1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; authorizing issuance 
  1.3             of on-sale wine and beer licenses to the Brave New 
  1.4             Institute and Loring Playhouse in Minneapolis and to 
  1.5             the Great American History Theater and Flanagan's Wake 
  1.6             at the Palace Theatre in St. Paul; permitting use of 
  1.7             premix and dispensing machines to dispense frozen and 
  1.8             iced cocktails; authorizing additional on-sale 
  1.9             intoxicating liquor licenses in Blaine, Elk River, 
  1.10            Moorhead, and St. Louis Park; authorizing Minneapolis 
  1.11            to issue an on-sale intoxicating liquor license; 
  1.12            creating legislative study committees to study issues 
  1.13            surrounding off-sales and wholesales by brewpubs and 
  1.14            small brewer and wholesaler relations; requiring 
  1.15            reports; amending Minnesota Statutes 2000, sections 
  1.16            340A.404, subdivisions 2, 2b; 340A.412, subdivision 4; 
  1.17            340A.508, by adding a subdivision; proposing coding 
  1.18            for new law in Minnesota Statutes, chapter 340A. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 2000, section 340A.404, 
  1.21  subdivision 2, is amended to read: 
  1.22     Subd. 2.  [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The 
  1.23  city of Minneapolis may issue an on-sale intoxicating liquor 
  1.24  license to the Guthrie Theater, the Cricket Theatre, the Orpheum 
  1.25  Theatre, and the State Theatre, notwithstanding the limitations 
  1.26  of law, or local ordinance, or charter provision relating to 
  1.27  zoning or school or church distances.  The licenses authorize 
  1.28  sales on all days of the week to holders of tickets for 
  1.29  performances presented by the theaters and to members of the 
  1.30  nonprofit corporations holding the licenses and to their guests. 
  1.31     (b) The city of Minneapolis may issue an intoxicating 
  1.32  liquor license to 510 Groveland Associates, a Minnesota 
  2.1   cooperative, for use by a restaurant on the premises owned by 
  2.2   510 Groveland Associates, notwithstanding limitations of law, or 
  2.3   local ordinance, or charter provision. 
  2.4      (c) The city of Minneapolis may issue an on-sale 
  2.5   intoxicating liquor license to Zuhrah Shrine Temple for use on 
  2.6   the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue 
  2.7   South in Minneapolis, notwithstanding limitations of law, or 
  2.8   local ordinances, or charter provision relating to zoning or 
  2.9   school or church distances. 
  2.10     (d) The city of Minneapolis may issue an on-sale 
  2.11  intoxicating liquor license to the American Association of 
  2.12  University Women, Minneapolis branch, for use on the premises 
  2.13  owned by the American Association of University Women, 
  2.14  Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, 
  2.15  notwithstanding limitations of law, or local ordinances, or 
  2.16  charter provisions relating to zoning or school or church 
  2.17  distances. 
  2.18     (e) The city of Minneapolis may issue an on-sale wine 
  2.19  license and an on-sale 3.2 percent malt liquor license to a 
  2.20  restaurant located at 5000 Penn Avenue South, and an on-sale 
  2.21  wine license and an on-sale malt liquor license to a restaurant 
  2.22  located at 1931 Nicollet Avenue South, notwithstanding any law 
  2.23  or local ordinance or charter provision. 
  2.24     (f) The city of Minneapolis may issue an on-sale wine 
  2.25  license and an on-sale malt liquor license to the Brave New 
  2.26  Workshop Theatre located at 3001 Hennepin Avenue South, the 
  2.27  Theatre de la Jeune Lune, the Illusion Theatre located at 528 
  2.28  Hennepin Avenue South, and the Hollywood Theatre located at 2815 
  2.29  Johnson Street Northeast, the Brave New Institute located at 
  2.30  2605 Hennepin Avenue South, and the Loring Playhouse located at 
  2.31  1633 Hennepin Avenue South, notwithstanding any law or local 
  2.32  ordinance or charter provision.  The license authorizes sales on 
  2.33  all days of the week. 
  2.34     (g) The city of Minneapolis may issue an on-sale 
  2.35  intoxicating liquor license to University Gateway Corporation, a 
  2.36  Minnesota nonprofit corporation, for use by a restaurant or 
  3.1   catering operator at the building owned and operated by the 
  3.2   University Gateway Corporation on the University of Minnesota 
  3.3   campus, notwithstanding limitations of law, or local ordinance 
  3.4   or charter provision.  The license authorizes sales on all days 
  3.5   of the week. 
  3.6      Sec. 2.  Minnesota Statutes 2000, section 340A.404, 
  3.7   subdivision 2b, is amended to read: 
  3.8      Subd. 2b.  [SPECIAL PROVISION; CITY OF ST. PAUL.] The city 
  3.9   of St. Paul may issue an on-sale intoxicating liquor license to 
  3.10  the Fitzgerald Theatre, and on-sale wine and on-sale malt liquor 
  3.11  licenses to the Great American History Theater at 30 East 10th 
  3.12  Street and Flanagan's Wake at the Palace Theatre at 17 West 
  3.13  Seventh Place, notwithstanding the limitations of law, or local 
  3.14  ordinance, or charter provision relating to zoning or school or 
  3.15  church distances.  The license authorizes sales on all days of 
  3.16  the week to holders of tickets for performances presented by the 
  3.17  theatre and to members of the nonprofit corporation holding the 
  3.18  license and to their guests. 
  3.19     Sec. 3.  Minnesota Statutes 2000, section 340A.412, 
  3.20  subdivision 4, is amended to read: 
  3.21     Subd. 4.  [LICENSES PROHIBITED IN CERTAIN AREAS.] (a) No 
  3.22  license to sell intoxicating liquor may be issued within the 
  3.23  following areas: 
  3.24     (1) where restricted against commercial use through zoning 
  3.25  ordinances and other proceedings or legal processes regularly 
  3.26  had for that purpose, except licenses may be issued to 
  3.27  restaurants in areas which were restricted against commercial 
  3.28  uses after the establishment of the restaurant; 
  3.29     (2) within the capitol or on the capitol grounds, except as 
  3.30  provided under Laws 1983, chapter 259, section 9, or section 13, 
  3.31  paragraph (b), of this act; 
  3.32     (3) on the state fairgrounds or at any place in a city of 
  3.33  the first class within one-half mile of the fairgrounds, except 
  3.34  as otherwise provided by charter; 
  3.35     (4) on the campus of the college of agriculture of the 
  3.36  University of Minnesota or at any place in a city of the first 
  4.1   class within one-half mile of the campus, provided that a city 
  4.2   may issue one on-sale wine license in this area that is not 
  4.3   included in the area described in clause (3), except as provided 
  4.4   by charter; 
  4.5      (5) within 1,000 feet of a state hospital, training school, 
  4.6   reformatory, prison, or other institution under the supervision 
  4.7   or control, in whole or in part, of the commissioner of human 
  4.8   services or the commissioner of corrections; 
  4.9      (6) in a town or municipality in which a majority of votes 
  4.10  at the last election at which the question of license was voted 
  4.11  upon were not in favor of license under section 340A.416, or 
  4.12  within one-half mile of any such town or municipality, except 
  4.13  that intoxicating liquor manufactured within this radius may be 
  4.14  sold to be consumed outside it; 
  4.15     (7) at any place on the east side of the Mississippi River 
  4.16  within one-tenth of a mile of the main building of the 
  4.17  University of Minnesota unless (i) the licensed establishment is 
  4.18  on property owned or operated by a nonprofit corporation 
  4.19  organized prior to January 1, 1940, for and by former students 
  4.20  of the University of Minnesota, or (ii) the licensed premises is 
  4.21  Northrop Auditorium; 
  4.22     (8) within 1,500 feet of a state university, except that: 
  4.23     (i) the minimum distance in the case of Winona and 
  4.24  Southwest State University is 1,200 feet; 
  4.25     (ii) within 1,500 feet of St. Cloud State University one 
  4.26  on-sale wine and two off-sale intoxicating liquor licenses may 
  4.27  be issued, measured by a direct line from the nearest corner of 
  4.28  the administration building to the main entrance of the licensed 
  4.29  establishment; 
  4.30     (iii) at Mankato State University the distance is measured 
  4.31  from the front door of the student union of the Highland campus; 
  4.32  and 
  4.33     (iv) a temporary license under section 340A.404, 
  4.34  subdivision 10, may be issued to a location on the grounds of a 
  4.35  state university for an event sponsored or approved by the state 
  4.36  university; and 
  5.1      (v) this restriction does not apply to the area surrounding 
  5.2   the premises leased by Metropolitan State University at 730 
  5.3   Hennepin Avenue South in Minneapolis; and 
  5.4      (9) within 1,500 feet of any public school that is not 
  5.5   within a city. 
  5.6      (b) The restrictions of this subdivision do not apply to a 
  5.7   manufacturer or wholesaler of intoxicating liquor or to a 
  5.8   drugstore or to a person who had a license originally issued 
  5.9   lawfully prior to July 1, 1967. 
  5.10     Sec. 4.  Minnesota Statutes 2000, section 340A.508, is 
  5.11  amended by adding a subdivision to read: 
  5.12     Subd. 4.  [PREMIX AND DISPENSING MACHINES.] Nothing in this 
  5.13  section prohibits use by an on-sale intoxicating liquor licensee 
  5.14  of a machine to premix and dispense frozen or iced cocktails, 
  5.15  provided that the machine is emptied on a daily basis.  A 
  5.16  machine described in this subdivision need not be visible to the 
  5.17  consuming public.  
  5.18     Sec. 5.  [340A.513] [SALE OF BEER KEGS.] 
  5.19     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  5.20     (a) "Beer keg" means any brewery-sealed, single container 
  5.21  that contains not less than seven gallons of malt liquor. 
  5.22     (b) "Off-sale retailer" means a holder of a license under 
  5.23  this chapter to sell alcoholic beverages at off-sale or a 
  5.24  municipal liquor store. 
  5.25     Subd. 2.  [STANDARDS.] No off-sale retailer shall sell beer 
  5.26  kegs unless that retailer affixes an identification label or tag 
  5.27  to each beer keg.  An identification label or tag shall consist 
  5.28  of paper, plastic, metal, or another durable material that is 
  5.29  not easily damaged or destroyed.  Identification labels used may 
  5.30  contain a nonpermanent adhesive material in order to apply the 
  5.31  label directly to an outside surface of a beer keg at the time 
  5.32  of sale.  Identification tags shall be attached to beer kegs at 
  5.33  the time of sale with nylon ties or cording, wire ties or other 
  5.34  metal attachment devices, or another durable means of tying or 
  5.35  attachment of the tag to the beer keg.  The identification 
  5.36  information contained on the label or tag shall include the 
  6.1   licensed off-sale retailer's name, address, and telephone 
  6.2   number; a unique beer keg number assigned by the retailer; and a 
  6.3   prominently visible warning that intentional removal or 
  6.4   defacement of the label or tag is a criminal offense.  Upon 
  6.5   return of a beer keg to the off-sale retailer that sold the beer 
  6.6   keg and attached the identification label or tag, the off-sale 
  6.7   retailer shall be responsible for the complete and thorough 
  6.8   removal of the entire identification label or tag, and any 
  6.9   adhesive or attachment devices of the label or tag.  The 
  6.10  identification label or tag must be kept on file with the 
  6.11  retailer for not less than 90 days from the date of return.  
  6.12     Subd. 3.  [IDENTIFICATION REQUIRED.] An off-sale retailer 
  6.13  may not sell a beer keg unless the beer keg has attached an 
  6.14  identification label or tag complying with the standards 
  6.15  established under subdivision 2. 
  6.16     Subd. 4.  [RETAILERS TO KEEP RECORDS.] (a) An off-sale 
  6.17  retailer who sells a beer keg must at the time of the sale 
  6.18  record: 
  6.19     (1) the number of the purchaser's driver's license, 
  6.20  Minnesota identification card, military identification card, or 
  6.21  valid United States or foreign passport; 
  6.22     (2) the date and time of the purchase; 
  6.23     (3) the beer keg identification number required under 
  6.24  subdivision 3; and 
  6.25     (4) the purchaser's signature. 
  6.26     (b) The record must be retained for not less than 90 days 
  6.27  after the date of the sale. 
  6.28     Subd. 5.  [ACCESS TO RECORDS.] An off-sale retailer 
  6.29  required to retain records under subdivision 4 must make the 
  6.30  records available during regular business hours for inspection 
  6.31  by a peace officer, the commissioner, or an agent of the 
  6.32  commissioner. 
  6.33     Subd. 6.  [VIOLATIONS.] (a) A person required to record 
  6.34  information under subdivision 4 may not knowingly make a 
  6.35  materially false entry in the book or register required under 
  6.36  subdivision 4.  In a prosecution under this subdivision, it is a 
  7.1   defense for the defendant to prove by a preponderance of the 
  7.2   evidence that the defendant reasonably and in good faith relied 
  7.3   upon the identification provided by the purchaser of a beer keg. 
  7.4      (b) No person other than an off-sale retailer, a licensed 
  7.5   wholesaler of malt beverages, a peace officer, the commissioner, 
  7.6   or an agent of the commissioner may intentionally remove 
  7.7   identification placed on a beer keg in compliance with 
  7.8   subdivision 3.  No person may intentionally deface or damage the 
  7.9   identification on a beer keg to make it unreadable. 
  7.10     Sec. 6.  [CITY OF BLAINE; LIQUOR LICENSES.] 
  7.11     The city of Blaine may issue six on-sale intoxicating 
  7.12  liquor licenses in addition to the number authorized by law.  
  7.13  All provisions of Minnesota Statutes, chapter 340A, not 
  7.14  inconsistent with this section, apply to the licenses authorized 
  7.15  under this section. 
  7.16     Sec. 7.  [CITY OF ELK RIVER; LIQUOR LICENSES.] 
  7.17     The city of Elk River may issue six on-sale liquor licenses 
  7.18  in addition to the number authorized by law.  All provisions of 
  7.19  Minnesota Statutes, chapter 340A, not inconsistent with this 
  7.20  section, apply to the licenses authorized by this section. 
  7.21     Sec. 8.  [CITY OF MOORHEAD; LIQUOR LICENSES.] 
  7.22     The city of Moorhead may issue six on-sale intoxicating 
  7.23  liquor licenses in addition to the number authorized by law.  
  7.24  All provisions of Minnesota Statutes, chapter 340A, not 
  7.25  inconsistent with this section, apply to the licenses authorized 
  7.26  under this section. 
  7.27     Sec. 9.  [CITY OF ST. LOUIS PARK; LIQUOR LICENSES.] 
  7.28     The city of St. Louis Park may issue 12 on-sale 
  7.29  intoxicating liquor licenses in addition to the number 
  7.30  authorized by law.  All provisions of Minnesota Statutes, 
  7.31  chapter 340A, not inconsistent with this section apply to the 
  7.32  licenses authorized by this section. 
  7.33     Sec. 10.  [CITY OF MINNEAPOLIS; ON-SALE LICENSE.] 
  7.34     Notwithstanding any local law or charter provision to the 
  7.35  contrary, the city of Minneapolis may issue an on-sale 
  7.36  intoxicating liquor license to Westrum's Tavern, located at 4415 
  8.1   Nicollet Avenue.  All provisions of Minnesota Statutes, chapter 
  8.2   340A, not inconsistent herewith, apply to the license authorized 
  8.3   under this section. 
  8.4      Sec. 11.  [LEGISLATIVE STUDY COMMITTEE; OFF-SALE AND 
  8.5   WHOLESALE BY BREWPUBS.] 
  8.6      Subdivision 1.  [APPOINTMENT.] The chairs of the senate 
  8.7   committee on commerce and the house of representatives committee 
  8.8   on commerce, jobs and economic development shall establish a 
  8.9   study committee to study the issue of off-sales and wholesales 
  8.10  by brewpubs.  The committee shall consist of: 
  8.11     (1) two members of the senate appointed by the chair of the 
  8.12  committee on commerce; 
  8.13     (2) two members of the house of representatives appointed 
  8.14  by the chair of the committee on commerce, jobs and economic 
  8.15  development; 
  8.16     (3) four nonlegislative members appointed jointly by the 
  8.17  two chairs, representing the brewpub industry, labor, alcoholic 
  8.18  beverage retailers, and beer wholesalers; and 
  8.19     (4) the director of the division of alcohol and gambling 
  8.20  control of the department of public safety or the director's 
  8.21  designee.  Nonlegislative members of the study committee shall 
  8.22  serve without compensation. 
  8.23     Subd. 2.  [STUDY.] The legislative study committee shall 
  8.24  study and report on the feasibility and desirability of: 
  8.25     (1) permitting brewers holding on-sale licenses under 
  8.26  Minnesota Statutes, section 340A.301, subdivision 6, clause (d), 
  8.27  to sell their products at off-sale and wholesale; 
  8.28     (2) permitting other brewers with a limited brewing 
  8.29  capacity to obtain on-sale licenses; and 
  8.30     (3) permitting customers of such brewers to take home the 
  8.31  products of such brewers in a manner as similar as possible to 
  8.32  the removal of wine authorized under Minnesota Statutes, section 
  8.33  340A.404, subdivision 11. 
  8.34     Subd. 3.  [REPORT.] The study committee shall report to the 
  8.35  legislature on the results of its study by February 15, 2002. 
  8.36     Sec. 12.  [CAPITOL CAFETERIA; WINE AND BEER LICENSE.] 
  9.1      Notwithstanding Minnesota Statutes, section 340A.412, 
  9.2   subdivision 4, paragraph (a), clause (2), the city of St. Paul 
  9.3   may issue an on-sale wine and malt liquor license for the 
  9.4   premises known as the capitol cafeteria, for special events held 
  9.5   at the capitol cafeteria. 
  9.6      Sec. 13.  [LEGISLATIVE STUDY COMMITTEE; SMALL 
  9.7   BREWER/WHOLESALER RELATIONS.] 
  9.8      Subdivision 1.  [APPOINTMENT.] The chairs of the senate 
  9.9   committee on commerce and the house of representatives committee 
  9.10  on commerce, jobs and economic development shall establish a 
  9.11  study committee to study aspects of the relationship between 
  9.12  beer wholesalers and small brewers.  The committee shall consist 
  9.13  of: 
  9.14     (1) two members of the senate appointed by the chair of the 
  9.15  committee on commerce; 
  9.16     (2) two members of the house of representatives appointed 
  9.17  by the chair of the committee on commerce, jobs and economic 
  9.18  development; 
  9.19     (3) four nonlegislative members appointed jointly by the 
  9.20  two chairs, representing small brewers, labor, alcoholic 
  9.21  beverage retailers, and beer wholesalers; and 
  9.22     (4) the director of the division of alcohol and gambling 
  9.23  control of the department of public safety or the director's 
  9.24  designee.  Nonlegislative members of the study committee shall 
  9.25  serve without compensation. 
  9.26     Subd. 2.  [STUDY.] The legislative study committee shall 
  9.27  study and report on the following issues: 
  9.28     (1) contractual relationships between brewers and beer 
  9.29  wholesalers, including terms under which such contracts may be 
  9.30  terminated; 
  9.31     (2) the feasibility and desirability of allowing small 
  9.32  brewers to sell their own products at wholesale; and 
  9.33     (3) compliance with laws and rules establishing the 
  9.34  three-tier system. 
  9.35     Subd. 3.  [REPORT.] The study committee shall report to the 
  9.36  legislature on the results of its study by February 15, 2002. 
 10.1      Sec. 14.  [EFFECTIVE DATE.] 
 10.2      Sections 1, 2, 6, 7, 8, 9, and 10 are each effective the 
 10.3   day after the governing body of the city named in each section 
 10.4   and its chief clerical officer timely complete their compliance 
 10.5   with Minnesota Statutes, section 645.021, subdivisions 2 and 3.  
 10.6   Section 4 is effective the day following final enactment.