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HF 1326

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 05/20/2011 03:15pm

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

Current Version - 2nd Engrossment

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A bill for an act
relating to liquor; providing for microdistillery and brewer taproom licenses;
authorizing the issuance of certain temporary and on-sale municipal licenses;
making technical, clarifying, and other changes to certain license provisions;
authorizing issuance of on-sale and off-sales licenses by White Bear Township;
authorizing issuance of off-sale licenses by the City of Rochester; providing for
legislative review of community baseball alcohol issues; amending Minnesota
Statutes 2010, sections 340A.101, by adding subdivisions; 340A.301, subdivision
4, by adding subdivisions; 340A.4011, subdivision 2; 340A.404, subdivision 7,
by adding subdivisions; 340A.412, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 340A.101, is amended by adding a
subdivision to read:


new text begin Subd. 16a. new text end

new text begin Microdistillery. new text end

new text begin "Microdistillery" is a distillery operated within the state
producing premium, distilled spirits in total quantity not to exceed 40,000 proof gallons
in a calendar year.
new text end

Sec. 2.

Minnesota Statutes 2010, section 340A.101, is amended by adding a
subdivision to read:


new text begin Subd. 24a. new text end

new text begin Proof gallon. new text end

new text begin A "proof gallon" is one liquid gallon of distilled spirits
that is 50 percent alcohol at 60 degrees Fahrenheit.
new text end

Sec. 3.

Minnesota Statutes 2010, section 340A.301, subdivision 4, is amended to read:


Subd. 4.

Bond.

The commissioner may not issue a license under this section to a
person who has not filed a bond with corporate surety, or cash, or United States government
bonds payable to the state. The proof of financial responsibility must be approved by the
commissioner before the license is issued. The bond must be conditioned on the licensee
obeying all laws governing the business and paying when due all taxes, fees, penalties and
other charges, and must provide that it is forfeited to the state on a violation of law. This
subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315,
that is in existence as of January 1, 2010. Bonds must be in the following amounts:

Manufacturers and wholesalers of intoxicating
liquor except as provided in this subdivision
$
10,000
Manufacturers and wholesalers of wine up to
25 percent alcohol by weight
$
5,000
Manufacturers and wholesalers of beer of more
than 3.2 percent alcohol by weight
$
1,000
new text begin Manufacturers and wholesalers of fewer than
20,000 proof gallons
new text end
new text begin $
new text end
new text begin 2,000
new text end
new text begin Manufacturers and wholesalers of 20,000 to
40,000 proof gallons
new text end
new text begin $
new text end
new text begin 3,000
new text end

Sec. 4.

Minnesota Statutes 2010, section 340A.301, is amended by adding a
subdivision to read:


new text begin Subd. 6b. new text end

new text begin Brewer taproom license. new text end

new text begin (a) A municipality may issue the holder of
a brewer's license under subdivision 6, clause (c), (i), or (j), a brewer taproom license.
A brewer taproom license authorizes on-sale of malt liquor produced by the brewer for
consumption on the premises of or adjacent to one brewery location owned by the brewer.
Nothing in this subdivision precludes the holder of a brewer taproom license from also
holding a license to operate a restaurant at the brewery. Section 340A.409 shall apply to a
license issued under this subdivision. All provisions of this chapter that apply to a retail
liquor license shall apply to a license issued under this subdivision unless the provision is
explicitly inconsistent with this subdivision.
new text end

new text begin (b) A brewer may only have one taproom license under this subdivision, and may
not have an ownership interest in a brewery licensed under subdivision 6, clause (d).
new text end

new text begin (c) A municipality may not issue a brewer taproom license to a brewer if the brewer
seeking the license, or any person having an economic interest in the brewer seeking the
license or exercising control over the brewer seeking the license, is a brewer that brews
more than 250,000 barrels of malt liquor annually or a winery that produces more than
250,000 gallons of wine annually.
new text end

new text begin (d) The municipality shall impose a licensing fee on a brewer holding a brewer
taproom license under this subdivision, subject to limitations applicable to license fees
under section 340A.408, subdivision 2, paragraph (a).
new text end

new text begin (e) A municipality shall, within ten days of the issuance of a license under this
subdivision, inform the commissioner of the licensee's name and address and trade name,
and the effective date and expiration date of the license. The municipality shall also
inform the commissioner of a license transfer, cancellation, suspension, or revocation
during the license period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2010, section 340A.301, is amended by adding a
subdivision to read:


new text begin Subd. 6c. new text end

new text begin Microdistillery fee. new text end

new text begin The commissioner shall establish a fee for licensing
microdistilleries that adequately covers the cost of issuing the license and other inspection
requirements. The fees shall be deposited in an account in the special revenue fund and
are appropriated to the commissioner for the purposes of this subdivision.
new text end

Sec. 6.

Minnesota Statutes 2010, section 340A.4011, subdivision 2, is amended to read:


Subd. 2.

License not required.

(a) Notwithstanding section 340A.401, no license
under this chapter is required for a bed and breakfast facility to provide at no additional
charge to a person renting a room at the facility not more than two glasses per day each
containing not more than four fluid ounces of winenew text begin, or not more than one glass per day
containing not more than 12 ounces of Minnesota-produced beer
new text end. Wine new text beginor beer new text endso
furnished may be consumed only on the premises of the bed and breakfast facility.

(b) A bed and breakfast facility may furnish wine new text beginor beer new text endunder paragraph (a) only if
the facility is registered with the commissioner. Application for such registration must be
on a form the commissioner provides. The commissioner may revoke registration under
this paragraph for any violation of this chapter or a rule adopted under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2010, section 340A.404, is amended by adding a
subdivision to read:


new text begin Subd. 1b. new text end

new text begin Cities; auto racing facilities. new text end

new text begin A city may issue an on-sale intoxicating
liquor license to an auto racing facility located in the city. The license may authorize sales
both to persons attending any and all events at the facility, and sales in a restaurant, bar, or
banquet facility located on the premises of the auto racing facility. The license authorizes
sales on all days of the week. The license may be issued for a space that is not compact
and contiguous, provided that the licensed premises may include only the space within a
defined area as described in the application for the license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2010, section 340A.404, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Wine festival. new text end

new text begin A municipality with the approval of the commissioner may
issue a temporary license to a bona fide association of owners and operators of wineries
sponsoring an annual festival to showcase wines produced by members of the association.
The license issued under this subdivision authorizes the sale of table, sparkling, or fortified
wines produced by the wineries at on-sale by the glass, provided that no more than
two glasses per customer may be sold, and the dispensing of free samples of the wines
offered for sale within designated premises of the festival. A license issued under this
subdivision is subject to all laws and ordinances governing the sale, possession, and
consumption of table, sparkling, or fortified wines. For purposes of this subdivision, a
"bona fide association of owners and operators of wineries" means an association of
more than ten wineries that has been in existence for more than two years at the time
of application for the temporary license.
new text end

Sec. 9.

Minnesota Statutes 2010, section 340A.404, subdivision 7, is amended to read:


Subd. 7.

Airports commission.

On-sale licenses may be issued by the Metropolitan
Airports Commission for the sale of intoxicating liquor in major airports owned by
the Metropolitan Airports Commission and used as terminals for regularly scheduled
air passenger service.new text begin Notwithstanding any other law, the license authorized by this
subdivision may be issued for space that is not compact and contiguous.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2010, section 340A.404, is amended by adding a
subdivision to read:


new text begin Subd. 10a. new text end

new text begin Temporary on-sale licenses; farm winery. new text end

new text begin The governing body of a
municipality may issue to a farm winery licensed under section 340A.315 a temporary
license for the on-sale at a county fair located within the municipality of intoxicating
liquor produced by the farm winery. The licenses are subject to the terms, including a
license fee, imposed by the issuing municipality and all laws and ordinances governing
the sale of intoxicating liquor not inconsistent with this section. Licenses under this
subdivision are not valid unless first approved by the commissioner of public safety.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2010, section 340A.404, is amended by adding a
subdivision to read:


new text begin Subd. 14. new text end

new text begin Private college. new text end

new text begin Notwithstanding any other law, local ordinance, or
charter provision, the governing body of a municipality may issue an on-sale intoxicating
liquor license to a private, nonprofit college located within the municipality, or to any
entity holding a caterer's permit and a contract with the private, nonprofit college for
catering on the premises of the private, nonprofit college, or for any portion of the
premises as described in the approved license application. The license authorized by this
subdivision may be issued for space that is not compact and contiguous, provided that
all such space is included in the description of the licensed premises on the approved
license application. The license authorizes sales on all days of the week to persons
attending events at the private, nonprofit college. All other provisions of this chapter not
inconsistent with this section apply to the license authorized under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2010, section 340A.412, subdivision 4, is amended to read:


Subd. 4.

Licenses prohibited in certain areas.

(a) No license to sell intoxicating
liquor may be issued within the following areas:

(1) where restricted against commercial use through zoning ordinances and other
proceedings or legal processes regularly had for that purpose, except licenses may be
issued to restaurants in areas which were restricted against commercial uses after the
establishment of the restaurant;

(2) within the Capitol or on the Capitol grounds, except as provided under Laws
1983, chapter 259, section 9, or Laws 1999, chapter 202, section 13;

(3) on the State Fairgrounds, except as provided under section 37.21, subdivision 2;

(4) on the campus of the College of Agriculture of the University of Minnesota;

(5) within 1,000 feet of a state hospital, training school, reformatory, prison, or other
institution under the supervision or control, in whole or in part, of the commissioner of
human services or the commissioner of corrections;

(6) in a town or municipality in which a majority of votes at the last election at which
the question of license was voted upon were not in favor of license under section 340A.416,
or within one-half mile of any such town or municipality, except that intoxicating liquor
manufactured within this radius may be sold to be consumed outside it;new text begin and
new text end

deleted text begin (7) within 1,500 feet of a state university, except that:
deleted text end

deleted text begin (i) the minimum distance in the case of Winona and Southwest State University is
1,200 feet, measured by a direct line from the nearest corner of the administration building
to the main entrance of the licensed establishment;
deleted text end

deleted text begin (ii) within 1,500 feet of St. Cloud State University one on-sale wine and two off-sale
intoxicating liquor licenses may be issued, measured by a direct line from the nearest
corner of the administration building to the main entrance of the licensed establishment;
deleted text end

deleted text begin (iii) at Mankato State University the distance is measured from the front door of
the student union of the Highland campus;
deleted text end

deleted text begin (iv) a temporary license under section 340A.404, subdivision 10, may be issued to
a location on the grounds of a state university for an event sponsored or approved by
the state university; and
deleted text end

deleted text begin (v) this restriction does not apply to the area surrounding the premises of
Metropolitan State University in Minneapolis; and
deleted text end

deleted text begin (8)deleted text endnew text begin (7)new text end within 1,500 feet of any public school that is not within a city.

(b) The restrictions of this subdivision do not apply to a manufacturer or wholesaler
of intoxicating liquor or to a drugstore or to a person who had a license originally issued
lawfully prior to July 1, 1967.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text beginWHITE BEAR TOWNSHIP; AUTHORITY TO ISSUE LICENSES.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, White Bear Township may
issue on-sale and off-sale liquor licenses for establishments within its jurisdiction.
Only establishments eligible for a license under authority granted to Ramsey County
by Minnesota Statutes, chapter 340A, may be issued a license under this section. All
provisions of Minnesota Statutes, chapter 340, not inconsistent with this section shall
apply to the licenses authorized under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14. new text beginCHANGE IN STATUS; GRANDFATHER PROVISION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.413, subdivision 5, the city of
Rochester may issue 26 off-sale liquor licenses.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text beginCOMMUNITY BASEBALL ALCOHOL ISSUES REVIEW.
new text end

new text begin The legislative committees with jurisdiction over alcohol regulation shall consider
and examine issues surrounding the provision of alcohol to amateur, town league,
semiprofessional, and other forms of community baseball.
new text end

Sec. 16. new text beginEFFECTIVE DATE; SUMMER COLLEGIATE BASEBALL
LICENSES.
new text end

new text begin Laws 2011, chapter 16, is effective April 20, 2011.
new text end