<a id="pl.1.3"></a><var>1.3</var>conditions; permitting farm wineries to manufacture distilled spirits under certain <br/>
<a id="pl.1.4"></a><var>1.4</var>conditions; authorizing a liquor license; requiring a report;amending Minnesota <br/>
<a id="pl.1.5"></a><var>1.5</var>Statutes 2006, sections 169A.35, subdivision 6; 340A.315, subdivision 2, by <br/>
<a id="pl.1.6"></a><var>1.6</var>adding a subdivision; Minnesota Statutes 2007 Supplement, section 340A.412, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision 4.<br/>
<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>    Section 1. Minnesota Statutes 2006, section 169A.35, subdivision 6, is amended to <br/>
<a id="pl.1.10"></a><var>1.10</var>read:<br/>
<a id="pl.1.11"></a><var>1.11</var>    Subd. 6. <b>Exceptions.</b> (a) This section does not prohibit the possession or <br/>
<a id="pl.1.12"></a><var>1.12</var>consumption of alcoholic beverages by passengers in:<br/>
<a id="pl.1.13"></a><var>1.13</var>    (1) a bus that is operated by a motor carrier of passengers, as defined in section <br/>
<statute_ref><a id="pl.1.14"></a><var>1.14</var>221.011, subdivision 48
         </statute_ref>; or<br/>
<a id="pl.1.15"></a><var>1.15</var>    (2) a vehicle that is operated for commercial purposes in a manner similar to a <br/>
<a id="pl.1.16"></a><var>1.16</var>bicycle as defined in section 169.01, subdivision 51, with three or more passengers who <br/>
<a id="pl.1.17"></a><var>1.17</var>provide pedal power to the drive train of the vehicle; or<br/>
<a id="pl.1.18"></a><var>1.18</var>    (2) (3) a vehicle providing limousine service as defined in section 
         <statute_ref>221.84, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision 1
         </statute_ref>.<br/>
<a id="pl.1.20"></a><var>1.20</var>    (b) Subdivisions 3 and 4 do not apply to a bottle or receptacle that is in the trunk <br/>
<a id="pl.1.21"></a><var>1.21</var>of the vehicle if it is equipped with a trunk, or that is in another area of the vehicle not <br/>
<a id="pl.1.22"></a><var>1.22</var>normally occupied by the driver and passengers if the vehicle is not equipped with a <br/>
<a id="pl.1.23"></a><var>1.23</var>trunk. However, a utility compartment or glove compartment is deemed to be within the <br/>
<a id="pl.1.24"></a><var>1.24</var>area occupied by the driver and passengers.<br/>
<a id="pl.1.25"></a><var>1.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.1"></a><var>2.1</var>    Sec. 2. Minnesota Statutes 2006, section 340A.315, subdivision 2, is amended to read:<br/>
<a id="pl.2.2"></a><var>2.2</var>    Subd. 2. <b>Sales.</b> A license authorizes the sale, on the farm winery premises, of table, <br/>
<a id="pl.2.3"></a><var>2.3</var>sparkling, or fortified  wines produced by that farm winery at on-sale or off-sale, in retail, <br/>
<a id="pl.2.4"></a><var>2.4</var>or wholesale lots in total quantities not in excess of 50,000 gallons in a calendar year, <br/>
<a id="pl.2.5"></a><var>2.5</var>glassware, wine literature and accessories, cheese and cheese spreads, other wine-related <br/>
<a id="pl.2.6"></a><var>2.6</var>food items, and the dispensing of free samples of the wines offered for sale. Sales at <br/>
<a id="pl.2.7"></a><var>2.7</var>on-sale and off-sale may be made on Sundays between 12:00 noon and 12:00 midnight. <br/>
<a id="pl.2.8"></a><var>2.8</var>Labels for each type or brand produced must be registered with the commissioner, without <br/>
<a id="pl.2.9"></a><var>2.9</var>fee prior to sale. Distilled spirits manufactured pursuant to subdivision 7 may only be sold <br/>
<a id="pl.2.10"></a><var>2.10</var>through a licensed wholesaler. A farm winery may provide samples of distilled spirits in <br/>
<a id="pl.2.11"></a><var>2.11</var>the same manner as they are able for farm wines.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.12"></a><var>2.12</var>    Sec. 3. Minnesota Statutes 2006, section 340A.315, is amended by adding a <br/>
<a id="pl.2.13"></a><var>2.13</var>subdivision to read:<br/>
<a id="pl.2.14"></a><var>2.14</var>    Subd. 7. <b>Distilled spirits permitted.</b> Farm wineries licensed under this section are <br/>
<a id="pl.2.15"></a><var>2.15</var>permitted to manufacture distilled spirits as defined under section 340A.101, subdivision <br/>
<a id="pl.2.16"></a><var>2.16</var>9, which may exceed 25 percent alcohol by volume, made from Minnesota produced or <br/>
<a id="pl.2.17"></a><var>2.17</var>grown grapes, grape juice, other fruit bases, or honey. The following conditions pertain:<br/>
<a id="pl.2.18"></a><var>2.18</var>    (1) no farm winery or firm owning multiple farm wineries may manufacture more <br/>
<a id="pl.2.19"></a><var>2.19</var>than 5,000 gallons of distilled spirits in a given year, and this 5,000 gallon limit is part of <br/>
<a id="pl.2.20"></a><var>2.20</var>the 50,000 gallon limit found in subdivision 2;<br/>
<a id="pl.2.21"></a><var>2.21</var>    (2) farm wineries must pay an additional annual fee of $500 to the commissioner <br/>
<a id="pl.2.22"></a><var>2.22</var>before beginning production of distilled spirits; and<br/>
<a id="pl.2.23"></a><var>2.23</var>    (3) farm wineries may not sell or produce distilled spirits for direct sale to <br/>
<a id="pl.2.24"></a><var>2.24</var>manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).<br/>
<a id="pl.2.25"></a><var>2.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.26"></a><var>2.26</var>    Sec. 4. Minnesota Statutes 2007 Supplement, section 340A.412, subdivision 4, is <br/>
<a id="pl.2.27"></a><var>2.27</var>amended to read:<br/>
<a id="pl.2.28"></a><var>2.28</var>    Subd. 4. <b>Licenses prohibited in certain areas.</b> (a) No license to sell intoxicating <br/>
<a id="pl.2.29"></a><var>2.29</var>liquor may be issued within the following areas:<br/>
<a id="pl.2.30"></a><var>2.30</var>    (1) where restricted against commercial use through zoning ordinances and other <br/>
<a id="pl.2.31"></a><var>2.31</var>proceedings or legal processes regularly had for that purpose, except licenses may be <br/>
<a id="pl.2.32"></a><var>2.32</var>issued to restaurants in areas which were restricted against commercial uses after the <br/>
<a id="pl.2.33"></a><var>2.33</var>establishment of the restaurant;<br/>
<a id="pl.3.1"></a><var>3.1</var>    (2) within the Capitol or on the Capitol grounds, except as provided under Laws <br/>
<a id="pl.3.2"></a><var>3.2</var>1983, chapter 259, section 9, or Laws 1999, chapter 202, section 13;<br/>
<a id="pl.3.3"></a><var>3.3</var>    (3) on the State Fairgrounds, except as provided under section 37.21, subdivision 2;<br/>
<a id="pl.3.4"></a><var>3.4</var>    (4) on the campus of the College of Agriculture of the University of Minnesota;<br/>
<a id="pl.3.5"></a><var>3.5</var>    (5) within 1,000 feet of a state hospital, training school, reformatory, prison, or other <br/>
<a id="pl.3.6"></a><var>3.6</var>institution under the supervision or control, in whole or in part, of the commissioner of <br/>
<a id="pl.3.7"></a><var>3.7</var>human services or the commissioner of corrections;<br/>
<a id="pl.3.8"></a><var>3.8</var>    (6) in a town or municipality in which a majority of votes at the last election <br/>
<a id="pl.3.9"></a><var>3.9</var>at which the question of license was voted upon were not in favor of license under <br/>
<a id="pl.3.10"></a><var>3.10</var>section 
         <statute_ref>340A.416</statute_ref>, or within one-half mile of any such town or municipality, except that <br/>
<a id="pl.3.11"></a><var>3.11</var>intoxicating liquor manufactured within this radius may be sold to be consumed outside it;<br/>
<a id="pl.3.12"></a><var>3.12</var>    (7) within 1,500 feet of a state university, except that:<br/>
<a id="pl.3.13"></a><var>3.13</var>    (i) the minimum distance in the case of Winona and Southwest State University is <br/>
<a id="pl.3.14"></a><var>3.14</var>1,200 feet, measured by a direct line from the nearest corner of the administration building <br/>
<a id="pl.3.15"></a><var>3.15</var>to the main entrance of the licensed establishment;<br/>
<a id="pl.3.16"></a><var>3.16</var>    (ii) within 1,500 feet of St. Cloud State University one on-sale wine and two off-sale <br/>
<a id="pl.3.17"></a><var>3.17</var>intoxicating liquor licenses may be issued, measured by a direct line from the nearest <br/>
<a id="pl.3.18"></a><var>3.18</var>corner of the administration building to the main entrance of the licensed establishment;<br/>
<a id="pl.3.19"></a><var>3.19</var>    (iii) at Mankato State University the distance is measured from the front door of <br/>
<a id="pl.3.20"></a><var>3.20</var>the student union of the Highland campus;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (iv) a temporary license under section 
         <statute_ref>340A.404, subdivision 10</statute_ref>, may be issued to <br/>
<a id="pl.3.22"></a><var>3.22</var>a location on the grounds of a state university for an event sponsored or approved by <br/>
<a id="pl.3.23"></a><var>3.23</var>the state university; and<br/>
<a id="pl.3.24"></a><var>3.24</var>    (v) this restriction does not apply to the area surrounding the premises of <br/>
<a id="pl.3.25"></a><var>3.25</var>Metropolitan State University in Minneapolis; and<br/>
<a id="pl.3.26"></a><var>3.26</var>    (8) within 1,500 feet of any public school that is not within a city.<br/>
<a id="pl.3.27"></a><var>3.27</var>    (b) The restrictions of this subdivision do not apply to a manufacturer or wholesaler <br/>
<a id="pl.3.28"></a><var>3.28</var>of intoxicating liquor or to a drugstore or to a person who had a license originally issued <br/>
<a id="pl.3.29"></a><var>3.29</var>lawfully prior to July 1, 1967.<br/>
<a id="pl.3.30"></a><var>3.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.31"></a><var>3.31</var>    Sec. 5. <b>SPECIAL LICENSE; MINNEAPOLIS.</b><br/>
<a id="pl.3.32"></a><var>3.32</var>    Notwithstanding any law, local ordinance, or charter provision, the city of <br/>
<a id="pl.3.33"></a><var>3.33</var>Minneapolis may issue an on-sale intoxicating liquor license to a restaurant located at <br/>
<a id="pl.3.34"></a><var>3.34</var>1367 Willow Street South. The provisions of Minnesota Statutes, chapter 340A, apply to <br/>
<a id="pl.3.35"></a><var>3.35</var>licenses issued under this section. The license authorizes sales on all days of the week.<br/>
<a id="pl.4.1"></a><var>4.1</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the Minneapolis <br/>
<a id="pl.4.2"></a><var>4.2</var>City Council in the manner provided by Minnesota Statutes, section 645.021, <br/>
<a id="pl.4.3"></a><var>4.3</var>notwithstanding Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.4"></a><var>4.4</var>    Sec. 6. <b>TEMPORARY CLOSING TIME.</b><br/>
<a id="pl.4.5"></a><var>4.5</var>    During the 2008 Republican National Convention, licensing jurisdictions that lie <br/>
<a id="pl.4.6"></a><var>4.6</var>fully or partially within the seven-county metropolitan area may at their discretion issue <br/>
<a id="pl.4.7"></a><var>4.7</var>special permits for service of alcohol through extended hours lasting until 4:00 a.m. each <br/>
<a id="pl.4.8"></a><var>4.8</var>day. This section is subject to the following conditions:<br/>
<a id="pl.4.9"></a><var>4.9</var>    (1) only holders of an existing on-sale intoxicating liquor license or a 3.2 malt liquor <br/>
<a id="pl.4.10"></a><var>4.10</var>license are eligible for later closing hours;<br/>
<a id="pl.4.11"></a><var>4.11</var>    (2) later closing hours apply only during the period from 12:00 p.m. on August 31, <br/>
<a id="pl.4.12"></a><var>4.12</var>2008, through 4:00 a.m. on September 5, 2008;<br/>
<a id="pl.4.13"></a><var>4.13</var>    (3) local licensing jurisdictions issuing special permits to operate with extended <br/>
<a id="pl.4.14"></a><var>4.14</var>hours during these days, may charge a fee up to but not to exceed $2,500 for such a <br/>
<a id="pl.4.15"></a><var>4.15</var>permit. In the process of issuing a permit under this section, the licensing jurisdiction <br/>
<a id="pl.4.16"></a><var>4.16</var>may limit approval to specified geographic, zoning, or license classifications within its <br/>
<a id="pl.4.17"></a><var>4.17</var>jurisdiction; and <br/>
<a id="pl.4.18"></a><var>4.18</var>    (4) this section is repealed as of 4:01 a.m. on September 5, 2008.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.19"></a><var>4.19</var>    Sec. 7. <b>REPORT.</b><br/>
<a id="pl.4.20"></a><var>4.20</var>    The House Research Department and Office of Senate Counsel, Research and Fiscal <br/>
<a id="pl.4.21"></a><var>4.21</var>Analysis shall review issues surrounding the production and sale of distilled spirits by <br/>
<a id="pl.4.22"></a><var>4.22</var>microdistillers, farm wineries, wholesalers, retailers, or other avenues for sale, and shall <br/>
<a id="pl.4.23"></a><var>4.23</var>report to the relevant committees of the house of representatives and senate, by February <br/>
<a id="pl.4.24"></a><var>4.24</var>1, 2009, on the legal and policy implications of changes in these statutes. This report shall <br/>
<a id="pl.4.25"></a><var>4.25</var>include a review of laws from other states, and shall not make recommendations.<br/>