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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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