relating to liquor; modifying liquor regulation; authorizing liquor licenses;
amending Minnesota Statutes 2010, sections 340A.315, by adding subdivisions;
340A.404, subdivision 4a; 340A.412, subdivision 14; 340A.419, subdivision
2; Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 5a;
proposing coding for new law in Minnesota Statutes, chapter 340A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 340A.315, is amended by adding a
subdivision to read:
    Subd. 8. Bulk wine. Farm wineries licensed under this section are permitted to
purchase and use bulk wine, provided:
(1) the quantity of bulk wine in any farm winery's annual production shall not exceed
ten percent of that winery's annual production;
(2) that bulk wine under section 340A.315, subdivision 4, shall be counted as a
portion of the 49 percent of product that need not be Minnesota-grown and may be
imported from outside Minnesota; and
(3) that the bulk wine must be blended and not directly bottled.
"Bulk wine," as used in this subdivision, means fermented juice from grapes, other
fruit bases, or honey.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2010, section 340A.315, is amended by adding a
subdivision to read:
    Subd. 9. Agricultural land. A farm winery license must be issued for operation of
a farm winery on agricultural land, operating under an agricultural classification, zone,
or conditional use permit. Farm wineries with licenses issued prior to March 1, 2012,
are exempt from this provision.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2010, section 340A.404, subdivision 4a, is amended to read:
    Subd. 4a. Publicly owned recreation; entertainment facilities. (a)
Notwithstanding any other law, local ordinance, or charter provision, the commissioner
may issue on-sale intoxicating liquor licenses:
    (1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the city of Biwabik, St. Louis County;
    (2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm;
    (3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium, the intercollegiate football stadium, or including any games played by the
Minnesota Vikings at the stadium, and at no more than seven other locations within the
boundaries of the University of Minnesota, provided that the Board of Regents has
approved an application for a license for the specified location and provided that a license
for an arena or an intercollegiate football stadium location is void unless it requires the
sale or service of intoxicating liquor in a public portion consisting of at least one-third of
the general seating of a stadium or arena meets the conditions of paragraph (b). It is solely
within the discretion of the Board of Regents to choose the manner in which to carry out
this condition these conditions consistent with the requirements of paragraph (b); and
(4) to the Duluth Entertainment and Convention Center Authority for beverage
sales on the premises of the Duluth Entertainment and Convention Center Arena during
intercollegiate hockey games.
    The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.
    (b) No alcoholic beverage may be sold or served at TCF Bank Stadium unless the
Board of Regents holds an on-sale intoxicating liquor license for the stadium as provided
in paragraph (a), clause (3), that provides for the sale of intoxicating liquor at a location in
the stadium that is convenient to the general public attending an intercollegiate football
game at the stadium. On-sale liquor sales to the general public must be available at that
location through half-time of an intercollegiate football game at TCF Bank Stadium, and
sales at the stadium must comply with section 340A.909.

    Sec. 4. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 5a,
is amended to read:
    Subd. 5a. Wine festival. A municipality with the approval of the commissioner
may issue a temporary license to a bona fide association of owners and operators of
wineries sponsoring an annual festival to showcase wines produced by members of the
association. The commissioner may only approve one temporary license in a calendar
year for each qualified association under this subdivision. The license issued under this
subdivision authorizes the sale of table, sparkling, or fortified wines produced by the
wineries at on-sale by the glass, provided that no more than two glasses per customer may
be sold, and off-sale by the bottle, provided that no more than six bottles in total per
customer may be sold. The license also authorizes the dispensing of free samples of the
wines offered for sale within designated premises of the festival. A license issued under
this subdivision is subject to all laws and ordinances governing the sale, possession, and
consumption of table, sparkling, or fortified wines. For purposes of this subdivision, a
"bona fide association of owners and operators of wineries" means an association of
more than ten wineries that has been in existence for more than two years at the time
of application for the temporary license.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. [340A.4042] WINE EDUCATOR; ON-SALE LICENSE.
The commissioner may issue an on-sale license to a person meeting the requirements
specified in sections 340A.402 and 340A.409, at an annual cost of $250 per license to a
wine educator and $50 per permit for each employee of the wine educator that will be
pouring wine, under the following conditions:
(1) the license may be used to purchase wine at retail and serve wine for educational
purposes in any part of the state, unless a political subdivision adopts an ordinance
prohibiting wine education;
(2) all events conducted pursuant to this license must be conducted through advance
registration, and no walk-in access to the general public is permitted;
(3) licensees must possess certification that is satisfactory to the commissioner,
including, but not limited to, a certified specialist of wine or certified wine educator status
as conferred by the Society of Wine Educators, a Wine and Spirits Education Trust
Diploma, status as a certified sommelier, or the completion of a wine industry program at
a technical college or culinary school. A wine educator must also complete Training for
Intervention Procedures (TIPS) or other certified alcohol training programs and have a
valid certificate on file with the commissioner;
(4) a license holder shall not sell alcohol for off-premises consumption and no
orders may be taken for future sales;
(5) classes shall not be conducted at retail businesses that do not have a liquor
license during business hours; and
(6) prior to providing a class authorized under this section, the licensee shall notify
the police chief of the city where the class will take place, if the event will take place
within the corporate limits of a city. If the city has no police department, the licensee shall
notify the city's clerk. If the class will take place outside the corporate limits of any city,
the licensee shall notify the sheriff of the county where the class will take place.

    Sec. 6. Minnesota Statutes 2010, section 340A.412, subdivision 14, is amended to read:
    Subd. 14. Exclusive liquor stores. (a) Except as otherwise provided in this
subdivision, an exclusive liquor store may sell only the following items:
(1) alcoholic beverages;
(2) tobacco products;
(3) ice;
(4) beverages, either liquid or powder, specifically designated for mixing with
intoxicating liquor;
(5) soft drinks;
(6) liqueur-filled candies;
(7) food products that contain more than one-half of one percent alcohol by volume;
(8) cork extraction devices;
(9) books and videos on the use of alcoholic beverages;
(10) magazines and other publications published primarily for information and
education on alcoholic beverages;
(11) multiple-use bags designed to carry purchased items;
(12) devices designed to ensure safe storage and monitoring of alcohol in the home,
to prevent access by underage drinkers; and
(13) home brewing equipment; and
(14) clothing marked with the specific name, brand, or identifying logo of the
exclusive liquor store, and bearing no other name, brand, or identifying logo.
(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale
license may sell food for on-premise consumption when authorized by the municipality
issuing the license.
(c) An exclusive liquor store may offer live or recorded entertainment.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2010, section 340A.419, subdivision 2, is amended to read:
    Subd. 2. Tastings. (a) Notwithstanding any other law, an exclusive liquor store may
conduct a wine, malt liquor, or spirits tasting on the premises of a holder of an on-sale
intoxicating liquor license that is not a temporary license or on the premises of a holder
of a wine license under section 340A.404, subdivision 5, if the exclusive liquor store
complies with this section.
(b) No wine, malt liquor, or spirits authorized for use under this section may be sold
for off-premises consumption. A participant in the tasting may fill out a form indicating
preferences for wine, malt liquor, or spirits. The form may be held on the premises of the
exclusive liquor store to assist the participant in making an off-sale purchase at a later date.
(c) Notwithstanding any other law, an exclusive liquor store may purchase or
otherwise obtain wine or spirits for a tasting conducted under this section from a
wholesaler licensed to sell wine or spirits. The wholesaler may sell or give wine or spirits
to an exclusive liquor store for a tasting conducted under this section and may provide
personnel to assist in the tasting.
(d) An exclusive liquor store that conducts a tasting under this section must use
any fees collected from participants in the tasting only to defray the cost of conducting
the tasting.
    (e) Notwithstanding section 340A.409, subdivision 4, the premises on which a
tasting is conducted must be insured as required by section 340A.409, subdivision 1.
(f) Exclusive liquor stores may conduct classes for a fee and allow tastings in the
conduct of those classes, provided that the amount served at a class is limited to the
amount authorized under section 340A.4041.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. WINNEBAGO EXEMPTION; OUT-OF-STATE CRAFT BREWER.
Notwithstanding any law or ordinance to the contrary, an out-of-state brewer may
import malt liquor for sale at retail on one day per calendar year, in the city of Winnebago,
provided that the total production of malt liquor produced by the brewer in the prior
calendar year was less than 5,000 barrels, and provided that the seller of the malt liquor
holds an appropriate retail license. Malt liquor imported under this section must be
registered in accordance with section 340A.311.
EFFECTIVE DATE; SUNSET.This section is effective upon approval by the
Winnebago City Council and compliance with Minnesota Statutes, section 645.021, and
expires on December 31, 2012.

    Sec. 9. ON-SALE LICENSE AUTHORIZED.
Notwithstanding any law or ordinance to the contrary, in addition to the number of
licenses authorized, the city of Moorhead may issue an on-sale intoxicating liquor license
to the governing body of the Bluestem Center for the Arts for the premises known as the
Bluestem Center for the Arts. The license shall authorize the dispensing of intoxicating
liquor only to persons attending events on the licensed premises, and shall authorize
consumption on the licensed premises only. The license may provide that the governing
body of the Bluestem Center for the Arts may contract for intoxicating liquor catering
service with the holder of an on-sale intoxicating liquor license issued by the city of
Moorhead. The city council shall establish the fee for the license. All provisions of
Minnesota Statutes, chapter 340A, governing alcoholic beverages not inconsistent with
this law apply to the license.
EFFECTIVE DATE.This section is effective upon approval by the Moorhead City
Council and compliance with Minnesota Statutes, section 645.021.

    Sec. 10. SPECIAL PROVISION; CITY OF MINNEAPOLIS.
(a) The city of Minneapolis may extend any interim zoning, liquor licensing, or other
approvals granted to Kick's Liquor Store, Inc., a Minnesota corporation currently licensed
as an exclusive liquor store doing business as Broadway Liquor Outlet at 2201 West
Broadway, where the building housing the business at its current location was damaged
beyond reasonable repair by the 2011 tornado, to permit the ongoing interim operation of
the business in a temporary structure at the current location prior to the relocation of the
business to a permanent facility located across the street at 2200-2220 West Broadway, or
as this property is or may be more fully described in the property records of Hennepin
County, notwithstanding limitations of law, local ordinances, or charter provisions relating
to zoning or liquor licensing.
(b) The city of Minneapolis may grant, renew, or otherwise reissue the existing
off-sale intoxicating liquor license to Kick's Liquor Store, Inc., doing business as
Broadway Liquor Outlet, upon the relocation of the business to the permanent facility at
2200-2220 West Broadway or as this property is or may be more fully described in the
property records of Hennepin County, notwithstanding limitations of law, local ordinances,
or charter provisions relating to liquor licensing or contiguous zoning requirements.
EFFECTIVE DATE.This section is effective upon approval by the Minneapolis
City Council and compliance with Minnesota Statutes, section 645.021.

    Sec. 11. EXPIRATION.
The changes in section 3 to Minnesota Statutes, section 340A.404, subdivision
4a, expire July 1, 2014.

    Sec. 12. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber Minnesota Statutes, section 340A.404,
subdivision 5a, as Minnesota Statutes, section 340A.4175, and make any necessary
cross-reference changes in Minnesota Statutes.
EFFECTIVE DATE.This section is effective the day following final enactment.