Bill Text: MN HF2435 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Small winery locations expanded.

Sponsorship: Partisan Bill (Democrat 4)

Status: (Introduced - Dead) 2014-03-04 - Author added Bly [HF2435 Detail]

Download: Minnesota-2013-HF2435-Introduced.html

1.1A bill for an act
1.2relating to liquor; expanding locations for small wineries;amending Minnesota
1.3Statutes 2012, sections 340A.101, by adding a subdivision; 340A.315; repealing
1.4Minnesota Statutes 2012, section 340A.101, subdivision 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 340A.101, is amended by adding a
1.7subdivision to read:
1.8    Subd. 26a. Small winery. A "small winery" is a winery producing table, sparkling,
1.9or fortified wine from grapes, grape juice, other fruit or fruit juices, or honey, with a
1.10majority of the ingredients grown or produced in Minnesota.

1.11    Sec. 2. Minnesota Statutes 2012, section 340A.315, is amended to read:
1.12340A.315 FARM SMALL WINERY LICENSE.
1.13    Subdivision 1. Licenses. The commissioner may issue a farm small winery license
1.14to the owner or operator of a farm small winery located within the state and producing
1.15table, sparkling, or fortified wines. Licenses may be issued and renewed for an annual fee
1.16of $50, which is in lieu of all other license fees required by this chapter.
1.17    Subd. 2. Sales. A license authorizes the sale, on the farm small winery premises,
1.18of table, sparkling, or fortified wines produced by that farm small winery at on-sale or
1.19off-sale, in retail, or wholesale lots in total quantities not in excess of 50,000 gallons in
1.20a calendar year, glassware, wine literature and accessories, cheese and cheese spreads,
1.21other wine-related food items, and the dispensing of free samples of the wines offered
1.22for sale. Sales at on-sale and off-sale may be made on Sundays between 10:00 a.m. and
1.2312:00 midnight. Labels for each type or brand produced must be registered with the
2.1commissioner, without fee prior to sale. A farm small winery may provide samples
2.2of distilled spirits manufactured pursuant to subdivision 7, on the farm small winery
2.3premises, but may sell the distilled spirits only through a licensed wholesaler. Samples of
2.4distilled spirits may not exceed 15 milliliters per variety.
2.5    Subd. 3. Applicability. Except as otherwise specified in this section, all provisions
2.6of this chapter govern the production, sale, possession, and consumption of table,
2.7sparkling, or fortified wines produced by a farm small winery.
2.8    Subd. 4. Minnesota products. If Minnesota-produced or -grown grapes, grape
2.9juice, other fruit bases, or honey is not available in quantities sufficient to constitute
2.10a majority of the table, sparkling, or fortified wine produced by a farm small winery,
2.11the holder of the farm small winery license may file an affidavit stating this fact with
2.12the commissioner. If the commissioner, after consultation with the commissioner of
2.13agriculture, determines this to be true, the farm small winery may use imported products
2.14and shall continue to be governed by the provisions of this section. The affidavit is
2.15effective for a period of one year, after which time the farm small winery must use the
2.16required amount of Minnesota products as provided by subdivision 1 unless the farm small
2.17 winery holder files a new affidavit with the commissioner.
2.18    Subd. 6. On-sale licenses allowed. Nothing in this section or in any other section of
2.19law prevents a farm small winery from obtaining a separate on-sale license and operating
2.20a business establishment that utilizes that license in conjunction with and within the
2.21physical facilities of the winery and its buildings.
2.22    Subd. 7. Distilled spirits permitted. Farm Small wineries licensed under
2.23this section are permitted to manufacture distilled spirits as defined under section
2.24340A.101, subdivision 9 , which may exceed 25 percent alcohol by volume, made from
2.25Minnesota-produced or Minnesota-grown grapes, grape juice, other fruit bases, or honey.
2.26The following conditions pertain:
2.27    (1) no farm small winery or firm owning multiple farm small wineries may
2.28manufacture more than 5,000 gallons of distilled spirits in a given year, and this 5,000
2.29gallon limit is part of the 50,000 gallon limit found in subdivision 2;
2.30    (2) farm small wineries must pay an additional annual fee of $50 to the commissioner
2.31before beginning production of distilled spirits; and
2.32    (3) farm small wineries may not sell or produce distilled spirits for direct sale to
2.33manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).
2.34    Subd. 8. Bulk wine. Farm Small wineries licensed under this section are permitted
2.35to purchase and use bulk wine, provided that:
3.1(1) the quantity of bulk wine in any farm small winery's annual production shall not
3.2exceed ten percent of that winery's annual production;
3.3(2) the bulk wine under subdivision 4 shall be counted as a portion of the 49
3.4percent of product that need not be Minnesota-grown and may be imported from outside
3.5Minnesota; and
3.6(3) the bulk wine must be blended and not directly bottled.
3.7"Bulk wine," as used in this subdivision, means fermented juice from grapes, other
3.8fruit bases, or honey.
3.9    Subd. 9. Agricultural land. A farm winery license must be issued for operation of
3.10a farm winery on agricultural land, operating under an agricultural classification, zone,
3.11or conditional use permit. Farm wineries with licenses issued prior to March 1, 2012,
3.12are exempt from this provision.
3.13EFFECTIVE DATE.This section is effective the day following final enactment.

3.14    Sec. 3. REVISOR'S INSTRUCTION.
3.15The revisor of statutes shall replace the term "farm winery" with "small winery" in
3.16Minnesota Statutes.

3.17    Sec. 4. REPEALER.
3.18Minnesota Statutes 2012, section 340A.101, subdivision 11, is repealed.
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