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1995 Minnesota Session Laws

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                            CHAPTER 198-H.F.No. 1132 
                  An act relating to alcoholic beverages; providing 
                  restrictions on brewers who have retail on-sale 
                  licenses; imposing licensing and permitting 
                  requirements; requiring a license for charging for 
                  possession of alcoholic beverages; requiring a permit 
                  to allow consumption and display of all alcoholic 
                  beverages; authorizing additional licenses in 
                  Minneapolis; authorizing Clay, Stearns, and St. Louis 
                  counties and the city of International Falls to issue 
                  on-sale licenses; requiring a study of application of 
                  primary source law; defining home brewing equipment; 
                  listing items that may be sold in exclusive liquor 
                  stores; repealing requirement for permit for 
                  transportation of alcoholic beverages; amending 
                  Minnesota Statutes 1994, sections 340A.101, 
                  subdivisions 10, 25, and by adding a subdivision; 
                  340A.301, subdivisions 6 and 7; 340A.401; 340A.404, 
                  subdivision 2, and by adding a subdivision; 340A.412, 
                  by adding a subdivision; and 340A.414, subdivision 1; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 340A; repealing Minnesota Statutes 1994, 
                  sections 340A.301, subdivision 10; and 340A.32. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 340A.101, 
        subdivision 10, is amended to read: 
           Subd. 10.  [EXCLUSIVE LIQUOR STORE.] "Exclusive liquor 
        store" is an establishment used exclusively for the sale of 
        intoxicating liquor except for the incidental sale of ice, 
        tobacco, 3.2 percent malt liquor, beverages for mixing with 
        intoxicating liquor, soft drinks, liqueur-filled candies, cork 
        extraction devices, and books and videos on the use of alcoholic 
        beverages in the preparation of food, and the establishment may 
        offer recorded or live entertainment.  "Exclusive liquor store" 
        also includes an on-sale or combination on-sale and off-sale 
        intoxicating liquor establishment which sells food for 
        on-premise consumption when authorized by the municipality 
        issuing the license those items authorized in section 340A.412, 
        subdivision 14. 
           Sec. 2.  Minnesota Statutes 1994, section 340A.101, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [HOME BREWING EQUIPMENT.] "Home brewing 
        equipment" means portable equipment designed for use in home 
        manufacturing of malt liquor in quantities of ten gallons or 
        less and supplies and ingredients for home manufacture of malt 
        liquor. 
           Sec. 3.  Minnesota Statutes 1994, section 340A.101, 
        subdivision 25, is amended to read: 
           Subd. 25.  [RESTAURANT.] "Restaurant" is an establishment, 
        other than a hotel, under the control of a single proprietor or 
        manager, where meals are regularly prepared on the premises and 
        served at tables to the general public, and having a minimum 
        seating capacity for guests in the following minimum numbers: as 
        prescribed by the appropriate license issuing authority.  
          (a)  First class cities                  50
          (b)  Second and third class cities
               and statutory cities of over
               10,000 population                   30
          (c)  Unincorporated or unorganized
               territory other than in Cook,
               Itasca, Lake, Lake of the Woods, 
               and St. Louis counties             100 
          (d)  Unincorporated or unorganized
               territory in Cook, Itasca, Lake,
               Lake of the Woods, and St. Louis 
               counties                            50
           In the case of classes (b) and (c) above, the governing 
        body of a city or county may prescribe a higher minimum number. 
        In fourth class cities and statutory cities under 10,000 
        population, minimum seating requirements are those prescribed by 
        the governing body of the city. 
           Sec. 4.  Minnesota Statutes 1994, 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 a one or more
              retail on-sale license licenses and who
              manufacture fewer than 3,500 barrels
              of malt liquor in a year, except as 
              provided in subdivision 10 at any one
              licensed premises, the entire
              production of which is solely 
              for consumption on tap on the
              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. 5.  Minnesota Statutes 1994, 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 licensed brewer of malt liquor described in 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 or immediately 
        adjacent to the place of manufacture.  Malt liquor brewed by 
        such a licensee may not be removed from the licensed premises 
        unless the malt liquor is entered in a tasting competition where 
        none of the malt liquor so removed is sold.  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. 6.  [340A.33] [BREW ON PREMISES STORE.] 
           Notwithstanding anything in this chapter, the owner of a 
        brew on premises store shall not be considered a brewer, 
        manufacturer, wholesaler, or retailer of intoxicating liquor if 
        the owner complies with this section and with Code of Federal 
        Regulations, title 27, part 25, subpart L, sections 25.205 and 
        25.206.  For purposes of this section, a brew on premises store 
        is a facility that provides the ingredients and equipment for a 
        customer to use to brew malt liquor at the store.  Alcoholic 
        beverages may not be sold or otherwise provided to customers of 
        a brew on premises store, unless the owner of the brew on 
        premises store holds the appropriate liquor license.  Customers 
        using the brew on premises store must be of the minimum age 
        required to purchase intoxicating liquor.  Malt liquor brewed by 
        a customer in the store must not be sold and must be used by the 
        customer solely for personal or family use. 
           Sec. 7.  Minnesota Statutes 1994, section 340A.401, is 
        amended to read: 
           340A.401 [LICENSE REQUIRED.] 
           Except as provided in this chapter, no person may directly 
        or indirectly, on any pretense or by any device, sell, barter, 
        keep for sale, charge for possession, or otherwise dispose of 
        alcoholic beverages as part of a commercial transaction without 
        having obtained a license. 
           Sec. 8.  Minnesota Statutes 1994, 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 Theatre, the Cricket Theatre, the Orpheum 
        Theatre, and the State 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 theatres 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, 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, notwithstanding 
        any law or local ordinance or charter provision. 
           Sec. 9.  Minnesota Statutes 1994, 340A.404, is amended by 
        adding a subdivision to read: 
           Subd. 12.  [CATERER'S PERMIT.] The commissioner may issue a 
        caterer's permit to a restaurant that holds an on-sale 
        intoxicating liquor license issued by any municipality.  The 
        holder of a caterer's permit may sell intoxicating liquor as an 
        incidental part of a food service that serves prepared meals at 
        a place other than the premises for which the holder's on-sale 
        intoxicating liquor license is issued. 
           (a) A caterer's permit is auxiliary to the primary on-sale 
        license held by the licensee. 
           (b) The restrictions and regulations which apply to the 
        sale of intoxicating liquor on the licensed premises also apply 
        to the sale under the authority of a caterer's permit, and any 
        act that is prohibited on the licensed premises is also 
        prohibited when the licensee is operating other than on the 
        licensed premises under a caterer's permit. 
           (c) Any act, which if done on the licensed premises would 
        be grounds for cancellation or suspension of the on-sale 
        licensee, is grounds for cancellation of both the on-sale 
        license and the caterer's permit if done when the permittee is 
        operating away from the licensed premises under the authority of 
        the caterer's permit. 
           (d) The permittee shall notify prior to any catered event: 
           (1) the police chief of the city where the event will take 
        place, if the event will take place within the corporate limits 
        of a city; or 
           (2) the county sheriff of the county where the event will 
        take place, if the event will be outside the corporate limits of 
        any city. 
           (e) If the primary license ceases to be valid for any 
        reason, the caterer's permit ceases to be valid. 
           (f) Permits issued under this subdivision are subject to 
        all laws and ordinances governing the sale of intoxicating 
        liquor except those laws and ordinances which by their nature 
        are not applicable. 
           (g) The annual state fee for a caterer's permit is $200. 
           Sec. 10.  Minnesota Statutes 1994, section 340A.412, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [EXCLUSIVE LIQUOR STORES.] (a) Except as 
        otherwise provided in this subdivision, an exclusive liquor 
        store may sell only the following items: 
           (1) alcoholic beverages; 
           (2) tobacco products; 
           (3) ice; 
           (4) beverages for mixing with intoxicating liquor; 
           (5) soft drinks; 
           (6) liqueur-filled candies; 
           (7) food products that contain more than one-half of one 
        percent alcohol by volume; 
           (8) cork extraction devices; 
           (9) books and videos on the use of alcoholic beverages; 
           (10) magazines and other publications published primarily 
        for information and education on alcoholic beverages; and 
           (11) home brewing equipment. 
           (b) An exclusive liquor store that has an on-sale, or 
        combination on-sale and off-sale license may sell food for 
        on-premise consumption when authorized by the municipality 
        issuing the license. 
           (c) An exclusive liquor store may offer live or recorded 
        entertainment. 
           Sec. 11.  Minnesota Statutes 1994, section 340A.414, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PERMIT REQUIRED.] No business 
        establishment or club which does not hold an on-sale 
        intoxicating liquor license may directly or indirectly allow the 
        consumption and display of intoxicating liquor alcoholic 
        beverages or knowingly serve any liquid for the purpose of 
        mixing with intoxicating liquor without first having obtained a 
        permit from the commissioner. 
           Sec. 12.  [CLAY COUNTY; ON-SALE LICENSE.] 
           Notwithstanding any state or local law or charter 
        provision, the Clay county board may issue one on-sale 
        intoxicating liquor license to a premises located in Elkton 
        township.  The license is not subject to the requirements of 
        Minnesota Statutes, section 340A.101, subdivision 25.  The 
        license is subject to all other provisions of Minnesota 
        Statutes, chapter 340A. 
           Sec. 13.  [ST. LOUIS COUNTY; ON-SALE LICENSE.] 
           Notwithstanding any state or local law or charter provision 
        to the contrary, the St. Louis county board may issue one 
        on-sale intoxicating malt liquor license to an establishment 
        located in township 65, range 18, section 33.  The county board 
        shall set the fee for the license.  The license is subject to 
        all provisions of Minnesota Statutes, chapter 340A, not 
        inconsistent with this section. 
           Sec. 14.  [INTERNATIONAL FALLS; TEMPORARY LICENSE.] 
           Notwithstanding any law to the contrary, the city of 
        International Falls may issue to a nonprofit organization or 
        corporation a temporary on-sale license for the sale and serving 
        of intoxicating liquor in a sports arena owned by independent 
        school district No. 361.  The license authorized under this 
        section is valid for not more than seven consecutive days during 
        the months of June and July 1995.  The license is in addition to 
        the number of temporary on-sale licenses authorized by law.  The 
        city shall determine the fee for the license.  All provisions of 
        Minnesota Statutes, chapter 340A, not inconsistent with this 
        section, apply to the license authorized by this section. 
           Sec. 15.  [STEARNS COUNTY; ON-SALE LICENSE.] 
           Notwithstanding Minnesota Statutes, section 340A.412, 
        subdivision 4, paragraph (a), clause (9), or any local law or 
        charter provision, the Stearns county board may issue one 
        combination off-sale and on-sale intoxicating liquor license to 
        a premises located in Farming township.  The license is subject 
        to all provisions of Minnesota Statutes, chapter 340A, not 
        inconsistent with this section. 
           Sec. 16.  [PRIMARY SOURCE STUDY.] 
           The house research department and office of senate counsel 
        and research shall study issues relating to the extension of 
        Minnesota Statutes, section 340A.311, paragraph (c), to include 
        distilled spirits.  The study shall include findings but shall 
        not include recommendations on changes in law or rules.  The 
        house research department and office of senate counsel and 
        research shall jointly report their findings to the chairs of 
        the legislative committees and divisions with jurisdiction over 
        alcoholic beverage law and policy by March 1, 1996. 
           Sec. 17.  [REPEALER.] 
           Minnesota Statutes 1994, section 340A.301, subdivision 10; 
        and 340A.32, are repealed. 
           Sec. 18.  [EFFECTIVE DATE.] 
           Sections 1 to 7, 9 to 11, and 16 to 17 are effective the 
        day following final enactment.  Section 8 is effective on 
        approval by the Minneapolis city council and compliance with 
        Minnesota Statutes, section 645.021.  Section 12 is effective on 
        approval by the Clay county board and compliance with Minnesota 
        Statutes, section 645.021.  Section 13 is effective on approval 
        by the St. Louis county board and compliance with Minnesota 
        Statutes, section 645.021.  Section 14 is effective on approval 
        by the International Falls city council and compliance with 
        Minnesota Statutes, section 645.021.  Section 15 is effective on 
        approval by the Stearns county board and compliance with 
        Minnesota Statutes, section 645.021. 
           Presented to the governor May 22, 1995 
           Signed by the governor May 22, 1995, 7:20 p.m.

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