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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: AGE.TEMPORARYAPPLICATION@STATE.MN.US

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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Can This Have an On-Sale?

Can This Be Licensed?

Would This Be Different?

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How About This?

Or This?

Party Bus and Limo?

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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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Off-Sale Liquor license

Brewer Off-Sale

Brew PubsCounty Issued State Approved Off

Sale

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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 james.delahunt@state.mn.usBrewers, 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 crystal.pietrzak@state.mn.usAll 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 carl.albrecht@state.mn.usCity 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?