Bill Text: IN HB1227 | 2012 | Regular Session | Introduced
Bill Title: Artisan distiller's permit.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2012-01-09 - First reading: referred to Committee on Public Policy [HB1227 Detail]
Download: Indiana-2012-HB1227-Introduced.html
Citations Affected: IC 7.1-1-3-32.5; IC 7.1-2-3-16.5; IC 7.1-3;
IC 7.1-4; IC 7.1-5.
Synopsis: Artisan distiller's permit. Creates an artisan distiller's permit
for a person who desires to commercially manufacture not more than
40,000 gallons of liquor in a calendar year (excluding liquor sold
through a liquor wholesaler). Provides that an artisan distiller may do
the following: (1) Manufacture liquor. (2) Blend liquor purchased from
another manufacturer with the artisan distiller's product. (3) Bottle the
artisan distiller's liquor. (4) Store the artisan distiller's liquor. (5)
Transport, sell, and deliver the artisan distiller's liquor to places outside
of Indiana and to a liquor wholesaler. (6) Sell the artisan distiller's
liquor to consumers by the drink, bottle, or case at the artisan's
distillery. (7) Serve complimentary samples of the artisan distiller's
liquor to consumers at the artisan distiller's distillery. (8) Hold an
interest in a farm winery brandy distiller's permit that allows the artisan
distiller to sell and serve complimentary samples of the artisan
distiller's liquor to consumers at the farm winery brandy distiller's
additional locations. (9) Hold an interest in a brewer's permit for a
microbrewery to permit the artisan distiller to sell and serve samples of
the artisan distiller's liquor on the brewery premises. Allows the alcohol
and tobacco commission to collect an annual $250 permit fee for a
biennial artisan distiller's permit. Provides that a percentage of the
artisan distiller's permit fee is deposited in the enforcement and
administration fund and the state general fund. Makes conforming
amendments.
Effective: July 1, 2012.
January 9, 2012, 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.
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A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
(1)
(2) a producer of the alcoholic beverage;
(3) a vintner of the alcoholic beverage;
(4) a rectifier of the alcoholic beverage;
(5) an importer into the United States of the alcoholic beverage;
(6) an owner of the alcoholic beverage at the time it becomes a marketable product;
(7) a bottler of the alcoholic beverage;
(8) a brewer of the alcoholic beverage; or
(9) an agent specifically authorized to make sales to an Indiana wholesaler by a person listed in subdivisions (1) through (8).
JULY 1, 2012]: Sec. 16.5. (a) As used in this section, "facility"
includes the following:
(1) A facility to which IC 7.1-3-1-25(a) applies.
(2) A tract that contains a premises that is described in
IC 7.1-3-1-14(c)(2).
(3) A horse track or satellite facility to which IC 7.1-3-17.7
applies.
(4) A riverboat or racetrack to which IC 7.1-3-17.5 applies.
(5) A tract that contains an entertainment complex.
(b) As used in this section, "tract" has the meaning set forth in
IC 6-1.1-1-22.5.
(c) A facility may advertise alcoholic beverages:
(1) in the facility's interior; or
(2) on the facility's exterior.
(d) The commission may not exercise the prohibition power
contained in section 16(a) of this chapter on advertising by a brewer,
distiller, rectifier, or vintner in or on a facility.
(e) Notwithstanding IC 7.1-5-5-10 and IC 7.1-5-5-11, a facility may
provide advertising to a permittee that is a brewer, an artisan distiller,
a distiller, a rectifier, or a vintner in exchange for compensation from
that permittee.
(b) A liquor wholesaler shall be entitled to purchase liquor within this state from a person who holds an artisan distiller's permit, 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.
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.
(1) An amount of not more than four thousand dollars ($4,000) for each violation if the permittee is a brewer,
(2) An amount of not more than two thousand dollars ($2,000) for each violation if the permittee is a wholesaler of any type.
(3) An amount of not more than one thousand dollars ($1,000) for each violation if the permittee is the holder of a permit of a type not listed in subdivision (1) or (2).
Chapter 27. Artisan Distiller's Permit
Sec. 1. As used in this chapter, "artisan distiller" means a person who holds an artisan distiller's permit under this title.
Sec. 2. The commission may issue an artisan distiller's permit as provided in this chapter to a person who desires to commercially manufacture liquor.
Sec. 3. An artisan distiller may produce not more than forty thousand (40,000) gallons of liquor in any calendar year. Liquor produced by an artisan distiller that is sold through a wholesaler licensed under IC 7.1-3-8 may not be counted toward the gallonage limit.
Sec. 4. The commission may issue an artisan distiller's permit to:
(1) a domestic corporation; or
(2) a foreign corporation admitted to do business in Indiana;
if the corporation is qualified to obtain the necessary permit or license from the United States to own or operate an establishment to manufacture liquor.
Sec. 5. The holder of an artisan distiller's permit may do only the following:
(1) Manufacture liquor, including by blending liquor purchased from another manufacturer with liquor the artisan distiller manufactures under section 8 of this chapter.
(2) Bottle liquor manufactured by the artisan distiller.
(3) Store liquor manufactured by the artisan distiller.
(4) Transport, sell, and deliver liquor manufactured by the artisan distiller to:
(A) places outside Indiana; or
(B) the holder of a liquor wholesaler's permit under IC 7.1-3-8.
(5) Sell liquor manufactured by the artisan distiller to consumers by the drink, bottle, or case from the premises of the distillery where the liquor was manufactured.
(6) Serve complimentary samples of the liquor manufactured by the artisan distiller to consumers on the premises of the distillery where the liquor was manufactured.
(7) Hold an interest in a farm winery brandy distiller's permit that allows the artisan distiller to:
(A) sell liquor; and
(B) serve complimentary samples of liquor;
manufactured by the artisan distiller to consumers at the farm winery brandy distiller's additional locations under section 9 of this chapter.
(8) Hold an interest in a brewer's permit:
(A) for a brewery described in IC 7.1-3-2-7(5); and
(B) under which an artisan distiller may:
(i) sell liquor; and
(ii) serve complimentary samples of liquor;
manufactured by the artisan distiller to consumers at the brewery's premises under section 10 of this chapter.
Sec. 6. An artisan distiller may not sell liquor to a retailer or dealer.
Sec. 7. An artisan distiller may not ship liquor or cause liquor
to be shipped to a consumer.
Sec. 8. An artisan distiller may blend liquor that the artisan
distiller obtains from another manufacturer with liquor that the
artisan distiller manufactures. The artisan distiller may sell the
blended liquor as liquor that the artisan distiller manufactures
only if the final product contains at least sixty percent (60%) of
liquor that was fermented and distilled from raw materials by the
artisan distiller at the licensed premises of the artisan distiller.
Sec. 9. (a) This section applies only to a person who:
(1) holds an artisan distiller's permit; and
(2) holds an interest in a farm winery brandy distiller's permit
under IC 7.1-3-7.5.
(b) An artisan distiller may:
(1) serve samples of liquor that the artisan distiller
manufactures; and
(2) sell bottles and cases of liquor that the artisan distiller
manufactures;
at the additional farm winery brandy distiller locations under
IC 7.1-3-7.5-3(b), regardless of whether the brandy is
manufactured on the same premises where the artisan distiller
manufactures liquor.
Sec. 10. (a) This section applies only to a person who:
(1) holds an artisan distiller's permit; and
(2) holds an interest in a brewer's permit for a brewery
described in IC 7.1-3-2-7(5).
(b) An artisan distiller may:
(1) serve samples of liquor that the artisan distiller
manufactures; and
(2) sell bottles and cases of liquor that the artisan distiller
manufactures;
on the licensed premises where the beer is manufactured,
regardless of whether the beer is manufactured on the same
premises where the artisan distiller manufactures liquor.
Sec. 11. (a) The commission shall charge a permit fee of two
hundred fifty dollars ($250) annually to the holder of an artisan
distiller's permit. The permit shall be issued for a period of two (2)
years.
(b) The holder of an artisan distiller's permit shall pay the
permit fee to the chairman on the anniversary of the date of the
issuance of the original permit.
Sec. 12. Notwithstanding IC 7.1-5, a person who holds an
interest in a small farm winery distiller's permit under IC 7.1-3-7.5
or a brewer's permit under IC 7.1-3-2-7(5) may hold an interest in
an artisan liquor distiller's permit.
(1) holds a basic permit from the federal Bureau of Alcohol, Tobacco, Firearms and Explosives; and
(2) knowingly violates IC 7.1-5-11-1.5;
commits a Class A misdemeanor.
(b) A person who:
(1) is not described in subsection (a); and
(2) knowingly violates IC 7.1-5-11-1.5;
commits a Class D felony.
(c) If the chairman of the alcohol and tobacco commission or the attorney general determines that a vintner, an artisan distiller, a distiller, a brewer, a rectifier, or an importer that holds a basic permit from the federal Bureau of Alcohol, Tobacco, Firearms and Explosives has made an illegal shipment of an alcoholic beverage to consumers in Indiana, the chairman shall:
(1) notify the federal Bureau of Alcohol, Tobacco, Firearms and Explosives in writing and by certified mail of the official
determination that state law has been violated; and
(2) request the federal bureau to take appropriate action.
an original container returned by the original purchaser as a credit on a sale. This section shall not prohibit a permittee from refunding to a purchaser the amount paid by the purchaser for a container, or as a deposit on a container, if it is returned to the permittee. This section shall not prohibit a manufacturer from extending usual and customary credit for alcoholic beverages sold to a customer who maintains a place of business outside this state when the alcoholic beverages are actually shipped to a point outside this state. This section shall not prohibit an artisan distiller, a distiller, or a liquor or wine wholesaler from extending credit on liquor, flavored malt beverages, and wine sold to a permittee for a period of fifteen (15) days from the date of invoice, date of invoice included. However, if the fifteen (15) day period passes without payment in full, the wholesaler shall sell to that permittee on a cash on delivery basis only.