Introduced Version
HOUSE BILL No. 1081
_____
DIGEST OF INTRODUCED BILL
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.
Welch, Koch, Clere, Rhoads
January 5, 2011, read first time and referred to Committee on Public Policy.
Introduced
First Regular Session 117th General Assembly (2011)
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HOUSE BILL No. 1081
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 7.1-3-12-5; (11)IN1081.1.1. -->
SECTION 1. IC 7.1-3-12-5, AS AMENDED BY P.L.165-2006,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 5. (a) The holder of a farm winery permit:
(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;
(6) (7) is exempt from the provisions of IC 7.1-3-14;
(7) (8) is entitled to advertise the name and address of any retailer
or dealer who sells wine produced by the permit holder's winery;
(8) (9) for wine described in IC 7.1-1-2-3(a)(4):
(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;
(9) (10) is entitled to purchase and sell bulk wine as set forth in
this chapter;
(10) (11) is entitled to sell wine as authorized by this section for
carryout on Sunday; and
(11) (12) is entitled to sell and ship the farm winery's wine to a
person located in another state in accordance with the laws of the
other state.
(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 thirty (30)
forty-five (45) days in a calendar year.
SOURCE: IC 7.1-3-13-2.5; (11)IN1081.1.2. -->
SECTION 2. IC 7.1-3-13-2.5, AS AMENDED BY P.L.165-2006,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 2.5.
(a) All premises to be used by an applicant for
a wine wholesaler's permit must be described in the application for the
permit and in the permit, if the permit is issued. A wine wholesaler may
not keep or store wine at any place other than the premises described
in the wine wholesaler's application and permit. A person who holds a
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.
SOURCE: IC 7.1-3-26-6; (11)IN1081.1.3. -->
SECTION 3. IC 7.1-3-26-6, AS ADDED BY P.L.165-2006,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 6. A seller may sell and ship wine directly only to
a consumer who meets all of the following requirements:
(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.
(4) Except as provided in subdivision (5), the consumer has
provided to the seller in one (1) initial face-to-face transaction at
the seller's place of business appearing on the seller's application
for a direct wine seller's permit or any locations authorized by
IC 7.1-3-12-5 all the following:
(A) Name, telephone number, Indiana address, or consumer's
Indiana business address.
(B) Proof of age by a state issued driver's license or state
issued identification card showing the consumer to be at least
twenty-one (21) years of age.
(C) A verified statement, made under penalties for perjury,
that the consumer satisfies the requirements of subdivisions
(1) through (3).
(5) If:
(A) before April 1, 2006, the consumer has engaged in a
transaction with a seller in which the seller sold wine to the
consumer and, after April 1, 2006, but before December 31,
2006, the consumer provides the seller with a verified
statement, made under penalties for perjury, that the consumer
is at least twenty-one (21) years of age; and
(B) the seller provides the name and Indiana address of the
consumer to the commission before January 15, 2007;
the seller may sell directly to the consumer in accordance with
this chapter.
SOURCE: IC 7.1-3-26-7; (11)IN1081.1.4. -->
SECTION 4. IC 7.1-3-26-7, AS AMENDED BY P.L.54-2008,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 7. (a) The commission may issue a direct wine
seller's permit to an applicant who meets all of the following
requirements:
(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.
(6) The applicant:
(A) does not hold a permit or license to wholesale alcoholic
beverages issued by any authority; and
(B) is not owned in whole or in part or controlled by a person
who holds a permit or license to wholesale alcoholic
beverages.
(7) The applicant sells not more than one million (1,000,000)
gallons of wine per year in Indiana, excluding wine shipped to an
out-of-state address.
(8) The applicant:
(A) has not distributed wine through a wine wholesaler in
Indiana within the one hundred twenty (120) days immediately
preceding the applicant's application for a direct wine seller's
permit and does not distribute wine through a wine wholesaler
in Indiana during the term of the direct wine seller's permit; or
(B) has operated as a farm winery under IC 7.1-3-12.
(9) The applicant is not the parent, subsidiary, or affiliate of
another entity manufacturing any alcoholic beverage.
(10) (6) The applicant completes documentation regarding the
applicant's application required by the commission.
(b) The commission may issue a direct wine seller's permit to an
applicant who:
(1) meets the requirements under subsection (a); and
(2) holds a permit issued under this title that allows the sale of an
alcoholic beverage at retail.
SOURCE: IC 7.1-3-26-9; (11)IN1081.1.5. -->
SECTION 5. IC 7.1-3-26-9, AS ADDED BY P.L.165-2006,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 9. A direct wine seller's permit entitles a seller to
sell and ship wine to a consumer by receiving and filling orders that the
consumer transmits by electronic or other means if all of the following
conditions are satisfied before the sale or by the times set forth as
follows:
(1) The consumer:
provides the direct wine seller with the
following:
(A) The verification required by section 6(4) of this chapter in
an initial face-to-face transaction.
(B) Notwithstanding clause (A), if the consumer provided the
information specified in section 6(5)(A) of this chapter after
April 1, 2006, but before December 31, 2006, and the seller
provides the name and Indiana address of the consumer under
section 6(5)(B) of this chapter to the commission before
January 15, 2007, the consumer is not required to comply with
section 6(4) of this chapter.
(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.
SOURCE: IC 7.1-3-26-12; (11)IN1081.1.6. -->
SECTION 6. IC 7.1-3-26-12, AS ADDED BY P.L.165-2006,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 12. During a permit year, a direct wine seller may
not direct ship in Indiana more than twenty-seven eighteen thousand
(27,000) liters (18,000) gallons of wine.
SOURCE: IC 7.1-3-26-15; (11)IN1081.1.7. -->
SECTION 7. IC 7.1-3-26-15, AS ADDED BY P.L.165-2006,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 15. (a) Except as provided in subsections (b) and
(c), a seller who violates this chapter commits a Class A infraction.
(b) Except as provided in subsection (d), A seller who:
(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) Except as provided in subsection (d), A seller who:
(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.
(d) A person who violates section 6(5) of this chapter commits a
Class A infraction. The commission may consider an infraction
committed under this subsection in its determination of whether to
renew a seller's permit.
SOURCE: IC 7.1-4-4-3; (11)IN1081.1.8. -->
SECTION 8. IC 7.1-4-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. Persons Liable for
Tax. The wine excise tax shall be paid by the holder of a vintner's
permit, a farm winery permit, a wine wholesaler's permit, a direct wine
seller's permit, a dining car wine permit, or a boat wine permit on the
alcoholic beverage to which the tax is applicable and which has been
manufactured or imported by him the permit holder into this state.
However, the same article shall be taxed only once for wine excise tax
purposes.
SOURCE: IC 7.1-4-4.5-3; (11)IN1081.1.9. -->
SECTION 9. IC 7.1-4-4.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The hard cider
excise tax shall be paid by the holder of a vintner's permit, a farm
winery permit, a wine wholesaler's permit, a direct wine seller's
permit, a beer wholesaler's permit, a dining car wine permit, or a boat
wine permit on the hard cider to which the tax is applicable and that is
manufactured or imported by the person into this state. However, an
item may only be taxed once for hard cider excise tax purposes.
SOURCE: IC 7.1-5-11-1.5; (11)IN1081.1.10. -->
SECTION 10. IC 7.1-5-11-1.5, AS AMENDED BY P.L.165-2006,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 1.5. (a) Except as provided in IC 7.1-3-12-5 and
IC 7.1-3-26, it is unlawful for a person in the business of selling
alcoholic beverages in Indiana or outside Indiana to ship or cause to be
shipped an alcoholic beverage directly to a person in Indiana who does
not hold a valid wholesaler permit under this title. This includes the
ordering and selling of alcoholic beverages over a computer network
(as defined by IC 35-43-2-3(a)).
(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.
SOURCE: IC 7.1-3-26-16; (11)IN1081.1.10. -->
SECTION 10. IC 7.1-3-26-16 IS REPEALED [EFFECTIVE JULY
1, 2011].