Bill Text: IN HB1035 | 2010 | Regular Session | Introduced
Bill Title: Wineries.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2010-01-05 - First reading: referred to Committee on Public Policy [HB1035 Detail]
Download: Indiana-2010-HB1035-Introduced.html
Citations Affected: IC 7.1-3; IC 7.1-4.
Synopsis: Wineries. Allows the holder of an Indiana farm winery
permit to own 50% or less of a limited wine wholesaler's permit.
Allows an Indiana consumer to buy wine from a direct wine seller and
have it shipped using a third party verification service retained by the
winery (as an alternative to providing information in an initial face to
face transaction with the winery). Allows a direct wine seller to direct
ship not more than 90,000 liters of wine in Indiana in any permit year.
Allows a direct wine seller to be issued a supplemental direct wine
seller permit that entitles the permit holder to sell not more than 2,000
gallons of wine at wholesale during a permit year. Establishes an
annual fee of $50 for a supplemental direct wine seller permit. Provides
that the alcohol and tobacco commission may: (1) fine a direct wine
seller; and (2) suspend or revoke a direct wine seller's permit; for
noncompliance. Repeals provisions concerning other penalties for
noncompliance with the direct wine seller's permit law.
Effective: July 1, 2010.
January 5, 2010, 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
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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;
(6) is exempt from the provisions of IC 7.1-3-14;
(7) is entitled to advertise the name and address of any retailer or dealer who sells wine produced by the permit holder's winery;
(8) 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) is entitled to purchase and sell bulk wine as set forth in this chapter;
(10) is entitled to sell wine as authorized by this section for carryout on Sunday; and
(11) 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) days in a calendar year.
(d) The holder of a farm winery permit issued under this chapter may hold an ownership interest of fifty percent (50%) or less in a wine wholesaler's permit described in IC 7.1-3-13-3(e).
(1) notwithstanding IC 7.1-5-9-4, holds a beer wholesaler's permit;
(2) holds a liquor wholesaler's permit; or
(3) does not hold an alcoholic beverage wholesaler's permit, but meets the qualifications to hold either a beer or a liquor wholesaler's permit.
(b) The holder of a wine wholesaler's permit under subsection (a)(1) or (a)(2):
(1) is considered the same as a person who holds a wine wholesaler's permit under subsection (a)(3) for purposes of conducting activities and operations under the wine wholesaler's permit; and
(2) may operate the beer or liquor wholesale business independently of the wine wholesale business.
(c) Notwithstanding subsection (a), the holder of a farm winery permit issued under IC 7.1-3-12 may hold an ownership interest of fifty percent (50%) or less in a wine wholesaler's permit described in section 3(e) of this chapter.
(b) As used in this section, "brandy" means:
(1) any alcoholic distillate described in 27 CFR 5.22(d) as in effect on January 1, 1983; or
(2) a beverage product that:
(A) is prepared from a liquid described in subdivision (1);
(B) is classified as a cordial or liqueur as defined in 27 CFR 5.22(h) as in effect on January 1, 1997; and
(C) meets the following requirements:
(i) At least sixty-six and two-thirds percent (66 2/3%) of the product's alcohol content is composed of a substance described in subdivision (1).
(ii) The product's label makes no reference to any distilled
spirit other than brandy.
(iii) The product's alcohol content is not less than sixteen
percent (16%) by volume or thirty-two (32) degrees proof.
(iv) The product contains dairy cream.
(v) The product's sugar, dextrose, or levulose content is at
least twenty percent (20%) of the product's weight.
(vi) The product contains caramel coloring.
(c) Nothing in this section allows a wine wholesaler to sell, give,
purchase, transport, or export beer (as defined in IC 7.1-1-3-6) unless
the wine wholesaler also holds a beer wholesaler's permit under
IC 7.1-3-3-1.
(d) A wine wholesaler that also holds a liquor wholesaler's permit
under IC 7.1-3-8 may not:
(1) hold a beer wholesaler's permit under IC 7.1-3-3;
(2) possess, sell, or transport beer; or
(3) sell more than one million (1,000,000) gallons of flavored
malt beverage during a calendar year.
(e) This subsection applies only to a wine wholesaler's permit
that is partially owned by the holder of a farm winery permit
under section 1(c) of this chapter. A wine wholesaler's permit
entitles the holder of the permit to sell less than twenty thousand
(20,000) gallons of wine and brandy in a year at wholesale.
(1) is approved by the commission; and
(2) specializes in age and identity verification.
(1) The consumer is at least twenty-one (21) years of age.
(2) The consumer has an Indiana address.
locations authorized by IC 7.1-3-12-5, or to a third party
verification service, all of 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) (b) If:
(A) (1) before April 1, 2006, the consumer has engaged in a
transaction with a seller in which the seller sold wine to the
consumer; and,
(2) 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) (3) 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.
(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.
However, this subdivision does not apply to an applicant who
holds a farm winery permit under IC 7.1-3-12 and has a
partial ownership interest in a wine wholesaler permit
described in IC 7.1-3-13-3(e) or to an applicant who holds a
supplemental direct wine seller's permit under IC 7.1-3-27.
(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 meets one (1) of the following requirements:
(A) The applicant 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 This clause does not apply to an applicant
who holds a supplemental direct wine seller's permit under
IC 7.1-3-27.
(B) The applicant 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) 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.
follows:
(1) The consumer provides the direct wine seller with the
following:
(A) The verification information required by section 6(4)
6(a)(3) of this chapter to:
(i) the direct wine seller in an initial face-to-face
transaction; or
(ii) a third party verification service.
(B) Notwithstanding clause (A), if the consumer provided the
information specified in section 6(5)(A) 6(b)(2) 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) 6(b)(3) of this chapter to the
commission before January 15, 2007, the consumer is not
required to comply with section 6(4) 6(a)(3) of this chapter.
(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.
(27,000) (90,000) liters of wine.
(1) suspend or revoke a direct wine seller's permit; or
(2) fine the holder of a direct wine seller's permit;
for noncompliance with this chapter in accordance with IC 7.1-3-23.
Chapter 27. Supplemental Direct Wine Seller's Permit
Sec. 1. As used in this chapter, "supplemental permit" means a supplemental direct wine seller's permit issued under this chapter.
Sec. 2. The commission may issue a supplemental direct wine seller's permit to a person who desires to sell wine in Indiana at wholesale as set forth in this chapter.
Sec. 3. The commission may issue a supplemental permit only to an applicant who is the holder of a direct wine seller's permit under IC 7.1-3-26.
Sec. 4. The holder of a supplemental permit is entitled to sell, furnish, and deliver wine from inventory that has been located on the holder's premises before the time of invoicing and delivery to:
(1) a wine wholesaler;
(2) a wine retailer;
(3) a supplemental caterer;
(4) a temporary wine permittee; or
(5) a wine dealer;
in Indiana, but not at retail.
Sec. 5. A supplemental permit entitles the holder to sell not more than two thousand (2,000) gallons of wine at wholesale during a permit year.
Sec. 6. (a) The term of a supplemental permit begins:
(1) in the case of an initial application, on the date on which the application is approved by the commission; and
(2) in the case of a renewed permit, on July 1.
(b) A supplemental permit expires on June 30 of the year following the year in which the supplemental permit is issued.
(c) A supplemental permit may be renewed in accordance with rules adopted by the commission.
Sec. 7. The annual fee for a supplemental permit is fifty dollars ($50).
(1) Beer wholesaler's permit.
(2) Malt wholesaler's permit.
(3) Liquor wholesaler's permit.
(4) Wine wholesaler's permit.
(b) Except as provided in subsection (c), a permit fee of two thousand dollars ($2,000) is annually imposed for the issuance of each of the permits described in subsection (a).
(c) A permit fee of one hundred dollars ($100) is annually imposed for the issuance of a wine wholesaler's permit to a permit applicant who:
(1) has never previously held a wine wholesaler's permit and anticipates selling less than
(2) previously held a wine wholesaler's permit and certifies to the commission that the permit applicant sold less than
be taxed once for hard cider excise tax purposes.
SECTION 16. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2010]: IC 7.1-3-26-15; IC 7.1-3-26-16.
