SF 3658

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 10:45am

A bill for an act
relating to liquor; modifying the annual production limit for microdistillery on-
and off-sale to exclude spirits bottled under a third-party contract; amending
Minnesota Statutes 2020, section 340A.22, subdivision 1.

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

Section 1.

Minnesota Statutes 2020, section 340A.22, subdivision 1, is amended to read:

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 can sell cocktails to the public, pursuant to subdivision 2.

(c) A microdistillery 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.

new text begin (d) For purposes of calculating annual production under paragraph (c), distilled spirits
that are bottled by the licensee under a contract bottling agreement with a third party are
excluded from the licensee's annual production if the:
new text end

new text begin (1) third-party contractor is an independent entity that is not owned or controlled by the
licensee;
new text end

new text begin (2) distilled spirits bottled under a third-party contract are not available for sale or
marketed by the licensee or the third party at any location licensed under subdivision 2 or
4; and
new text end

new text begin (3) distilled spirits bottled under a third-party contract are available for distribution by
wholesalers.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end