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SF 444

1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 05/21/2017 10:14am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to liquor; authorizing service at the State Capitol and other on-sale licenses;
providing for operation of cocktail rooms; modifying off-sale license for
microdistilleries; modifying certain production limits; providing for certain off-sale
container and labeling requirements; requiring microdistilleries and farm wineries
to distill on premises; permitting municipalities to limit days of sale; establishing
2018 Super Bowl extended alcohol service hours; amending Minnesota Statutes
2016, sections 85.0505, by adding a subdivision; 340A.22, subdivisions 1, 2, 4;
340A.24, subdivision 3; 340A.28; 340A.285; 340A.301, by adding a subdivision;
340A.315, subdivision 7; 340A.504, subdivision 6; Laws 1999, chapter 202, section
13, as amended; proposing coding for new law in Minnesota Statutes, chapter
340A; repealing Laws 2001, chapter 193, section 10, as amended; Laws 2013,
chapter 137, article 4, section 6.

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

Section 1.

Minnesota Statutes 2016, section 85.0505, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Fort Ridgely State Park. new text end

new text begin The commissioner of public safety, with the approval
of the commissioner of natural resources, may issue to a concessionaire, lessee, or person
holding a contract with the Department of Natural Resources an on-sale license for the sale
of intoxicating liquor at the Fort Ridgely State Park golf course. The annual fee for the
license issued pursuant to this subdivision shall be set by the commissioner of public safety
at an amount comparable to the fee charged by the surrounding counties for a similar license.
All provisions of chapter 340A not inconsistent with this subdivision shall apply to the sale
of intoxicating liquor at the Fort Ridgely State Park golf course.
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 2016, section 340A.22, subdivision 1, is amended to read:


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 microdistillery can sell cocktails to the public, pursuant to subdivision 2.

new text begin (c) A microdistillery 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 end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 340A.22, subdivision 2, is amended to read:


Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal
liquor store, may issue the holder of a microdistillery license under this chapter a
microdistillery cocktail room license. A microdistillery cocktail 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. new text beginNotwithstanding section 340A.504,
subdivision 3, a cocktail room may be open and may conduct on-sale business on Sundays
if authorized by the municipality.
new text endNothing in this subdivision precludes the holder of a
microdistillery 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 subdivision, and may
not have an ownership interest in a distillery licensed under section 340A.301, subdivision
6, clause (a).

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery
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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 340A.22, subdivision 4, is amended to read:


Subd. 4.

Off-sale license.

A microdistillery may be issued a license by the local licensing
authoritynew text begin, with the approval of the commissioner,new text end for off-sale of distilled spirits. The license
may allow the sale deleted text beginof one 375 milliliter bottle per customer per daydeleted text end of product manufactured
on site, subject 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; deleted text beginand
deleted text end

(2) no brand may be sold at the microdistillery unless it is also available for distribution
by wholesalersdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (3) no more than 8,000 proof gallons of the 40,000 proof gallons produced by a distiller
can be sold at off-sale on premises.
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. 5.

Minnesota Statutes 2016, section 340A.24, subdivision 3, is amended to read:


Subd. 3.

Total retail sales.

A brew pub's total retail sales at on- or off-sale under this
section may not exceed 3,500 barrels per year, provided that off-sales may not total more
than deleted text begin500deleted text endnew text begin 750new text end barrels.

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 2016, section 340A.28, is amended to read:


340A.28 SMALL BREWER OFF-SALE.

Subdivision 1.

License; limitations.

A brewer licensed under section 340A.301,
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. A brewer may only have one license
under this subdivision. The amount of malt liquor sold at off-sale may not exceed deleted text begin500deleted text endnew text begin 750new text end
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 stores, 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. Packaging of malt liquor for off-sale under this subdivision
must comply with section 340A.285.

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 40,000new text end barrels of its own brands of malt liquor annually
or a winery that produces more than 250,000 gallons of wine annually.

Subd. 3.

Fee.

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 EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 340A.285, is amended to read:


340A.285 GROWLERS.

(a) Malt liquor authorized for off-sale pursuant to section 340A.24 or 340A.28 shall be
packaged in deleted text begin64-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
deleted text endnew text begin any vessel
containing between 650 milliliters and two liters
new text end. At the time of sale, a paper or plastic
adhesive band, strip, or sleeve shall be applied to the container or deleted text beginbottledeleted text endnew text begin vesselnew 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 or deleted text beginbottledeleted text endnew text begin vesselnew text end. The adhesive band, strip, or sleeve shall
bear the name and address of the brewer. The containers or deleted text beginbottlesdeleted text endnew text begin vesselsnew 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 or brewer may, but is not required to, refill any container or deleted text beginbottledeleted text endnew text begin vesselnew text end
with malt liquor for off-sale at the request of the customer. A brew pub or brewer refilling
a container or deleted text beginbottledeleted text endnew text begin vesselnew text end must do so at its licensed premises and the container or deleted text beginbottledeleted text endnew text begin
vessel
new text end must be filled at the tap at the time of sale. A container or deleted text beginbottledeleted text endnew text begin vesselnew 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. 8.

Minnesota Statutes 2016, section 340A.301, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin 3.2 percent malt liquor; label. new text end

new text begin 3.2 percent malt liquor, as defined under
section 340A.101, subdivision 19, may be sold with a label that states "MAX 3.2% ALC/WT"
or equivalent, on the side of the can or bottle, and does not require a similar disclosure on
the can top or bottom. The commissioner shall establish standards to implement this
requirement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to all cans or
bottles sold after that date.
new text end

Sec. 9.

Minnesota Statutes 2016, section 340A.315, subdivision 7, is amended to read:


Subd. 7.

Distilled spirits permitted.

Farm wineries licensed under this section are
permitted to manufacture distilled spirits as defined under section 340A.101, subdivision
9
, which may exceed 25 percent alcohol by volume, made from Minnesota-produced or
Minnesota-grown grapes, grape juice, other fruit bases, or honey. The following conditions
pertain:

(1) no farm winery or firm owning multiple farm wineries may manufacture more than
5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of the
50,000 gallon limit found in subdivision 2;

(2) new text begina farm winery may not sell at on-sale, off-sale, or wholesale, a distilled spirit that
does not qualify as a Minnesota spirit. For purposes of this section, to qualify as a Minnesota
spirit, 50 percent of the distilled spirit must be processed and distilled on premises. Distilled
spirits produced or in production prior to July 1, 2017, are not counted as part of the
calculations under this clause;
new text end

new text begin (3)new text end farm wineries must pay an additional annual fee of $50 to the commissioner before
beginning production of distilled spirits; and

deleted text begin (3)deleted text endnew text begin (4)new text end farm wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10.

new text begin [340A.425] SERVICE AT CAPITOL.
new text end

new text begin Notwithstanding section 340A.412, subdivision 4, paragraph (a), clause (2), the city of
St. Paul may issue an on-sale wine and malt liquor license for the premises known as the
State Capitol, including the Capitol cafeteria. The commissioner of administration must
specify those areas where service is being requested. The Department of Administration
shall enter into an agreement with a food service vendor or another vendor on all matters
related to the sale of wine and malt liquor in the Capitol. Section 16B.275 does not apply
to the sale of wine and malt liquor in the Capitol and all fees charged or profits earned by
the Department of Administration from the sale of wine and malt liquor in the Capitol must
be deposited in a capitol revenues account in the special revenue fund and are appropriated
to the commissioner for capitol preservation. The Capitol cafeteria must sell wine and malt
liquor that are made in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of St.
Paul and its chief clerical officer timely complete compliance with section 645.021,
subdivisions 2 and 3.
new text end

Sec. 11.

Minnesota Statutes 2016, section 340A.504, subdivision 6, is amended to read:


Subd. 6.

Municipalities may limit hours.

A municipality may further limit the new text begindays or
new text end hours of on and off sales of alcoholic beverages, provided that further restricted on-sale
hours for intoxicating liquor must apply equally to on-sale hours of 3.2 percent malt liquor.
A city may not permit the sale of alcoholic beverages during hours when the sale is prohibited
by this section.

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.

Laws 1999, chapter 202, section 13, as amended by Laws 2013, chapter 42,
section 8, is amended to read:


Sec. 13. CITY OF ST. PAUL; LICENSES AUTHORIZED.

(a) The city of St. Paul may issue temporary intoxicating liquor licenses under Minnesota
Statutes, section 340A.404, subdivision 10, to Macalester college for the Macalester Scottish
fair, Springfest, and for the annual alumni reunion weekend without regard to the limitation
in Minnesota Statutes, section 340A.410, subdivision 10, paragraph (b).

(b) Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of
St. Paul may issue a temporary on-sale intoxicating liquor license to Twin Cities in Motion,
or its successor organization, if any. The license may authorize deleted text beginonlydeleted text end the sale of intoxicatingdeleted text begin
malt liquor and 3.2 percent malt
deleted text end liquor on the grounds of the state capitol on the day of the
Twin Cities Marathon. deleted text beginThe intoxicatingdeleted text endnew text begin Anynew text end malt liquor and 3.2 percent malt liquor new text beginsold
new text end must be produced by a Minnesota brewery. 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 begin EFFECTIVE DATE. new text end

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

Sec. 13. new text beginCITY OF MINNEAPOLIS; SPECIAL LICENSES.
new text end

new text begin The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant
located at 4312 Upton Avenue South, notwithstanding any law or local ordinance or charter
provision.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14. new text beginSPECIAL EVENTS; CAPITOL.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of St. Paul may issue two
separate temporary liquor licenses for special events at the Minnesota Capitol, allowing
sale throughout the Capitol building and on the Capitol grounds, as specified by the
commissioner of administration. The first special event license shall be for events relating
to the ceremonial opening of the restored State Capitol in August 2017. The second special
event license shall be for events associated with the Superbowl and the construction of an
ice castle in 2018. Licenses shall be for on-sale during all legal hours of service and shall
allow all service of wine, malt liquor, and distilled spirits. Service must be limited to wine,
malt liquor, and distilled spirits that are made in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of St.
Paul and its chief clerical officer timely complete compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 15. new text beginNATIONAL FOOTBALL LEAGUE TRAINING SITE; ON-SALE
LICENSES.
new text end

new text begin Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, or any other law
or local ordinance to the contrary, the city of Eagan may issue an on-sale intoxicating liquor
license to the owner of a National Football League sports facility located on property in the
city of Eagan in Dakota County, legally described as Lot 1, Block 1, Viking Lakes, and to
any concessionaire operator or third-party vendor under contract with the owner. The license
authorizes the sale of intoxicating liquor to persons attending any and all events on Lots 1
and 2, Block 1, Viking Lakes, that are in conjunction with activities on Lot 1. The license
may be issued for a space that is not compact and contiguous, provided that the licensed
premises shall only be the space described in the approved license. The license authorizes
sales on all days of the week. All provisions of Minnesota Statutes, chapter 340A, not
inconsistent with this section, apply to the license under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16. new text beginSPECIAL LICENSE; NEW HOPE.
new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of New Hope may issue
an on-sale intoxicating liquor license for the New Hope Village Golf Course that is located
at 8130 Bass Lake Road and is owned by the city. The provisions of Minnesota Statutes,
chapter 340A, not inconsistent with this section, apply to the license issued under this
section. The city of New Hope is deemed the licensee under this section, and the provisions
of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the
establishment were a municipal liquor store.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17. new text beginSPECIAL LICENSE; SARTELL.
new text end

new text begin The city of Sartell may issue an on-sale intoxicating liquor license, an on-sale wine
license, or an on-sale malt liquor license for the city-owned facilities known as Sartell
Community Center, located at 850 19th Street South; Pinecone Central Park, located at
1105 Central Park Blvd; and Champion Field, located at 710 12th Street North,
notwithstanding any law, local ordinance, or charter provision. A license issued under this
section authorizes sales on all days of the week to persons attending events at these facilities.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18. new text beginSPECIAL CLOSING TIMES; 2018 SUPER BOWL.
new text end

new text begin During the 2018 National Football League Super Bowl at U.S. Bank Stadium, licensing
jurisdictions that lie fully or partially within Hennepin and Ramsey Counties may, at their
discretion, issue special permits for service of alcohol through extended hours lasting until
4:00 a.m. each day. This section is subject to the following conditions:
new text end

new text begin (1) only holders of an existing on-sale intoxicating liquor license or a 3.2 malt liquor
license are eligible for later closing hours;
new text end

new text begin (2) later closing hours apply only during the period from 12:00 p.m. on February 2,
2018, through 4:00 a.m. on February 5, 2018;
new text end

new text begin (3) local licensing jurisdictions issuing special permits to operate with extended hours
during the days listed in clause (2) 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;
and
new text end

new text begin (4) this section expires at 4:01 a.m. on February 5, 2018.
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. 19. new text begin REPEALER.
new text end

new text begin Laws 2001, chapter 193, section 10, as amended by Laws 2013, chapter 137, article 4,
section 6; and Laws 2013, chapter 137, article 4, section 6,
new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Session Laws: UES0444-1

Laws 2001, chapter 193, section 10, as amended by Laws 2013, chapter 137, article 4, section 6

Sec. 6.

Laws 2001, chapter 193, section 10, is amended to read:


Sec. 10. CAPITOL CAFETERIA; WINE AND BEER LICENSE.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph (a), clause (2), the city of St. Paul may issue an on-sale wine and malt liquor license to the Capitol cafeteria, also called the Rathskeller Café. The commissioner of administration must enter into an agreement with the food service vendor or another vendor on all matters related to the sale of wine and malt liquor in the Capitol. Minnesota Statutes, section 16B.275, does not apply to the sale of wine and malt liquor in the Capitol cafeteria and all profits earned by the Department of Administration from the sale of wine and malt liquor in the Capitol must be deposited in the arts and cultural heritage fund. The Capitol cafeteria must sell wine and malt liquor that are made in Minnesota.

EFFECTIVE DATE.

This section is effective the day after the governing body of St. Paul and its chief clerical officer timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Laws 2013, chapter 137, article 4, section 6

Sec. 6.

Laws 2001, chapter 193, section 10, is amended to read:


Sec. 10. CAPITOL CAFETERIA; WINE AND BEER LICENSE.

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph (a), clause (2), the city of St. Paul may issue an on-sale wine and malt liquor license deleted text beginfordeleted text end deleted text beginthe premises known as the capitol cafeteria, for special events held at the capitol cafeteria.deleted text end new text beginto the Capitol cafeteria, also called the Rathskeller Café. The commissioner of administration must enter into an agreement with the food service vendor or another vendor on all matters related to the sale of wine and malt liquor in the Capitol. Minnesota Statutes, section 16B.275, does not apply to the sale of wine and malt liquor in the Capitol cafeteria and all profits earned by the Department of Administration from the sale of wine and malt liquor in the Capitol must be deposited in the arts and cultural heritage fund. The Capitol cafeteria must sell wine and malt liquor that are made in Minnesota.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of St. Paul and its chief clerical officer timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end