1.1 	CONFERENCE COMMITTEE REPORT ON S.F. No. 3008
1.2 	A bill for an act
1.3 	relating to liquor; prohibiting exclusive contracts for distillers;amending Minnesota 
1.4 	Statutes 2020, section 340A.307, subdivisions 1, 2, 4.
1.5 	May 19, 2022
1.6 	The Honorable David J. Osmek
1.7 	President of the Senate
1.8 	The Honorable Melissa Hortman
1.9 	Speaker of the House of Representatives
1.10 	We, the undersigned conferees for S.F. No. 3008 report that we have agreed upon the 
1.11 	items in dispute and recommend as follows:
1.12 	That the House recede from its amendments and that S.F. No. 3008 be further amended 
1.13 	as follows:
1.14 	Delete everything after the enacting clause and insert:

1.15 	ARTICLE 1
1.16 	LIQUOR REGULATION

1.17 	Section 1. Minnesota Statutes 2020, section 340A.101, is amended by adding a subdivision 
1.18 	to read:
1.19 		Subd. 9a.Distilled spirits manufacturer. "Distilled spirits manufacturer" means a 
1.20 	distillery operated within the state producing distilled spirits in a total quantity exceeding 
1.21 	the proof gallons limit for a microdistillery in a calendar year.

1.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.1 	Sec. 2. Minnesota Statutes 2020, section 340A.101, subdivision 16, is amended to read:
2.2 		Subd. 16.Malt liquor. "Malt liquor" is any beer, ale, or other beverage made from malt 
2.3 	by fermentation, or by the fermentation of malt substitutes, including rice, grain of any kind, 
2.4 	glucose, sugar, molasses, or other malt substitute that has not undergone distillation, and 
2.5 	containing that contains not less than one-half of one percent alcohol by volume. "Beer" 
2.6 	means any beverage meeting the definition of malt liquor under this subdivision.

2.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.8 	Sec. 3. Minnesota Statutes 2020, section 340A.22, is amended to read:
2.9 	340A.22 MICRODISTILLERIES; DISTILLED SPIRIT MANUFACTURERS.
2.10 		Subdivision 1.Activities. (a) A microdistillery licensed under this chapter may provide 
2.11 	on its premises samples of distilled spirits manufactured on its premises, in an amount not 
2.12 	to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled 
2.13 	under this paragraph by any person on any day.
2.14 	(b) A microdistillery or distilled spirits manufacturer can sell cocktails to the public, 
2.15 	pursuant to subdivision 2.
2.16 	(c) A microdistillery or distilled spirits manufacturer may not operate a cocktail room 
2.17 	under subdivision 2 or conduct sales at off-sale under subdivision 4 unless at least 50 percent 
2.18 	of the annual production of the licensee is processed and distilled on premises.
2.19 	(d) For purposes of calculating annual production under paragraph (c), distilled spirits 
2.20 	that are bottled by the licensee under a contract bottling agreement with a third party are 
2.21 	excluded from the licensee's annual production if the:
2.22 	(1) third-party contractor is an independent entity that is not owned or controlled by the 
2.23 	licensee;
2.24 	(2) distilled spirits bottled under a third-party contract are not available for sale or 
2.25 	marketed by the licensee or the third party at any location licensed under subdivision 2 or 
2.26 	4; and
2.27 	(3) distilled spirits bottled under a third-party contract are available for distribution by 
2.28 	wholesalers.
2.29 	(d) (e) Distilled spirits produced or in production prior to July 1, 2017, are not counted 
2.30 	as part of the calculations under paragraph (c).
3.1 		Subd. 2.Cocktail room license. (a) A municipality, including a city with a municipal 
3.2 	liquor store, may issue the holder of a microdistillery license or distilled spirits manufacturer 
3.3 	license under this chapter a microdistillery or distilled spirits manufacturer cocktail room 
3.4 	license. A microdistillery or distilled spirits manufacturer cocktail room license authorizes 
3.5 	on-sale of distilled liquor produced by the distiller for consumption on the premises of or 
3.6 	adjacent to one distillery location owned by the distiller. Notwithstanding section 340A.504, 
3.7 	subdivision 3, a cocktail room may be open and may conduct on-sale business on Sundays 
3.8 	if authorized by the municipality. Nothing in this subdivision precludes the holder of a 
3.9 	microdistillery or distilled spirits manufacturer cocktail room license from also holding a 
3.10 	license to operate a restaurant at the distillery. Section 340A.409 shall apply to a license 
3.11 	issued under this subdivision. All provisions of this chapter that apply to a retail liquor 
3.12 	license shall apply to a license issued under this subdivision unless the provision is explicitly 
3.13 	inconsistent with this subdivision.
3.14 	(b) A distiller may only have one cocktail room license under this subdivision, and may 
3.15 	not have an ownership interest in a distillery licensed under section 340A.301, subdivision 
3.16 	6, clause (a).
3.17 	(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery 
3.18 	or distilled spirits manufacturer cocktail room license under this subdivision, subject to 
3.19 	limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).
3.20 	(d) A municipality shall, within ten days of the issuance of a license under this 
3.21 	subdivision, inform the commissioner of the licensee's name and address and trade name, 
3.22 	and the effective date and expiration date of the license. The municipality shall also inform 
3.23 	the commissioner of a license transfer, cancellation, suspension, or revocation during the 
3.24 	license period.
3.25 	(e) No single entity may hold both a cocktail room and taproom license, and a cocktail 
3.26 	room and taproom may not be colocated.
3.27 		Subd. 3.License; fee. The commissioner shall establish a fee for licensing 
3.28 	microdistilleries that adequately covers the cost of issuing the license and other inspection 
3.29 	requirements. The fees shall be deposited in an account in the special revenue fund and are 
3.30 	appropriated to the commissioner for the purposes of this subdivision. All other requirements 
3.31 	of section 340A.301 apply to a license under this section.
3.32 		Subd. 4.Off-sale license. (a) A microdistillery may be issued a license by the local 
3.33 	licensing authority for off-sale of distilled spirits, with the approval of the commissioner. 
3.34 	The license may allow the sale of one 375 milliliter bottle up to a total of 750 milliliters per 
4.1 	customer per day of product manufactured on site, in any size container or combination of 
4.2 	containers approved under paragraph (b), subject to the following requirements:
4.3 	(1) off-sale hours of sale must conform to hours of sale for retail off-sale licensees in 
4.4 	the licensing municipality; and
4.5 	(2) no brand may be sold at the microdistillery unless it is also available for distribution 
4.6 	by wholesalers.
4.7 	(b) The commissioner may approve any standard fill as approved by the Alcohol and 
4.8 	Tobacco Tax and Trade Bureau.
4.9 	(c) The commissioner may by rule establish reporting requirements for microdistilleries 
4.10 	making off-sales of distilled spirits under this subdivision to ensure compliance with the 
4.11 	750 milliliter limit in paragraph (a).

4.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.13 	Sec. 4. Minnesota Statutes 2020, section 340A.28, subdivision 2, is amended to read:
4.14 		Subd. 2.Prohibition. A municipality may not issue a license under this section to a 
4.15 	brewer if the brewer seeking the license, or any person having an economic interest in the 
4.16 	brewer seeking the license or exercising control over the brewer seeking the license, is a 
4.17 	brewer that brews more than 20,000 150,000 barrels of its own brands of malt liquor annually 
4.18 	or a winery that produces more than 250,000 gallons of wine annually.

4.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.20 	Sec. 5. [340A.29] OFF-SALE PACKAGING REQUIREMENTS FOR CERTAIN 
4.21 	SMALL BREWERS.
4.22 		Subdivision 1.Certain off-sale authorized. Notwithstanding any law to the contrary, 
4.23 	and in addition to the off-sale of malt liquor allowed under section 340A.28, a brewer 
4.24 	licensed under section 340A.301, subdivision 6, clause (c), (i), or (j), that produces 7,500 
4.25 	barrels or less of malt liquor annually may be issued a license by a municipality for off-sale 
4.26 	at its licensed premises of up to 128 ounces per customer per day of malt liquor that has 
4.27 	been produced and packaged by the brewer, as provided in subdivision 2. The license must 
4.28 	be approved by the commissioner. The amount of malt liquor sold at off-sale under this 
4.29 	section must be included in calculating the annual barrel limit imposed in section 340A.28, 
4.30 	subdivision 1.
5.1 		Subd. 2.Packaging. Malt liquor authorized for off-sale pursuant to subdivision 1 must 
5.2 	be packaged in a container or combination of containers that is in compliance with the 
5.3 	provisions of Minnesota Rules, parts 7515.1080 to 7515.1120.
5.4 		Subd. 3.Off-sale not exclusive to brewery premises. Any brand sold under this section 
5.5 	must be made available for sale to a malt liquor wholesaler, other than a wholesaler owned 
5.6 	in whole or in part by a brewer as allowed in section 340A.301, subdivision 9.
5.7 		Subd. 4.Exception; production in 2021. Notwithstanding the 7,500 barrel limit in 
5.8 	subdivision 1, a brewer licensed under section 340A.301, subdivision 6, clause (c), (i), or 
5.9 	(j), that produced more than 5,500 barrels but not more than 13,500 barrels of malt liquor 
5.10 	in calendar year 2021, as demonstrated by records from the Department of Revenue, may 
5.11 	be issued a license under this section, provided that a brewer is only allowed to make the 
5.12 	sales authorized in this section until the brewer's production exceeds its 2021 production 
5.13 	amount by 2,000 barrels.
5.14 		Subd. 5.Reporting. The commissioner may by rule establish reporting requirements 
5.15 	for brewers making off-sales of malt liquor under this section to ensure compliance with 
5.16 	the 128 ounce limit in subdivision 1.
5.17 		Subd. 6.Other laws. All other requirements of chapter 340A, not inconsistent with this 
5.18 	section apply.

5.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.20 	Sec. 6. Minnesota Statutes 2020, section 340A.301, subdivision 8, is amended to read:
5.21 		Subd. 8.Interest in other business. (a) Except as provided in this subdivision, a holder 
5.22 	of a license as a manufacturer, brewer, importer, or wholesaler may not have any ownership, 
5.23 	in whole or in part, in a business holding a retail intoxicating liquor or 3.2 percent malt 
5.24 	liquor license. The commissioner may not issue a license under this section to a manufacturer, 
5.25 	brewer, importer, or wholesaler if a retailer of intoxicating liquor has a direct or indirect 
5.26 	interest in the manufacturer, brewer, importer, or wholesaler. A manufacturer or wholesaler 
5.27 	of intoxicating liquor may use or have property rented for retail intoxicating liquor sales 
5.28 	only if the manufacturer or wholesaler has owned the property continuously since November 
5.29 	1, 1933. A retailer of intoxicating liquor may not use or have property rented for the 
5.30 	manufacture or wholesaling of intoxicating liquor.
5.31 	(b) Except as provided in subdivision 9, no brewer as defined in subdivision 9 or importer 
5.32 	may have any interest, in whole or in part, directly or indirectly, in the license, business, 
5.33 	assets, or corporate stock of a licensed malt liquor wholesaler.
6.1 	(c) A winery holding a license under subdivision 6, paragraph (b) that produces and 
6.2 	sells, including sales from the winery's premises, no more than 2,500 barrels or its metric 
6.3 	equivalent of cider made from apples in a calendar year may own or have an interest in a 
6.4 	wholesaler that sells only the winery's apple-based cider products. The winery eligible to 
6.5 	own or have an interest in a wholesaler under this subdivision must provide the commissioner 
6.6 	with an affidavit stating that no existing wholesaler is available to represent and distribute 
6.7 	the winery's apple-based cider to retail license holders, and detailing the actions taken by 
6.8 	the winery in pursuing a distribution contract for the cider product.

6.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.10 	Sec. 7. Minnesota Statutes 2020, section 340A.307, subdivision 1, is amended to read:
6.11 		Subdivision 1.Nondiscriminatory sales. All licensed importers and manufacturers
6.12 	must offer for sale on an equal basis to all licensed wholesalers and manufacturers all 
6.13 	intoxicating liquor brought into or produced in the state of Minnesota.

6.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.15 	Sec. 8. Minnesota Statutes 2020, section 340A.307, subdivision 2, is amended to read:
6.16 		Subd. 2.Prohibited practices. Without limiting subdivision 1, the following are failures 
6.17 	to offer intoxicating liquor for sale on an equal basis and are unlawful:
6.18 	(1) A refusal to sell to a wholesaler or manufacturer intoxicating liquor offered for sale 
6.19 	to any other wholesaler or manufacturer, except when a wholesaler or manufacturer is in 
6.20 	arrears on payments for past purchases from the importer or manufacturer who refuses to 
6.21 	sell.
6.22 	(2) A sale of intoxicating liquor to a wholesaler or manufacturer at a price different from 
6.23 	that offered to another wholesaler or manufacturer, exclusive of shipping costs, except that 
6.24 	quantity discounts based on actual cost savings may be uniformly offered to all wholesalers 
6.25 	and manufacturers.
6.26 	(3) A sale of intoxicating liquor to a wholesaler or manufacturer on terms of purchase 
6.27 	different from those offered another wholesaler or manufacturer, except that when the 
6.28 	importer or manufacturer reasonably believes that a wholesaler or manufacturer will be 
6.29 	unable to comply with the existing terms of credit, other terms may be employed, including 
6.30 	denial of credit.
6.31 	(4) Discrimination among wholesalers and manufacturers in satisfying their respective 
6.32 	demands for intoxicating liquor.
7.1 	(5) A sale conditioned on an agreement which restricts the wholesaler or manufacturer 
7.2 	with respect to customers, area for distribution, or resale price, or which otherwise restrains 
7.3 	the wholesaler or manufacturer from competing in trade and commerce.
7.4 	(6) For purposes of this subdivision and subdivision 1 only, the term "intoxicating liquor" 
7.5 	does not include "pop wines" as they are defined by rule of the commissioner.

7.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.7 	Sec. 9. Minnesota Statutes 2020, section 340A.307, subdivision 4, is amended to read:
7.8 		Subd. 4.Exceptions. Nothing in this section applies to: wine or malt liquor of any alcohol 
7.9 	content.
7.10 	(1) wine or malt liquor of any alcohol content;
7.11 	(2) intoxicating liquor which is:
7.12 	(i) further distilled, refined, rectified, or blended within the state; and
7.13 	(ii) bottled within the state and labeled with the importer's own labels after importation 
7.14 	into the state; or
7.15 	(3) any brand of intoxicating liquor which is offered for sale only in this state. No such 
7.16 	brand shall vary from an existing or new brand sold in another state in any manner as to 
7.17 	brand name, age, or proof of the product.

7.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.19 	Sec. 10. Minnesota Statutes 2020, section 340A.404, subdivision 1, is amended to read:
7.20 		Subdivision 1.Cities. (a) A city may issue an on-sale intoxicating liquor license to the 
7.21 	following establishments located within its jurisdiction:
7.22 	(1) hotels;
7.23 	(2) restaurants;
7.24 	(3) bowling centers;
7.25 	(4) clubs or congressionally chartered veterans organizations with the approval of the 
7.26 	commissioner, provided that the organization has been in existence for at least three years 
7.27 	and liquor sales will only be to members and bona fide guests, except that a club may permit 
7.28 	the general public to participate in a wine tasting conducted at the club under section 
7.29 	340A.419;
8.1 	(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the 
8.2 	Minnesota Sports Facilities Authority;
8.3 	(6) sports facilities located on land owned by the Metropolitan Sports Commission; and
8.4 	(7) exclusive liquor stores.; and
8.5 	(8) resorts as defined in section 157.15, subdivision 11.
8.6 	(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 
8.7 	an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 
8.8 	ordinance, or charter provision. A license issued under this paragraph authorizes sales on 
8.9 	all days of the week to persons attending events at the theater.
8.10 	(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 
8.11 	an on-sale malt liquor license to a convention center within the city, notwithstanding any 
8.12 	law, local ordinance, or charter provision. A license issued under this paragraph authorizes 
8.13 	sales on all days of the week to persons attending events at the convention center. This 
8.14 	paragraph does not apply to convention centers located in the seven-county metropolitan 
8.15 	area.
8.16 	(d) A city municipality may issue an on-sale wine license and an on-sale malt liquor 
8.17 	license to a person who is the owner of a summer collegiate league baseball team or baseball 
8.18 	team competing in a league established by the Minnesota Baseball Association, or to a 
8.19 	person holding a concessions or management contract with the owner, for beverage sales 
8.20 	at a ballpark or stadium located within the city municipality for the purposes of summer 
8.21 	collegiate league baseball games, town ball games, and any other events at the ballpark or 
8.22 	stadium, notwithstanding any law, local ordinance, or charter provision. A license issued 
8.23 	under this paragraph authorizes sales on all days of the week to persons attending baseball 
8.24 	games and any other events at the ballpark or stadium.

8.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.26 	Sec. 11. Minnesota Statutes 2020, section 340A.404, subdivision 1a, is amended to read:
8.27 		Subd. 1a.Cities Municipalities; auto racing facilities. A city municipality may issue 
8.28 	an on-sale intoxicating liquor license to an auto racing facility located in the city municipality. 
8.29 	The license may authorize sales both to persons attending any and all events at the facility, 
8.30 	and sales in a restaurant, bar, or banquet facility located on the premises of the auto racing 
8.31 	facility. The license authorizes sales on all days of the week. The license may be issued for 
8.32 	a space that is not compact and contiguous, provided that the licensed premises may include 
8.33 	only the space within a defined area as described in the application for the license.

9.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.2 	Sec. 12. Minnesota Statutes 2020, section 340A.404, subdivision 6, is amended to read:
9.3 		Subd. 6.Counties. (a) A county board may issue an annual on-sale intoxicating liquor 
9.4 	license within the area of the county that is unorganized or unincorporated to a bowling 
9.5 	center, restaurant, club, or hotel, or resort as defined in section 157.15, subdivision 11, with 
9.6 	the approval of the commissioner.
9.7 	(b) A county board may also with the approval of the commissioner issue up to ten 
9.8 	seasonal on-sale licenses to restaurants and clubs for the sale of intoxicating liquor within 
9.9 	the area of the county that is unorganized or unincorporated. Notwithstanding section 
9.10 	340A.412, subdivision 8, a seasonal license is valid for a period specified by the board, not 
9.11 	to exceed nine months. Not more than one license may be issued for any one premises 
9.12 	during any consecutive 12-month period.

9.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.14 	Sec. 13. Minnesota Statutes 2020, section 340A.404, subdivision 10, is amended to read:
9.15 		Subd. 10.Temporary on-sale licenses. (a) The governing body of a municipality may 
9.16 	issue to (1) a club or charitable, religious, or other nonprofit organization in existence for 
9.17 	at least three years, (2) a political committee registered under section 10A.14, or (3) a state 
9.18 	university, a temporary license for the on-sale of intoxicating liquor in connection with a 
9.19 	social event within the municipality sponsored by the licensee. The license may authorize 
9.20 	the on-sale of intoxicating liquor for not more than four consecutive days, except as provided 
9.21 	for county fairs in section 340A.410, subdivision 10, and may authorize on-sales on premises 
9.22 	other than premises the licensee owns or permanently occupies. The license may provide 
9.23 	that the licensee may contract for intoxicating liquor catering services with the holder of a 
9.24 	full-year on-sale intoxicating liquor license issued by any municipality. The licenses are 
9.25 	subject to the terms, including a license fee, imposed by the issuing municipality. Licenses 
9.26 	issued under this subdivision are subject to all laws and ordinances governing the sale of 
9.27 	intoxicating liquor except sections 340A.409 and 340A.504, subdivision 3, paragraph (d), 
9.28 	and those laws and ordinances which by their nature are not applicable. Licenses under this 
9.29 	subdivision are not valid unless first approved by the commissioner of public safety.
9.30 	(b) A county under this section may issue a temporary license only to a premises located 
9.31 	in the unincorporated or unorganized territory of the county.
10.1 	(c) The governing body of a municipality may issue to a brewer who manufactures fewer 
10.2 	than 3,500 barrels of malt liquor in a year or a microdistillery a temporary license for the 
10.3 	on-sale of intoxicating liquor in connection with a social event within the municipality 
10.4 	sponsored by the brewer or microdistillery. The terms and conditions specified for temporary 
10.5 	licenses under paragraph (a) shall apply to a license issued under this paragraph, except that 
10.6 	the requirements of section 340A.409, subdivisions 1 to 3a, shall apply to the license.

10.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.8 	Sec. 14. Minnesota Statutes 2020, section 340A.410, subdivision 10, is amended to read:
10.9 		Subd. 10.Temporary licenses; restrictions. (a) A municipality may not issue more 
10.10 	than three four-day, four three-day, six two-day, or 12 one-day temporary licenses, in any 
10.11 	combination not to exceed 12 days per year, under section 340A.404, subdivision 10, for 
10.12 	the sale of alcoholic beverages to any one organization or registered political committee, 
10.13 	or for any one location, within a 12-month period.
10.14 	(b) A municipality may not issue more than one temporary license under section 
10.15 	340A.404, subdivision 10, for the sale of alcoholic beverages to any one organization or 
10.16 	registered political committee, or for any one location, within any 30-day period unless the 
10.17 	licenses are issued in connection with an event officially designated a community festival 
10.18 	by the municipality.
10.19 	This restriction does not apply to a municipality with a population of 5,000 or fewer 
10.20 	people.
10.21 	(c) (b) A municipality that issues separate temporary wine and liquor licenses may 
10.22 	separately apply the limitations contained in paragraphsparagraph (a) and (b) to the issuance 
10.23 	of such licenses to any one organization or registered political committee, or for any one 
10.24 	location.
10.25 	(c) In addition to the temporary licenses authorized in paragraph (a), a municipality may 
10.26 	issue one seven-day temporary license per year to a county agricultural society established 
10.27 	under section 38.01, for alcoholic beverage sales at a county fair.

10.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.29 	Sec. 15. Minnesota Statutes 2020, section 340A.412, subdivision 14, is amended to read:
10.30 		Subd. 14.Exclusive liquor stores. (a) Except as otherwise provided in this subdivision, 
10.31 	an exclusive liquor store may sell only the following items:
11.1 	(1) alcoholic beverages;
11.2 	(2) tobacco products;
11.3 	(3) ice;
11.4 	(4) beverages, either liquid or powder, specifically designated for mixing with intoxicating 
11.5 	liquor;
11.6 	(5) soft drinks;
11.7 	(6) liqueur-filled candies;
11.8 	(7) food products that contain more than one-half of one percent alcohol by volume;
11.9 	(8) cork extraction devices;
11.10 	(9) books and videos on the use of alcoholic beverages;
11.11 	(10) magazines and other publications published primarily for information and education 
11.12 	on alcoholic beverages;
11.13 	(11) multiple-use bags designed to carry purchased items;
11.14 	(12) devices designed to ensure safe storage and monitoring of alcohol in the home, to 
11.15 	prevent access by underage drinkers;
11.16 	(13) home brewing equipment; and
11.17 	(14) clothing marked with the specific name, brand, or identifying logo of the exclusive 
11.18 	liquor store, and bearing no other name, brand, or identifying logo.;
11.19 	(15) citrus fruit; and
11.20 	(16) glassware.
11.21 	(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale 
11.22 	license may sell food for on-premise consumption when authorized by the municipality 
11.23 	issuing the license.
11.24 	(c) An exclusive liquor store may offer live or recorded entertainment.

11.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.26 	Sec. 16. EXTENDED HOURS FOR ON-SALE; WORLD CUP.
 11.27 	(a) Notwithstanding the restrictions on the days and hours for on-sale of intoxicating 
11.28 	liquor or 3.2 percent malt liquor in this section, during a FIFA Women's World Cup 
11.29 	competition or FIFA World Cup competition, a licensing jurisdiction may, at its discretion, 
12.1 	issue special permits for service of alcohol through extended hours. The permit only 
12.2 	authorizes the sale of alcoholic beverages 30 minutes before, during, and 30 minutes after 
12.3 	a scheduled broadcast of a live World Cup match. The sales authorized under this subdivision 
12.4 	are not allowed during broadcasts of previously played matches. Only holders of an existing 
12.5 	on-sale intoxicating liquor license or a 3.2 percent malt liquor license are eligible for the 
12.6 	extended hours. Local licensing jurisdictions issuing special permits to operate with extended 
12.7 	hours under this subdivision may charge a fee up to but not to exceed $250 for a permit. In 
12.8 	the process of issuing a permit under this section, the licensing jurisdiction may limit approval 
12.9 	to specified geographic, zoning, or license classifications within its jurisdiction.
12.10 	(b) This section expires September 1, 2023.

12.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.12 	Sec. 17. APPROPRIATION.
 12.13 	$250,000 in fiscal year 2023 is appropriated from the general fund to the commissioner 
12.14 	of public safety for the purpose of hiring two additional full-time employees in the Division 
12.15 	of Alcohol and Gambling Enforcement.

12.16 	ARTICLE 2
12.17 	SPECIAL LOCAL LIQUOR LAWS

12.18 	Section 1. CITY OF WILLMAR; ON-SALE LICENSE.
 12.19 	Notwithstanding any law or ordinance to the contrary, in addition to the number of 
12.20 	licenses authorized, the city of Willmar may issue an on-sale wine license and an on-sale 
12.21 	malt liquor license to a person who is the owner of a junior league hockey team or to a 
12.22 	person holding a concessions or management contract with the city or the team owner for 
12.23 	beverage sales at the Willmar Civic Center. The licenses must authorize the dispensing of 
12.24 	wine or malt liquor only to persons attending events at the civic center for consumption on 
12.25 	the premises. A license issued under this section authorizes sales on all days of the week to 
12.26 	persons attending junior hockey league games or other events at the civic center.

12.27 	EFFECTIVE DATE. This section is effective upon approval by the Willmar City 
12.28 	Council and compliance with Minnesota Statutes, section 645.021.

12.29 	Sec. 2. CITY OF SAUK RAPIDS; ON-SALE LICENSE.
 12.30 	(a) Notwithstanding any law or ordinance to the contrary, in addition to the number of 
12.31 	licenses authorized, the city of Sauk Rapids may issue an on-sale intoxicating liquor license 
13.1 	to an entity holding a management or concessions contract with the city for operation within 
13.2 	Bob Cross Regional Park. The license must authorize the service of intoxicating liquor only 
13.3 	to persons attending events scheduled or organized by the entity, for consumption within 
13.4 	Bob Cross Regional Park.
13.5 	(b) Notwithstanding any law or ordinance to the contrary, in addition to the number of 
13.6 	licenses authorized, the city of Sauk Rapids may issue an on-sale intoxicating liquor license 
13.7 	to an entity holding a concessions or management contract with the city for operation of a 
13.8 	regional event center located within Lions Park or Southside Park. The license must authorize 
13.9 	the service of intoxicating liquor only to persons attending events scheduled or organized 
13.10 	by the entity, for consumption within Lions Park or Southside Park.
13.11 	(c) A license issued under this section authorizes sales on all days of the week. All other 
13.12 	provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section apply.

13.13 	EFFECTIVE DATE. This section is effective upon approval by the Sauk Rapids City 
13.14 	Council and compliance with Minnesota Statutes, section 645.021.

13.15 	Sec. 3. CITY OF ST. PAUL; LICENSE AUTHORIZED.
 13.16 	Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, the city of St. 
13.17 	Paul may issue a temporary on-sale malt liquor license to the Thai Cultural Council of 
13.18 	Minnesota. The license may authorize the sale of malt liquor on the grounds of the State 
13.19 	Capitol for both days of the Minnesota Songkran Festival. All provisions of Minnesota 
13.20 	Statutes, section 340A.404, subdivision 10, not inconsistent with this section, apply to the 
13.21 	license authorized by this section.

13.22 	EFFECTIVE DATE. This section is effective upon approval by the St. Paul City 
13.23 	Council and compliance with Minnesota Statutes, section 645.021.

13.24 	Sec. 4. CITY OF ST. CLOUD; ON-SALE LICENSE.
 13.25 	Notwithstanding any law or ordinance to the contrary, the city of St. Cloud may issue 
13.26 	an on-sale wine license and an on-sale malt liquor license to a city recreation facility known 
13.27 	as Whitney Recreation, located at 1529 Northway Drive, that is owned by the city. The 
13.28 	license must authorize the dispensing of wine or malt liquor only to persons attending events 
13.29 	anywhere on the property described as Whitney Park. The license may be issued to the city 
13.30 	of St. Cloud or to any persons under contract or agreement with the city with respect to the 
13.31 	operation of the facilities. The license authorizes sales on all days of the week. All other 
14.1 	provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section shall 
14.2 	apply.

14.3 	EFFECTIVE DATE. This section is effective upon approval by the St. Cloud City 
14.4 	Council and compliance with Minnesota Statutes, section 645.021.

14.5 	Sec. 5. CITY OF ANOKA; SPECIAL LICENSE.
 14.6 		Subdivision 1.Social district; consumption allowed. The city of Anoka may issue a 
14.7 	social district license to any holder of an on-sale license whose on-sale premises is contiguous 
14.8 	with the premises of the social district designated in subdivision 2. The license authorizes 
14.9 	consumption, but not sales or service, of alcoholic beverages sold by the on-sale licensee 
14.10 	within the social district.
14.11 		Subd. 2.Designation of social district. (a) Prior to issuing the license in subdivision 1, 
14.12 	the city of Anoka must designate and describe the premises of the social district. The district 
14.13 	may not include any area under the ownership or control of a person that objects to the 
14.14 	extension of the social district to that area.
14.15 	(b) The designation must include the specific premises where consumption of alcoholic 
14.16 	beverages is allowed and also include the proposed hours and days in which consumption 
14.17 	of alcoholic beverages is allowed in the social district. The city of Anoka must adopt the 
14.18 	designation by ordinance prior to issuing the license in subdivision 1.
14.19 		Subd. 3.Boundaries clearly defined. The social district must be clearly defined with 
14.20 	signs posted in a conspicuous location indicating the area included in the social district and 
14.21 	the days and hours during which alcoholic beverages may be consumed in the district. In 
14.22 	addition, signs must include:
14.23 	(1) the local law enforcement agency with jurisdiction over the area comprising the 
14.24 	social district; and
14.25 	(2) a clear statement that an alcoholic beverage purchased for consumption in the social 
14.26 	district shall:
14.27 	(i) only be consumed in the social district; and
14.28 	(ii) be disposed of before the person in possession of the alcoholic beverage exits the 
14.29 	social district unless the person is reentering the licensed premises where the alcoholic 
14.30 	beverage was purchased.
14.31 		Subd. 4.Management and maintenance. The city of Anoka must establish management 
14.32 	and maintenance plans for the social district and post these plans, along with a rendering 
15.1 	of the boundaries of the social district and days and hours during which alcoholic beverages 
15.2 	may be consumed in the district, on the website for the city of Anoka. The social district 
15.3 	must be maintained in a manner that protects the health and safety of the general public.
15.4 		Subd. 5.Requirements for on-sale licensees. An on-sale licensee holding a social 
15.5 	district license may only sell and serve alcoholic beverages on the premises specified in the 
15.6 	licensee's on-sale license. The licensee must not allow a person to enter or reenter its on-sale 
15.7 	licensed premises with an alcoholic beverage not sold by the on-sale licensee. Sales for 
15.8 	consumption in the social district must meet the following container requirements:
15.9 	(1) the container clearly identifies the on-sale licensee from which the alcoholic beverage 
15.10 	was purchased;
15.11 	(2) the container clearly displays a logo or some other mark that is unique to the social 
15.12 	district in which it will be consumed;
15.13 	(3) the container is not comprised of glass;
15.14 	(4) the container displays, in no less than 12-point font, the statement, "Drink Responsibly 
15.15 	- Be 21."; and
15.16 	(5) the container shall not hold more than 16 fluid ounces.
15.17 		Subd. 6.Additional social district requirements. The possession and consumption of 
15.18 	an alcoholic beverage in a social district is subject to all of the following requirements:
15.19 	(1) only alcoholic beverages purchased from an on sale-licensee holding a social district 
15.20 	license located in or contiguous to the social district may be possessed and consumed in the 
15.21 	district;
15.22 	(2) alcoholic beverages shall only be in containers meeting the requirements set forth 
15.23 	in subdivision 5;
15.24 	(3) alcoholic beverages shall only be possessed and consumed during the days and hours 
15.25 	set by the city of Anoka as specified in subdivision 2; and
15.26 	(4) a person shall dispose of any alcoholic beverage in the person's possession prior to 
15.27 	exiting the social district unless the person is reentering the on-sale licensed premises where 
15.28 	the alcoholic beverage was purchased.
15.29 		Subd. 7.Report required. Within 24 months from the first issuance of a social district 
15.30 	license, the city of Anoka must provide a report to the chairs and ranking minority members 
15.31 	of the legislative committees with jurisdiction over liquor regulation. The report must include 
15.32 	a discussion of the following subjects:
16.1 	(1) the process used by the city in designating the social district;
16.2 	(2) the community response to the social district, with a concentration on residents living 
16.3 	and businesses operating within a one-mile radius of the district;
16.4 	(3) the response to the social district from both on-sale licensees holding a social district 
16.5 	license and not holding a social district license;
16.6 	(4) the problems or challenges encountered in establishing and overseeing the social 
16.7 	district and social district licenses;
16.8 	(5) any public safety concerns that arose due to the operation of the social district;
16.9 	(6) the benefits and drawbacks to the city of continuing the social district; and
16.10 	(7) recommendations for modifications to the social district special law established in 
16.11 	this section.

16.12 	EFFECTIVE DATE. This section is effective upon approval by the Anoka City Council 
16.13 	and compliance with Minnesota Statutes, section 645.021.

16.14 	Sec. 6. CITY OF ROCHESTER; ON-SALE LICENSE.
 16.15 	Notwithstanding any law or ordinance to the contrary, in addition to the number of 
16.16 	licenses authorized, the city of Rochester may issue an on-sale wine license and an on-sale 
16.17 	malt liquor license to a nonprofit association comprised of members participating in adult 
16.18 	athletic competitions and related events at the McQuillan Park Softball Complex. The 
16.19 	licenses must authorize the dispensing of wine or malt liquor only to persons attending 
16.20 	events at the complex for consumption on the premises. A license issued under this section 
16.21 	authorizes sales on all days of the week to persons attending adult events at the complex.

16.22 	EFFECTIVE DATE. This section is effective upon approval by the Rochester City 
16.23 	Council and compliance with Minnesota Statutes, section 645.021.

16.24 	Sec. 7. CITY OF ALEXANDRIA; ON-SALE LICENSE.
 16.25 	Notwithstanding any law or ordinance to the contrary, in addition to the number of 
16.26 	licenses authorized, the city of Alexandria may issue an on-sale wine license and an on-sale 
16.27 	malt liquor license to a person who is the owner of a junior league hockey team or to a 
16.28 	person holding a concessions or management contract with the city or the team owner for 
16.29 	beverage sales at the Runestone Community Center. The licenses must authorize the 
16.30 	dispensing of wine or malt liquor only to persons attending events at the community center 
16.31 	for consumption on the premises. A license issued under this section authorizes sales on all 
17.1 	days of the week to persons attending junior league hockey games or other events at the 
17.2 	community center.

17.3 	EFFECTIVE DATE. This section is effective upon approval by the Alexandria City 
17.4 	Council and compliance with Minnesota Statutes, section 645.021.
17.5 	Delete the title and insert:
17.6 	A bill for an act
17.7 	relating to liquor; modifying provisions regulating the production and sale of 
17.8 	intoxicating liquor; modifying various licensing provisions; authorizing local 
17.9 	on-sale licenses; appropriating money;amending Minnesota Statutes 2020, sections 
17.10 	340A.101, subdivision 16, by adding a subdivision; 340A.22; 340A.28, subdivision 
17.11 	2; 340A.301, subdivision 8; 340A.307, subdivisions 1, 2, 4; 340A.404, subdivisions 
17.12 	1, 1a, 6, 10; 340A.410, subdivision 10; 340A.412, subdivision 14; proposing coding 
17.13 	for new law in Minnesota Statutes, chapter 340A.

18.1	We request the adoption of this report and repassage of the bill.
	
18.2	Senate Conferees:
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18.3	........
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18.4	Gary Dahms
		Karin Housley
	
18.5	........
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18.6	John Jasinski
		Paul Utke
	
18.7	........
			
18.8	Susan Kent
			
18.9	House Conferees:
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18.10	........
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18.11	Zack Stephenson
		Liz Olson
	
18.12	........
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18.13	Dan Wolgamott
		Carlie Kotyza-Witthuhn
	
18.14	........
			
18.15	Jim Nash