Bill Text: IN HB1081 | 2011 | Regular Session | Introduced
Bill Title: Farm wineries and direct wine sellers.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2011-01-05 - First reading: referred to Committee on Public Policy [HB1081 Detail]
Download: Indiana-2011-HB1081-Introduced.html
Citations Affected: IC 7.1-3; IC 7.1-4; IC 7.1-5-11-1.5.
Synopsis: Farm wineries and direct wine sellers. Allows a farm winery
permittee to sell not more than a total of 12,000 gallons of wine to a
person who is the holder of a wine dealer's permit and a wine retailer's
permit. Removes a provision that requires an initial face-to-face
transaction between a consumer and a direct wine seller permittee
before the permittee may ship to the consumer in Indiana. Removes
provisions concerning certain requirements for applicants of direct
wine seller's permits. Allows a direct wine seller permittee to ship wine
to a consumer if the consumer: (1) sends to the direct wine seller
permittee a copy of an approved government issued identification
showing that the consumer is at least 21 years of age; or (2) uses an
Internet based service that is approved by the alcohol and tobacco
commission and specializes in age and identification verification.
Allows a direct wine seller to ship directly to a consumer in Indiana
only wine manufactured, produced, or bottled by the seller. Increases
the number of days that a holder of a farm winery permit may
participate in a trade show or an exposition with the approval of the
alcohol and tobacco commission from 30 days to 45 days in a calendar
year. Allows a direct wine seller permittee to directly ship not more
than 18,000 gallons of wine in Indiana in any permit year. (Current law
allows 27,000 liters.) Requires a direct wine seller permittee to pay the
wine excise tax or the hard cider excise tax on an alcoholic beverage
to which the tax is applicable and that has been manufactured or
imported by the direct wine seller permittee. Makes conforming
changes. Repeals a provision that creates a defense to a charge that a
wine seller permittee sold to a consumer that did not meet certain
requirements.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Public Policy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
(1) is entitled to manufacture wine and to bottle wine produced by the permit holder's farm winery;
(2) is entitled to serve complimentary samples of the winery's wine on the licensed premises or an outside area that is contiguous to the licensed premises as approved by the commission if each employee who serves wine on the licensed premises:
(A) holds an employee permit under IC 7.1-3-18-9; and
(B) completes a server training program approved by the commission;
(3) is entitled to sell the winery's wine on the licensed premises to consumers either by the glass, or by the bottle, or both;
(4) is entitled to sell the winery's wine to consumers by the bottle at a farmers' market that is operated on a nonprofit basis;
(5) is entitled to sell wine by the bottle or by the case to a person who is the holder of a permit to sell wine at wholesale issued under IC 7.1-3-13;
(6) is entitled to sell to holders of:
(A) wine retailer's permits issued under IC 7.1-3-14; and
(B) wine dealer's permits issued under IC 7.1-3-15;
not more than a total of twelve thousand (12,000) gallons of wine, by the bottle or by the case, during a permit year;
(A) may allow transportation to and consumption of the wine on the licensed premises; and
(B) may not sell, offer to sell, or allow the sale of the wine on the licensed premises;
(b) With the approval of the commission, a holder of a permit under this chapter may conduct business at not more than three (3) additional locations that are separate from the winery. At the additional locations, the holder of a permit may conduct any business that is authorized at the first location, except for the manufacturing or bottling of wine.
(c) With the approval of the commission, a holder of a permit under this chapter may, individually or with other permit holders under this chapter, participate in a trade show or an exposition at which products of each permit holder participant are displayed, promoted, and sold. The commission may not grant approval under this subsection to a holder of a permit under this chapter for more than
wine wholesaler's permit and who also holds a beer wholesaler's permit
is not disqualified from using multiple premises for the storage of wine
because the person holds a beer wholesaler's permit. The holder of a
wine wholesaler's permit issued under IC 7.1-4-4.1-13(c) may enter
into an agreement to:
(1) locate the wine wholesaler's business within the licensed
premises of a farm winery or a farm winery brandy distiller; or
(2) use goods and services provided by a farm winery or a farm
winery brandy distiller;
or both.
(b) A direct wine seller under IC 7.1-3-26 is not considered an
affiliate of a wine wholesaler for purposes of IC 7.1-3-26-7(9) for an
agreement under this section.
(1) The consumer is at least twenty-one (21) years of age.
(2) The consumer has an Indiana address.
(3) The consumer intends to use wine purchased under this chapter for personal use only and not for resale or other commercial purposes.
(1) The applicant is domiciled and has its principal place of business in the United States.
(2) The applicant is engaged in the manufacture of wine.
(3) The applicant holds and acts within the scope of authority of an alcoholic beverage license or permit to manufacture wine that is required:
(A) in Indiana or the state where the applicant is domiciled; and
(B) by the Tax and Trade Bureau of the United States Department of the Treasury.
(4) The applicant qualifies with the secretary of state to do business in Indiana and consents to the personal jurisdiction of the commission and the courts of Indiana.
(5) The applicant files a surety bond with the commission in accordance with IC 7.1-3-1, or deposits cash in an escrow account with the commission, in the amount required of an applicant for a vintner's permit under IC 7.1-3-1-7.
(1) The consumer:
(A) provides the direct wine seller with a copy of an approved government issued identification showing that the consumer is at least twenty-one (21) years of age; or
(B) provides the direct wine seller proof that the individual is at least twenty-one (21) years of age by using an Internet based service that:
(i) is approved by the commission; and
(ii) specializes in age and identification verification.
(2) The direct wine seller meets the following requirements:
(A) Maintains for two (2) years all records of wine sales made under this chapter. If the records are requested by the commission, a direct wine seller shall:
(i) make the records available to the commission during the direct wine seller's regular business hours; or
(ii) at the direction of the commission, deliver copies to the
commission.
(B) Stamps, prints, or labels on the outside of the shipping
container the following: "CONTAINS WINE. SIGNATURE
OF PERSON AGE 21 OR OLDER REQUIRED FOR
DELIVERY.".
(C) Causes the wine to be delivered by the holder of a valid
carrier's alcoholic beverage permit under IC 7.1-3-18.
(D) Directs the carrier to verify that the individual personally
receiving the wine shipment is at least twenty-one (21) years
of age.
(E) Does not ship to any consumer more than two hundred
sixteen (216) liters of wine in any calendar year.
(F) Remits to the department of state revenue monthly all
Indiana excise, sales, and use taxes on the shipments made
into Indiana by the direct wine seller during the previous
month.
(G) Ships to a consumer in Indiana only wine
manufactured, produced, or bottled by the applicant.
(b)
(1) knowingly or intentionally violates this chapter; and
(2) has one (1) prior unrelated conviction or judgment for an infraction under this section for an act or omission that occurred not more than ten (10) years before the act or omission that is the basis for the most recent conviction or judgment for an infraction;
commits a Class A misdemeanor.
(c)
(1) knowingly or intentionally violates this chapter; and
(2) has at least two (2) prior unrelated convictions or judgments for infractions under this section for acts or omissions that occurred not more than ten (10) years before the act or omission that is the basis for the most recent conviction or judgment for an infraction;
commits a Class D felony.
(b) Upon a determination by the commission that a person has violated subsection (a), a wholesaler may not accept a shipment of alcoholic beverages from the person for a period of up to one (1) year as determined by the commission.
(c) The commission shall adopt rules under IC 4-22-2 to implement this section.
