SF 143

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to liquor; allowing brewpubs to make 
  1.3             off-sales of the brewpub's own product under certain 
  1.4             circumstances; authorizing certain local on-sale 
  1.5             licenses; amending Minnesota Statutes 2002, sections 
  1.6             340A.301, subdivisions 1, 6, 7; 340A.308; 340A.318, 
  1.7             subdivision 3; 340A.404, subdivision 2; 340A.413, 
  1.8             subdivision 4; 304A.510, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 340A.301, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [LICENSES REQUIRED.] No person may directly 
  1.13  or indirectly manufacture or sell at wholesale intoxicating 
  1.14  liquor, or 3.2 percent malt liquor without obtaining an 
  1.15  appropriate license from the commissioner, except where 
  1.16  otherwise provided in this chapter.  A manufacturer's license 
  1.17  includes the right to import.  Except as otherwise provided in 
  1.18  this section, a licensed brewer may sell the brewer's products 
  1.19  at wholesale only if the brewer has been issued a wholesaler's 
  1.20  license.  The commissioner shall issue a wholesaler's license to 
  1.21  a brewer only if (1) the commissioner determines that the brewer 
  1.22  was selling the brewer's own products at wholesale in Minnesota 
  1.23  on January 1, 1991, or (2) the brewer has acquired a 
  1.24  wholesaler's business or assets under subdivision 7a, paragraph 
  1.25  (c) or (d).  A licensed wholesaler of intoxicating malt liquor 
  1.26  may sell 3.2 percent malt liquor at wholesale without an 
  1.27  additional license.  
  2.1      Sec. 2.  Minnesota Statutes 2002, section 340A.301, 
  2.2   subdivision 6, is amended to read: 
  2.3      Subd. 6.  [FEES.] The annual fees for licenses under this 
  2.4   section are as follows: 
  2.5     (a) Manufacturers (except as provided 
  2.6         in clauses (b) and (c))                    $15,000 
  2.7         Duplicates                                 $ 3,000
  2.8     (b) Manufacturers of wines of not more
  2.9         than 25 percent alcohol by volume          $   500
  2.10    (c) Brewers other than those described
  2.11        in clauses (d) and (i)                     $ 2,500
  2.12    (d) Brewers who also hold one or more
  2.13        retail on-sale licenses and who
  2.14        manufacture fewer than 3,500 barrels
  2.15        of malt liquor in a year, at any one
  2.16        licensed premises, the entire
  2.17        production of which is solely 
  2.18        for consumption on tap on the
  2.19        licensed premises or for off-sale
  2.20        from that licensed premises.
  2.21        A brewer licensed
  2.22        under this clause must obtain a separate
  2.23        license for each licensed premises where
  2.24        the brewer brews malt liquor.  A brewer
  2.25        licensed under this clause may not be
  2.26        licensed as an importer under this chapter  $  500
  2.27    (e) Wholesalers (except as provided in
  2.28        clauses (f), (g), and (h))                 $15,000
  2.29        Duplicates                                 $ 3,000
  2.30    (f) Wholesalers of wines of not more
  2.31        than 25 percent alcohol by volume          $ 2,000
  2.32    (g) Wholesalers of intoxicating
  2.33        malt liquor                                $   600
  2.34        Duplicates                                 $    25
  2.35    (h) Wholesalers of 3.2 percent 
  2.36        malt liquor                                $    10
  3.1     (i) Brewers who manufacture fewer than
  3.2         2,000 barrels of malt liquor in a year     $   150
  3.3      If a business licensed under this section is destroyed, or 
  3.4   damaged to the extent that it cannot be carried on, or if it 
  3.5   ceases because of the death or illness of the licensee, the 
  3.6   commissioner may refund the license fee for the balance of the 
  3.7   license period to the licensee or to the licensee's estate. 
  3.8      Sec. 3.  Minnesota Statutes 2002, section 340A.301, 
  3.9   subdivision 7, is amended to read: 
  3.10     Subd. 7.  [INTEREST IN OTHER BUSINESS.] (a) Except as 
  3.11  provided in this subdivision, a holder of a license as a 
  3.12  manufacturer, brewer, importer, or wholesaler may not have any 
  3.13  ownership, in whole or in part, in a business holding a retail 
  3.14  intoxicating liquor or 3.2 percent malt liquor license.  The 
  3.15  commissioner may not issue a license under this section to a 
  3.16  manufacturer, brewer, importer, or wholesaler if a retailer of 
  3.17  intoxicating liquor has a direct or indirect interest in the 
  3.18  manufacturer, brewer, importer, or wholesaler.  A manufacturer 
  3.19  or wholesaler of intoxicating liquor may use or have property 
  3.20  rented for retail intoxicating liquor sales only if the 
  3.21  manufacturer or wholesaler has owned the property continuously 
  3.22  since November 1, 1933.  A retailer of intoxicating liquor may 
  3.23  not use or have property rented for the manufacture or 
  3.24  wholesaling of intoxicating liquor. 
  3.25     (b) A brewer licensed under subdivision 6, clause (d), may 
  3.26  be issued an on-sale intoxicating liquor or 3.2 percent malt 
  3.27  liquor license by a municipality for a restaurant operated in 
  3.28  the place of manufacture.  Malt liquor brewed by such a licensee 
  3.29  may not be removed from the licensed premises unless the malt 
  3.30  liquor is entered in a tasting competition where none of the 
  3.31  malt liquor so removed is sold Notwithstanding section 340A.405, 
  3.32  a brewer who holds an on-sale license issued pursuant to this 
  3.33  paragraph may, with the approval of the commissioner, be issued 
  3.34  a license by a municipality for off-sale of malt liquor produced 
  3.35  and packaged on the licensed premises.  Off-sale of malt liquor 
  3.36  shall be limited to the legal hours for off-sale at exclusive 
  4.1   liquor stores in the jurisdiction in which the brewer is 
  4.2   located, and the malt liquor sold off-sale must be removed from 
  4.3   the premises before the applicable off-sale closing time at 
  4.4   exclusive liquor stores.  The malt liquor shall be packaged in 
  4.5   64-ounce containers commonly known as "growlers."  The 
  4.6   containers shall bear a twist type closure, cork, stopper, or 
  4.7   plug.  At the time of the sale, a paper or plastic adhesive 
  4.8   band, strip, or sleeve shall be applied to the container and 
  4.9   extend over the top of the twist type closure, cork, stopper, or 
  4.10  plug forming a seal that must be broken upon opening of the 
  4.11  container.  The adhesive band, strip, or sleeve shall bear the 
  4.12  name and address of the brewer.  The containers shall be 
  4.13  identified as malt liquor, contain the name of the malt liquor, 
  4.14  bear the name and address of the brewer selling the malt liquor, 
  4.15  and shall be considered intoxicating liquor unless the alcoholic 
  4.16  content is labeled as otherwise in accordance with the 
  4.17  provisions of Minnesota Rules, part 7515.1100.  A brewer's total 
  4.18  retail sales at on- or off-sale under this paragraph may not 
  4.19  exceed 3,500 barrels per year, provided that off-sales may not 
  4.20  total more than 50 percent of the brewer's production or 1,000 
  4.21  barrels, whichever is less.  A brewer licensed under subdivision 
  4.22  6, clause (d), may hold or have an interest in other retail 
  4.23  on-sale licenses, but may not have an ownership interest in 
  4.24  whole or in part, or be an officer, director, agent, or employee 
  4.25  of, any other manufacturer, brewer, importer, or wholesaler, or 
  4.26  be an affiliate thereof whether the affiliation is corporate or 
  4.27  by management, direction, or control.  Notwithstanding this 
  4.28  prohibition, a brewer licensed under subdivision 6, clause (d), 
  4.29  may be an affiliate or subsidiary company of a brewer licensed 
  4.30  in Minnesota or elsewhere if that brewer's only manufacture of 
  4.31  malt liquor is: 
  4.32     (i) manufacture licensed under subdivision 6, clause (d); 
  4.33     (ii) manufacture in another state for consumption 
  4.34  exclusively in a restaurant located in the place of manufacture; 
  4.35  or 
  4.36     (iii) manufacture in another state for consumption 
  5.1   primarily in a restaurant located in or immediately adjacent to 
  5.2   the place of manufacture if the brewer was licensed under 
  5.3   subdivision 6, clause (d), on January 1, 1995. 
  5.4      (c) Except as provided in subdivision 7a, no brewer as 
  5.5   defined in subdivision 7a or importer may have any interest, in 
  5.6   whole or in part, directly or indirectly, in the license, 
  5.7   business, assets, or corporate stock of a licensed malt liquor 
  5.8   wholesaler. 
  5.9      Sec. 4.  Minnesota Statutes 2002, section 340A.308, is 
  5.10  amended to read: 
  5.11     340A.308 [PROHIBITED TRANSACTIONS.] 
  5.12     (a) Except as otherwise provided in section 340A.301, no 
  5.13  brewer or malt liquor wholesaler may directly or indirectly, or 
  5.14  through an affiliate or subsidiary company, or through an 
  5.15  officer, director, stockholder, or partner: 
  5.16     (1) give, or lend money, credit, or other thing of value to 
  5.17  a retailer; 
  5.18     (2) give, lend, lease, or sell furnishing or equipment to a 
  5.19  retailer; 
  5.20     (3) have an interest in a retail license; or 
  5.21     (4) be bound for the repayment of a loan to a retailer. 
  5.22     (b) No retailer may solicit any equipment, fixture, 
  5.23  supplies, money, or other thing of value from a brewer or malt 
  5.24  liquor wholesaler if furnishing of these items by the brewer or 
  5.25  wholesaler is prohibited by law and the retailer knew or had 
  5.26  reason to know that the furnishing is prohibited by law. 
  5.27     (c) This section does not prohibit a manufacturer or 
  5.28  wholesaler from: 
  5.29     (1) furnishing, lending, or renting to a retailer outside 
  5.30  signs, of a cost of up to $400 excluding installation and repair 
  5.31  costs; 
  5.32     (2) furnishing, lending, or renting to a retailer inside 
  5.33  signs and other promotional material, of a cost of up to $300 in 
  5.34  a year; 
  5.35     (3) furnishing to or maintaining for a retailer equipment 
  5.36  for dispensing malt liquor, including tap trailers, cold plates 
  6.1   and other dispensing equipment, of a cost of up to $100 per tap 
  6.2   in a year; 
  6.3      (4) using or renting property owned continually since 
  6.4   November 1, 1933, for the purpose of selling intoxicating or 3.2 
  6.5   percent malt liquor at retail; 
  6.6      (5) extending customary commercial credit to a retailer in 
  6.7   connection with a sale of nonalcoholic beverages only, or 
  6.8   engaging in cooperative advertising agreements with a retailer 
  6.9   in connection with the sale of nonalcoholic beverages only; or 
  6.10     (6) in the case of a wholesaler, with the prior written 
  6.11  consent of the commissioner, selling beer on consignment to a 
  6.12  holder of a temporary license under section 340A.403, 
  6.13  subdivision 2, or 340A.404, subdivision 10. 
  6.14     Sec. 5.  Minnesota Statutes 2002, section 340A.318, 
  6.15  subdivision 3, is amended to read: 
  6.16     Subd. 3.  [POSTING; NOTICE.] Verified lists or statements 
  6.17  required by subdivision 2 shall be posted by the commissioner in 
  6.18  offices of the department in places available for public 
  6.19  inspection not later than the day Monday following receipt.  
  6.20  Documents posted shall constitute notice to every distiller, 
  6.21  manufacturer, or wholesaler of the information posted.  Actual 
  6.22  notice, however received, also constitutes notice. 
  6.23     Sec. 6.  Minnesota Statutes 2002, section 340A.404, 
  6.24  subdivision 2, is amended to read: 
  6.25     Subd. 2.  [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The 
  6.26  city of Minneapolis may issue an on-sale intoxicating liquor 
  6.27  license to the Guthrie Theater, the Cricket Theatre, the Orpheum 
  6.28  Theatre, and the State Theatre, and the Historic Pantages 
  6.29  Theatre, notwithstanding the limitations of law, or local 
  6.30  ordinance, or charter provision relating to zoning or school or 
  6.31  church distances.  The licenses authorize sales on all days of 
  6.32  the week to holders of tickets for performances presented by the 
  6.33  theaters and to members of the nonprofit corporations holding 
  6.34  the licenses and to their guests. 
  6.35     (b) The city of Minneapolis may issue an intoxicating 
  6.36  liquor license to 510 Groveland Associates, a Minnesota 
  7.1   cooperative, for use by a restaurant on the premises owned by 
  7.2   510 Groveland Associates, notwithstanding limitations of law, or 
  7.3   local ordinance, or charter provision. 
  7.4      (c) The city of Minneapolis may issue an on-sale 
  7.5   intoxicating liquor license to Zuhrah Shrine Temple for use on 
  7.6   the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue 
  7.7   South in Minneapolis, and to the American Swedish Institute for 
  7.8   use on the premises owned by the American Swedish Institute at 
  7.9   2600 Park Avenue South, notwithstanding limitations of law, or 
  7.10  local ordinances, or charter provision relating to zoning or 
  7.11  school or church distances. 
  7.12     (d) The city of Minneapolis may issue an on-sale 
  7.13  intoxicating liquor license to the American Association of 
  7.14  University Women, Minneapolis branch, for use on the premises 
  7.15  owned by the American Association of University Women, 
  7.16  Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, 
  7.17  notwithstanding limitations of law, or local ordinances, or 
  7.18  charter provisions relating to zoning or school or church 
  7.19  distances. 
  7.20     (e) The city of Minneapolis may issue an on-sale wine 
  7.21  license and an on-sale 3.2 percent malt liquor license to a 
  7.22  restaurant located at 5000 Penn Avenue South, and an on-sale 
  7.23  wine license and an on-sale malt liquor license to a restaurant 
  7.24  located at 1931 Nicollet Avenue South, notwithstanding any law 
  7.25  or local ordinance or charter provision. 
  7.26     (f) The city of Minneapolis may issue an on-sale wine 
  7.27  license and an on-sale malt liquor license to the Brave New 
  7.28  Workshop Theatre located at 3001 Hennepin Avenue South, the 
  7.29  Theatre de la Jeune Lune, the Illusion Theatre located at 528 
  7.30  Hennepin Avenue South, the Hollywood Theatre located at 2815 
  7.31  Johnson Street Northeast, the Loring Playhouse located at 1633 
  7.32  Hennepin Avenue South, and the Jungle Theater located at 2951 
  7.33  Lyndale Avenue South, Brave New Institute located at 2605 
  7.34  Hennepin Avenue South, the Guthrie Lab located at 700 North 
  7.35  First Street, and the Southern Theatre located at 1420 
  7.36  Washington Avenue South, notwithstanding any law or local 
  8.1   ordinance or charter provision.  The license authorizes sales on 
  8.2   all days of the week. 
  8.3      (g) The city of Minneapolis may issue an on-sale 
  8.4   intoxicating liquor license to University Gateway Corporation, a 
  8.5   Minnesota nonprofit corporation, for use by a restaurant or 
  8.6   catering operator at the building owned and operated by the 
  8.7   University Gateway Corporation on the University of Minnesota 
  8.8   campus, notwithstanding limitations of law, or local ordinance 
  8.9   or charter provision.  The license authorizes sales on all days 
  8.10  of the week. 
  8.11     Sec. 7.  Minnesota Statutes 2002, section 340A.413, 
  8.12  subdivision 4, is amended to read: 
  8.13     Subd. 4.  [EXCLUSIONS FROM LICENSE LIMITS.] On-sale 
  8.14  intoxicating liquor licenses may be issued to the following 
  8.15  entities by a city, in addition to the number authorized by this 
  8.16  section: 
  8.17     (1) clubs, or congressionally chartered veterans 
  8.18  organizations; 
  8.19     (2) restaurants located at a racetrack licensed under 
  8.20  chapter 240; 
  8.21     (3) establishments that are issued licenses to sell wine 
  8.22  under section 340A.404, subdivision 5; and 
  8.23     (4) theaters that are issued licenses under section 
  8.24  340A.404, subdivision 2; 
  8.25     (5) hotels; and 
  8.26     (6) bowling centers. 
  8.27     Sec. 8.  Minnesota Statutes 2002, section 340A.510, 
  8.28  subdivision 1, is amended to read: 
  8.29     Subdivision 1.  [SAMPLES AUTHORIZED.] Off-sale licenses 
  8.30  Notwithstanding any other law, on- or off-sale retail licensees 
  8.31  and municipal liquor stores may provide, or permit a licensed 
  8.32  manufacturer or a wholesaler or its agents to provide on the 
  8.33  premises of the retail licensee or municipal liquor store, 
  8.34  samples of malt liquor, wine, liqueurs, cordials, and distilled 
  8.35  spirits intoxicating liquor, which the retail licensee or 
  8.36  municipal liquor store currently has in stock and is offering 
  9.1   for sale to the general public without obtaining an additional 
  9.2   license, provided the wine, liqueur, cordial, and distilled 
  9.3   spirits and caps, tee shirts, or other promotional items.  The 
  9.4   samples are must be dispensed at no charge and consumed on the 
  9.5   licensed premises during the permitted hours of off-sale sale in 
  9.6   a quantity less than 100 milliliters of malt liquor per variety 
  9.7   of malt liquor per customer, 50 milliliters of wine per variety 
  9.8   of wine per customer, 25 milliliters of per variety of liqueur 
  9.9   or cordial per customer, and 15 milliliters of distilled spirits 
  9.10  per variety per customer. 
  9.11     Sec. 9.  [CITY OF BLAINE; ON-SALE LICENSES.] 
  9.12     The city of Blaine may issue 15 on-sale intoxicating liquor 
  9.13  licenses in addition to the number authorized by law.  All 
  9.14  provisions of Minnesota Statutes, chapter 340A, not inconsistent 
  9.15  with this section, apply to the licenses authorized by this 
  9.16  section. 
  9.17     Sec. 10.  [CITY OF DULUTH; ON-SALE LICENSE.] 
  9.18     The city of Duluth may issue one on-sale intoxicating 
  9.19  liquor license in addition to the number authorized by law for 
  9.20  the St. Louis County Heritage and Arts Center, commonly known as 
  9.21  the Duluth Depot.  All provisions of Minnesota Statutes, chapter 
  9.22  340A, not inconsistent with this section, apply to the license 
  9.23  authorized by this section. 
  9.24     Sec. 11.  [CITY OF THIEF RIVER FALLS; LIQUOR LICENSES.] 
  9.25     The city of Thief River Falls may issue two on-sale 
  9.26  intoxicating liquor licenses in addition to the number 
  9.27  authorized by law.  All provisions of Minnesota Statutes, 
  9.28  chapter 340A, not inconsistent with this section apply to the 
  9.29  licenses authorized by this section. 
  9.30     Sec. 12.  [CITY OF HASTINGS; ON-SALE LICENSES.] 
  9.31     The city of Hastings may issue three on-sale intoxicating 
  9.32  liquor licenses in addition to the number authorized by law.  
  9.33  All provisions of Minnesota Statutes, chapter 340A, not 
  9.34  inconsistent with this section, apply to the licenses authorized 
  9.35  by this section. 
  9.36     Sec. 13.  [CITY OF MAPLE GROVE; LIQUOR LICENSES.] 
 10.1      The city of Maple Grove may issue 12 on-sale intoxicating 
 10.2   liquor licenses in addition to the number authorized by law.  
 10.3   All provisions of Minnesota Statutes, chapter 340A, not 
 10.4   inconsistent with this section, apply to the licenses authorized 
 10.5   under this section. 
 10.6      Sec. 14.  [CITY OF SARTELL; ON-SALE LICENSES.] 
 10.7      The city of Sartell may issue five on-sale intoxicating 
 10.8   liquor licenses in addition to the number authorized by law.  
 10.9   All provisions of Minnesota Statutes, chapter 340A, not 
 10.10  inconsistent with this section, apply to the licenses authorized 
 10.11  by this section. 
 10.12     Sec. 15.  [CITY OF ST. MICHAEL; LIQUOR LICENSES.] 
 10.13     The city of St. Michael may issue five on-sale liquor 
 10.14  licenses in addition to the number authorized by law.  All 
 10.15  provisions of Minnesota Statutes, chapter 340A, not inconsistent 
 10.16  with this section, apply to the licenses authorized under this 
 10.17  section. 
 10.18     Sec. 16.  [CITY OF WOODBURY; ON-SALE LICENSES.] 
 10.19     The city of Woodbury may issue 12 on-sale intoxicating 
 10.20  liquor licenses in addition to the number authorized by law.  
 10.21  All provisions of Minnesota Statutes, chapter 340A, not 
 10.22  inconsistent with this section, apply to the licenses authorized 
 10.23  by this section. 
 10.24     Sec. 17.  [CITY OF WACONIA; LIQUOR LICENSES.] 
 10.25     The city of Waconia may issue three on-sale intoxicating 
 10.26  liquor licenses in addition to the number authorized by law.  
 10.27  All provisions of Minnesota Statutes, chapter 340A, not 
 10.28  inconsistent with this section, apply to the licenses authorized 
 10.29  under this section. 
 10.30     Sec. 18.  [MINNESOTA CENTENNIAL SHOWBOAT.] 
 10.31     The city of St. Paul may issue an on-sale intoxicating 
 10.32  liquor license for the Minnesota Centennial Showboat, moored at 
 10.33  110 Yacht Club Road, Harriet Island, notwithstanding any law, 
 10.34  local ordinance, or charter provision.  The license must be 
 10.35  issued to a holder of a river tour boat license under Minnesota 
 10.36  Statutes, section 340A.404, subdivision 8.  The license 
 11.1   authorizes sales on all days of the week. 
 11.2      Sec. 19.  [ELKO SPEEDWAY; ON-SALE LICENSE.] 
 11.3      Notwithstanding Minnesota Statutes, section 340A.404, 
 11.4   subdivision 1, the city of Elko may issue an on-sale 
 11.5   intoxicating liquor license to the Elko Speedway in addition to 
 11.6   the number authorized by law.  The license may authorize sales 
 11.7   only to persons attending racing events at the speedway.  All 
 11.8   provisions of Minnesota Statutes, chapter 340A, not inconsistent 
 11.9   with this provision, apply to the license authorized under this 
 11.10  section.  The license may be issued for a space that is not 
 11.11  compact and contiguous, provided that the licensed premises may 
 11.12  include only the space within the fenced grandstand area as 
 11.13  described in the approved license application. 
 11.14     Sec. 20.  [WINE LICENSES; STATE FAIR.] 
 11.15     (a) Notwithstanding Minnesota Statutes, sections 37.21 and 
 11.16  340A.412, subdivision 4, paragraph (a), clause (3), the city of 
 11.17  St. Paul may issue a license to the holder of a state fair 
 11.18  concessions contract with the state agricultural society which 
 11.19  authorizes the licensee to sell Minnesota-produced wine by the 
 11.20  glass at the state fair in connection with the sale of food by 
 11.21  the concessionaire.  All provisions of Minnesota Statutes, 
 11.22  chapter 340A, not inconsistent herewith, apply to licenses 
 11.23  issued under this section. 
 11.24     (b) For purposes of this section "Minnesota-produced wine" 
 11.25  means wine produced by a farm winery licensed under Minnesota 
 11.26  Statutes, section 340A.315, and made from at least 75 percent 
 11.27  Minnesota grown grapes, grape juice, other juices, and honey. 
 11.28     Sec. 21.  [EFFECTIVE DATE.] 
 11.29     This act is effective the day following final enactment.