126fh

     On page 1, line 9, of the Senate State Affairs Committee engrossed bill, delete "pursuant to subdivision 35-4-2(4) or (6)" and insert "for full-service restaurants".

     On page 1, line 10, delete "2" and insert "7".

     On page 1, delete lines 11 to 13, inclusive, and insert:

"      Section 2. Terms used in this Act mean:

             (1)    "Bar," any permanently installed counter within the restaurant area from which alcoholic beverages are regularly served to customers by a person who is tending bar or drawing or mixing alcoholic beverages;

             (2)    "Full-service restaurant," any restaurant at which a waiter or waitress delivers food and drink offered from a printed food menu to patrons at tables, booths, or the bar. Any restaurant that only serves fry orders or food and victuals such as sandwiches, hamburgers, or salads is not a full-service restaurant;

             (3)    "Restaurant," any area in a building maintained, advertised, and held out to the public as a place where individually priced meals are prepared and served primarily for consumption in such area and where not more than fifty percent of the gross revenue of the restaurant is derived from the sale of alcohol or alcoholic beverages. The restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of employees necessary for the preparing, cooking, and serving of meals.

     Section 3. An applicant for a full-service restaurant on-sale license shall provide sufficient documentation to the municipality to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not from the sale of alcoholic beverages. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.

     Section 4. When the municipality is renewing a full-service restaurant on-sale license, the municipality shall condition the license renewal upon receiving documentation that not more than fifty percent of gross sales from the preceding twelve months operation of the full-service restaurant is derived from the sale of alcohol or alcoholic beverages. The full-service restaurant on-sale licensee shall submit an annual report to the municipality on the sales for the full-service restaurant that includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross sales of the licensee for the following two categories:

             (1)    Food and nonalcoholic beverage sales; and

             (2)    Alcoholic beverage sales.

     Section 5. A full-service restaurant on-sale licensee may only serve alcoholic beverages for

on-premise consumption in the bar and dining room area of the restaurant.

     Section 6. A restaurant that has a full-service restaurant on-sale license may only be advertised or held out to the public as primarily a food eating establishment. No licensee that has a full-service restaurant on-sale license may allow smoking on the licensed premises.".

     On page 2, delete lines 1 to 4, inclusive.

     On page 2, line 8, delete "pursuant to subdivision 35-4-2(4) or (6)" and insert "to full-service restaurants".

     On page 2, line 23, after "2008," insert "and who purchased the license or had the license transferred to such licensee at any time between January 1, 2003, and January 1, 2008,".

     On page 3, line 1, after "paid" insert "for the on-sale license to the municipality or county that issued the license".

     On page 3, line 9, before "on-sale" insert "full-service restaurant".

     On page 3, line 9, delete "1" and insert "7".

     On page 3, line 10, after "value." insert "However, such full-service restaurant on-sale license fee may not be less than the minimum on-sale license fee established pursuant to subdivision 35-4- 2(4) or (6).".

     On page 3, line 11, delete "prior to" and insert "between January 1, 2003, and".

     On page 3, line 13, after "2008," insert "who acquired the on-sale license within the last five years".

     On page 3, line 15, delete "The" and insert "Each".

     On page 3, line 15, after "county" insert "adopting an ordinance pursuant to section 1 of this Act".

     On page 3, line 16, delete "4" and insert "9".

     On page 3, line 17, before "on-sale" insert "full-service restaurant".

     On page 3, line 20, delete "4" and insert "9".

     On page 3, line 23, delete "4" and insert "9".

     On page 3, line 23, after "Act." insert "Nothing in this Act precludes the sale of an on-sale license by a licensee not listed on the registry.".

     On page 4, line 1, delete "6" and insert "10".