SF 3484

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to alcoholic beverages; allowing a farm winery to produce wines and
fortified wines; increasing the amount of non-Minnesota produce that may be
used in a farm winery operation; allowing a phase-in for start-up operations;
amending Minnesota Statutes 2004, sections 340A.101, subdivision 11, by
adding a subdivision; 340A.315.

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

Section 1.

Minnesota Statutes 2004, section 340A.101, subdivision 11, is amended to
read:

Subd. 11.

Farm winery.

"Farm winery" is a winery operated by the owner of
a Minnesota farm and producing new text begin fortified wine, wine, new text end table new text begin , new text end or sparkling wines from
grapes, grape juice, other fruit bases, or honey with a majority of the ingredients grown or
produced in Minnesota.

Sec. 2.

Minnesota Statutes 2004, section 340A.101, is amended by adding a
subdivision to read:

new text begin Subd. 11a. new text end

new text begin Fortified wine. new text end

new text begin A "fortified wine" is any product described under
subdivision 29 that is fortified by the addition of alcohol or spirits.
new text end

Sec. 3.

Minnesota Statutes 2004, section 340A.315, is amended to read:

340A.315 FARM WINERY LICENSE.

Subdivision 1.

Licenses.

The commissioner may issue a farm winery license to the
owner or operator of a farm winery located within the state and producing new text begin fortified wine,
wine, new text end table new text begin , new text end or sparkling 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 farm winery premises, of
new text begin fortified wine, wine, new text end table new text begin , new text end or sparkling wines produced by that farm 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, 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 12:00 noon and 12:00 midnight. Labels for each type
or brand produced must be registered with the commissioner, without fee prior to sale.

Subd. 3.

Applicability.

Except as otherwise specified in this section, all provisions
of this chapter govern the production, sale, possession, and consumption of new text begin fortified wine,
wine, new text end table new text begin , new text end or sparkling wines produced by a farm 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
deleted text begin a majority deleted text end new text begin forty percent new text end of the new text begin fortified wine, wine, new text end table new text begin , new text end or sparkling wine produced by a
farm winery, the holder of the farm 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 farm 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 farm winery must use the required amount
of Minnesota products as provided by subdivision deleted text begin 1 deleted text end new text begin 5 new text end unless the farm winery holder
files a new affidavit with the commissioner.

new text begin Subd. 5. new text end

new text begin Start-up operations. new text end

new text begin An applicant for a farm winery license may use
imported farm products during the first three years of operation as follows:
new text end

new text begin (a) during the first 36 months of operation after first being issued a license under this
section it may use as much as 100 percent imported products;
new text end

new text begin (b) during the following 24 months it may use as much as 80 percent imported
products; and
new text end

new text begin (c) thereafter may use as much as 60 percent imported products.
new text end