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Key: (1) language to be deleted (2) new language

CHAPTER 120--H.F.No. 1476
An act
relating to liquor; modifying and clarifying certain licensing requirements;
authorizing various licenses; modifying provision relating to shipments into the
state; providing for wine tastings; extending certain on-sale hours;amending
Minnesota Statutes 2008, sections 340A.101, by adding a subdivision; 340A.301,
subdivision 4; 340A.315, subdivisions 2, 7; 340A.401; 340A.404, subdivisions
1, 4, 4a; 340A.412, subdivision 14; 340A.414, subdivision 1; 340A.417;
340A.419, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 340A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2008, section 340A.101, is amended by adding a
subdivision to read:
    Subd. 24a. Public facility. "Public facility" is a park, community center, or other
accommodation or facility owned or managed by or on behalf of a subdivision of the state,
including any county, city, town, township, or independent district of the state.

    Sec. 2. Minnesota Statutes 2008, section 340A.301, subdivision 4, is amended to read:
    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. This
subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315,
that is in existence as of January 1, 2010. Bonds must be in the following amounts:


Manufacturers 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

    Sec. 3. Minnesota Statutes 2008, section 340A.315, subdivision 2, is amended to read:
    Subd. 2. Sales. A license authorizes the sale, on the farm winery premises, of table,
sparkling, or fortified 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, cheese and cheese spreads, other wine-related
food items, 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 10:00 a.m. and
12:00 midnight. Labels for each type or brand produced must be registered with the
commissioner, without fee prior to sale. A farm winery may provide samples of distilled
spirits manufactured pursuant to subdivision 7, on the farm winery premises, but may
sell the distilled spirits only through a licensed wholesaler. Samples of distilled spirits
may not exceed 15 milliliters per variety.

    Sec. 4. Minnesota Statutes 2008, section 340A.315, subdivision 7, is amended to read:
    Subd. 7. Distilled spirits permitted. Farm wineries licensed under this section are
permitted to manufacture distilled spirits as defined under section 340A.101, subdivision
9, which may exceed 25 percent alcohol by volume, made from Minnesota-produced or
-grown grapes, grape juice, other fruit bases, or honey. The following conditions pertain:
    (1) no farm winery or firm owning multiple farm wineries may manufacture more
than 5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of
the 50,000 gallon limit found in subdivision 2;
    (2) farm wineries must pay an additional annual fee of $500 $50 to the commissioner
before beginning production of distilled spirits; and
    (3) farm wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

    Sec. 5. Minnesota Statutes 2008, 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 the required license or permit. Rental of or permission to use a public facility is
not a commercial transaction for the purposes of this chapter.

    Sec. 6. Minnesota Statutes 2008, section 340A.404, subdivision 1, is amended to read:
    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to
the following establishments located within its jurisdiction:
(1) hotels;
(2) restaurants;
(3) bowling centers;
(4) clubs or congressionally chartered veterans organizations with the approval of
the commissioner, 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, except that a club
may permit the general public to participate in a wine tasting conducted at the club under
section 340A.419;
(5) sports facilities located on land owned by the Metropolitan Sports Commission;
and
(6) exclusive liquor stores.
(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.
(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
an on-sale malt liquor license to a convention center within the city, notwithstanding any
law, local ordinance, or charter provision. A license issued under this paragraph authorizes
sales on all days of the week to persons attending events at the convention center. This
paragraph does not apply to convention centers located in the seven-county metro area.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2008, section 340A.404, subdivision 4, is amended to read:
    Subd. 4. Special provisions; sports, conventions, or cultural facilities;
community festivals. (a) 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
policy-making 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 a youth amateur athletic event, for persons 18 years
of age or younger, held on the premises.
(b) The governing body of a municipality may authorize a holder of a retail on-sale
intoxicating liquor license issued by the municipality to dispense intoxicating liquor
off premises at a community festival held within the municipality. The authorization
shall specify the area in which the intoxicating liquor must be dispensed and consumed,
and shall not be issued unless the licensee demonstrates that it has liability insurance as
prescribed by section 340A.409 to cover the event.

    Sec. 8. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to read:
    Subd. 4a. State-owned recreation; entertainment facilities. (a) Notwithstanding
any other law, local ordinance, or charter provision, the commissioner may issue on-sale
intoxicating liquor licenses:
    (1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the town of White, St. Louis County;
    (2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm; and
    (3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium, the intercollegiate football stadium, or at no more than seven other locations
within the boundaries of the University of Minnesota, provided that the Board of Regents
has approved an application for a license for the specified location. provided that a license
for an arena or stadium location is void unless it requires the sale or service of intoxicating
liquor throughout the arena or stadium if intoxicating liquor is sold or served anywhere in
the arena or stadium; and
(4) to the Duluth Entertainment and Convention Center Authority for beverage
sales on the premises of the Duluth Entertainment and Convention Center Arena during
intercollegiate hockey games.
    The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.
    (b) No alcoholic beverage may be sold or served at TCF Bank Stadium unless the
Board of Regents holds an on-sale intoxicating liquor license for the stadium as provided
in paragraph (a), clause (3).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2008, section 340A.412, subdivision 14, is amended 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, either liquid or powder, specifically designated 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) multiple use bags designed to carry purchased items;
(12) devices designed to ensure safe storage and monitoring of alcohol in the home,
to prevent access by underage drinkers; and
(11) (13) 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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Minnesota Statutes 2008, 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 alcoholic beverages or knowingly serve any liquid for the
purpose of mixing with intoxicating liquor without first having obtained a permit from the
commissioner. Rental of a public facility does not make a subdivision or the facility a
"business establishment" for the purposes of this chapter.

    Sec. 11. Minnesota Statutes 2008, section 340A.417, is amended to read:
340A.417 SHIPMENTS INTO MINNESOTA.
(a) Notwithstanding section 297G.07, subdivision 2, or any provision of this chapter,
a winery licensed in a state other than Minnesota, or a winery located in Minnesota, may
ship, for personal use and not for resale, not more than two cases of wine, containing a
maximum of nine liters per case, in any calendar year to any resident of Minnesota age 21
or over. Delivery of a shipment under this section may not be deemed a sale in this state.
(b) The shipping container of any wine sent under this section must be clearly
marked "Alcoholic Beverages: adult signature (over 21 years of age) required."
(c) No person may (1) advertise shipments authorized under this section, (2) by
advertisement or otherwise, solicit shipments authorized by this section, or (3) accept
orders for shipments authorized by this section by use of the Internet. No shipper located
outside Minnesota may advertise interstate reciprocal wine shipments in Minnesota.
(d) It is not the intent of this section to impair the distribution of wine through
distributors or importing distributors, but only to permit shipments of wine for personal
use.
(e) (d) No criminal penalty may be imposed on a person for a violation of this
section other than a violation described in paragraph (f) (e) or (g) (f). Whenever it appears
to the commissioner that any person has engaged in any act or practice constituting a
violation of this section, and the violation is not within two years of any previous violation
of this section, the commissioner shall issue and cause to be served upon the person an
order requiring the person to cease and desist from violating this section. The order must
give reasonable notice of the rights of the person to request a hearing and must state the
reason for the entry of the order. Unless otherwise agreed between the parties, a hearing
shall be held not later than seven days after the request for the hearing is received by the
commissioner after which and within 20 days after the receipt of the administrative law
judge's report and subsequent exceptions and argument, the commissioner shall issue an
order vacating the cease and desist order, modifying it, or making it permanent as the facts
require. If no hearing is requested within 30 days of the service of the order, the order
becomes final and remains in effect until modified or vacated by the commissioner. All
hearings shall be conducted in accordance with the provisions of chapter 14. If the person
to whom a cease and desist order is issued fails to appear at the hearing after being duly
notified, the person shall be deemed in default, and the proceeding may be determined
against the person upon consideration of the cease and desist order, the allegations of
which may be deemed to be true.
(f) (e) Any person who violates this section within two years of a violation for which
a cease and desist order was issued under paragraph (e) (d), is guilty of a misdemeanor.
(g) (f) Any person who commits a third or subsequent violation of this section,
including a violation for which a cease and desist order was issued under paragraph (c),
within any subsequent two-year period is guilty of a gross misdemeanor.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 12. Minnesota Statutes 2008, section 340A.419, subdivision 2, is amended to read:
    Subd. 2. Tastings. (a) Notwithstanding any other law, an exclusive liquor store may
conduct a wine tasting on the premises of a holder of an on-sale intoxicating liquor license
that is not a temporary license or on the premises of a holder of a wine license under
section 340A.404, subdivision 5, if the exclusive liquor store complies with this section.
(b) No wine at a wine tasting under this section may be sold for off-premises
consumption. A participant in the tasting may fill out a form indicating preferences for
wine. The form may be held on the premises of the exclusive liquor store to assist the
participant in making an off-sale purchase at a later date.
(c) Notwithstanding any other law, an exclusive liquor store may purchase or
otherwise obtain wine for a wine tasting conducted under this section from a wholesaler
licensed to sell wine. The wholesaler may sell or give wine to an exclusive liquor store
for a wine tasting conducted under this section and may provide personnel to assist
in the wine tasting.
(d) An exclusive liquor store that conducts a wine tasting under this section must use
any fees collected from participants in the tasting only to defray the cost of conducting
the tasting.
    (e) Notwithstanding section 340A.409, subdivision 4, the premises on which a wine
tasting is conducted must be insured as required by section 340A.409, subdivision 1.

    Sec. 13. [340A.5041] AIRPORT COMMISSION; EXTENDED HOURS.
Notwithstanding any law, rule, or ordinance to the contrary, the Metropolitan
Airports Commission may allow extended hours of sale at on-sale locations within the
security areas of the Lindbergh and Humphrey Terminals. Extended hours are allowed for
sales during the hours between 6:00 a.m. and 2:00 a.m. Monday through Sunday.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. AUGSBURG COLLEGE; ON-SALE LICENSE.
Notwithstanding any other law, local ordinance, or charter provision, the city of
Minneapolis may issue an on-sale intoxicating liquor license to Augsburg College, or to
an entity holding a caterer's permit and a contract with Augsburg College, for catering on
the premises of Augsburg College campus, or for any portion of the premises as described
in the approved license application. The license authorized by this section may be issued
for space that is not compact and contiguous, provided that all the space is within the
boundaries of Augsburg College campus and is included in the description of the licensed
premises on the approved license application. The license authorizes sales on all days of
the week to persons attending events at the college. All other provisions of Minnesota
Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized
under this section.
EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
City Council in the manner provided by Minnesota Statutes, section 645.021,
notwithstanding Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 15. GRAND MARAIS; ON-SALE.
Notwithstanding any law, local ordinance, or charter provision to the contrary, the
city of Grand Marais may issue an on-sale intoxicating liquor license, or an on-sale wine
license and an on-sale malt liquor license, to Holland Motel, Inc. d/b/a the Best Western
Superior Inn and Suites located at 104 First Avenue East, Grand Marais, and an additional
on-sale intoxicating liquor license, or on-sale wine and on-sale malt liquor license to East
Bay Hospitality, LLC; d/b/a East Bay Suites located at 21 Wisconsin Street, Grand Marais.
The license may authorize sales only to persons who are registered guests at the lodging
establishment, their invitees, or persons attending a conference, meeting, or other event at
the lodging establishment. The license may authorize sales on all days of the week.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 16. CITY OF MINNEAPOLIS; LIQUOR LICENSE.
Notwithstanding any law, ordinance, or charter provision to the contrary, the city
of Minneapolis may issue an intoxicating liquor license to an establishment located at
2124 Como Avenue Southeast.
EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
City Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions
2 and 3.

    Sec. 17. SUPERSEDING PROVISIONS.
The provisions amending Minnesota Statutes, section 340A.404, subdivision 4a,
in this act supersede any inconsistent or conflicting provisions in 2009 S.F. No. 2083, if
enacted, regardless of the order of enactment or effective date of the provisions contained
in this act and the provisions in S.F. No. 2083.
Presented to the governor May 18, 2009
Signed by the governor May 20, 2009, 2:22 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569