Minnesota Legislature
SF 2696
2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to liquor; providing for conformity in 1.3 license fees and production levels for brewpubs and 1.4 small brewers; authorizing issuance of temporary 1.5 licenses to small brewers; authorizing off-sale of 1.6 growlers by small brewers; clarifying restrictions on 1.7 location of retail licenses in proximity to certain 1.8 institutions; providing for uniform off-sale hours 1.9 statewide; regulating Sunday on-sales; modifying 1.10 sampling provisions; providing that the on-sale 1.11 license for Elko Speedway authorizes sales on all days 1.12 of the week; changing the issuer of a certain license 1.13 at the state fair; authorizing the city of Duluth to 1.14 issue a liquor license for Wade Municipal Stadium; 1.15 authorizing the city of St. Paul to issue a liquor 1.16 license for special events at the State Capitol; 1.17 amending Minnesota Statutes 2002, sections 340A.404, 1.18 subdivision 10; 340A.412, subdivision 4; 340A.504, 1.19 subdivision 4; Minnesota Statutes 2003 Supplement, 1.20 sections 340A.301, subdivisions 6, 7; 340A.504, 1.21 subdivisions 1, 3; 340A.510, subdivision 2; Laws 2003, 1.22 chapter 126, section 28; Laws 2003, chapter 126, 1.23 section 29; proposing coding for new law in Minnesota 1.24 Statutes, chapter 340A. 1.25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.26 Section 1. Minnesota Statutes 2003 Supplement, section 1.27 340A.301, subdivision 6, is amended to read: 1.28 Subd. 6. [FEES.] The annual fees for licenses under this 1.29 section are as follows: 1.30 (a) Manufacturers (except as provided 1.31 in clauses (b) and (c)) $15,000 1.32 Duplicates $ 3,000 1.33 (b) Manufacturers of wines of not more 1.34 than 25 percent alcohol by volume $ 500 1.35 (c) Brewersother than those described2.1in clauses (d) and (i)who 2.2 manufacture more than 3,500 barrels 2.3 of malt liquor in a year $ 2,500 2.4 (d) Brewers who also hold one or more 2.5 retail on-sale licenses and who 2.6 manufacture fewer than 3,500 barrels 2.7 of malt liquor in a year, at any one 2.8 licensed premises, using only wort produced 2.9 in Minnesota, the entire 2.10 production of which is solely 2.11 for consumption on tap on the 2.12 licensed premises or for off-sale 2.13 from that licensed premises. 2.14 A brewer licensed 2.15 under this clause must obtain a separate 2.16 license for each licensed premises where 2.17 the brewer brews malt liquor. A brewer 2.18 licensed under this clause may not be 2.19 licensed as an importer under this chapter $ 500 2.20 (e) Wholesalers (except as provided in 2.21 clauses (f), (g), and (h)) $15,000 2.22 Duplicates $ 3,000 2.23 (f) Wholesalers of wines of not more 2.24 than 25 percent alcohol by volume $ 2,000 2.25 (g) Wholesalers of intoxicating 2.26 malt liquor $ 600 2.27 Duplicates $ 25 2.28 (h) Wholesalers of 3.2 percent 2.29 malt liquor $ 10 2.30 (i) Brewers who manufacture fewer than 2.31 2,000 barrels of malt liquor 2.32 in a year $ 150 2.33 (j) Brewers who manufacture 2,000 to 2.34 3,500 barrels of malt liquor in a 2.35 a year $ 500 2.36 If a business licensed under this section is destroyed, or 3.1 damaged to the extent that it cannot be carried on, or if it 3.2 ceases because of the death or illness of the licensee, the 3.3 commissioner may refund the license fee for the balance of the 3.4 license period to the licensee or to the licensee's estate. 3.5 Sec. 2. Minnesota Statutes 2003 Supplement, section 3.6 340A.301, subdivision 7, is amended to read: 3.7 Subd. 7. [INTEREST IN OTHER BUSINESS.] (a) Except as 3.8 provided in this subdivision, a holder of a license as a 3.9 manufacturer, brewer, importer, or wholesaler may not have any 3.10 ownership, in whole or in part, in a business holding a retail 3.11 intoxicating liquor or 3.2 percent malt liquor license. The 3.12 commissioner may not issue a license under this section to a 3.13 manufacturer, brewer, importer, or wholesaler if a retailer of 3.14 intoxicating liquor has a direct or indirect interest in the 3.15 manufacturer, brewer, importer, or wholesaler. A manufacturer 3.16 or wholesaler of intoxicating liquor may use or have property 3.17 rented for retail intoxicating liquor sales only if the 3.18 manufacturer or wholesaler has owned the property continuously 3.19 since November 1, 1933. A retailer of intoxicating liquor may 3.20 not use or have property rented for the manufacture or 3.21 wholesaling of intoxicating liquor. 3.22 (b) A brewer licensed under subdivision 6, clause (d), may 3.23 be issued an on-sale intoxicating liquor or 3.2 percent malt 3.24 liquor license by a municipality for a restaurant operated in 3.25 the place of manufacture. Notwithstanding section 340A.405, a 3.26 brewer who holds an on-sale license issued pursuant to this 3.27 paragraph or a brewer who manufactures fewer than 3,500 barrels 3.28 of malt liquor in a year may, with the approval of the 3.29 commissioner, be issued a license by a municipality for off-sale 3.30 of malt liquor produced and packaged on the licensed premises. 3.31 Off-sale of malt liquor shall be limited to the legal hours for 3.32 off-sale at exclusive liquor stores in the jurisdiction in which 3.33 the brewer is located, and the malt liquor sold off-sale must be 3.34 removed from the premises before the applicable off-sale closing 3.35 time at exclusive liquor stores. The malt liquor shall be 3.36 packaged in 64-ounce containers commonly known as "growlers." 4.1 The containers shall bear a twist-type closure, cork, stopper, 4.2 or plug. At the time of the sale, a paper or plastic adhesive 4.3 band, strip, or sleeve shall be applied to the container and 4.4 extend over the top of the twist-type closure, cork, stopper, or 4.5 plug forming a seal that must be broken upon opening of the 4.6 container. The adhesive band, strip, or sleeve shall bear the 4.7 name and address of the brewer. The containers shall be 4.8 identified as malt liquor, contain the name of the malt liquor, 4.9 bear the name and address of the brewer selling the malt liquor, 4.10 and shall be considered intoxicating liquor unless the alcoholic 4.11 content is labeled as otherwise in accordance with the 4.12 provisions of Minnesota Rules, part 7515.1100. A brewer's total 4.13 retail sales at on- or off-sale under this paragraph may not 4.14 exceed 3,500 barrels per year, provided that off-sales may not 4.15 total more than 50 percent of the brewer's production or 500 4.16 barrels, whichever is less. A brewer licensed under subdivision 4.17 6, clause (d), may hold or have an interest in other retail 4.18 on-sale licenses, but may not have an ownership interest in 4.19 whole or in part, or be an officer, director, agent, or employee 4.20 of, any other manufacturer, brewer, importer, or wholesaler, or 4.21 be an affiliate thereof whether the affiliation is corporate or 4.22 by management, direction, or control. Notwithstanding this 4.23 prohibition, a brewer licensed under subdivision 6, clause (d), 4.24 may be an affiliate or subsidiary company of a brewer licensed 4.25 in Minnesota or elsewhere if that brewer's only manufacture of 4.26 malt liquor is: 4.27 (i) manufacture licensed under subdivision 6, clause (d); 4.28 (ii) manufacture in another state for consumption 4.29 exclusively in a restaurant located in the place of manufacture; 4.30 or 4.31 (iii) manufacture in another state for consumption 4.32 primarily in a restaurant located in or immediately adjacent to 4.33 the place of manufacture if the brewer was licensed under 4.34 subdivision 6, clause (d), on January 1, 1995. 4.35 (c) Except as provided in subdivision 7a, no brewer as 4.36 defined in subdivision 7a or importer may have any interest, in 5.1 whole or in part, directly or indirectly, in the license, 5.2 business, assets, or corporate stock of a licensed malt liquor 5.3 wholesaler. 5.4 Sec. 3. Minnesota Statutes 2002, section 340A.404, 5.5 subdivision 10, is amended to read: 5.6 Subd. 10. [TEMPORARY ON-SALE LICENSES.] (a) The governing 5.7 body of a municipality may issue to (1) a club or charitable, 5.8 religious, or other nonprofit organization in existence for at 5.9 least three years, (2) a political committee registered under 5.10 section 10A.14, or (3) a state university, a temporary license 5.11 for the on-sale of intoxicating liquor in connection with a 5.12 social event within the municipality sponsored by the licensee. 5.13 The license may authorize the on-sale of intoxicating liquor for 5.14 not more than four consecutive days, and may authorize on-sales 5.15 on premises other than premises the licensee owns or permanently 5.16 occupies. The license may provide that the licensee may 5.17 contract for intoxicating liquor catering services with the 5.18 holder of a full-year on-sale intoxicating liquor license issued 5.19 by any municipality. The licenses are subject to the terms, 5.20 including a license fee, imposed by the issuing municipality. 5.21 Licenses issued under this subdivision are subject to all laws 5.22 and ordinances governing the sale of intoxicating liquor except 5.23 sections 340A.409 and 340A.504, subdivision 3, paragraph (d), 5.24 and those laws and ordinances which by their nature are not 5.25 applicable. Licenses under this subdivision are not valid 5.26 unless first approved by the commissioner of public safety. 5.27 (b) A county under this section may issue a temporary 5.28 license only to a premises located in the unincorporated or 5.29 unorganized territory of the county. 5.30 (c) The governing body of a municipality may issue to a 5.31 brewer who manufactures fewer than 3,500 barrels of malt liquor 5.32 in a year a temporary license for the on-sale of intoxicating 5.33 liquor in connection with a social event within the municipality 5.34 sponsored by the brewer. The terms and conditions specified for 5.35 temporary licenses under paragraph (a) shall apply to a license 5.36 issued under this paragraph, except that the requirements of 6.1 section 340A.409 shall apply to such license. 6.2 Sec. 4. Minnesota Statutes 2002, section 340A.412, 6.3 subdivision 4, is amended to read: 6.4 Subd. 4. [LICENSES PROHIBITED IN CERTAIN AREAS.] (a) No 6.5 license to sell intoxicating liquor may be issued within the 6.6 following areas: 6.7 (1) where restricted against commercial use through zoning 6.8 ordinances and other proceedings or legal processes regularly 6.9 had for that purpose, except licenses may be issued to 6.10 restaurants in areas which were restricted against commercial 6.11 uses after the establishment of the restaurant; 6.12 (2) within the capitol or on the capitol grounds, except as 6.13 provided under Laws 1983, chapter 259, section 9, or Laws 1999, 6.14 chapter 202, section 13; 6.15 (3) on the state fairgrounds or at any place in a city of 6.16 the first class within one-half mile of the fairgrounds, except 6.17 as otherwise provided by charter; 6.18 (4) on the campus of the College of Agriculture of the 6.19 University of Minnesota or at any place in a city of the first 6.20 class within one-half mile of the campus, provided that a city 6.21 may issue one on-sale wine license in this area that is not 6.22 included in the area described in clause (3), except as provided 6.23 by charter; 6.24 (5) within 1,000 feet of a state hospital, training school, 6.25 reformatory, prison, or other institution under the supervision 6.26 or control, in whole or in part, of the commissioner of human 6.27 services or the commissioner of corrections, provided that this 6.28 restriction does not apply to a county jail; 6.29 (6) in a town or municipality in which a majority of votes 6.30 at the last election at which the question of license was voted 6.31 upon were not in favor of license under section 340A.416, or 6.32 within one-half mile of any such town or municipality, except 6.33 that intoxicating liquor manufactured within this radius may be 6.34 sold to be consumed outside it; 6.35 (7) at any place on the east side of the Mississippi River 6.36 within one-tenth of a mile of the main building of the 7.1 University of Minnesota unless (i) the licensed establishment is 7.2 on property owned or operated by a nonprofit corporation 7.3 organized prior to January 1, 1940, for and by former students 7.4 of the University of Minnesota, or (ii) the licensed premises is 7.5 Northrop Auditorium; 7.6 (8) within 1,500 feet of a state university, except that: 7.7 (i) the minimum distance in the case of Winona and 7.8 Southwest State University is 1,200 feet, measured by a direct 7.9 line from the nearest corner of the administration building to 7.10 the main entrance of the licensed establishment; 7.11 (ii) within 1,500 feet of St. Cloud State University one 7.12 on-sale wine and two off-sale intoxicating liquor licenses may 7.13 be issued, measured by a direct line from the nearest corner of 7.14 the administration building to the main entrance of the licensed 7.15 establishment; 7.16 (iii) at Mankato State University the distance is measured 7.17 from the front door of the student union of the Highland campus; 7.18 (iv) a temporary license under section 340A.404, 7.19 subdivision 10, may be issued to a location on the grounds of a 7.20 state university for an event sponsored or approved by the state 7.21 university; and 7.22 (v) this restriction does not apply to the area surrounding 7.23 the premises leased by Metropolitan State University at 730 7.24 Hennepin Avenue South in Minneapolis; and 7.25 (9) within 1,500 feet of any public school that is not 7.26 within a city. 7.27 (b) The restrictions of this subdivision do not apply to a 7.28 manufacturer or wholesaler of intoxicating liquor or to a 7.29 drugstore or to a person who had a license originally issued 7.30 lawfully prior to July 1, 1967. 7.31 Sec. 5. Minnesota Statutes 2003 Supplement, section 7.32 340A.504, subdivision 1, is amended to read: 7.33 Subdivision 1. [3.2 PERCENT MALT LIQUOR.] No sale of 3.2 7.34 percent malt liquor may be made between 2:00 a.m. and 8:00 a.m. 7.35 on the days of Monday through Saturday, nor between 2:00 a.m. 7.36 and12:00 noon10:00 a.m. on Sunday, provided that an8.1establishment located on land owned by the Metropolitan Sports8.2Commission, or the sports arena for which one or more licenses8.3have been issued under section 340A.404, subdivision 2,8.4paragraph (c), may sell 3.2 percent malt liquor between 10:008.5a.m. and 12:00 noon on a Sunday on which a sports or other event8.6is scheduled to begin at that location on or before 1:00 p.m. of8.7that day. 8.8 Sec. 6. Minnesota Statutes 2003 Supplement, section 8.9 340A.504, subdivision 3, is amended to read: 8.10 Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 8.11 A restaurant, club, bowling center, or hotel with a seating 8.12 capacity for at least 30 persons and which holds an on-sale 8.13 intoxicating liquor license may sell intoxicating liquor for 8.14 consumption on the premises in conjunction with the sale of food 8.15 between the hours of12:00 noon10:00 a.m. on Sundays and 2:00 8.16 a.m. on Mondays. 8.17 (b)The governing body of a municipality may after one8.18public hearing by ordinance permit a restaurant, hotel, bowling8.19center, or club to sell alcoholic beverages for consumption on8.20the premises in conjunction with the sale of food between the8.21hours of 10:00 a.m. on Sundays and 2:00 a.m. on Mondays,8.22provided that the licensee is in conformance with the Minnesota8.23Clean Air Act.8.24(c)An establishment serving intoxicating liquor on Sundays 8.25 must obtain a Sunday license. The license must be issued by the 8.26 governing body of the municipality for a period of one year, and 8.27 the fee for the license may not exceed $200. 8.28(d)(c) A city may issue a Sunday intoxicating liquor 8.29 license only if authorized to do so by the voters of the city 8.30 voting on the question at a general or special election. A 8.31 county may issue a Sunday intoxicating liquor license in a town 8.32 only if authorized to do so by the voters of the town as 8.33 provided in paragraph(e)(d). A county may issue a Sunday 8.34 intoxicating liquor license in unorganized territory only if 8.35 authorized to do so by the voters of the election precinct that 8.36 contains the licensed premises, voting on the question at a 9.1 general or special election. 9.2(e)(d) An election conducted in a town on the question of 9.3 the issuance by the county of Sunday sales licenses to 9.4 establishments located in the town must be held on the day of 9.5 the annual election of town officers. 9.6(f)(e) Voter approval is not required for licenses issued 9.7 by the Metropolitan Airports Commission or common carrier 9.8 licenses issued by the commissioner. Common carriers serving 9.9 intoxicating liquor on Sunday must obtain a Sunday license from 9.10 the commissioner at an annual fee of $50, plus $20 for each 9.11 duplicate. 9.12 Sec. 7. Minnesota Statutes 2002, section 340A.504, 9.13 subdivision 4, is amended to read: 9.14 Subd. 4. [INTOXICATING LIQUOR; OFF-SALE.] No sale of 9.15 intoxicating liquor may be made by an off-sale licensee: 9.16 (1) on Sundays; 9.17 (2) before 8:00 a.m. or after 10:00 p.m. on Monday through 9.18 Saturday; 9.19 (3)after 10:00 p.m. on Monday through Saturday at an9.20establishment located in a city other than a city of the first9.21class or within a city located within 15 miles of a city of the9.22first class in the same county;9.23(4) after 8:00 p.m. on Monday through Thursday and after9.2410:00 p.m. on Friday and Saturday at an establishment located in9.25a city of the first class or within a city located within 159.26miles of a city of the first class in the same county, provided9.27that an establishment may sell intoxicating liquor until 10:009.28p.m. on December 31 and July 3, and on the day preceding9.29Thanksgiving day, unless otherwise prohibited under clause (1);9.30(5)on Thanksgiving Day; 9.31(6)(4) on Christmas Day, December 25; or 9.32(7)(5) after 8:00 p.m. on Christmas Eve, December 24. 9.33 Sec. 8. Minnesota Statutes 2003 Supplement, section 9.34 340A.510, subdivision 2, is amended to read: 9.35 Subd. 2. [MALT LIQUOR SAMPLES AUTHORIZED.] (a) 9.36 Notwithstanding section 340A.308, a brewer may purchase from or 10.1 furnish at no cost to a licensed retailer malt liquor the brewer 10.2 manufactures if: 10.3 (1) the malt liquor is dispensed by the retailer only for 10.4 samples in a quantity of less than 100 milliliters of malt 10.5 liquor per variety per customer; 10.6 (2) where the brewer furnishes the malt liquor, the 10.7 retailer makes available for return to the brewer any unused 10.8 malt liquor and empty containers; 10.9 (3) the samples are dispensed by an employee of the 10.10 retailer or brewer or by a sampling service retained by the 10.11 retailer or brewer and not affiliated directly or indirectly 10.12 with a malt liquor wholesaler; 10.13 (4) not more than three cases of malt liquor are purchased 10.14 from or furnished to the retailer by the brewer for each 10.15 sampling; 10.16 (5) each sampling continues for not more than eight hours; 10.17 (6) the brewer has furnished malt liquor for not more than 10.18 five samplings for any retailer in any calendar year; 10.19 (7) where the brewer furnishes the malt liquor, the brewer 10.20 delivers the malt liquor for the sampling to its exclusive 10.21 wholesaler for that malt liquor; 10.22 (8) the brewer has at least seven days before the sampling 10.23 filed with the commissioner, on a form the commissioner 10.24 prescribes, written notice of intent to furnish malt liquor for 10.25 the sampling, which contains (i) the name and address of the 10.26 retailer conducting the sampling, (ii) the maximum amount of 10.27 malt liquor to be furnished or purchased by the brewer, (iii) 10.28 the number of times the brewer has furnished malt liquor to the 10.29 retailer in the calendar year in which the notice is filed, (iv) 10.30 the date and time of the sampling, (v) where the brewer 10.31 furnishes the malt liquor, the exclusive wholesaler to whom the 10.32 brewer will deliver the malt liquor, and (vi) a statement by the 10.33 brewer to the effect that to the brewer's knowledge all 10.34 requirements of this section have been or will be complied with; 10.35 and 10.36 (9) the commissioner has not notified the brewer filing the 11.1 notice under clause (8) that the commissioner disapproves the 11.2 notice. 11.3 (b) For purposes of this subdivision, "licensed retailer" 11.4 means a licensed on-sale or off-sale retailer of alcoholic 11.5 beverages and a municipal liquor store. 11.6 (c) A brewer may provide samples of its own products on its 11.7 premises to persons touring the brewery in a quantity of less 11.8 than 100 milliliters of malt liquor per variety per person. 11.9 Sec. 9. [340A.910] [SEVERABILITY.] 11.10 In the event that a court of competent jurisdiction holds 11.11 that any section of this chapter is unconstitutional or 11.12 otherwise invalid, the invalidity does not affect other 11.13 provisions or applications of this chapter that can be given 11.14 effect without the invalid provisions or application, and to 11.15 this end the provisions of chapter 340A are severable. 11.16 Sec. 10. Laws 2003, chapter 126, section 28, is amended to 11.17 read: 11.18 Sec. 28. [ELKO SPEEDWAY; ON-SALE LICENSE.] 11.19 Notwithstanding Minnesota Statutes, section 340A.404, 11.20 subdivision 1, the city of Elko may issue an on-sale 11.21 intoxicating liquor license to the Elko Speedway in addition to 11.22 the number authorized by law. The license may authorize sales 11.23 only to persons attending racing events at the speedway. The 11.24 license authorizes sales on all days of the week. All 11.25 provisions of Minnesota Statutes, chapter 340A, not inconsistent 11.26 with this provision, apply to the license authorized under this 11.27 section. The license may be issued for a space that is not 11.28 compact and contiguous, provided that the licensed premises may 11.29 include only the space within the fenced grandstand area as 11.30 described in the approved license application. 11.31 Sec. 11. Laws 2003, chapter 126, section 29, is amended to 11.32 read: 11.33 Sec. 29. [WINE AND MALT LIQUOR LICENSES; STATE FAIR.] 11.34 (a) Notwithstanding Minnesota Statutes, sections 37.21 and 11.35 340A.412, subdivision 4, paragraph (a), clause (3),the city of11.36St. PaulRamsey County may issue a license to the holder of a 12.1 state fair concessions contract with the state agricultural 12.2 society which authorizes the licensee to sell (i) 12.3 Minnesota-produced wine by the glass at the state fair in 12.4 connection with the sale of food by the concessionaire; or (ii) 12.5 Minnesota-produced malt liquor. All provisions of Minnesota 12.6 Statutes, chapter 340A, not inconsistent herewith, apply to 12.7 licenses issued under this section. 12.8 (b) For purposes of this section "Minnesota-produced wine" 12.9 means wine produced by a farm winery licensed under Minnesota 12.10 Statutes, section 340A.315, and made from at least 75 percent 12.11 Minnesota-grown grapes, grape juice, other fruit bases, other 12.12 juices, and honey. 12.13 Sec. 12. [WADE MUNICIPAL STADIUM; LIQUOR LICENSE.] 12.14 Notwithstanding any other law to the contrary, the city of 12.15 Duluth may issue an on-sale wine and malt liquor license in 12.16 addition to the number authorized by law for the premises known 12.17 as Wade Municipal Stadium, for use during baseball games and 12.18 other events sponsored by the Duluth Huskies. The license may 12.19 authorize the sale and consumption of wine and malt liquor in 12.20 the grandstand and dining areas of the stadium. The license 12.21 authorizes sales on all days of the week. 12.22 Sec. 13. [CITY OF MINNEAPOLIS; LIQUOR LICENSE.] 12.23 Notwithstanding any law, ordinance, or charter provision to 12.24 the contrary, the city of Minneapolis may issue an intoxicating 12.25 liquor license to an establishment located at 2200 Como Avenue 12.26 Southeast, which currently holds an on-sale wine license. 12.27 Sec. 14. [STATE CAPITOL CENTENNIAL EVENTS.] 12.28 Notwithstanding any other law to the contrary, the city of 12.29 St. Paul may issue an on-sale wine and malt liquor license to 12.30 the Capitol 2005 Commission or Friends of the Minnesota State 12.31 Capitol for special events held in the State Capitol and on the 12.32 capitol grounds relating to the centennial anniversary of the 12.33 Capitol Building. The license authorized by this section is 12.34 valid from November 30, 2004, to January 2, 2006. All 12.35 provisions of Minnesota Statutes, chapter 340A, not inconsistent 12.36 with this section, apply to the license authorized by this 13.1 section. 13.2 Sec. 15. [EFFECTIVE DATE.] 13.3 Section 1 is effective July 1, 2004. Sections 2, 3, 4, 8, 13.4 9, 11, 12, 13, and 14 are effective the day following final 13.5 enactment. Section 10 is effective on approval by the Elko City 13.6 Council and compliance with Minnesota Statutes, section 645.021.