1.1 	A bill for an act
1.2 	relating to alcoholic beverages; allowing a brewer who
1.3 	manufactures beer on the premises where the brewer
1.4 	also holds an on-sale intoxicating liquor license to
1.5 	use wort produced outside Minnesota under certain
1.6 	circumstances; amending Minnesota Statutes 2004,
1.7 	section 340A.301, subdivision 6.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 340A.301,
1.10 	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)                     $ 2,500
1.20 	  (d) Brewers who also hold one or more
1.21 	      retail on-sale licenses and who
1.22 	      manufacture fewer than 3,500 barrels
1.23 	      of malt liquor in a year, at any one
1.24 	      licensed premises, using only wort produced
1.25 	      in Minnesota except as otherwise provided
1.26 	      in this clause, 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
2.6 	      under this clause;
2.7 	      (1) 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~~ ; (2) may not be
2.11 	      licensed as an importer under this chapter; and
2.12 	      (3) may use wort produced outside Minnesota if (i)
2.13 	      its total sales at off-sale under section 340A.301,
2.14 	      subdivision 7, paragraph (b), in any 12-month
2.15 	      period do not exceed ten percent of the total
2.16 	      production of beer on the premises or 100 barrels,
2.17 	      whichever is less, or (ii) in the case of a brewer who
2.18 	      has been licensed under this clause for fewer than
2.19 	      12 months, if the commissioner reasonably
2.20 	      determines that the brewer will not sell amounts at
2.21 	      off-sale in excess of the amounts specified in
2.22 	      item (i) during the first 12 months of
2.23 	      licensing $  500
2.24 	  (e) Wholesalers (except as provided in
2.25 	      clauses (f), (g), and (h))                 $15,000
2.26 	      Duplicates                                 $ 3,000
2.27 	  (f) Wholesalers of wines of not more
2.28 	      than 25 percent alcohol by volume          $ 2,000
2.29 	  (g) Wholesalers of intoxicating
2.30 	      malt liquor                                $   600
2.31 	      Duplicates                                 $    25
2.32 	  (h) Wholesalers of 3.2 percent
2.33 	      malt liquor                                $    10
2.34 	  (i) Brewers who manufacture fewer than
2.35 	      2,000 barrels of malt liquor in a year     $   150
2.36 	If a business licensed under this section is destroyed, or
3.1 	damaged to the extent that it cannot be carried on, or if it
3.2 	ceases because of the death or illness of the licensee, the
3.3 	commissioner may refund the license fee for the balance of the
3.4 	license period to the licensee or to the licensee's estate.