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SF 3008

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 07/27/2022 01:26pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to liquor; modifying provisions regulating the production and sale of
intoxicating liquor; modifying various licensing provisions; authorizing local
on-sale licenses; appropriating money; amending Minnesota Statutes 2020, sections
340A.101, subdivision 16, by adding a subdivision; 340A.22; 340A.28, subdivision
2; 340A.301, subdivision 8; 340A.307, subdivisions 1, 2, 4; 340A.404, subdivisions
1, 1a, 6, 10; 340A.410, subdivision 10; 340A.412, subdivision 14; proposing coding
for new law in Minnesota Statutes, chapter 340A.

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

ARTICLE 1

LIQUOR REGULATION

Section 1.

Minnesota Statutes 2020, section 340A.101, is amended by adding a subdivision
to read:


new text begin Subd. 9a. new text end

new text begin Distilled spirits manufacturer. new text end

new text begin "Distilled spirits manufacturer" means a
distillery operated within the state producing distilled spirits in a total quantity exceeding
the proof gallons limit for a microdistillery in a calendar year.
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 2020, section 340A.101, subdivision 16, is amended to read:


Subd. 16.

Malt liquor.

"Malt liquor" is any deleted text beginbeer, ale, or otherdeleted text end beverage made from malt
by fermentationnew text begin, or by the fermentation of malt substitutes, including rice, grain of any kind,
glucose, sugar, molasses, or other malt substitute that has not undergone distillation,
new text end and
deleted text begin containingdeleted text endnew text begin that containsnew text end not less than one-half of one percent alcohol by volume.new text begin "Beer"
means any beverage meeting the definition of malt liquor under this subdivision.
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. 3.

Minnesota Statutes 2020, section 340A.22, is amended to read:


340A.22 MICRODISTILLERIESnew text begin; DISTILLED SPIRIT MANUFACTURERSnew text end.

Subdivision 1.

Activities.

(a) A microdistillery licensed under this chapter may provide
on its premises samples of distilled spirits manufactured on its premises, in an amount not
to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled
under this paragraph by any person on any day.

(b) A microdistillerynew text begin or distilled spirits manufacturernew text end can sell cocktails to the public,
pursuant to subdivision 2.

(c) A microdistillerynew text begin or distilled spirits manufacturernew text end may not operate a cocktail room
under subdivision 2 or conduct sales at off-sale under subdivision 4 unless at least 50 percent
of the annual production of the licensee is processed and distilled on premises.

new text begin (d) For purposes of calculating annual production under paragraph (c), distilled spirits
that are bottled by the licensee under a contract bottling agreement with a third party are
excluded from the licensee's annual production if the:
new text end

new text begin (1) third-party contractor is an independent entity that is not owned or controlled by the
licensee;
new text end

new text begin (2) distilled spirits bottled under a third-party contract are not available for sale or
marketed by the licensee or the third party at any location licensed under subdivision 2 or
4; and
new text end

new text begin (3) distilled spirits bottled under a third-party contract are available for distribution by
wholesalers.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end Distilled spirits produced or in production prior to July 1, 2017, are not counted
as part of the calculations under paragraph (c).

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal
liquor store, may issue the holder of a microdistillery license new text beginor distilled spirits manufacturer
license
new text endunder this chapter a microdistillery new text beginor distilled spirits manufacturernew text end cocktail room
license. A microdistillery new text beginor distilled spirits manufacturer new text endcocktail room license authorizes
on-sale of distilled liquor produced by the distiller for consumption on the premises of or
adjacent to one distillery location owned by the distiller. Notwithstanding section 340A.504,
subdivision 3
, a cocktail room may be open and may conduct on-sale business on Sundays
if authorized by the municipality. Nothing in this subdivision precludes the holder of a
microdistillery new text beginor distilled spirits manufacturernew text end cocktail room license from also holding a
license to operate a restaurant at the distillery. 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 distiller may only have one cocktail room license under this subdivisiondeleted text begin, and may
not have an ownership interest in a distillery licensed under section 340A.301, subdivision
6, clause (a)
deleted text end.

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery
new text begin or distilled spirits manufacturernew text end cocktail room license under this subdivision, subject to
limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

(d) A municipality shall, within ten days of the issuance of a license under this
subdivision, inform the commissioner of the licensee's name and address and trade name,
and the effective date and expiration date of the license. The municipality shall also inform
the commissioner of a license transfer, cancellation, suspension, or revocation during the
license period.

(e) No single entity may hold both a cocktail room and taproom license, and a cocktail
room and taproom may not be colocated.

Subd. 3.

License; fee.

The commissioner shall establish a fee for licensing
microdistilleries that adequately covers the cost of issuing the license and other inspection
requirements. The fees shall be deposited in an account in the special revenue fund and are
appropriated to the commissioner for the purposes of this subdivision. All other requirements
of section 340A.301 apply to a license under this section.

Subd. 4.

Off-sale license.

new text begin(a) new text endA microdistillery may be issued a license by the local
licensing authority for off-sale of distilled spirits, with the approval of the commissioner.
The license may allow the sale of deleted text beginone 375 milliliter bottledeleted text endnew text begin up to a total of 750 millilitersnew text end per
customer per day of product manufactured on site, new text beginin any size container or combination of
containers approved under paragraph (b),
new text endsubject to the following requirements:

(1) off-sale hours of sale must conform to hours of sale for retail off-sale licensees in
the licensing municipality; and

(2) no brand may be sold at the microdistillery unless it is also available for distribution
by wholesalers.

new text begin (b) The commissioner may approve any standard fill as approved by the Alcohol and
Tobacco Tax and Trade Bureau.
new text end

new text begin (c) The commissioner may by rule establish reporting requirements for microdistilleries
making off-sales of distilled spirits under this subdivision to ensure compliance with the
750 milliliter limit in paragraph (a).
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. 4.

Minnesota Statutes 2020, 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
brewer that brews more than deleted text begin20,000deleted text endnew text begin 150,000new text end barrels of its own brands of malt liquor annually
or a winery that produces more than 250,000 gallons of wine annually.

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 [340A.29] OFF-SALE PACKAGING REQUIREMENTS FOR CERTAIN
SMALL BREWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Certain off-sale authorized. new text end

new text begin Notwithstanding any law to the contrary,
and in addition to the off-sale of malt liquor allowed under section 340A.28, a brewer
licensed under section 340A.301, subdivision 6, clause (c), (i), or (j), that produces 7,500
barrels or less of malt liquor annually may be issued a license by a municipality for off-sale
at its licensed premises of up to 128 ounces per customer per day of malt liquor that has
been produced and packaged by the brewer, as provided in subdivision 2. The license must
be approved by the commissioner. The amount of malt liquor sold at off-sale under this
section must be included in calculating the annual barrel limit imposed in section 340A.28,
subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Packaging. new text end

new text begin Malt liquor authorized for off-sale pursuant to subdivision 1 must
be packaged in a container or combination of containers that is in compliance with the
provisions of Minnesota Rules, parts 7515.1080 to 7515.1120.
new text end

new text begin Subd. 3. new text end

new text begin Off-sale not exclusive to brewery premises. new text end

new text begin Any brand sold under this section
must be made available for sale to a malt liquor wholesaler, other than a wholesaler owned
in whole or in part by a brewer as allowed in section 340A.301, subdivision 9.
new text end

new text begin Subd. 4. new text end

new text begin Exception; production in 2021. new text end

new text begin Notwithstanding the 7,500 barrel limit in
subdivision 1, a brewer licensed under section 340A.301, subdivision 6, clause (c), (i), or
(j), that produced more than 5,500 barrels but not more than 13,500 barrels of malt liquor
in calendar year 2021, as demonstrated by records from the Department of Revenue, may
be issued a license under this section, provided that a brewer is only allowed to make the
sales authorized in this section until the brewer's production exceeds its 2021 production
amount by 2,000 barrels.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin The commissioner may by rule establish reporting requirements
for brewers making off-sales of malt liquor under this section to ensure compliance with
the 128 ounce limit in subdivision 1.
new text end

new text begin Subd. 6. new text end

new text begin Other laws. new text end

new text begin All other requirements of chapter 340A, not inconsistent with this
section apply.
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. 6.

Minnesota Statutes 2020, section 340A.301, subdivision 8, is amended to read:


Subd. 8.

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) Except as provided in subdivision 9, no brewer as defined in subdivision 9 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 (c) A winery holding a license under subdivision 6, paragraph (b) that produces and
sells, including sales from the winery's premises, no more than 2,500 barrels or its metric
equivalent of cider made from apples in a calendar year may own or have an interest in a
wholesaler that sells only the winery's apple-based cider products. The winery eligible to
own or have an interest in a wholesaler under this subdivision must provide the commissioner
with an affidavit stating that no existing wholesaler is available to represent and distribute
the winery's apple-based cider to retail license holders, and detailing the actions taken by
the winery in pursuing a distribution contract for the cider product.
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. 7.

Minnesota Statutes 2020, section 340A.307, subdivision 1, is amended to read:


Subdivision 1.

Nondiscriminatory sales.

All licensed importersnew text begin and manufacturersnew text end
must offer for sale on an equal basis to all licensed wholesalers and manufacturers all
intoxicating liquor brought intonew text begin or produced innew text end the state of Minnesota.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2020, section 340A.307, subdivision 2, is amended to read:


Subd. 2.

Prohibited practices.

Without limiting subdivision 1, the following are failures
to offer intoxicating liquor for sale on an equal basis and are unlawful:

(1) A refusal to sell to a wholesaler or manufacturer intoxicating liquor offered for sale
to any other wholesaler or manufacturer, except when a wholesaler or manufacturer is in
arrears on payments for past purchases from the importer new text beginor manufacturer new text endwho refuses to
sell.

(2) A sale of intoxicating liquor to a wholesaler or manufacturer at a price different from
that offered to another wholesaler or manufacturer, exclusive of shipping costs, except that
quantity discounts based on actual cost savings may be uniformly offered to all wholesalers
and manufacturers.

(3) A sale of intoxicating liquor to a wholesaler or manufacturer on terms of purchase
different from those offered another wholesaler or manufacturer, except that when the
importer new text beginor manufacturer new text endreasonably believes that a wholesaler or manufacturer will be
unable to comply with the existing terms of credit, other terms may be employed, including
denial of credit.

(4) Discrimination among wholesalers and manufacturers in satisfying their respective
demands for intoxicating liquor.

(5) A sale conditioned on an agreement which restricts the wholesaler or manufacturer
with respect to customers, area for distribution, or resale price, or which otherwise restrains
the wholesaler or manufacturer from competing in trade and commerce.

(6) For purposes of this subdivision and subdivision 1 only, the term "intoxicating liquor"
does not include "pop wines" as they are defined by rule of the commissioner.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2020, section 340A.307, subdivision 4, is amended to read:


Subd. 4.

Exceptions.

Nothing in this section applies todeleted text begin:deleted text endnew text begin wine or malt liquor of any alcohol
content.
new text end

deleted text begin (1) wine or malt liquor of any alcohol content;
deleted text end

deleted text begin (2) intoxicating liquor which is:
deleted text end

deleted text begin (i) further distilled, refined, rectified, or blended within the state; and
deleted text end

deleted text begin (ii) bottled within the state and labeled with the importer's own labels after importation
into the state; or
deleted text end

deleted text begin (3) any brand of intoxicating liquor which is offered for sale only in this state. No such
brand shall vary from an existing or new brand sold in another state in any manner as to
brand name, age, or proof of the product.
deleted 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. 10.

Minnesota Statutes 2020, section 340A.404, subdivision 1, is amended to read:


Subdivision 1.

Cities.

(a) A city may issue an on-sale intoxicating liquor license to the
following establishments located within its jurisdiction:

(1) hotels;

(2) restaurants;

(3) bowling centers;

(4) clubs or congressionally chartered veterans organizations with the approval of the
commissioner, provided that the organization has been in existence for at least three years
and liquor sales will only be to members and bona fide guests, except that a club may permit
the general public to participate in a wine tasting conducted at the club under section
340A.419;

(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the
Minnesota Sports Facilities Authority;

(6) sports facilities located on land owned by the Metropolitan Sports Commission; deleted text beginand
deleted text end

(7) exclusive liquor storesdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (8) resorts as defined in section 157.15, subdivision 11.
new text end

(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.

(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
an on-sale malt liquor license to a convention center within the city, notwithstanding any
law, local ordinance, or charter provision. A license issued under this paragraph authorizes
sales on all days of the week to persons attending events at the convention center. This
paragraph does not apply to convention centers located in the seven-county metropolitan
area.

(d) A deleted text begincitydeleted text endnew text begin municipalitynew text end may issue an on-sale wine license and an on-sale malt liquor
license to a person who is the owner of a summer collegiate league baseball teamnew text begin or baseball
team competing in a league established by the Minnesota Baseball Association
new text end, or to a
person holding a concessions or management contract with the owner, for beverage sales
at a ballpark or stadium located within the deleted text begincitydeleted text endnew text begin municipalitynew text end for the purposes of summer
collegiate league baseball gamesnew text begin, town ball games,new text end and any other events at the ballpark or
stadium, notwithstanding any law, local ordinance, or charter provision. A license issued
under this paragraph authorizes sales on all days of the week to persons attending baseball
games and any other events at the ballpark or stadium.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2020, section 340A.404, subdivision 1a, is amended to read:


Subd. 1a.

deleted text beginCitiesdeleted text endnew text begin Municipalitiesnew text end; auto racing facilities.

A deleted text begincitydeleted text endnew text begin municipalitynew text end may issue
an on-sale intoxicating liquor license to an auto racing facility located in the deleted text begincitydeleted text endnew text begin municipalitynew text end.
The license may authorize sales both to persons attending any and all events at the facility,
and sales in a restaurant, bar, or banquet facility located on the premises of the auto racing
facility. The license authorizes sales on all days of the week. 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 a defined area as described in the application for the license.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2020, section 340A.404, subdivision 6, is amended to read:


Subd. 6.

Counties.

(a) A county board may issue an annual on-sale intoxicating liquor
license within the area of the county that is unorganized or unincorporated to a bowling
center, restaurant, club, deleted text beginordeleted text end hotelnew text begin, or resort as defined in section 157.15, subdivision 11,new text end with
the approval of the commissioner.

(b) A county board may also with the approval of the commissioner issue up to ten
seasonal on-sale licenses to restaurants and clubs for the sale of intoxicating liquor within
the area of the county that is unorganized or unincorporated. Notwithstanding section
340A.412, subdivision 8, a seasonal license is valid for a period specified by the board, not
to exceed nine months. Not more than one license may be issued for any one premises
during any consecutive 12-month period.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2020, section 340A.404, subdivision 10, is amended to read:


Subd. 10.

Temporary on-sale licenses.

(a) The 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 daysnew text begin, except as provided
for county fairs in section 340A.410, subdivision 10
new text end, 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.

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

(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 or a microdistillery a temporary license for the
on-sale of intoxicating liquor in connection with a social event within the municipality
sponsored by the brewer or microdistillery. 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 begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 340A.410, subdivision 10, is amended to read:


Subd. 10.

Temporary licenses; restrictions.

(a) A municipality may not issue more
than three four-day, four three-day, six two-day, or 12 one-day temporary licenses, in any
combination not to exceed 12 days per year, under section 340A.404, subdivision 10, for
the sale of alcoholic beverages to any one organization or registered political committee,
or for any one location, within a 12-month period.

deleted text begin (b) A municipality may not issue more than one temporary license under section
deleted text end deleted text begin 340A.404, subdivision 10 deleted text end deleted text begin , for the sale of alcoholic beverages to any one organization or
deleted text end deleted text begin registered political committee, or for any one location, within any 30-day period unless the
deleted text end deleted text begin licenses are issued in connection with an event officially designated a community festival
deleted text end deleted text begin by the municipality.
deleted text end

deleted text begin This restriction does not apply to a municipality with a population of deleted text end deleted text begin 5,000 deleted text end deleted text begin or deleted text end deleted text begin fewer
people.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end A municipality that issues separate temporary wine and liquor licenses may
separately apply the limitations contained in deleted text beginparagraphsdeleted text end new text beginparagraphnew text end (a) deleted text beginand (b)deleted text end to the issuance
of such licenses to any one organization or registered political committee, or for any one
location.

new text begin (c) In addition to the temporary licenses authorized in paragraph (a), a municipality may
issue one seven-day temporary license per year to a county agricultural society established
under section 38.01, for alcoholic beverage sales at a county fair.
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. 15.

Minnesota Statutes 2020, section 340A.412, subdivision 14, is amended to read:


Subd. 14.

Exclusive liquor stores.

(a) Except as otherwise provided in this subdivision,
an exclusive liquor store may sell only the following items:

(1) alcoholic beverages;

(2) tobacco products;

(3) ice;

(4) beverages, either liquid or powder, specifically designated for mixing with intoxicating
liquor;

(5) soft drinks;

(6) liqueur-filled candies;

(7) food products that contain more than one-half of one percent alcohol by volume;

(8) cork extraction devices;

(9) books and videos on the use of alcoholic beverages;

(10) magazines and other publications published primarily for information and education
on alcoholic beverages;

(11) multiple-use bags designed to carry purchased items;

(12) devices designed to ensure safe storage and monitoring of alcohol in the home, to
prevent access by underage drinkers;

(13) home brewing equipment; deleted text beginand
deleted text end

(14) clothing marked with the specific name, brand, or identifying logo of the exclusive
liquor store, and bearing no other name, brand, or identifying logodeleted text begin.deleted text endnew text begin;
new text end

new text begin (15) citrus fruit; and
new text end

new text begin (16) glassware.
new text end

(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
license may sell food for on-premise consumption when authorized by the municipality
issuing the license.

(c) An exclusive liquor store may offer live or recorded entertainment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16. new text beginEXTENDED HOURS FOR ON-SALE; WORLD CUP.
new text end

new text begin (a) Notwithstanding the restrictions on the days and hours for on-sale of intoxicating
liquor or 3.2 percent malt liquor in this section, during a FIFA Women's World Cup
competition or FIFA World Cup competition, a licensing jurisdiction may, at its discretion,
issue special permits for service of alcohol through extended hours. The permit only
authorizes the sale of alcoholic beverages 30 minutes before, during, and 30 minutes after
a scheduled broadcast of a live World Cup match. The sales authorized under this subdivision
are not allowed during broadcasts of previously played matches. Only holders of an existing
on-sale intoxicating liquor license or a 3.2 percent malt liquor license are eligible for the
extended hours. Local licensing jurisdictions issuing special permits to operate with extended
hours under this subdivision may charge a fee up to but not to exceed $250 for a permit. In
the process of issuing a permit under this section, the licensing jurisdiction may limit approval
to specified geographic, zoning, or license classifications within its jurisdiction.
new text end

new text begin (b) This section expires September 1, 2023.
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. 17. new text beginAPPROPRIATION.
new text end

new text begin $250,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of public safety for the purpose of hiring two additional full-time employees in the Division
of Alcohol and Gambling Enforcement.
new text end

ARTICLE 2

SPECIAL LOCAL LIQUOR LAWS

Section 1. new text beginCITY OF WILLMAR; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Willmar may issue an on-sale wine license and an on-sale
malt liquor license to a person who is the owner of a junior league hockey team or to a
person holding a concessions or management contract with the city or the team owner for
beverage sales at the Willmar Civic Center. The licenses must authorize the dispensing of
wine or malt liquor only to persons attending events at the civic center for consumption on
the premises. A license issued under this section authorizes sales on all days of the week to
persons attending junior hockey league games or other events at the civic center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Willmar City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 2. new text beginCITY OF SAUK RAPIDS; ON-SALE LICENSE.
new text end

new text begin (a) Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Sauk Rapids may issue an on-sale intoxicating liquor license
to an entity holding a management or concessions contract with the city for operation within
Bob Cross Regional Park. The license must authorize the service of intoxicating liquor only
to persons attending events scheduled or organized by the entity, for consumption within
Bob Cross Regional Park.
new text end

new text begin (b) Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Sauk Rapids may issue an on-sale intoxicating liquor license
to an entity holding a concessions or management contract with the city for operation of a
regional event center located within Lions Park or Southside Park. The license must authorize
the service of intoxicating liquor only to persons attending events scheduled or organized
by the entity, for consumption within Lions Park or Southside Park.
new text end

new text begin (c) A license issued under this section authorizes sales on all days of the week. All other
provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Sauk Rapids City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 3. new text beginCITY OF ST. PAUL; LICENSE AUTHORIZED.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St.
Paul may issue a temporary on-sale malt liquor license to the Thai Cultural Council of
Minnesota. The license may authorize the sale of malt liquor on the grounds of the State
Capitol for both days of the Minnesota Songkran Festival. All provisions of Minnesota
Statutes, section 340A.404, subdivision 10, not inconsistent with this section, apply to the
license authorized by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 4. new text beginCITY OF ST. CLOUD; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of St. Cloud may issue
an on-sale wine license and an on-sale malt liquor license to a city recreation facility known
as Whitney Recreation, located at 1529 Northway Drive, that is owned by the city. The
license must authorize the dispensing of wine or malt liquor only to persons attending events
anywhere on the property described as Whitney Park. The license may be issued to the city
of St. Cloud or to any persons under contract or agreement with the city with respect to the
operation of the facilities. The license authorizes sales on all days of the week. All other
provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section shall
apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Cloud City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 5. new text beginCITY OF ANOKA; SPECIAL LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Social district; consumption allowed. new text end

new text begin The city of Anoka may issue a
social district license to any holder of an on-sale license whose on-sale premises is contiguous
with the premises of the social district designated in subdivision 2. The license authorizes
consumption, but not sales or service, of alcoholic beverages sold by the on-sale licensee
within the social district.
new text end

new text begin Subd. 2. new text end

new text begin Designation of social district. new text end

new text begin (a) Prior to issuing the license in subdivision 1,
the city of Anoka must designate and describe the premises of the social district. The district
may not include any area under the ownership or control of a person that objects to the
extension of the social district to that area.
new text end

new text begin (b) The designation must include the specific premises where consumption of alcoholic
beverages is allowed and also include the proposed hours and days in which consumption
of alcoholic beverages is allowed in the social district. The city of Anoka must adopt the
designation by ordinance prior to issuing the license in subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Boundaries clearly defined. new text end

new text begin The social district must be clearly defined with
signs posted in a conspicuous location indicating the area included in the social district and
the days and hours during which alcoholic beverages may be consumed in the district. In
addition, signs must include:
new text end

new text begin (1) the local law enforcement agency with jurisdiction over the area comprising the
social district; and
new text end

new text begin (2) a clear statement that an alcoholic beverage purchased for consumption in the social
district shall:
new text end

new text begin (i) only be consumed in the social district; and
new text end

new text begin (ii) be disposed of before the person in possession of the alcoholic beverage exits the
social district unless the person is reentering the licensed premises where the alcoholic
beverage was purchased.
new text end

new text begin Subd. 4. new text end

new text begin Management and maintenance. new text end

new text begin The city of Anoka must establish management
and maintenance plans for the social district and post these plans, along with a rendering
of the boundaries of the social district and days and hours during which alcoholic beverages
may be consumed in the district, on the website for the city of Anoka. The social district
must be maintained in a manner that protects the health and safety of the general public.
new text end

new text begin Subd. 5. new text end

new text begin Requirements for on-sale licensees. new text end

new text begin An on-sale licensee holding a social
district license may only sell and serve alcoholic beverages on the premises specified in the
licensee's on-sale license. The licensee must not allow a person to enter or reenter its on-sale
licensed premises with an alcoholic beverage not sold by the on-sale licensee. Sales for
consumption in the social district must meet the following container requirements:
new text end

new text begin (1) the container clearly identifies the on-sale licensee from which the alcoholic beverage
was purchased;
new text end

new text begin (2) the container clearly displays a logo or some other mark that is unique to the social
district in which it will be consumed;
new text end

new text begin (3) the container is not comprised of glass;
new text end

new text begin (4) the container displays, in no less than 12-point font, the statement, "Drink Responsibly
- Be 21."; and
new text end

new text begin (5) the container shall not hold more than 16 fluid ounces.
new text end

new text begin Subd. 6. new text end

new text begin Additional social district requirements. new text end

new text begin The possession and consumption of
an alcoholic beverage in a social district is subject to all of the following requirements:
new text end

new text begin (1) only alcoholic beverages purchased from an on sale-licensee holding a social district
license located in or contiguous to the social district may be possessed and consumed in the
district;
new text end

new text begin (2) alcoholic beverages shall only be in containers meeting the requirements set forth
in subdivision 5;
new text end

new text begin (3) alcoholic beverages shall only be possessed and consumed during the days and hours
set by the city of Anoka as specified in subdivision 2; and
new text end

new text begin (4) a person shall dispose of any alcoholic beverage in the person's possession prior to
exiting the social district unless the person is reentering the on-sale licensed premises where
the alcoholic beverage was purchased.
new text end

new text begin Subd. 7. new text end

new text begin Report required. new text end

new text begin Within 24 months from the first issuance of a social district
license, the city of Anoka must provide a report to the chairs and ranking minority members
of the legislative committees with jurisdiction over liquor regulation. The report must include
a discussion of the following subjects:
new text end

new text begin (1) the process used by the city in designating the social district;
new text end

new text begin (2) the community response to the social district, with a concentration on residents living
and businesses operating within a one-mile radius of the district;
new text end

new text begin (3) the response to the social district from both on-sale licensees holding a social district
license and not holding a social district license;
new text end

new text begin (4) the problems or challenges encountered in establishing and overseeing the social
district and social district licenses;
new text end

new text begin (5) any public safety concerns that arose due to the operation of the social district;
new text end

new text begin (6) the benefits and drawbacks to the city of continuing the social district; and
new text end

new text begin (7) recommendations for modifications to the social district special law established in
this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Anoka City Council
and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 6. new text beginCITY OF ROCHESTER; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Rochester may issue an on-sale wine license and an on-sale
malt liquor license to a nonprofit association comprised of members participating in adult
athletic competitions and related events at the McQuillan Park Softball Complex. The
licenses must authorize the dispensing of wine or malt liquor only to persons attending
events at the complex for consumption on the premises. A license issued under this section
authorizes sales on all days of the week to persons attending adult events at the complex.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Rochester City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 7. new text beginCITY OF ALEXANDRIA; ON-SALE LICENSE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Alexandria may issue an on-sale wine license and an on-sale
malt liquor license to a person who is the owner of a junior league hockey team or to a
person holding a concessions or management contract with the city or the team owner for
beverage sales at the Runestone Community Center. The licenses must authorize the
dispensing of wine or malt liquor only to persons attending events at the community center
for consumption on the premises. A license issued under this section authorizes sales on all
days of the week to persons attending junior league hockey games or other events at the
community center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Alexandria City
Council and compliance with Minnesota Statutes, section 645.021.
new text end