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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                             CHAPTER 25-S.F.No. 171 
                  An act relating to liquor; providing for conformity in 
                  license fees and production levels for brewpubs and 
                  small brewers; authorizing issuance of temporary 
                  licenses to small brewers; authorizing off-sale of 
                  growlers by small brewers; providing that the on-sale 
                  license for Elko Speedway authorizes sales on all days 
                  of the week; changing the issuer of a certain license 
                  at the state fair; authorizing the city of Duluth to 
                  issue a liquor license for Wade Municipal Stadium; 
                  authorizing the city of St. Paul to issue a liquor 
                  license for special events at the State Capitol; 
                  amending Minnesota Statutes 2004, sections 340A.301, 
                  subdivisions 6, 7; 340A.404, subdivision 10; Laws 
                  2003, chapter 126, sections 28, 29; proposing coding 
                  for new law in Minnesota Statutes, chapter 340A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, 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) who
              manufacture more than 3,500 barrels
              of malt liquor in a year                   $ 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
          (j) Brewers who manufacture 2,000 to
              3,500 barrels of malt liquor in a
              year                                       $   500
           If a business licensed under this section is destroyed, or 
        damaged to the extent that it cannot be carried on, or if it 
        ceases because of the death or illness of the licensee, the 
        commissioner may refund the license fee for the balance of the 
        license period to the licensee or to the licensee's estate. 
           Sec. 2.  Minnesota Statutes 2004, section 340A.301, 
        subdivision 7, is amended to read: 
           Subd. 7.  [INTEREST IN OTHER BUSINESS.] (a) Except as 
        provided in this subdivision, a holder of a license as a 
        manufacturer, brewer, importer, or wholesaler may not have any 
        ownership, in whole or in part, in a business holding a retail 
        intoxicating liquor or 3.2 percent malt liquor license.  The 
        commissioner may not issue a license under this section to a 
        manufacturer, brewer, importer, or wholesaler if a retailer of 
        intoxicating liquor has a direct or indirect interest in the 
        manufacturer, brewer, importer, or wholesaler.  A manufacturer 
        or wholesaler of intoxicating liquor may use or have property 
        rented for retail intoxicating liquor sales only if the 
        manufacturer or wholesaler has owned the property continuously 
        since November 1, 1933.  A retailer of intoxicating liquor may 
        not use or have property rented for the manufacture or 
        wholesaling of intoxicating liquor. 
           (b) A brewer licensed under subdivision 6, clause (d), may 
        be issued an on-sale intoxicating liquor or 3.2 percent malt 
        liquor license by a municipality for a restaurant operated in 
        the place of manufacture.  Notwithstanding section 340A.405, a 
        brewer who holds an on-sale license issued pursuant to this 
        paragraph or a brewer who manufactures fewer than 3,500 barrels 
        of malt liquor in a year may, with the approval of the 
        commissioner, be issued a license by a municipality for off-sale 
        of malt liquor produced and packaged on the licensed premises.  
        Off-sale of malt liquor shall be limited to the legal hours for 
        off-sale at exclusive liquor stores in the jurisdiction in which 
        the brewer is located, and the malt liquor sold off-sale must be 
        removed from the premises before the applicable off-sale closing 
        time at exclusive liquor stores.  The malt liquor shall be 
        packaged in 64-ounce containers commonly known as "growlers."  
        The containers shall bear a twist-type closure, cork, stopper, 
        or plug.  At the time of the sale, a paper or plastic adhesive 
        band, strip, or sleeve shall be applied to the container and 
        extend over the top of the twist-type closure, cork, stopper, or 
        plug forming a seal that must be broken upon opening of the 
        container.  The adhesive band, strip, or sleeve shall bear the 
        name and address of the brewer.  The containers shall be 
        identified as malt liquor, contain the name of the malt liquor, 
        bear the name and address of the brewer selling the malt liquor, 
        and shall be considered intoxicating liquor unless the alcoholic 
        content is labeled as otherwise in accordance with the 
        provisions of Minnesota Rules, part 7515.1100.  A brewer's total 
        retail sales at on- or off-sale under this paragraph may not 
        exceed 3,500 barrels per year, provided that off-sales may not 
        total more than 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. 3.  Minnesota Statutes 2004, section 340A.404, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TEMPORARY ON-SALE LICENSES.] (a) The governing 
        body of a municipality may issue to (1) a club or charitable, 
        religious, or other nonprofit organization in existence for at 
        least three years, (2) a political committee registered under 
        section 10A.14, or (3) a state university, a temporary license 
        for the on-sale of intoxicating liquor in connection with a 
        social event within the municipality sponsored by the licensee.  
        The license may authorize the on-sale of intoxicating liquor for 
        not more than four consecutive days, and may authorize on-sales 
        on premises other than premises the licensee owns or permanently 
        occupies.  The license may provide that the licensee may 
        contract for intoxicating liquor catering services with the 
        holder of a full-year on-sale intoxicating liquor license issued 
        by any municipality.  The licenses are subject to the terms, 
        including a license fee, imposed by the issuing municipality.  
        Licenses issued under this subdivision are subject to all laws 
        and ordinances governing the sale of intoxicating liquor except 
        sections 340A.409 and 340A.504, subdivision 3, paragraph (d), 
        and those laws and ordinances which by their nature are not 
        applicable.  Licenses under this subdivision are not valid 
        unless first approved by the commissioner of public safety. 
           (b) A county under this section may issue a temporary 
        license only to a premises located in the unincorporated or 
        unorganized territory of the county. 
           (c) The governing body of a municipality may issue to a 
        brewer who manufactures fewer than 3,500 barrels of malt liquor 
        in a year a temporary license for the on-sale of intoxicating 
        liquor in connection with a social event within the municipality 
        sponsored by the brewer.  The terms and conditions specified for 
        temporary licenses under paragraph (a) shall apply to a license 
        issued under this paragraph, except that the requirements of 
        section 340A.409, subdivisions 1 to 3a, shall apply to the 
        license.  
           Sec. 4.  [340A.910] [SEVERABILITY.] 
           In the event that a court of competent jurisdiction holds 
        that any section of this chapter is unconstitutional or 
        otherwise invalid, the invalidity does not affect other 
        provisions or applications of this chapter that can be given 
        effect without the invalid provisions or application, and to 
        this end the provisions of this chapter are severable.  
           Sec. 5.  Laws 2003, chapter 126, section 28, is amended to 
        read: 
           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.  The 
        license authorizes sales on all days of the week.  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. 6.  Laws 2003, chapter 126, section 29, is amended to 
        read:  
           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 Ramsey County 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. 7.  [WADE MUNICIPAL STADIUM; LIQUOR LICENSE.] 
           Notwithstanding any other law to the contrary, the city of 
        Duluth may issue an on-sale wine and malt liquor license in 
        addition to the number authorized by law for the premises known 
        as Wade Municipal Stadium for use during baseball games and 
        other events sponsored by the Duluth Huskies.  The license may 
        authorize the sale and consumption of wine and malt liquor in 
        the grandstand and dining areas of the stadium.  The license 
        authorizes sales on all days of the week.  
           Sec. 8.  [CITY OF MINNEAPOLIS; LIQUOR LICENSE.] 
           Notwithstanding any law, ordinance, or charter provision to 
        the contrary, the city of Minneapolis may issue an intoxicating 
        liquor license to an establishment located at 2200 Como Avenue 
        Southeast, which currently holds an on-sale wine license.  
           Sec. 9.  [STATE CAPITOL CENTENNIAL EVENTS.] 
           Notwithstanding any other law to the contrary, the city of 
        St. Paul may issue an on-sale wine and malt liquor license to 
        the Capitol 2005 Commission or Friends of the Minnesota State 
        Capitol for special events held in the State Capitol and on the 
        Capitol grounds relating to the centennial anniversary of the 
        Capitol building.  The license authorized by this section is 
        valid until January 2, 2006.  All provisions of Minnesota 
        Statutes, chapter 340A, not inconsistent with this section apply 
        to the license authorized by this section.  
           Sec. 10.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 2005.  Sections 2 to 4, 6, 
        7, 8, and 9 are effective the day following final enactment.  
        Section 5 is effective on approval by the Elko City Council and 
        compliance with Minnesota Statutes, section 645.021. 
           Presented to the governor April 19, 2005 
           Signed by the governor April 22, 2005, 6:05 a.m.