02/09/2004 Council Packet - Laserfiche WebLink

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Permits Local license limits Brewpubs selling at off -sale In order to continue on -sales until 2:00 a.m., a licensed establishment must obtain a permit from the state Department of Public Safety. The permit is in addition to the establishment's on -sale license issued by the city or county. The permit is valid for a year. The fee for on -sale retailers of intoxicating liquor is based on the establishment's gross receipts from alcohol sales in the previous year: ■ Up to $100,000 in gross receipts, $200 ■ Over $100,000 but not over $500,000 in gross receipts, $500 ■ Over $500,000 in gross receipts, $600 For intoxicating liquor establishments that have been in business less than a year, 3.2 beer licensees, and consumption and display permit holders, the fee is $200. The legislature enacted the permit requirement in order to raise money to partly offset the cost of additional troopers for the State Patrol. A study by the Revenue Department will determine if the new hours generate at least $3.85 million annually in new state tax revenue. If the study shows that they do, the permit requirement will be repealed beginning July 1, 2005. For many years state law has limited the number of on -sale intoxicating liquor licenses that cities could issue. First -class cities (Minneapolis, St. Paul, and Duluth), for instance, were allowed to issue one license for every 1,500 persons up to a maximum of 200. Cities wanting to issue more licenses than state law allowed had to come to the legislature for authorization. The 2003 omnibus liquor bill exempted on -sale licenses to restaurants and hotels from these limits. Since almost all licenses for which legislative approval had been sought in past years fall into one of these categories, the result is to all but end the practice of seeking additional licenses from the legislature. Special liquor laws to allow licenses to establishments that couldn't be licensed under general law for other reasons are likely to continue. The omnibus liquor bill also allowed "bewpubs" (restaurants that brew beer on the premises) to sell their products in bottles for consumption off the premises. Sales can only be made in 64 -ounce bottles known as "growlers" that must be sealed on the premises. Brewpubs can sell no more than half their annual maximum output of 3,500 barrels at off-sale, up to a maximum of 500 barrels. Their off -sale hours would be the same as for package stores. For more information: Contact legislative analyst John Williams at 651- 296 -5045. The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department 1 600 State Office Building 1 St. Paul, MN 55155 1 651 - 296 -6753 1 www.house.mn /hrd /hrd.htm