Introduced Version
HOUSE BILL No. 1115
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 7.1-1-3; IC 7.1-3; IC 7.1-5-9-12.
Synopsis: Alcoholic beverages. Allows an affiliate of a wholesaler that
holds a carrier's alcoholic permit to provide logistic services that
involve providing, documenting and coordinating delivery,
transporting, preparing an order for, storing, or warehousing alcoholic
beverages of any type. Prohibits a carrier holding a carrier's alcoholic
permit from providing logistic services unless the carrier: (1) enters
into a written agreement with the wholesaler that is requesting the
logistic services; and (2) charges a commercially reasonable fee.
Requires a carrier who provides logistic services to provide annually
to the alcohol and tobacco commission a: (1) copy of all the written
agreements with a wholesaler; and (2) report from a certified public
accountant regarding payment for the logistic services. Prohibits a
carrier's alcoholic permit under which logistic services are provided
from being transferred. Prohibits employees of a carrier providing
logistic services from providing any post delivery merchandising, sales,
or other services to an alcoholic beverage retailer or dealer permittee.
Effective: July 1, 2013.
Davis
January 8, 2013, read first time and referred to Committee on Public Policy.
Introduced
First Regular Session 118th General Assembly (2013)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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HOUSE BILL No. 1115
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 7.1-1-3-3.5; (13)IN1115.1.1. -->
SECTION 1. IC 7.1-1-3-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 3.5. "Affiliate" means a person that directly, or
indirectly through one (1) or more intermediaries, controls, is
controlled by, or is under common control with a specified person.
SOURCE: IC 7.1-1-3-22.5; (13)IN1115.1.2. -->
SECTION 2. IC 7.1-1-3-22.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]:
Sec. 22.5. (a) "Logistic services"
means:
(1) providing;
(2) documenting and coordinating delivery of;
(3) transporting;
(4) preparing an order for;
(5) storing; or
(6) warehousing;
alcoholic beverages.
(b) The term does not include soliciting orders for alcoholic
beverages.
SOURCE: IC 7.1-3-3-5; (13)IN1115.1.3. -->
SECTION 3. IC 7.1-3-3-5, AS AMENDED BY P.L.94-2008,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. (a) The holder of a beer wholesaler's permit
may purchase and import from the primary source of supply, possess,
and sell at wholesale, beer and flavored malt beverages manufactured
within or without this state.
(b) A beer wholesaler permittee may possess, transport, sell, and
deliver beer to:
(1) another beer wholesaler authorized by the brewer to sell the
brand purchased;
(2) an employee; or
(3) a holder of a beer retailer's permit, beer dealer's permit,
temporary beer permit, dining car permit, boat permit, airplane
permit, or supplemental caterer's permit;
located within this state.
Except as provided in subsection (g),
IC 7.1-3-8-3, or IC 7.1-3-13-3, the sale, transportation, and delivery
of beer shall be made only from inventory that has been located on the
wholesaler's premises before the time of invoicing and delivery.
(c) The beer wholesaler's bona fide regular employees may purchase
beer from the wholesaler in:
(1) bottles, cans, or any other type of permissible containers in an
amount not to exceed forty-eight (48) pints; or
(2) one (1) keg;
at any one (1) time.
(d) The importation, transportation, possession, sale, and delivery
of beer shall be subject to the rules of the commission and subject to
the same restrictions provided in this title for a person holding a
brewer's permit.
(e) The holder of a beer wholesaler's permit may purchase, import,
possess, transport, sell, and deliver any commodity listed in
IC 7.1-3-10-5, unless prohibited by this title. However, a beer
wholesaler may deliver flavored malt beverages only to the holder of
one (1) of the following permits:
(1) A beer wholesaler or wine wholesaler permit, if the wholesaler
is authorized by the primary source of supply to sell the brand of
flavored malt beverage purchased.
(2) A wine retailer's permit, wine dealer's permit, temporary wine
permit, dining car wine permit, boat permit, airplane permit, or
supplemental caterer's permit.
(f) A beer wholesaler may:
(1) store beer for an out-of-state brewer described in IC 7.1-3-2-9
and deliver the stored beer to another beer wholesaler that the
out-of-state brewer authorizes to sell the beer;
(2) perform all necessary accounting and auditing functions
associated with the services described in subdivision (1); and
(3) receive a fee from an out-of-state brewer for the services
described in subdivisions (1) through (2).
(g) An affiliate of a beer wholesaler that holds a carrier's
alcoholic permit under IC 7.1-3-18-1 may provide logistic services
to one (1) or more of the following:
(1) The holder of a beer wholesaler's permit.
(2) The holder of a wine wholesaler's permit.
(3) The holder of a liquor wholesaler's permit.
SOURCE: IC 7.1-3-8-3; (13)IN1115.1.4. -->
SECTION 4. IC 7.1-3-8-3, AS AMENDED BY P.L.94-2008,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3. (a) The holder of a liquor wholesaler's permit
shall be entitled to sell liquor at wholesale.
(b) A liquor wholesaler shall be entitled to purchase liquor within
this state from a person who holds a distiller's permit, a rectifier's
permit, or a liquor wholesaler's permit. A liquor wholesaler also may
purchase liquor outside this state from the primary source of supply
and, from that source, may transport and import liquor into this state.
(c) A liquor wholesaler may sell, transport, and deliver liquor only
to a person who, under this title, holds a:
(1) liquor retailer's permit;
(2) supplemental caterer's permit;
(3) liquor dealer's permit; or
(4) liquor wholesaler's permit.
Except as provided in subsection (e), IC 7.1-3-3-5, or IC 7.1-3-13-3,
the sale, transportation, and delivery of liquor shall be made only from
inventory that has been located on the wholesaler's premises before the
time of invoicing and delivery, and only in permissible containers and
is subject to the rules of the commission fixing the quantity which may
be sold or delivered at any one (1) time.
(d) A liquor wholesaler's bona fide regular employees may purchase
liquor from the wholesaler in an amount not to exceed eighteen (18)
liters.
(e) An affiliate of a liquor wholesaler that holds a carrier's
alcoholic permit under IC 7.1-3-18-1 may provide logistic services
to one (1) or more of the following:
(1) The holder of a beer wholesaler's permit.
(2) The holder of a wine wholesaler's permit.
(3) The holder of a liquor wholesaler's permit.
SOURCE: IC 7.1-3-13-3; (13)IN1115.1.5. -->
SECTION 5. IC 7.1-3-13-3, AS AMENDED BY P.L.165-2006,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3. (a) The holder of a wine wholesaler's permit
may purchase, import, and transport wine, brandy, or flavored malt
beverage from the primary source of supply. A wine wholesaler may
export and transport wine, brandy, or flavored malt beverage by the
bottle, barrel, cask, or other container, to points outside Indiana. A
wine wholesaler is entitled to sell, furnish, and deliver wine or flavored
malt beverage from inventory that has been located on the wholesaler's
premises before the time of invoicing and delivery to a wine
wholesaler, a wine retailer, a supplemental caterer, a temporary wine
permittee, and a wine dealer, but not at retail. A wine wholesaler may
sell, furnish, and deliver brandy from inventory that has been located
on the wholesaler's premises before the time of invoicing and delivery,
but not at retail, only to a person who holds a liquor retailer's permit,
a supplemental caterer's permit, or a liquor dealer's permit. A holder of
a wine wholesaler's permit may sell wine to the wine wholesaler's bona
fide regular employees.
(b) An affiliate of a wine wholesaler that holds a carrier's
alcoholic permit under IC 7.1-3-18-1 may provide logistic services
to one (1) or more of the following:
(1) The holder of a beer wholesaler's permit.
(2) The holder of a wine wholesaler's permit.
(3) The holder of a liquor wholesaler's permit.
(b) (c) 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) (d) 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) (e) 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.
SOURCE: IC 7.1-3-18-3.5; (13)IN1115.1.6. -->
SECTION 6. IC 7.1-3-18-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 3.5. (a) A carrier holding a
carrier's alcoholic permit under section 1 of this chapter may
provide logistic services to wholesalers only if the carrier:
(1) enters into a written agreement to provide logistic services
with the wholesaler; and
(2) charges a commercially reasonable fee for the logistic
services provided.
(b) A carrier that holds a carrier's alcoholic permit and
provides logistic services to a wholesaler shall provide the
following to the commission annually:
(1) A copy of all written agreements entered into between the
carrier and the wholesaler.
(2) A report of a certified public accountant based on an
examination that was conducted in accordance with
attestation standards established by the American Institute of
Certified Public Accountants that expresses an opinion as to
whether:
(A) the carrier has received from the wholesaler only the
amount of compensation provided for in the written
agreement with the wholesaler; and
(B) any wholesaler with which the carrier is affiliated has
received any compensation for the logistic services
provided by the carrier.
(c) The carrier's alcoholic permit of a carrier that provides
logistic services as provided in this section may not be transferred.
(d) The employees of a carrier who provide logistic services may
not provide any post delivery merchandising, sales, or other
services to an alcoholic beverage retailer or dealer permittee.
SOURCE: IC 7.1-5-9-12; (13)IN1115.1.7. -->
SECTION 7. IC 7.1-5-9-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. Use of Another's
Warehouse Prohibited. Except as provided under IC 7.1-3-3-5,
IC 7.1-3-8-3, or IC 7.1-3-13-3, it is unlawful for a holder of a brewer's
permit, beer or liquor wholesaler's permit, or a beer or liquor retailer's
permit, to own, operate, maintain on his the permittee's own account,
patronize, use, or employ a warehouse, storage, or depot, owned or
operated by another person for the storage or keeping of an alcoholic
beverage except at the plant or premises which is covered by his the
permittee's permit.