SB 27-12_ Filed 03/02/2006, 15:12 Whetstone
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that Engrossed Senate Bill 27 be recommitted to a Committee of One, its sponsor, with specific
instructions to amend as follows:
SOURCE: Page 1, line 1; (06)MO002713.1. -->
Page 1, delete lines 1 through 17.
Page 2, delete lines 1 through 5.
Page 2, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: IC 7.1-1-3-44; (06)MO002713.2. -->
"SECTION 2. IC 7.1-1-3-44 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 44. The term "farm
winery" means a commercial winemaking establishment that produces
wine from products allowed by and meets the requirements of
IC 7.1-3-12-4.".
SOURCE: Page 15, line 14; (06)MO002713.15. -->
Page 15, between lines 14 and 15, begin a new paragraph and insert:
SOURCE: IC 7.1-3-7.5-3; (06)MO002713.28. -->
"SECTION 28. IC 7.1-3-7.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. The holder of
a farm winery brandy distiller's permit may do the following:
(1) Manufacture brandy.
(2) Rectify brandy.
(3) Bottle brandy.
(4) Use brandy that it has manufactured for the purpose of
producing fortified wine.
(5) Sell, transport, and deliver brandy that it has manufactured to
other wineries.
(6) Sell brandy at wholesale or retail on the permitted
premises.".
SOURCE: Page 16, line 17; (06)MO002713.16. -->
Page 16, delete lines 17 through 26, begin a new paragraph and
insert:
SOURCE: IC 7.1-3-12-3; (06)MO002713.31. -->
"SECTION 31. IC 7.1-3-12-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. The commission
may issue a farm winery permit to a person who:
(1) is the proprietor of a farm winery; and who
(2) desires to commercially manufacture wine; and
(3) is either:
(A) an individual; or
(B) a partnership, limited liability company, or corporation
domiciled in or admitted to do business in Indiana.
A farm winery permit shall be valid from July 1, of the then current
year to June 30, of the following year. IC 7.1-3-21-5 does not apply to
a farm winery permit issued under this chapter. The commission may
not issue a farm winery permit to a person who has not been a
continuous and bona fide resident of Indiana for at least one (1) year
preceding the date of the application for a farm winery permit.
SOURCE: IC 7.1-3-12-4; (06)MO002713.32. -->
SECTION 32. IC 7.1-3-12-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) In order to be
considered a "farm winery" within the meaning of this title and to be
eligible to receive a farm winery permit, a wine-making establishment
(1) must produce wine from grapes, other fruits, or honey
produced in this state; and
(2) shall not annually produce more than five hundred thousand
(500,000) gallons of wine.
(b) Table wine that is shipped by the winery outside the state and
that involves a change of ownership may not be considered as part of
the winery's annual production for purposes of subsection (a)(2). (a).
SOURCE: IC 7.1-3-12-5; (06)MO002713.33. -->
SECTION 33. IC 7.1-3-12-5, AS AMENDED BY P.L.224-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 5. (a) The holder of a farm winery permit:
(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;
(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;
(4) (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
either
wholesale;
or retail;
(5) (6) is exempt from the provisions of IC 7.1-3-14;
(6) (7) is entitled to advertise the name and address of any retailer
or dealer who sells wine produced by the permit holder's winery;
(7) (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;
(8) (9) is entitled to purchase and sell bulk wine as set forth in this
chapter; and
(9) (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 a second location not more than
three (3) additional locations that is are separate from the winery. At
the second location, 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 nine (9) thirty (30)
days in a calendar year.
SOURCE: IC 7.1-3-13-1; (06)MO002713.34. -->
SECTION 34. IC 7.1-3-13-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) Subject to
subsection (c), the commission may issue a wine wholesaler's permit
to sell wine, or wine and brandy, at wholesale to a person who:
(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) The holder of a farm winery permit that also holds a wine
wholesaler permit issued under IC 7.1-4-4.1-13(c), may locate the
wine wholesaler business within the licensed premises of the farm
winery.".
SOURCE: Page 23, line 5; (06)MO002713.23. -->
Page 23, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 7.1-3-26; (06)MO002713.47. -->
"SECTION 47. IC 7.1-3-26 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 26. Direct Wine Seller's Permit
Sec. 1. As used in this chapter, "applicant" means a person that
applies to the commission for a direct wine seller's permit.
Sec. 2. As used in this chapter, "consumer" means an individual
who purchases wine from a seller.
Sec. 3. As used in this chapter, "seller" means the holder of a
direct wine seller's permit issued under this chapter.
Sec. 4. A person located within Indiana or outside Indiana that
wants to sell wine directly to a consumer must be the holder of a
direct wine seller's permit and comply with this chapter.
Sec. 5. (a) Subject to subsection (b), a seller may sell only wine
directly to a consumer who meets all of the following requirements:
(1) The consumer is at least twenty-one (21) years of age.
(2) The consumer is an Indiana resident.
(3) The consumer does not hold an interest in an alcoholic
beverage permit issued under this title.
(4) The consumer has not been convicted within the last ten
(10) years of any state or federal crime relating to:
(A) providing alcoholic beverages to a minor;
(B) engaging in commerce in alcoholic beverages or the
transportation of alcoholic beverages; or
(C) acquiring alcoholic beverages.
(5) The consumer intends to use wine purchased under this
chapter for personal consumption only and not for resale or
other commercial purposes.
(6) Except as provided in subsection (b), the consumer has
certified to the seller in a face-to-face transaction at the
seller's place of business all the following:
(A) Name, telephone number, residence address, or
consumer's business address.
(B) Proof of age by an Indiana issued driver's license or
identification card showing the consumer to be at least
twenty-one (21) years of age.
(C) A statement, made under penalties for perjury, that the
consumer satisfies the requirements of subdivisions (1)
through (5).
(b) If, before July 1, 2006, the consumer has provided to the
seller in a face-to-face transaction at the seller's place of business
the consumer's:
(1) name;
(2) telephone number;
(3) residence address; or
(4) business address;
the seller may sell wine directly to a consumer who has complied
with subsection (a)(1) through (a)(5) but has not complied with
subsection (a)(6).
Sec. 6. The commission may issue a direct wine seller's permit
to an applicant who meets all of the following requirements:
(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 or import 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 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 (other than a permit or license to retail alcoholic
beverages at the applicant's permitted premises) issued by
any authority; and
(B) is not owned in whole or in part by a person who holds
a permit or license to wholesale or retail alcoholic
beverages.
(7) The applicant produces not more than five hundred
thousand (500,000) gallons of wine per year that are sold
within Indiana.
(8) The applicant has not distributed wine through a wine
wholesaler in Indiana within the thirty (30) days immediately
preceding the applicant's initial application for a direct wine
seller's permit or 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.
Sec. 7. (a) The term of a direct wine seller's permit begins on
July 1 and expires on June 30 of the following year. A direct wine
seller's permit may be renewed in accordance with rules adopted
by the commission.
(b) The annual direct wine seller's permit fee is one hundred
dollars ($100).
Sec. 8. A direct wine seller's permit entitles a seller to sell wine
to a consumer by receiving and filling orders that the consumer
transmits by electronic or other means if all of the following
conditions are satisfied before the sale or by the times set forth as
follows:
(1) The consumer provides the direct wine seller with the
following:
(A) The verification required by section 5(6) of this chapter
in an initial face-to-face transaction.
(B) Notwithstanding clause (A), if the consumer provided
the information specified in section 5(7) of this chapter in
an initial face-to-face transaction with the seller before July
1, 2006, the consumer is not required to comply with
section 5(6) of this chapter.
(2) The direct wine seller 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
make the records available to the commission during the
direct wine seller's regular business hours.
(3) The direct wine seller 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".
(4) The direct wine seller causes the wine to be delivered by
the holder of a valid carrier's alcoholic beverage permit under
IC 7.1-3-18.
(5) The direct wine seller causes the carrier to verify the
individual personally receiving the wine shipment is at least
twenty-one (21) years of age.
(6) The direct wine seller does not ship the consumer more
than two hundred sixteen (216) liters of wine in any calendar
year.
(7) The direct wine seller 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.
Sec. 9. It is unlawful for the holder of a farm winery brandy
distiller's permit to ship or cause to be shipped brandy produced
under this title to a consumer.
Sec. 10. A consumer shall provide the direct wine seller with
information the direct wine seller reasonably requires, including
the consumer's name, home street address, telephone number, and
other information required by the commission. The consumer shall
also verify under penalties for perjury to the direct wine seller that
the consumer satisfies every requirement of section 6 of this
chapter.
Sec. 11. During a permit year, a direct wine seller may not direct
ship in Indiana more than nine thousand (9,000) liters of wine.
Sec. 12. A wine shipment purchased under this chapter must be
delivered to:
(1) the consumer, who shall take personal delivery of the
shipment at the:
(A) consumer's residence;
(B) consumer's business address;
(C) carrier's business address; or
(D) address displayed on the shipping container; or
(2) an individual who is at least twenty-one (21) years of age
who shall take personal delivery of the shipment at:
(A) consumer's residence;
(B) consumer's business address; or
(C) address displayed on the shipping container.
Sec. 13. A consumer may not receive more than two hundred
sixteen (216) liters of wine in total from one (1) or more direct wine
sellers in a calendar year.
Sec. 14. (a) Except as provided in subsections (b) and (c), a
person who knowingly or intentionally violates this chapter
commits a Class C misdemeanor.
(b) A person who:
(1) knowingly or intentionally violates this chapter; and
(2) has one (1) prior unrelated conviction under this section
for an act or omission that occurred not more than ten (10)
years before the act or omission that is the basis for the most
recent violation;
commits a Class A misdemeanor.
(c) A person who:
(1) knowingly or intentionally violates this chapter; and
(2) has at least two (2) prior unrelated convictions under this
section for acts or omissions that occurred not more than ten
(10) years before the act or omission that is the basis for the
most recent violation;
commits a Class D felony.
Sec. 15. If a direct wine seller is charged under section 14 of this
chapter with selling to a consumer who does not meet the
requirements of section 5(1), 5(3), 5(4), or 5(5) of this chapter, it is
a defense to the charge if the direct wine seller obtained from the
consumer the affidavit required under section 5(6)(C) of this
chapter and produces a copy of the affidavit.
SOURCE: IC 7.1-4-4.1-13; (06)MO002713.48. -->
SECTION 48. IC 7.1-4-4.1-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) This section
applies to the following permits:
(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 twelve thousand (12,000) gallons
of wine in a year; or
(2) previously held a wine wholesaler's permit and certifies to
the commission that the permit applicant sold less than twelve
thousand (12,000) gallons of wine in the previous year.
SOURCE: IC 7.1-4-6-1; (06)MO002713.49. -->
SECTION 49. IC 7.1-4-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: 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 direct wine shipper's
permit holder 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; (06)MO002713.50. -->
SECTION 50. IC 7.1-4-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: 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 bottler's permit, a temporary wine permit, a direct wine shipper's
permit, a salesman's permit, and a carrier's alcoholic permit.".
SOURCE: Page 24, line 38; (06)MO002713.24. -->
Page 24, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 7.1-5-11-1.5; (06)MO002713.55. -->
"SECTION 55. IC 7.1-5-11-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.5. (a) Except as
provided in IC 7.1-3-26, it is unlawful for a person in the business of
selling alcoholic beverages in another state or country Indiana or
outside Indiana to ship or cause to be shipped an alcoholic beverage
directly to an Indiana resident a person in Indiana who does not hold
a valid wholesaler permit under this title. 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.
SOURCE: IC 7.1-5-11-15; (06)MO002713.56. -->
SECTION 56. IC 7.1-5-11-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15.
Transportation
of Unowned Goods Limited. It is unlawful for a person to import or
transport an alcoholic beverage that is not at that time the absolute
property of an authorized permittee under this title. This section shall
not apply to the shipment of an alcoholic beverage from another state
in continuous transit through this state into another state unless the
shipment is intended to evade a provision of this title. This section shall
not prohibit a person, other than permittee, from bringing into this state
a quantity of liquor or wine not exceeding one (1) quart eighteen (18)
liters if he the person is a traveler in the ordinary course of travel and
if it is not intended for sale to another person.".
SOURCE: Page 25, line 19; (06)MO002713.25. -->
Page 25, line 19, after "IC 7.1-3-1.5-7;" insert "IC 7.1-3-12-6;".
Renumber all SECTIONS consecutively.
(Reference is to ESB 27 as reprinted March 2, 2006.)
________________________________________
Representative Whetstone
Text Box
Adopted Rejected
COMMITTEE REPORT
MR. SPEAKER:
Your Committee of One, to which was referred Engrossed Senate Bill 27, begs leave to report that said bill
has been amended as directed.
________________________________________
MO002713/DI 110 2006