1.1                          A bill for an act 
  1.2             relating to liquor; authorizing municipalities to 
  1.3             issue off-sale licenses to brewpubs for malt liquor 
  1.4             produced on brewery premises; amending Minnesota 
  1.5             Statutes 1998, section 340A.301, subdivisions 6 and 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 340A.301, 
  1.8   subdivision 6, is amended to read: 
  1.9      Subd. 6.  [FEES.] The annual fees for licenses under this 
  1.10  section are as follows: 
  1.11    (a) Manufacturers (except as provided 
  1.12        in clauses (b) and (c))                    $15,000 
  1.13        Duplicates                                 $ 3,000
  1.14    (b) Manufacturers of wines of not more
  1.15        than 25 percent alcohol by volume          $   500
  1.16    (c) Brewers other than those described
  1.17        in clauses (d) and (i)                     $ 2,500
  1.18    (d) Brewers who also hold one or more
  1.19        retail on-sale licenses and who
  1.20        manufacture fewer than 3,500 barrels
  1.21        of malt liquor in a year, at any one
  1.22        licensed premises, the entire
  1.23        production of which is solely 
  1.24        for consumption on tap on the
  1.25        licensed premises.  A brewer licensed
  2.1         under this clause must obtain a separate
  2.2         license for each licensed premises where
  2.3         the brewer brews malt liquor.  A brewer
  2.4         licensed under this clause may not be
  2.5         licensed as an importer under this chapter  $  500
  2.6     (e) Wholesalers (except as provided in
  2.7         clauses (f), (g), and (h))                 $15,000
  2.8         Duplicates                                 $ 3,000
  2.9     (f) Wholesalers of wines of not more
  2.10        than 25 percent alcohol by volume          $ 2,000
  2.11    (g) Wholesalers of intoxicating
  2.12        malt liquor                                $   600
  2.13        Duplicates                                 $    25
  2.14    (h) Wholesalers of 3.2 percent 
  2.15        malt liquor                                $    10
  2.16    (i) Brewers who manufacture fewer than
  2.17        2,000 barrels of malt liquor in a year     $   150
  2.18     If a business licensed under this section is destroyed, or 
  2.19  damaged to the extent that it cannot be carried on, or if it 
  2.20  ceases because of the death or illness of the licensee, the 
  2.21  commissioner may refund the license fee for the balance of the 
  2.22  license period to the licensee or to the licensee's estate. 
  2.23     Sec. 2.  Minnesota Statutes 1998, section 340A.301, 
  2.24  subdivision 7, is amended to read: 
  2.25     Subd. 7.  [INTEREST IN OTHER BUSINESS.] (a) Except as 
  2.26  provided in this subdivision, a holder of a license as a 
  2.27  manufacturer, brewer, importer, or wholesaler may not have any 
  2.28  ownership, in whole or in part, in a business holding a retail 
  2.29  intoxicating liquor or 3.2 percent malt liquor license.  The 
  2.30  commissioner may not issue a license under this section to a 
  2.31  manufacturer, brewer, importer, or wholesaler if a retailer of 
  2.32  intoxicating liquor has a direct or indirect interest in the 
  2.33  manufacturer, brewer, importer, or wholesaler.  A manufacturer 
  2.34  or wholesaler of intoxicating liquor may use or have property 
  2.35  rented for retail intoxicating liquor sales only if the 
  2.36  manufacturer or wholesaler has owned the property continuously 
  3.1   since November 1, 1933.  A retailer of intoxicating liquor may 
  3.2   not use or have property rented for the manufacture or 
  3.3   wholesaling of intoxicating liquor. 
  3.4      (b) A brewer licensed under subdivision 6, clause (d), may 
  3.5   be issued an on-sale intoxicating liquor or 3.2 percent malt 
  3.6   liquor license by a municipality for a restaurant operated in 
  3.7   the place of manufacture.  Malt liquor brewed by such a licensee 
  3.8   may not be removed from the licensed premises unless the malt 
  3.9   liquor is entered in a tasting competition where none of the 
  3.10  malt liquor so removed is sold.  A brewer licensed under 
  3.11  subdivision 6, clause (d), may be issued a license by a 
  3.12  municipality for off-sale of malt liquor produced on the 
  3.13  licensed premises.  A brewer licensed under subdivision 6, 
  3.14  clause (d), may hold or have an interest in other retail on-sale 
  3.15  licenses, but may not have an ownership interest in whole or in 
  3.16  part, or be an officer, director, agent, or employee of, any 
  3.17  other manufacturer, brewer, importer, or wholesaler, or be an 
  3.18  affiliate thereof whether the affiliation is corporate or by 
  3.19  management, direction, or control.  Notwithstanding this 
  3.20  prohibition, a brewer licensed under subdivision 6, clause (d), 
  3.21  may be an affiliate or subsidiary company of a brewer licensed 
  3.22  in Minnesota or elsewhere if that brewer's only manufacture of 
  3.23  malt liquor is: 
  3.24     (i) manufacture licensed under subdivision 6, clause (d); 
  3.25     (ii) manufacture in another state for consumption 
  3.26  exclusively in a restaurant located in the place of manufacture; 
  3.27  or 
  3.28     (iii) manufacture in another state for consumption 
  3.29  primarily in a restaurant located in or immediately adjacent to 
  3.30  the place of manufacture if the brewer was licensed under 
  3.31  subdivision 6, clause (d), on January 1, 1995. 
  3.32     (c) Except as provided in subdivision 7a, no brewer as 
  3.33  defined in subdivision 7a or importer may have any interest, in 
  3.34  whole or in part, directly or indirectly, in the license, 
  3.35  business, assets, or corporate stock of a licensed malt liquor 
  3.36  wholesaler. 
  4.1      Sec. 3.  [EFFECTIVE DATE.] 
  4.2      Section 1 is effective the day following final enactment.