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10/7/2021
1
Minnesota Department of Public Safety
Alcohol and Gambling Enforcement Division
2021
Liquor License Overview
AGED’s Mission
To protect and serve the public through uniform interpretation, regulation and enforcement of the state’s liquor and gambling laws and rules. To maintain stability and integrity in the alcoholic beverage and gaming industries through management of licensing, education, regulation and enforcement.
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The Three Tier System
“3.2” BeerMinnesota is the last state with 3.2 (MN Statute 340A.403 and 340A.411)
Utah just raised the limit on beer sold in their state to 5% alcohol by volume, this equates to 3.9% alcohol by weight.
Minnesota Rules Chapter 7515.1100 subpart 2 allows 3.2 licensed retail to sell 4% alcohol by volume as it equals 3.2% by weight. Kegs, barrels, sealed cases and bottles and cans must be labeled in Minnesota as contains not more than 3.2 percent of alcohol by weight" or similar expression of like meaning.
“3.2” Beer
If a product label does not indicate alcohol content as 3.2 by weight or 4% or less ABV (alcohol by volume) it cannot be sold at 3.2.
Some brewers are still making 3.2 beer according to their wholesalers
Other brewers are coming out with 4% ABV beers as alternatives to 3.2
Many coolers and seltzers are classified as beer in Minnesota and labeled as 4% ABV
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“3.2” Beer
AGED and local issuing authorities cannot just upgrade a 3.2 business to strong beer wine or full on-sale. A business must qualify for the license. Full liquor and wine with strong beer license options can be found in Minnesota Statute 340A.404. Some businesses will qualify. Some will not.
State License
All ManufacturingAll Wholesale All Import Retail
– Wine license– Off-sale– Consumption & Display– Combination– Catering Permit– County On-Sale– Club
Local license
3.2 Off-sales3.2 On-salesCity On-salesMunicipal Off-saleMunicipal On-saleMunicipal CombinationTemporary licenses
State Issues and Registers
Brand LabelsAny alcoholic beverage manufactured, imported into, or sold in the state must have the brand label registered with and approved by the commissioner
There are currently over 52,000 brand labels registered in Minnesota.MN Statute 340A.311
ID CardsAll retailers of alcoholic beverages over 3.2 percent alcohol must have ID Card (buyer’s card) so wholesalers can legally ship to them.
Wholesaler sales persons must have ID cards
Manufacturer representatives must have ID cardsMN Rules 7515.0210
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Manufacture Licensing Overview
What makes a manufacturer?
MN Statute 340A.101 subd.17Any process that changes the formula of the alcohol product:
– Fermenting– Rectifying– Distilling– Aging – Bottling– Blending
When is a license needed?
Anyone who manufacturers alcohol (malt beverage or wine) for public consumption needs a manufacturing licenseORAnyone manufacturing distilled spirits
(Cannot produce distilled spirits in any amount for personal use)
MN Statute 340A.301
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Unlicensed Alcohol Manufacturing is a
Felony*Cannot produce distilled spirits in any amount for personal use MN Statute 340A.301
No person may direct or indirectly manufacture or sell at wholesale intoxicating liquor without obtaining proper licensing.
MN Statute 340A.701 It is a felony to manufacture alcohol in violation of Chapter
340A.
U.S.C. Title 27 Chapter 19.51 Home Production of Distilled Spirits A person may not produce distilled spirits at home for
personal use.
Unlicensed Manufacture in Minnesota
Manufacturing Licenses
Issued and Inspected by the State
BreweryBrewpub
Liquor ManufacturerMicro DistilleryFarm Winery
Commercial Winery
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Brewer’s License
Micro Brewer – less than 2,000 barrelsSmall Brewer – less than 3,500 barrelsMN Brewer – more than 3,500 barrels
More than 20,000 barrels annuallyno growlers & no self distribution
MN Statute 340A.301
Brewery TaproomPer MN Statute 340A.26
– “Brewer taproom license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. “
Brewer that brews more than 250,000 barrels of malt liquor annually would not qualifyOn-sale Taproom license is issued and approved by city.License fee set by city. City certifies issue to AGED.
Brewer Off-Sale
MN Statutes 340A.28
Brewer’s who manufacture under 20,000 barrels annually may apply.
Limited to 750 barrels dedicated to off-sale annually.
Growler Sunday sales permitted
City issued state approved.
City sets fee base on limits set forth in 340A.408
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What is a Growler?MN Statutes 340A.285
Off-Sale Package
64 ounce or 750 milliliter container (glass, plastic, steel)
Twist-type closure, cork, stopper, or plug
Must have name and address of the brewer Must have label with type of malt beverage
Brewery may refill any other growlers
MS 340A.24 Brew Pubs:
Retail on-sale liquor license (Full on-sale or Wine & Beer license required)
Issued to a restaurant
Manufacture malt beverage on premise to serve on premise
Off-Sale growler license (with
additional license)
Brew Pubs
Microbrewery vs Brew Pub
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Micro DistilleriesMN Statute 340A.22
Manufacture distilled spirits Cocktail room to sell their distilled spirits at on-saleCan sell off-sale 375 milliliter bottles from distillery Limit of 1 bottle per person, per visit
Distillery Cocktail RoomMN Statute 340A.22
Cocktail Room License can only be issued to distillery licensed by AGED
A micro distillery cocktail room license authorizes on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller”
Sunday Sales allowed
Cocktail Room License is issued by the city, license fee set by city
Distillery Off-Sale
Distilleries can sell– one 375 milliliter bottle
per personper visit per day
*Off-sale Hours & Days of sale apply
MN Statutes 340A.22 and 340A.504License fee set by city
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“Creativity” in the Industry
Liquor Manufacture
Large scale manufactureAnnual license fee $30,000.00 license issued by AGEDNo Wholesale or retail allowed.
Farm WineryMN Statute 340A.315
Winery located on aMN Farm/Agriculturalland
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Have to operate on agriculture land or be issued CUPManufacture of wine (use 51% of MN produce)Wholesale to on/off retailers Can sell at on-sale and off-sale from the farm winery locationAn optional county on-sale license to sell other alcoholic beverages
Farm Winery
Intended to manufacture wine on a larger scaleCan also be a craft winery that is not a farm wineryManufacture of wine (if 51% of MN produce) can retail their wine at both on and off-sale with no additional license (MN Statute 340A.301 subdivision 10)CANNOT sell at wholesale to on/off retailers
Wine Manufacturer
Exceptions to Alcohol Manufacturer Statute
The Liquor Chapter permits the natural fermentation of fruit juices or brewing of beer in the home for family use.
Wine and Beer only
Does not apply to Distilled Spirits
MN Statute 340A.301 subd.11
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Home Brewer/Wine MakerMN Statute 340A.301 subd.11
The beer and wine can be taken out of the home for
Organized affairs, exhibits or competitions (i.e. contests, tasting or judging)General public (over 21) may sample unlicensed, unregulated productProducer is required to disclose the product is unlicensed and consumption is done at their own riskCANNOT be sold or offered for sale
Questions?
Retail Licensing Overview
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Local Restrictions
340A.509 LOCAL RESTRICTIONS.
A local authority may impose further restrictions and regulations on the sale and possession of alcoholic beverages within its
jurisdiction.
Evacuation ordinanceSunday restrictionsNumber of On/Off Sale licensesFee Structure
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.
License Required
Who Can Have a Retail Alcohol License?
MN Statute 340A.402
Must be 21No direct or indirect interest in a manufacturer, brewer, or wholesalerNo felony conviction within five years
Can affect renewal as city/county may choose not to renew
No liquor license revoked within five yearsGood moral character and repute?
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General License Information
- All alcoholic beverage licenses are valid for one year. (Exception county issued seasonal).
- Licenses are renewed annually.- All licenses start with an application
process at either the state or local level.- All licenses require applicant
background checks.- State issued and approved licenses
require a pre-license inspection. (Annual inspections of state issued and approved licenses is a goal).
Licensing Info
Liquor Licenses are not a commodity, they cannot be sold or given to another
Not transferable - New owner = New License
Not movable - New location = New License
On-Sale LicenseMN Statute 340A.404
On-sale is the sale of alcoholic beverages for consumption on the licensed premises onlyIssued by municipality and certified by the state.Allows for the sale and service of all liquor types
– Intoxicating liquor– Wine– Malt beverage– Fee set by city
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Limited Off-Sale by On-Sale License
Limited off-sale by on-sale license with take out food orders has ended.Per statute, the authority to make limited off-sales of malt liquor, hard seltzer, cider, and wine expired when the closure of restaurants as set forth in Executive Orders expired or were terminated or rescinded.
Outdoor Seating?
No more creativity related to compact and contiguous.
What is Licensed?
Licensed premises is the premises described in the approved license application (i.e. patio or adjoining space)Must be compact and contiguous (MN Statute 340A.410 subd.7, MN Rules 7515.0430 subp.2)
No parking lots (areas where motor vehicles are regularly parked or operated)*Exception only for restaurants, clubs or exclusive on-sale located on golf course
(MN Statute 340A.101 Subd.15)
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County Liquor LicensesMN 340A.404 subdivision 6
On-Sale Intoxicating Licenses to:– Bowling Centers– Hotels, as defined in the Liquor Chapter
– Restaurants, as defined in the Liquor Chapter
– Clubs, as defined in the Liquor Chapter
– Seasonal License to Clubs or Restaurants(Definitions can be found in MN Statute 340A.101)
County On Sale License
On-Sale Wine LicenseMN 340A.404 subdivision 5
Issued to Restaurants with seating for at least 25 customers or Live Performance Theaters
Wine Only – Sales of wine up to 24% by volume
City/County issued 3.2% on-sale license – Sales of wine and 3.2% beer
Authorization for Strong Beer Sales –Sales of wine and all beersLicense fees see MN Statute 340A.408
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On-Sale Wine LicenseMN 340A.404 subdivision 5
Club LicenseMN Statute 340A.404 subd.1
Club is:– Civic, fraternal, social, or business
purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization
– In existence for at least three years – Has more than 30 members– Has owned or rented a building or
space in a building for more than one year that is suitable
Liquor sales will only be to members and bona fide guests
*Requires documentation
License fees see MN Statute 340A.408
Club LicenseMN Statute 340A.404 subd.1
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Brewery Taproom On Sale
Brew PubsCounty Issued State Approved
On Sale
Distillery Cocktail RoomMN Statute 340A.22
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Alcohol Catering PermitsMN Statute 340A.404 subd.12
Licensee applies directly to AGED
Must have valid on-sale license (full or wine)
Must be a restaurant with the legal ability to cater food requirements to cater alcohol legally in MN
Permit Holder MUST cater foodMUST notify local Law Enforcement(Fee $300.00 good for one year liquor liability for off-site catered events required)
Alcohol Catering PermitsMN Statute 340A.404 subd.12
Temporary Liquor LicenseMN Statute 340A.404 subd.10
Issued to charitable, non-profit organizations in existence for 3 years or…A registered political committee or…A state university or…A brewer of less than 3,500 bbls or…A micro distillery
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Temporary Licensing
Temporary Licensing
Email signed applications to: [email protected]
A municipality may issue a three four-day, four three-day, six two-day, or twelve one-day temporary licenses in any combination, not to exceed 12 days per year to any one organization or political committee, or for any one location within a twelve month period.
30 days between events (Does not apply to cities with a population of 5,000 or fewer)
Community Festival
A city may authorize a holder of a retail on-sale intoxicating liquor license (issued by city) to dispense intoxicating liquor off premises at a community festival held within the municipality.
The city shall specify the area where intoxicating liquor must be dispensed and consumed
Authorization shall not be issued unless the licensee has liability insurance to cover the event.MN Statute 340A.404 subd.4
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Consumption & Display(AKA: Set-up Permit)
The C&D Permit allows the consumption and display of alcoholic beverages brought to the business by the patron. The business should not be touching the customer’s alcohol!Liabilities remain the same for the business - underage concerns, over consumption…
MN Statute 340A.414
Consumption & Display
Hours and Days of On Sale
MN Statute 340A.504– To include Wine, Consumption and
Display permits, Temporary permits, Clubs, Catering permits
– 8 am to 1 am– All days of week
Optional 2 am PermitSunday license required
for Sunday sales
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Hours and Days of On Sale
2 am Permit Application
Business Open House License Needed?
Senior Living CenterLicense Needed?
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169A.35 OPEN BOTTLE LAW
Subdivision 6 Exceptions(a) This section does not prohibit the possession or consumption of alcoholic beverages by passengers in:
(1) a bus that is operated by a motor carrier of passengers, as defined in section 221.012, subdivision 26;(2) a vehicle that is operated for commercial purposes in a manner similar to a bicycle as defined in section 169.011, subdivision 4, with five or more passengers who provide pedal power to the drive train of the vehicle; or(3) a vehicle providing limousine service as defined in section 221.84, subdivision 1.
Off-Sale Liquor licenseMN Statute 340A.405
Off-sale is the sale of alcoholic beverages in original packages for consumption off the licensed premises only
Exclusive liquor store" is an establishment used exclusively for the sale of the following items;
– Liquor, Ice, Tobacco, Liquid mixes– Food products that contain more than one-half of
one percent alcohol by volume– Home Brewing equipment– Books, Magazines, videos about alcohol use– Clothing with liquor store name– Single use bags– Cork extraction and safe storage devices
See 340A.408 for license fees
County Off-Sale Restrictions
No Off-Sale license may be issued if the premise is less than ONE mile from a city with a municipal liquor store or THREE miles from a city outside the metro area with a population over 5,000 and a municipal liquor store.
MN Statute 340A.405 subdivision 2 (e)
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Distillery Off-Sale
Combination LicenseOff-Sale
MN Statute 340A.406
Issued in combination with an On-Sale Intoxicating license that is not a Wine License or a Club license.Off-Sales may be from behind the bar or from a “bottle shop”
(Applies to counties, cities of the fourth class or a statutory city with a population of 10,000 or fewer. A city who issues these types of licenses may continue to do so when the population exceeds 10,000)
Combination License
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Hours and Days of SaleMN Statute 340A.504
Off-Sales open;
– 8 am to 10 pm– Monday to Saturday– 11 am to 6 pm Sunday
No sales on ThanksgivingChristmasAfter 8 pm on Christmas Eve
Questions?
Filling out an application for a
liquor license
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AGED’s Role in County Retail Licenses
Review the received application, liquor liability certificate, the license certificate and the Retail ID card (Buyer’s Card)Assigned to a Liquor AgentPre-license site visit with applicantRecommend approval or denial to licensingstaff
Basic Licensing Info
New Licenses require;New insurance certificate New buyer’s card
No more than one liquor license for one address Use Suite #’s, Floors, etc. to
separate
Comparing Retail LicensesLICENSE Inspection Seating Food Required
• County On-Sale No Category 2 or 3
• Off-Sale No No
• Combination No Category 2 or 3
• Wine/Strong Beer At least 25 Seats Category 2 or 3
• Consumption & Display
No Not necessarily
• Catering Permits No Category 2 or 3
• 3.2 (On/Off sale) No No Not necessarily
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Liquor License ApplicationCorporate or individual name and physical address of location
Individuals or Owners/Partners of those who share stock in company (will not accept NA or left Blank)
Name of actual business, same as sign name (not corporation)
The time frame the business will be licensed (must be concurrent years)
Important: It must accurately describe physical building and any additional space on the application in order to be licensed (i.e. patio)
Liquor License Application
This verifies that criminal record check was conducted, police and county attorney sign
The entire section must be filled out, return to applicant if incomplete
Liquor License Application
Insurance certificate must be included for a completed application
If insurance does not match name or physical address; please return to applicant for completion
MUST BE SIGNED!
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Retail Identification Card Application
Top line is completed by AGED Staff not applicant
Name and Address should match exactly to license application
Retail Identification Card
Buyer’s Card ($20 Fee) is required for the Licensee to show a valid retail license so they purchase alcohol from licensed distributors.
Common Application
Issues
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Common Application Issues
Applications will be returned if:– Missing information, double check to fill out everything
Crossed out or hand-written additions not accepted– Licensee did not answer questions– No signature from licensee, police or city attorney
County License needs all four signatures
*Remember, the responsibility falls on the applicant . . . . . . . . . NOT THE Issuing Authority (You)
Common Insurance Issues
AGED will not accept incomplete applications– Insurance mistakes;
No Insurance– Has to have “Liquor Liability” on the certificate
Dates do not match license dates – Has to be for continuous year period – Unless “Continuous Until Cancelled”
Name and address of establishment does not match application exactly– Names of business must match– Physical Address only– NO P.O. Box Addresses (only physical addresses can be licensed)– No home addresses– Crossed out or hand-written addresses not accepted
Certificate of Insurance onlyNO BINDERS, DECLARATIONS, OR QUOTES !
Liquor Liability Insurance Certificate
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License Renewals
License Renewals
How do you know renewal is the correct form?When no changes in ownership or location have occurred in the past year
Renewal Process;The renewal is printed out by AGEDThen mailed to local issuing authorities to send out to their license holders.Changes in percentage of ownership or removal of a person from ownershipReport any violations within past yearAll signatures required to processMust include Liquor Liability insurance
License Renewals
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License RenewalsInsurance is required for renewal process;
AGED will not accept incomplete applications– Insurance mistakes;
No Insurance– Has to included Liquor Liability on the certificate
Dates do not match license dates – Must match local authority license period– Unless “Continuous Until Cancelled”
Address of establishment does not match application exactly– Physical Address only– NO P.O. Box Addresses (only physical addresses can be licensed)– No home addresses– Crossed out or hand-written addresses not accepted
Certificate of Insurance onlyNO BINDERS, DECLARATIONS, OR QUOTES !
Liquor Liability Insurance Certificate
Cheat Sheet
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Liquor License Applicationshttps://dps.mn.gov/divisions/age/forms-
documents/Pages/default.aspx
Liquor License ApplicationsStatus of License
https://app.dps.mn.gov/AGEDIS5/DataAccess/pages/Welcome.html
Liquor License ApplicationsStatus of License
https://app.dps.mn.gov/AGEDIS5/DataAccess/pages/Welcome.html
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Alcohol & Gambling Enforcement License Office Contacts
James De LaHunt 651/201-7525 [email protected], Brew Pubs, Wineries, Distilleries, Wholesalers, Importers, Taproom, Brewer/Brew Pub Off Sales, Cocktail Room, Distillery Off Sale, Common Carrier/ Tour Boats and Branch’s, Brand Labels.
Crystal Pietrzak 651/201-7510 [email protected] Wine, Club, Off-Sale, County Licenses, Combination licenses (New & Renewal), All Iron Range Cities (New and Renewal, On & Off Sales)
Carl Albrecht 651/201-7512 [email protected] Issued On-Sale Licenses (New & Renewal), Caterer Permits, Optional 2 AM Licenses, All 3.2 licenses, Temporary Permits, Municipal Liquor Stores
VacantConsumption & Display permits, Ethyl Alcohol permits, and Buyer’s cards (New and Renewals)
Questions?