HB 5368 — AN ACT CONCERNING ALCOHOLIC LIQUOR MANUFACTURER PERMITS.

(2) Such permit shall, at the single principal premises of the farm winery, authorize (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, dispensed out of bottles or containers having capacities of not more than two gallons per bottle or container, 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:

[(2)] (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;

[(3)] (C) not ship more than five gallons of wine in any two-month period to any person in this statestate; and not ship any wine until such permittee is registered, with respect to the permittee's sales of wine to consumers in this state, for purposes of the taxes imposed under chapters 219 and 220, with the Department of Revenue Services;

[(4)] (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,sales; with the amount of such taxes to be calculated as if the sale were in this state at the location where delivery is made;

[(5)] (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;

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[(8)](4) (H)No holdlicensed anfarm in-statewinery transporter'smay permitsell pursuantany tosuch sectionwine 30-19f or makebrandy anynot manufactured by such shipmentwinery, throughexcept a licensed farm winery may sell from the usepremises of(A) awine personmanufactured whoby holdsanother suchfarm anwinery in-statelocated transporter'sin permit;this state, and (B) brandy manufactured from fruit harvested in this state and distilled off the premises in this state.

and(5) [(9)]The (I)farm executewinery apermittee writtenshall consentgrow toon the jurisdictionpremises of thisthe state,farm itswinery agenciesor andon instrumentalitiesproperty andunder the courtssame ownership and control of thissaid statepermittee concerningor leased by the enforcementbacker of thisa sectionfarm andwinery anypermit relatedor laws,by rules,said orpermittee regulations,within including,the butfarm winery's principal state an average crop of fruit equal to not limitedless to,than taxtwenty-five laws,per rulescent orof regulations.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.

Such seven-year period shall not begin anew if the property for which the farm winery permit is held is transferred or sold during such seven-year period.

In the event the farm winery consists of more than one property, the aggregate acreage of the farm winery shall not be less than five acres.

(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) A holder of a manufacturer permit for a farm winery may sell and offer free tastings of wine manufactured from such winery at a farmers' market, as defined in section 22-6r, that is operated as a nonprofit enterprise or association, provided such farmers' market invites such holder to sell wine at such farmers' market and such holder has a farmers' market wine sales permit issued by the Commissioner of Consumer Protection in accordance with the provisions of subsection (a) of section 30-37o.

(8) The annual fee for a manufacturer permit for a farm winery shall be three hundred dollars.

(f) (1) A manufacturer permit for a farm brewery shall be in all respects the same as a manufacturer permit, except that the scope of operations of the holder shall be limited to the production of not more than seventy-five thousand gallons of beer in a calendar year.

As used in this section, "farm brewery" means any place or premises that is located on a farm in the state in which beer is manufactured and sold.

(2) Such permit shall, at the single principal premises of the farm brewery, authorize (A) the sale of sealed bottles or other sealed containers of beer brewed on such premises to the holder of a wholesaler permit issued pursuant to section 30-17;

(B) the offering and tasting of free samples of beer manufactured by the farm brewery permittee, dispensed out of bottles or other sealed containers to visitors and prospective retail customers for consumption on the premises of the farm brewery permittee;

(C) the sale at retail from the premises of not more than [nine] eleven and one-half liters of such beer to any person per day, in sealed bottles or other sealed containers, for consumption off the premises;

and (D) the sale at retail from the premises of beer by the glass and bottle to visitors on the premises of the farm brewery permittee for consumption on the premises.

Notwithstanding the provisions of subparagraphs (A) to (D), inclusive, 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 brewery has been issued.

(3) The farm brewery permittee shall use not less than twenty-five per cent of a combination of hops, barley, cereal grains, honey, flowers or other fermentables grown or malted within the state of Connecticut in the manufacture of the farm brewery permittee's beer for the first year of issuance for any such permit and not less than fifty per cent of such hops, barley, cereal grains, honey, flowers or other fermentables in the manufacture of the farm brewery permittee's beer for the second and any subsequent year of issuance for any such permit.

Any such beer may be advertised and sold by the farm brewery permittee as "Connecticut Craft Beer".

(4) A holder of a manufacturer permit for a farm brewery may sell beer manufactured from such brewery at a farmers' market, as defined in section 22-6r, that is operated as a nonprofit enterprise or association, provided such farmers' market invites such holder to sell beer at such farmers' market and such holder has a farmers' market beer sales permit issued by the Commissioner of Consumer Protection in accordance with the provisions of subsection (a) of section 30-37r.

(5) The annual fee for a manufacturer permit for a farm brewery shall be three hundred dollars.

(g) A manufacturer permit for a brew pub shall allow:

(1) The manufacture, storage and bottling of beer, (2) the retail sale of alcoholic liquor to be consumed on the premises with or without the sale of food, (3) the selling at retail from the premises of sealed bottles or other sealed containers of beer brewed on such premises for consumption off the premises, and (4) the sale of sealed bottles or other sealed containers of beer brewed on such premises to the holder of a wholesaler permit issued pursuant to subsection (b) of section 30-17, provided that the holder of a manufacturer permit for a brew pub produces at least five thousand gallons of beer on the premises annually.

Such selling at retail from the premises of sealed bottles or other sealed containers shall comply with the provisions of subsection (d) of section 30-91 and shall permit not more than [nine] eleven and one-half liters of beer to be sold to any person on any day on which such sale is authorized under the provisions of subsection (d) of section 30-91.

The annual fee for a manufacturer permit for a brew pub shall be three hundred dollars.

(h) A manufacturer permit for beer and brew pub shall be in all respects the same as a manufacturer permit for beer, as defined in subsection (b) of this section, and shall allow those additional permissible uses specified in the manufacturer permit for a brew pub, as defined in subsection (g) of this section, provided the holder of a manufacturer permit for beer and brew pub produces at least five thousand gallons of beer on the premises annually.

The annual fee for a manufacturer permit for beer and brew pub shall be one thousand five hundred dollars.

(i) (1) A manufacturer permit for a farm distillery shall be in all respects the same as a manufacturer permit, except that the scope of operations of the holder shall be limited to the production of not more than ten thousand gallons per calendar year of distilled alcohol or spirits including, but not limited to, whiskey, gin, vodka and rum.

As used in this section, "farm distillery" means any place or premises that is located on a farm in the state in which distilled spirits or alcohol are manufactured and sold.

(2) Such permit shall, at the single principal premises of the farm distillery, authorize (A) the sale in bulk by the holder thereof from the premises where the products are manufactured pursuant to such permit;

(B) the sale and shipment by the holder thereof to a retailer of distilled alcohol or spirits manufactured by the farm distillery permittee in the original sealed containers of not more than fifteen gallons per container;

(C) the offering and tasting of free samples of such distilled alcohol or spirits, in amounts not to exceed [two] a total of three ounces per day per person of such distilled alcohol or spirits, which samples may be offered individually or as ingredients in cocktails or mixed drinks prepared on the premises, to visitors and prospective retail customers for consumption on the premises of the farm distillery permittee;

and (D) the sale at retail from the premises of sealed bottles or other sealed containers, in amounts not to exceed four and one-half liters per customer per day, of such distilled alcohol or spirits for consumption off the premises.

Notwithstanding the provisions of subparagraphs (C) and (D) 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 distillery has been issued.

(3) No licensed farm distillery may sell any such distilled alcohol or spirits not manufactured by such distillery.

(4) The farm distillery permittee shall grow on the premises of the farm distillery or on property under the same ownership and control of said permittee or leased by the backer of a farm distillery permit or by said permittee within the farm distillery's principal state an average crop of fruit or crops equal to not less than twenty-five per cent of the fruit or crops used in the manufacture of the farm distillery permittee's distilled alcohol or spirits.

An average crop shall be defined each year as the average yield of the farm distillery permittee's two largest annual crops out of the preceding five years.

In the event the farm distillery consists of more than one property, the aggregate acreage of the farm distillery shall not be less than five acres.

(5) The annual fee for a manufacturer permit for a farm distillery shall be three hundred dollars.

Sec.

2.

Section 12-435 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2019):

Each distributor of alcoholic beverages shall pay a tax to the state on all sales within the state of alcoholic beverages, except sales to licensed distributors [,] and sales of alcoholic beverages which, in the course of such sales, are actually transported to some point without the state, [and except malt beverages which are consumed on the premises covered by a manufacturer's permit,] at the rates for the respective categories of alcoholic beverages listed below:

(a) Beer, seven dollars and twenty cents for each barrel, three dollars and sixty cents for each half barrel, one dollar and eighty cents for each quarter barrel and twenty-four cents per wine gallon or fraction thereof on quantities less than a quarter barrel;

(b) Liquor, five dollars and forty cents per wine gallon;

(c) Still wines containing not more than twenty-one per cent of absolute alcohol, except as provided in subsections (g) and (h) of this section, seventy-two cents per wine gallon;

(d) Still wines containing more than twenty-one per cent of absolute alcohol and sparkling wines, one dollar and eighty cents per wine gallon;

(e) Alcohol in excess of 100 proof, five dollars and forty cents per proof gallon;

(f) Liquor coolers containing not more than seven per cent of alcohol by volume, two dollars and forty-six cents per wine gallon;

(g) Still wine containing not more than twenty-one per cent of absolute alcohol, produced by a person who produces not more than fifty-five thousand wine gallons of wine during the calendar year, eighteen cents per wine gallon, provided such person presents to each distributor of alcoholic beverages described in this section a certificate, issued by the commissioner, stating that such person produces not more than fifty-five thousand wine gallons of wine during the calendar year.

The commissioner is authorized to issue such certificates, prescribe the procedures for obtaining such certificates and prescribe their form;

and (h) Cider containing not more than seven per cent of absolute alcohol shall be subject to the same rate as applies to beer, as provided in subsection (a) of this section.

Section 1 Julyfrom 1,passage 201830-16 30-18(b)Sec. Statement of Purpose:

To2 allowJanuary out-of-state1, retailers2019 to12-435 shipGL wineJoint directlyFavorable toSubst. consumers in this state.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]