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SF 2392

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 04/19/2012 12:37pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 2392
1.2A bill for an act
1.3relating to liquor; modifying liquor regulation; authorizing liquor licenses;
1.4amending Minnesota Statutes 2010, sections 340A.315, by adding a subdivision;
1.5340A.404, subdivision 4a; 340A.412, subdivision 14; 340A.419, subdivision
1.62; Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 5a;
1.7proposing coding for new law in Minnesota Statutes, chapter 340A.
1.8April 18, 2012
1.9The Honorable Michelle L. Fischbach
1.10President of the Senate
1.11The Honorable Kurt Zellers
1.12Speaker of the House of Representatives
1.13We, the undersigned conferees for S.F. No. 2392 report that we have agreed upon
1.14the items in dispute and recommend as follows:
1.15That the House recede from its amendment and that S.F. No. 2392 be further
1.16amended as follows:
1.17Delete everything after the enacting clause and insert:

1.18    "Section 1. Minnesota Statutes 2010, section 340A.315, is amended by adding a
1.19subdivision to read:
1.20    Subd. 8. Bulk wine. Farm wineries licensed under this section are permitted to
1.21purchase and use bulk wine, provided:
1.22(1) the quantity of bulk wine in any farm winery's annual production shall not exceed
1.23ten percent of that winery's annual production;
1.24(2) that bulk wine under section 340A.315, subdivision 4, shall be counted as a
1.25portion of the 49 percent of product that need not be Minnesota-grown and may be
1.26imported from outside Minnesota; and
1.27(3) that the bulk wine must be blended and not directly bottled.
1.28"Bulk wine," as used in this subdivision, means fermented juice from grapes, other
1.29fruit bases, or honey.
2.1EFFECTIVE DATE.This section is effective the day following final enactment.

2.2    Sec. 2. Minnesota Statutes 2010, section 340A.315, is amended by adding a
2.3subdivision to read:
2.4    Subd. 9. Agricultural land. A farm winery license must be issued for operation of
2.5a farm winery on agricultural land, operating under an agricultural classification, zone,
2.6or conditional use permit. Farm wineries with licenses issued prior to March 1, 2012,
2.7are exempt from this provision.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.

2.9    Sec. 3. Minnesota Statutes 2010, section 340A.404, subdivision 4a, is amended to read:
2.10    Subd. 4a. Publicly owned recreation; entertainment facilities. (a)
2.11Notwithstanding any other law, local ordinance, or charter provision, the commissioner
2.12may issue on-sale intoxicating liquor licenses:
2.13    (1) to the state agency administratively responsible for, or to an entity holding a
2.14concession or facility management contract with such agency for beverage sales at, the
2.15premises of any Giants Ridge Recreation Area building or recreational improvement area
2.16owned by the state in the city of Biwabik, St. Louis County;
2.17    (2) to the state agency administratively responsible for, or to an entity holding a
2.18concession or facility management contract with such agency for beverage sales at, the
2.19premises of any Ironworld Discovery Center building or facility owned by the state at
2.20Chisholm;
2.21    (3) to the Board of Regents of the University of Minnesota for events at Northrop
2.22Auditorium, the intercollegiate football stadium, or including any games played by the
2.23Minnesota Vikings at the stadium, and at no more than seven other locations within the
2.24boundaries of the University of Minnesota, provided that the Board of Regents has
2.25approved an application for a license for the specified location and provided that a license
2.26for an arena or an intercollegiate football stadium location is void unless it requires the
2.27sale or service of intoxicating liquor in a public portion consisting of at least one-third of
2.28the general seating of a stadium or arena meets the conditions of paragraph (b). It is solely
2.29within the discretion of the Board of Regents to choose the manner in which to carry out
2.30this condition these conditions consistent with the requirements of paragraph (b); and
2.31(4) to the Duluth Entertainment and Convention Center Authority for beverage
2.32sales on the premises of the Duluth Entertainment and Convention Center Arena during
2.33intercollegiate hockey games.
3.1    The commissioner shall charge a fee for licenses issued under this subdivision in an
3.2amount comparable to the fee for comparable licenses issued in surrounding cities.
3.3    (b) No alcoholic beverage may be sold or served at TCF Bank Stadium unless the
3.4Board of Regents holds an on-sale intoxicating liquor license for the stadium as provided
3.5in paragraph (a), clause (3), that provides for the sale of intoxicating liquor at a location in
3.6the stadium that is convenient to the general public attending an intercollegiate football
3.7game at the stadium. On-sale liquor sales to the general public must be available at that
3.8location through half-time of an intercollegiate football game at TCF Bank Stadium, and
3.9sales at the stadium must comply with section 340A.909.

3.10    Sec. 4. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 5a,
3.11is amended to read:
3.12    Subd. 5a. Wine festival. A municipality with the approval of the commissioner
3.13may issue a temporary license to a bona fide association of owners and operators of
3.14wineries sponsoring an annual festival to showcase wines produced by members of the
3.15association. The commissioner may only approve one temporary license in a calendar
3.16year for each qualified association under this subdivision. The license issued under this
3.17subdivision authorizes the sale of table, sparkling, or fortified wines produced by the
3.18wineries at on-sale by the glass, provided that no more than two glasses per customer may
3.19be sold, and off-sale by the bottle, provided that no more than six bottles in total per
3.20customer may be sold. The license also authorizes the dispensing of free samples of the
3.21wines offered for sale within designated premises of the festival. A license issued under
3.22this subdivision is subject to all laws and ordinances governing the sale, possession, and
3.23consumption of table, sparkling, or fortified wines. For purposes of this subdivision, a
3.24"bona fide association of owners and operators of wineries" means an association of
3.25more than ten wineries that has been in existence for more than two years at the time
3.26of application for the temporary license.
3.27EFFECTIVE DATE.This section is effective the day following final enactment.

3.28    Sec. 5. [340A.4042] WINE EDUCATOR; ON-SALE LICENSE.
3.29The commissioner may issue an on-sale license to a person meeting the requirements
3.30specified in sections 340A.402 and 340A.409, at an annual cost of $250 per license to a
3.31wine educator and $50 per permit for each employee of the wine educator that will be
3.32pouring wine, under the following conditions:
4.1(1) the license may be used to purchase wine at retail and serve wine for educational
4.2purposes in any part of the state, unless a political subdivision adopts an ordinance
4.3prohibiting wine education;
4.4(2) all events conducted pursuant to this license must be conducted through advance
4.5registration, and no walk-in access to the general public is permitted;
4.6(3) licensees must possess certification that is satisfactory to the commissioner,
4.7including, but not limited to, a certified specialist of wine or certified wine educator status
4.8as conferred by the Society of Wine Educators, a Wine and Spirits Education Trust
4.9Diploma, status as a certified sommelier, or the completion of a wine industry program at
4.10a technical college or culinary school. A wine educator must also complete Training for
4.11Intervention Procedures (TIPS) or other certified alcohol training programs and have a
4.12valid certificate on file with the commissioner;
4.13(4) a license holder shall not sell alcohol for off-premises consumption and no
4.14orders may be taken for future sales;
4.15(5) classes shall not be conducted at retail businesses that do not have a liquor
4.16license during business hours; and
4.17(6) prior to providing a class authorized under this section, the licensee shall notify
4.18the police chief of the city where the class will take place, if the event will take place
4.19within the corporate limits of a city. If the city has no police department, the licensee shall
4.20notify the city's clerk. If the class will take place outside the corporate limits of any city,
4.21the licensee shall notify the sheriff of the county where the class will take place.

4.22    Sec. 6. Minnesota Statutes 2010, section 340A.412, subdivision 14, is amended to read:
4.23    Subd. 14. Exclusive liquor stores. (a) Except as otherwise provided in this
4.24subdivision, an exclusive liquor store may sell only the following items:
4.25(1) alcoholic beverages;
4.26(2) tobacco products;
4.27(3) ice;
4.28(4) beverages, either liquid or powder, specifically designated for mixing with
4.29intoxicating liquor;
4.30(5) soft drinks;
4.31(6) liqueur-filled candies;
4.32(7) food products that contain more than one-half of one percent alcohol by volume;
4.33(8) cork extraction devices;
4.34(9) books and videos on the use of alcoholic beverages;
5.1(10) magazines and other publications published primarily for information and
5.2education on alcoholic beverages;
5.3(11) multiple-use bags designed to carry purchased items;
5.4(12) devices designed to ensure safe storage and monitoring of alcohol in the home,
5.5to prevent access by underage drinkers; and
5.6(13) home brewing equipment; and
5.7(14) clothing marked with the specific name, brand, or identifying logo of the
5.8exclusive liquor store, and bearing no other name, brand, or identifying logo.
5.9(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
5.10license may sell food for on-premise consumption when authorized by the municipality
5.11issuing the license.
5.12(c) An exclusive liquor store may offer live or recorded entertainment.
5.13EFFECTIVE DATE.This section is effective the day following final enactment.

5.14    Sec. 7. Minnesota Statutes 2010, section 340A.419, subdivision 2, is amended to read:
5.15    Subd. 2. Tastings. (a) Notwithstanding any other law, an exclusive liquor store may
5.16conduct a wine, malt liquor, or spirits tasting on the premises of a holder of an on-sale
5.17intoxicating liquor license that is not a temporary license or on the premises of a holder
5.18of a wine license under section 340A.404, subdivision 5, if the exclusive liquor store
5.19complies with this section.
5.20(b) No wine, malt liquor, or spirits authorized for use under this section may be sold
5.21for off-premises consumption. A participant in the tasting may fill out a form indicating
5.22preferences for wine, malt liquor, or spirits. The form may be held on the premises of the
5.23exclusive liquor store to assist the participant in making an off-sale purchase at a later date.
5.24(c) Notwithstanding any other law, an exclusive liquor store may purchase or
5.25otherwise obtain wine or spirits for a tasting conducted under this section from a
5.26wholesaler licensed to sell wine or spirits. The wholesaler may sell or give wine or spirits
5.27to an exclusive liquor store for a tasting conducted under this section and may provide
5.28personnel to assist in the tasting.
5.29(d) An exclusive liquor store that conducts a tasting under this section must use
5.30any fees collected from participants in the tasting only to defray the cost of conducting
5.31the tasting.
5.32    (e) Notwithstanding section 340A.409, subdivision 4, the premises on which a
5.33tasting is conducted must be insured as required by section 340A.409, subdivision 1.
6.1(f) Exclusive liquor stores may conduct classes for a fee and allow tastings in the
6.2conduct of those classes, provided that the amount served at a class is limited to the
6.3amount authorized under section 340A.4041.
6.4EFFECTIVE DATE.This section is effective the day following final enactment.

6.5    Sec. 8. WINNEBAGO EXEMPTION; OUT-OF-STATE CRAFT BREWER.
6.6Notwithstanding any law or ordinance to the contrary, an out-of-state brewer may
6.7import malt liquor for sale at retail on one day per calendar year, in the city of Winnebago,
6.8provided that the total production of malt liquor produced by the brewer in the prior
6.9calendar year was less than 5,000 barrels, and provided that the seller of the malt liquor
6.10holds an appropriate retail license. Malt liquor imported under this section must be
6.11registered in accordance with section 340A.311.
6.12EFFECTIVE DATE; SUNSET.This section is effective upon approval by the
6.13Winnebago City Council and compliance with Minnesota Statutes, section 645.021, and
6.14expires on December 31, 2012.

6.15    Sec. 9. ON-SALE LICENSE AUTHORIZED.
6.16Notwithstanding any law or ordinance to the contrary, in addition to the number of
6.17licenses authorized, the city of Moorhead may issue an on-sale intoxicating liquor license
6.18to the governing body of the Bluestem Center for the Arts for the premises known as the
6.19Bluestem Center for the Arts. The license shall authorize the dispensing of intoxicating
6.20liquor only to persons attending events on the licensed premises, and shall authorize
6.21consumption on the licensed premises only. The license may provide that the governing
6.22body of the Bluestem Center for the Arts may contract for intoxicating liquor catering
6.23service with the holder of an on-sale intoxicating liquor license issued by the city of
6.24Moorhead. The city council shall establish the fee for the license. All provisions of
6.25Minnesota Statutes, chapter 340A, governing alcoholic beverages not inconsistent with
6.26this law apply to the license.
6.27EFFECTIVE DATE.This section is effective upon approval by the Moorhead City
6.28Council and compliance with Minnesota Statutes, section 645.021.

6.29    Sec. 10. SPECIAL PROVISION; CITY OF MINNEAPOLIS.
6.30(a) The city of Minneapolis may extend any interim zoning, liquor licensing, or other
6.31approvals granted to Kick's Liquor Store, Inc., a Minnesota corporation currently licensed
6.32as an exclusive liquor store doing business as Broadway Liquor Outlet at 2201 West
7.1Broadway, where the building housing the business at its current location was damaged
7.2beyond reasonable repair by the 2011 tornado, to permit the ongoing interim operation of
7.3the business in a temporary structure at the current location prior to the relocation of the
7.4business to a permanent facility located across the street at 2200-2220 West Broadway, or
7.5as this property is or may be more fully described in the property records of Hennepin
7.6County, notwithstanding limitations of law, local ordinances, or charter provisions relating
7.7to zoning or liquor licensing.
7.8(b) The city of Minneapolis may grant, renew, or otherwise reissue the existing
7.9off-sale intoxicating liquor license to Kick's Liquor Store, Inc., doing business as
7.10Broadway Liquor Outlet, upon the relocation of the business to the permanent facility at
7.112200-2220 West Broadway or as this property is or may be more fully described in the
7.12property records of Hennepin County, notwithstanding limitations of law, local ordinances,
7.13or charter provisions relating to liquor licensing or contiguous zoning requirements.
7.14EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
7.15City Council and compliance with Minnesota Statutes, section 645.021.

7.16    Sec. 11. EXPIRATION.
7.17The changes in section 3 to Minnesota Statutes, section 340A.404, subdivision
7.184a, expire July 1, 2014.

7.19    Sec. 12. REVISOR'S INSTRUCTION.
7.20The revisor of statutes shall renumber Minnesota Statutes, section 340A.404,
7.21subdivision 5a, as Minnesota Statutes, section 340A.4175, and make any necessary
7.22cross-reference changes in Minnesota Statutes.
7.23EFFECTIVE DATE.This section is effective the day following final enactment."
7.24Delete the title and insert:
7.25"A bill for an act
7.26relating to liquor; modifying liquor regulation; authorizing liquor licenses;
7.27amending Minnesota Statutes 2010, sections 340A.315, by adding subdivisions;
7.28340A.404, subdivision 4a; 340A.412, subdivision 14; 340A.419, subdivision
7.292; Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 5a;
7.30proposing coding for new law in Minnesota Statutes, chapter 340A."
We request the adoption of this report and repassage of the bill.
Senate Conferees:
..... .....
Chris Gerlach Geoff Michel
..... .....
Dan D. Hall John Sterling Howe
.....
Roger J. Reinert
House Conferees:
..... .....
Joe Atkins Sarah Anderson
..... .....
Joe Hoppe Tim Sanders
.....
Leon Lillie