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SF 5295

Limited malt liquor and food retailer definition provision and off-sale limited malt liquor licenses authorization provision

2025-2026 Regular Session Introduced by Bill Lieske

Creates an off-sale limited malt liquor license for food retailers, defining limited malt liquor and regulating fees, oversight, and eligibility.

Referred to Commerce and Consumer Protection
#commerceandcommercedepartment #liquor
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WeVote Research Nonpartisan
Bill Summary · SF 5295

Summary of SF 5295 (2025-2026) – Minnesota

SF 5295 expands and creates a framework for limited malt liquor at off-sale venues primarily serving as food retailers, defines what qualifies as a food retailer, and sets licensing, fees, eligibility, and compliance provisions. It also makes conforming changes to several existing liquor statutes.

1) Purpose and Intent

  • Create a distinct category and licensing pathway for off-sale limited malt liquor sold by food retailers.
  • Clarify which entities may sell limited malt liquor and under what conditions.
  • Align definitions and eligibility with the new limited malt liquor framework, while maintaining safeguards on license eligibility, fees, and enforcement.

2) Key Provisions and Changes

  • Definition: Food Retailer (Sec. 2)

    • Defines “Food retailer” as a for-profit, not-for-profit, or cooperative self-service establishment that primarily sells: bread/bakery items; meats/seafood/poultry; produce; dairy; dried/canned/packaged groceries and shelf-stable foods.
    • Includes large supermarkets and smaller corner/convenience stores as food retailers.

  • Definition: Limited Malt Liquor (Sec. 3)

    • Updates terminology from “Low-alcohol malt liquor” to “Limited malt liquor.”
    • Defines limited malt liquor as malt liquor containing not less than 0.5% and not more than 15% alcohol by weight.

  • Off-Sale Limited Malt Liquor License (SF 5295 Sec. 6; new 340A.4031)

    • Local governments (city or county) may issue off-sale licenses to food retailers for limited malt liquor.
    • County licenses apply to unorganized/unincorporated areas with commissioner approval.
    • Exemption: individuals already licensed to sell intoxicating liquor off-sale may sell limited malt liquor off-sale without a separate license.
    • Mandatory reporting to Commissioner within 10 days of license issuance (licensee name, address, trade name, effective/expiration dates, etc.).

  • License Fees (Sec. 7; new 340A.4031)

    • Off-sale limited malt liquor license fee is the fee set by the issuing county/city.
    • Revenue sharing: one-half of the county license fee collected within any town goes to that town board.

  • Fee Increases and Notices (Sec. 8)

    • Any increases in license fees for liquor categories (including limited malt liquor) require notice and a public hearing with at least 30 days’ notice to affected licensees.

  • Refunds (Sec. 9)

    • Pro rata refunds permitted if the business ceases operations for specified reasons, owner dies, license becomes unlawful for reasons other than revocation, or the business ceases to operate under the license.

  • Insurance and Exemptions (Sec. 10)

    • Expands eligibility exemptions for insurance requirements to include off-sale limited malt liquor licensees with sales under $50,000 in the preceding year, in addition to other existing exemptions.

  • Licensing Term (Sec. 12)

    • All retail limited malt liquor licenses are issued for one year, with possible shorter-term licenses to align expiration dates; pro rata fees apply.

  • Other Related Provisions (Sec. 4, 5, 11, 13, 14, 15, 16)

    • Adjusts disqualifiers and eligibility rules to include limited malt liquor in various licensing contexts.
    • Reinforces general age-related and conduct-based prohibitions for liquor sales and consumption.
    • Adds cross-references and clarifications to ensure limited malt liquor is treated consistently with other liquor categories in areas such as posting summons copies (license applications), consumption restrictions, and prohibited sales times (Sec. 15 adds a time-based sales restriction for limited malt liquor).

  • Prohibitions and Age/Conduct Rules (Sec. 14)

    • Maintains standard prohibitions on serving to under-21s and on under-21 consumption, with defined enforcement and defenses.

  • Other Administrative Provisions (Sec. 11, 13, 15, 16)

    • Aligns permit issuance eligibility for certain establishments (e.g., establishments licensed for limited malt liquor) and clarifies on-sale/off-sale permit contexts.
    • Adds tampering/dilution protections specific to limited malt liquor packaging.

3) Affected Parties

  • Food Retailers (supermarkets, grocery stores, corner stores, convenience stores) can hold off-sale licenses for limited malt liquor.
  • Cities and Counties issuing off-sale licenses for limited malt liquor.
  • Licensees under existing liquor categories may benefit from streamlined exemptions or adjusted requirements (e.g., exemptions from certain insurance requirements for small-volume limited malt liquor operations).
  • Municipalities and counties may receive license-fee revenue, with potential shares payable to towns within counties.

4) Procedural and Timeline Elements

  • License issuance is annual, with potential shorter terms to align expirations.
  • Local governments must notify the commissioner within 10 days of issuing a limited malt liquor license.
  • Fee changes require public notice and a hearing at least 30 days prior to the hearing.
  • Refunds may occur on a pro rata basis under specified circumstances (destruction, death, loss of lawfulness, or cessation of operation).

5) Notes on Status

  • Introduced and referred to Commerce and Consumer Protection, with co-sponsor noted.
  • Bill text indicates a comprehensive framework to treat limited malt liquor similarly to other liquor licenses where appropriate, while carving out a definition and licensing mechanism tailored to food retailers.

If you’d like, I can provide a side-by-side comparison with current Minnesota law to highlight all substantive differences introduced by SF 5295.

Compiled from official sources — confirm details with the bill’s official record.

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