HF 3065

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/03/2022 06:42pm

A bill for an act
relating to liquor; allowing distilleries of any size to operate a cocktail room;
amending Minnesota Statutes 2020, section 340A.22.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 340A.22, is amended to read:

340A.22 MICRODISTILLERIES.

Subdivision 1.

Activities.

(a) A microdistillery licensed under this chapter may provide
on its premises samples of distilled spirits manufactured on its premises, in an amount not
to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled
under this paragraph by any person on any day.

(b) A microdistillery new text begin or other licensed manufacturer of distilled spirits new text end can sell cocktails
to the public, pursuant to subdivision 2.

(c) A microdistillery new text begin or other licensed manufacturer of distilled spirits new text end may not operate
a cocktail room under subdivision 2 or conduct sales at off-sale under subdivision 4 unless
at least 50 percent of the annual production of the licensee is processed and distilled on
premises.

(d) Distilled spirits produced or in production prior to July 1, 2017, are not counted as
part of the calculations under paragraph (c).

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal
liquor store, may issue the holder of a microdistillery license new text begin or distilled spirits manufacturer
license new text end under this chapter a deleted text begin microdistillery deleted text end cocktail room license. A deleted text begin microdistillery deleted text end cocktail
room license authorizes on-sale of distilled liquor produced by the distiller for consumption
on the premises of or adjacent to one distillery location owned by the distiller.
Notwithstanding section 340A.504, subdivision 3, a cocktail room may be open and may
conduct on-sale business on Sundays if authorized by the municipality. Nothing in this
subdivision precludes the holder of a deleted text begin microdistillery deleted text end cocktail room license from also holding
a license to operate a restaurant at the distillery. Section 340A.409 shall apply to a license
issued under this subdivision. All provisions of this chapter that apply to a retail liquor
license shall apply to a license issued under this subdivision unless the provision is explicitly
inconsistent with this subdivision.

(b) A distiller may only have one cocktail room license under this subdivision deleted text begin , and may
not have an ownership interest in a distillery licensed under section 340A.301, subdivision
6, clause (a) deleted text end .

(c) The municipality shall impose a licensing fee on a distiller holding a deleted text begin microdistillery deleted text end
cocktail room license under this subdivision, subject to limitations applicable to license fees
under section 340A.408, subdivision 2, paragraph (a).

(d) A municipality shall, within ten days of the issuance of a license under this
subdivision, inform the commissioner of the licensee's name and address and trade name,
and the effective date and expiration date of the license. The municipality shall also inform
the commissioner of a license transfer, cancellation, suspension, or revocation during the
license period.

(e) No single entity may hold both a cocktail room and taproom license, and a cocktail
room and taproom may not be colocated.

Subd. 3.

License; fee.

The commissioner shall establish a fee for licensing
microdistilleries that adequately covers the cost of issuing the license and other inspection
requirements. The fees shall be deposited in an account in the special revenue fund and are
appropriated to the commissioner for the purposes of this subdivision. All other requirements
of section 340A.301 apply to a license under this section.

Subd. 4.

Off-sale license.

A microdistillery new text begin or other manufacturer of distilled spirits
new text end may be issued a license by the local licensing authority for off-sale of distilled spirits, with
the approval of the commissioner. The license may allow the sale of one 375 milliliter bottle
per customer per day of product manufactured on site, subject to the following requirements:

(1) off-sale hours of sale must conform to hours of sale for retail off-sale licensees in
the licensing municipality; and

(2) no brand may be sold at the microdistillery unless it is also available for distribution
by wholesalers.