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SF 1919

as introduced - 89th Legislature (2015 - 2016) Posted on 10/02/2015 02:00pm

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

Current Version - as introduced

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A bill for an act
relating to liquor; allowing growlers to be sold at off-sale on Sundays; requiring
a report to the commissioner of revenue; amending Minnesota Statutes 2014,
section 340A.301, subdivisions 6d, 7.

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

Section 1.

Minnesota Statutes 2014, section 340A.301, subdivision 6d, is amended to
read:


Subd. 6d.

Small brewer license.

(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 storesnew text begin , except that malt liquor in growlers only may be sold
at off-sale on Sundays. Sunday sales must be approved by the licensing jurisdiction and
hours may be established by those jurisdictions. Growlers sold on Sundays must be filled at
the time of sale
new text end . 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.

(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).

(c) A brewer may only have one license under this subdivision.

(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.

(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).

new text begin (f) A brewer shall file a quarterly report with the commissioner of revenue specifying
the total amount of malt liquor sold at off-sale.
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. 2.

Minnesota Statutes 2014, 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 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 storesnew text begin , except that malt liquor in
growlers only may be sold at off-sale on Sundays. Sunday sales must be approved by the
licensing jurisdiction and hours may be established by those jurisdictions. Growlers sold
on Sundays must be filled at the time of sale
new text end . 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. new text begin A brewer shall
file a quarterly report with the commissioner of revenue specifying the total amount of malt
liquor sold at off-sale.
new text end 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.

new text begin EFFECTIVE DATE. new text end

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