Bill Text: IN HB1132 | 2011 | Regular Session | Enrolled
Bill Title: Farm wineries and direct wine sellers.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1132 Detail]
Download: Indiana-2011-HB1132-Enrolled.html
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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AN ACT to amend the Indiana Code concerning alcohol and tobacco.
(b) The report under subsection (a) must include the following:
(1) An evaluation of the best practices of each state, including the District of Columbia, that allows direct wine shipment.
(2) An evaluation of related fiscal, tax, and other public policy and regulatory issues related to direct wine shipment.
(3) A determination regarding:
(A) the best practices for preventing access by minors to wine shipped directly to consumers;
(B) any significant increase or decrease in access to or demand for wine by minors that has been documented as related to direct wine shipment laws;
(C) the best practices for collecting tax revenues on wine;
(D) the benefits and costs of direct wine shipment to consumers; and
(E) the effect of direct wine shipment laws on in-state
wineries, alcoholic beverage licensees, and other local
businesses.
(c) This section expires July 1, 2012.
(1) an individual;
(2) a partnership, all the partners of which are bona fide residents of Indiana;
(3) a limited liability company, all the members of which are bona fide residents of Indiana; or
(4) a corporation organized and existing under the laws of Indiana and having authority under its charter to manufacture or sell beer.
(b) The commission may issue a brewer's permit to a brewer for a brewery that manufactures not more than
(1) an individual;
(2) a partnership organized and existing under the laws of Indiana;
(3) a limited liability company organized and existing under the laws of Indiana; or
(4) a corporation organized and existing under the laws of Indiana.
(1) Manufacture beer.
(2) Place beer in containers or bottles.
(3) Transport beer.
(4) Sell and deliver beer to a person holding a beer wholesaler's permit issued under IC 7.1-3-3.
(5) If the brewer's brewery manufactures not more than
(A) Sell and deliver beer to a person holding a retailer or a dealer permit under this title.
(B) Be the proprietor of a restaurant.
(C) Hold a beer retailer's permit, a wine retailer's permit, or a liquor retailer's permit for a restaurant established under clause
(B).
(D) Transfer beer directly from the brewery to the restaurant
by means of:
(i) bulk containers; or
(ii) a continuous flow system.
(E) Install a window between the brewery and an adjacent
restaurant that allows the public and the permittee to view both
premises.
(F) Install a doorway or other opening between the brewery
and an adjacent restaurant that provides the public and the
permittee with access to both premises.
(G) Sell the brewery's beer by the glass for consumption on the
premises. Brewers permitted to sell beer by the glass under
this clause must furnish the minimum food requirements
prescribed by the commission.
(H) Sell and deliver beer to a consumer at the permit premises
of the brewer or at the residence of the consumer. The delivery
to a consumer may be made only in a quantity at any one (1)
time of not more than one-half (1/2) barrel, but the beer may
be contained in bottles or other permissible containers.
(I) Sell the brewery's beer as authorized by this section for
carryout on Sunday in a quantity at any one (1) time of not
more than five hundred seventy-six (576) ounces. A brewer's
beer may be sold under this clause only at the address for
which the brewer's permit was issued under this chapter.
(6) If the brewer's brewery manufactures more than twenty thirty
thousand (20,000) (30,000) barrels of beer in a calendar year, own
a portion of the corporate stock of another brewery that:
(A) is located in the same county as the brewer's brewery;
(B) manufactures less than twenty thirty thousand (20,000)
(30,000) barrels of beer in a calendar year; and
(C) is the proprietor of a restaurant that operates under
subdivision (5).
(7) Provide complimentary samples of beer that are:
(A) produced by the brewer; and
(B) offered to consumers for consumption on the brewer's
premises.
(8) Own a portion of the corporate stock of a sports corporation
that:
(A) manages a minor league baseball stadium located in the
same county as the brewer's brewery; and
(B) holds a beer retailer's permit, a wine retailer's permit, or a
liquor retailer's permit for a restaurant located in that stadium.
(9) For beer described in IC 7.1-1-2-3(a)(4):
(A) may allow transportation to and consumption of the beer
on the licensed premises; and
(B) may not sell, offer to sell, or allow sale of the beer on the
licensed premises.
(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)
forty-five (45) days in a calendar year.
(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) The commission may issue and have outstanding only one (1) brewer's permit for each unit of population of this state of one hundred and seventy-five thousand (175,000) or major fraction thereof. The commission, however, shall not issue more than four (4) brewer's permits in the same congressional district.
thousand (20,000) (30,000) barrels of beer in a calendar year.
(b) The commission shall revoke the permit of a brewer or beer
wholesaler who holds an interest in another permit in violation of
IC 7.1-5-9-3.
(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.
(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.
(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.
(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.
(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.
(1) Brewer's permit for the manufacture of more than
(2) Distiller's permit.
(3) Malt manufacturer's permit.
(4) Rectifier's permit.
(5) Vintner's permit.
(6) Wine bottler's permit.
(b) A permit fee of two thousand dollars ($2,000) is annually imposed for the issuance of each permit described in subsection (a).
(b) It is unlawful for the holder of a brewer's or beer wholesaler's permit to have an interest in a liquor permit of any type under this title.
(b) It is lawful for a holder of a retailer's permit of any type to acquire, hold, own, or possess an interest of any type in a brewer's permit for a brewery that manufactures not more than
thousand (20,000) (30,000) barrels of beer in a calendar year.
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