June 27, 2011

To:  The Alcoholic Beverage Industry, Local License Authorities, Clients, Customers and Stakeholders:

The recent budget impasse at the state capital in Minnesota has resulted in the potential shutdown of many state agencies due to a lack of a budget as of July 1, 2011. 

The shutdown will likely include the Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division (A&GED) as a non critical service.

Shutting down A&GED will have an adverse effect on the alcoholic beverage industry related to the issue, certification and renewal of alcoholic beverage licenses and permits in Minnesota. 

We have identified the following license and permit types as entities that may no longer be able to lawfully conduct business in Minnesota under the provisions of Minnesota Statute Chapter 340A.301, 302, 3055, 311, 315, 317, 401, 407 and Minnesota Rules 7515.0210 should their license or permit to conduct business expire during the government shutdown.

* All Alcoholic Beverage Licenses issued by A&GED including Manufacturer's, Importers, Wholesale Distributors, Warehouse Permit Holders, Ethyl Alcohol Permit Holders, Brokers, Consumption and Display Permits, Alcoholic Beverage Catering Permits, 2 a.m. Licenses, Common Carrier Licenses Sales Person ID Cards and Representative ID Cards.

* Retail ID Cards (Buyer's Cards) expiring during this time period will also not be able to be renewed.  Delivery to an expired account by a wholesale distributor would be a violation.

* Brand Registrations for alcoholic beverages manufactured in and imported into Minnesota for sale will not be issued or renewed.

* Many retail licenses both original issue and renewal require approval from A&GED to operate. These licenses will be affected.  Examples are Wine Licenses, Off-Sale Liquor Licenses, Temporary Intoxicating Liquor Licenses, Bed & Breakfast Licenses; County issued On Sale and Off-Sale Licenses and Club Liquor Licenses. 

* An expired permit or license would not be considered valid which may also have an impact on liquor liability insurance as required under the provisions of Minnesota Statute Chapter 340A.409. 

Our agency will make every effort to process as many licenses and permit applications as we can prior to our agency being closed and our employees being laid off. 

We hope a state budget will be enacted to avoid this disruption to state service and the businesses we serve.

 Signed,

 James Arlt

 Interim Director

 Minnesota Department of Public Safety

 Alcohol & Gambling Enforcement Division

Click Here to View Original Document

Also, please read the following from the Minnesota Department of Revenue

Businesses must resolve all delinquent tax debts with secured funds by June 28, 2011 to be removed from the Liquor Posting tax Delinquency list prior to shutdown. 

After June 30, 2011 the department will be unable to remove businesses from the Liquor Posting Tax Delinquency list until the legislature appropriates funds for continuing operations of the agency.

Click Here to View Document from the Minnesota Department of Revenue Concerning Liquor Posting Tax Delinquency List