SF 912

as introduced - 90th Legislature (2017 - 2018) Posted on 02/15/2017 10:39am

A bill for an act
relating to liquor; modifying regulation of off-sales by a microdistillery; regulating
wholesale distribution of microdistillery products; amending Minnesota Statutes
2016, section 340A.22, subdivisions 2, 4, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 340A.22, subdivision 2, is amended to read:

Subd. 2.

Cocktail room license.

(a) A municipality, including a city with a municipal
liquor store, may issue the holder of a microdistillery license under this chapter a
microdistillery cocktail room license. A microdistillery 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. new text begin 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. new text end Nothing in this subdivision precludes the holder of a
microdistillery 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, and may
not have an ownership interest in a distillery licensed under section 340A.301, subdivision
6, clause (a).

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery
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.

Sec. 2.

Minnesota Statutes 2016, section 340A.22, subdivision 4, is amended to read:

Subd. 4.

Off-sale license.

A microdistillery may be issued a license by the local licensing
authority for off-sale of distilled spirits. The license may allow the sale of deleted text begin one 375 milliliter
bottle per customer per day of deleted text end 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 new text begin and the distilled spirits sold at off-sale must be removed from
the premises before the applicable off-sale closing time at exclusive liquor stores, except
that distilled spirits manufactured on site may be sold at off-sale on Sundays. Sunday sales
must be approved by the licensing jurisdiction and hours may be established by those
jurisdictions new text end ; and

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

Sec. 3.

Minnesota Statutes 2016, section 340A.22, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Wholesale distribution. new text end

new text begin A microdistillery may own or have an interest in a
distilled spirits wholesaler that sells only the distiller's products.
new text end