Key: (1) language to be deleted (2) new language
CHAPTER 126-H.F.No. 719 An act relating to liquor; allowing brewpubs to make off-sales of the brewpub's own product under certain circumstances; modifying a posting requirement; modifying licensing provisions; expanding sale hours; modifying sampling provisions; authorizing certain local on-sale licenses; amending Minnesota Statutes 2002, sections 340A.101, by adding a subdivision; 340A.301, subdivisions 6, 7; 340A.308; 340A.318, subdivision 3; 340A.404, subdivisions 1, 2; 340A.411, subdivision 1; 340A.413, subdivision 4; 340A.504, subdivisions 1, 2, 3; 340A.510, subdivisions 1, 2; 340A.511. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2002, section 340A.101, is amended by adding a subdivision to read: Subd. 27a. [THEATER.] "Theater" means a building containing an auditorium in which live dramatic, musical, dance, or literary performances are regularly presented to holders of tickets for those performances. Sec. 2. Minnesota Statutes 2002, 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)) $15,000 Duplicates $ 3,000 (b) Manufacturers of wines of not more than 25 percent alcohol by volume $ 500 (c) Brewers other than those described in clauses (d) and (i) $ 2,500 (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, using only wort produced in Minnesota, the entire production of which is solely for consumption on tap on the licensed premises or for off-sale from that licensed premises. A brewer licensed under this clause must obtain a separate license for each licensed premises 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 $ 2,000 (g) Wholesalers of intoxicating malt liquor $ 600 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 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. 3. Minnesota Statutes 2002, 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.Malt liquor brewed by such a licenseemay not be removed from the licensed premises unless the maltliquor is entered in a tasting competition where none of themalt liquor so removed is soldNotwithstanding section 340A.405, a brewer who holds an on-sale license issued pursuant to this paragraph 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 50 percent of the brewer's production or 500 barrels, whichever is less. 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. Sec. 4. Minnesota Statutes 2002, section 340A.308, is amended to read: 340A.308 [PROHIBITED TRANSACTIONS.] (a) Except as otherwise provided in section 340A.301, no brewer or malt liquor wholesaler may directly or indirectly, or through an affiliate or subsidiary company, or through an officer, director, stockholder, or partner: (1) give, or lend money, credit, or other thing of value to a retailer; (2) give, lend, lease, or sell furnishing or equipment to a retailer; (3) have an interest in a retail license; or (4) be bound for the repayment of a loan to a retailer. (b) No retailer may solicit any equipment, fixture, supplies, money, or other thing of value from a brewer or malt liquor wholesaler if furnishing of these items by the brewer or wholesaler is prohibited by law and the retailer knew or had reason to know that the furnishing is prohibited by law. (c) This section does not prohibit a manufacturer or wholesaler from: (1) furnishing, lending, or renting to a retailer outside signs, of a cost of up to $400 excluding installation and repair costs; (2) furnishing, lending, or renting to a retailer inside signs and other promotional material, of a cost of up to $300 in a year; (3) furnishing to or maintaining for a retailer equipment for dispensing malt liquor, including tap trailers, cold plates and other dispensing equipment, of a cost of up to $100 per tap in a year; (4) using or renting property owned continually since November 1, 1933, for the purpose of selling intoxicating or 3.2 percent malt liquor at retail; (5) extending customary commercial credit to a retailer in connection with a sale of nonalcoholic beverages only, or engaging in cooperative advertising agreements with a retailer in connection with the sale of nonalcoholic beverages only; or (6) in the case of a wholesaler, with the prior written consent of the commissioner, selling beer on consignment to a holder of a temporary license under section 340A.403, subdivision 2, or 340A.404, subdivision 10. Sec. 5. Minnesota Statutes 2002, section 340A.318, subdivision 3, is amended to read: Subd. 3. [POSTING; NOTICE.] Verified lists or statements required by subdivision 2 shall be posted by the commissioner in offices of the department in places available for public inspection not later than thedayMonday following receipt. Documents posted shall constitute notice to every distiller, manufacturer, or wholesaler of the information posted. Actual notice, however received, also constitutes notice. Sec. 6. Minnesota Statutes 2002, 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; (5) sports facilities located on land owned by the metropolitan sports commission; and (6) exclusive liquor stores. (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. Sec. 7. Minnesota Statutes 2002, section 340A.404, subdivision 2, is amended to read: Subd. 2. [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the Orpheum Theatre,andthe State Theatre, and the Historic Pantages Theatre, notwithstanding the limitations of law, or local ordinance, or charter provision relating to zoning or school or church distances. The licenses authorize sales on all days of the week to holders of tickets for performances presented by the theaters and to members of the nonprofit corporations holding the licenses and to their guests. (b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510 Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter provision. (c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue South in Minneapolis, and to the American Swedish Institute for use on the premises owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding limitations of law, or local ordinances, or charter provision relating to zoning or school or church distances. (d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the American Association of University Women, Minneapolis branch, for use on the premises owned by the American Association of University Women, Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter provisions relating to zoning or school or church distances. (e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent malt liquor license to a restaurant located at 5000 Penn Avenue South, and an on-sale wine license and an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue South, notwithstanding any law or local ordinance or charter provision. (f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue South, the Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located at 1633 Hennepin Avenue South,andthe Jungle Theater located at 2951 Lyndale Avenue South, Brave New Institute located at 2605 Hennepin Avenue South, the Guthrie Lab located at 700 North First Street, and the Southern Theatre located at 1420 Washington Avenue South, notwithstanding any law or local ordinance or charter provision. The license authorizes sales on all days of the week. (g) The city of Minneapolis may issue an on-sale intoxicating liquor license to University Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant or catering operator at the building owned and operated by the University Gateway Corporation on the University of Minnesota campus, notwithstanding limitations of law, or local ordinance or charter provision. The license authorizes sales on all days of the week. Sec. 8. Minnesota Statutes 2002, section 340A.411, subdivision 1, is amended to read: Subdivision 1. [ON-SALE LICENSES.] On-sale 3.2 percent malt liquor licenses may only be issued to drugstores, restaurants, hotels, clubs, bowling centers, golf courses, and establishments used exclusively for the sale of 3.2 percent malt liquor with the incidental sale of tobacco and soft drinks. Sec. 9. Minnesota Statutes 2002, section 340A.413, subdivision 4, is amended to read: Subd. 4. [EXCLUSIONS FROM LICENSE LIMITS.] On-sale intoxicating liquor licenses may be issued to the following entities by a city, in addition to the number authorized by this section: (1) clubs, or congressionally chartered veterans organizations; (2) restaurantslocated at a racetrack licensed underchapter 240; (3) establishments that are issued licenses to sell wine under section 340A.404, subdivision 5;and(4) theaters that are issued licenses under section 340A.404, subdivision 2; (5) hotels; and (6) bowling centers. Sec. 10. Minnesota Statutes 2002, section 340A.504, subdivision 1, is amended to read: Subdivision 1. [3.2 PERCENT MALT LIQUOR.] No sale of 3.2 percent malt liquor may be made between1:002:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between1:002:00 a.m. and 12:00 noon on Sunday, provided that an establishment located on land owned by the metropolitan sports commission, or the sports arena for which one or more licenses have been issued under section 340A.404, subdivision 2, paragraph (c), may sell 3.2 percent malt liquor between 10:00 a.m. and 12:00 noon on a Sunday on which a sports or other event is scheduled to begin at that location on or before 1:00 p.m. of that day. Sec. 11. Minnesota Statutes 2002, section 340A.504, subdivision 2, is amended to read: Subd. 2. [INTOXICATING LIQUOR; ON-SALE.] No sale of intoxicating liquor for consumption on the licensed premises may be made: (1) between1:002:00 a.m. and 8:00 a.m. on the days of Monday through Saturday; (2) after1:002:00 a.m. on Sundays, except as provided by subdivision 3. Sec. 12. Minnesota Statutes 2002, section 340A.504, subdivision 3, is amended to read: Subd. 3. [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) A restaurant, club, bowling center, or hotel with a seating capacity for at least 30 persons and which holds an on-sale intoxicating liquor license may sell intoxicating liquor for consumption on the premises in conjunction with the sale of food between the hours of 12:00 noon on Sundays and1:002:00 a.m. on Mondays. (b) The governing body of a municipality may after one public hearing by ordinance permit a restaurant, hotel, bowling center, or club to sell alcoholic beverages for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. on Sundays and1:002:00 a.m. on Mondays, provided that the licensee is in conformance with the Minnesota Clean Air Act. (c) An establishment serving intoxicating liquor on Sundays must obtain a Sunday license. The license must be issued by the governing body of the municipality for a period of one year, and the fee for the license may not exceed $200. (d) A city may issue a Sunday intoxicating liquor license only if authorized to do so by the voters of the city voting on the question at a general or special election. A county may issue a Sunday intoxicating liquor license in a town only if authorized to do so by the voters of the town as provided in paragraph (e). A county may issue a Sunday intoxicating liquor license in unorganized territory only if authorized to do so by the voters of the election precinct that contains the licensed premises, voting on the question at a general or special election. (e) An election conducted in a town on the question of the issuance by the county of Sunday sales licenses to establishments located in the town must be held on the day of the annual election of town officers. (f) Voter approval is not required for licenses issued by the metropolitan airports commission or common carrier licenses issued by the commissioner. Common carriers serving intoxicating liquor on Sunday must obtain a Sunday license from the commissioner at an annual fee of $50, plus $20 for each duplicate. Sec. 13. Minnesota Statutes 2002, section 340A.510, subdivision 1, is amended to read: Subdivision 1. [SAMPLES FOR OTHER THAN MALT LIQUOR AUTHORIZED.] On- or off-salelicensesretail licensees and municipal liquor stores may provide, or permit a licensed manufacturer or a wholesaler or its agents to provide on the premises of the retail licensee or municipal liquor store, samples ofmalt liquor,wine, liqueurs, cordials, and distilled spirits which the retail licensee or municipal liquor store currently has in stock and is offering for sale to the general public without obtaining an additional license, provided the wine, liqueur, cordial, and distilled spirits samples are dispensed at no charge and consumed on the licensed premises during the permitted hours ofoff-salesale in a quantity less than100 milliliters of malt liquor per variety per customer,50 milliliters of wine per variety per customer, 25 milliliters of liqueur or cordial, and 15 milliliters of distilled spirits per variety per customer. Sec. 14. Minnesota Statutes 2002, section 340A.510, subdivision 2, is amended to read: Subd. 2. [MALT LIQUORFURNISHED FOR SAMPLINGSAMPLES AUTHORIZED.] (a) Notwithstanding section 340A.308,with respectonly to sampling authorized under subdivision 1,a brewer may purchase from or furnish at no cost toan off-salea licensed retailer malt liquor the brewer manufactures if: (1) the malt liquor is dispensed by the retailer only fortastings authorized under subdivision 1samples in a quantity of less than 100 milliliters of malt liquor per variety per customer; (2) where the brewer furnishes the malt liquor, the retailer makes available for return to the brewer any unused malt liquor and empty containers; (3) the samples are dispensed by an employee of the retailer or brewer or by a sampling service retained by the retailer or brewer and not affiliated directly or indirectly with a malt liquor wholesaler; (4)the brewer furnishesnot more than three cases of malt liquor are purchased from or furnished to the retailer by the brewer for each sampling; (5) each sampling continues for not more than eight hours; (6) the brewer has furnished malt liquor for not more than five samplings for any retailer in any calendar year; (7) where the brewer furnishes the malt liquor, the brewer delivers the malt liquor for the sampling to its exclusive wholesaler for that malt liquor; (8) the brewer has at least seven days before the sampling filed with the commissioner, on a form the commissioner prescribes, written notice of intent to furnish malt liquor for the sampling, which contains (i) the name and address of the retailer conducting the sampling, (ii) the maximum amount of malt liquorbeingto be furnished or purchased by the brewer, (iii) the number of times the brewer has furnished malt liquor to the retailer in the calendar year in which the notice is filed, (iv) the date and time of the sampling, (v) where the brewer furnishes the malt liquor, the exclusive wholesaler to whom the brewer will deliver the malt liquor, and (vi) a statement by the brewer to the effect that to the brewer's knowledge all requirements of this section have been or will be complied with; and (9) the commissioner has not notified the brewer filing the notice under clause (8) that the commissioner disapproves the notice. (b) For purposes of this subdivision, "licensed retailer" means a licensed on-sale or off-sale retailer of alcoholic beverages and a municipal liquor storethat sells at off-sale. Sec. 15. Minnesota Statutes 2002, section 340A.511, is amended to read: 340A.511 [CERTAIN SIZES MAY BE SOLD.] (a) An off-sale retailer of intoxicating liquor may sell distilled spirits in bottles of 50 milliliters. (b) An on-sale intoxicating liquor licensee whose licensed premises includes a golf course or who is a common carrier may dispense distilled spirits from 50-milliliter bottles. Sec. 16. [CITY OF BLAINE; ON-SALE LICENSES.] The city of Blaine may issue 15 on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section. Sec. 17. [CITY OF DULUTH; ON-SALE LICENSE.] The city of Duluth may issue one on-sale intoxicating liquor license in addition to the number authorized by law for the St. Louis County Heritage and Arts Center, commonly known as the Duluth Depot. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized by this section. Sec. 18. [CITY OF HASTINGS; ON-SALE LICENSES.] The city of Hastings may issue three on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section. Sec. 19. [CITY OF MAPLE GROVE; ON-SALE LICENSES.] The city of Maple Grove may issue 12 on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section. Sec. 20. [CITY OF ST. JOSEPH; ON-SALE LICENSES.] The city of St. Joseph may issue three on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section. Sec. 21. [CITY OF ST. MICHAEL; ON-SALE LICENSES.] The city of St. Michael may issue five on-sale liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section. Sec. 22. [CITY OF SARTELL; ON-SALE LICENSES.] The city of Sartell may issue five on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section. Sec. 23. [CITY OF STILLWATER; ON-SALE LICENSES.] The city of Stillwater may issue two on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section. Sec. 24. [CITY OF THIEF RIVER FALLS; ON-SALE LICENSE.] The city of Thief River Falls may issue one on-sale intoxicating liquor license in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply to the licenses authorized by this section. Sec. 25. [CITY OF WACONIA; ON-SALE LICENSES.] The city of Waconia may issue three on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized under this section. Sec. 26. [CITY OF WOODBURY; ON-SALE LICENSES.] The city of Woodbury may issue 12 on-sale intoxicating liquor licenses in addition to the number authorized by law. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the licenses authorized by this section. Sec. 27. [MINNESOTA CENTENNIAL SHOWBOAT.] The city of St. Paul may issue an on-sale intoxicating liquor license for the Minnesota Centennial Showboat, moored at 110 Yacht Club Road, Harriet Island, notwithstanding any law, local ordinance, or charter provision. The license must be issued to a holder of a river tour boat license under Minnesota Statutes, section 340A.404, subdivision 8. The license authorizes sales on all days of the week. Sec. 28. [ELKO SPEEDWAY; ON-SALE LICENSE.] Notwithstanding Minnesota Statutes, section 340A.404, subdivision 1, the city of Elko may issue an on-sale intoxicating liquor license to the Elko Speedway in addition to the number authorized by law. The license may authorize sales only to persons attending racing events at the speedway. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this provision, apply to the license authorized under this section. 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 the fenced grandstand area as described in the approved license application. Sec. 29. [WINE LICENSES; STATE FAIR.] (a) Notwithstanding Minnesota Statutes, sections 37.21 and 340A.412, subdivision 4, paragraph (a), clause (3), the city of St. Paul may issue a license to the holder of a state fair concessions contract with the state agricultural society which authorizes the licensee to sell Minnesota-produced wine by the glass at the state fair in connection with the sale of food by the concessionaire. All provisions of Minnesota Statutes, chapter 340A, not inconsistent herewith, apply to licenses issued under this section. (b) For purposes of this section "Minnesota-produced wine" means wine produced by a farm winery licensed under Minnesota Statutes, section 340A.315, and made from at least 75 percent Minnesota-grown grapes, grape juice, other fruit bases, other juices, and honey. Sec. 30. [EFFECTIVE DATE.] Sections 1 to 9 and 13 to 29 are effective the day following final enactment. Presented to the governor May 24, 2003 Signed by the governor May 28, 2003, 1:39 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes