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SF 171

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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 conformity in
license fees and production levels for brewpubs and
small brewers; authorizing issuance of temporary
licenses to small brewers; authorizing off-sale of
growlers by small brewers; providing that the on-sale
license for Elko Speedway authorizes sales on all days
of the week; changing the issuer of a certain license
at the state fair; authorizing the city of Duluth to
issue a liquor license for Wade Municipal Stadium;
authorizing the city of St. Paul to issue a liquor
license for special events at the State Capitol;
amending Minnesota Statutes 2004, sections 340A.301,
subdivisions 6, 7; 340A.404, subdivision 10; Laws
2003, chapter 126, sections 28, 29; 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 2004, section 340A.301,
subdivision 6, is amended to read:


Subd. 6.

Fees.

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

(a) Manufacturers (except as provided
in clauses (b) and (c)) $15,000
Duplicates $ 3,000
(b) Manufacturers of wines of not more
than 25 percent alcohol by volume $ 500
(c) Brewers deleted text beginother than those described
in clauses (d) and (i)
deleted text endnew text beginwho
manufacture more than 3,500 barrels
of malt liquor in a year
new text end$ 2,500
(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, using only wort produced
in Minnesota, the entire
production of which is solely
for consumption on tap on the
licensed premises or for off-sale
from that licensed premises.
A brewer licensed
under this clause must obtain a separate
license for each licensed premises where
the brewer brews malt liquor. A brewer
licensed under this clause may not be
licensed as an importer under this chapter $ 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 $ 2,000
(g) Wholesalers of intoxicating
malt liquor $ 600
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
new text begin (j) Brewers who manufacture 2,000 to
3,500 barrels of malt liquor in a
year
new text endnew text begin$ new text endnew text begin500
new text end

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.

Sec. 2.

Minnesota Statutes 2004, 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 new text beginor a brewer who manufactures fewer than 3,500 barrels
of malt liquor in a year
new text endmay, 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."
The containers 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 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. The adhesive band, strip, or sleeve shall bear the
name and address of the brewer. The containers 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'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 50 percent of the brewer's production or 500
barrels, whichever is less. 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. 3.

Minnesota Statutes 2004, section 340A.404,
subdivision 10, is amended to read:


Subd. 10.

Temporary on-sale licenses.

new text begin(a) new text endThe governing
body of a municipality may issue to (1) a club or charitable,
religious, or other nonprofit organization in existence for at
least three years, (2) a political committee registered under
section 10A.14, or (3) a state university, a temporary license
for the on-sale of intoxicating liquor in connection with a
social event within the municipality sponsored by the licensee.
The license may authorize the on-sale of intoxicating liquor for
not more than four consecutive days, and may authorize on-sales
on premises other than premises the licensee owns or permanently
occupies. The license may provide that the licensee may
contract for intoxicating liquor catering services with the
holder of a full-year on-sale intoxicating liquor license issued
by any municipality. The licenses are subject to the terms,
including a license fee, imposed by the issuing municipality.
Licenses issued under this subdivision are subject to all laws
and ordinances governing the sale of intoxicating liquor except
sections 340A.409 and 340A.504, subdivision 3, paragraph (d),
and those laws and ordinances which by their nature are not
applicable. Licenses under this subdivision are not valid
unless first approved by the commissioner of public safety.

new text begin (b) new text endA county under this section may issue a temporary
license only to a premises located in the unincorporated or
unorganized territory of the county.

new text begin (c) The governing body of a municipality may issue to a
brewer who manufactures fewer than 3,500 barrels of malt liquor
in a year a temporary license for the on-sale of intoxicating
liquor in connection with a social event within the municipality
sponsored by the brewer. The terms and conditions specified for
temporary licenses under paragraph (a) shall apply to a license
issued under this paragraph, except that the requirements of
section 340A.409, subdivisions 1 to 3a, shall apply to the
license.
new text end

Sec. 4.

new text begin [340A.910] SEVERABILITY.
new text end

new text begin In the event that a court of competent jurisdiction holds
that any section of this chapter is unconstitutional or
otherwise invalid, the invalidity does not affect other
provisions or applications of this chapter that can be given
effect without the invalid provisions or application, and to
this end the provisions of this chapter are severable.
new text end

Sec. 5.

Laws 2003, chapter 126, section 28, is amended to
read:


Sec. 28new text beginELKO SPEEDWAY; ON-SALE LICENSE.
new text end

Notwithstanding Minnesota Statutes, section 340A.404,
subdivision 1, the city of Elko may issue an on-sale
intoxicating liquor license to the Elko Speedway in addition to
the number authorized by law. The license may authorize sales
only to persons attending racing events at the speedway. new text beginThe
license authorizes sales on all days of the week.
new text endAll
provisions of Minnesota Statutes, chapter 340A, not inconsistent
with this provision, apply to the license authorized under this
section. 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 the fenced grandstand area as
described in the approved license application.

Sec. 6.

Laws 2003, chapter 126, section 29, is amended to
read:


Sec. 29new text beginWINE LICENSES; STATE FAIR.
new text end

(a) Notwithstanding Minnesota Statutes, sections 37.21 and
340A.412, subdivision 4, paragraph (a), clause (3), deleted text beginthe city of
St. Paul
deleted text endnew text beginRamsey County new text endmay issue a license to the holder of a
state fair concessions contract with the state agricultural
society which authorizes the licensee to sell Minnesota-produced
wine by the glass at the state fair in connection with the sale
of food by the concessionaire. All provisions of Minnesota
Statutes, chapter 340A, not inconsistent herewith, apply to
licenses issued under this section.

(b) For purposes of this section "Minnesota-produced wine"
means wine produced by a farm winery licensed under Minnesota
Statutes, section 340A.315, and made from at least 75 percent
Minnesota-grown grapes, grape juice, other fruit bases, other
juices, and honey.

Sec. 7. new text beginWADE MUNICIPAL STADIUM; LIQUOR LICENSE.
new text end

new text begin Notwithstanding any other law to the contrary, the city of
Duluth may issue an on-sale wine and malt liquor license in
addition to the number authorized by law for the premises known
as Wade Municipal Stadium for use during baseball games and
other events sponsored by the Duluth Huskies. The license may
authorize the sale and consumption of wine and malt liquor in
the grandstand and dining areas of the stadium. The license
authorizes sales on all days of the week.
new text end

Sec. 8. new text beginCITY OF MINNEAPOLIS; LIQUOR LICENSE.
new text end

new text begin Notwithstanding any law, ordinance, or charter provision to
the contrary, the city of Minneapolis may issue an intoxicating
liquor license to an establishment located at 2200 Como Avenue
Southeast, which currently holds an on-sale wine license.
new text end

Sec. 9. new text beginSTATE CAPITOL CENTENNIAL EVENTS.
new text end

new text begin Notwithstanding any other law to the contrary, the city of
St. Paul may issue an on-sale wine and malt liquor license to
the Capitol 2005 Commission or Friends of the Minnesota State
Capitol for special events held in the State Capitol and on the
Capitol grounds relating to the centennial anniversary of the
Capitol building. The license authorized by this section is
valid until January 2, 2006. All provisions of Minnesota
Statutes, chapter 340A, not inconsistent with this section apply
to the license authorized by this section.
new text end

Sec. 10. new text beginEFFECTIVE DATE.
new text end

new text begin Section 1 is effective July 1, 2005. Sections 2 to 4, 6,
7, 8, and 9 are effective the day following final enactment.
Section 5 is effective on approval by the Elko City Council and
compliance with Minnesota Statutes, section 645.021.
new text end