February 8, 2013





HOUSE BILL No. 1017

_____


DIGEST OF HB 1017 (Updated February 6, 2013 12:28 pm - DI 14)



Citations Affected: IC 7.1-3; IC 7.1-5.

Synopsis: Farm wineries. Allows a farm winery permittee to sell not more than a total of 5,000 gallons of wine during a permit year to holders of wine dealer's permits or wine retailer's permits.

Effective: July 1, 2013.





Koch , Austin , Lucas , Bacon




    January 7, 2013, read first time and referred to Committee on Public Policy.
    February 7, 2013, amended, reported _ Do Pass.






February 8, 2013

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1017



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

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

SOURCE: IC 7.1-3-12-5; (13)HB1017.1.1. -->     SECTION 1. IC 7.1-3-12-5, AS AMENDED BY P.L.186-2011, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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 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 issued under IC 7.1-3-13;
        (6) is entitled to sell to holders of:
            (A) wine retailer's permits issued under IC 7.1-3-14; or
            (B) wine dealer's permits issued under IC 7.1-3-15;
        not more than a total of five thousand (5,000) gallons of wine, by the bottle or by the case, during a permit year;

        (6) (7) is exempt from the provisions of IC 7.1-3-14;
        (7) (8) is entitled to advertise the name and address of any retailer or dealer who sells wine produced by the permit holder's winery;
        (8) (9) 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) (10) is entitled to purchase and sell bulk wine as set forth in this chapter;
        (10) (11) is entitled to sell wine as authorized by this section for carryout on Sunday; and
        (11) (12) 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 forty-five (45) days in a calendar year.
SOURCE: IC 7.1-5-11-1.5; (13)HB1017.1.2. -->     SECTION 2. IC 7.1-5-11-1.5, AS AMENDED BY P.L.165-2006, SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1.5. (a) Except as provided in IC 7.1-3-12-5 and IC 7.1-3-26, it is unlawful for a person in the business of selling alcoholic beverages in Indiana or outside Indiana to ship or cause to be shipped an alcoholic beverage directly to 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.