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HF 1198

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 02:22pm

KEY: stricken = removed, old language. underscored = added, new language.

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1.1A bill for an act
1.2relating to liquor; allowing certain brewers with production over 3,500 barrels to
1.3sell growlers at off-sale;amending Minnesota Statutes 2012, section 340A.301,
1.4subdivision 7, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 340A.301, is amended by adding a
1.7subdivision to read:
1.8    Subd. 6d. Brewer off-sale license. (a) A municipality, with the approval of the
1.9commissioner, may issue the holder of a brewer's license under subdivision 6, clause (c),
1.10(i), or (j), a brewer off-sale license. A brewer off-sale license authorizes the off-sale of
1.11malt liquor produced and packaged by the brewer in an amount not to exceed 500 barrels
1.12annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive
1.13liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold
1.14off-sale must be removed from the premises before the applicable off-sale closing time at
1.15exclusive liquor stores. The malt liquor shall be packed in 64-ounce containers commonly
1.16known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear
1.17a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic
1.18adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over
1.19the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken
1.20upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the
1.21name and address of the brewer. The containers or bottles shall be identified as malt
1.22liquor, contain the name of the malt liquor, bear the name and address of the brewer selling
1.23the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is
1.24labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.
2.1(b) A brewer may only have one brewer off-sale license under this subdivision.
2.2(c) A municipality may not issue a brewer off-sale license to a brewer if the brewer
2.3seeking the license, or any person having an economic interest in the brewer seeking the
2.4license or exercising control over the brewer seeking the license, is a brewer that brews
2.5more than 250,000 barrels of malt liquor annually or a winery that produces more than
2.6250,000 gallons of wine annually.
2.7(d) The municipality shall impose a licensing fee on a brewer holding a brewer
2.8off-sale license under this subdivision, subject to limitations applicable to license fees
2.9under section 340A.408, subdivision 3, paragraph (a).

2.10    Sec. 2. Minnesota Statutes 2012, section 340A.301, subdivision 7, is amended to read:
2.11    Subd. 7. Interest in other business. (a) Except as provided in this subdivision,
2.12a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have
2.13any ownership, in whole or in part, in a business holding a retail intoxicating liquor or
2.143.2 percent malt liquor license. The commissioner may not issue a license under this
2.15section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating
2.16liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler.
2.17A manufacturer or wholesaler of intoxicating liquor may use or have property rented
2.18for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the
2.19property continuously since November 1, 1933. A retailer of intoxicating liquor may not
2.20use or have property rented for the manufacture or wholesaling of intoxicating liquor.
2.21    (b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale
2.22intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant
2.23operated in the place of manufacture. Notwithstanding section 340A.405, a brewer
2.24who holds an on-sale license issued pursuant to this paragraph or a brewer who
2.25manufactures fewer than 3,500 barrels of malt liquor in a year may, with the approval
2.26of the commissioner, be issued a license by a municipality for off-sale of malt liquor
2.27produced and packaged on the licensed premises. Off-sale of malt liquor shall be limited
2.28to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the
2.29brewer is located, and the malt liquor sold off-sale must be removed from the premises
2.30before the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall
2.31be packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter
2.32bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At
2.33the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the
2.34container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug
2.35forming a seal that must be broken upon opening of the container or bottle. The adhesive
3.1band, strip, or sleeve shall bear the name and address of the brewer. The containers or
3.2bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name
3.3and address of the brewer selling the malt liquor, and shall be considered intoxicating
3.4liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions
3.5of Minnesota Rules, part 7515.1100. A brewer's total retail sales at on- or off-sale under
3.6this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total
3.7more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have
3.8an interest in other retail on-sale licenses, but may not have an ownership interest in whole
3.9or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer,
3.10importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by
3.11management, direction, or control. Notwithstanding this prohibition, a brewer licensed
3.12under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer
3.13licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:
3.14    (i) manufacture licensed under subdivision 6, clause (d);
3.15    (ii) manufacture in another state for consumption exclusively in a restaurant located
3.16in the place of manufacture; or
3.17    (iii) manufacture in another state for consumption primarily in a restaurant located
3.18in or immediately adjacent to the place of manufacture if the brewer was licensed under
3.19subdivision 6, clause (d), on January 1, 1995.
3.20    (c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or
3.21importer may have any interest, in whole or in part, directly or indirectly, in the license,
3.22business, assets, or corporate stock of a licensed malt liquor wholesaler.

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