SF 3230

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to liquor; modifying regulation of brewpubs; amending Minnesota
Statutes 2005 Supplement, section 340A.301, subdivisions 6, 7.

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

Section 1.

Minnesota Statutes 2005 Supplement, 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))		$ . 30,000
	Duplicates		$ . 3,000
(b)	Manufacturers of wines of not more than 25 percent alcohol by volume		$ . 500
(c)	Brewers who manufacture more than 3,500 barrels of malt liquor in a year		$ . 4,000
(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 deleted text begin , the entire production of which is solely for consumption on tap on the licensed premises or for off-sale from that licensed premises deleted text end . A brewer licensed under this clause must obtain a separate license for each deleted text begin licensed premises deleted text end new text begin municipality new text end 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		$ . 3,750
(g)	Wholesalers of intoxicating malt liquor		$ . 1,000
	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
(j)	Brewers who manufacture 2,000 to 3,500 barrels of malt liquor in a year		$ . 500

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 2005 Supplement, 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 or a brewer who
manufactures fewer than 3,500 barrels of malt liquor in a year 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 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 500 barrels.
new text begin A brewer licensed under subdivision 6, clause (d), may distribute its own products to other
restaurants in which it has an ownership interest or through licensed wholesalers to other
retail licensees. 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.