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Office of the Revisor of Statutes

SF 373

as introduced - 89th Legislature (2015 - 2016) Posted on 08/18/2015 02:02pm

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

Current Version - as introduced

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A bill for an act
relating to legislative enactments; recodifying certain liquor statutes relating
to brewers and other providers of alcoholic beverages; providing definitions;
making technical and conforming changes; amending Minnesota Statutes 2014,
sections 340A.101, by adding a subdivision; 340A.22; 340A.301; proposing
coding for new law in Minnesota Statutes, chapter 340A.

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

Section 1.

Minnesota Statutes 2014, section 340A.101, is amended by adding a
subdivision to read:


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
on-sale licenses and who manufactures 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 section 340A.24, subdivision 2.
new text end

Sec. 2.

Minnesota Statutes 2014, section 340A.22, is amended to read:


340A.22 MICRODISTILLERIES.

Subdivision 1.

Activities.

(a) A microdistillery licensed under deleted text beginsection 340A.301,
subdivision 6c,
deleted text endnew text begin this chapternew text end may provide on its premises samples of distilled spirits
manufactured on its premises, in an amount not to exceed 15 milliliters per variety per
person. No more than 45 milliliters may be sampled under this paragraph by any person
on any day.

(b) A microdistillery can sell cocktails to the public, pursuant to subdivision 2.

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a
municipal liquor store, may issue the holder of a microdistillery license under deleted text beginsection
340A.301, subdivision 6c,
deleted text endnew text begin this chapternew text end a microdistillery cocktail room license. A
microdistillery cocktail room license authorizes on-sale of distilled liquor produced by
the distiller for consumption on the premises of or adjacent to one distillery location
owned by the distiller. Nothing in this subdivision precludes the holder of a microdistillery
cocktail room license from also holding a license to operate a restaurant at the distillery.
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.

(b) A distiller may only have one cocktail room license under this subdivision,
and may not have an ownership interest in a distillery licensed under section 340A.301,
subdivision 6, paragraph (a).

(c) The municipality shall impose a licensing fee on a distiller holding a
microdistillery cocktail room license under this subdivision, subject to limitations
applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

(d) 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.

(e) No single entity may hold both a cocktail room and taproom license, and a
cocktail room and taproom may not be co-located.

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
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. All other
requirements of section 340A.301 apply to a license under this section.
new text end

Sec. 3.

new text begin [340A.24] BREW PUBS.
new text end

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
liquor or 3.2 percent malt liquor license by a municipality for a restaurant operated in
the place of manufacture.
new text end

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
holds an on-sale license issued pursuant to this section may, with the approval of the
commissioner, be issued a license by a municipality for off-sale of malt liquor produced
and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the legal
hours for off-sale at exclusive liquor stores in the jurisdiction in which the brew pub is
located, and the malt liquor sold off-sale must be removed from the premises before the
applicable off-sale closing time at exclusive liquor stores. Packaging of malt liquor for
off-sale under this subdivision must comply with section 340A.285.
new text end

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
this section may not exceed 3,500 barrels per year, provided that off-sales may not total
more than 500 barrels.
new text end

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
in other retail on-sale licenses, but may not have an ownership interest in whole or in
part, or be an officer, director, agent, or employee of, any other manufacturer, brewer,
importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by
management, direction, or control.
new text end

new text begin (b) Notwithstanding this prohibition, a brew pub may be an affiliate or subsidiary
company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture
of malt liquor is:
new text end

new text begin (1) manufacture licensed under section 340A.301, subdivision 6, clause (d);
new text end

new text begin (2) manufacture in another state for consumption exclusively in a restaurant located
in the place of manufacture; or
new text end

new text begin (3) manufacture in another state for consumption primarily in a restaurant located
in or immediately adjacent to the place of manufacture if the brewer was licensed under
section 340A.301, subdivision 6, clause (d), on January 1, 1995.
new text end

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
as an importer under section 340A.302.
new text end

Sec. 4.

new text begin [340A.26] BREWER TAPROOMS.
new text end

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
municipal liquor store, may issue the holder of a brewer's license under section 340A.301,
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 brew pub.
new text end

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
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 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
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 Subd. 4. new text end

new text begin Municipality to inform commissioner. new text end

new text begin 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 Subd. 5. new text end

new text begin Sunday on-sale. new text end

new text begin Notwithstanding section 340A.504, subdivision 3, a
taproom may be open and may conduct on-sale business on Sundays if authorized by the
municipality.
new text end

Sec. 5.

new text begin [340A.28] SMALL BREWER OFF-SALE.
new text end

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,
subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale
of malt liquor at its licensed premises that has been produced and packaged by the brewer.
The license must be approved by the commissioner. A brewer may only have one license
under this subdivision. The amount of malt liquor sold at off-sale may not exceed 500
barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at
exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt
liquor sold off-sale must be removed from the premises before the applicable off-sale
closing time at exclusive liquor stores. Packaging of malt liquor for off-sale under this
subdivision must comply with section 340A.285.
new text end

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
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 20,000 barrels of its own brands of malt liquor annually or a
winery that produces more than 250,000 gallons of wine annually.
new text end

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
license under this subdivision, subject to limitations applicable to license fees under
section 340A.408, subdivision 3, paragraph (a).
new text end

Sec. 6.

new text begin [340A.285] GROWLERS.
new text end

new text begin (a) Malt liquor authorized for off-sale pursuant to section 340A.24 or 340A.28
shall be packaged in 64-ounce containers commonly known as "growlers" or in 750
milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper,
or plug. At the time of sale, a paper or plastic adhesive band, strip, or sleeve shall be
applied to the container or bottle and extended over the top of the twist-type closure, cork,
stopper, or plug forming a seal that must be broken upon opening the container or bottle.
The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The
containers or bottles shall be identified as malt liquor, contain the name of the malt liquor,
bear the name and address of the brew pub or brewer selling the malt liquor, and shall
be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in
accordance with the provisions of Minnesota Rules, part 7515.1100.
new text end

new text begin (b) A brew pub or brewer may, but is not required to, refill any container or bottle
with malt liquor for off-sale at the request of the customer. A brew pub or brewer refilling
a container or bottle must do so at its licensed premises and the container or bottle must be
filled at the tap at the time of sale. A container or bottle refilled under this paragraph must
be sealed and labeled in the manner described in paragraph (a).
new text end

Sec. 7.

Minnesota Statutes 2014, section 340A.301, is amended to read:


340A.301 MANUFACTURERSnew text begin, BREWERS,new text end AND WHOLESALERS
LICENSES.

Subdivision 1.

Licenses required.

No person may directly or indirectly manufacture
or sell at wholesale intoxicating liquor, or 3.2 percent malt liquor without obtaining an
appropriate license from the commissioner, except where otherwise provided in this
chapter. A manufacturer's license includes the right to import. A licensed brewer may sell
the brewer's products at wholesale only if the brewer has been issued a wholesaler's license.
The commissioner shall issue a wholesaler's license to a brewer only if (1) the commissioner
determines that the brewer was selling the brewer's own products at wholesale in
Minnesota on January 1, 1991, or (2) the brewer has acquired a wholesaler's business or
assets under subdivision 7a, paragraph (c) or (d). A licensed wholesaler of intoxicating
malt liquor may sell 3.2 percent malt liquor at wholesale without an additional license.

Subd. 2.

Persons eligible.

(a) Licenses under this section may be issued only to
a person who:

(1) is of good moral character and repute;

(2) is 21 years of age or older;

(3) has not had a license issued under this chapter revoked within five years of the
date of license application, or to any person who at the time of the violation owns any
interest, whether as a holder of more than five percent of the capital stock of a corporation
licensee, as a partner or otherwise, in the premises or in the business conducted thereon,
or to a corporation, partnership, association, enterprise, business, or firm in which any
such person is in any manner interested; and

(4) has not been convicted within five years of the date of license application of a
felony, or of a willful violation of a federal or state law, or local ordinance governing
the manufacture, sale, distribution, or possession for sale or distribution of alcoholic
beverages. The Alcohol and Gambling Enforcement Division may require that fingerprints
be taken and may forward the fingerprints to the Federal Bureau of Investigation for
purposes of a criminal history check.

(b) In order to determine if an individual has a felony or willful violation of federal
or state law governing the manufacture, sale, distribution, or possession for sale or
distribution of an alcoholic beverage, the applicant for a license to manufacture or sell
at wholesale must provide the commissioner with their signed, written informed consent
to conduct a background check. The commissioner may query the Minnesota criminal
history repository for records on the applicant. If the commissioner conducts a national
criminal history record check, the commissioner must obtain fingerprints from the
applicant and forward them and the required fee to the superintendent of the Bureau
of Criminal Apprehension. The superintendent may exchange the fingerprints with the
Federal Bureau of Investigation for purposes of obtaining the applicant's national criminal
history record information. The superintendent shall return the results of the national
criminal history records check to the commissioner for the purpose of determining if the
applicant is qualified to receive a license.

Subd. 3.

Application.

An application for a license under this section must be made
to the commissioner on a form the commissioner prescribes and must be accompanied by
the fee specified in subdivision 6. If an application is denied, $100 of the amount of any fee
exceeding that amount shall be retained by the commissioner to cover costs of investigation.

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
Manufacturers and wholesalers of fewer than
20,000 proof gallons
$
2,000
Manufacturers and wholesalers of 20,000 to
40,000 proof gallons
$
3,000

Subd. 5.

Period of license.

Licenses issued under this section are valid for one year
except that to coordinate expiration dates initial licenses may be issued for a shorter period.

Subd. 6.

Fees.

The annual fees for licenses under this section are as follows:

(a)
Manufacturers (except as provided in clauses (b)
and (c))
$
30,000
Duplicates
$
3,000
(b)
Manufacturers of wines of not more than 25 percent
alcohol by volume
$
500
(c)
Brewers who manufacture more than 3,500 barrels
of malt liquor in a year
$
4,000
(d)
deleted text begin 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
deleted text endnew text beginBrew pubsnew text end.
A deleted text beginbrewerdeleted text endnew text beginbrew pubnew text end licensed under this clause must
obtain a separate license for each licensed premises
where the deleted text beginbrewer brewsdeleted text endnew text begin brew pub producesnew text end malt
liquor. deleted text beginA brewer licensed under this clause may not
be licensed as an importer under this chapter
deleted text end
$
500
(e)
Wholesalers (except as provided in clauses (f), (g),
and (h))
$
15,000
Duplicates
$
3,000
(f)
Wholesalers of wines of not more than 25 percent
alcohol by volume
$
3,750
(g)
Wholesalers of intoxicating malt liquor
$
1,000
Duplicates
$
25
(h)
Wholesalers of 3.2 percent malt liquor
$
10
(i)
Brewers who manufacture fewer than 2,000 barrels
of malt liquor in a year
$
150
(j)
Brewers who manufacture 2,000 to 3,500 barrels
of malt liquor in a year
$
500

If a business licensed under this section is destroyed, or damaged to the extent that
it cannot be carried on, or if it ceases because of the death or illness of the licensee, the
commissioner may refund the license fee for the balance of the license period to the
licensee or to the licensee's estate.

Subd. 6a.

Permits and new text beginidentification cards; new text endfees.

Any person engaged in the
purchase, sale, or use for any purpose other than personal consumption of intoxicating
alcoholic beverages or ethyl alcohol shall obtain the appropriate regulatory permit and
identification card from the commissioner as provided in this subdivision. The fee for each
permit, other than one issued to a state or federal agency, is $35 and must be submitted
together with the appropriate application form provided by the commissioner. Identification
cards and permits must be issued for a period coinciding with that of the appropriate state
or municipal license and are not transferable. In instances where there is no annual license
period, cards and permits expire one year after the date of issuance. The authority to
engage in the purchase, sale, or use granted by the card or permit may be revoked by the
commissioner upon evidence of a violation by the holder of such a card or permit of any
of the provisions of chapter 340A or any rule of the commissioner made pursuant to law.

deleted text begin Subd. 6b. deleted text end

deleted text begin Brewer taproom license. deleted text end

deleted text begin (a) A municipality, including a city with a
municipal liquor store, 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.
deleted text end

deleted 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).
deleted text end

deleted 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.
deleted text end

deleted 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).
deleted text end

deleted 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.
deleted text end

deleted text begin (f) Notwithstanding section 340A.504, subdivision 3, a taproom may be open and
may conduct on-sale business on Sundays if authorized by the municipality.
deleted text end

deleted text begin Subd. 6c. deleted text end

deleted text begin Microdistilleries. deleted text end

deleted 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.
deleted text end

deleted text begin Subd. 6d. deleted text end

deleted text begin Small brewer license. deleted text end

deleted text begin (a) A brewer licensed under subdivision 6, clause
(c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its
licensed premises that has been produced and packaged by the brewer. The license must be
approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed
500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at
exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor
sold off-sale must be removed from the premises before the applicable off-sale closing
time at exclusive liquor stores. The malt liquor shall be packed in 64-ounce containers
commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall
bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic
adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over
the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken
upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the
name and address of the brewer. The containers or bottles shall be identified as malt
liquor, contain the name of the malt liquor, bear the name and address of the brewer selling
the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is
labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.
deleted text end

deleted text begin (b) A brewer may, but is not required to, refill any growler with malt liquor for
off-sale at the request of a customer. A brewer refilling a growler must do so at its licensed
premises and the growler must be filled at the tap at the time of sale. A growler refilled
under this paragraph must be sealed and labeled in the manner described in paragraph (a).
deleted text end

deleted text begin (c) A brewer may only have one license under this subdivision.
deleted text end

deleted text begin (d) A municipality may not issue a license under this subdivision 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 20,000 barrels of its own brands of malt liquor annually or a winery
that produces more than 250,000 gallons of wine annually.
deleted text end

deleted text begin (e) The municipality shall impose a licensing fee on a brewer holding a license
under this subdivision, subject to limitations applicable to license fees under section
340A.408, subdivision 3, paragraph (a).
deleted text end

Subd. 7.

Interest in other business.

(a) Except as provided in this subdivision,
a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have
any ownership, in whole or in part, in a business holding a retail intoxicating liquor or
3.2 percent malt liquor license. The commissioner may not issue a license under this
section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating
liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler.
A manufacturer or wholesaler of intoxicating liquor may use or have property rented
for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the
property continuously since November 1, 1933. A retailer of intoxicating liquor may not
use or have property rented for the manufacture or wholesaling of intoxicating liquor.

deleted text begin (b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale
intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant
operated in the place of manufacture. Notwithstanding section 340A.405, a brewer who
holds an on-sale license issued pursuant to this paragraph may, with the approval of the
commissioner, be issued a license by a municipality for off-sale of malt liquor produced
and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the
legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer
is located, and the malt liquor sold off-sale must be removed from the premises before
the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall be
packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter
bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At
the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the
container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug
forming a seal that must be broken upon opening of the container or bottle. The adhesive
band, strip, or sleeve shall bear the name and address of the brewer. The containers or
bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name
and address of the brewer selling the malt liquor, and shall be considered intoxicating
liquor unless the alcoholic content is labeled as otherwise in accordance with the
provisions of Minnesota Rules, part 7515.1100. A brewer may, but is not required to, refill
any growler with malt liquor for off-sale at the request of a customer. A brewer refilling a
growler must do so at its licensed premises and the growler must be filled at the tap at the
time of sale. A growler refilled under this paragraph must be sealed and labeled in the
manner described in this paragraph. A brewer's total retail sales at on- or off-sale under
this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total
more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have
an interest in other retail on-sale licenses, but may not have an ownership interest in whole
or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer,
importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by
management, direction, or control. Notwithstanding this prohibition, a brewer licensed
under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer
licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:
deleted text end

deleted text begin (i) manufacture licensed under subdivision 6, clause (d);
deleted text end

deleted text begin (ii) manufacture in another state for consumption exclusively in a restaurant located
in the place of manufacture; or
deleted text end

deleted text begin (iii) manufacture in another state for consumption primarily in a restaurant located
in or immediately adjacent to the place of manufacture if the brewer was licensed under
subdivision 6, clause (d), on January 1, 1995.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end Except as provided in subdivision 7a, no brewer as defined in subdivision 7a
or importer may have any interest, in whole or in part, directly or indirectly, in the license,
business, assets, or corporate stock of a licensed malt liquor wholesaler.

Subd. 7a.

Permitted interests in wholesale business.

(a) A brewer may financially
assist a wholesaler of malt liquor through participation in a limited partnership in which
the brewer is the limited partner and the wholesaler is the general partner. A limited
partnership authorized in this paragraph may not exist for more than ten years from the
date of its creation, and may not, directly or indirectly, be recreated, renewed, or extended
beyond that date.

(b) A brewer may financially assist a malt liquor wholesaler and collateralize the
financing by taking a security interest in the inventory and assets, other than the corporate
stock, of the wholesaler. A financial agreement authorized by this paragraph may not be
in effect for more than ten years from the date of its creation and may not be directly or
indirectly extended or renewed.

(c) A brewer who, after creation of a financial agreement authorized by paragraph
(b), or after creation of a limited partnership authorized in paragraph (a), acquires legal
or equitable title to the wholesaler's business which was the subject of the agreement or
limited partnership, or to the business assets, must divest the business or its assets within
two years of the date of acquiring them. A malt liquor wholesaler whose business or
assets are acquired by a brewer as described in this paragraph may not enter into another
such financial agreement, or participate in another such limited partnership, for 20 years
from the date of the acquisition of the business or assets.

(d) A brewer may have an interest in the business, assets, or corporate stock of a
malt liquor wholesaler as a result of (1) a judgment against the wholesaler arising out of a
default by the wholesaler or (2) acquisition of title to the business, assets, or corporate
stock as a result of a written request of the wholesaler. A brewer may maintain ownership
of or an interest in the business, assets, or corporate stock under this paragraph for not
more than two years and only for the purpose of facilitating an orderly transfer of the
business to an owner not affiliated with the brewer.

(e) A brewer may continue to maintain an ownership interest in a malt liquor
wholesaler if it owned the interest on January 1, 1991.

(f) A brewer that was legally selling the brewer's own products at wholesale in
Minnesota on January 1, 1991, may continue to sell those products at wholesale in the
area where it was selling those products on that date.

(g) A brewer that manufactures no more than 20,000 barrels of malt liquor or its
metric equivalent in a calendar year may own or have an interest in a malt liquor wholesaler
that sells only the brewer's products, provided that a brewer that manufactures between
20,000 and 25,000 barrels in any calendar year shall be permitted to continue to own or
have an interest in a malt liquor wholesaler that sells only the brewer's products if: (1) that
malt liquor wholesaler distributes no more than 20,000 barrels per calendar year; and (2)
the brewer has not manufactured 25,000 barrels in any calendar year. Notwithstanding the
foregoing, a brewer that manufactured between 20,000 and 25,000 barrels in 2012 shall be
permitted to continue to own or have an interest in a malt liquor wholesaler that sells only
the brewer's products until that brewer manufactures 25,000 barrels in a calendar year.

(h) When the commissioner issues a license to a malt liquor wholesaler described in
paragraph (a) or (b), the commissioner may issue the license only to the entity which is
actually operating the wholesale business and may not issue the license to a brewer that is
a limited partner under paragraph (a) or providing financial assistance under paragraph (b)
unless the brewer has acquired a wholesaler's business or assets under paragraph (c) or (d).

(i) For purposes of this subdivision and subdivision 7, deleted text beginclause (c)deleted text endnew text begin paragraph (b)new text end,
"brewer" means:

(1) a holder of a license to manufacture malt liquor;

(2) an officer, director, agent, or employee of such a license holder; and

(3) an affiliate of such a license holder, regardless of whether the affiliation is
corporate or by management, direction, or control.

Subd. 8.

Sales without license.

A licensed brewernew text begin or brew pubnew text end may without an
additional license sell malt liquor to employees or retired former employees, in amounts
of not more than 768 fluid ounces in a week for off-premise consumption only. A collector
of commemorative bottles, those terms are as defined in section 297G.01, subdivisions 4
and 5, may sell them to another collector without a license. It is also lawful for a collector
of beer cans to sell unopened cans of a brand which has not been sold commercially for at
least two years to another collector without obtaining a license. The amount sold to any
one collector in any one month shall not exceed 768 fluid ounces. A licensed manufacturer
of wine containing not more than 25 percent alcohol by volume nor less than 51 percent
wine made from Minnesota-grown agricultural products may sell at on-sale or off-sale
wine made on the licensed premises without a further license.

Subd. 9.

Unlicensed manufacture.

(a) Nothing in this chapter requires a license for
the natural fermentation of fruit juices or brewing of beer in the home for family use.

(b) Naturally fermented fruit juices or beer made under this subdivision may be
removed from the premises where made for use at organized affairs, exhibitions, or
competitions, including, but not limited to, homemaker's contests, tastings, or judging.

(c) For purposes of this subdivision, "tastings" means an event where the general
public may sample unlicensed naturally fermented fruit juices or beer.

(d) Beverages produced pursuant to this subdivision may be sampled or used in
tastings provided that the beverage is made and transported in containers and equipment
that shall not allow the migration of toxic substances.

(e) Public notice meeting the requirements of this paragraph must be given in writing
or signage at any tasting. The notice shall include disclosure that the unlicensed naturally
fermented fruit juices or beer being offered is homemade and not subject to state inspection,
and may be consumed by persons over the age of 21 at their own risk. The notice must
include the name and address of the person who processed and bottled the beverage.

(f) Naturally fermented fruit juices or beer removed under this subdivision may not
be sold or offered for sale.

Sec. 8. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
in column A to the references listed in column B.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin 340A.301, subdivision 6a
new text end
new text begin 340A.301, subdivision 7
new text end
new text begin 340A.301, subdivision 7
new text end
new text begin 340A.301, subdivision 8
new text end
new text begin 340A.301, subdivision 7a
new text end
new text begin 340A.301, subdivision 9
new text end
new text begin 340A.301, subdivision 8
new text end
new text begin 340A.301, subdivision 10
new text end
new text begin 340A.301, subdivision 9
new text end
new text begin 340A.301, subdivision 11
new text end

new text begin (b) The revisor of statutes shall make all necessary cross-reference changes in
Minnesota Statutes and Minnesota Rules consistent with the amendments and renumbering
in this act.
new text end

Sec. 9. new text beginEFFECTIVE DATE.
new text end

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