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