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Minnesota Legislature

Office of the Revisor of Statutes

SF 1070

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - 3rd Engrossment

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A bill for an act
relating to liquor; modifying liquor regulations; authorizing intoxicating liquor
licenses; amending Minnesota Statutes 2006, sections 37.21, subdivisions 1,
2; 340A.301, subdivision 7; 340A.315, by adding a subdivision; 340A.404,
subdivision 4a; 340A.408, subdivision 3; 340A.412, subdivision 4; 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 2006, section 37.21, subdivision 1, is amended to read:


Subdivision 1.

Liquor prohibited.

No person may sell, barter, give away, or
otherwise dispose of or introduce, have, or keep for barter, gift, or sale, any intoxicating
liquors of any kind upon deleted text beginor within one-half mile ofdeleted text end the State Fairgrounds, or aid and abet
any of those acts. The presence and possession of any kind of these liquors, in any quantity,
upon the person or upon the premises leased or occupied by any person within these limits
is a public nuisance and is prima facie evidence of the purpose of the person to barter, give
away, or sell the liquor. Any person who violates this section is guilty of a misdemeanor.

Sec. 2.

Minnesota Statutes 2006, section 37.21, subdivision 2, is amended to read:


Subd. 2.

Exceptions.

Notwithstanding subdivision 1, the State Agricultural
Society may authorize, under terms and conditions it chooses, the sale, possession, and
consumption of intoxicating liquors at special events taking place on the fairgrounds at
times other than during the annual fair including, but not limited to, family reunions, class
reunions, weddings, conventions, and similar events. This section does not authorize
the society to issue retail licenses for the sale of alcoholic beverages.new text begin Notwithstanding
subdivision 1, the State Agricultural Society may also authorize, under terms and
conditions it chooses, consistent with state law, the sale, possession, and consumption
of intoxicating malt liquors during the annual fair or at other times of their choosing,
provided that at least one Minnesota brewed malt liquor is made available for sale at
each allowed location within the grounds.
new text end

Sec. 3.

Minnesota Statutes 2006, section 340A.301, subdivision 7, is amended to read:


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.

(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 or a brewer who
manufactures fewer than 3,500 barrels of malt liquor in a year 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 "growlersdeleted text begin.deleted text end"new text begin or in 750 milliliter
bottles.
new text end The containers new text beginor bottles new text endshall 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 new text beginor bottle new text endand extend over the top of the twist-type closure, cork, stopper,
or plug forming a seal that must be broken upon opening of the containernew text begin or bottlenew text end.
The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The
containers new text beginor bottles new text endshall 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'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:

(i) manufacture licensed under subdivision 6, clause (d);

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

(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.

(c) 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.

Sec. 4.

Minnesota Statutes 2006, section 340A.315, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin On-sale licenses allowed. new text end

new text begin Nothing in this section or in any other section
of law prevents a farm winery from obtaining a separate on-sale license and operating
a business establishment that utilizes that license, in conjunction with and within the
physical facilities of the winery and its buildings.
new text end

Sec. 5.

Minnesota Statutes 2006, section 340A.404, subdivision 4a, is amended to read:


Subd. 4a.

State-owned recreation; entertainment facilities.

Notwithstanding any
other law, local ordinance, or charter provision, the commissioner may issue on-sale
intoxicating liquor licenses:

(1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the town of White, St. Louis County;

(2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm; and

(3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium deleted text beginand in any intercollegiate football stadium constructed by the university on its
Minneapolis campus
deleted text endnew text begin, the intercollegiate football stadium, or at no more than seven other
locations within the boundaries of the University of Minnesota, provided that the Board of
Regents has approved an application for a license for the specified location
new text end.

The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.

Sec. 6.

Minnesota Statutes 2006, section 340A.408, subdivision 3, is amended to read:


Subd. 3.

Intoxicating liquor; off-sale.

(a) The annual license fee for an off-sale
intoxicating liquor license issued by a city, when combined with any occupation tax
imposed by the city, may not exceed the following limits:

(1) deleted text begin$1,000deleted text endnew text begin $1,500new text end for cities of the first class;

new text begin (2) $560 for cities over 10,000 population located outside of the seven-county
metropolitan area other than cities of the first class;
new text end

deleted text begin (2) $200deleted text endnew text begin (3) $380new text end for cities over 10,000 new text beginpopulation new text endother than cities of the first classnew text begin
or cities described in clause (2)
new text end;

deleted text begin (3) $150deleted text endnew text begin (4) $310new text end for cities of between 5,000 and 10,000 population; and

deleted text begin (4) $100deleted text endnew text begin (5) $240new text end for cities with less than 5,000 population.

(b) The annual license fee for an off-sale intoxicating liquor license issued by a
county or town shall not exceed deleted text begin$500deleted text endnew text begin $800new text end.

new text begin (c) The fee set by the jurisdiction issuing the license shall be reduced by $100 if
the following conditions are met:
new text end

new text begin (1) the licensee agrees to have a private vendor train all employees within 60 days
of hire and annually thereafter in laws pertaining to the sale of alcohol, the rules for
identification checks, and the responsibilities of establishments serving intoxicating
liquors;
new text end

new text begin (2) the licensee agrees to post a policy requiring identification checks for all persons
appearing to be 30 years old or less; and
new text end

new text begin (3) a cash award and incentive program is established by the licensee, to award
employees who catch underage drinkers, and a penalty program is established to punish
employees in the event of a failed compliance check.
new text end

new text begin (d) Population for purposes of this subdivision shall be as determined by the state
demographer.
new text end

Sec. 7.

Minnesota Statutes 2006, 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 deleted text beginor at any place in a city of the first class within one-half
mile of the fairgrounds, except as otherwise provided by charter
deleted text end;

(4) on the campus of the College of Agriculture of the University of Minnesota deleted text beginor at
any place in a city of the first class within one-half mile of the campus, provided that a city
may issue one on-sale wine license and one off-sale intoxicating liquor license in this area
that is not included in the area described in clause (3), except as provided by charter;
deleted text end

deleted text begin (5)deleted text end 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;

deleted text begin (6)deleted text endnew text begin (5)new text end 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;

deleted text begin (7) at any place on the east side of the Mississippi River within one-tenth of a mile
of the main building of the University of Minnesota unless (i) the licensed establishment
is on property owned or operated by a nonprofit corporation organized prior to January
1, 1940, for and by former students of the University of Minnesota, or (ii) the licensed
premises is Northrop Auditorium;
deleted text end

deleted text begin (8)deleted text endnew text begin (6)new text end within 1,500 feet of a state university, except that:

(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;

(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;

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

(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

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

deleted text begin (9)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.

Sec. 8.

new text begin [340A.707] AUCTION OR RAFFLE FOR CHARITABLE PURPOSES.
new text end

new text begin Notwithstanding sections 340A.401, 340A.414, and 340A.505, a nonprofit
organization conducting a silent auction, raffle, or other fund raising event may conduct
live, on premises auctions or raffles of wine, beer, or intoxicating liquors, provided that
funds from the auction or raffle are dedicated to the charitable purposes of the nonprofit
organization, such auctions or raffles are limited to not more than six occasions per year,
and the alcohol may only be auctioned or raffled to persons who demonstrate that they are
21 years of age or older and do not show signs of obvious intoxication. Nothing in this
section authorizes on premises consumption of alcohol.
new text end

Sec. 9. new text beginST. PAUL; LIQUOR LICENSE.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph
(a), or any other law, the city of St. Paul may issue an on-sale intoxicating liquor license
to a restaurant located at 374-378 Maria Avenue North. The provisions of Minnesota
Statutes, chapter 340A, apply to licenses issued under this section.
new text end