1.1 	A bill for an act
1.2 	relating to liquor; authorizing microdistilleries;amending Minnesota Statutes 
1.3 	2010, sections 340A.101, by adding a subdivision; 340A.301, subdivisions 4, 6.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 340A.101, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 16a.Microdistillery. "Microdistillery" is a distillery operated within the state 
1.8 	producing premium, distilled spirits aged for a period of not less than four years in total 
1.9 	quantity not to exceed 40,000 gallons in a calendar year.

1.10 	Sec. 2. Minnesota Statutes 2010, section 340A.301, subdivision 4, is amended to read:
1.11 		Subd. 4.Bond. The commissioner may not issue a license under this section to a 
1.12 	person who has not filed a bond with corporate surety, or cash, or United States government 
1.13 	bonds payable to the state. The proof of financial responsibility must be approved by the 
1.14 	commissioner before the license is issued. The bond must be conditioned on the licensee 
1.15 	obeying all laws governing the business and paying when due all taxes, fees, penalties and 
1.16 	other charges, and must provide that it is forfeited to the state on a violation of law. This 
1.17 	subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315, 
1.18 	that is in existence as of January 1, 2010. Bonds must be in the following amounts:

1.19
1.20		Manufacturers and wholesalers of intoxicating 
liquor except as provided in this subdivision
		$
	10,000
		
1.21
1.22		Manufacturers and wholesalers of wine up to 
25 percent alcohol by weight
		$
	5,000
		
1.23
1.24		Manufacturers and wholesalers of beer of more 
than 3.2 percent alcohol by weight
		$
	1,000
		
2.1
2.2		Manufacturers and wholesalers of fewer than 
20,000 gallons of 95 percent alcohol per year
		$
	2,000
		
2.3
2.4		Manufacturers and wholesalers of fewer than 
40,000 gallons of 95 percent alcohol per year
		$
	3,000

2.5 	Sec. 3. Minnesota Statutes 2010, section 340A.301, subdivision 6, is amended to read:
2.6 		Subd. 6.Fees. The annual fees for licenses under this section are as follows:

2.7
2.8	(a)
	Manufacturers (except as provided in clauses (b) 
and (c))
	$
	30,000
	
2.9		Duplicates
	$
	3,000
	
2.10
2.11	(b)
	Manufacturers of wines of not more than 25 percent 
alcohol by volume
	$
	500
	
2.12
2.13	(c)
	Brewers who manufacture more than 3,500 barrels 
of malt liquor in a year
	$
	4,000
	
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
2.25	(d)
	Brewers who also hold one or more retail on-sale 
licenses and who manufacture fewer than 3,500 
barrels of malt liquor in a year, at any one licensed 
premises, the entire production of which is solely for 
consumption on tap on any licensed premises owned 
by the brewer, or for off-sale from those licensed 
premises as permitted in subdivision 7. A brewer 
licensed under this clause must obtain a separate 
license for each licensed premises where the brewer 
brews malt liquor. A brewer licensed under this 
clause may not be licensed as an importer under this 
chapter
	$
	500
	
2.26
2.27	(e)
	Wholesalers (except as provided in clauses (f), (g), 
and (h))
	$
	15,000
	
2.28		Duplicates
	$
	3,000
	
2.29
2.30	(f)
	Wholesalers of wines of not more than 25 percent 
alcohol by volume
	$
	3,750
	
2.31	(g)
	Wholesalers of intoxicating malt liquor
	$
	1,000
	
2.32		Duplicates
	$
	25
	
2.33	(h)
	Wholesalers of 3.2 percent malt liquor
	$
	10
	
2.34
2.35	(i)
	Brewers who manufacture fewer than 2,000 barrels 
of malt liquor in a year
	$
	150
	
2.36
2.37	(j)
	Brewers who manufacture 2,000 to 3,500 barrels of 
malt liquor in a year
	$
	500
	
2.38
2.39	(k)
	Microdistilleries who manufacture fewer than 
20,000 gallons of 95 percent alcohol per year
	$
	1,000
	
2.40
2.41	(l)
	Microdistilleries who manufacture fewer than 
40,000 gallons of 95 percent alcohol per year
	$
	2,000
	
2.42 	If a business licensed under this section is destroyed, or damaged to the extent that 
2.43 	it cannot be carried on, or if it ceases because of the death or illness of the licensee, the 
2.44 	commissioner may refund the license fee for the balance of the license period to the 
2.45 	licensee or to the licensee's estate.