File No. 69

Senate, March 30, 2005

The Committee on General Law reported through SEN. COLAPIETRO of the 31st Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING THE SHIPMENT OF WINE TO STATE RESIDENTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 30-77 of the general statutes is amended by adding subsection (c) as follows (Effective from passage):

(NEW) (c) The provisions of this section shall not prohibit a person licensed in another state as a wine producer, supplier, importer, wholesaler, distributor or retailer from shipping shipments of wine for which such person holds the appropriate out-of-state shipper's permit, as provided in sections 30-18 and 30-18a, if (1) such shipment is addressed to a package store permittee, as described in section 30-20; (2) a person, other than a minor, signs for the receipt of such shipment at the time and place of delivery; (3) the person shipping the shipment reports such shipment to the Department of Consumer Protection in such manner as the department prescribes; (4) all taxes attributable to the production, sale and consumption of such shipment are satisfied; and (5) such shipments, in their aggregate, contain twenty-four bottles of wine, as defined in subdivision (19) of section 30-1, or less if shipped in a period of thirty days or less.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill allows a liquor seller in another state that holds a license as a wine producer, supplier, importer, wholesaler, distributor, or retailer and holds a Connecticut out-of-state shipper’s permit to ship wine to a Connecticut package store under certain conditions. Under the bill the shipper must report the shipment to the Department of Consumer Protection (DCP) in the manner it prescribes. This has no fiscal impact.

However, to the extent that the bill allows certain out-of-state shippers to ship to Connecticut package stores, the shippers would have to pay sales tax and alcoholic beverage tax. This is estimated to result in a minimal increase in revenue to the General Fund of less than $100,000. The effect is estimated to be minimal due to the large number of restrictions the purchaser would have to go through to purchase alcohol in this manner.

OLR Bill Analysis

SB 122

AN ACT CONCERNING THE SHIPMENT OF WINE TO STATE RESIDENTS

SUMMARY:

The bill allows a liquor seller in another state that holds a license as a wine producer, supplier, importer, wholesaler, distributor, or retailer and holds a Connecticut out-of-state shipper’s permit to ship wine to a Connecticut package store if: (1) the shipment is addressed to a package store permittee; (2) someone 21 or older signs for receipt of the shipment; (3) the shipper reports the shipment to the Department of Consumer Protection in the manner it prescribes; (4) all taxes related to the shipment’s production, sale, and consumption are satisfied; and (5) the shipments, in the aggregate, contain no more than 24 bottles in a 30-day period.

The law, unchanged by the bill, does not allow package stores to purchase wine for resale from any business other than one holding a Connecticut manufacturer or wholesaler permit. Apparently, the bill allows package store permit holders to receive wine from these out-of-state businesses either for personal consumption or on behalf of another person.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

General Law Committee

Joint Favorable Report