Connecticut Seal

General Assembly

Amendment

 

January Session, 2007

LCO No. 8552

   
 

*HB0714108552SRO*

Offered by:

 

SEN. RORABACK, 30th Dist.

REP. MINER, 66th Dist.

 

To: House Bill No. 7141

File No. 481

Cal. No. 379

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Subsection (e) of section 30-16 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(e) (1) A manufacturer permit for a farm winery shall [be in all respects the same as a manufacturer permit, except that the scope of operations of the holder shall be limited to] allow the production and bottling of wine and brandies distilled from grape products or other fruit products, including grappa and eau-de-vie, as provided in this section. As used in this section, "farm winery" means [any place or premises] a winery, located on a farm and consisting of not less than five acres, either owned or leased by the backer of the manufacturer permit for a farm winery in the state in which wine is manufactured and sold and who, together with all affiliates, produces one hundred thousand gallons, or less, of wine and/or brandy per calendar year. As used in this section, "affiliates" means any one of two or more persons wherein there is common ownership, either fully or partially or control, either directly or indirectly, of such person by one or more persons, either directly or indirectly, who own an interest in or controls one or more farm wineries or manufacturers of alcoholic liquor. As used in this section, "person" shall mean an individual, partnership, joint venture, corporation, limited liability company, association, limited partnership, trust or any other form of business enterprise. Nothing herein shall require any person who held a valid manufacturer permit for a farm winery, on May 1, 2007, but who owned or leased less than five acres as part of the farm on which the farm winery was located, to: (1) Dispose of or release his or her interest in any such permit or permits or shall affect his or her right to continue to hold, use and renew such permits, or (2) prohibit any such person from transferring his or her interest in the farm winery and allowing any such transferee or any subsequent transferees from applying for and obtaining, provided all requirements for the permit, other than the minimum acreage requirement as provided for in this section have been satisfied, a manufacturer permit for a farm winery, provided that in either instance, where the farm consists of less than five acres, the farm on which the farm winery is located consists of the same or greater acreage of real property, either owned or leased by the backer of the manufacturer permit for a farm winery which it had as of May 1, 2007.

(2) Such permit shall authorize at a single property location (A) the sale in bulk by the holder thereof from the premises where the products are manufactured pursuant to such permit; (B) [as to a manufacturer who produces one hundred thousand gallons of wine or less per year,] the sale and shipment by the holder thereof to a retailer of wine manufactured by the farm winery permittee in the original sealed containers of not more than fifteen gallons per container; (C) the sale and shipment by the holder thereof of wine manufactured by the farm winery permittee to persons outside the state; (D) the offering and tasting of free samples of such wine or brandy to visitors and prospective retail customers for consumption on the premises of the farm winery permittee; (E) the sale at retail from the premises of sealed bottles or other sealed containers of such wine or brandy for consumption off the premises; (F) the sale at retail from the premises of wine or brandy by the glass and bottle to visitors on the premises of the farm winery permittee for consumption on the premises; and (G) subject to the provisions of subdivision (3) of this subsection, the sale and delivery or shipment of wine manufactured by the permittee directly to a consumer in this state. Notwithstanding the provisions of subparagraphs (D), (E) and (F) of this subdivision, a town may, by ordinance or zoning regulation, prohibit any such offering, tasting or selling at retail at premises within such town for which a manufacturer permit for a farm winery has been issued.

(3) A permittee, when selling and shipping wine directly to a consumer in this state, shall: (A) Ensure that the shipping labels on all containers of wine shipped directly to a consumer in this state conspicuously state the following: "CONTAINS ALCOHOL—SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY"; (B) obtain the signature of a person age twenty-one or older at the address prior to delivery, after requiring the signer to demonstrate that he or she is age twenty-one or older by providing a valid motor vehicle operator's license or a valid identity card described in section 1-1h; (C) not ship more than five gallons of wine in any sixty-day period to any person in this state; (D) pay, to the Department of Revenue Services, all sales taxes and alcoholic beverage taxes due under chapters 219 and 220 on sales of wine to consumers in this state, and file, with said department, all sales tax returns and alcoholic beverage tax returns relating to such sales; (E) report to the Department of Consumer Protection a separate and complete record of all sales and shipments to consumers in the state, on a ledger sheet or similar form which readily presents a chronological account of such permittee's dealings with each such consumer; (F) not ship to any address in the state where the sale of alcoholic liquor is prohibited by local option pursuant to section 30-9; and (G) hold an in-state transporter's permit pursuant to section 30-19f or make any such shipment through the use of a person who holds such an in-state transporter's permit.

(4) No licensed farm winery may sell any such wine or brandy not manufactured by such winery, except a licensed farm winery may sell from the premises wine manufactured by another farm winery located in this state.

(5) The farm winery permittee shall grow and produce on the farm winery permit premises [of the farm winery or on property adjacent to and under the same ownership and control of said permittee within the state] an average crop of fruit equal to not less than twenty-five per cent of the fruit used in the manufacture of the farm winery permittee's wine. An average crop shall be defined each year as the average yield of the farm winery permittee's two largest annual crops out of the preceding five years, except that during the first seven years from the date of issuance of a farm winery permit, an average crop shall be defined as three tons of grapes for each acre of vineyard farmed by the farm winery permittee. As used in this section, "farm winery permit premises" means real property located in this state as described in the property description set forth in the farm winery application for a basic federal permit, as approved by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury. A copy of such basic federal permit shall be filed with the Department of Consumer Protection.

(6) A holder of a manufacturer permit for a farm winery, when advertising or offering wine for direct shipment to a consumer in this state via the Internet or any other on-line computer network, shall clearly and conspicuously state such liquor permit number in its advertising.

(7) The annual fee for a manufacturer permit for a farm winery shall be two hundred forty dollars.

Sec. 502. Subsection (a) of section 30-18 of the general statutes is repealed and the following is substituted in lieu thereof (Effective (Effective from passage):

(a) An out-of-state shipper's permit for alcoholic liquor other than beer shall allow the sale of such alcoholic liquor to manufacturer and wholesaler permittees in this state as permitted by law and, as to any out-of-state shipper operating a farm winery, [who produces not more than one hundred thousand gallons of wine per year,] the sale and shipment by the holder thereof to a [retailer] retail permittee of wine manufactured by such permittee on the permitted premises in the original sealed containers of not more than fifteen gallons per container. The permit premises of an out-of-state shipper's permit for alcoholic liquor may be located within this state or outside this state. The annual fee for an out-of-state shipper's permit for alcoholic liquor other than beer shall be forty-five dollars for a Connecticut manufacturer or wholesaler holding such a permit and shall be one thousand dollars for any other person holding such a permit. For purposes of this subsection, "farm winery" means any place or premises, located on a farm in which wine is manufactured and sold provided not less than twenty-five per cent of the fruit used in the manufacture of such wine is produced on such farm.

Sec. 503. Subsection (a) of section 30-18a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) An out-of-state winery shipper's permit for wine shall allow the sale of wine to manufacturer and wholesaler permittees in this state as permitted by law and for those out-of-state shippers that [produce not more than one hundred thousand gallons of wine per year] operate a farm winery, the sale and shipment by the holder thereof to a retailer of wine manufactured by such permittee in the original sealed containers of not more than fifteen gallons per container. For purposes of this section, farm winery shall have the meaning provided in section 30-18, as amended by this act."