1.1 	A bill for an act
1.2 	relating to liquor; modifying regulation of brewpubs; amending Minnesota 
1.3 	Statutes 2005 Supplement, section 340A.301, subdivisions 6, 7.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2005 Supplement, section 340A.301, subdivision 6, 
1.6 	is amended to read:
1.7 		Subd. 6.Fees. The annual fees for licenses under this section are as follows:

1.8
1.9	(a)
	Manufacturers (except as provided in clauses 
(b) and (c))
		$........30,000
	
1.10		Duplicates
		$........3,000
	
1.11
1.12	(b)
	Manufacturers of wines of not more than 25 
percent alcohol by volume
		$........500
	
1.13
1.14	(c)
	Brewers who manufacture more than 3,500 
barrels of malt liquor in a year
		$........4,000
	
1.15
1.16
1.17	(d)
	Brewers who also hold one or more retail 
on-sale licenses and who manufacture fewer 
than 3,500 barrels of malt liquor in a year, at 
			
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.92.10
		any one licensed premises, the entire 
production of which is solely for consumption 
on tap on the licensed premises or for off-sale 
from that licensed premises. A brewer 
licensed under this clause must obtain a 
separate license for each licensed premises
municipality  where the brewer brews malt 
liquor. A brewer licensed under this clause 
may not be licensed as an importer under this 
chapter
		$........500
	
2.11
2.12	(e)
	Wholesalers (except as provided in clauses 
(f), (g), and (h))
		$........15,000
	
2.13		Duplicates
		$........3,000
	
2.14
2.15	(f)
	Wholesalers of wines of not more than 25 
percent alcohol by volume
		$........3,750
	
2.16	(g)
	Wholesalers of intoxicating malt liquor
		$........1,000
	
2.17		Duplicates
		$........25
	
2.18	(h)
	Wholesalers of 3.2 percent malt liquor
		$........10
	
2.19
2.20	(i)
	Brewers who manufacture fewer than 2,000 
barrels of malt liquor in a year
		$........150
	
2.21
2.22	(j)
	Brewers who manufacture 2,000 to 3,500 
barrels of malt liquor in a year
		$........500
	
2.23 	If a business licensed under this section is destroyed, or damaged to the extent that 
2.24 	it cannot be carried on, or if it ceases because of the death or illness of the licensee, the 
2.25 	commissioner may refund the license fee for the balance of the license period to the 
2.26 	licensee or to the licensee's estate.

2.27 	Sec. 2. Minnesota Statutes 2005 Supplement, section 340A.301, subdivision 7, is 
2.28 	amended to read:
2.29 		Subd. 7.Interest in other business. (a) Except as provided in this subdivision, 
2.30 	a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have 
2.31 	any ownership, in whole or in part, in a business holding a retail intoxicating liquor or 
2.32 	3.2 percent malt liquor license. The commissioner may not issue a license under this 
2.33 	section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating 
3.1 	liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. 
3.2 	A manufacturer or wholesaler of intoxicating liquor may use or have property rented 
3.3 	for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the 
3.4 	property continuously since November 1, 1933. A retailer of intoxicating liquor may not 
3.5 	use or have property rented for the manufacture or wholesaling of intoxicating liquor.
3.6 	(b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale 
3.7 	intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant 
3.8 	operated in the place of manufacture. Notwithstanding section 340A.405, a brewer 
3.9 	who holds an on-sale license issued pursuant to this paragraph or a brewer who 
3.10 	manufactures fewer than 3,500 barrels of malt liquor in a year may, with the approval 
3.11 	of the commissioner, be issued a license by a municipality for off-sale of malt liquor 
3.12 	produced and packaged on the licensed premises. Off-sale of malt liquor shall be limited 
3.13 	to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the 
3.14 	brewer is located, and the malt liquor sold off-sale must be removed from the premises 
3.15 	before the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall 
3.16 	be packaged in 64-ounce containers commonly known as "growlers." The containers 
3.17 	shall bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper 
3.18 	or plastic adhesive band, strip, or sleeve shall be applied to the container and extend 
3.19 	over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be 
3.20 	broken upon opening of the container. The adhesive band, strip, or sleeve shall bear 
3.21 	the name and address of the brewer. The containers shall be identified as malt liquor, 
3.22 	contain the name of the malt liquor, bear the name and address of the brewer selling 
3.23 	the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content 
3.24 	is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 
3.25 	7515.1100. A brewer's total retail sales at on- or off-sale under this paragraph may not 
3.26 	exceed 3,500 barrels per year, provided that off-sales may not total more than 500 barrels. 
3.27 	A brewer licensed under subdivision 6, clause (d), may distribute its own products to other 
3.28 	restaurants in which it has an ownership interest or through licensed wholesalers to other 
3.29 	retail licensees. A brewer licensed under subdivision 6, clause (d), may hold or have an 
3.30 	interest in other retail on-sale licenses, but may not have an ownership interest in whole or 
3.31 	in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, 
3.32 	importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by 
3.33 	management, direction, or control. Notwithstanding this prohibition, a brewer licensed 
3.34 	under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer 
3.35 	licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:
3.36 	(i) manufacture licensed under subdivision 6, clause (d);
4.1 	(ii) manufacture in another state for consumption exclusively in a restaurant located 
4.2 	in the place of manufacture; or
4.3 	(iii) manufacture in another state for consumption primarily in a restaurant located 
4.4 	in or immediately adjacent to the place of manufacture if the brewer was licensed under 
4.5 	subdivision 6, clause (d), on January 1, 1995.
4.6 	(c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or 
4.7 	importer may have any interest, in whole or in part, directly or indirectly, in the license, 
4.8 	business, assets, or corporate stock of a licensed malt liquor wholesaler.