following the hearing
the city council may on its own motion or shall upon petition of
five percent or more of the registered voters of the city,
submit to the voters at a general or special municipal election
the question of whether the city shall continue or discontinue
municipal liquor store operations by a date which the city
council shall designate. The date designated by the city
council must not be more than 30 months following the date of
the election.
Sec. 3. [340A.603] [FINANCIAL RESPONSIBILITY.]
Every municipal liquor store must demonstrate proof of
financial responsibility required of licensees under article 6,
section 9. Proof of financial responsibility must be filed by
January 15 of each year. The commissioner may suspend the
operation of a municipal liquor store failing to demonstrate
proof of financial responsibility until the commissioner is
satisfied that the municipal liquor store is in compliance with
article 6, section 9. The commissioner must notify in writing
the municipality operating the store of the effective date of
the suspension. A suspension under this subdivision is a
contested case under the administrative procedure act.
Sec. 4. [340A.604] [SUSPENSION OF OPERATION.]
A court shall notify the commissioner in writing within ten
days whenever a muncipal officer or employee has been convicted
of any of the following offenses committed in a municipal liquor
store:
(1) selling alcoholic beverages to persons or at times
prohibited by law;
(2) selling alcoholic beverages for resale;
(3) selling alcoholic beverages on which state taxes have
not been paid; or
(4) violating the provisions of article 6, section 10,
subdivision 6 relating to gambling and gambling devices.
On receiving the notice of conviction the commissioner may
suspend for up to 30 days the operation of the municipal liquor
store where the offense occurred. The commissioner must notify
in writing the municipality operating the store of the effective
dates of the suspension. An appeal of the suspension is a
contested case under sections 14.57 to 14.69 of the
administrative procedure act.
ARTICLE 9
VIOLATIONS AND PENALTIES
Section 1. [340A.701] [FELONIES.] It is a felony:
(1) to manufacture alcoholic beverages in violation of this
chapter;
(2) to transport or import alcoholic beverages into the
state in violation of this chapter for purposes of resale; or
(3) to sell or give away for beverage purposes poisonous
alcohol, methyl alcohol, denatured alcohol, denaturing material,
or any other alcoholic substance capable of causing serious
physical or mental injuries to a person consuming it.
Sec. 2. [340A.702] [GROSS MISDEMEANORS.]
It is a gross misdemeanor:
(1) to sell an alcoholic beverage without a license
authorizing the sale;
(2) for a licensee to refuse or neglect to obey a lawful
direction or order of the commissioner or the commissioner's
agent, withhold information or a document the commissioner calls
for examination, obstruct or mislead the commissioner in the
execution of the commissioner's duties or swear falsely under
oath;
(3) to violate the provisions of article 5, sections 1 to
13;
(4) to violate the provisions of article 7, section 8;
(5) for any person, partnership, or corporation to
knowingly have or possess direct or indirect interest in more
than one off-sale intoxicating liquor license in a municipality
in violation of article 6, section 12, subdivision 2;
(6) to sell or otherwise dispose of intoxicating liquor
within 1,000 feet of a state hospital, training school,
reformatory, prison, or other institution under the supervision
and control, in whole or in part, of the commissioner of human
services or the commissioner of corrections;
(7) to violate the provisions of article 7, section 2;
(8) to violate the provisions of article 7, section 3,
subdivision 2, clause (1) or (3);
(9) to withhold any information, book, paper, or other
thing called for by the commissioner for the purpose of an
examination;
(10) to obstruct or mislead the commissioner in the
execution of the commissioner's duties; or
(11) to swear falsely concerning any matter stated under
oath.
Sec. 3. [340A.703] [MISDEMEANORS.]
Where no other penalty is specified a violation of any
provision of this chapter is a misdemeanor.
Sec. 4. [340A.704] [SEARCH WARRANTS.]
Search warrants may be issued in connection with violation
of this chapter or other laws relating to sale, taxation,
transportation, manufacture, or possession of alcoholic
beverages in accordance with chapter 626.
Sec. 5. [340A.705] [PRIMA FACIE EVIDENCE.]
The finding of an unauthorized still is prima facie
evidence of possession for the purpose of unlawful manufacture
of alcoholic beverages.
ARTICLE 10
CIVIL LIABILITY
Section 1. [340A.801] [CIVIL ACTIONS.]
Subdivision 1. [RIGHT OF ACTION.] A spouse, child, parent,
guardian, employer, or other person injured in person, property,
or means of support, or who incurs other pecuniary loss by an
intoxicated person or by the intoxication of another person, has
a right of action in the person's own name for all damages
sustained against a person who caused the intoxication of that
person by illegally selling alcoholic beverages. All damages
recovered by a minor under this section must be paid either to
the minor or to the minor's parent, guardian, or next friend as
the court directs.
Subd. 2. [ACTIONS.] All suits for damages under this
section must be by civil action in a court of this state having
jurisdiction.
Subd. 3. [COMPARATIVE NEGLIGENCE.] Actions under this
section, except for actions for injury to person, property, or
means of support brought by a spouse, child, parent, guardian,
or other dependent of an intoxicated person are governed by
section 604.01.
Sec. 2. [340A.802] [NOTICE OF INJURY.]
Subdivision 1. [NOTICE OF INJURY.] A person who claims
damages and a person or insurer who claims contribution or
indemnity from a licensed retailer of alcoholic beverages or
municipal liquor store for or because of an injury within the
scope of article 10, section 1 must give a written notice to the
licensee or municipality stating:
(1) the time and date when and person to whom the liquor
was sold or bartered;
(2) the name and address of the person or persons who were
injured or whose property was damaged; and
(3) the approximate time and date, and the place where the
injury to person or property occurred.
A licensee or municipality who claims contribution or
indemnification from another licensee or municipality must give
a written notice to the other licensee or municipality in the
form and manner specified in this section.
An error or omission in the notice does not void the
notice's effect if the notice is otherwise valid unless the
error or omission is of a substantially material nature.
Subd. 2. [LIMITATIONS; CONTENT.] In the case of a claim
for damages, the notice must be served by the claimant's
attorney within 120 days of the date of entering an
attorney-client relationship with the person in regard to the
claim. In the case of claims for contribution or indemnity, the
notice must be served within 120 days after the injury occurs or
within 60 days after receiving written notice of a claim for
contribution or indemnity, whichever is applicable. No action
for damage or for contribution or indemnity may be maintained
unless the notice has been given. Actual notice of sufficient
facts reasonably to put the licensee or governing body of the
municipality on notice of a possible claim complies with the
notice requirement.
No action may be maintained under article 10, section 1
unless commenced within two years after the injury.
ARTICLE 11
MISCELLANEOUS PROVISIONS
Section 1. [340A.901] [CITATION.]
This chapter may be cited as the liquor act.
Sec. 2. [340A.902] [DRUNKENNESS NOT A CRIME.]
No person may be charged with or convicted of the offense
of drunkenness or public drunkenness. Nothing herein prevents
the prosecution and conviction of an intoxicated person for
offenses other than drunkenness or public drunkenness nor does
this section relieve a person from civil liability for an injury
to persons or property caused by the person while intoxicated.
Sec. 3. [340A.903] [SIZE OF CONTAINERS.]
Notwithstanding any law or rule to the contrary,
nonintoxicating malt liquor may be sold in containers of not
more than 128 fluid ounces.
Sec. 4. [340A.904] [SEIZED LIQUOR.]
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.
Subd. 2. [SALE PROCEDURE.] A sale of intoxicating liquor,
materials, apparatus, or vehicles may be made only with the
written approval of the commissioner of administration and after
notice of the sale is published in one issue of a legal
newspaper published in St. Paul. Sealed bids must be publicly
opened in the office of the commissioner of public safety on a
date stated in the notice, which may not be less than 15 days or
more than 30 days after its publication. The net proceeds from
the sale of alcoholic beverages or articles must, after the
deduction of the expense of seizure or sale, be deposited by the
commissioner of public safety with the state treasurer and
credited to the general fund.
Subd. 3. [TAX EXEMPTION.] Sales of alcoholic beverages
made by the commissioner are exempt from the state excise tax if
stamps evidencing the payment of the excise tax have not been
placed thereon prior to the seizure if before resale proper
excise stamps are attached to all containers.
Sec. 5. [340A.905] [NOTICE OF VIOLATION.]
When any municipal liquor store or licensed dealer in
alcoholic beverages or agent or employee thereof is convicted of
a violation of any provision of this chapter or any law or
ordinance regulating the sale of alcoholic beverages or any
violation of law or ordinance in the operation of the licensed
premises, the clerk of the court shall, within ten days after
the conviction, mail a written notice of the conviction to the
clerk of the municipality or county auditor of the county having
jurisdiction to issue alcoholic beverage licenses for the
premises. A copy of the notice must be mailed to the
commissioner of public safety.
Sec. 6. [340A.906] [NONAPPLICABILITY.]
This chapter does not apply to:
(1) medicines intended for therapeutic purposes and not
intended as a beverage;
(2) industrial alcohol designed for mechanical, chemical,
scientific, pharmaceutical, or industrial purposes; or
(3) nonpotable compounds or preparations containing alcohol.
Sec. 7. [EXISTING LICENSES.]
Nothing in this act may be construed to affect the status
of a license lawfully issued prior to the effective date of this
act.
ARTICLE 12
MISCELLANEOUS CHANGES
Section 1. Minnesota Statutes 1984, section 260.015,
subdivision 22, is amended to read:
Subd. 22. [JUVENILE ALCOHOL OFFENDER.] "Juvenile alcohol
offender" means a child who violates any provision of article 7,
section 340.035, subdivision 1, clause (4), (5), or (6) or
section 340.731 3 or an equivalent local ordinance.
Sec. 2. Minnesota Statutes 1984, section 299A.02, is
amended to read:
299A.02 [COMMISSIONERS OF PUBLIC SAFETY AND REVENUE; LIQUOR
CONTROL FUNCTIONS.]
Subdivision 1. [DIRECTOR OF DIVISION OF LIQUOR CONTROL.]
No employee of the department of public safety or the department
of revenue having any responsibility for the administration or
enforcement of chapter 340 articles 2 to 11 shall have a direct
or indirect interest, except through ownership or investment in
pension or mutual funds, in the manufacture, transportation or
sale of intoxicating liquor or any malt or vinous beverages,
intoxicating, nonintoxicating, or commercial or industrial
alcohol. The commissioner of public safety or the commissioner
of revenue may remove an employee of his department in the
unclassified civil service for any intentional violation of
sections 340.02, 340.031 to 340.036, 340.11 to 340.19, 340.355
to 340.357, 340.402 to 340.408, 340.44 to 340.493, 340.53 to
340.56, 340.601 to 340.62, or 340.70 to 340.983 any provision in
articles 2 to 11. Intentional violation of the preceding
sections by a classified employee of one of the departments may
be grounds for removal of that employee pursuant to section
43A.33.
Subd. 2. [GENERAL POWERS.] The commissioner shall
administer and enforce the provisions of chapter 340 articles 2
to 11 except for those provisions thereof for which
administration and enforcement are reserved to the commissioner
of revenue.
Subd. 3. [REPORTS; RULES.] The commissioner shall have
power to require periodic factual reports from all licensed
importers, manufacturers, wholesalers and retailers of
intoxicating liquors and to make all reasonable rules to effect
the object of chapter 340 articles 2 to 11. The rules shall
include provisions for assuring the purity of intoxicating
liquors and the true statement of its contents and proper
labeling thereof with regard to all forms of sale.
Subd. 4. [SUBPOENAS.] In all matters relating to his
official duties, the commissioner shall have the powers
possessed by courts of law to issue subpoenas and cause them to
be served and enforced. All public officials, and their
respective deputies and employees, and all individuals,
partnerships, firms, corporations, incorporated and
unincorporated associations, and others who manufacture,
transport, or sell intoxicating liquor, or are connected
therewith in any manner, shall at all times attend and answer
under oath the commissioner's lawful inquiries, produce and
exhibit such books, accounts, documents and property as he may
desire to inspect, and in all things aid him in the performance
of his duties.
Sec. 3. Minnesota Statutes 1984, section 473F.02,
subdivision 17, is amended to read:
Subd. 17. "Public grants" means (1) the sum of all moneys
received by a municipality pursuant to sections 273.13,
subdivisions 3 and 15(4), 290.361, subdivision 4, 297.13, and
340.60; and (2) one-tenth of all other moneys received by a
municipality from the federal and state governments, and their
agencies and political subdivisions, under programs of
intergovernmental aids and grants distributed by formula or upon
application. The state auditor shall certify the public grants
of each municipality for each year to the commissioner of
finance not later than September 1 of the subsequent year.
Sec. 4. Minnesota Statutes 1984, section 624.701, is
amended to read:
624.701 [LIQUORS IN CERTAIN BUILDINGS OR GROUNDS.]
Subdivision 1. Any person who shall introduce upon, or
have in his possession upon, or in, any school ground, or any
schoolhouse or school building, any intoxicating liquor or
nonintoxicating malt liquor alcoholic beverage as defined in
chapter 340 article 3, section 1, except for experiments in
laboratories and except for those organizations who have been
issued temporary licenses to sell nonintoxicating malt liquor
pursuant to article 6, section 340.02 3, subdivision 2, and any
person possessing nonintoxicating malt liquor as a result of a
purchase from those organizations holding temporary licenses
pursuant to article 6, section 340.02 3, subdivision 2, shall be
guilty of a misdemeanor.
Subd. 2. Any person who except by prescription of a
licensed physician or permission of the hospital administrator
shall introduce upon, or have in his possession upon, or in, any
state hospital or grounds thereof under the responsibility of
the commissioner of public welfare any intoxicating liquor or
nonintoxicating malt liquor alcoholic beverage as defined in
chapter 340 article 3, section 1, shall be guilty of a
misdemeanor.
Sec. 5. [INSTRUCTIONS TO REVISOR.]
In the following sections of Minnesota Statutes, the
revisor of statutes shall change the reference to chapter 340
listed in column B which occurs in the section specified in
column A to the new reference listed in column C.
Column A, section Column B, section Column C, section
16A.26 340.60 297C.02 to 297C.08
28.16 340.02 340A.403
28.16 340.11 340A.404 to
340A.407
290.612 340.01 340A.403
290.612 340.13 340A.404 to
340A.406
297A.431 340.01 340A.403
297A.431 340.13 340A.404 to
340A.406
466.15 340.95 340A.801
471.981, subd. 1 340.95 340A.801
471.981, subd. 1 340.951 340A.802
624.731, subd. 5 340.001, subd. 2 340A.101, subd. 19
624.731, subd. 5 340.07, subd. 2 340A.101, subd. 13
ARTICLE 13
REPEALER
Section 1. [REPEALER.]
Minnesota Statutes 1984, sections 340.001; 340.01; 340.013;
340.02; 340.024; 340.031; 340.032; 340.033; 340.034; 340.035;
340.036; 340.038; 340.039; 340.069; 340.07; 340.081; 340.10;
340.11; 340.112; 340.113; 340.114; 340.115; 340.119; 340.12;
340.13; 340.133; 340.134; 340.135; 340.14; 340.141; 340.142;
340.143; 340.145; 340.15; 340.17; 340.18; 340.19; 340.20;
340.21; 340.323; 340.33; 340.353; 340.354; 340.355; 340.356;
340.357; 340.358; 340.38; 340.39; 340.401; 340.402; 340.403;
340.404; 340.405; 340.406; 340.407; 340.408; 340.435; 340.436;
340.44; 340.45; 340.46; 340.461; 340.47; 340.485; 340.492;
340.493; 340.50; 340.51; 340.515; 340.53; 340.54; 340.55; 340.56;
340.57; 340.58; 340.59; 340.60; 340.601; 340.62; 340.621; 340.63;
340.64; 340.65; 340.66; 340.70; 340.71; 340.73; 340.731; 340.732;
340.74; 340.76; 340.77; 340.79; 340.80; 340.83; 340.85; 340.86;
340.87; 340.88; 340.89; 340.90; 340.91; 340.92; 340.93; 340.94;
340.941; 340.942; 340.95; 340.951; 340.961; 340.983; 340.987;
and 340.988 are repealed.
Approved June 5, 1985
Official Publication of the State of Minnesota
Revisor of Statutes