Minnesota Legislature
SF 664
1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to alcoholic beverages; modifying brewpub 1.3 regulations; regulating wine tastings; providing for 1.4 uniform off-sale hours statewide; regulating Sunday 1.5 on-sales; authorizing certain on-sale licenses; 1.6 amending Minnesota Statutes 2004, sections 340A.301, 1.7 subdivisions 6, 7; 340A.404, subdivision 2; 340A.418; 1.8 340A.504, subdivisions 1, 3, 4; Laws 2000, chapter 1.9 440, section 10; Laws 2003, chapter 126, section 28. 1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11 Section 1. Minnesota Statutes 2004, section 340A.301, 1.12 subdivision 6, is amended to read: 1.13 Subd. 6. [FEES.] The annual fees for licenses under this 1.14 section are as follows: 1.15 (a) Manufacturers (except as provided 1.16 in clauses (b) and (c)) $15,000 1.17 Duplicates $ 3,000 1.18 (b) Manufacturers of wines of not more 1.19 than 25 percent alcohol by volume $ 500 1.20 (c) Brewers other than those described 1.21 in clauses (d) and (i) $ 2,500 1.22 (d) Brewers who also hold one or more 1.23 retail on-sale licenses and who 1.24 manufacture fewer than 3,500 barrels 1.25 of malt liquor in a year, at any one 1.26 licensed premises,using only wort produced1.27in Minnesota,the entire 2.1 production of which is solely 2.2 for consumption on tap on the 2.3 licensed premises or for off-sale 2.4 from that licensed premises. 2.5 A brewer licensed under this clause 2.6 must obtain a separate license 2.7 for each licensed premises where 2.8 the brewer brews malt liquor. A brewer 2.9 licensed under this clause may not be 2.10 licensed as an importer under this chapter $ 500 2.11 (e) Wholesalers (except as provided in 2.12 clauses (f), (g), and (h)) $15,000 2.13 Duplicates $ 3,000 2.14 (f) Wholesalers of wines of not more 2.15 than 25 percent alcohol by volume $ 2,000 2.16 (g) Wholesalers of intoxicating 2.17 malt liquor $ 600 2.18 Duplicates $ 25 2.19 (h) Wholesalers of 3.2 percent 2.20 malt liquor $ 10 2.21 (i) Brewers who manufacture fewer than 2.22 2,000 barrels of malt liquor in a year $ 150 2.23 If a business licensed under this section is destroyed, or 2.24 damaged to the extent that it cannot be carried on, or if it 2.25 ceases because of the death or illness of the licensee, the 2.26 commissioner may refund the license fee for the balance of the 2.27 license period to the licensee or to the licensee's estate. 2.28 Sec. 2. Minnesota Statutes 2004, section 340A.301, 2.29 subdivision 7, is amended to read: 2.30 Subd. 7. [INTEREST IN OTHER BUSINESS.] (a) Except as 2.31 provided in this subdivision, a holder of a license as a 2.32 manufacturer, brewer, importer, or wholesaler may not have any 2.33 ownership, in whole or in part, in a business holding a retail 2.34 intoxicating liquor or 3.2 percent malt liquor license. The 2.35 commissioner may not issue a license under this section to a 2.36 manufacturer, brewer, importer, or wholesaler if a retailer of 3.1 intoxicating liquor has a direct or indirect interest in the 3.2 manufacturer, brewer, importer, or wholesaler. A manufacturer 3.3 or wholesaler of intoxicating liquor may use or have property 3.4 rented for retail intoxicating liquor sales only if the 3.5 manufacturer or wholesaler has owned the property continuously 3.6 since November 1, 1933. A retailer of intoxicating liquor may 3.7 not use or have property rented for the manufacture or 3.8 wholesaling of intoxicating liquor. 3.9 (b) A brewer licensed under subdivision 6, clause (d), may 3.10 be issued an on-sale intoxicating liquor or 3.2 percent malt 3.11 liquor license by a municipality for a restaurant operated in 3.12 the place of manufacture. Notwithstanding section 340A.405, a 3.13 brewer who holds an on-sale license issued pursuant to this 3.14 paragraph may, with the approval of the commissioner, be issued 3.15 a license by a municipality for off-sale of malt liquor produced 3.16 and packaged on the licensed premises. Off-sale of malt liquor 3.17 shall be limited to the legal hours for off-sale at exclusive 3.18 liquor stores in the jurisdiction in which the brewer is 3.19 located, and the malt liquor sold off-sale must be removed from 3.20 the premises before the applicable off-sale closing time at 3.21 exclusive liquor stores. The malt liquor shall be packaged in 3.22 64-ounce containers commonly known as "growlers." The 3.23 containers shall bear a twist-type closure, cork, stopper, or 3.24 plug. At the time of the sale, a paper or plastic adhesive 3.25 band, strip, or sleeve shall be applied to the container and 3.26 extend over the top of the twist-type closure, cork, stopper, or 3.27 plug forming a seal that must be broken upon opening of the 3.28 container. The adhesive band, strip, or sleeve shall bear the 3.29 name and address of the brewer. The containers shall be 3.30 identified as malt liquor, contain the name of the malt liquor, 3.31 bear the name and address of the brewer selling the malt liquor, 3.32 and shall be considered intoxicating liquor unless the alcoholic 3.33 content is labeled as otherwise in accordance with the 3.34 provisions of Minnesota Rules, part 7515.1100. A brewer's total 3.35 retail sales at on- or off-sale under this paragraph may not 3.36 exceed 3,500 barrels per year, provided that off-sales may not 4.1 total more than50 percent of the brewer's production or500 4.2 barrels, whichever is less. A brewer licensed under subdivision 4.3 6, clause (d), may hold or have an interest in other retail 4.4 on-sale licenses, but may not have an ownership interest in 4.5 whole or in part, or be an officer, director, agent, or employee 4.6 of, any other manufacturer, brewer, importer, or wholesaler, or 4.7 be an affiliate thereof whether the affiliation is corporate or 4.8 by management, direction, or control. Notwithstanding this 4.9 prohibition, a brewer licensed under subdivision 6, clause (d), 4.10 may be an affiliate or subsidiary company of a brewer licensed 4.11 in Minnesota or elsewhere if that brewer's only manufacture of 4.12 malt liquor is: 4.13 (i) manufacture licensed under subdivision 6, clause (d); 4.14 (ii) manufacture in another state for consumption 4.15 exclusively in a restaurant located in the place of manufacture; 4.16 or 4.17 (iii) manufacture in another state for consumption 4.18 primarily in a restaurant located in or immediately adjacent to 4.19 the place of manufacture if the brewer was licensed under 4.20 subdivision 6, clause (d), on January 1, 1995. 4.21 (c) Except as provided in subdivision 7a, no brewer as 4.22 defined in subdivision 7a or importer may have any interest, in 4.23 whole or in part, directly or indirectly, in the license, 4.24 business, assets, or corporate stock of a licensed malt liquor 4.25 wholesaler. 4.26 Sec. 3. Minnesota Statutes 2004, section 340A.404, 4.27 subdivision 2, is amended to read: 4.28 Subd. 2. [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The 4.29 city of Minneapolis may issue an on-sale intoxicating liquor 4.30 license to the Guthrie Theater, the Cricket Theatre, the Orpheum 4.31 Theatre, the State Theatre, and the Historic Pantages Theatre, 4.32 notwithstanding the limitations of law, or local ordinance, or 4.33 charter provision relating to zoning or school or church 4.34 distances. The licenses authorize sales on all days of the week 4.35 to holders of tickets for performances presented by the theaters 4.36 and to members of the nonprofit corporations holding the 5.1 licenses and to their guests. 5.2 (b) The city of Minneapolis may issue an intoxicating 5.3 liquor license to 510 Groveland Associates, a Minnesota 5.4 cooperative, for use by a restaurant on the premises owned by 5.5 510 Groveland Associates, notwithstanding limitations of law, or 5.6 local ordinance, or charter provision. 5.7 (c) The city of Minneapolis may issue an on-sale 5.8 intoxicating liquor license to Zuhrah Shrine Temple for use on 5.9 the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue 5.10 South in Minneapolis, and to the American Swedish Institute for 5.11 use on the premises owned by the American Swedish Institute at 5.12 2600 Park Avenue South, notwithstanding limitations of law, or 5.13 local ordinances, or charter provision relating to zoning or 5.14 school or church distances. 5.15 (d) The city of Minneapolis may issue an on-sale 5.16 intoxicating liquor license to the American Association of 5.17 University Women, Minneapolis branch, for use on the premises 5.18 owned by the American Association of University Women, 5.19 Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, 5.20 notwithstanding limitations of law, or local ordinances, or 5.21 charter provisions relating to zoning or school or church 5.22 distances. 5.23 (e) The city of Minneapolis may issue an on-sale wine 5.24 license and an on-sale 3.2 percent malt liquor license to a 5.25 restaurant located at 5000 Penn Avenue South, and an on-sale 5.26 wine license and an on-sale malt liquor license to a restaurant 5.27 located at 1931 Nicollet Avenue South, notwithstanding any law 5.28 or local ordinance or charter provision. 5.29 (f) The city of Minneapolis may issue an on-sale wine 5.30 license and an on-sale malt liquor license to the Brave New 5.31 Workshop Theatre located at 3001 Hennepin Avenue South, the 5.32 Theatre de la Jeune Lune, the Illusion Theatre located at 528 5.33 Hennepin Avenue South, the Hollywood Theatre located at 2815 5.34 Johnson Street Northeast, the Loring Playhouse located at 1633 5.35 Hennepin Avenue South, the Jungle Theater located at 2951 5.36 Lyndale Avenue South, Brave New Institute located at 2605 6.1 Hennepin Avenue South, the Guthrie Lab located at 700 North 6.2 First Street, and the Southern Theatre located at 1420 6.3 Washington Avenue South, notwithstanding any law or local 6.4 ordinance or charter provision. The license authorizes sales on 6.5 all days of the week. 6.6 (g) The city of Minneapolis may issue an on-sale 6.7 intoxicating liquor license to University Gateway Corporation, a 6.8 Minnesota nonprofit corporation, for use by a restaurant or 6.9 catering operator at the building owned and operated by the 6.10 University Gateway Corporation on the University of Minnesota 6.11 campus, notwithstanding limitations of law, or local ordinance 6.12 or charter provision. The license authorizes sales on all days 6.13 of the week. 6.14 (h) The city of Minneapolis may issue an on-sale 6.15 intoxicating liquor license to the Guthrie Theater's 6.16 concessionaire or operator for a restaurant and catering 6.17 operator on the premises of the Guthrie Theater, notwithstanding 6.18 limitations of law, local ordinance, or charter provisions. The 6.19 license authorizes sales on all days of the week. 6.20 [EFFECTIVE DATE.] This section is effective the day 6.21 following final enactment. 6.22 Sec. 4. Minnesota Statutes 2004, section 340A.418, is 6.23 amended to read: 6.24 340A.418 [WINE TASTINGS.] 6.25 Subdivision 1. [DEFINITION.] For purposes of this section, 6.26 a "wine tasting" is an eventof not more than four hours'6.27durationat which persons pay a fee or donation to participate, 6.28 and are allowed to consume wine by the glass without paying a 6.29 separate charge for each glass. 6.30 Subd. 2. [TASTINGS AUTHORIZED.] (a) A charitable, 6.31 religious, or other nonprofit organization may conduct a wine 6.32 tasting of not more than four hours duration on premises the 6.33 organization owns or leases or has use donated to it, or on the 6.34 licensed premises of a holder of an on-sale intoxicating liquor 6.35 license that is not a temporary license, if the organization 6.36 holds a temporary on-sale intoxicating liquor license under 7.1 section 340A.404, subdivision 10, and complies with this 7.2 section. An organization holding a temporary license may be 7.3 assisted in conducting the wine tasting by another nonprofit 7.4 organization. 7.5 (b) An organization that conducts a wine tasting under this 7.6 section may use the net proceeds from the wine tasting only for: 7.7 (1) the organization's primary nonprofit purpose; or 7.8 (2) donation to another nonprofit organization assisting in 7.9 the wine tasting, if the other nonprofit organization uses the 7.10 donation only for that organization's primary nonprofit purpose. 7.11 (c) No wine at a wine tasting under this section may be 7.12 sold, or orders taken, for off-premises consumption. 7.13 (d) Notwithstanding any other law, an organization may 7.14 purchase or otherwise obtain wine for a wine tasting conducted 7.15 under this section from a wholesaler licensed to sell wine, and 7.16 the wholesaler may sell or give wine to an organization for a 7.17 wine tasting conducted under this section and may provide 7.18 personnel to assist in the wine tasting. A wholesaler who sells 7.19 or gives wine to an organization for a wine tasting under this 7.20 section must deliver the wine directly to the location where the 7.21 wine tasting is conducted. 7.22 (e) This section does not prohibit or restrict a wine 7.23 tasting that is: 7.24 (1) located on on-sale premises where no charitable 7.25 organization is participating; or 7.26 (2) located on on-sale premises where the proceeds are for 7.27 a designated charity but where the tasting is primarily for 7.28 educational purposes. 7.29 (f) The four-hour limitation specified in paragraph (a) 7.30 shall not apply to a wine tasting at a convention of fine wine 7.31 and gourmet food exhibitors, provided the convention has at 7.32 least 100 exhibitors and takes place over not more than three 7.33 days. 7.34 Sec. 5. Minnesota Statutes 2004, section 340A.504, 7.35 subdivision 1, is amended to read: 7.36 Subdivision 1. [3.2 PERCENT MALT LIQUOR.] No sale of 3.2 8.1 percent malt liquor may be made between 2:00 a.m. and 8:00 a.m. 8.2 on the days of Monday through Saturday, nor between 2:00 a.m. 8.3 and12:00 noon10:00 a.m. on Sunday, provided that an8.4establishment located on land owned by the Metropolitan Sports8.5Commission, or the sports arena for which one or more licenses8.6have been issued under section 340A.404, subdivision 2,8.7paragraph (c), may sell 3.2 percent malt liquor between 10:008.8a.m. and 12:00 noon on a Sunday on which a sports or other event8.9is scheduled to begin at that location on or before 1:00 p.m. of8.10that day. 8.11 Sec. 6. Minnesota Statutes 2004, section 340A.504, 8.12 subdivision 3, is amended to read: 8.13 Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 8.14 A restaurant, club, bowling center, or hotel with a seating 8.15 capacity for at least 30 persons and which holds an on-sale 8.16 intoxicating liquor license may sell intoxicating liquor for 8.17 consumption on the premises in conjunction with the sale of food 8.18 between the hours of12:00 noon10:00 a.m. on Sundays and 2:00 8.19 a.m. on Mondays. 8.20 (b)The governing body of a municipality may after one8.21public hearing by ordinance permit a restaurant, hotel, bowling8.22center, or club to sell alcoholic beverages for consumption on8.23the premises in conjunction with the sale of food between the8.24hours of 10:00 a.m. on Sundays and 2:00 a.m. on Mondays,8.25provided that the licensee is in conformance with the Minnesota8.26Clean Air Act.8.27(c)An establishment serving intoxicating liquor on Sundays 8.28 must obtain a Sunday license. The license must be issued by the 8.29 governing body of the municipality for a period of one year, and 8.30 the fee for the license may not exceed $200. 8.31(d)(c) A city may issue a Sunday intoxicating liquor 8.32 license only if authorized to do so by the voters of the city 8.33 voting on the question at a general or special election. A 8.34 county may issue a Sunday intoxicating liquor license in a town 8.35 only if authorized to do so by the voters of the town as 8.36 provided in paragraph(e)(d). A county may issue a Sunday 9.1 intoxicating liquor license in unorganized territory only if 9.2 authorized to do so by the voters of the election precinct that 9.3 contains the licensed premises, voting on the question at a 9.4 general or special election. 9.5(e)(d) An election conducted in a town on the question of 9.6 the issuance by the county of Sunday sales licenses to 9.7 establishments located in the town must be held on the day of 9.8 the annual election of town officers. 9.9(f)(e) Voter approval is not required for licenses issued 9.10 by the Metropolitan Airports Commission or common carrier 9.11 licenses issued by the commissioner. Common carriers serving 9.12 intoxicating liquor on Sunday must obtain a Sunday license from 9.13 the commissioner at an annual fee of $50, plus $20 for each 9.14 duplicate. 9.15 Sec. 7. Minnesota Statutes 2004, section 340A.504, 9.16 subdivision 4, is amended to read: 9.17 Subd. 4. [INTOXICATING LIQUOR; OFF-SALE.] No sale of 9.18 intoxicating liquor may be made by an off-sale licensee: 9.19 (1) on Sundays; 9.20 (2) before 8:00 a.m. or after 10:00 p.m. on Monday through 9.21 Saturday; 9.22 (3)after 10:00 p.m. on Monday through Saturday at an9.23establishment located in a city other than a city of the first9.24class or within a city located within 15 miles of a city of the9.25first class in the same county;9.26(4) after 8:00 p.m. on Monday through Thursday and after9.2710:00 p.m. on Friday and Saturday at an establishment located in9.28a city of the first class or within a city located within 159.29miles of a city of the first class in the same county, provided9.30that an establishment may sell intoxicating liquor until 10:009.31p.m. on December 31 and July 3, and on the day preceding9.32Thanksgiving day, unless otherwise prohibited under clause (1);9.33(5)on Thanksgiving Day; 9.34(6)(4) on Christmas Day, December 25; or 9.35(7)(5) after 8:00 p.m. on Christmas Eve, December 24. 9.36 Sec. 8. Laws 2000, chapter 440, section 10, is amended to 10.1 read: 10.2 Sec. 10. [WINE LICENSE; MAIN STREET STAGE THEATRE.] 10.3 The city of Anoka may issue an on-sale wine and malt liquor 10.4 license to the Lyric Arts Company of Anoka, Inc. for the Main 10.5 Street Stage Theatre. The license authorizes sales of wine and 10.6 malt liquor on all days of the week to holders of tickets for 10.7 performances at the theater. All provisions of Minnesota 10.8 Statutes, chapter 340A, not inconsistent with this section, 10.9 apply to the license authorized under this section. 10.10 [EFFECTIVE DATE.] This section is effective on approval by 10.11 the Anoka City Council and compliance with Minnesota Statutes, 10.12 section 645.021. 10.13 Sec. 9. Laws 2003, chapter 126, section 28, is amended to 10.14 read: 10.15 Sec. 28. [ELKO SPEEDWAY; ON-SALE LICENSE.] 10.16 Notwithstanding Minnesota Statutes, section 340A.404, 10.17 subdivision 1, the city of Elko may issue an on-sale 10.18 intoxicating liquor license to the Elko Speedway in addition to 10.19 the number authorized by law. The license may authorize sales 10.20onlyboth to persons attendingracingany and all events, and 10.21 sales in a restaurant/bar/banquet facility, at the speedway. 10.22 The license authorizes sales on all days of the week. All 10.23 provisions of Minnesota Statutes, chapter 340A, not inconsistent 10.24 with this provision, apply to the license authorized under this 10.25 section. The license may be issued for a space that is not 10.26 compact and contiguous, provided that the licensed premises may 10.27 include only the space within the fencedgrandstandarea as 10.28 described in the approved license application. 10.29 [EFFECTIVE DATE.] This section is effective upon approval 10.30 by the Elko City Council and compliance with Minnesota Statutes, 10.31 section 645.021. 10.32 Sec. 10. [CITY OF CALEDONIA; LIQUOR LICENSE.] 10.33 Notwithstanding any other law, the city of Caledonia may 10.34 issue an on-sale intoxicating liquor license to Caledonia Area 10.35 Community Charities, Inc., for the Four Seasons Center in 10.36 Caledonia. The license authorizes the licensee to dispense 11.1 intoxicating liquor only to persons attending events at the 11.2 center. All provisions of Minnesota Statutes, chapter 340A, not 11.3 inconsistent with this section, apply to the license authorized 11.4 under this section. 11.5 [EFFECTIVE DATE.] This section is effective the day 11.6 following final enactment. 11.7 Sec. 11. [DETROIT LAKES; ON-SALE.] 11.8 Notwithstanding Minnesota Statutes, section 340A.404, 11.9 subdivision 1, the city of Detroit Lakes may issue an on-sale 11.10 intoxicating liquor license, or an on-sale wine license and an 11.11 on-sale malt liquor license, to the Castaway Inn and Resort 11.12 located at 1200 East Shore Drive, notwithstanding any law, local 11.13 ordinance, or charter provision. The license may authorize 11.14 sales only to persons who are registered guests at the lodging 11.15 establishment, their invitees, or persons attending the spa, a 11.16 conference, a meeting, or other events at the lodging 11.17 establishment. The license authorizes sales on all days of the 11.18 week. 11.19 Sec. 12. [CITY OF DULUTH; ON-SALE LICENSE.] 11.20 Notwithstanding any other law, local ordinance, or charter 11.21 provision, the city of Duluth may issue an on-sale intoxicating 11.22 liquor license for the premises known and used as the Enger Park 11.23 Golf Course, or for any portion of the premises as described in 11.24 the approved license application. The license may be issued to 11.25 the city or to any person or corporation under contract or 11.26 agreement with the city with respect to operation of the golf 11.27 course. All provisions of Minnesota Statutes, chapter 340A, not 11.28 inconsistent herewith, apply to the license authorized under 11.29 this section. 11.30 [EFFECTIVE DATE.] This section is effective the day 11.31 following final enactment. 11.32 Sec. 13. [CITY OF EDEN PRAIRIE; ON-SALE LICENSE.] 11.33 Notwithstanding any law, local ordinance, or charter 11.34 provision, the city of Eden Prairie may issue an on-sale 11.35 intoxicating liquor license to any entity holding an operating 11.36 food service contract with the city for the operation of the 12.1 cafeteria, for use by the entity at the premises owned by the 12.2 city of Eden Prairie, at 8080 Mitchell Road in Eden Prairie. 12.3 The license authorizes sales on all days of the week to persons 12.4 attending special events in the cafeteria. The licensee may not 12.5 dispense intoxicating liquor to any person attending or 12.6 participating in an amateur athletic event held on the premises 12.7 unless such dispensing is authorized by resolution of the city 12.8 council. The license authorized by this subdivision may be 12.9 issued for space that is not compact and contiguous, provided 12.10 that all such space is within the City Center building and is 12.11 included in the description of the licensed premises on the 12.12 approved license application. 12.13 [EFFECTIVE DATE.] This section is effective the day 12.14 following final enactment. 12.15 Sec. 14. [MANKATO; ON-SALE INTOXICATING LIQUOR LICENSE.] 12.16 The city of Mankato may issue an on-sale intoxicating 12.17 liquor license to the premises known as the Midwest Wireless 12.18 Civic Center. The license authorizes sales on all days of the 12.19 week to persons attending events at the center. All provisions 12.20 of Minnesota Statutes, chapter 340A, not inconsistent with this 12.21 section, apply to the license authorized under this section. 12.22 [EFFECTIVE DATE.] This section is effective the day 12.23 following final enactment. 12.24 Sec. 15. [OFF-SALE INTOXICATING LIQUOR LICENSE; MILLE LACS 12.25 COUNTY.] 12.26 Notwithstanding Minnesota Statutes, section 340A.405, 12.27 subdivision 2, paragraph (e), the Mille Lacs County Board may 12.28 issue an off-sale intoxicating liquor license to an exclusive 12.29 liquor store located in Eastside Township. All other provisions 12.30 of Minnesota Statutes, chapter 340A, not inconsistent with this 12.31 section, apply to the license authorized under this section. 12.32 [EFFECTIVE DATE.] This section is effective the day 12.33 following final enactment.