HF2168 Summary

• Establishes the Minnesota Grape and Wine Advisory Council with 15 voting members representing wine producers, grape growers, industry associations, and tourism organizations to recommend grant funding for wine industry promotion, education, and development.

• Creates a Minnesota grape and wine account in the agricultural fund to support eligible projects including vineyard expansion grants, extension agents, and value-added sustainable agriculture initiatives, with the commissioner authorized to use up to 6.5 percent of annual deposits for administrative costs.

• Requires wineries shipping wine directly to Minnesota consumers to obtain a direct shipper license costing $50 annually and mandates quarterly reporting of shipments, with a $50 license fee, federal wine permit, and sales tax license requirement.

• Imposes a 2.5 percent tax on gross receipts from liquor retail sales by all liquor retailers and direct shippers, with revenues from direct shipper wine sales deposited into the grape and wine account starting August 1, 2022.

• Establishes penalties including cease and desist orders for first violations, misdemeanor charges for violations within two years of a prior violation, and gross misdemeanor charges for third or subsequent violations within two-year periods.