SF 2064

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 03:53pm

A bill for an act
relating to liquor; permitting taprooms to offer limited sale of collaboration malt
liquor; modifying brewer off-sale requirements; requiring a study; amending
Minnesota Statutes 2018, sections 340A.101, by adding a subdivision; 340A.26,
subdivision 1; 340A.28, subdivision 2; 340A.285.

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

Section 1.

Minnesota Statutes 2018, section 340A.101, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Collaboration. new text end

new text begin "Collaboration" means malt liquor produced by two or more
brewers or brew pubs that have jointly engaged in the process of crafting, brewing,
promoting, or marketing the product. Malt liquor is still considered to be a collaboration
even if the commercial production of the malt liquor occurs on a single licensed premises.
new text end

Sec. 2.

Minnesota Statutes 2018, section 340A.26, subdivision 1, is amended to read:

Subdivision 1.

Brewer taproom license.

(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. new text begin In addition to malt liquor
produced by the brewer, the holder of a brewer taproom license may also sell collaboration
malt liquor so long as malt liquor produced by the brewer utilizes a minimum of 80 percent
of all draft lines. new text end 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.

(b) A brewer may only have one taproom license under this subdivision, and may not
have an ownership interest in a brew pub.

Sec. 3.

Minnesota Statutes 2018, section 340A.28, subdivision 2, is amended to read:

Subd. 2.

Prohibition.

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

Sec. 4.

Minnesota Statutes 2018, section 340A.285, is amended to read:

340A.285 deleted text begin GROWLERS deleted text end new text begin CONTAINERS new text end .

(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 deleted text begin 750 milliliter bottles deleted text end new text begin
any container sized between 350 milliliters and two liters new text end . The containers deleted text begin or bottles deleted text end 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 deleted text begin or bottle deleted text end 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 deleted text begin or bottle deleted text end . The adhesive band, strip, or sleeve shall bear the name
and address of the brewer. The containers deleted text begin or bottles deleted text end 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.

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

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. new text begin ECONOMIC IMPACT STUDY OF SURLY BILL.
new text end

new text begin The commissioner of employment and economic development shall conduct a study
that examines the economic development and job creation impacts of Laws 2011, chapter
55, section 4, commonly referred to as the "Surly Bill." The study must include an analysis
of trends in brewery establishment, brewery production levels, and employment and wage
levels in the brewing industry in this state. The commissioner must report the findings to
the chairs and ranking minority members of the legislative committees with jurisdiction
over alcohol policy by February 15, 2020.
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