1.1                          A bill for an act 
  1.2             relating to liquor; modifying the license fee 
  1.3             structure for certain brewers; allowing certain 
  1.4             brewers to sell directly to consumers; amending 
  1.5             Minnesota Statutes 2002, section 340A.404, subdivision 
  1.6             10; Minnesota Statutes 2003 Supplement, section 
  1.7             340A.301, subdivisions 6, 7. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.10  340A.301, subdivision 6, is amended to read: 
  1.11     Subd. 6.  [FEES.] The annual fees for licenses under this 
  1.12  section are as follows: 
  1.13    (a) Manufacturers (except as provided 
  1.14        in clauses (b) and (c))                    $15,000 
  1.15        Duplicates                                 $ 3,000
  1.16    (b) Manufacturers of wines of not more
  1.17        than 25 percent alcohol by volume          $   500
  1.18    (c) Brewers other than those described
  1.19        in clauses (d) and (i) who                        
  1.20        manufacture more than 20,000 
  1.21        barrels of malt liquor in a year           $ 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 produced 
  2.1         in Minnesota, the entire
  2.2         production of which is solely 
  2.3         for consumption on tap on the
  2.4         licensed premises or for off-sale
  2.5         from that licensed premises.
  2.6         A brewer licensed
  2.7         under this clause must obtain a separate
  2.8         license for each licensed premises where
  2.9         the brewer brews malt liquor.  A brewer
  2.10        licensed under this clause may not be
  2.11        licensed as an importer under this chapter  $  500
  2.12    (e) Wholesalers (except as provided in
  2.13        clauses (f), (g), and (h))                 $15,000
  2.14        Duplicates                                 $ 3,000
  2.15    (f) Wholesalers of wines of not more
  2.16        than 25 percent alcohol by volume          $ 2,000
  2.17    (g) Wholesalers of intoxicating
  2.18        malt liquor                                $   600
  2.19        Duplicates                                 $    25
  2.20    (h) Wholesalers of 3.2 percent 
  2.21        malt liquor                                $    10
  2.22    (i) Brewers who manufacture fewer than
  2.23        2,000 barrels of malt liquor in a year     $   150
  2.24    (j) Brewers who manufacture 2,000 to
  2.25        3,500 barrels of malt liquor in a year     $   500
  2.26    (k) Brewers who manufacture 3,501 to
  2.27        10,000 barrels of malt liquor in a year    $ 1,000
  2.28    (l) Brewers who manufacture 10,001 to
  2.29        20,000 barrels of malt liquor in a year    $ 1,500
  2.30     If a business licensed under this section is destroyed, or 
  2.31  damaged to the extent that it cannot be carried on, or if it 
  2.32  ceases because of the death or illness of the licensee, the 
  2.33  commissioner may refund the license fee for the balance of the 
  2.34  license period to the licensee or to the licensee's estate. 
  2.35     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.36  340A.301, subdivision 7, is amended to read: 
  3.1      Subd. 7.  [INTEREST IN OTHER BUSINESS.] (a) Except as 
  3.2   provided in this subdivision, a holder of a license as a 
  3.3   manufacturer, brewer, importer, or wholesaler may not have any 
  3.4   ownership, in whole or in part, in a business holding a retail 
  3.5   intoxicating liquor or 3.2 percent malt liquor license.  The 
  3.6   commissioner may not issue a license under this section to a 
  3.7   manufacturer, brewer, importer, or wholesaler if a retailer of 
  3.8   intoxicating liquor has a direct or indirect interest in the 
  3.9   manufacturer, brewer, importer, or wholesaler.  A manufacturer 
  3.10  or wholesaler of intoxicating liquor may use or have property 
  3.11  rented for retail intoxicating liquor sales only if the 
  3.12  manufacturer or wholesaler has owned the property continuously 
  3.13  since November 1, 1933.  A retailer of intoxicating liquor may 
  3.14  not use or have property rented for the manufacture or 
  3.15  wholesaling of intoxicating liquor. 
  3.16     (b) A brewer licensed under subdivision 6, clause (d), or a 
  3.17  brewer who manufactures fewer than 3,500 barrels of malt liquor 
  3.18  in a year may be issued an on-sale intoxicating liquor or 3.2 
  3.19  percent malt liquor license by a municipality for a restaurant 
  3.20  operated in the place of manufacture.  Notwithstanding section 
  3.21  340A.405, a brewer who holds an on-sale license issued pursuant 
  3.22  to this paragraph may, with the approval of the commissioner, be 
  3.23  issued a license by a municipality for off-sale of malt liquor 
  3.24  produced and packaged on the licensed premises.  Off-sale of 
  3.25  malt liquor shall be limited to the legal hours for off-sale at 
  3.26  exclusive liquor stores in the jurisdiction in which the brewer 
  3.27  is located, and the malt liquor sold off-sale must be removed 
  3.28  from the premises before the applicable off-sale closing time at 
  3.29  exclusive liquor stores.  The malt liquor shall be packaged in 
  3.30  64-ounce containers commonly known as "growlers."  The 
  3.31  containers shall bear a twist-type closure, cork, stopper, or 
  3.32  plug.  At the time of the sale, a paper or plastic adhesive 
  3.33  band, strip, or sleeve shall be applied to the container and 
  3.34  extend over the top of the twist-type closure, cork, stopper, or 
  3.35  plug forming a seal that must be broken upon opening of the 
  3.36  container.  The adhesive band, strip, or sleeve shall bear the 
  4.1   name and address of the brewer.  The containers shall be 
  4.2   identified as malt liquor, contain the name of the malt liquor, 
  4.3   bear the name and address of the brewer selling the malt liquor, 
  4.4   and shall be considered intoxicating liquor unless the alcoholic 
  4.5   content is labeled as otherwise in accordance with the 
  4.6   provisions of Minnesota Rules, part 7515.1100.  A brewer's total 
  4.7   retail sales at on- or off-sale under this paragraph may not 
  4.8   exceed 3,500 barrels per year, provided that off-sales may not 
  4.9   total more than 50 percent of the brewer's production or 500 
  4.10  barrels, whichever is less.  A brewer licensed under subdivision 
  4.11  6, clause (d), may hold or have an interest in other retail 
  4.12  on-sale licenses, but may not have an ownership interest in 
  4.13  whole or in part, or be an officer, director, agent, or employee 
  4.14  of, any other manufacturer, brewer, importer, or wholesaler, or 
  4.15  be an affiliate thereof whether the affiliation is corporate or 
  4.16  by management, direction, or control.  Notwithstanding this 
  4.17  prohibition, a brewer licensed under subdivision 6, clause (d), 
  4.18  may be an affiliate or subsidiary company of a brewer licensed 
  4.19  in Minnesota or elsewhere if that brewer's only manufacture of 
  4.20  malt liquor is: 
  4.21     (i) manufacture licensed under subdivision 6, clause (d); 
  4.22     (ii) manufacture in another state for consumption 
  4.23  exclusively in a restaurant located in the place of manufacture; 
  4.24  or 
  4.25     (iii) manufacture in another state for consumption 
  4.26  primarily in a restaurant located in or immediately adjacent to 
  4.27  the place of manufacture if the brewer was licensed under 
  4.28  subdivision 6, clause (d), on January 1, 1995. 
  4.29     (c) Except as provided in subdivision 7a, no brewer as 
  4.30  defined in subdivision 7a or importer may have any interest, in 
  4.31  whole or in part, directly or indirectly, in the license, 
  4.32  business, assets, or corporate stock of a licensed malt liquor 
  4.33  wholesaler. 
  4.34     Sec. 3.  Minnesota Statutes 2002, section 340A.404, 
  4.35  subdivision 10, is amended to read: 
  4.36     Subd. 10.  [TEMPORARY ON-SALE LICENSES.] The governing body 
  5.1   of a municipality may issue to (1) a club or charitable, 
  5.2   religious, or other nonprofit organization in existence for at 
  5.3   least three years, (2) a political committee registered under 
  5.4   section 10A.14, or (3) a state university, or (4) a brewer who 
  5.5   manufactures fewer than 3,500 barrels of malt liquor in a year, 
  5.6   a temporary license for the on-sale of intoxicating liquor in 
  5.7   connection with a social event within the municipality sponsored 
  5.8   by the licensee.  The license may authorize the on-sale of 
  5.9   intoxicating liquor for not more than four consecutive days, and 
  5.10  may authorize on-sales on premises other than premises the 
  5.11  licensee owns or permanently occupies.  The license may provide 
  5.12  that the licensee may contract for intoxicating liquor catering 
  5.13  services with the holder of a full-year on-sale intoxicating 
  5.14  liquor license issued by any municipality.  The licenses are 
  5.15  subject to the terms, including a license fee, imposed by the 
  5.16  issuing municipality.  Licenses issued under this subdivision 
  5.17  are subject to all laws and ordinances governing the sale of 
  5.18  intoxicating liquor except sections 340A.409 and 340A.504, 
  5.19  subdivision 3, paragraph (d), and those laws and ordinances 
  5.20  which by their nature are not applicable.  Licenses under this 
  5.21  subdivision are not valid unless first approved by the 
  5.22  commissioner of public safety. 
  5.23     A county under this section may issue a temporary license 
  5.24  only to a premises located in the unincorporated or unorganized 
  5.25  territory of the county.