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SF 201

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to liquor; modifying regulation of off-sales by brewpubs and small
brewers; authorizing sampling of malt liquor at breweries; amending Minnesota
Statutes 2006, sections 340A.301, subdivision 7; 340A.510, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, 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 "growlersdeleted text begin .deleted text end "new text begin or in 750 milliliter
bottles.
new text end The containers new text begin or bottles new text end 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 new text begin or bottle new text end 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 containernew text begin or bottlenew text end .
The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The
containers new text begin or bottles new text end 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 500 barrels. 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. 2.

Minnesota Statutes 2006, section 340A.510, subdivision 2, is amended to read:


Subd. 2.

Malt liquor samples authorized.

(a) Notwithstanding section 340A.308,
a brewer may purchase from or furnish at no cost to a licensed retailer malt liquor the
brewer manufactures if:

(1) the malt liquor is dispensed by the retailer only for samples in a quantity of less
than 100 milliliters of malt liquor per variety per customer;

(2) where the brewer furnishes the malt liquor, the retailer makes available for return
to the brewer any unused malt liquor and empty containers;

(3) the samples are dispensed by an employee of the retailer or brewer or by a
sampling service retained by the retailer or brewer and not affiliated directly or indirectly
with a malt liquor wholesaler;

(4) not more than three cases of malt liquor are purchased from or furnished to the
retailer by the brewer for each sampling;

(5) each sampling continues for not more than eight hours;

(6) the brewer has furnished malt liquor for not more than five samplings for any
retailer in any calendar year;

(7) where the brewer furnishes the malt liquor, the brewer delivers the malt liquor
for the sampling to its exclusive wholesaler for that malt liquor;

(8) the brewer has at least seven days before the sampling filed with the
commissioner, on a form the commissioner prescribes, written notice of intent to furnish
malt liquor for the sampling, which contains (i) the name and address of the retailer
conducting the sampling, (ii) the maximum amount of malt liquor to be furnished or
purchased by the brewer, (iii) the number of times the brewer has furnished malt liquor
to the retailer in the calendar year in which the notice is filed, (iv) the date and time of
the sampling, (v) where the brewer furnishes the malt liquor, the exclusive wholesaler to
whom the brewer will deliver the malt liquor, and (vi) a statement by the brewer to the
effect that to the brewer's knowledge all requirements of this section have been or will be
complied with; and

(9) the commissioner has not notified the brewer filing the notice under clause (8)
that the commissioner disapproves the notice.

(b) For purposes of this subdivision, "licensed retailer" means a licensed on-sale or
off-sale retailer of alcoholic beverages and a municipal liquor store.

new text begin (c) A brewer may provide samples of its own products on its premises to persons
touring the brewery in a quantity of less than 100 milliliters of malt liquor per variety
per person.
new text end