§ 111.42 MICRODISTILLERY AND COCKTAIL ROOM.
   (A)   It is unlawful for any person or entity, directly or indirectly, to sell, barter, keep for sale or otherwise dispose of distilled spirits on or from the premises on which the distilled spirits are manufactured or produced without a microdistillery license from the Minnesota Commissioner of Public Safety and a license issued by the city as provided herein.
   (B)   Samples. A microdistillery with a valid license from the Minnesota Commissioner of Public Safety may provide to the public samples of distilled spirits manufactured on its premises in an amount not exceeding 15 milliliters per variety per person or 45 milliliters per person per day.
   (C)   On-sale cocktail room. An on-sale cocktail room license may be issued only to a distiller who holds a microdistillery license issued by the Minnesota Commissioner of Public Safety under M.S. Chapter 340A. An on-sale cocktail room license shall be subject to the following requirements:
      (1)   Only distilled spirits produced by the distiller on the licensed premises may be sold or consumed on the licensed premises.
      (2)   The financial responsibilities required under this chapter for on-sale intoxicating licenses shall apply to an on-sale cocktail room license issued under this section.
      (3)   All provisions of this chapter that apply to on-sale intoxicating liquor licenses shall apply to an on-sale cocktail room license issued under this section, unless the provision is explicitly inconsistent with this section.
      (4)   An on-sale cocktail room licensee may only have one on-sale cocktail room license under this section.
      (5)   An on-sale cocktail room licensee may not have an ownership interest in a distillery licensed under M.S. §340A.301, subdivision 6, paragraph (a).
      (6)   No on-sale cocktail room license shall be issued to a distiller if the distiller seeking the license, or any person having an economic interest in the distiller seeking the license or exercising control over the distiller seeking the license, is a distiller that produces more than 40,000 proof gallons of distilled spirits in a calendar year.
      (7)   No single entity may hold both an on-sale cocktail room and on-sale brewer taproom license, and a cocktail room and brewer taproom shall not be co-located.
      (8)   The license hereunder shall be subject to the payment of an annual on-sale microdistillery cocktail room license application and license fees as duly adopted and set forth in Chapter 35, Appendix Fee Schedule.
   (D)   Off-sale distilled spirits. An off-sale distilled spirits license may be granted to a microdistillery, subject to the limitations of this chapter and the additional limitations as follows:
      (1)   The microdistillery may sell for off-sale only one (1) 375 milliliter bottle of distilled spirits per customer per day of product manufactured on-site;
      (2)   The off-sale of distilled spirits from the licensed premises shall be limited to the legal hours for off-sale intoxicating liquor and shall be removed from the premises before the off-sale closing time requirements and no off-sale sales shall occur on Sundays; and
      (3)   No brand may be sold at the microdistillery unless it is also available for distribution by wholesalers.
      (4)   The license hereunder shall be subject to the payment of an annual on-sale microdistillery cocktail room license fee as duly adopted and set forth in Chapter 35, Appendix Fee Schedule.
      (5)   The license hereunder shall be subject to all the provisions under M.S. Chapter 340A (2015 and as may be hereafter amended) as applicable to microdistillery cocktail room licenses.
(Ord. 999, passed 10-22-15) Penalty, see § 111.99