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Key: (1) language to be deleted (2) new language

CHAPTER 311--S.F.No. 3672
An act
relating to liquor; regulating consumption and service of alcohol under
certain conditions; permitting farm wineries to manufacture distilled spirits
under certain conditions; authorizing a liquor license;amending Minnesota
Statutes 2006, sections 169A.35, subdivision 6; 340A.315, subdivision 2, by
adding a subdivision; Minnesota Statutes 2007 Supplement, section 340A.412,
subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2006, section 169A.35, subdivision 6, is amended to
read:
    Subd. 6. Exceptions. (a) This section does not prohibit the possession or
consumption of alcoholic beverages by passengers in:
    (1) a bus that is operated by a motor carrier of passengers, as defined in section
221.011, subdivision 48; or
    (2) a vehicle that is operated for commercial purposes in a manner similar to a
bicycle as defined in section 169.01, subdivision 51, with five or more passengers who
provide pedal power to the drive train of the vehicle; or
    (3) a vehicle providing limousine service as defined in section 221.84, subdivision 1.
    (b) Subdivisions 3 and 4 do not apply to a bottle or receptacle that is in the trunk
of the vehicle if it is equipped with a trunk, or that is in another area of the vehicle not
normally occupied by the driver and passengers if the vehicle is not equipped with a
trunk. However, a utility compartment or glove compartment is deemed to be within the
area occupied by the driver and passengers.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2006, section 340A.315, subdivision 2, is amended to read:
    Subd. 2. Sales. A license authorizes the sale, on the farm winery premises, of table,
sparkling, or fortified 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, 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 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. A farm winery may provide samples of distilled spirits manufactured
pursuant to subdivision 7, on the farm winery premises, but may sell the distilled spirits
only through a licensed wholesaler. Samples of distilled spirits may not exceed 15
milliliters per variety.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2006, section 340A.315, is amended by adding a
subdivision to read:
    Subd. 7. Distilled spirits permitted. Farm 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
grown grapes, grape juice, other fruit bases, or honey. The following conditions pertain:
    (1) no farm winery or firm owning multiple farm 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) farm wineries must pay an additional annual fee of $500 to the commissioner
before beginning production of distilled spirits; and
    (3) farm wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2007 Supplement, section 340A.412, subdivision 4, is
amended to read:
    Subd. 4. Licenses prohibited in certain areas. (a) No license to sell intoxicating
liquor may be issued within the following areas:
    (1) where restricted against commercial use through zoning ordinances and other
proceedings or legal processes regularly had for that purpose, except licenses may be
issued to restaurants in areas which were restricted against commercial uses after the
establishment of the restaurant;
    (2) within the Capitol or on the Capitol grounds, except as provided under Laws
1983, chapter 259, section 9, or Laws 1999, chapter 202, section 13;
    (3) on the State Fairgrounds, except as provided under section 37.21, subdivision 2;
    (4) on the campus of the College of Agriculture of the University of Minnesota;
    (5) within 1,000 feet of a state hospital, training school, reformatory, prison, or other
institution under the supervision or control, in whole or in part, of the commissioner of
human services or the commissioner of corrections;
    (6) in a town or municipality in which a majority of votes at the last election
at which the question of license was voted upon were not in favor of license under
section 340A.416, or within one-half mile of any such town or municipality, except that
intoxicating liquor manufactured within this radius may be sold to be consumed outside it;
    (7) within 1,500 feet of a state university, except that:
    (i) the minimum distance in the case of Winona and Southwest State University is
1,200 feet, measured by a direct line from the nearest corner of the administration building
to the main entrance of the licensed establishment;
    (ii) within 1,500 feet of St. Cloud State University one on-sale wine and two off-sale
intoxicating liquor licenses may be issued, measured by a direct line from the nearest
corner of the administration building to the main entrance of the licensed establishment;
    (iii) at Mankato State University the distance is measured from the front door of
the student union of the Highland campus;
    (iv) a temporary license under section 340A.404, subdivision 10, may be issued to
a location on the grounds of a state university for an event sponsored or approved by
the state university; and
    (v) this restriction does not apply to the area surrounding the premises of
Metropolitan State University in Minneapolis; and
    (8) within 1,500 feet of any public school that is not within a city.
    (b) The restrictions of this subdivision do not apply to a manufacturer or wholesaler
of intoxicating liquor or to a drugstore or to a person who had a license originally issued
lawfully prior to July 1, 1967.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. SPECIAL LICENSE; MINNEAPOLIS.
    Notwithstanding any law, local ordinance, or charter provision, the city of
Minneapolis may issue an on-sale intoxicating liquor license to a restaurant located at
1367 Willow Street South. The provisions of Minnesota Statutes, chapter 340A, apply to
licenses issued under this section. The license authorizes sales on all days of the week.
EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
City Council in the manner provided by Minnesota Statutes, section 645.021,
notwithstanding Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 6. TEMPORARY CLOSING TIME.
    During the 2008 Republican National Convention, licensing jurisdictions that lie
fully or partially within the seven-county metropolitan area may at their discretion issue
special permits for service of alcohol through extended hours lasting until 4:00 a.m. each
day. This section is subject to the following conditions:
    (1) only holders of an existing on-sale intoxicating liquor license or a 3.2 malt liquor
license are eligible for later closing hours;
    (2) later closing hours apply only during the period from 12:00 p.m. on August 31,
2008, through 4:00 a.m. on September 5, 2008;
    (3) local licensing jurisdictions issuing special permits to operate with extended
hours during these days, may charge a fee up to but not to exceed $2,500 for such a permit.
In the process of issuing a permit under this section, the licensing jurisdiction may limit
approval to specified geographic, zoning, or license classifications within its jurisdiction,
or to specific days within the time period described in clause (2); and
    (4) this section is repealed as of 4:01 a.m. on September 5, 2008.
EFFECTIVE DATE.This section is effective the day following final enactment.
Presented to the governor May 12, 2008
Signed by the governor May 15, 2008, 2:33 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569