The League Of Minnesota Cities has received a few questions regarding how to implement the new liquor laws concerning such changes as new operating hours, off-sale licenses for microdistilleries and Sunday growler sales.
Since these laws are already in effect, here's a little guidance in case your city is approached.
MICRODISTILLERY OFF-SALE LICENSE
A microdistillery licensed by the state may approach the city for an off-sale license for sale of distilled spirits produced on-site.
The city does not have to issue a license, of course.
But if the city wants to allow off-sale by the microdistilleries, it should make sure its liquor ordinance accommodates this.
The hours for off-sale at the microdistillery must be the same as the hours for the rest of the off-sale liquor establishments in the city.
According to the state, state approval of this license is not necessary, but the state should be notified as with most on-sale licenses.
Once the city's licensing ordinance allowing for this is published, the license is effective.
OFF-SALE GROWLERS ON SUNDAY
It's possible the city may be approached by a state-licensed brewer that is interested in Sunday off-sale of growlers of malt liquor produced and packaged by the brewer.
To do so, the brewer will need an off-sale license and general approval of Sunday growler sales from the city council.
If a brewer already has an off-sale license (to sell growlers), the city must simply approve Sunday growler sales in general, as well as the hours off-sale can occur.
Upon publication of an ordinance doing this, the licensed brewer may sell growlers on Sunday.
If the brewer doesn't have an off-sale license, and the city wishes to grant such a license, first the city needs to make sure the city ordinance allows for such a license.
The city must still approve Sunday sales and the hours for which Sunday sales of growlers are permitted.
Once such an ordinance is published and the new license is approved by the state, Sunday growler sales are legal.
If the city doesn't wish to allow Sunday sales of growlers, it need not issue this license.
MICRODISTILLERY TEMPORARY LICENSE
Previously, a small brewer could obtain a temporary license for the on-sale of intoxicating liquor in connection with a social event within the city and sponsored by the brewer.
Now microdistilleries can also get a temporary license for such an event.
This license is subject to the same requirements (e.g., state approval, insurance) as other temporary on-sale intoxicating liquor licenses, but a city's ordinance may need to be changed to allow it to be issued to a microdistillery.
"BLOODY MARY" LAW
In cities where Sunday on-sale has been authorized by voters, a restaurant, club, bowling center or hotel (with a seating capacity of at least 30 persons) that holds an on-sale intoxicating liquor license and a Sunday license may now serve intoxicating liquor with food on Sundays as early as 8:00 AM.
Previously, no alcohol could be served by an establishment prior to 10:00 AM on Sunday.
How a city must proceed depends on whether it wishes to allow the earlier start time and whether it has set specific hours of Sunday on-sale service by ordinance.
If a city has explicitly stated hours of Sunday on-sale liquor service in ordinance and wishes to allow Sunday sales as early as 8:00, it will have to change the ordinance.
If the city doesn't wish to change the specific hours set in ordinance, the city need not change them and businesses must continue to follow the ordinance.
If the city has not set hours of Sunday on-sale in ordinance or simply defers to state law on the matter, it need not change its ordinance now unless it wants to set a start time other than 8:00 AM.
Edward S. Cadman | Special Counsel
League of Minnesota Cities
Direct: 651.281.1229 | Fax: 651.215.4129
Email: ecadman@lmc.org | www.lmc.org