SF 1238

1st Unofficial Engrossment - 89th Legislature (2015 - 2016)

Posted on 04/29/2015 11:01 a.m.

1.1A bill for an act 1.2relating to liquor; recodifying statutes related to certain licensees; regulating the 1.3sale and distribution of alcoholic beverages; authorizing various liquor licenses; 1.4amending Minnesota Statutes 2014, sections 340A.101, by adding a subdivision; 1.5340A.22; 340A.301; 340A.404, subdivisions 2, 10; 340A.503, subdivision 6; 1.6340A.504, subdivision 3; proposing coding for new law in Minnesota Statutes, 1.7chapter 340A. 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9ARTICLE 1 1.10RECODIFICATION 1.11    Section 1. Minnesota Statutes 2014, section 340A.101, is amended by adding a 1.12subdivision to read: 1.13     new text begin Subd. 3a. new text end new text begin Brew pub. new text end new text begin "Brew pub" is a brewer who also holds one or more retail new text end 1.14 new text begin on-sale licenses and who manufactures fewer than 3,500 barrels of malt liquor in a year, new text end 1.15 new text begin at any one licensed premises, the entire production of which is solely for consumption new text end 1.16 new text begin on tap on any licensed premises owned by the brewer, or for off-sale from those licensed new text end 1.17 new text begin premises as permitted in section 340A.24, subdivision 2. new text end 1.18    Sec. 2. Minnesota Statutes 2014, section 340A.22, is amended to read: 1.19340A.22 MICRODISTILLERIES. 1.20    Subdivision 1. Activities. (a) A microdistillery licensed under section , 1.21subdivision 6c, new text begin this chapter new text end may provide on its premises samples of distilled spirits 1.22manufactured on its premises, in an amount not to exceed 15 milliliters per variety per 1.23person. No more than 45 milliliters may be sampled under this paragraph by any person 1.24on any day. 2.1(b) A microdistillery can sell cocktails to the public, pursuant to subdivision 2. 2.2    Subd. 2. Cocktail room license. (a) A municipality, including a city with a 2.3municipal liquor store, may issue the holder of a microdistillery license under section 2.4340A.301, subdivision 6c, new text begin this chapter new text end a microdistillery cocktail room license. A 2.5microdistillery cocktail room license authorizes on-sale of distilled liquor produced by 2.6the distiller for consumption on the premises of or adjacent to one distillery location 2.7owned by the distiller. Nothing in this subdivision precludes the holder of a microdistillery 2.8cocktail room license from also holding a license to operate a restaurant at the distillery. 2.9Section 340A.409 shall apply to a license issued under this subdivision. All provisions of 2.10this chapter that apply to a retail liquor license shall apply to a license issued under this 2.11subdivision unless the provision is explicitly inconsistent with this subdivision. 2.12(b) A distiller may only have one cocktail room license under this subdivision, 2.13and may not have an ownership interest in a distillery licensed under section 340A.301, 2.14subdivision 6, paragraph (a). 2.15(c) The municipality shall impose a licensing fee on a distiller holding a 2.16microdistillery cocktail room license under this subdivision, subject to limitations 2.17applicable to license fees under section 340A.408, subdivision 2, paragraph (a). 2.18(d) A municipality shall, within ten days of the issuance of a license under this 2.19subdivision, inform the commissioner of the licensee's name and address and trade name, 2.20and the effective date and expiration date of the license. The municipality shall also 2.21inform the commissioner of a license transfer, cancellation, suspension, or revocation 2.22during the license period. 2.23(e) No single entity may hold both a cocktail room and taproom license, and a 2.24cocktail room and taproom may not be co-located. 2.25     new text begin Subd. 3. new text end new text begin License; fee. new text end new text begin The commissioner shall establish a fee for licensing new text end 2.26 new text begin microdistilleries that adequately covers the cost of issuing the license and other inspection new text end 2.27 new text begin requirements. The fees shall be deposited in an account in the special revenue fund and new text end 2.28 new text begin are appropriated to the commissioner for the purposes of this subdivision. All other new text end 2.29 new text begin requirements of section 340A.301 apply to a license under this section. new text end 2.30    Sec. 3. new text begin [340A.24] BREW PUBS. new text end 2.31     new text begin Subdivision 1. new text end new text begin On-sale license. new text end new text begin A brew pub may be issued an on-sale intoxicating new text end 2.32 new text begin liquor or 3.2 percent malt liquor license by a municipality for a restaurant operated in new text end 2.33 new text begin the place of manufacture. new text end 2.34     new text begin Subd. 2. new text end new text begin Off-sale license. new text end new text begin Notwithstanding section 340A.405, a brew pub that new text end 2.35 new text begin holds an on-sale license issued pursuant to this section may, with the approval of the new text end 3.1 new text begin commissioner, be issued a license by a municipality for off-sale of malt liquor produced new text end 3.2 new text begin and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the legal new text end 3.3 new text begin hours for off-sale at exclusive liquor stores in the jurisdiction in which the brew pub is new text end 3.4 new text begin located, and the malt liquor sold off-sale must be removed from the premises before the new text end 3.5 new text begin applicable off-sale closing time at exclusive liquor stores. Packaging of malt liquor for new text end 3.6 new text begin off-sale under this subdivision must comply with section 340A.285. new text end 3.7     new text begin Subd. 3. new text end new text begin Total retail sales. new text end new text begin A brew pub's total retail sales at on- or off-sale under new text end 3.8 new text begin this section may not exceed 3,500 barrels per year, provided that off-sales may not total new text end 3.9 new text begin more than 500 barrels. new text end 3.10     new text begin Subd. 4. new text end new text begin Interest in other license. new text end new text begin (a) A brew pub may hold or have an interest new text end 3.11 new text begin in other retail on-sale licenses, but may not have an ownership interest in whole or in new text end 3.12 new text begin part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, new text end 3.13 new text begin importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by new text end 3.14 new text begin management, direction, or control. new text end 3.15     new text begin (b) Notwithstanding this prohibition, a brew pub may be an affiliate or subsidiary new text end 3.16 new text begin company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture new text end 3.17 new text begin of malt liquor is: new text end 3.18     new text begin (1) manufacture licensed under section 340A.301, subdivision 6, clause (d); new text end 3.19     new text begin (2) manufacture in another state for consumption exclusively in a restaurant located new text end 3.20 new text begin in the place of manufacture; or new text end 3.21     new text begin (3) manufacture in another state for consumption primarily in a restaurant located new text end 3.22 new text begin in or immediately adjacent to the place of manufacture if the brewer was licensed under new text end 3.23 new text begin section 340A.301, subdivision 6, clause (d), on January 1, 1995. new text end 3.24     new text begin Subd. 5. new text end new text begin Prohibition. new text end new text begin A brew pub licensed under this chapter may not be licensed new text end 3.25 new text begin as an importer under section 340A.302. new text end 3.26    Sec. 4. new text begin [340A.26] BREWER TAPROOMS. new text end 3.27     new text begin Subdivision 1. new text end new text begin Brewer taproom license. new text end new text begin (a) A municipality, including a city with a new text end 3.28 new text begin municipal liquor store, may issue the holder of a brewer's license under section 340A.301, new text end 3.29 new text begin subdivision 6, clause (c), (i), or (j), a brewer taproom license. A brewer taproom license new text end 3.30 new text begin authorizes on-sale of malt liquor produced by the brewer for consumption on the premises new text end 3.31 new text begin of or adjacent to one brewery location owned by the brewer. Nothing in this subdivision new text end 3.32 new text begin precludes the holder of a brewer taproom license from also holding a license to operate new text end 3.33 new text begin a restaurant at the brewery. Section 340A.409 shall apply to a license issued under this new text end 3.34 new text begin subdivision. All provisions of this chapter that apply to a retail liquor license shall apply new text end 4.1 new text begin to a license issued under this subdivision unless the provision is explicitly inconsistent new text end 4.2 new text begin with this subdivision. new text end 4.3 new text begin (b) A brewer may only have one taproom license under this subdivision, and may new text end 4.4 new text begin not have an ownership interest in a brew pub. new text end 4.5     new text begin Subd. 2. new text end new text begin Prohibition. new text end new text begin A municipality may not issue a brewer taproom license to a new text end 4.6 new text begin brewer if the brewer seeking the license, or any person having an economic interest in the new text end 4.7 new text begin brewer seeking the license or exercising control over the brewer seeking the license, is new text end 4.8 new text begin a brewer that brews more than 250,000 barrels of malt liquor annually or a winery that new text end 4.9 new text begin produces more than 250,000 gallons of wine annually. new text end 4.10     new text begin Subd. 3. new text end new text begin Fee. new text end new text begin The municipality shall impose a licensing fee on a brewer holding a new text end 4.11 new text begin brewer taproom license under this subdivision, subject to limitations applicable to license new text end 4.12 new text begin fees under section 340A.408, subdivision 2, paragraph (a). new text end 4.13     new text begin Subd. 4. new text end new text begin Municipality to inform commissioner. new text end new text begin A municipality shall, within ten new text end 4.14 new text begin days of the issuance of a license under this subdivision, inform the commissioner of the new text end 4.15 new text begin licensee's name and address and trade name, and the effective date and expiration date of new text end 4.16 new text begin the license. The municipality shall also inform the commissioner of a license transfer, new text end 4.17 new text begin cancellation, suspension, or revocation during the license period. new text end 4.18     new text begin Subd. 5. new text end new text begin Sunday on-sale. new text end new text begin Notwithstanding section 340A.504, subdivision 3, a new text end 4.19 new text begin taproom may be open and may conduct on-sale business on Sundays if authorized by the new text end 4.20 new text begin municipality. new text end 4.21    Sec. 5. new text begin [340A.28] SMALL BREWER OFF-SALE. new text end 4.22     new text begin Subdivision 1. new text end new text begin License; limitations. new text end new text begin A brewer licensed under section 340A.301, new text end 4.23 new text begin subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale new text end 4.24 new text begin of malt liquor at its licensed premises that has been produced and packaged by the brewer. new text end 4.25 new text begin The license must be approved by the commissioner. A brewer may only have one license new text end 4.26 new text begin under this subdivision. The amount of malt liquor sold at off-sale may not exceed 500 new text end 4.27 new text begin barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at new text end 4.28 new text begin exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt new text end 4.29 new text begin liquor sold off-sale must be removed from the premises before the applicable off-sale new text end 4.30 new text begin closing time at exclusive liquor stores. Packaging of malt liquor for off-sale under this new text end 4.31 new text begin subdivision must comply with section 340A.285. new text end 4.32     new text begin Subd. 2. new text end new text begin Prohibition. new text end new text begin A municipality may not issue a license under this section to a new text end 4.33 new text begin brewer if the brewer seeking the license, or any person having an economic interest in the new text end 4.34 new text begin brewer seeking the license or exercising control over the brewer seeking the license, is a new text end 5.1 new text begin brewer that brews more than 20,000 barrels of its own brands of malt liquor annually or a new text end 5.2 new text begin winery that produces more than 250,000 gallons of wine annually. new text end 5.3     new text begin Subd. 3. new text end new text begin Fee. new text end new text begin The municipality shall impose a licensing fee on a brewer holding a new text end 5.4 new text begin license under this subdivision, subject to limitations applicable to license fees under new text end 5.5 new text begin section 340A.408, subdivision 3, paragraph (a). new text end 5.6    Sec. 6. new text begin [340A.285] GROWLERS. new text end 5.7 new text begin (a) Malt liquor authorized for off-sale pursuant to section 340A.24 or 340A.28 new text end 5.8 new text begin shall be packaged in 64-ounce containers commonly known as "growlers" or in 750 new text end 5.9 new text begin milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, new text end 5.10 new text begin or plug. At the time of sale, a paper or plastic adhesive band, strip, or sleeve shall be new text end 5.11 new text begin applied to the container or bottle and extended over the top of the twist-type closure, cork, new text end 5.12 new text begin stopper, or plug forming a seal that must be broken upon opening the container or bottle. new text end 5.13 new text begin The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The new text end 5.14 new text begin containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, new text end 5.15 new text begin bear the name and address of the brew pub or brewer selling the malt liquor, and shall new text end 5.16 new text begin be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in new text end 5.17 new text begin accordance with the provisions of Minnesota Rules, part 7515.1100. new text end 5.18 new text begin (b) A brew pub or brewer may, but is not required to, refill any container or bottle new text end 5.19 new text begin with malt liquor for off-sale at the request of the customer. A brew pub or brewer refilling new text end 5.20 new text begin a container or bottle must do so at its licensed premises and the container or bottle must be new text end 5.21 new text begin filled at the tap at the time of sale. A container or bottle refilled under this paragraph must new text end 5.22 new text begin be sealed and labeled in the manner described in paragraph (a). new text end 5.23    Sec. 7. Minnesota Statutes 2014, section 340A.301, is amended to read: 5.24340A.301 MANUFACTURERS new text begin , BREWERS, new text end AND WHOLESALERS 5.25LICENSES. 5.26    Subdivision 1. Licenses required. No person may directly or indirectly manufacture 5.27or sell at wholesale intoxicating liquor, or 3.2 percent malt liquor without obtaining an 5.28appropriate license from the commissioner, except where otherwise provided in this 5.29chapter. A manufacturer's license includes the right to import. A licensed brewer may sell 5.30the brewer's products at wholesale only if the brewer has been issued a wholesaler's license. 5.31The commissioner shall issue a wholesaler's license to a brewer only if (1) the commissioner 5.32determines that the brewer was selling the brewer's own products at wholesale in 5.33Minnesota on January 1, 1991, or (2) the brewer has acquired a wholesaler's business or 6.1assets under subdivision 7a, paragraph (c) or (d). A licensed wholesaler of intoxicating 6.2malt liquor may sell 3.2 percent malt liquor at wholesale without an additional license. 6.3    Subd. 2. Persons eligible. (a) Licenses under this section may be issued only to 6.4a person who: 6.5(1) is of good moral character and repute; 6.6(2) is 21 years of age or older; 6.7(3) has not had a license issued under this chapter revoked within five years of the 6.8date of license application, or to any person who at the time of the violation owns any 6.9interest, whether as a holder of more than five percent of the capital stock of a corporation 6.10licensee, as a partner or otherwise, in the premises or in the business conducted thereon, 6.11or to a corporation, partnership, association, enterprise, business, or firm in which any 6.12such person is in any manner interested; and 6.13(4) has not been convicted within five years of the date of license application of a 6.14felony, or of a willful violation of a federal or state law, or local ordinance governing 6.15the manufacture, sale, distribution, or possession for sale or distribution of alcoholic 6.16beverages. The Alcohol and Gambling Enforcement Division may require that fingerprints 6.17be taken and may forward the fingerprints to the Federal Bureau of Investigation for 6.18purposes of a criminal history check. 6.19(b) In order to determine if an individual has a felony or willful violation of federal 6.20or state law governing the manufacture, sale, distribution, or possession for sale or 6.21distribution of an alcoholic beverage, the applicant for a license to manufacture or sell 6.22at wholesale must provide the commissioner with their signed, written informed consent 6.23to conduct a background check. The commissioner may query the Minnesota criminal 6.24history repository for records on the applicant. If the commissioner conducts a national 6.25criminal history record check, the commissioner must obtain fingerprints from the 6.26applicant and forward them and the required fee to the superintendent of the Bureau 6.27of Criminal Apprehension. The superintendent may exchange the fingerprints with the 6.28Federal Bureau of Investigation for purposes of obtaining the applicant's national criminal 6.29history record information. The superintendent shall return the results of the national 6.30criminal history records check to the commissioner for the purpose of determining if the 6.31applicant is qualified to receive a license. 6.32    Subd. 3. Application. An application for a license under this section must be made 6.33to the commissioner on a form the commissioner prescribes and must be accompanied by 6.34the fee specified in subdivision 6. If an application is denied, $100 of the amount of any fee 6.35exceeding that amount shall be retained by the commissioner to cover costs of investigation. 7.1    Subd. 4. Bond. The commissioner may not issue a license under this section to a 7.2person who has not filed a bond with corporate surety, or cash, or United States government 7.3bonds payable to the state. The proof of financial responsibility must be approved by the 7.4commissioner before the license is issued. The bond must be conditioned on the licensee 7.5obeying all laws governing the business and paying when due all taxes, fees, penalties and 7.6other charges, and must provide that it is forfeited to the state on a violation of law. This 7.7subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315, 7.8that is in existence as of January 1, 2010. Bonds must be in the following amounts: 7.9 7.10 Manufacturers and wholesalers of intoxicating liquor except as provided in this subdivision $ 10,000 7.11 7.12 Manufacturers and wholesalers of wine up to 25 percent alcohol by weight $ 5,000 7.13 7.14 Manufacturers and wholesalers of beer of more than 3.2 percent alcohol by weight $ 1,000 7.15 7.16 Manufacturers and wholesalers of fewer than 20,000 proof gallons $ 2,000 7.17 7.18 Manufacturers and wholesalers of 20,000 to 40,000 proof gallons $ 3,000 7.19    Subd. 5. Period of license. Licenses issued under this section are valid for one year 7.20except that to coordinate expiration dates initial licenses may be issued for a shorter period. 7.21    Subd. 6. Fees. The annual fees for licenses under this section are as follows: 7.22 7.23 (a) Manufacturers (except as provided in clauses (b) and (c)) $ 30,000 7.24 Duplicates $ 3,000 7.25 7.26 (b) Manufacturers of wines of not more than 25 percent alcohol by volume $ 500 7.27 7.28 (c) Brewers who manufacture more than 3,500 barrels of malt liquor in a year $ 4,000 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 7.37 7.38 7.39 7.40 (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 any one licensed premises, the entire production of which is solely for consumption on tap on any licensed premises owned by the brewer, or for off-sale from those licensed premises as permitted in subdivision 7 new text begin Brew pubs new text end . A brewer new text begin brew pub new text end licensed under this clause must obtain a separate license for each licensed premises where the brewer brews new text begin brew pub produces new text end malt liquor. A brewer licensed under this clause may not be licensed as an importer under this chapter $ 500 7.41 7.42 (e) Wholesalers (except as provided in clauses (f), (g), and (h)) $ 15,000 7.43 Duplicates $ 3,000 7.44 7.45 (f) Wholesalers of wines of not more than 25 percent alcohol by volume $ 3,750 7.46 (g) Wholesalers of intoxicating malt liquor $ 1,000 8.1 Duplicates $ 25 8.2 (h) Wholesalers of 3.2 percent malt liquor $ 10 8.3 8.4 (i) Brewers who manufacture fewer than 2,000 barrels of malt liquor in a year $ 150 8.5 8.6 (j) Brewers who manufacture 2,000 to 3,500 barrels of malt liquor in a year $ 500 8.7If a business licensed under this section is destroyed, or damaged to the extent that 8.8it cannot be carried on, or if it ceases because of the death or illness of the licensee, the 8.9commissioner may refund the license fee for the balance of the license period to the 8.10licensee or to the licensee's estate. 8.11    Subd. 6a. Permits and new text begin identification cards; new text end fees. Any person engaged in the 8.12purchase, sale, or use for any purpose other than personal consumption of intoxicating 8.13alcoholic beverages or ethyl alcohol shall obtain the appropriate regulatory permit and 8.14identification card from the commissioner as provided in this subdivision. The fee for each 8.15permit, other than one issued to a state or federal agency, is $35 and must be submitted 8.16together with the appropriate application form provided by the commissioner. Identification 8.17cards and permits must be issued for a period coinciding with that of the appropriate state 8.18or municipal license and are not transferable. In instances where there is no annual license 8.19period, cards and permits expire one year after the date of issuance. The authority to 8.20engage in the purchase, sale, or use granted by the card or permit may be revoked by the 8.21commissioner upon evidence of a violation by the holder of such a card or permit of any 8.22of the provisions of chapter 340A or any rule of the commissioner made pursuant to law. 8.23    Subd. 6b. Brewer taproom license. (a) A municipality, including a city with a 8.24municipal liquor store, may issue the holder of a brewer's license under subdivision 6, 8.25clause (c), (i), or (j), a brewer taproom license. A brewer taproom license authorizes on-sale 8.26of malt liquor produced by the brewer for consumption on the premises of or adjacent 8.27to one brewery location owned by the brewer. Nothing in this subdivision precludes the 8.28holder of a brewer taproom license from also holding a license to operate a restaurant at 8.29the brewery. Section shall apply to a license issued under this subdivision. All 8.30provisions of this chapter that apply to a retail liquor license shall apply to a license issued 8.31under this subdivision unless the provision is explicitly inconsistent with this subdivision. 8.32(b) A brewer may only have one taproom license under this subdivision, and may 8.33not have an ownership interest in a brewery licensed under subdivision 6, clause (d). 8.34(c) A municipality may not issue a brewer taproom license to a brewer if the brewer 8.35seeking the license, or any person having an economic interest in the brewer seeking the 8.36license or exercising control over the brewer seeking the license, is a brewer that brews 9.1more than 250,000 barrels of malt liquor annually or a winery that produces more than 9.2250,000 gallons of wine annually. 9.3(d) The municipality shall impose a licensing fee on a brewer holding a brewer 9.4taproom license under this subdivision, subject to limitations applicable to license fees 9.5under section 340A.408, subdivision 2, paragraph (a). 9.6(e) A municipality shall, within ten days of the issuance of a license under this 9.7subdivision, inform the commissioner of the licensee's name and address and trade name, 9.8and the effective date and expiration date of the license. The municipality shall also 9.9inform the commissioner of a license transfer, cancellation, suspension, or revocation 9.10during the license period. 9.11(f) Notwithstanding section 340A.504, subdivision 3, a taproom may be open and 9.12may conduct on-sale business on Sundays if authorized by the municipality. 9.13    Subd. 6c. Microdistilleries. The commissioner shall establish a fee for licensing 9.14microdistilleries that adequately covers the cost of issuing the license and other inspection 9.15requirements. The fees shall be deposited in an account in the special revenue fund and 9.16are appropriated to the commissioner for the purposes of this subdivision. 9.17    Subd. 6d. Small brewer license. (a) A brewer licensed under subdivision 6, clause 9.18(c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its 9.19licensed premises that has been produced and packaged by the brewer. The license must be 9.20approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed 9.21500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at 9.22exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor 9.23sold off-sale must be removed from the premises before the applicable off-sale closing 9.24time at exclusive liquor stores. The malt liquor shall be packed in 64-ounce containers 9.25commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall 9.26bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic 9.27adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over 9.28the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken 9.29upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the 9.30name and address of the brewer. The containers or bottles shall be identified as malt 9.31liquor, contain the name of the malt liquor, bear the name and address of the brewer selling 9.32the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is 9.33labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. 9.34(b) A brewer may, but is not required to, refill any growler with malt liquor for 9.35off-sale at the request of a customer. A brewer refilling a growler must do so at its licensed 10.1premises and the growler must be filled at the tap at the time of sale. A growler refilled 10.2under this paragraph must be sealed and labeled in the manner described in paragraph (a). 10.3(c) A brewer may only have one license under this subdivision. 10.4(d) A municipality may not issue a license under this subdivision to a brewer if the 10.5brewer seeking the license, or any person having an economic interest in the brewer 10.6seeking the license or exercising control over the brewer seeking the license, is a brewer 10.7that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery 10.8that produces more than 250,000 gallons of wine annually. 10.9(e) The municipality shall impose a licensing fee on a brewer holding a license 10.10under this subdivision, subject to limitations applicable to license fees under section 10.11340A.408, subdivision 3, paragraph (a). 10.12    Subd. 7. Interest in other business. (a) Except as provided in this subdivision, 10.13a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have 10.14any ownership, in whole or in part, in a business holding a retail intoxicating liquor or 10.153.2 percent malt liquor license. The commissioner may not issue a license under this 10.16section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating 10.17liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. 10.18A manufacturer or wholesaler of intoxicating liquor may use or have property rented 10.19for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the 10.20property continuously since November 1, 1933. A retailer of intoxicating liquor may not 10.21use or have property rented for the manufacture or wholesaling of intoxicating liquor. 10.22    (b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale 10.23intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant 10.24operated in the place of manufacture. Notwithstanding section , a brewer who 10.25holds an on-sale license issued pursuant to this paragraph may, with the approval of the 10.26commissioner, be issued a license by a municipality for off-sale of malt liquor produced 10.27and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the 10.28legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer 10.29is located, and the malt liquor sold off-sale must be removed from the premises before 10.30the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall be 10.31packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter 10.32bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At 10.33the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the 10.34container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug 10.35forming a seal that must be broken upon opening of the container or bottle. The adhesive 10.36band, strip, or sleeve shall bear the name and address of the brewer. The containers or 11.1bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name 11.2and address of the brewer selling the malt liquor, and shall be considered intoxicating 11.3liquor unless the alcoholic content is labeled as otherwise in accordance with the 11.4provisions of Minnesota Rules, part 7515.1100. A brewer may, but is not required to, refill 11.5any growler with malt liquor for off-sale at the request of a customer. A brewer refilling a 11.6growler must do so at its licensed premises and the growler must be filled at the tap at the 11.7time of sale. A growler refilled under this paragraph must be sealed and labeled in the 11.8manner described in this paragraph. A brewer's total retail sales at on- or off-sale under 11.9this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total 11.10more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have 11.11an interest in other retail on-sale licenses, but may not have an ownership interest in whole 11.12or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, 11.13importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by 11.14management, direction, or control. Notwithstanding this prohibition, a brewer licensed 11.15under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer 11.16licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is: 11.17    (i) manufacture licensed under subdivision 6, clause (d); 11.18    (ii) manufacture in another state for consumption exclusively in a restaurant located 11.19in the place of manufacture; or 11.20    (iii) manufacture in another state for consumption primarily in a restaurant located 11.21in or immediately adjacent to the place of manufacture if the brewer was licensed under 11.22subdivision 6, clause (d), on January 1, 1995. 11.23    (c) new text begin (b) new text end Except as provided in subdivision 7a, no brewer as defined in subdivision 7a 11.24or importer may have any interest, in whole or in part, directly or indirectly, in the license, 11.25business, assets, or corporate stock of a licensed malt liquor wholesaler. 11.26    Subd. 7a. Permitted interests in wholesale business. (a) A brewer may financially 11.27assist a wholesaler of malt liquor through participation in a limited partnership in which 11.28the brewer is the limited partner and the wholesaler is the general partner. A limited 11.29partnership authorized in this paragraph may not exist for more than ten years from the 11.30date of its creation, and may not, directly or indirectly, be recreated, renewed, or extended 11.31beyond that date. 11.32(b) A brewer may financially assist a malt liquor wholesaler and collateralize the 11.33financing by taking a security interest in the inventory and assets, other than the corporate 11.34stock, of the wholesaler. A financial agreement authorized by this paragraph may not be 11.35in effect for more than ten years from the date of its creation and may not be directly or 11.36indirectly extended or renewed. 12.1(c) A brewer who, after creation of a financial agreement authorized by paragraph 12.2(b), or after creation of a limited partnership authorized in paragraph (a), acquires legal 12.3or equitable title to the wholesaler's business which was the subject of the agreement or 12.4limited partnership, or to the business assets, must divest the business or its assets within 12.5two years of the date of acquiring them. A malt liquor wholesaler whose business or 12.6assets are acquired by a brewer as described in this paragraph may not enter into another 12.7such financial agreement, or participate in another such limited partnership, for 20 years 12.8from the date of the acquisition of the business or assets. 12.9(d) A brewer may have an interest in the business, assets, or corporate stock of a 12.10malt liquor wholesaler as a result of (1) a judgment against the wholesaler arising out of a 12.11default by the wholesaler or (2) acquisition of title to the business, assets, or corporate 12.12stock as a result of a written request of the wholesaler. A brewer may maintain ownership 12.13of or an interest in the business, assets, or corporate stock under this paragraph for not 12.14more than two years and only for the purpose of facilitating an orderly transfer of the 12.15business to an owner not affiliated with the brewer. 12.16(e) A brewer may continue to maintain an ownership interest in a malt liquor 12.17wholesaler if it owned the interest on January 1, 1991. 12.18(f) A brewer that was legally selling the brewer's own products at wholesale in 12.19Minnesota on January 1, 1991, may continue to sell those products at wholesale in the 12.20area where it was selling those products on that date. 12.21(g) A brewer that manufactures no more than 20,000 barrels of malt liquor or its 12.22metric equivalent in a calendar year may own or have an interest in a malt liquor wholesaler 12.23that sells only the brewer's products, provided that a brewer that manufactures between 12.2420,000 and 25,000 barrels in any calendar year shall be permitted to continue to own or 12.25have an interest in a malt liquor wholesaler that sells only the brewer's products if: (1) that 12.26malt liquor wholesaler distributes no more than 20,000 barrels per calendar year; and (2) 12.27the brewer has not manufactured 25,000 barrels in any calendar year. Notwithstanding the 12.28foregoing, a brewer that manufactured between 20,000 and 25,000 barrels in 2012 shall be 12.29permitted to continue to own or have an interest in a malt liquor wholesaler that sells only 12.30the brewer's products until that brewer manufactures 25,000 barrels in a calendar year. 12.31(h) When the commissioner issues a license to a malt liquor wholesaler described in 12.32paragraph (a) or (b), the commissioner may issue the license only to the entity which is 12.33actually operating the wholesale business and may not issue the license to a brewer that is 12.34a limited partner under paragraph (a) or providing financial assistance under paragraph (b) 12.35unless the brewer has acquired a wholesaler's business or assets under paragraph (c) or (d). 13.1(i) For purposes of this subdivision and subdivision 7, clause (c) new text begin paragraph (b) new text end , 13.2"brewer" means: 13.3(1) a holder of a license to manufacture malt liquor; 13.4(2) an officer, director, agent, or employee of such a license holder; and 13.5(3) an affiliate of such a license holder, regardless of whether the affiliation is 13.6corporate or by management, direction, or control. 13.7    Subd. 8. Sales without license. A licensed brewer new text begin or brew pub new text end may without an 13.8additional license sell malt liquor to employees or retired former employees, in amounts 13.9of not more than 768 fluid ounces in a week for off-premise consumption only. A collector 13.10of commemorative bottles, those terms are as defined in section 297G.01, subdivisions 4 13.11and 5, may sell them to another collector without a license. It is also lawful for a collector 13.12of beer cans to sell unopened cans of a brand which has not been sold commercially for at 13.13least two years to another collector without obtaining a license. The amount sold to any 13.14one collector in any one month shall not exceed 768 fluid ounces. A licensed manufacturer 13.15of wine containing not more than 25 percent alcohol by volume nor less than 51 percent 13.16wine made from Minnesota-grown agricultural products may sell at on-sale or off-sale 13.17wine made on the licensed premises without a further license. 13.18    Subd. 9. Unlicensed manufacture. (a) Nothing in this chapter requires a license for 13.19the natural fermentation of fruit juices or brewing of beer in the home for family use. 13.20(b) Naturally fermented fruit juices or beer made under this subdivision may be 13.21removed from the premises where made for use at organized affairs, exhibitions, or 13.22competitions, including, but not limited to, homemaker's contests, tastings, or judging. 13.23(c) For purposes of this subdivision, "tastings" means an event where the general 13.24public may sample unlicensed naturally fermented fruit juices or beer. 13.25(d) Beverages produced pursuant to this subdivision may be sampled or used in 13.26tastings provided that the beverage is made and transported in containers and equipment 13.27that shall not allow the migration of toxic substances. 13.28(e) Public notice meeting the requirements of this paragraph must be given in writing 13.29or signage at any tasting. The notice shall include disclosure that the unlicensed naturally 13.30fermented fruit juices or beer being offered is homemade and not subject to state inspection, 13.31and may be consumed by persons over the age of 21 at their own risk. The notice must 13.32include the name and address of the person who processed and bottled the beverage. 13.33(f) Naturally fermented fruit juices or beer removed under this subdivision may not 13.34be sold or offered for sale. 13.35    Sec. 8. new text begin REVISOR'S INSTRUCTION. new text end 14.1 new text begin (a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed new text end 14.2 new text begin in column A to the references listed in column B. new text end 14.3 new text begin Column A new text end new text begin Column B new text end 14.4 new text begin 340A.301, subdivision 6a new text end new text begin 340A.301, subdivision 7 new text end 14.5 new text begin 340A.301, subdivision 7 new text end new text begin 340A.301, subdivision 8 new text end 14.6 new text begin 340A.301, subdivision 7a new text end new text begin 340A.301, subdivision 9 new text end 14.7 new text begin 340A.301, subdivision 8 new text end new text begin 340A.301, subdivision 10 new text end 14.8 new text begin 340A.301, subdivision 9 new text end new text begin 340A.301, subdivision 11 new text end 14.9 new text begin (b) The revisor of statutes shall make all necessary cross-reference changes in new text end 14.10 new text begin Minnesota Statutes and Minnesota Rules consistent with the amendments and renumbering new text end 14.11 new text begin in this act. new text end 14.12 new text begin (c) The revisor of statutes shall merge any amendments made in article 2 into the new text end 14.13 new text begin recodification made in this article. new text end 14.14    Sec. 9. new text begin EFFECTIVE DATE. new text end 14.15 new text begin This article is effective the day following final enactment. new text end 14.16ARTICLE 2 14.17MISCELLANEOUS ALCOHOL PROVISIONS 14.18    Section 1. Minnesota Statutes 2014, section 340A.22, is amended by adding a 14.19subdivision to read: 14.20     new text begin Subd. 3. new text end new text begin Off-sale license. new text end new text begin A microdistillery may be issued a license by the local new text end 14.21 new text begin licensing authority for off-sale of distilled spirits. The license may allow the sale of one new text end 14.22 new text begin 375 milliliter bottle per customer per day of product manufactured on-site, subject to the new text end 14.23 new text begin following requirements: new text end 14.24 new text begin (1) off-sale hours of sale must conform to hours of sale for retail off-sale licensees in new text end 14.25 new text begin the licensing municipality; and new text end 14.26 new text begin (2) no brand may be sold at the microdistillery unless it is also available for new text end 14.27 new text begin distribution by wholesalers. new text end 14.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 14.29    Sec. 2. Minnesota Statutes 2014, section 340A.301, subdivision 6d, is amended to read: 14.30    Subd. 6d. Small brewer license. (a) A brewer licensed under subdivision 6, clause 14.31(c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its 14.32licensed premises that has been produced and packaged by the brewer. The license must be 14.33approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed 15.1500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at 15.2exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor 15.3sold off-sale must be removed from the premises before the applicable off-sale closing time 15.4at exclusive liquor stores new text begin , except that malt liquor in growlers only may be sold at off-sale new text end 15.5 new text begin on Sundays. Sunday sales must be approved by the licensing jurisdiction and hours may be new text end 15.6 new text begin established by those jurisdictions new text end . The malt liquor shall be packed in 64-ounce containers 15.7commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall 15.8bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic 15.9adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over 15.10the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken 15.11upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the 15.12name and address of the brewer. The containers or bottles shall be identified as malt 15.13liquor, contain the name of the malt liquor, bear the name and address of the brewer selling 15.14the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is 15.15labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. 15.16(b) A brewer may, but is not required to, refill any growler with malt liquor for 15.17off-sale at the request of a customer. A brewer refilling a growler must do so at its licensed 15.18premises and the growler must be filled at the tap at the time of sale. A growler refilled 15.19under this paragraph must be sealed and labeled in the manner described in paragraph (a). 15.20(c) A brewer may only have one license under this subdivision. 15.21(d) A municipality may not issue a license under this subdivision to a brewer if the 15.22brewer seeking the license, or any person having an economic interest in the brewer 15.23seeking the license or exercising control over the brewer seeking the license, is a brewer 15.24that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery 15.25that produces more than 250,000 gallons of wine annually. 15.26(e) The municipality shall impose a licensing fee on a brewer holding a license 15.27under this subdivision, subject to limitations applicable to license fees under section 15.28340A.408, subdivision 3 , paragraph (a). 15.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 15.30    Sec. 3. Minnesota Statutes 2014, section 340A.301, subdivision 7, is amended to read: 15.31    Subd. 7. Interest in other business. (a) Except as provided in this subdivision, 15.32a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have 15.33any ownership, in whole or in part, in a business holding a retail intoxicating liquor or 15.343.2 percent malt liquor license. The commissioner may not issue a license under this 15.35section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating 16.1liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. 16.2A manufacturer or wholesaler of intoxicating liquor may use or have property rented 16.3for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the 16.4property continuously since November 1, 1933. A retailer of intoxicating liquor may not 16.5use or have property rented for the manufacture or wholesaling of intoxicating liquor. 16.6    (b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale 16.7intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant 16.8operated in the place of manufacture. Notwithstanding section 340A.405, a brewer who 16.9holds an on-sale license issued pursuant to this paragraph may, with the approval of the 16.10commissioner, be issued a license by a municipality for off-sale of malt liquor produced 16.11and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the 16.12legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer 16.13is located, and the malt liquor sold off-sale must be removed from the premises before 16.14the applicable off-sale closing time at exclusive liquor stores new text begin , except that malt liquor in new text end 16.15 new text begin growlers only may be sold at off-sale on Sundays. Sunday sales must be approved by new text end 16.16 new text begin the licensing jurisdiction and hours may be established by those jurisdictions new text end . The malt 16.17liquor shall be packaged in 64-ounce containers commonly known as "growlers" or in 750 16.18milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or 16.19plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be 16.20applied to the container or bottle and extend over the top of the twist-type closure, cork, 16.21stopper, or plug forming a seal that must be broken upon opening of the container or bottle. 16.22The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The 16.23containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, 16.24bear the name and address of the brewer selling the malt liquor, and shall be considered 16.25intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with 16.26the provisions of Minnesota Rules, part 7515.1100. A brewer may, but is not required 16.27to, refill any growler with malt liquor for off-sale at the request of a customer. A brewer 16.28refilling a growler must do so at its licensed premises and the growler must be filled at the 16.29tap at the time of sale. A growler refilled under this paragraph must be sealed and labeled in 16.30the manner described in this paragraph. A brewer's total retail sales at on- or off-sale under 16.31this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total 16.32more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have 16.33an interest in other retail on-sale licenses, but may not have an ownership interest in whole 16.34or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, 16.35importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by 16.36management, direction, or control. Notwithstanding this prohibition, a brewer licensed 17.1under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer 17.2licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is: 17.3    (i) manufacture licensed under subdivision 6, clause (d); 17.4    (ii) manufacture in another state for consumption exclusively in a restaurant located 17.5in the place of manufacture; or 17.6    (iii) manufacture in another state for consumption primarily in a restaurant located 17.7in or immediately adjacent to the place of manufacture if the brewer was licensed under 17.8subdivision 6, clause (d), on January 1, 1995. 17.9    (c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or 17.10importer may have any interest, in whole or in part, directly or indirectly, in the license, 17.11business, assets, or corporate stock of a licensed malt liquor wholesaler. 17.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.13    Sec. 4. Minnesota Statutes 2014, section 340A.404, subdivision 2, is amended to read: 17.14    Subd. 2. Special provision; city of Minneapolis. (a) The city of Minneapolis may 17.15issue an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the 17.16Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding 17.17the limitations of law, or local ordinance, or charter provision relating to zoning or school 17.18or church distances. The licenses authorize sales on all days of the week to holders 17.19of tickets for performances presented by the theaters and to members of the nonprofit 17.20corporations holding the licenses and to their guests. 17.21(b) The city of Minneapolis may issue an intoxicating liquor license to 510 17.22Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises 17.23owned by 510 Groveland Associates, notwithstanding limitations of law, or local 17.24ordinance, or charter provision. 17.25(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to 17.26Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 17.272540 Park Avenue South in Minneapolis, notwithstanding limitations of law, or local 17.28ordinances, or charter provision relating to zoning or school or church distances. 17.29(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to 17.30the American Association of University Women, Minneapolis branch, for use on the 17.31premises owned by the American Association of University Women, Minneapolis branch, 17.32at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local 17.33ordinances, or charter provisions relating to zoning or school or church distances. 17.34(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 17.35percent malt liquor license to a restaurant located at 5000 Penn Avenue South, and an 18.1on-sale wine license and an on-sale malt liquor license to a restaurant located at 1931 18.2Nicollet Avenue South, notwithstanding any law or local ordinance or charter provision. 18.3(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt 18.4liquor license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue 18.5South, the Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue 18.6South, the Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring 18.7Playhouse located at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 18.8Lyndale Avenue South, Brave New Institute located at 2605 Hennepin Avenue South, 18.9the Guthrie Lab located at 700 North First Street, and the Southern Theatre located at 18.101420 Washington Avenue South, notwithstanding any law or local ordinance or charter 18.11provision. The license authorizes sales on all days of the week. 18.12(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to 18.13University Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant 18.14or catering operator at the building owned and operated by the University Gateway 18.15Corporation on the University of Minnesota campus, notwithstanding limitations of law, or 18.16local ordinance or charter provision. The license authorizes sales on all days of the week. 18.17(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 18.18Walker Art Center's concessionaire or operator, for a restaurant and catering operator 18.19on the premises of the Walker Art Center, notwithstanding limitations of law, or local 18.20ordinance or charter provisions. The license authorizes sales on all days of the week. 18.21(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 18.22Guthrie Theater's concessionaire or operator for a restaurant and catering operator on the 18.23premises of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or 18.24charter provisions. The license authorizes sales on all days of the week. 18.25(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt 18.26liquor license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or 18.27operator for a restaurant and catering operator on the premises of the Minnesota Book and 18.28Literary Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local 18.29ordinance or charter provision. The license authorizes sales on all days of the week. 18.30(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a 18.31restaurant located at 5411 Penn Avenue South, notwithstanding any law or local ordinance 18.32or charter provision. 18.33(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 18.34Museum of Russian Art's concessionaire or operator for a restaurant and catering operator 18.35on the premises of the Museum of Russian Art located at 5500 Stevens Avenue South, 18.36notwithstanding any law or local ordinance or charter provision. 19.1(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the 19.2American Swedish Institute or to its concessionaire or operator for use on the premises 19.3owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding 19.4limitations of law, or local ordinances, or charter provision relating to zoning or school 19.5or church distances. 19.6(n) Notwithstanding any other law, local ordinance, or charter provision, the 19.7city of Minneapolis may issue one or more on-sale intoxicating liquor licenses to the 19.8Minneapolis Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity 19.9holding a concessions or catering contract with the Minneapolis Institute of Arts for use 19.10on the premises of the Minneapolis Institute of Arts. The licenses authorized by this 19.11subdivision may be issued for space that is not compact and contiguous, provided that all 19.12such space is included in the description of the licensed premises on the approved license 19.13application. The licenses authorize sales on all days of the week. 19.14 new text begin (o) The city of Minneapolis may issue an on-sale intoxicating liquor license to new text end 19.15 new text begin Norway House or to its concessionaire or operator for use on the premises owned by new text end 19.16 new text begin Norway House at 913 East Franklin Avenue, notwithstanding limitations of law, or local new text end 19.17 new text begin ordinances, or charter provision relating to zoning or school or church distances. new text end 19.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the Minneapolis new text end 19.19 new text begin City Council and compliance with Minnesota Statutes, section 645.021. new text end 19.20    Sec. 5. Minnesota Statutes 2014, section 340A.404, subdivision 10, is amended to read: 19.21    Subd. 10. Temporary on-sale licenses. (a) The governing body of a municipality 19.22may issue to (1) a club or charitable, religious, or other nonprofit organization in existence 19.23for at least three years, (2) a political committee registered under section 10A.14, or (3) a 19.24state university, a temporary license for the on-sale of intoxicating liquor in connection 19.25with a social event within the municipality sponsored by the licensee. The license may 19.26authorize the on-sale of intoxicating liquor for not more than four consecutive days, and 19.27may authorize on-sales on premises other than premises the licensee owns or permanently 19.28occupies. The license may provide that the licensee may contract for intoxicating liquor 19.29catering services with the holder of a full-year on-sale intoxicating liquor license issued by 19.30any municipality. The licenses are subject to the terms, including a license fee, imposed 19.31by the issuing municipality. Licenses issued under this subdivision are subject to all 19.32laws and ordinances governing the sale of intoxicating liquor except sections 340A.409 19.33and 340A.504, subdivision 3, paragraph (d), and those laws and ordinances which by 19.34their nature are not applicable. Licenses under this subdivision are not valid unless first 19.35approved by the commissioner of public safety. 20.1(b) A county under this section may issue a temporary license only to a premises 20.2located in the unincorporated or unorganized territory of the county. 20.3(c) The governing body of a municipality may issue to a brewer who manufactures 20.4fewer than 3,500 barrels of malt liquor in a year new text begin or a microdistillery new text end a temporary 20.5license for the on-sale of intoxicating liquor in connection with a social event within 20.6the municipality sponsored by the brewer new text begin or microdistillery new text end . The terms and conditions 20.7specified for temporary licenses under paragraph (a) shall apply to a license issued under 20.8this paragraph, except that the requirements of section 340A.409, subdivisions 1 to 3a, 20.9shall apply to the license. 20.10    Sec. 6. Minnesota Statutes 2014, section 340A.503, subdivision 6, is amended to read: 20.11    Subd. 6. Proof of age; defense; seizure of false identification. (a) Proof of age 20.12for purchasing or consuming alcoholic beverages may be established only by one of 20.13the following: 20.14(1) a valid driver's license or identification card issued by Minnesota, another state, or 20.15a province of Canada, and including the photograph and date of birth of the licensed person; 20.16(2) a valid military identification card issued by the United States Department of 20.17Defense; 20.18(3) a valid passport issued by the United States; 20.19 new text begin (4) a valid instructional permit issued under section 171.05 to a person of legal new text end 20.20 new text begin age to purchase alcohol which includes a photograph and the date of birth of the person new text end 20.21 new text begin issued the permit; new text end or 20.22(4) new text begin (5) new text end in the case of a foreign national, by a valid passport. 20.23(b) In a prosecution under subdivision 2, clause (1), it is a defense for the defendant 20.24to prove by a preponderance of the evidence that the defendant reasonably and in good 20.25faith relied upon representations of proof of age authorized in paragraph (a) in selling, 20.26bartering, furnishing, or giving the alcoholic beverage. 20.27(c) A licensed retailer or municipal liquor store may seize a form of identification 20.28listed under paragraph (a) if the retailer or municipal liquor store has reasonable grounds 20.29to believe that the form of identification has been altered or falsified or is being used to 20.30violate any law. A retailer or municipal liquor store that seizes a form of identification as 20.31authorized under this paragraph must deliver it to a law enforcement agency, within 24 20.32hours of seizing it. 20.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2015. new text end 20.34    Sec. 7. Minnesota Statutes 2014, section 340A.504, subdivision 3, is amended to read: 21.1    Subd. 3. Intoxicating liquor; Sunday sales; on-sale. (a) A restaurant, club, 21.2bowling center, or hotel with a seating capacity for at least 30 persons and which holds 21.3an on-sale intoxicating liquor license may sell intoxicating liquor for consumption on 21.4the premises in conjunction with the sale of food between the hours of 10:00 new text begin 8:00 new text end a.m. 21.5on Sundays and 2:00 a.m. on Mondays. 21.6(b) An establishment serving intoxicating liquor on Sundays must obtain a Sunday 21.7license. The license must be issued by the governing body of the municipality for a period 21.8of one year, and the fee for the license may not exceed $200. 21.9(c) A city may issue a Sunday intoxicating liquor license only if authorized to do 21.10so by the voters of the city voting on the question at a general or special election. A 21.11county may issue a Sunday intoxicating liquor license in a town only if authorized to do 21.12so by the voters of the town as provided in paragraph (d). A county may issue a Sunday 21.13intoxicating liquor license in unorganized territory only if authorized to do so by the 21.14voters of the election precinct that contains the licensed premises, voting on the question 21.15at a general or special election. 21.16(d) An election conducted in a town on the question of the issuance by the county of 21.17Sunday sales licenses to establishments located in the town must be held on the day of the 21.18annual election of town officers. 21.19(e) Voter approval is not required for licenses issued by the Metropolitan Airports 21.20Commission or common carrier licenses issued by the commissioner. Common carriers 21.21serving intoxicating liquor on Sunday must obtain a Sunday license from the commissioner 21.22at an annual fee of $75, plus $30 for each duplicate. 21.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 21.24    Sec. 8. new text begin SPECIAL LICENSE; BECKER. new text end 21.25 new text begin Notwithstanding any law or ordinance to the contrary, the city of Becker may issue new text end 21.26 new text begin an on-sale intoxicating liquor license for a golf course that is located at 14000 Clubhouse new text end 21.27 new text begin Lane and is owned by the city. The provisions of Minnesota Statutes, chapter 340A, not new text end 21.28 new text begin inconsistent with this section, apply to the license issued under this section. The city new text end 21.29 new text begin of Becker is deemed the licensee under this section, and the provisions of Minnesota new text end 21.30 new text begin Statutes, sections new text end new text begin and new text end new text begin , apply to the license as if the establishment new text end 21.31 new text begin were a municipal liquor store. new text end 21.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the Becker City new text end 21.33 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 22.1    Sec. 9. new text begin SPECIAL LICENSE; DULUTH. new text end 22.2 new text begin Notwithstanding any law or ordinance to the contrary, the city of Duluth may issue new text end 22.3 new text begin an on-sale intoxicating liquor license for the Lester Park Golf Course that is located at new text end 22.4 new text begin 1860 Lester River Road and is owned by the city. The provisions of Minnesota Statutes, new text end 22.5 new text begin chapter 340A, not inconsistent with this section, apply to the license issued under this new text end 22.6 new text begin section. The city of Duluth is deemed the licensee under this section, and the provisions new text end 22.7 new text begin of Minnesota Statutes, sections new text end new text begin and new text end new text begin , apply to the license as if the new text end 22.8 new text begin establishment were a municipal liquor store. new text end 22.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the Duluth City new text end 22.10 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 22.11    Sec. 10. new text begin SPECIAL LICENSE; INVER GROVE HEIGHTS. new text end 22.12 new text begin Notwithstanding any law or ordinance to the contrary, the city of Inver Grove new text end 22.13 new text begin Heights may issue an on-sale intoxicating liquor license for the Inver Wood Golf Course new text end 22.14 new text begin that is located at 1850 70th Street and is owned by the city. The provisions of Minnesota new text end 22.15 new text begin Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under new text end 22.16 new text begin this section. The city of Inver Grove Heights is deemed the licensee under this section, new text end 22.17 new text begin and the provisions of Minnesota Statutes, sections new text end new text begin and new text end new text begin , apply to the new text end 22.18 new text begin license as if the establishment were a municipal liquor store. new text end 22.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the Inver Grove new text end 22.20 new text begin Heights City Council and compliance with Minnesota Statutes, section 645.021. new text end 22.21    Sec. 11. new text begin SPECIAL LICENSE; ST. CLOUD. new text end 22.22 new text begin Notwithstanding any law or ordinance to the contrary, the city of St. Cloud may new text end 22.23 new text begin issue an on-sale intoxicating liquor license for the Municipal Athletic Complex that is new text end 22.24 new text begin located at 5001 Veterans Drive and is owned by the city. The provisions of Minnesota new text end 22.25 new text begin Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under new text end 22.26 new text begin this section. The city of St. Cloud is deemed the licensee under this section, and the new text end 22.27 new text begin provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license new text end 22.28 new text begin as if the establishment were a municipal liquor store. new text end 22.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the St. Cloud City new text end 22.30 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 22.31    Sec. 12. new text begin SPECIAL LICENSE; BROOKLYN PARK. new text end 23.1 new text begin Notwithstanding any law or ordinance to the contrary, the city of Brooklyn Park new text end 23.2 new text begin may issue an on-sale intoxicating liquor license to a wedding event center that is located new text end 23.3 new text begin at 7324 Lakeland Avenue. The provisions of Minnesota Statutes, chapter 340A, not new text end 23.4 new text begin inconsistent with this section, apply to the license issued under this section. new text end 23.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the Brooklyn Park new text end 23.6 new text begin City Council and compliance with Minnesota Statutes, section 645.021. new text end 23.7    Sec. 13. new text begin POWDERED ALCOHOL POLICY STUDY. new text end 23.8 new text begin (a) No person shall manufacture, import, distribute, or sell powdered alcohol until new text end 23.9 new text begin June 1, 2016. new text end 23.10 new text begin (b) The director of the Division of Alcohol and Gambling Enforcement must prepare new text end 23.11 new text begin testimony for the commerce and regulatory reform committee, and any other relevant new text end 23.12 new text begin committee, about whether current laws could be adequately enforced with regard to the new text end 23.13 new text begin manufacture, importation, distribution, and sale of powdered alcohol. The director may new text end 23.14 new text begin make recommendations for legislation addressing any stated concerns. The testimony new text end 23.15 new text begin required under this paragraph is due by December 7, 2015. new text end 23.16 new text begin (c) The commissioner of health must prepare testimony for the Health and Human new text end 23.17 new text begin Services Reform Committee, and any other relevant committee, about the public health new text end 23.18 new text begin impact of powdered alcohol. The commissioner must address whether there is a potential new text end 23.19 new text begin for greater abuse of and addiction to powdered alcohol relative to malt liquor, wine, and new text end 23.20 new text begin distilled spirits. The commissioner may make recommendations for legislation addressing new text end 23.21 new text begin any stated concerns. The testimony required under this paragraph is due by December new text end 23.22 new text begin 7, 2015. new text end 23.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.24    Sec. 14. new text begin STATE FAIR; BREW PUB SALES. new text end 23.25 new text begin Notwithstanding Minnesota Statutes, section 340A.301, subdivision 6, paragraph new text end 23.26 new text begin (d), brew pubs may sell malt liquor to a single retail licensee of the State Agricultural new text end 23.27 new text begin Society for sales at a single location operated by the Minnesota Craft Brewers Guild new text end 23.28 new text begin during the annual fair, under Minnesota Statutes, section 37.21, subdivision 2, paragraph new text end 23.29 new text begin (b). Sales of malt liquor under this section may be made directly by the brew pub to the new text end 23.30 new text begin retail licensee or to a licensed wholesaler for distribution exclusively to the retail licensee. new text end