Introduced Version






HOUSE BILL No. 1528

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 7.1-3-25 ; IC 7.1-4; IC 7.1-5-11-1.5.

Synopsis: Direct shipment of wine. Provides that a primary source of supply that is located outside Indiana may make a direct shipment of wine to a person in Indiana who holds a wine connoisseur's permit if the state where the primary source of supply is located allows an Indiana primary source of supply to ship wine directly to a consumer in that state. Requires the holder of a wine connoisseur's permit to pay the excise tax on wine received by direct shipment.

Effective: July 1, 2003.





Kuzman




    January 16, 2003, read first time and referred to Committee on Public Policy, Ethics and Veterans Affairs.







Introduced

First Regular Session 113th General Assembly (2003)


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 this style type.
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.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

HOUSE BILL No. 1528



    A BILL FOR AN ACT to amend the Indiana Code concerning alcoholic beverages and tobacco.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 7.1-3-25; (03)IN1528.1.1. -->     SECTION 1. IC 7.1-3-25 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 25. Wine Connoisseur's Permit
    Sec. 1. A primary source of supply that is located outside Indiana may ship, transport, or consign not more than twenty-four (24) bottles of wine each month to a person in Indiana if the following requirements are met:
        (1) The person who orders and receives the direct wine shipment:
            (A) holds a wine connoisseur's permit under this chapter; and
            (B) is at least twenty-one (21) years of age.
        (2) The law of the state where the primary source of supply is located allows an Indiana primary source of supply to ship wine directly to a consumer located in that state.
    Sec. 2. A person who holds a wine connoisseur's permit may

order or purchase wine in person, by mail, facsimile transmission (fax), telephone, computer network (as defined in IC 35-43-2-3 (a)), or other device.
    Sec. 3. The holder of a wine connoisseur's permit may receive direct shipments of wine only for personal use and not for resale.
    Sec. 4. (a) A person must submit an application to the commission for a wine connoisseur's permit on a form prescribed by the commission. The application must contain the following information:
        (1) The name of the applicant.
        (2) The applicant's home or business address.
        (3) Proof that the applicant is at least twenty-one (21) years of age.
        (4) Any other information required by the commission.
    (b) A registration fee of twenty-five dollars ($25) shall be submitted to the commission with the application.
    Sec. 5. A wine connoisseur's permit remains in effect for one (1) calendar year, including the day the permit is granted as set forth in IC 7.1-3-1-3.
    Sec. 6. A holder of a wine connoisseur's permit may annually renew the permit by submitting the following to the commission:
        (1) An application for renewal on a form prescribed by the commission.
        (2) A renewal fee of fifteen dollars ($15).
    Sec. 7. (a) The holder of a wine connoisseur's permit shall annually report to the department of state revenue the dollar amount of any wine purchases made under this chapter that were shipped into Indiana from outside Indiana.
    (b) The holder of the wine connoisseur's permit shall pay the wine excise tax on the purchases reported under subsection (a).
    Sec. 8. A primary source of supply who makes a direct shipment to a person holding a wine connoisseur's permit under this chapter shall ensure that a container of wine shipped directly to a resident in Indiana is conspicuously labeled with the words: "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.".
    Sec. 9. A person who violates this chapter is subject to the penalties set forth in IC 7.1-5-11.
    Sec. 10. The commission may revoke a wine connoisseur's permit for the failure to pay the excise taxes when required to do so by this title. The action of the commission is final.
    Sec. 11. The commission may adopt rules under IC 4-22-2 to

implement this chapter.

SOURCE: IC 7.1-4-4-3; (03)IN1528.1.2. -->     SECTION 2. IC 7.1-4-4-3 , AS AMENDED BY P.L.201-1999, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: 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 dining car wine permit, or a boat wine permit, or a wine connoisseur's 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 7.1-4-6-1; (03)IN1528.1.3. -->     SECTION 3. IC 7.1-4-6-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. Power of Commission and Department. The chairman and the department shall have the power to examine the books, papers, records, and premises of a manufacturer, wholesaler, retailer, or dealer, or holder of a wine connoisseur's permit under this title for the purpose of determining whether the excise taxes imposed by this title have been paid fully and whether the provisions of the title are being complied with.
SOURCE: IC 7.1-4-7-1; (03)IN1528.1.4. -->     SECTION 4. IC 7.1-4-7-1 , AS AMENDED BY P.L.235-2001, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. Collection of Annual License Fees. The chairman shall collect the required annual license fee paid in connection with the issuance of a brewer's permit, a beer wholesaler's permit, a temporary beer permit, a dining car permit of any type, a boat permit of any type, a distiller's permit, a rectifier's permit, a liquor wholesaler's permit, a vintner's permit, a farm winery permit, a farm winery brandy distiller's permit, a wine wholesaler's permit, a wine connoisseur's permit, a wine bottler's permit, a temporary wine permit, a salesman's permit, and a carrier's alcoholic permit.
SOURCE: IC 7.1-5-11-1.5; (03)IN1528.1.5. -->     SECTION 5. IC 7.1-5-11-1.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) It is unlawful for a person in the business of selling alcoholic beverages in another state or country to ship or cause to be shipped:
         (1) an alcoholic beverage directly to an Indiana resident who does not hold a valid wholesaler permit under this title; or
        (2) wine directly to an Indiana resident who does not hold a wine connoisseur's permit under IC 7.1-3-25.

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.