| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to liquor; defining limited malt liquor and food retailer; authorizing the |
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| 3 | 3 | | 1.3 issuance of off-sale limited malt liquor licenses; making conforming changes; |
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| 4 | 4 | | 1.4 amending Minnesota Statutes 2024, sections 28A.16; 340A.101, subdivision 15a, |
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| 5 | 5 | | 1.5 by adding a subdivision; 340A.301, subdivision 8; 340A.402, subdivision 1; |
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| 6 | 6 | | 1.6 340A.408, subdivisions 3a, 5, by adding a subdivision; 340A.409, subdivision 4; |
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| 7 | 7 | | 1.7 340A.410, subdivision 8; 340A.414, subdivision 2; 340A.503, subdivision 1; |
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| 8 | 8 | | 1.8 340A.504, by adding a subdivision; 340A.508, subdivision 2; proposing coding |
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| 9 | 9 | | 1.9 for new law in Minnesota Statutes, chapter 340A. |
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| 10 | 10 | | 1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 11 | 11 | | 1.11 Section 1. Minnesota Statutes 2024, section 28A.16, is amended to read: |
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| 12 | 12 | | 1.12 28A.16 PERSONS SELLING LIQUOR. |
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| 13 | 13 | | 1.13 (a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01 |
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| 14 | 14 | | 1.14to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent |
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| 15 | 15 | | 1.15malt liquor "on-sale" as provided in section 340A.403, persons licensed to sell limited malt |
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| 16 | 16 | | 1.16liquor as provided in section 340A.4031, or to persons licensed to sell intoxicating liquors |
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| 17 | 17 | | 1.17"on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, provided that these |
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| 18 | 18 | | 1.18persons sell only ice manufactured and packaged by another, or bottled or canned soft drinks |
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| 19 | 19 | | 1.19and prepacked candy at retail. |
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| 20 | 20 | | 1.20 (b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner |
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| 21 | 21 | | 1.21must exclude all gross sales of off-sale alcoholic beverages when determining the applicable |
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| 22 | 22 | | 1.22license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive |
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| 23 | 23 | | 1.23liquor store" and "alcoholic beverage" have the meanings given in section 340A.101. |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | REVISOR JSK/DG 25-0071912/02/24 |
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| 26 | 26 | | State of Minnesota |
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| 27 | 27 | | This Document can be made available |
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| 28 | 28 | | in alternative formats upon request |
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| 29 | 29 | | HOUSE OF REPRESENTATIVES |
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| 30 | 30 | | H. F. No. 2202 |
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| 31 | 31 | | NINETY-FOURTH SESSION |
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| 32 | 32 | | Authored by Huot and Joy03/12/2025 |
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| 33 | 33 | | The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 Sec. 2. Minnesota Statutes 2024, section 340A.101, is amended by adding a subdivision |
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| 34 | 34 | | 2.2to read: |
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| 35 | 35 | | 2.3 Subd. 10b.Food retailer."Food retailer" is a for-profit, not-for-profit, or cooperative |
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| 36 | 36 | | 2.4self-service retail establishment that primarily sells, directly to consumers: bread and bakery |
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| 37 | 37 | | 2.5items; meats, seafood, and poultry; fruits, vegetables, and other produce; dairy products; |
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| 38 | 38 | | 2.6and dried, canned, and other packaged groceries and shelf-stable food products. A food |
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| 39 | 39 | | 2.7retailer includes large and mid-scale establishments such as supermarkets and grocery stores, |
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| 40 | 40 | | 2.8but may also include small-scale establishments such as corner stores or convenience stores. |
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| 41 | 41 | | 2.9 Sec. 3. Minnesota Statutes 2024, section 340A.101, subdivision 15a, is amended to read: |
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| 42 | 42 | | 2.10 Subd. 15a.Low-alcohol Limited malt liquor."Low-alcohol malt liquor" is a fermented |
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| 43 | 43 | | 2.11malt beverage containing two percent or less of alcohol by weight. Notwithstanding any |
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| 44 | 44 | | 2.12law or rule to the contrary, if either; (a) the term "low alcohol" appears on the label of the |
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| 45 | 45 | | 2.13beverage container; or (b) a brewer has provided written certification to the Department of |
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| 46 | 46 | | 2.14Public Safety establishing an alcoholic content of two percent or less by weight; no further |
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| 47 | 47 | | 2.15label shall be required on that container "Limited malt liquor" is malt liquor containing not |
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| 48 | 48 | | 2.16less than one-half of one percent alcohol by weight nor more than 15 percent alcohol by |
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| 49 | 49 | | 2.17weight. |
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| 50 | 50 | | 2.18 Sec. 4. Minnesota Statutes 2024, section 340A.301, subdivision 8, is amended to read: |
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| 51 | 51 | | 2.19 Subd. 8.Interest in other business.(a) Except as provided in this subdivision, a holder |
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| 52 | 52 | | 2.20of a license as a manufacturer, brewer, importer, or wholesaler may not have any ownership, |
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| 53 | 53 | | 2.21in whole or in part, in a business holding a retail intoxicating liquor, limited malt liquor, or |
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| 54 | 54 | | 2.223.2 percent malt liquor license. The commissioner may not issue a license under this section |
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| 55 | 55 | | 2.23to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating liquor has a |
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| 56 | 56 | | 2.24direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. A |
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| 57 | 57 | | 2.25manufacturer or wholesaler of intoxicating liquor may use or have property rented for retail |
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| 58 | 58 | | 2.26intoxicating liquor sales only if the manufacturer or wholesaler has owned the property |
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| 59 | 59 | | 2.27continuously since November 1, 1933. A retailer of intoxicating liquor may not use or have |
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| 60 | 60 | | 2.28property rented for the manufacture or wholesaling of intoxicating liquor. |
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| 61 | 61 | | 2.29 (b) Except as provided in subdivision 9, no brewer as defined in subdivision 9 or importer |
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| 62 | 62 | | 2.30may have any interest, in whole or in part, directly or indirectly, in the license, business, |
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| 63 | 63 | | 2.31assets, or corporate stock of a licensed malt liquor wholesaler. |
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| 64 | 64 | | 2.32 (c) A winery holding a license under subdivision 6, paragraph (b), that produces and |
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| 65 | 65 | | 2.33sells, including sales from the winery's premises, no more than 2,500 barrels or its metric |
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| 66 | 66 | | 2Sec. 4. |
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| 67 | 67 | | REVISOR JSK/DG 25-0071912/02/24 3.1equivalent of cider made from apples in a calendar year may own or have an interest in a |
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| 68 | 68 | | 3.2wholesaler that sells only the winery's apple-based cider products. The winery eligible to |
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| 69 | 69 | | 3.3own or have an interest in a wholesaler under this subdivision must provide the commissioner |
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| 70 | 70 | | 3.4with an affidavit stating that no existing wholesaler is available to represent and distribute |
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| 71 | 71 | | 3.5the winery's apple-based cider to retail license holders, and detailing the actions taken by |
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| 72 | 72 | | 3.6the winery in pursuing a distribution contract for the cider product. |
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| 73 | 73 | | 3.7 Sec. 5. Minnesota Statutes 2024, section 340A.402, subdivision 1, is amended to read: |
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| 74 | 74 | | 3.8 Subdivision 1.Disqualifiers.No retail license may be issued to: |
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| 75 | 75 | | 3.9 (1) a person under 21 years of age; |
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| 76 | 76 | | 3.10 (2) a person who has had an intoxicating liquor, limited malt liquor, or 3.2 percent malt |
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| 77 | 77 | | 3.11liquor license revoked within five years of the license application, or to any person who at |
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| 78 | 78 | | 3.12the time of the violation owns any interest, whether as a holder of more than five percent |
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| 79 | 79 | | 3.13of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or |
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| 80 | 80 | | 3.14in the business conducted thereon, or to a corporation, partnership, association, enterprise, |
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| 81 | 81 | | 3.15business, or firm in which any such person is in any manner interested; |
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| 82 | 82 | | 3.16 (3) a person not of good moral character and repute; |
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| 83 | 83 | | 3.17 (4) a person who: |
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| 84 | 84 | | 3.18 (i) has had a license or registration issued pursuant to chapter 342 or section 151.72, |
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| 85 | 85 | | 3.19subdivision 5b, revoked; |
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| 86 | 86 | | 3.20 (ii) has been convicted of an offense under section 151.72, subdivision 7; or |
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| 87 | 87 | | 3.21 (iii) has been convicted under any other statute for the illegal sale of marijuana, cannabis |
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| 88 | 88 | | 3.22flower, cannabis products, lower-potency hemp edibles, hemp-derived consumer products, |
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| 89 | 89 | | 3.23or edible cannabinoid products and the sale took place on the premises of a business that |
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| 90 | 90 | | 3.24sells intoxicating liquor or 3.2 percent malt liquor to customers; or |
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| 91 | 91 | | 3.25 (5) a person who has a direct or indirect interest in a manufacturer, brewer, or wholesaler. |
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| 92 | 92 | | 3.26 In addition, no new retail license may be issued to, and the governing body of a |
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| 93 | 93 | | 3.27municipality may refuse to renew the license of, a person who, within five years of the |
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| 94 | 94 | | 3.28license application, has been convicted of a felony or a willful violation of a federal or state |
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| 95 | 95 | | 3.29law or local ordinance governing the manufacture, sale, distribution, or possession for sale |
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| 96 | 96 | | 3.30or distribution of an alcoholic beverage. The Alcohol and Gambling Enforcement Division |
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| 97 | 97 | | 3.31or licensing authority may require that fingerprints be taken and forwarded to the Federal |
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| 98 | 98 | | 3.32Bureau of Investigation for purposes of a criminal history check. |
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| 99 | 99 | | 3Sec. 5. |
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| 100 | 100 | | REVISOR JSK/DG 25-0071912/02/24 4.1 Sec. 6. [340A.4031] LIMITED MALT LIQUOR LICENSES. |
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| 101 | 101 | | 4.2 Subdivision 1.Issuance by county or city.The governing body of a city may issue |
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| 102 | 102 | | 4.3off-sale licenses to food retailers for the sale of limited malt liquor within its jurisdiction. |
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| 103 | 103 | | 4.4The governing body of a county may issue off-sale licenses to food retailers for the sale of |
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| 104 | 104 | | 4.5limited malt liquor within the area of the county that is unorganized or unincorporated, with |
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| 105 | 105 | | 4.6the approval of the commissioner. |
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| 106 | 106 | | 4.7 Subd. 2.Exemption.Any person licensed to sell intoxicating liquor at off-sale shall not |
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| 107 | 107 | | 4.8be required to obtain an off-sale license under this section, and may sell limited malt liquor |
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| 108 | 108 | | 4.9at off-sale without further license. |
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| 109 | 109 | | 4.10 Subd. 3.Notice to commissioner.Within ten days of the issuance of a license under |
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| 110 | 110 | | 4.11this section, the city or county shall inform the commissioner, on a form the commissioner |
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| 111 | 111 | | 4.12prescribes, of the licensee's name and address and trade name, the effective date and |
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| 112 | 112 | | 4.13expiration date of the license, and any other information on the license the commissioner |
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| 113 | 113 | | 4.14requires. |
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| 114 | 114 | | 4.15 Sec. 7. Minnesota Statutes 2024, section 340A.408, is amended by adding a subdivision |
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| 115 | 115 | | 4.16to read: |
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| 116 | 116 | | 4.17 Subd. 1a.Limited malt liquor.(a) The license fee for an off-sale limited malt liquor |
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| 117 | 117 | | 4.18license is the fee set by the county or city issuing the license. |
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| 118 | 118 | | 4.19 (b) One-half of the license fee received by a county for a retail license to sell limited |
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| 119 | 119 | | 4.20malt liquor within any town in the county shall be paid to the town board where the business |
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| 120 | 120 | | 4.21is located. |
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| 121 | 121 | | 4.22 Sec. 8. Minnesota Statutes 2024, section 340A.408, subdivision 3a, is amended to read: |
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| 122 | 122 | | 4.23 Subd. 3a.Fee increases; notice, hearing.No city, town, or county shall increase the |
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| 123 | 123 | | 4.24fee for a liquor license governed by subdivision 1, 1a, 2, or 3, except after notice and hearing |
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| 124 | 124 | | 4.25on the proposed increase. Notice of the proposed increase must be mailed to all affected |
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| 125 | 125 | | 4.26licensees at least 30 days before the date set for the hearing. This subdivision supersedes |
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| 126 | 126 | | 4.27any inconsistent provision of law or charter. |
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| 127 | 127 | | 4.28 Sec. 9. Minnesota Statutes 2024, section 340A.408, subdivision 5, is amended to read: |
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| 128 | 128 | | 4.29 Subd. 5.Refunds.A pro rata share of an annual license fee for a retail license to sell |
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| 129 | 129 | | 4.30intoxicating liquor, limited malt liquor, or 3.2 percent malt liquor, either on-sale or off-sale, |
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| 130 | 130 | | 4.31may be refunded to the licensee or to the licensee's estate if: |
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| 131 | 131 | | 4Sec. 9. |
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| 132 | 132 | | REVISOR JSK/DG 25-0071912/02/24 5.1 (1) the business ceases to operate because of destruction or damage; |
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| 133 | 133 | | 5.2 (2) the licensee dies; |
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| 134 | 134 | | 5.3 (3) the business ceases to be lawful for a reason other than a license revocation; or |
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| 135 | 135 | | 5.4 (4) the licensee ceases to carry on the licensed business under the license. |
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| 136 | 136 | | 5.5 Sec. 10. Minnesota Statutes 2024, section 340A.409, subdivision 4, is amended to read: |
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| 137 | 137 | | 5.6 Subd. 4.Insurance not required.Subdivision 1 does not apply to licensees who by |
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| 138 | 138 | | 5.7affidavit establish that: |
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| 139 | 139 | | 5.8 (1) they are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000 of |
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| 140 | 140 | | 5.93.2 percent malt liquor for the preceding year; |
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| 141 | 141 | | 5.10 (2) they are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000 of |
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| 142 | 142 | | 5.113.2 percent malt liquor for the preceding year; |
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| 143 | 143 | | 5.12 (3) they are holders of on-sale wine licenses with sales of less than $25,000 for wine for |
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| 144 | 144 | | 5.13the preceding year; |
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| 145 | 145 | | 5.14 (4) they are holders of temporary wine licenses issued under law; or |
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| 146 | 146 | | 5.15 (5) they are wholesalers who donate wine to an organization for a wine tasting conducted |
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| 147 | 147 | | 5.16under section 340A.418 or 340A.419.; or |
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| 148 | 148 | | 5.17 (6) they are off-sale limited malt liquor licensees with sales of less than $50,000 of |
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| 149 | 149 | | 5.18limited malt liquor for the preceding year. |
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| 150 | 150 | | 5.19 Sec. 11. Minnesota Statutes 2024, section 340A.410, subdivision 8, is amended to read: |
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| 151 | 151 | | 5.20 Subd. 8.Copy of summons.Every application for the issuance or renewal of intoxicating |
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| 152 | 152 | | 5.21liquor, limited malt liquor, or 3.2 percent malt liquor licenses must include a copy of each |
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| 153 | 153 | | 5.22summons received by the applicant under section 340A.802 during the preceding year. |
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| 154 | 154 | | 5.23 Sec. 12. [340A.4111] LICENSE RESTRICTIONS; LIMITED MALT LIQUOR. |
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| 155 | 155 | | 5.24 All retail limited malt liquor licenses must be issued for one year, except that for the |
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| 156 | 156 | | 5.25purpose of coordinating the time of expiration of licenses in general, licenses may be issued |
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| 157 | 157 | | 5.26for a shorter time, in which case a pro rata license fee must be charged. |
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| 158 | 158 | | 5Sec. 12. |
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| 159 | 159 | | REVISOR JSK/DG 25-0071912/02/24 6.1 Sec. 13. Minnesota Statutes 2024, section 340A.414, subdivision 2, is amended to read: |
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| 160 | 160 | | 6.2 Subd. 2.Eligibility for permit.(a) The commissioner may issue a permit under this |
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| 161 | 161 | | 6.3section only to: |
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| 162 | 162 | | 6.4 (1) an applicant who has not, within five years prior to the application, been convicted |
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| 163 | 163 | | 6.5of a felony or of violating any provision of this chapter or rule adopted under this chapter; |
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| 164 | 164 | | 6.6 (2) a restaurant; |
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| 165 | 165 | | 6.7 (3) a hotel; |
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| 166 | 166 | | 6.8 (4) an establishment licensed for the sale of 3.2 percent malt liquor; |
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| 167 | 167 | | 6.9 (5) a resort as defined in section 157.15; |
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| 168 | 168 | | 6.10 (6) a club as defined in section 340A.101, subdivision 7, or an unincorporated club |
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| 169 | 169 | | 6.11otherwise meeting that definition; and |
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| 170 | 170 | | 6.12 (7) a bed and breakfast facility as defined in section 340A.4011, subdivision 1.; and |
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| 171 | 171 | | 6.13 (8) an establishment licensed for the sale of limited malt liquor. |
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| 172 | 172 | | 6.14 (b) The commissioner may not issue a permit to a club holding an on-sale intoxicating |
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| 173 | 173 | | 6.15liquor license. |
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| 174 | 174 | | 6.16 Sec. 14. Minnesota Statutes 2024, section 340A.503, subdivision 1, is amended to read: |
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| 175 | 175 | | 6.17 Subdivision 1.Consumption.(a) It is unlawful for any: |
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| 176 | 176 | | 6.18 (1) retail intoxicating liquor, limited malt liquor, or 3.2 percent malt liquor licensee, |
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| 177 | 177 | | 6.19municipal liquor store, or bottle club permit holder under section 340A.414, to permit any |
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| 178 | 178 | | 6.20person under the age of 21 years to drink alcoholic beverages on the licensed premises or |
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| 179 | 179 | | 6.21within the municipal liquor store; or |
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| 180 | 180 | | 6.22 (2) person under the age of 21 years to consume any alcoholic beverages. If proven by |
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| 181 | 181 | | 6.23a preponderance of the evidence, it is an affirmative defense to a violation of this clause |
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| 182 | 182 | | 6.24that the defendant consumed the alcoholic beverage in the household of the defendant's |
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| 183 | 183 | | 6.25parent or guardian and with the consent of the parent or guardian. |
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| 184 | 184 | | 6.26 (b) An offense under paragraph (a), clause (2), may be prosecuted either in the jurisdiction |
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| 185 | 185 | | 6.27where consumption occurs or the jurisdiction where evidence of consumption is observed. |
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| 186 | 186 | | 6.28 (c) As used in this subdivision, "consume" includes the ingestion of an alcoholic beverage |
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| 187 | 187 | | 6.29and the physical condition of having ingested an alcoholic beverage. |
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| 188 | 188 | | 6Sec. 14. |
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| 189 | 189 | | REVISOR JSK/DG 25-0071912/02/24 7.1 Sec. 15. Minnesota Statutes 2024, section 340A.504, is amended by adding a subdivision |
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| 190 | 190 | | 7.2to read: |
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| 191 | 191 | | 7.3 Subd. 1a.Limited malt liquor.No sale of limited malt liquor may be made between |
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| 192 | 192 | | 7.42:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between 2:00 a.m. |
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| 193 | 193 | | 7.5and 10:00 a.m. on Sunday. |
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| 194 | 194 | | 7.6 Sec. 16. Minnesota Statutes 2024, section 340A.508, subdivision 2, is amended to read: |
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| 195 | 195 | | 7.7 Subd. 2.Tampering or diluting contents.It is unlawful for a person holding a retail |
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| 196 | 196 | | 7.8intoxicating liquor license, limited malt liquor license, or a 3.2 percent malt liquor license, |
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| 197 | 197 | | 7.9directly or indirectly through an agent, employee, or other person, to dilute or in any manner |
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| 198 | 198 | | 7.10tamper with the contents of an original package or bottle so as to change its composition or |
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| 199 | 199 | | 7.11alcoholic content while the contents are in the original package or bottle. Possession on the |
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| 200 | 200 | | 7.12premises by a licensee of alcoholic beverages in the original package or bottle, differing in |
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| 201 | 201 | | 7.13composition or alcoholic content from when it was received from the manufacturer or |
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| 202 | 202 | | 7.14wholesaler from whom it was purchased, is prima facie evidence that the contents of the |
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| 203 | 203 | | 7.15original package or bottle has been diluted, changed, or tampered with in violation of this |
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| 204 | 204 | | 7.16section. |
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| 205 | 205 | | 7Sec. 16. |
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| 206 | 206 | | REVISOR JSK/DG 25-0071912/02/24 |
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