Relates to licenses to sell liquor at retail for consumption on certain premises

BILL NUMBER:S7686

Title of bill

An act to amend the alcoholic beverage control law, in relation to licenses to sell liquor at retail for consumption on certain premises

Purpose or general idea of bill

The purpose of this legislation is to correct an unintended consequence of legislation attempting to further define the concept of "exclusively occupied" as a church, synagogue or other place of worship for purposes of the 200 foot rule. The bill would clarify that buildings occupied as houses of worship may enter into "shared space" arrangements with catering tenants where the primary benefit to the religious congregation is financial support for the congregation, while still retaining their status as a religious institution.

Summary of specific provisions

Subdivision 7 of section 64 of the Alcoholic Beverage Control Law is amended by the indicated changes to Paragraphs c and d-1.

Justification

The alcohol beverage control law requires that in order for a building occupied as a place of worship to benefit from the 200-foot rule, or from the "Church-Venue Exception" to that rule (which excludes from application of the rule catering businesses operating in a church building within 200 feet of another church or school), the building must remain "exclusively" occupied as a place of worship.

In 2007, legislation was passed listing activities that would be regarded as consistent with the conduct of a building as a place of worship. The list of activities was not exhaustive and requires additional clarification to allow religious organizations that enter into shared space agreements with caterers to retain the status of their buildings as a churches, synagogues or other places of worship.

Many religious organizations in this state that own their places of worship, including places of worship with architectural and historical significance, are finding it increasingly difficult to afford annual maintenance and repairs of their buildings. Faced with such difficulties, religious organizations often share their space with third party entities in order to produce much-needed supplementary revenue, rather than sell their buildings and property. While the passage of special legislation can exempt a particular property from the application of the 200 foot rule, such legislation is impractical as a solution for every religious organization that enters into a shared space arrangement with a caterer designed to benefit the congregation, in particular by allowing the religious organization to maintain ownership of its house of worship and keep it in good repair..

Fiscal implications

None.

Effective date

This act shall take effect immediately.