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SF 541

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/16/2013 04:26pm

KEY: stricken = removed, old language. underscored = added, new language.

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1.1A bill for an act
1.2relating to liquor; regulating alcohol sales and distribution; authorizing various
1.3licenses;amending Minnesota Statutes 2012, sections 340A.301, subdivisions
1.46b, 6c, 7, 7a, by adding a subdivision; 340A.4042; 340A.418; Laws 1999,
1.5chapter 202, section 13; Laws 2012, chapter 235, section 8.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2012, section 340A.301, subdivision 6b, is amended to
1.8read:
1.9    Subd. 6b. Brewer taproom license. (a) A municipality, including a city with a
1.10municipal liquor store, may issue the holder of a brewer's license under subdivision 6,
1.11clause (c), (i), or (j), a brewer taproom license. A brewer taproom license authorizes on-sale
1.12of malt liquor produced by the brewer for consumption on the premises of or adjacent
1.13to one brewery location owned by the brewer. Nothing in this subdivision precludes the
1.14holder of a brewer taproom license from also holding a license to operate a restaurant at
1.15the brewery. Section 340A.409 shall apply to a license issued under this subdivision. All
1.16provisions of this chapter that apply to a retail liquor license shall apply to a license issued
1.17under this subdivision unless the provision is explicitly inconsistent with this subdivision.
1.18(b) A brewer may only have one taproom license under this subdivision, and may
1.19not have an ownership interest in a brewery licensed under subdivision 6, clause (d).
1.20(c) A municipality may not issue a brewer taproom license to a brewer if the brewer
1.21seeking the license, or any person having an economic interest in the brewer seeking the
1.22license or exercising control over the brewer seeking the license, is a brewer that brews
1.23more than 250,000 barrels of malt liquor annually or a winery that produces more than
1.24250,000 gallons of wine annually.
2.1(d) The municipality shall impose a licensing fee on a brewer holding a brewer
2.2taproom license under this subdivision, subject to limitations applicable to license fees
2.3under section 340A.408, subdivision 2, paragraph (a).
2.4(e) A municipality shall, within ten days of the issuance of a license under this
2.5subdivision, inform the commissioner of the licensee's name and address and trade name,
2.6and the effective date and expiration date of the license. The municipality shall also
2.7inform the commissioner of a license transfer, cancellation, suspension, or revocation
2.8during the license period.
2.9EFFECTIVE DATE.This section is effective the day following final enactment.

2.10    Sec. 2. Minnesota Statutes 2012, section 340A.301, subdivision 6c, is amended to read:
2.11    Subd. 6c. Microdistillery fee Microdistilleries. (a) A microdistillery may provide
2.12on its premises samples of distilled spirits manufactured on its premises, in an amount
2.13not to exceed 15 milliliters per variety per person. No more than 45 milliliters may be
2.14sampled under this paragraph by any person on any day.
2.15(b) The commissioner shall establish a fee for licensing microdistilleries that
2.16adequately covers the cost of issuing the license and other inspection requirements. The
2.17fees shall be deposited in an account in the special revenue fund and are appropriated to
2.18the commissioner for the purposes of this subdivision.
2.19EFFECTIVE DATE.This section is effective the day following final enactment.

2.20    Sec. 3. Minnesota Statutes 2012, section 340A.301, is amended by adding a
2.21subdivision to read:
2.22    Subd. 6d. Small brewer license. (a) A brewer licensed under subdivision 6, clause
2.23(c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its
2.24licensed premises that has been produced and packaged by the brewer. The license must be
2.25approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed
2.26500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at
2.27exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor
2.28sold off-sale must be removed from the premises before the applicable off-sale closing
2.29time at exclusive liquor stores. The malt liquor shall be packed in 64-ounce containers
2.30commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall
2.31bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic
2.32adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over
2.33the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken
3.1upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the
3.2name and address of the brewer. The containers or bottles shall be identified as malt
3.3liquor, contain the name of the malt liquor, bear the name and address of the brewer selling
3.4the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is
3.5labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.
3.6(b) A brewer may only have one license under this subdivision.
3.7(c) A municipality may not issue a license under this subdivision to a brewer if the
3.8brewer seeking the license, or any person having an economic interest in the brewer
3.9seeking the license or exercising control over the brewer seeking the license, is a brewer
3.10that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery
3.11that produces more than 250,000 gallons of wine annually.
3.12(d) The municipality shall impose a licensing fee on a brewer holding a license
3.13under this subdivision, subject to limitations applicable to license fees under section
3.14340A.408, subdivision 3, paragraph (a).

3.15    Sec. 4. Minnesota Statutes 2012, section 340A.301, subdivision 7, is amended to read:
3.16    Subd. 7. Interest in other business. (a) Except as provided in this subdivision,
3.17a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have
3.18any ownership, in whole or in part, in a business holding a retail intoxicating liquor or
3.193.2 percent malt liquor license. The commissioner may not issue a license under this
3.20section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating
3.21liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler.
3.22A manufacturer or wholesaler of intoxicating liquor may use or have property rented
3.23for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the
3.24property continuously since November 1, 1933. A retailer of intoxicating liquor may not
3.25use or have property rented for the manufacture or wholesaling of intoxicating liquor.
3.26    (b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale
3.27intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant
3.28operated in the place of manufacture. Notwithstanding section 340A.405, a brewer
3.29who holds an on-sale license issued pursuant to this paragraph or a brewer who
3.30manufactures fewer than 3,500 barrels of malt liquor in a year may, with the approval
3.31of the commissioner, be issued a license by a municipality for off-sale of malt liquor
3.32produced and packaged on the licensed premises. Off-sale of malt liquor shall be limited
3.33to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the
3.34brewer is located, and the malt liquor sold off-sale must be removed from the premises
3.35before the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall
4.1be packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter
4.2bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At
4.3the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the
4.4container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug
4.5forming a seal that must be broken upon opening of the container or bottle. The adhesive
4.6band, strip, or sleeve shall bear the name and address of the brewer. The containers or
4.7bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name
4.8and address of the brewer selling the malt liquor, and shall be considered intoxicating
4.9liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions
4.10of Minnesota Rules, part 7515.1100. A brewer's total retail sales at on- or off-sale under
4.11this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total
4.12more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have
4.13an interest in other retail on-sale licenses, but may not have an ownership interest in whole
4.14or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer,
4.15importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by
4.16management, direction, or control. Notwithstanding this prohibition, a brewer licensed
4.17under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer
4.18licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:
4.19    (i) manufacture licensed under subdivision 6, clause (d);
4.20    (ii) manufacture in another state for consumption exclusively in a restaurant located
4.21in the place of manufacture; or
4.22    (iii) manufacture in another state for consumption primarily in a restaurant located
4.23in or immediately adjacent to the place of manufacture if the brewer was licensed under
4.24subdivision 6, clause (d), on January 1, 1995.
4.25    (c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or
4.26importer may have any interest, in whole or in part, directly or indirectly, in the license,
4.27business, assets, or corporate stock of a licensed malt liquor wholesaler.

4.28    Sec. 5. Minnesota Statutes 2012, section 340A.301, subdivision 7a, is amended to read:
4.29    Subd. 7a. Permitted interests in wholesale business. (a) A brewer may financially
4.30assist a wholesaler of malt liquor through participation in a limited partnership in which
4.31the brewer is the limited partner and the wholesaler is the general partner. A limited
4.32partnership authorized in this paragraph may not exist for more than ten years from the
4.33date of its creation, and may not, directly or indirectly, be recreated, renewed, or extended
4.34beyond that date.
5.1(b) A brewer may financially assist a malt liquor wholesaler and collateralize the
5.2financing by taking a security interest in the inventory and assets, other than the corporate
5.3stock, of the wholesaler. A financial agreement authorized by this paragraph may not be
5.4in effect for more than ten years from the date of its creation and may not be directly or
5.5indirectly extended or renewed.
5.6(c) A brewer who, after creation of a financial agreement authorized by paragraph
5.7(b), or after creation of a limited partnership authorized in paragraph (a), acquires legal
5.8or equitable title to the wholesaler's business which was the subject of the agreement or
5.9limited partnership, or to the business assets, must divest the business or its assets within
5.10two years of the date of acquiring them. A malt liquor wholesaler whose business or
5.11assets are acquired by a brewer as described in this paragraph may not enter into another
5.12such financial agreement, or participate in another such limited partnership, for 20 years
5.13from the date of the acquisition of the business or assets.
5.14(d) A brewer may have an interest in the business, assets, or corporate stock of a
5.15malt liquor wholesaler as a result of (1) a judgment against the wholesaler arising out of a
5.16default by the wholesaler or (2) acquisition of title to the business, assets, or corporate
5.17stock as a result of a written request of the wholesaler. A brewer may maintain ownership
5.18of or an interest in the business, assets, or corporate stock under this paragraph for not
5.19more than two years and only for the purpose of facilitating an orderly transfer of the
5.20business to an owner not affiliated with the brewer.
5.21(e) A brewer may continue to maintain an ownership interest in a malt liquor
5.22wholesaler if it owned the interest on January 1, 1991.
5.23(f) A brewer that was legally selling the brewer's own products at wholesale in
5.24Minnesota on January 1, 1991, may continue to sell those products at wholesale in the
5.25area where it was selling those products on that date.
5.26(g) A brewer that manufactures malt liquor in Minnesota may, if the brewer does
5.27not manufacture in Minnesota in any year manufactures no more than 25,000 20,000
5.28 barrels of malt liquor or its metric equivalent, in a calendar year may own or have an
5.29interest in a malt liquor wholesaler that sells only the brewer's products, provided that a
5.30brewer that manufactures between 20,000 and 25,000 barrels in any calendar year shall be
5.31permitted to continue to own or have an interest in a malt liquor wholesaler that sells only
5.32the brewer's products if: (1) that malt liquor wholesaler distributes no more than 20,000
5.33barrels per calendar year; and (2) the brewer has not manufactured 25,000 barrels in any
5.34calendar year. Notwithstanding the foregoing, a brewer that manufactured between 20,000
5.35and 25,000 barrels in 2012 shall be permitted to continue to own or have an interest in a
6.1malt liquor wholesaler that sells only the brewer's products until that brewer manufactures
6.225,000 barrels in a calendar year.
6.3(h) When the commissioner issues a license to a malt liquor wholesaler described in
6.4paragraph (a) or (b), the commissioner may issue the license only to the entity which is
6.5actually operating the wholesale business and may not issue the license to a brewer that is
6.6a limited partner under paragraph (a) or providing financial assistance under paragraph (b)
6.7unless the brewer has acquired a wholesaler's business or assets under paragraph (c) or (d).
6.8(i) For purposes of this subdivision and subdivision 7, clause (c), "brewer" means:
6.9(1) a holder of a license to manufacture malt liquor;
6.10(2) an officer, director, agent, or employee of such a license holder; and
6.11(3) an affiliate of such a license holder, regardless of whether the affiliation is
6.12corporate or by management, direction, or control.

6.13    Sec. 6. Minnesota Statutes 2012, section 340A.4042, is amended to read:
6.14340A.4042 WINE OR MALT LIQUOR EDUCATOR; ON-SALE LICENSE.
6.15    Subdivision 1. Wine educator license. The commissioner may issue an on-sale
6.16license to a person meeting the requirements specified in sections 340A.402 and 340A.409,
6.17at an annual cost of $250 per license to a wine educator and $50 per permit for each
6.18employee of the wine educator that will be pouring wine, under the following conditions:
6.19(1) the license may be used to purchase wine at retail and serve wine for educational
6.20purposes in any part of the state, unless a political subdivision adopts an ordinance
6.21prohibiting wine education;
6.22(2) all events conducted pursuant to this license must be conducted through advance
6.23registration, and no walk-in access to the general public is permitted;
6.24(3) licensees must possess certification that is satisfactory to the commissioner,
6.25including, but not limited to, a certified specialist of wine or certified wine educator status
6.26as conferred by the Society of Wine Educators, a Wine and Spirits Education Trust
6.27Diploma, status as a certified sommelier, or the completion of a wine industry program at
6.28a technical college or culinary school. A wine educator must also complete Training for
6.29Intervention Procedures (TIPS) or other certified alcohol training programs and have a
6.30valid certificate on file with the commissioner;
6.31(4) a license holder shall not sell alcohol for off-premises consumption and no
6.32orders may be taken for future sales;
6.33(5) classes shall not be conducted at retail businesses that do not have a liquor
6.34license during business hours; and
7.1(6) prior to providing a class authorized under this section, the licensee shall notify
7.2the police chief of the city where the class will take place, if the event will take place
7.3within the corporate limits of a city. If the city has no police department, the licensee shall
7.4notify the city's clerk. If the class will take place outside the corporate limits of any city,
7.5the licensee shall notify the sheriff of the county where the class will take place.
7.6    Subd. 2. Malt liquor educator license. The commissioner may issue an on-sale
7.7license to a person meeting the requirements specified in sections 340A.402 and
7.8340A.409, at an annual cost of $250 per license to a malt liquor educator and $50 per
7.9permit for each employee of the malt liquor educator that will be pouring malt liquor,
7.10under the following conditions:
7.11(1) the license may be used to purchase malt liquor at retail and serve malt liquor
7.12for educational purposes in any part of the state, unless a political subdivision adopts an
7.13ordinance prohibiting malt liquor education;
7.14(2) all events conducted pursuant to this license must be conducted through advance
7.15registration, and no walk-in access to the general public is permitted;
7.16(3) licensees must possess certification that is satisfactory to the commissioner,
7.17including, but not limited to, certification as a cicerone, completion of coursework from
7.18the Master Brewer's Association of America, or other brewer or brewing certification
7.19program acceptable to the commissioner. A malt liquor educator must also complete
7.20Training for Intervention Procedures (TIPS) or other certified alcohol training programs
7.21and have a valid certificate on file with the commissioner;
7.22(4) a license holder shall not sell alcohol for off-premises consumption and no
7.23orders may be taken for future sales;
7.24(5) classes shall not be conducted at retail businesses that do not have a liquor
7.25license during business hours; and
7.26(6) prior to providing a class authorized under this section, the licensee shall notify
7.27the police chief of the city where the class will take place, if the event will take place
7.28within the corporate limits of a city. If the city has no police department, the licensee shall
7.29notify the city's clerk. If the class will take place outside the corporate limits of any city,
7.30the licensee shall notify the sheriff of the county where the class will take place.
7.31EFFECTIVE DATE.This section is effective on July 1, 2013.

7.32    Sec. 7. Minnesota Statutes 2012, section 340A.418, is amended to read:
7.33340A.418 WINE ALCOHOLIC BEVERAGE TASTINGS.
8.1    Subdivision 1. Definition. For purposes of this section, a an "wine alcoholic
8.2beverage tasting" is or "tasting" means an event at which persons pay a fee or donation to
8.3participate, and are allowed to consume wine, malt liquor, or both, by the glass without
8.4paying a separate charge for each glass.
8.5    Subd. 2. Tastings authorized. (a) A charitable, religious, or other nonprofit
8.6organization may conduct a wine tasting of not more than four hours duration on premises
8.7the organization owns or leases or has use donated to it, or on the licensed premises of a
8.8holder of an on-sale intoxicating liquor license that is not a temporary license, if the
8.9organization holds a temporary on-sale intoxicating liquor license under section 340A.404,
8.10subdivision 10
, and complies with this section. An organization holding a temporary
8.11license may be assisted in conducting the wine tasting by another nonprofit organization.
8.12(b) An organization that conducts a wine tasting under this section may use the net
8.13proceeds from the wine tasting only for:
8.14(1) the organization's primary nonprofit purpose; or
8.15(2) donation to another nonprofit organization assisting in the wine tasting, if the
8.16other nonprofit organization uses the donation only for that organization's primary
8.17nonprofit purpose.
8.18(c) No wine or malt liquor at a wine tasting under this section may be sold, or orders
8.19taken, for off-premises consumption.
8.20(d) Notwithstanding any other law, an organization may purchase or otherwise
8.21obtain wine or malt liquor for a wine tasting conducted under this section from a
8.22wholesaler licensed to sell wine or malt liquor, and the wholesaler may sell or give wine
8.23 or malt liquor to an organization for a wine tasting conducted under this section and may
8.24provide personnel to assist in the wine tasting. A wholesaler who sells or gives wine or
8.25malt liquor to an organization for a wine tasting under this section must deliver the wine
8.26or malt liquor directly to the location where the wine tasting is conducted.
8.27(e) This section does not prohibit or restrict a wine tasting that is:
8.28(1) located on on-sale premises where no charitable organization is participating; or
8.29(2) located on on-sale premises where the proceeds are for a designated charity but
8.30where the tasting is primarily for educational purposes.
8.31(f) The four-hour limitation specified in paragraph (a) shall not apply to a wine
8.32 tasting at a convention of fine wine, malt liquor, and gourmet food exhibitors, provided the
8.33convention has at least 100 exhibitors and takes place over not more than three days.
8.34EFFECTIVE DATE.This section is effective on July 1, 2013.

8.35    Sec. 8. Laws 1999, chapter 202, section 13, is amended to read:
9.1    Sec. 13. CITY OF ST. PAUL; LICENSES AUTHORIZED.
9.2    (a) The city of St. Paul may issue temporary intoxicating liquor licenses under
9.3Minnesota Statutes, section 340A.404, subdivision 10, to Macalester college for the
9.4Macalester Scottish fair, Springfest, and for the annual alumni reunion weekend without
9.5regard to the limitation in Minnesota Statutes, section 340A.410, subdivision 10,
9.6paragraph (b).
9.7    (b) Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city
9.8of St. Paul may issue a temporary on-sale intoxicating liquor license to Twin Cities
9.9Marathon, Inc Twin Cities in Motion, or its successor organization, if any. The license
9.10may authorize only the sale of intoxicating malt liquor and 3.2 percent malt liquor on the
9.11grounds of the state capitol on the day of the Twin Cities Marathon. The intoxicating
9.12malt liquor and 3.2 percent malt liquor must be produced by a Minnesota brewery. All
9.13provisions of Minnesota Statutes, section 340A.404, subdivision 10, not inconsistent with
9.14this section, apply to the license authorized by this section.
9.15EFFECTIVE DATE.This section is effective the day following final enactment.

9.16    Sec. 9. Laws 2012, chapter 235, section 8, the effective date, is amended to read:
9.17EFFECTIVE DATE; SUNSET.This section is effective upon approval by the
9.18Winnebago City Council and compliance with Minnesota Statutes, section 645.021, and
9.19expires on December 31, 2012 2013.
9.20EFFECTIVE DATE.This section is effective upon approval by the Winnebago
9.21City Council and compliance with Minnesota Statutes, section 645.021.

9.22    Sec. 10. LOWERTOWN REGIONAL BALLPARK; ON-SALE LICENSE.
9.23Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, or any other
9.24law to the contrary, the city of Saint Paul may issue an on-sale intoxicating liquor license
9.25to the St. Paul Saints Baseball Club, Inc., or such other entity affiliated with it that
9.26may operate food and beverage concessions at the ballpark, in addition to the number
9.27authorized by law. The license may authorize sales both to persons attending any and
9.28all events, and sales in a restaurant, bar, or banquet facility at the ballpark. The license
9.29authorizes sales on all days of the week. Sales at the ballpark must comply with Minnesota
9.30Statutes, section 340A.909. All provisions of Minnesota Statutes, chapter 340A, not
9.31inconsistent with this section, apply to the license under this section. The license may be
9.32issued for a space that is not compact and contiguous, provided that the licensed premises
10.1may include only the space within the ballpark or on ballpark premises or grounds, as
10.2described in the approved license application.
10.3EFFECTIVE DATE.This section is effective upon approval by the Saint Paul City
10.4Council and compliance with Minnesota Statutes, section 645.021.

10.5    Sec. 11. SAKE BREWPUB; CLARIFICATION.
10.6(a) Notwithstanding any law, ordinance, or charter provision to the contrary, a
10.7licensed brewery producing sake under authority of Minnesota Statutes, section 340A.301,
10.8subdivision 6, paragraph (d), as of the effective date of this act, may be issued a license
10.9by the city of Minneapolis for off-sale of sake produced and packaged on the licensed
10.10premises. The sake shall be packaged in a substantially similar manner to that required for
10.11off-sales under Minnesota Statutes, section 340A.301, subdivision 7, paragraph (b).
10.12(b) This section is effective upon approval by the Minneapolis City Council and
10.13compliance with Minnesota Statutes, section 645.021.

10.14    Sec. 12. VALLEY FAIR; ON-SALE LICENSE.
10.15Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, or any other
10.16law to the contrary, the city of Shakopee may issue an on-sale intoxicating liquor license
10.17to Cedar Fair Entertainment Co., dba Valley Fair, in addition to the number authorized by
10.18law. The license may authorize sales both to persons attending any and all events, and
10.19sales in a restaurant, bar, or banquet facility at Valley Fair. The license authorizes sales on
10.20all days of the week. All provisions of Minnesota Statutes, chapter 340A, not inconsistent
10.21with this section, apply to the license under this section. The license may be issued for a
10.22space that is not compact and contiguous, provided that the licensed premises may include
10.23only the space within the park as described in the approved license application.
10.24EFFECTIVE DATE.This section is effective upon approval by the Shakopee City
10.25Council and compliance with Minnesota Statutes, section 645.021.

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