§ 2 -   Definitions

§ 2. Definitions

The following words as used in this title, unless a contrary meaning is required by the context, shall have the following meaning:

(1) "Alcohol": the product of distillation of any fermented liquor, rectified either once or oftener whatever may be the origin thereof, and includes ethyl alcohol and alcohol which is considered nonpotable.

(2) "Boat": a vessel suitably equipped and operated for the transportation of passengers in interstate commerce.

(3) "Bottler": any person other than a brewer who shall bottle malt, or vinous beverages for sale or for distribution in this state.

(4) "Bottler's license": the license granted by the liquor control board permitting a bottler to bottle for sale and to distribute and sell at wholesale malt or vinous beverages.

(5) "Cabaret license": a first class license or first and third class licenses where the business is devoted primarily to providing entertainment, dancing, and the sale of alcoholic beverages to the public and not the service of food. The holder of a "cabaret license" shall serve food at all times when open for business and shall have adequate and sanitary space and equipment for preparing and serving food. However, the gross receipts from the sale of food shall be less than the combined receipts from the sales of alcoholic beverages, entertainment, and dancing in the prior reporting year. All laws and regulations pertaining to a first class license or first and third class licenses shall apply to the first class or first and third class cabaret licenses.

(6) "Caterer's permit": a permit issued by the liquor control board authorizing the holder of first and third class licenses for a cabaret, restaurant or hotel premises to serve malt or vinous beverages or spirituous liquors at a function located on premises other than those occupied by a first, first and third, or second class licensee to sell alcoholic beverages.

(7) "Club": an unincorporated association or a corporation authorized to do business in this state, that has been in existence for at least two consecutive years prior to the date of application for license under this title and owns, hires or leases a building or space in a building that is suitable and adequate for the reasonable and comfortable use and accommodation of its members and their guests and contains suitable and adequate kitchen and dining room space and equipment implements and facilities. A club may be used or leased by a nonmember as a location for a social event as if it were any other licensed commercial establishment. Such club shall file with the liquor control board, before May 1 of each year, a list of the names and residences of its members and a list of its officers. Its affairs and management shall be conducted by a board of directors, executive committee or similar body chosen by the members at its annual meeting, and no member or any officer, agent or employee of the club shall be paid, or directly or indirectly receive, in the form of salary or other compensation, any profits from the disposition or sale of alcoholic liquors to the members of the club or its guests introduced by members beyond the amount of such salary as may be fixed and voted at annual meetings by the members or by its directors or other governing body, and as reported by the club to the liquor control board. An auxiliary member of a club may invite one guest at any one time. An officer or director of a club may perform the duties of a bartender without receiving any payment for that service, provided the officer or director is in compliance with the requirements of this title that relate to service of alcoholic beverages. A bona fide unincorporated association or corporation whose officers and members consist solely of veterans of the armed forces of the United States, or a subordinate lodge or local chapter of any national fraternal order, and which fulfills all requirements of this subdivision, except that it has not been in existence for two years, shall come within the terms of this definition six months after the completion of its organization. A club located on and integrally associated with at least a regulation nine-hole golf course need only be in existence for six months prior to the date of application for license under this title.

(8) "Control commissioners": the commissioners appointed under section 166 of this title.

(9) "Dining car": a railroad car on which meals are prepared and served.

(10) "First class license": a license granted by the control commissioners permitting the licensee or seller of malt or vinous beverages to sell to the public for consumption only on the premises for which the license is granted.

(11) "Specialty beer": a malt beverage that contains more than eight percent alcohol and not more than 16 percent alcohol by volume at 60 degrees Fahrenheit.

(12) "Commissioner of liquor control": the executive officer of the liquor control board appointed under the provisions of this title.

(13) "Liquor control board": the board of control appointed under the provisions of this title.

(14) "Malt beverages": all fermented beverages of any name or description manufactured for sale from malt, wholly or in part, or from any substitute therefor, known as beer, porter, ale, and stout, containing not less than one percent nor more than 16 percent of alcohol by volume at 60 degrees Fahrenheit. However, if such a beverage has an alcohol content of more than six percent and has a terminal specific gravity of less than 1.009, it shall be deemed to be a spirit and not a malt beverage. The holder of the certificate of approval or the manufacturer shall certify to the liquor control board the terminal specific gravity of the beverage when the alcohol content is more than six percent.

(15) "Manufacturer's or rectifier's license": a license granted by the liquor control board that permits the holder to manufacture or rectify, as the case may be, malt beverages and vinous beverages for export and for sale to bottlers or wholesale dealers, or spirituous liquors for export and for sale to the liquor control board, upon application of a manufacturer or rectifier and the payment to the liquor control board of the license fee as required by subdivision 231(1) of this title for either license. The liquor control board may grant to a licensed manufacturer or rectifier a first class restaurant or cabaret license or first and third class restaurant or cabaret license permitting the licensee to sell alcoholic beverages to the public only at the manufacturer's premises. A manufacturer of malt beverages who also holds a first class restaurant or cabaret license may serve to a customer malt beverages by the glass, not to exceed eight glasses at one time and not to exceed four ounces in each glass. The liquor control board may grant to a licensed manufacturer or a rectifier of malt or vinous beverages a second class license permitting the licensee to sell alcoholic beverages to the public only at the manufacturer's or rectifier's premises. A licensed manufacturer or rectifier of vinous beverages may serve, with or without charge, at an event held on premises of the licensee or the vineyard property vinous and malt beverages, provided the licensee gives the department written notice of the event, including details required by the department, at least 15 days before the event. Any beverages not manufactured by the licensee and served at the event shall be purchased on invoice from a licensed manufacturer or wholesale dealer. Upon application and payment of the license fee as required by subdivision 231(11) of this title, the liquor control board may grant to a licensed manufacturer or rectifier of vinous beverages fourth class or farmers' market licenses permitting the licensee to sell fortified wines and vinous beverages by the bottle to the public at the licensed premises or at a farmers' market, provided that the beverages were produced by the manufacturer or rectifier. No more than a combined total of ten fourth class and farmers' market licenses may be granted to any licensed manufacturer or rectifier. An application for a farmers' market license shall include copies of the farmers' market regulations, the agreement between the farmers' market and the applicant, and the location and dates of operation of the farmers' market. A farmers' market license shall be valid for all dates of operation for a specific farmers' market location. However, in no case may a person with an interest in more than one manufacturer's or rectifier's license have an interest in more than four fourth class licenses. The manufacturer or rectifier shall pay directly to the commissioner of taxes the sum of $0.265 cents per gallon for every gallon of malt beverage and the sum of $0.55 cents per gallon for each gallon of vinous beverage manufactured by the manufacturer or rectifier and provided for sale pursuant to the first class license or the second class license or the fourth class license or combination thereof held by the manufacturer or rectifier. Holders of a manufacturer's or rectifier's second class license for malt beverages may distribute, with or without charge, malt beverages by the glass, not to exceed two ounces per product and eight ounces in total, to all persons of legal drinking age. The malt beverages must be consumed upon the premises of the holder of the license. At the request of a person holding a first class or second class license, a holder of a manufacturer's or rectifier's license for malt beverages may distribute without charge to the management and staff of the license holder, provided they are of legal drinking age, no more than four ounces per person of a malt beverage for the purpose of promoting the beverage. Written notice shall be provided to the department of liquor control at least 10 days prior to the date of the tasting. A licensed manufacturer or rectifier of spirits may do either or both of the following only on the manufacturer's or rectifier's premises:

(A) Sell by the glass or bottle to the public spirits manufactured by the licensee.

(B) Dispense by the glass, with or without charge, spirits manufactured by the licensee, provided that no more than one quarter ounce per product and no more than one ounce in total is dispensed to each individual of legal age.

(16) "Person," as applied to licensees, means individuals who are citizens of the United States, partnerships composed of individuals, a majority of whom are citizens of the United States, and corporations organized under the laws of this or another state in which a majority of the directors are citizens of the United States and to limited liability companies organized under the laws of this or another state in which a majority of the members or managers are citizens of the United States.

(17) "Restaurant": a space in a suitable building, approved by the liquor control board, occupied, used, maintained, advertised, or held out to the public to be a place where food is served at all times when open for business and there are no sleeping accommodations. The space shall have adequate and sanitary kitchen and dining room capacity and the number and kinds of employees for preparing, cooking, and serving suitable food for guests and patrons as required by the liquor control board.

(18) "Retail dealer": any person who sells or distributes malt or vinous beverages to the public.

(19) "Second class license": a license granted by the control commissioners permitting the licensee or seller to sell malt or vinous beverages to the public for consumption off the premises for which the license is granted. The words permit and license shall have the same meaning in this title.

(20) "Spirits": beverages for sale containing more than one percent of alcohol obtained by distillation, by chemical synthesis, or through concentration by freezing; and vinous beverages containing more than 16 percent of alcohol; and all vermouths of any alcohol content; malt beverages containing more than 16 percent of alcohol or more than six percent of alcohol if the terminal specific gravity thereof is less than 1.009; in each case measured by volume at 60 degrees Fahrenheit.

(21) "Spirituous liquors": all spirits as defined in subdivision (20) of this section.

(22) "Third class license": a license granted by the liquor control board permitting a person as defined in subdivision (16) of this section to sell spirituous liquors in a hotel, restaurant, cabaret, club, boat or dining car as herein defined.

(23) "Vinous beverages": all fermented beverages of any name or description manufactured or obtained for sale from the natural sugar content of fruits, or other agricultural product, containing sugar, the alcoholic content of which is not less than one percent nor more than 16 percent by volume at 60 degrees Fahrenheit: except that all vermouths shall be purchased and retailed by and through the liquor control board as authorized in chapter 5 and chapter 7 of this title.

(24) "Wholesale dealer": any person other than a bottler who buys malt, or vinous beverages for distribution to or resale to retail dealers or to agencies of the United States.

(25) "Wholesale dealer's license": the license granted by the liquor control board permitting the wholesale dealer to sell or distribute malt or vinous beverages as a wholesale dealer.

(26) "Minor": a person who has not attained the age of 21.

(27) "Special events permit": a permit granted by the liquor control board permitting a person holding a manufacturer's or rectifier's license to attend an event open to the public, which has been approved by the local licensing authority, to sell by the glass or by unopened bottle spirits, malt, or vinous beverages manufactured or rectified by the license holder. For the purposes of tasting only, the permit holder may distribute, with or without charge, beverages manufactured by the permit holder, provided that the permit holder distributes no more than two ounces per product and eight ounces total of malt or vinous beverages and no more than one ounce in total of spirits to individuals of legal age. No more than 12 special events' permits shall be issued to a holder of a manufacturer's or rectifier's license during a year. The fee for the permit is as required by subdivision 231(13) of this title, and shall be paid to the department of liquor control. Requests for a special events' permit shall be submitted to the department of liquor control and received by the department at least 15 days prior to the date of the event. Each manufacturer or rectifier planning to attend a single special event under this permit may be listed on a single permit. However, each attendance at a special event shall count toward the manufacturer's or rectifier's 12 special-event-permit limitation.

(28) "Fourth class license": the license granted by the liquor control board permitting a manufacturer or rectifier of vinous beverages to sell fortified wines manufactured by the licensed manufacturer or rectifier and vinous beverages by the bottle and distribute, with or without charge, those beverages by the glass.

(29) "Festival permit": a permit granted by the liquor control board permitting a person to conduct an event at which malt or vinous beverages, or both, are sold by the glass to the public, provided the event is approved by the local licensing authority. A festival permit holder may purchase invoiced volumes of malt or vinous beverages directly from a manufacturer or bottler, provided the manufacturer or bottler either holds a Federal Basic Permit or a Brewers Notice or evidence of licensure in a foreign country, satisfactory to the board, whichever applies. The invoiced volumes of malt or vinous beverages may be transported to the site and sold by the glass to the public by the permit holder or its employees and volunteers only during the event. A festival permit holder shall be subject to the provisions of this chapter, including section 240 of this title, and the rules of the board regarding the sale of the alcoholic beverages and shall pay the tax on the malt or vinous beverages as required by section 421 of this title. A person shall not be granted a festival permit more than four times in one year, and each permit shall be valid for no more than four consecutive days. A request for a festival permit shall be submitted to the department in a form required by the department at least 15 days prior to the festival and shall be accompanied by a permit fee as required by subdivision 231(14) of this title to be paid to the department.

(30) "Home-fermented beverages": malt or vinous beverages produced at home and not for sale.

(31) "Legal age": 21 years of age or older.

(32) [Repealed.] (Amended 1959, No. 329 (Adj. Sess.), §§ 33, 39(b), eff. March 1, 1961; 1961, No. 76; 1964, No. 1 (Sp. Sess.); 1971, No. 64, § 1; 1973, No. 34, § 3; 1975, No. 44, § 1, eff. April 15, 1975; 1979, No. 103 (Adj. Sess.), § 1, eff. April 2, 1980; No. 115 (Adj. Sess.), § 2; 1981, No. 137 (Adj. Sess.) § 1, eff. April 6, 1982; No. 139 (Adj. Sess.), § 1; 1985, No. 99 (Adj. Sess.), § 1; No. 159 (Adj. Sess.), § 1; 1987, No. 188 (Adj. Sess.), §§ 1, 2, eff. May 11, 1988; 1989, No. 138 (Adj. Sess.); 1991, No. 250 (Adj. Sess.); 1993, No. 46, § 3; 1993, No. 112 (Adj. Sess.), §§ 1, 2, eff. Feb. 18, 1994; No. 168 (Adj. Sess.), §§ 1, 2; 1995, No. 26, § 1; 1995, No. 69 (Adj. Sess.), § 1, eff. Feb. 15, 1996; No. 121 (Adj. Sess.), § 1; 1997, No. 50, § 46, eff. June 26, 1997; No. 61, § 210a, eff. June 26, 1997; 1997, No. 158 (Adj. Sess.), §§ 1, 4, 6; 1999, No. 111 (Adj. Sess.), § 1; 2001, No. 9, § 1,2; No. 25, § 1; 2001, No. 74 (Adj. Sess.), § 1; No. 143 (Adj. Sess.), § 7, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 62, eff. March 1, 2004; No. 102 (Adj. Sess.), § 1; 2005, No. 140 (Adj. Sess.), §§ 2, 5, 8, eff. May 10, 2006; 2007, No. 21, § 1, eff. May 10, 2007; 2007, No. 167 (Adj. Sess.), § 1; 2007, No. 210 (Adj. Sess.), § 1; 2009, No. 10, § 1, eff. May 5, 2009.)