Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1995, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 198-H.F.No. 1132
An act relating to alcoholic beverages; providing
restrictions on brewers who have retail on-sale
licenses; imposing licensing and permitting
requirements; requiring a license for charging for
possession of alcoholic beverages; requiring a permit
to allow consumption and display of all alcoholic
beverages; authorizing additional licenses in
Minneapolis; authorizing Clay, Stearns, and St. Louis
counties and the city of International Falls to issue
on-sale licenses; requiring a study of application of
primary source law; defining home brewing equipment;
listing items that may be sold in exclusive liquor
stores; repealing requirement for permit for
transportation of alcoholic beverages; amending
Minnesota Statutes 1994, sections 340A.101,
subdivisions 10, 25, and by adding a subdivision;
340A.301, subdivisions 6 and 7; 340A.401; 340A.404,
subdivision 2, and by adding a subdivision; 340A.412,
by adding a subdivision; and 340A.414, subdivision 1;
proposing coding for new law in Minnesota Statutes,
chapter 340A; repealing Minnesota Statutes 1994,
sections 340A.301, subdivision 10; and 340A.32.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1994, section 340A.101,
subdivision 10, is amended to read:
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, 3.2 percent malt liquor, beverages for mixing with
intoxicating liquor, soft drinks, liqueur-filled candies, cork
extraction devices, and books and videos on the use of alcoholic
beverages in the preparation of food, and the establishment may
offer recorded or live entertainment. "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 those items authorized in section 340A.412,
subdivision 14.
Sec. 2. Minnesota Statutes 1994, section 340A.101, is
amended by adding a subdivision to read:
Subd. 12a. [HOME BREWING EQUIPMENT.] "Home brewing
equipment" means portable equipment designed for use in home
manufacturing of malt liquor in quantities of ten gallons or
less and supplies and ingredients for home manufacture of malt
liquor.
Sec. 3. Minnesota Statutes 1994, section 340A.101,
subdivision 25, is amended to read:
Subd. 25. [RESTAURANT.] "Restaurant" is an establishment,
other than a hotel, under the control of a single proprietor or
manager, where meals are regularly prepared on the premises and
served at tables to the general public, and having a minimum
seating capacity for guests in the following minimum numbers: as
prescribed by the appropriate license issuing authority.
(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,
Itasca, Lake, Lake of the Woods,
and St. Louis counties 100
(d) Unincorporated or unorganized
territory in Cook, Itasca, Lake,
Lake of the Woods, 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.
Sec. 4. Minnesota Statutes 1994, section 340A.301,
subdivision 6, is amended to read:
Subd. 6. [FEES.] The annual fees for licenses under this
section are as follows:
(a) Manufacturers (except as provided
in clauses (b) and (c)) $15,000
Duplicates $ 3,000
(b) Manufacturers of wines of not more
than 25 percent alcohol by volume $ 500
(c) Brewers other than those described
in clauses (d) and (i) $ 2,500
(d) Brewers who also hold a one or more
retail on-sale license licenses and who
manufacture fewer than 3,500 barrels
of malt liquor in a year, except as
provided in subdivision 10 at any one
licensed premises, the entire
production of which is solely
for consumption on tap on the
licensed premises. A brewer licensed
under this clause must obtain a separate
license for each licensed premises where
the brewer brews malt liquor. A brewer
licensed under this clause may not be
licensed as an importer under this chapter $ 500
(e) Wholesalers (except as provided in
clauses (f), (g), and (h)) $15,000
Duplicates $ 3,000
(f) Wholesalers of wines of not more
than 25 percent alcohol by volume $ 2,000
(g) Wholesalers of intoxicating
malt liquor $ 600
Duplicates $ 25
(h) Wholesalers of 3.2 percent
malt liquor $ 10
(i) Brewers who manufacture fewer than
2,000 barrels of malt liquor in a year $ 150
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.
Sec. 5. Minnesota Statutes 1994, section 340A.301,
subdivision 7, is amended to read:
Subd. 7. [INTEREST IN OTHER BUSINESS.] (a) Except as
provided in this subdivision, a holder of a license as a
manufacturer, brewer, importer, or wholesaler may not have any
ownership, in whole or in part, in a business holding a retail
intoxicating liquor or 3.2 percent malt liquor license. The
commissioner may not issue a license under this section to a
manufacturer, brewer, importer, or wholesaler if a retailer of
intoxicating liquor has a direct or indirect interest in the
manufacturer, brewer, importer, or wholesaler. A manufacturer
or wholesaler of intoxicating liquor may use or have property
rented for retail intoxicating liquor sales only if the
manufacturer or wholesaler has owned the property continuously
since November 1, 1933. A retailer of intoxicating liquor may
not use or have property rented for the manufacture or
wholesaling of intoxicating liquor.
(b) A licensed brewer of malt liquor described in licensed
under subdivision 6, clause (d) may be issued an on-sale
intoxicating liquor or 3.2 percent malt liquor license by a
municipality for a restaurant operated in or immediately
adjacent to the place of manufacture. Malt liquor brewed by
such a licensee may not be removed from the licensed premises
unless the malt liquor is entered in a tasting competition where
none of the malt liquor so removed is sold. A brewer licensed
under subdivision 6, clause (d), may hold or have an interest in
other retail on-sale licenses, but may not have an ownership
interest in whole or in part, or be an officer, director, agent,
or employee of, any other manufacturer, brewer, importer, or
wholesaler, or be an affiliate thereof whether the affiliation
is corporate or by management, direction, or control.
Notwithstanding this prohibition, a brewer licensed under
subdivision 6, clause (d), may be an affiliate or subsidiary
company of a brewer licensed in Minnesota or elsewhere if that
brewer's only manufacture of malt liquor is:
(i) manufacture licensed under subdivision 6, clause (d);
(ii) manufacture in another state for consumption
exclusively in a restaurant located in the place of manufacture;
or
(iii) manufacture in another state for consumption
primarily in a restaurant located in or immediately adjacent to
the place of manufacture if the brewer was licensed under
subdivision 6, clause (d), on January 1, 1995.
(c) Except as provided in subdivision 7a, no brewer as
defined in subdivision 7a or importer may have any interest, in
whole or in part, directly or indirectly, in the license,
business, assets, or corporate stock of a licensed malt liquor
wholesaler.
Sec. 6. [340A.33] [BREW ON PREMISES STORE.]
Notwithstanding anything in this chapter, the owner of a
brew on premises store shall not be considered a brewer,
manufacturer, wholesaler, or retailer of intoxicating liquor if
the owner complies with this section and with Code of Federal
Regulations, title 27, part 25, subpart L, sections 25.205 and
25.206. For purposes of this section, a brew on premises store
is a facility that provides the ingredients and equipment for a
customer to use to brew malt liquor at the store. Alcoholic
beverages may not be sold or otherwise provided to customers of
a brew on premises store, unless the owner of the brew on
premises store holds the appropriate liquor license. Customers
using the brew on premises store must be of the minimum age
required to purchase intoxicating liquor. Malt liquor brewed by
a customer in the store must not be sold and must be used by the
customer solely for personal or family use.
Sec. 7. Minnesota Statutes 1994, section 340A.401, is
amended to read:
340A.401 [LICENSE REQUIRED.]
Except as provided in this chapter, no person may directly
or indirectly, on any pretense or by any device, sell, barter,
keep for sale, charge for possession, or otherwise dispose of
alcoholic beverages as part of a commercial transaction without
having obtained a license.
Sec. 8. Minnesota Statutes 1994, section 340A.404,
subdivision 2, is amended to read:
Subd. 2. [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The
city of Minneapolis may issue an on-sale intoxicating liquor
license to the Guthrie Theatre, the Cricket Theatre, the Orpheum
Theatre, and the State 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
performances presented by the theatres and to members of the
nonprofit corporations holding the licenses and to their guests.
(b) The city of Minneapolis may issue an intoxicating
liquor license to 510 Groveland Associates, a Minnesota
cooperative, for use by a restaurant on the premises owned by
510 Groveland Associates, notwithstanding limitations of law, or
local ordinance, or charter provision.
(c) The city of Minneapolis may issue an on-sale
intoxicating liquor license to Zuhrah Shrine Temple for use on
the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue
South in Minneapolis, notwithstanding limitations of law, or
local ordinances, or charter provision relating to zoning or
school or church distances.
(d) The city of Minneapolis may issue an on-sale
intoxicating liquor license to the American Association of
University Women, Minneapolis branch, for use on the premises
owned by the American Association of University Women,
Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis,
notwithstanding limitations of law, or local ordinances, or
charter provisions relating to zoning or school or church
distances.
(e) The city of Minneapolis may issue an on-sale wine
license and an on-sale 3.2 percent malt liquor license to a
restaurant located at 5000 Penn Avenue South, notwithstanding
any law or local ordinance or charter provision.
Sec. 9. Minnesota Statutes 1994, 340A.404, is amended by
adding a subdivision to read:
Subd. 12. [CATERER'S PERMIT.] The commissioner may issue a
caterer's permit to a restaurant that holds an on-sale
intoxicating liquor license issued by any municipality. The
holder of a caterer's permit may sell intoxicating liquor as an
incidental part of a food service that serves prepared meals at
a place other than the premises for which the holder's on-sale
intoxicating liquor license is issued.
(a) A caterer's permit is auxiliary to the primary on-sale
license held by the licensee.
(b) The restrictions and regulations which apply to the
sale of intoxicating liquor on the licensed premises also apply
to the sale under the authority of a caterer's permit, and any
act that is prohibited on the licensed premises is also
prohibited when the licensee is operating other than on the
licensed premises under a caterer's permit.
(c) Any act, which if done on the licensed premises would
be grounds for cancellation or suspension of the on-sale
licensee, is grounds for cancellation of both the on-sale
license and the caterer's permit if done when the permittee is
operating away from the licensed premises under the authority of
the caterer's permit.
(d) The permittee shall notify prior to any catered event:
(1) the police chief of the city where the event will take
place, if the event will take place within the corporate limits
of a city; or
(2) the county sheriff of the county where the event will
take place, if the event will be outside the corporate limits of
any city.
(e) If the primary license ceases to be valid for any
reason, the caterer's permit ceases to be valid.
(f) Permits issued under this subdivision are subject to
all laws and ordinances governing the sale of intoxicating
liquor except those laws and ordinances which by their nature
are not applicable.
(g) The annual state fee for a caterer's permit is $200.
Sec. 10. Minnesota Statutes 1994, section 340A.412, is
amended by adding a subdivision to read:
Subd. 14. [EXCLUSIVE LIQUOR STORES.] (a) Except as
otherwise provided in this subdivision, an exclusive liquor
store may sell only the following items:
(1) alcoholic beverages;
(2) tobacco products;
(3) ice;
(4) beverages for mixing with intoxicating liquor;
(5) soft drinks;
(6) liqueur-filled candies;
(7) food products that contain more than one-half of one
percent alcohol by volume;
(8) cork extraction devices;
(9) books and videos on the use of alcoholic beverages;
(10) magazines and other publications published primarily
for information and education on alcoholic beverages; and
(11) home brewing equipment.
(b) An exclusive liquor store that has an on-sale, or
combination on-sale and off-sale license may sell food for
on-premise consumption when authorized by the municipality
issuing the license.
(c) An exclusive liquor store may offer live or recorded
entertainment.
Sec. 11. Minnesota Statutes 1994, section 340A.414,
subdivision 1, is amended to read:
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 alcoholic
beverages or knowingly serve any liquid for the purpose of
mixing with intoxicating liquor without first having obtained a
permit from the commissioner.
Sec. 12. [CLAY COUNTY; ON-SALE LICENSE.]
Notwithstanding any state or local law or charter
provision, the Clay county board may issue one on-sale
intoxicating liquor license to a premises located in Elkton
township. The license is not subject to the requirements of
Minnesota Statutes, section 340A.101, subdivision 25. The
license is subject to all other provisions of Minnesota
Statutes, chapter 340A.
Sec. 13. [ST. LOUIS COUNTY; ON-SALE LICENSE.]
Notwithstanding any state or local law or charter provision
to the contrary, the St. Louis county board may issue one
on-sale intoxicating malt liquor license to an establishment
located in township 65, range 18, section 33. The county board
shall set the fee for the license. The license is subject to
all provisions of Minnesota Statutes, chapter 340A, not
inconsistent with this section.
Sec. 14. [INTERNATIONAL FALLS; TEMPORARY LICENSE.]
Notwithstanding any law to the contrary, the city of
International Falls may issue to a nonprofit organization or
corporation a temporary on-sale license for the sale and serving
of intoxicating liquor in a sports arena owned by independent
school district No. 361. The license authorized under this
section is valid for not more than seven consecutive days during
the months of June and July 1995. The license is in addition to
the number of temporary on-sale licenses authorized by law. The
city shall determine the fee for the license. All provisions of
Minnesota Statutes, chapter 340A, not inconsistent with this
section, apply to the license authorized by this section.
Sec. 15. [STEARNS COUNTY; ON-SALE LICENSE.]
Notwithstanding Minnesota Statutes, section 340A.412,
subdivision 4, paragraph (a), clause (9), or any local law or
charter provision, the Stearns county board may issue one
combination off-sale and on-sale intoxicating liquor license to
a premises located in Farming township. The license is subject
to all provisions of Minnesota Statutes, chapter 340A, not
inconsistent with this section.
Sec. 16. [PRIMARY SOURCE STUDY.]
The house research department and office of senate counsel
and research shall study issues relating to the extension of
Minnesota Statutes, section 340A.311, paragraph (c), to include
distilled spirits. The study shall include findings but shall
not include recommendations on changes in law or rules. The
house research department and office of senate counsel and
research shall jointly report their findings to the chairs of
the legislative committees and divisions with jurisdiction over
alcoholic beverage law and policy by March 1, 1996.
Sec. 17. [REPEALER.]
Minnesota Statutes 1994, section 340A.301, subdivision 10;
and 340A.32, are repealed.
Sec. 18. [EFFECTIVE DATE.]
Sections 1 to 7, 9 to 11, and 16 to 17 are effective the
day following final enactment. Section 8 is effective on
approval by the Minneapolis city council and compliance with
Minnesota Statutes, section 645.021. Section 12 is effective on
approval by the Clay county board and compliance with Minnesota
Statutes, section 645.021. Section 13 is effective on approval
by the St. Louis county board and compliance with Minnesota
Statutes, section 645.021. Section 14 is effective on approval
by the International Falls city council and compliance with
Minnesota Statutes, section 645.021. Section 15 is effective on
approval by the Stearns county board and compliance with
Minnesota Statutes, section 645.021.
Presented to the governor May 22, 1995
Signed by the governor May 22, 1995, 7:20 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes