Minnesota Legislature
SF 2264
as introduced - 88th Legislature (2013 - 2014) Posted on 03/05/2014 08:33am
Current Version - as introduced
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A bill for an act
relating to liquor; expanding locations for small wineries; amending Minnesota
Statutes 2012, sections 340A.101, by adding a subdivision; 340A.315; repealing
Minnesota Statutes 2012, section 340A.101, subdivision 11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 340A.101, is amended by adding a
subdivision to read:
new text begin Subd. 26a. new text end
new text begin Small winery. new text end
new text begin
A "small winery" is a winery producing table, sparkling,
or fortified wine from grapes, grape juice, other fruit or fruit juices, or honey, with a
majority of the ingredients grown or produced in Minnesota.
new text end
Sec. 2.
Minnesota Statutes 2012, section 340A.315, is amended to read:
340A.315 deleted text begin FARMdeleted text end new text begin SMALLnew text end WINERY LICENSE.
Subdivision 1.
Licenses.
The commissioner may issue a deleted text begin farmdeleted text end new text begin smallnew text end winery license
to the owner or operator of a deleted text begin farmdeleted text end new text begin smallnew text end winery located within the state and producing
table, sparkling, or fortified wines. Licenses may be issued and renewed for an annual fee
of $50, which is in lieu of all other license fees required by this chapter.
Subd. 2.
Sales.
A license authorizes the sale, on the deleted text begin farmdeleted text end new text begin smallnew text end winery premises,
of table, sparkling, or fortified wines produced by that deleted text begin farmdeleted text end new text begin smallnew text end winery at on-sale or
off-sale, in retail, or wholesale lots in total quantities not in excess of 50,000 gallons in
a calendar year, glassware, wine literature and accessories, cheese and cheese spreads,
other wine-related food items, and the dispensing of free samples of the wines offered
for sale. Sales at on-sale and off-sale may be made on Sundays between 10:00 a.m. and
12:00 midnight. Labels for each type or brand produced must be registered with the
commissioner, without fee prior to sale. A deleted text begin farmdeleted text end new text begin smallnew text end winery may provide samples
of distilled spirits manufactured pursuant to subdivision 7, on the deleted text begin farmdeleted text end new text begin smallnew text end winery
premises, but may sell the distilled spirits only through a licensed wholesaler. Samples of
distilled spirits may not exceed 15 milliliters per variety.
Subd. 3.
Applicability.
Except as otherwise specified in this section, all provisions
of this chapter govern the production, sale, possession, and consumption of table,
sparkling, or fortified wines produced by a deleted text begin farmdeleted text end new text begin smallnew text end winery.
Subd. 4.
Minnesota products.
If Minnesota-produced or -grown grapes, grape
juice, other fruit bases, or honey is not available in quantities sufficient to constitute
a majority of the table, sparkling, or fortified wine produced by a deleted text begin farmdeleted text end new text begin smallnew text end winery,
the holder of the deleted text begin farmdeleted text end new text begin smallnew text end winery license may file an affidavit stating this fact with
the commissioner. If the commissioner, after consultation with the commissioner of
agriculture, determines this to be true, the deleted text begin farmdeleted text end new text begin smallnew text end winery may use imported products
and shall continue to be governed by the provisions of this section. The affidavit is
effective for a period of one year, after which time the deleted text begin farmdeleted text end new text begin smallnew text end winery must use the
required amount of Minnesota products as provided by subdivision 1 unless the deleted text begin farmdeleted text end new text begin small
new text end winery holder files a new affidavit with the commissioner.
Subd. 6.
On-sale licenses allowed.
Nothing in this section or in any other section of
law prevents a deleted text begin farmdeleted text end new text begin smallnew text end winery from obtaining a separate on-sale license and operating
a business establishment that utilizes that license in conjunction with and within the
physical facilities of the winery and its buildings.
Subd. 7.
Distilled spirits permitted.
deleted text begin Farmdeleted text end new text begin Small new text end wineries licensed under
this section are permitted to manufacture distilled spirits as defined under section
340A.101, subdivision 9, which may exceed 25 percent alcohol by volume, made from
Minnesota-produced or Minnesota-grown grapes, grape juice, other fruit bases, or honey.
The following conditions pertain:
(1) no deleted text begin farmdeleted text end new text begin smallnew text end winery or firm owning multiple deleted text begin farmdeleted text end new text begin smallnew text end wineries may
manufacture more than 5,000 gallons of distilled spirits in a given year, and this 5,000
gallon limit is part of the 50,000 gallon limit found in subdivision 2;
(2) deleted text begin farmdeleted text end new text begin smallnew text end wineries must pay an additional annual fee of $50 to the commissioner
before beginning production of distilled spirits; and
(3) deleted text begin farmdeleted text end new text begin smallnew text end wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).
Subd. 8.
Bulk wine.
deleted text begin Farmdeleted text end new text begin Smallnew text end wineries licensed under this section are permitted
to purchase and use bulk wine, provided that:
(1) the quantity of bulk wine in any deleted text begin farmdeleted text end new text begin smallnew text end winery's annual production shall not
exceed ten percent of that winery's annual production;
(2) the bulk wine under subdivision 4 shall be counted as a portion of the 49
percent of product that need not be Minnesota-grown and may be imported from outside
Minnesota; and
(3) the bulk wine must be blended and not directly bottled.
"Bulk wine," as used in this subdivision, means fermented juice from grapes, other
fruit bases, or honey.
deleted text begin Subd. 9. deleted text end
deleted text begin Agricultural land. deleted text end
deleted text begin
A farm winery license must be issued for operation of
a farm winery on agricultural land, operating under an agricultural classification, zone,
or conditional use permit. Farm wineries with licenses issued prior to March 1, 2012,
are exempt from this provision.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall replace the term "farm winery" with "small winery" in
Minnesota Statutes.
new text end
Sec. 4. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, section 340A.101, subdivision 11,
new text end
new text begin
is repealed.
new text end