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Legislative Issues

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.....Direct Shipment
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Keg Registration

Read the law here:

Keg Registration Law


Keg Registration Tags Available for MLBA Members
(from the July/Aug 2002 issue of PROOF Magazine)

Jim Barber
'02 Vice President Off-Sale

If you are a member of the Minnesota Licensed Beverage Association (MLBA) or the Minnesota Municipal Beverage Association (MMBA), you will be able to purchase a keg registration system designed by MMBA Executive Director Paul Kaspszak. Paul was instrumental in working with MLBA in protecting retailers' interests as the Minnesota legislature adopted a keg registration law. "Clearly the law is workable and takes into account the concerns of retailers," states MLBA President Kathy Huber. "Paul and Jim Farrell (MLBA Executive Director) were able to work with Representatives Steve Dehler, Mary Jo McGuire, Connie Bernardy and public health groups to make sure that a keg registration law would be workable for all retailers," finishes Huber.

Keg Registration is the law effective August 1, 2002. The law requires off-premise license holders that sell kegs to use a label or tag that has a registration number so that police may track individuals that use a keg illegally.The MMBA and MLBA system should protect retailers. This was the case recently in the Twin Cities where an underage college student drank alcohol from a keg that was purchase legally by a customer over 21. The police questioned retailers who were able to provide evidence that no wrongdoing had occurred on their part, and the retailer avoided criminal liability. The MLBA and MMBA system is compliant with all requirements of the law, which includes the ability to remove the label once the keg is returned, to avoid confusion when the keg is cleaned and reused.Revenue from the sale of the MLBA & MMBA system will be used to prevent wine sales in grocery and convenience stores.For more information contact:

  • MLBA at (651) 772-0910 or
  • MMBA at (763) 572-0222.


Read the letter from Alcohol and Gambling Enforcement Director Frank Ball

 

April, 2002

TO: Alcohol Beverage Industry

FROM: Frank Ball, Director

SUBJECT: Keg Registration

The 2002 legislative session enacted into law, effective August 1, 2002, a law providing that all keg beer sold at licensed off-sale retail establishments in Minnesota must bear an identification label or tag with a registration number. The Alcohol and Gambling Enforcement Division was instrumental in developing the language for the keg registration bill. The intent of the bill is to provide state and local law enforcement authorities the ability to track the sale of keg beer, thereby, providing a mechanism to enforce laws applicable to the illegal provision of alcoholic beverages. The language of the bill provides that licensed off-sale retailers, at the time of sale of keg beer, are responsible for affixing a generic identification label or tag to the keg, and the label or tag must contain the following information: The off sale retailer's name, address, telephone number, and a unique keg registration number assigned by the retailer. At the time of sale of keg beer sold to consumers by licensed off-sale retailers, retailers shall record the following four items: 1) the number of the purchasers drivers license; or Minnesota ID card; or military ID; or valid US or foreign passport; 2) the date and time of the purchase; 3) the purchasers signature; and 4) the unique keg number assigned to the keg by the retailer as required by this new law. The retailer is required to keep these keg registration records at the retail licensed premises for a minimum of 90 days. Additionally, licensed off-sale retailers must make these records available for inspection by a licensed peace officer, the commissioner, or an agent of the commissioner. The new law also provides that the identification label or tag affixed to each keg of beer sold at retail shall consist of material made from paper, plastic, metal, or other durable material that is not easily damaged or destroyed. The means of attaching the label or tag to the keg of beer shall be through nylon ties or cording, wire ties, or other metal devices, or another durable means of tying or attaching. Labels may also be attached with some type of non-permanent adhesive. The label or tag must also include a warning that removal or defacement of the label or tag is a criminal offense. Licensed off-sale retailers selling keg beer with the required label or tag are responsible for removing completely and thoroughly the label or tag when the keg is returned to the retailer by the consumer. After removal, the identification tag or label must then be kept on file on the retail licensed premises for the 90 day period. Questions have been raised regarding whether wholesaler suppliers may provide the keg registration materials to the retailer. Our initial response to that questions is no, because the labels, tags and record keeping materials are being interpreted as items of value, and may very well violate cooperative advertising laws, prohibited under M. S. Chapter 340A.308. These questions are being studied by our legal advisors as of this date, and further advisories may be forthcoming. Therefore, retailers should keep in mind that retailers are responsible for the keg registration labels, tags, and record keeping requirements of this new law. Retailers shall not sell keg beer on or after August 1, 2002 that does not bear the mandatory keg registration label or tag, and consumer purchase records and keg registration label or tag information must be maintained on the licensed premises for a minimum of 90 days. A copy of the full text of the keg registration law may be obtained by accessing our web site at www.dps.state.mn.us or by calling

651-215-6209 and requesting a copy. Should you have further technical questions regarding keg registration, please do not hesitate to contact our offices at 651-296-6430.


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