SB 1065 — Reforming licenses related to sale of alcohol and nonintoxicating alcohol products

A licensee may not fill or refill any growler that appears to be cracked, broken, unsafe, or otherwise unfit to serve as a sealed beverage container.

(g) Growler labeling.

— A licensee authorized under this section selling growlers shall affix a conspicuous label on all sold and securely sealed growlers listing the name of the licensee selling the growler, the brand of the nonintoxicating beer or nonintoxicating craft beer in the growler, the alcohol content by volume of the nonintoxicating beer or nonintoxicating craft beer in the growler, and the date the growler was filled or refilled, and, further, all labeling on the growler shall be consistent with all federal labeling and warning requirements.

(h) Growler sanitation.

— A licensed brewer or resident brewer authorized under this section shall clean and sanitize all growlers he or she fills or refills in accordance with all state and county health requirements prior to its sealing.

In addition, the licensed brewer or resident brewer shall sanitize, in accordance with all state and county health requirements, all taps, tap lines, pipe lines, barrel tubes, and any other related equipment used to fill or refill growlers.

Failure to comply with this subsection may result in penalties under §11-16-23 of this code.

6 CS for SB 1065 (i) Fees.

— Commencing July 1, 2015, and every July 1 thereafter July 1, 2026, there is an no annual $100 nonrefundable fee for a licensee.

except for a licensed brewpub, to sell growlers as provided by this section.

The licensee must be in good standing with the state at the time of paying the fee application and renewal.

(j) Complimentary samples.

— A licensee authorized under this section may provide complimentary samples, which may be no greater than one ounce per sample and a sampling shall not exceed three different nonintoxicating beer or nonintoxicating craft beer complimentary one-ounce samples per patron per day.

A licensee authorized under this section providing complimentary samples shall, prior to any sampling, verify, using proper identification, that the patron sampling is 21 years of age or over and that the patron is not visibly intoxicated.

All nonintoxicating beer and nonintoxicating craft beer utilized for sampling purposes must be purchased from the licensee’s inventory.

(k) Limitations on licensees.

— A licensee under this section may only sell growlers during the hours of operation set forth in §11-16-18(a)(1) of this code.

Any licensee licensed under this section must maintain a secure area for the sale of nonintoxicating beer or nonintoxicating craft beer in a growler.

The secure area must only be accessible by the licensee.

Any licensee licensed under this section shall be subject to the applicable penalties under §11-16-23 of this code for violations of this section.

(l) Nonapplicability of certain statutes.

— Notwithstanding any other provision of this code to the contrary, licensees under this section are permitted to break the seal of the original container for the limited purpose of filling a growler or providing complimentary samples as provided in this section.

Any unauthorized sale of nonintoxicating beer or nonintoxicating craft beer or any consumption not permitted on the licensee’s licensed premises is subject to penalties under this article.

(m) Rules.

— The commissioner is authorized to propose rules for legislative approval, pursuant to §29A-3-1 et seq.

of this code, to implement this section.

7 CS for SB 1065 §11-16-6c.

Class B retail dealer which is a grocery store, mobile application, or web-based sales privilege permit;

fee.

(a) A Class B retail dealer who is licensed to sell nonintoxicating beer or nonintoxicating craft beer and who operates a grocery store containing over $100,000 of fresh produce and saleable food and food products fit for human consumption in a combination of displayed and stored inventory may apply for a Class B license privilege granting the licensee the ability to complete the sale of such nonintoxicating beer or nonintoxicating craft beer in the original sealed container for off-premises consumption to a person purchasing the nonintoxicating beer or nonintoxicating craft beer from a vehicle:

(1) If the vehicle is parked in a licensed parking area which is contiguous to the Class B licensee’s licensed premises;

or (2) If the vehicle is parked in a licensed parking area which is within 500 feet of the Class B licensee.

(b) The parking area referenced in subsection (a) of this section shall be designated by signage solely for the use of persons who have previously ordered items including, but not limited to, nonintoxicating beer or nonintoxicating craft beer using a mobile application or web-based software program.

(c) No nonintoxicating beer or nonintoxicating craft beer may be loaded into a vehicle under this section unless the Class B licensee or such licensee’s staff have verified that both the person placing the order, and, if different from the person placing the order, the person picking up the order are 21 years of age or older and not noticeably intoxicated;

and (d) To operate under this section, a Class B retail dealer licensee must be in good standing with the commissioner, apply, qualify, pay the Class B license privilege fee and obtain the permit for the Class B licensee privilege for nonintoxicating beer or nonintoxicating craft beer sales at a designated parking area.

The Beginning July 1, 2026, the Class B license privilege permit nonrefundable and non-prorated annual fee is $250 has no annual fee.

For purposes of criminal 8 CS for SB 1065 enforcement of the provisions of this article, persons placing orders and picking up orders are deemed to be purchasers.

(e) The licensee shall be subject to all requirements, penalties, and sanctions of this article.

§11-16-9.

Amount of license tax;

Class A and Class B retail dealers;

purchase and sale of nonintoxicating beer permitted;

distributors;

brewers;

brewpubs.

(a) All retail dealers, distributors, brewpubs, brewers, and resident brewers of nonintoxicating beer and of nonintoxicating craft beer shall pay an annual fee to maintain an active license as required by this article.

The license period begins on July 1 of each year and ends on June 30 of the following year:

If the license is granted for a shorter period, then the license fee shall be computed semiannually in proportion to the remainder of the fiscal year:

Provided, That if a licensee fails to complete a renewal application and make payment of its annual license fee in renewing its license on or before June 30 of any subsequent year, then an additional $150 reactivation fee shall be charged and paid by the licensee;

the fee may not be prorated or refunded, prior to the processing of any renewal application and applicable full year annual license fee;

and furthermore, a licensee who continues to operate after the expiration of its license is subject to all fines, penalties, and sanctions available in §11-16-23 of this code, all as determined by the commissioner.

(b) The annual license fees are as follows:

(1) Retail dealers shall be divided into two classes:

Class A and Class B.

(A) For a Class A retail dealer, the license fee is $150 $500 for each place of business:

the license fee for social, fraternal, or private clubs not operating for profit, and which have been in continuous operation for two years or more immediately preceding the date of application, is $150:

Provided, That railroads operating in this state may dispense nonintoxicating beer upon payment of an annual license tax of $10 for each dining, club, or buffet car in which the beer is dispensed.

Class A licenses issued for railroad dining, club, or buffet cars authorize the licensee to sell nonintoxicating beer at retail for consumption only on the licensed premises where sold.

All other 9 CS for SB 1065 Class A licensees may sell nonintoxicating beer or nonintoxicating craft beer at retail, as licensed, for consumption on the licensed premises or off the licensed premises.

Class A licensees may sell nonintoxicating beer or nonintoxicating craft beer for consumption off the licensed premises when it is in a sealed original container and sold for personal use, and not for resale.

Class A licensees shall provide prepared food or meals along with sealed nonintoxicating beer or nonintoxicating craft beer in the original container or in a sealed growler as set forth for sales and service in §11- 16-6d of this code, to a purchasing person who is in-person or in-vehicle picking up prepared food or a meal, and sealed nonintoxicating beer or nonintoxicating craft beer orders-to-go, subject to verification that the purchasing person is 21 years of age or older, and not visibly or noticeably intoxicated, and as otherwise specified in this article.

(B) For a Class B retail dealer, the license fee, authorizing the sale of both chilled and unchilled beer, is $150 $250 for each place of business.

A Class B license authorizes the licensee to sell nonintoxicating beer at retail in bottles, cans, or other sealed containers only, and only for consumption off the licensed premises.

A Class B retailer may sell to a purchasing person, for personal use, and not for resale, quantities of draught beer in original containers that are no larger in size than one-half barrel for off-premises consumption.

The commissioner may only issue a Class B license to the proprietor or owner of a grocery store.

For the purpose of this article, the term "grocery store" means any retail establishment commonly known as a grocery store or delicatessen, and caterer or party supply store, where food or food products are sold for consumption off the premises, and includes a separate and segregated portion of any other retail store which is dedicated solely to the sale of food, food products, and supplies for the table for consumption off the premises.

Caterers or party supply stores shall purchase the appropriate licenses from the Alcohol Beverage Control Administration.

(C) A Class A retail dealer may contract, purchase, or develop a mobile ordering application or web-based software program to permit the ordering and purchase of nonintoxicating beer or nonintoxicating craft beer, as authorized by the licensee's license.

The nonintoxicating 10 CS for SB 1065 beer or nonintoxicating craft beer shall be in a sealed original container or a sealed growler and meet the requirements of §11-16-6d of this code.

(2) For a distributor, the license fee is $1,000 for each place of business.

(3) For a brewer or a resident brewer with its principal place of business or manufacture located in this state and who produces:

(A) Twelve thousand five hundred barrels or less of nonintoxicating beer or nonintoxicating craft beer, the license fee is $250 for each place of manufacture, and no more than three places of manufacture are permitted for licensure;

(B) Twelve thousand five hundred one barrels and up to 25,000 barrels of nonintoxicating beer or nonintoxicating craft beer, the license fee is $1,000 for each place of manufacture, and no more than five places of manufacture are permitted for licensure;

(C) More than 25,001 barrels of nonintoxicating beer or nonintoxicating craft beer, the license fee is $1,500 for each place of manufacture.

(D) A brewer or resident brewer licensed under paragraph (A) or (B) of this subdivision shall receive one license for use at all places of manufacture;

each place of manufacture shall meet all licensing requirements in this article and the rules;

and all places of manufacture shall be noted on the one brewer or resident brewer license in compliance with §11-16-5 and §11-16-6a(k) of this code.

(4) For a brewer whose principal place of business or manufacture is not located in this state, the license fee is $1,500.

The brewer is exempt from the requirements set out in subsections (c), (d), and (e) of this section:

Provided, That a brewer whose principal place of business or manufacture is not located in this state that produces less than 25,000 barrels of nonintoxicating beer or nonintoxicating craft beer may choose to apply, in writing, to the commissioner to be subject to the variable license fees of subdivision (3), subsection (b) of this section and the requirements set out in subsections (c), (d), and (e) of this section subject to investigation and approval by the commissioner as to brewer requirements.

11 CS for SB 1065 (5) For a brewpub, the license fee is $500 for each place of manufacture.

(c) As part of the application or renewal application and in order to determine a brewer or resident brewer's license fee pursuant to this section, a brewer or resident brewer shall provide the commissioner, on a form provided by the commissioner, with an estimate of the number of nonintoxicating beer or nonintoxicating craft beer barrels and gallons it may produce during the year based upon the production capacity of the brewer's or resident brewer's manufacturing facilities and the prior year's production and sales volume of nonintoxicating beer or nonintoxicating craft beer.

(d) On or before July 15 of each year, every brewer or resident brewer who is granted a license shall file a final report, on a form provided by the commissioner, that is dated as of June 30 of that year, stating the actual volume of nonintoxicating beer or nonintoxicating craft beer in barrels and gallons produced at its principal place of business and other sites of manufacture during the prior year.

(e) If the actual total production of nonintoxicating beer or nonintoxicating craft beer by the brewer or resident brewer exceeded the brewer's or resident brewer's estimate that was filed with the application or renewal application for a brewer's or resident brewer's license for that period, then the brewer or resident brewer shall include a remittance for the balance of the license fee pursuant to this section that would be required for the final, higher level of production.

(f) Any brewer or resident brewer failing to file the reports required in subsections (c) and (d) of this section, and who is not exempt from the reporting requirements, shall, at the discretion of the commissioner, be subject to the penalties set forth in §11-16-23 of this code.

(g) Notwithstanding subsections (a) and (b) of this section, the license fee per event for a nonintoxicating beer floor plan extension is free for up to six separate floor plan extension events per year, after reaching six events in a year, for any subsequent events the fee is $50 per every floor plan extension for the rest of the year, and the fee may not be prorated or refunded.

A licensee shall submit an application, certification that the event meets certain requirements in this 12 CS for SB 1065 code and rules, and any other information required by the commissioner, at least 15 days prior to the event, all as determined by the commissioner.

(h) Notwithstanding subsections (a) and (b) of this section, a Class A retail dealer, in good standing with the commissioner, may apply, on a form provided by the commissioner, to sell, serve, and furnish nonintoxicating beer or nonintoxicating craft beer for on-premises consumption in an outdoor dining area or outdoor street dining area, as authorized by any municipal government or county commission in the which the licensee operates.

The Class A retail dealer shall submit to the municipal government or county commission, for approval, a revised floorplan and a request to sell and serve nonintoxicating beer or nonintoxicating craft beer, subject to the commissioner's requirements, in an approved outdoor area.

For private outdoor street dining, or private outdoor dining, the approved and bounded outdoor area need not be adjacent to the licensee's licensed premises, but in close proximity and under the licensee's control with right of ingress and egress.

For purposes of this section, "close proximity" means an available area within 150 feet of the Class A retail dealer's licensed premises.

A Class A retail dealer may operate a nonintoxicating beer or nonintoxicating craft beer outdoor dining or outdoor street dining in conjunction with a temporary private outdoor dining or temporary private outdoor street dining area set forth in §60-7-8d of this code and temporary private wine outdoor dining or temporary private wine outdoor street dining set forth in §60-8-32a of this code.

(i) For purposes of this article, "nonintoxicating beer or nonintoxicating craft beer outdoor dining and nonintoxicating beer or nonintoxicating craft beer outdoor street dining" includes dining areas that are:

(1) Outside and not served by an HVAC system for air handling services and use outside air;

(2) Open to the air;

and (3) Not enclosed by fixed or temporary walls;

however, the commissioner may seasonally approve a partial enclosure with up to three temporary or fixed walls.

Any area where seating is 13 CS for SB 1065 incorporated inside a permanent building with ambient air through HVAC is not considered outdoor dining pursuant to this subsection.

§11-16-11a.

Nonintoxicating beer sampling.

(a) Notwithstanding any provision of this code to the contrary, a Class A retail licensee, or Class B retail licensee, Class A Retail Dealer, or Class B Retail Dealer may, with the written approval of the commissioner, conduct a nonintoxicating beer sampling event on a designated nonintoxicating beer sampling day.

(b) At least five business days prior to the nonintoxicating beer sampling, the Class A retail licensee, or Class B retail licensee, Class A Retail Dealer, or Class B Retail Dealer shall submit a written proposal to the commissioner requesting to hold a nonintoxicating beer sampling event, including:

(1) The day of the event;

(2) The location of the event;

(3) The times for the event;

(4) The names of up to three specific brands, types, and flavors, if any, of the nonintoxicating beer to be sampled;

and (5) A statement indicating that all the nonintoxicating beer brands have been registered and approved for sale in the state by the commissioner.

(c) Upon approval by the commissioner, a Class A retail licensee, or Class B retail licensee, Class A Retail Dealer, or Class B Retail Dealer may serve the complimentary nonintoxicating beer samples of the approved brands, types, and flavors that are purchased by the a Class A retail licensee, or Class B retail licensee, Class A Retail Dealer, or Class B Retail Dealer with all taxes paid, from its inventory.

(d) The complimentary nonintoxicating beer sample on any nonintoxicating beer sampling day shall not exceed:

14 CS for SB 1065 (1) Three separate and individual sample servings per brand, type, and flavor per customer verified to be 21 years of age or older;

and (2) Four ounces in total volume per brand, type, and flavor.

(e) Servers at the nonintoxicating beer sampling event shall:

(1) Be employees of the Class A retail licensee or Class B retail licensee;

(2) Be at least 21 years of age or older;

and (3) Have specific knowledge of the nonintoxicating beer being sampled to convey to the customer.

(f) All servers at the nonintoxicating beer sampling event shall verify the age of the customer sampling nonintoxicating beer by requiring and reviewing proper forms of identification.

Servers at the nonintoxicating beer event may not serve any person who is:

(1) Under the age of 21 years;

or (2) Intoxicated.

(g) A nonintoxicating beer sampling event shall:

(1) Occur only inside the Class A retail licensee's or Class B retail authorized licensee’s licensed premises;

and (2) Cease on or before 9:00 p.m.

on any approved nonintoxicating beer sampling day.

(h) Any nonintoxicating beer bottle or can used for sampling must be from the inventory of the licensee, and clearly and conspicuously labeled "SAMPLE, NOT FOR RESALE".

If the seal is broken on any nonintoxicating beer bottle or can, or if any nonintoxicating beer bottle or can is opened, then that nonintoxicating beer bottle or can must be removed from the licensed premises immediately following the event.

(i) Violations of this section are subject to the civil and criminal penalties set forth in §11-16- 18, §11-16-19, §11-16-20, §11-16-22, §11-16-23, §11-16-24, and §11-16-25 of this code.

15 CS for SB 1065 (j) To implement the provisions of this section, the commissioner may promulgate emergency rules pursuant to the provisions of §29a-3-1 of this code or propose rules for legislative approval in accordance with the provisions of §29a -3-1 et seq.

of this code.

CHAPTER 17C.

TRAFFIC REGULATIONS AND LAWS OF THE ROAD.

ARTICLE 5D.

OPEN CONTAINER LAWS.

§17C-5D-3.

Possession of an open alcoholic beverage container in the passenger area of a motor vehicle;

exceptions;

penalties.

(a) It is unlawful for the operator or a passenger of a motor vehicle to consume any alcoholic beverage in the passenger area of a motor vehicle located on a public highway or right- of-way of a public highway in this state, whether the vehicle is in motion or at rest.

(b) It is unlawful for the operator or a passenger of a motor vehicle to knowingly possess any open alcoholic beverage container in the passenger area of any motor vehicle that is located on a public highway or right-of-way of a public highway in this state, whether the vehicle is in motion or at rest.

Possession by a person of one or more open containers in a single criminal occurrence is a single offense.

(c) The provisions of this section are not applicable to a passenger:

(1) In the passenger area of a motor vehicle designed, maintained or used primarily for the transportation of persons for compensation including, but not limited to, a bus, taxicab, pedal bike, chartered bus, or limousine;

or (2) In the living quarters of a motorized or nonmotorized house coach, house trailer, motor home or self-contained camper.

(d) A person who violates the provisions of subsection (a) or (b) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $50 nor more than $100.

CHAPTER 60.

STATE CONTROL OF ALCOHOLIC LIQUORS.

ARTICLE 2.

ALCOHOL BEVERAGE CONTROL COMMISSIONER.

16 CS for SB 1065 §60-2-17b.

Wine and liquor operating fund established;

operations fee;

fund issues.

(a) As of July 1, 2019, there is an annual nonrefundable and nonprorated operational fee of $100 for all distilleries, mini-distilleries, wineries, farm wineries, Class A retail licensees, Class B retail licensees, private clubs club types, private wine retailers, wine specialty shops, wine restaurants, private wine spas, private wine venues, bed and breakfasts, wine suppliers, and wine distributors which shall be paid on or before July 1, 2019, and every July 1 thereafter.

All fees collected by the commissioner pursuant to this section shall be deposited in a special revenue account in the State Treasury, hereby created, to be known as the Wine and Liquor Operations Fund.

Moneys in the fund may only be expended by the commissioner for the administration of this chapter, as appropriated by law.

(b) Licensees holding multiple licenses for nonintoxicating beer, nonintoxicating craft beer, wine, or liquor shall be subject to paying only one operations fee of $100 under this chapter and under §11-16-10(d) of this code.

ARTICLE 3A.

SALES BY RETAIL LIQUOR LICENSEES.

§60-3A-12.

Annual retail license fee;

expiration and renewal of retail licenses.

(a) The annual retail license period is from July 1 to June 30 of the following year.

The annual retail license fee for a Class A or Class B retail license is $2,000 $3,000.

The annual retail license fee for the initial year of issuance shall be prorated based on the number of days remaining between the date of issuance and the following June 30.

Notwithstanding the Class B off-premises fees set forth in §11-16-1 et seq.

of this code, a Class A or Class B retail license includes the sale of nonintoxicating beer or nonintoxicating craft beer for off-premises consumption and any other nonintoxicating beer or nonintoxicating craft beer services or privileges available to such Class B off-premises licenses as set forth in §11-16-1 et seq.

of this code for no additional fee but subject to all requirements in §11-16-1 et seq.

of this code.

Further, notwithstanding the Class B off-premises fees set forth in §60-8-1 et seq.

of this code and §60-8A-1 et seq.

of this code, a Class A or Class B retail license includes the sale of wine and hard cider for off-premises consumption and any other 17 CS for SB 1065 wine or hard cider services or privileges available to such Class B off-premises licenses as set forth in §60-8-1 et seq.

and §60-8A-1 et seq.

of this code for no additional fee but subject to all requirements in §60-8-1 et seq.

and §60-8A-1 et seq.

of this code.

(b) All retail licenses expire on June 30 of each year and may be renewed only upon the submission to the commissioner of the same information required for the issuance of the license and any additional information requested by the commissioner on the forms and by the date prescribed by the commissioner, together with the payment to the commissioner of the applicable annual retail license fee required under this section.

(c) No person may sell liquor at any retail outlet if the retail license applicable to the outlet has been suspended or revoked, or has expired.

(d) All retail licenses issued or renewed under the provisions of this article for the period ending June 30, 2010, or on June 30 for any ten-year period thereafter, expire and are of no further force or effect as of July 1, 2010, or as of July 1 every ten years thereafter.

(e) Notwithstanding any provision of section eighteen, article four §60-4-18 of this chapter code to the contrary, a municipality may invoke the authority granted by section four, article thirteen, chapter eight §8-13-4 of this code to require an annual license from each retail licensee and require payment for the license in amounts not to exceed the amounts provided in subsection (a) of this section.

§60-3A-17.

Wholesale prices set by commissioner;

retail licensees to purchase liquor from state;

transportation and storage;

method of payment.

(a) The commissioner shall fix wholesale prices for the sale of liquor, other than wine, to retail licensees.

The commissioner shall sell liquor, other than wine, to retail licensees according to a uniform pricing schedule.

The commissioner shall obtain, if possible, upon request, any liquor requested by a retail licensee and those permitted to manufacture and sell liquor pursuant to §60- 4-3 of this code.

18 CS for SB 1065 (b) Wholesale prices shall be established in order to yield a net profit for the General Revenue Fund of not less than $6,500,000 annually on an annual volume of business equal to the average for the past three years.

The net revenue derived from the sale of alcoholic liquors shall be deposited into the General Revenue Fund in the manner provided in §60-3-17 of this code.

(c) Notwithstanding any provision of this code to the contrary, the commissioner shall specify the maximum wholesale markup percentage which may be applied to the prices paid by the commissioner for all liquor, other than wine, in order to determine the prices at which all liquor, other than wine, will be sold to retail licensees.

A retail licensee shall purchase all liquor, other than wine, for resale in this state only from the commissioner, and the provisions of §60-6-12 and §60- 6-13 of this code shall not apply to the transportation of the liquor:

Provided, That a retail licensee shall purchase wine from a wine distributor who is duly licensed under §60-8-1 et seq.

of this code.

All liquor, other than wine, purchased by retail licensees shall be stored in the state at the retail outlet or outlets operated by the retail licensee:

Provided, however, That the commissioner, in his or her discretion, may upon written request permit a retail licensee to store liquor at a site other than the retail outlet or outlets.

(d) The sale of liquor by the commissioner to retail licensees shall be paid by electronic funds transfer which shall be initiated by the commissioner on the business day following the retail licensees order or by money order, certified check, or cashier’s check which shall be received by the commissioner at least 24 hours prior to the shipping of the alcoholic liquors:

Provided, That if a retail licensee posts with the commissioner an irrevocable letter of credit or bond with surety acceptable to the commissioner from a financial institution acceptable to the commissioner guaranteeing payment of checks, then the commissioner may accept the retail licensee’s checks in an amount up to the amount of the letter of credit.

(e) (1) A retail licensee may not sell liquor to persons licensed under the provisions of §60- 7-1 et seq.

of this code at less than 115 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

If a retail licensee can document, by purchase date and invoice submitted along with 19 CS for SB 1065 a written request to the commissioner, that a liquor product, which is still salable and fit for human consumption, has been stagnant for over one years from the purchase date, then, upon meeting the aforesaid requirements and approval by the commissioner, the retail licensee may not sell stagnant liquor to persons licensed under the provisions of §60-7-1 et seq.

of this code at less than 85 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

(2) A retail licensee may not sell liquor to the general public at less than 110 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

If a retail licensee can document, by purchase date and invoice submitted along with a written request to the commissioner, that a liquor product, which is still salable and fit for human consumption, has been stagnant for over one year from the purchase date, then, upon meeting the aforesaid requirements and approval by the commissioner, the retail licensee may not sell stagnant liquor to the general public at less than 90 percent of the retail licensee’s cost as defined in §47-11A-6 of this code.

§60-3A-19.

Limitation on amount to be sold.

(a) Not more than ten 10 gallons of liquor may be sold by a retail licensee to a person at one time without the approval of the commissioner or his or her representative, but a sale in excess of ten 10 gallons may be made to a religious organization purchasing wine for sacramental purposes:

Provided, That this section does not apply to purchases by private clubs club types as defined in article seven of this chapter §60-7-1 et seq.

of this code.

(b) This section does not apply to licensed distilleries, mini-distilleries, or micro-distilleries when selling an entire barrel or barrels of liquor, approved by commissioner, to a person or group of persons who have proof of their purchase while transporting more than 10 gallons of liquor purchased by the person or group of persons from the licensed distilleries, mini-distilleries, or micro-distilleries, subject to the provisions of §60-6-6 of this code.

ARTICLE 4.

LICENSES.

§60-4-3a.

Distillery, mini-distillery, and micro-distillery license to manufacture and sell.

20 CS for SB 1065 (a) Sales of liquor.

— An operator of a distillery, mini-distillery, or micro-distillery may offer liquor for retail sale to customers from the distillery, mini-distillery, or micro-distillery for consumption off-premises only.

Except for samples offered pursuant to §60-6-1 of this code, customers may not consume any liquor on the premises of the distillery, mini-distillery, or micro- distillery, except for a distillery, mini-distillery, or micro-distillery that obtains a private venue – alcohol manufacturer club license set forth in §60-7-1 et seq.

of this code, and a Class A retail dealer license set forth in §11-16-1 et seq.

of the code:

Provided, That a licensed distillery, mini- distillery, or micro-distillery may offer samples of alcoholic liquors as authorized by this subsection when alcoholic liquors are manufactured by that licensed distillery, mini-distillery, or micro-distillery for consumption on the licensed premises.

Notwithstanding any other provision of law to the contrary, a licensed distillery, mini-distillery, or micro-distillery may sell, furnish, and serve alcoholic liquors when licensed accordingly beginning at 6:00 a.m.

unless otherwise determined by the residents of the county pursuant to §7-1-3ss of this code.

(b) Retail on-premises and off-premises consumption sales.

— Every licensed distillery, mini-distillery, or micro-distillery shall comply with the provisions of §60-3A-9, §60-3A-11, §60-3A- 13, §60-3A-16, §60-3A-17, §60-3A-18, §60-3A-19, §60-3A-22, §60-3A-23, §60-3A-24, §60-3A- 25, and §60-3A-26 of this code, and the provisions of §60-3-1 et seq., §60-4-1 et seq., and §60-7-1 et seq.

of this code, applicable to liquor retailers and distillers.

In the interest of promoting tourism throughout the state, every licensed distillery, mini-distillery, or micro-distillery manufacturing liquor in this state is authorized, with a limited off-site retail privilege at private fairs and festivals, for on-premises consumption sales served by the drink or glass, and off-premises consumption sales by the bottle of only the licensed distillery, mini-distillery, or micro-distillery's sealed liquor.

At least five days prior to an approved private fair and festival, an authorized distillery, mini-distillery, or micro-distillery shall provide a copy of a written agreement to sell only liquor manufactured by the licensed distillery, mini-distillery, or micro-distillery at the private fair and festival's licensed premises.

If approved, an authorized distillery, mini-distillery, or micro-distillery may conduct on- 21 CS for SB 1065 premises and off-premises consumption sales of its liquor from a designated booth at the private fair and festival as set forth in §60-7-8a of this code.

All authorized and approved distilleries, mini- distilleries, and micro-distilleries' off-premises consumption sales shall comply with all retail requirements in §60-3A-1 et seq.

of this code, and specifically §60-3A-17 of this code with respect to all markups, taxes, and fees and also all retail requirements of §60-7-1 et seq.

of this code when applicable.

Additionally, every authorized distillery, mini-distillery, and micro-distillery may provide samples to patrons who are 21 years of age and older and who are not intoxicated.

The liquor samples of the licensed distillery, mini-distillery, or micro-distillery's product on any sampling day shall not exceed six ounces in total volume.

Samples may be mixed with each other or with non- alcoholic liquids as long as the total amount of the liquor sampled does not exceed six ounces.

(c) Payment of taxes and fees.

— The distillery, mini-distillery, or micro-distillery shall pay all taxes and fees required of licensed retailers and meet applicable licensing provisions as required by this chapter and by rule of the commissioner, except for including payments of the wholesale markup percentage and the handling fee provided by rule of the commissioner:

Provided, That all liquor for sale to customers from the distillery, mini-distillery, or micro-distillery for off-premises consumption is subject of a five percent wholesale markup fee and an 80 cents per case bailment fee to be paid to the commissioner:

Provided, however, That liquor sold by the distillery, mini-distillery, or micro-distillery shall not be priced less than the price set by the commissioner pursuant §60-3A-17 of this code.

(d) Payments to market zone retailers.

— Each distillery, mini-distillery, or micro-distillery shall submit to the commissioner two percent of the gross sales price of each retail liquor sale for the value of all sales at the distillery, mini-distillery, or micro-distillery each month.

Any sales by a distillery, mini-distillery, or micro-distillery at a private fair and festival are treated as occurring on their licensed premises for purposes of this market zone calculation.

This collection shall be distributed by the commissioner, at least quarterly, to each market zone retailer located in the distillery, mini-distillery, or micro-distillery's market zone, proportionate to each market zone 22 CS for SB 1065 retailer's annual gross prior years pretax value sales.

The maximum amount of market zone payments that a distillery, mini-distillery, or micro-distillery shall submit to the commissioner is $15,000 per annum.

(e) Limitations on licensees.

— A distillery, mini-distillery, or micro-distillery may not produce more than 50,000 gallons per calendar year.

The commissioner may issue more than one distillery, mini-distillery, or micro-distillery license to a single person or entity and a person may hold both a distillery and a mini-distillery license.

The owners of a licensed distillery, mini-distillery, or micro-distillery may operate a winery, farm winery, brewery, or as a resident brewer as otherwise specified in the code.

(f) Building code and tax classification.

— Notwithstanding any provision of this code to the contrary, the mere addition of a distillery, mini-distillery, or micro-distillery licensed under this article on a property does not change the nature or use of the property which otherwise qualifies as agricultural use for building code and property tax classification purposes.

(g) A political subdivision of this state may not regulate any of the following activities of a distillery, mini-distillery, or micro-distillery licensed and operating in accordance with this section:

(1) The on-premises sale, tasting, or consumption of liquor during business hours set forth in §60-7-12 of this code;

(2) The storage, warehousing, and wholesaling of liquor in accordance with the rules of the commissioner and federal law or regulations;

or (3) The sale of liquor related items including, but not limited to, the sale of pre-packaged food not requiring kitchen preparation that are incidental to the sale of liquor and on-premises consumption.

(h) Beginning on July 1, 2030, a distillery, mini-distillery, or micro-distillery licensed under this article may self-distribute, including lawful sales subject to all taxes, markups, market zone payments, and fees, to licensed private venues under §60-7-1 et seq.

of this code within the market zone or contiguous market zone where the distillery, mini-distillery, or micro-distillery is 23 CS for SB 1065 located.

Distribution and sales are treated as occurring on a distillery, mini-distillery, or micro- distillery licensed premises for purposes of the market zone calculation If a market zone is locked out from sales due to its location, the commissioner may approve a distillery, mini-distillery, or micro-distillery who requests to jump market zones to conduct sales and distribute to a licensed private venue in such a market zone.

§60-4-3b.

Winery and farm winery license to manufacture and sell.

(a) An operator of a winery or farm winery may offer wine produced by the winery, farm winery, or a farm entity authorized by §60-1-5c of this code, for retail sale to customers from the winery or farm winery for consumption on-premises or off-premises.

Customers may consume wine on-premises by the glass or drink or by the bottle when consumed by the glass when an operator of a winery or farm winery offers samples pursuant to this section and §60-6-1 of this code, and when the winery or farm winery is licensed as a private wine restaurant venue, or the winery or farm winery is licensed as a private venue – alcohol manufacturer.

club.

Customers may not consume any wine on the licensed premises of the winery, farm winery, or a farm entity authorized by §60-1-5c of this code, unless the winery, farm winery, or farm entity has obtained a multi-capacity winery or farm winery license:

Provided, That under this subsection, a licensed winery or farm winery may offer samples of wine manufactured by that licensed winery or farm winery for consumption on-premises during the hours of operation set forth in §60-8-34 of this code.

Notwithstanding any other provision of law to the contrary, a licensed winery or farm winery may sell, serve, and furnish wine, for on-premises consumption when licensed accordingly during the hours of operation set forth in §60-8-34 of this code unless otherwise determined by the residents of the county pursuant to §7-1-3ss of this code.

(b) Restriction by a political subdivision upon activities and events of farm wineries licensed in accordance with §60-4-3b of the code, to market and sell their products shall be reasonable and shall take into account the economic impact on the farm winery of such restriction, the agricultural nature of such activities and events, and whether such activities and events are 24 CS for SB 1065 usual and customary for farm wineries throughout the state of West Virginia and adjacent states.

Usual and customary activities and events at farm wineries shall be permitted without local regulation unless there is a substantial impact on the health, safety, or welfare of the public.

No local ordinance regulating noise, other than outdoor amplified music, arising from activities and events at farm wineries shall be more restrictive than that in the general noise ordinance.

In authorizing outdoor amplified music at a farm winery, the political subdivision shall consider the effect on adjacent property owners and nearby residents.

(c) A political subdivision may not regulate any of the following activities of a farm winery licensed and operating in accordance with this section:

(1) The production and harvesting of fruit and other agricultural products and the manufacturing of wine;

(2) The on-premises sale, tasting, or consumption of wine during business hours set forth in §60-8-34 of this code;

(3) The direct sale and shipment of wine by common carrier to consumers in accordance with the requirements of §60-8-6 and §60-8-6a of this code and the rules of the West Virginia Alcohol Beverage Control Commissioner;

(4) The storage, warehousing, and wholesaling of wine in accordance with the rules of the West Virginia and federal law or regulations;

or (5) The sale of wine-related items, including, but not limited, to the sale of pre-packaged food not requiring kitchen preparation, that are incidental to the sale of wine and on-premises consumption.

(6) To serve and sell wine by the glass or drink and by the bottle when consumed by the glass for consumption on- premises consumption, without the requirement to serve prepared food with the wine or application of any local health department limitations for food service in the area in which the wine is served.

25 CS for SB 1065 (d) No political subdivision may treat private personal gatherings held by the owner of a licensed farm winery who resides at the farm winery or on property adjacent thereto that is owned or controlled by such owner at which gatherings wine is not sold or marketed and for which no consideration is received by the farm winery or its agents differently from private personal gatherings by other citizens.

(e) Samples allowed by the provisions of this section may not exceed three fluid ounces and no more than six samples may be given to a patron in any one day.

(f) Samples may be provided only for on-premises consumption.

(g) A winery, farm winery, or farm entity, pursuant to §60-1-5c of this code, may offer for retail sale from its licensed premises sealed original container bottles of wine for off-premises consumption.

(h) A winery, farm winery, or farm entity licensed pursuant to §60-1-5c of this code, holding a multi-capacity license and a private wine restaurant license or private manufacturer club license may offer for sale wine by the drink or glass or wine by the bottle when consumed by the glass on the property of the winery, farm winery, or farm entity licensed pursuant to §60-1-5c of this code.

(i) Every licensed winery or farm winery shall comply with the provisions of §60-3-1 et seq., §60-4-1 et seq., and §60-8-1 et seq.

of this code as applicable to wine retailers, wineries, and suppliers when properly licensed in such capacities.

(j) (1) The winery or farm winery shall pay all taxes and fees required of licensed wine retailers and meet applicable licensing provisions as required by this chapter and by rules promulgated by the commissioner.

(2) Each winery or farm winery acting as its own supplier shall submit to the Tax Commissioner the liter tax for all sales at the winery or farm winery each month, as provided in §60-8-1 et seq.

of this code.

(3) The five percent wine excise tax, levied pursuant to §60-3-9d of this code, or pursuant to §8-13-7 of this code, may not be imposed or collected on purchases of wine in the original 26 CS for SB 1065 sealed package for the purpose of resale in the original sealed package, if the final purchase of the wine is subject to the excise tax or if the purchase is delivered outside this state.

(4) A liter tax shall not be collected on wine sold in the original sealed package for the purpose of resale in the original sealed package if a subsequent sale of the wine is subject to the liter tax.

(5) This section shall not be interpreted to authorize a purchase for resale exemption in contravention of §11-15-9a of this code.

(k) A winery or farm winery may advertise a particular brand or brands of wine produced by it.

The price of the wine is subject to federal requirements or restrictions.

(l) A winery or farm winery shall maintain separate winery or farm winery supplier, retailer, and direct shipper licenses when acting in one or more of those capacities and shall pay all associated license fees, unless the winery or farm winery holds a license issued pursuant to the provisions of §60-8-3(b)(12) of this code.

A winery or farm winery, if holding the appropriate licenses or a multi-capacity winery or farm winery license, may act as its own supplier;

retailer for off-premises consumption of its wine as specified in §60-6-2 of this code;

private wine restaurant venue;

or direct shipper for wine produced by the winery or farm winery.

A winery or farm winery that has applied, paid all fees, and met all requirements may obtain a private venue -alcohol manufacturer club license subject to the requirements of §60-7-1 et seq.

of this code, and a Class A retail dealer license subject to the requirements of §11-16-1 et seq.

of this code.

All wineries shall use a distributor to distribute and sell their wine in the state, except for farm wineries.

Wineries or farm wineries may enter into alternating wine proprietorship agreements, pursuant to §60-1-5c of this code.

(m) The owners of a licensed winery or farm winery may operate a distillery, mini-distillery, or micro-distillery, brewery, or as a resident brewer, as otherwise specified in the code.

(n) For purposes of this section, terms have the same meaning as provided in §8-13-7 of this code.

27 CS for SB 1065 (o) Building code and tax classification.

— Notwithstanding any provision of this code to the contrary, the mere addition of a winery or farm winery licensed under this article on a property does not change the nature or use of the property which otherwise qualifies as agricultural use for building code and property tax classification purposes.

(p) In the interest of promoting tourism throughout the state, every licensed winery or farm winery manufacturing wine in this state is authorized, with a limited off-site retail privilege at private fairs and festivals, for on-premises consumption sales and off-premises consumption sales of only the winery or farm winery's wine.

At least five days prior to an approved private fair and festival, an authorized winery or farm winery shall provide a copy of a written agreement to sell only wine manufactured by the licensed winery or farm winery at the private fair and festival's licensed premises.

If approved, an authorized licensed winery or farm winery may conduct on-premises and off-premises consumption sales of its wine from a designated booth at the private fair and festival as set forth in §60-7-8a of this code.

All authorized and approved wineries and farm wineries' on-premises and off-premises consumption sales shall comply with all retail requirements in §60-8-1 et seq.

of this code, and specifically with respect to all markups, taxes, and fees.

Additionally, an authorized winery, farm winery, or unlicensed winery, as referenced in §60-8-3 of this code may provide, sell, and serve wine samples of its wine in the amounts set forth in subsection (b) of this section, wine by the glass or drink, or wine by the bottle, when consumed by the glass, for on-premises consumption to patrons who are 21 years of age and older and who are not intoxicated.

(q) Farm Wineries.

– A farm winery is permitted to serve and sell wine as authorized by this section without the requirement to serve prepared food or the application of any local health department requirements for food service.

Prior to the sale, the licensee shall verify, using proper identification, that any patron purchasing wine is 21 years of age or over and that the patron is not visibly intoxicated.

28 CS for SB 1065 (r) All Farm Wineries may serve and sell wine at any fair or festival in the state of West Virginia consistent with the requirements of §60-8-3 and §60-8-8 of this code.

ARTICLE 7.

LICENSES TO PRIVATE CLUBS.

§60-7-2.

Definitions;

authorizations;

requirements for certain private club and private club type licenses.

(a) Unless the context in which used clearly requires a different meaning, as used in this article:

(1) "Applicant" means a private club applying for a license under the provisions of this article.

(2) "Code" means the official Code of West Virginia, 1931, as amended.

(3) "Commissioner" means the West Virginia Alcohol Beverage Control Commissioner.

(4) "Licensee" means the holder of a license to operate a private club granted under this article, which remains unexpired, unsuspended, and unrevoked.

(5) "Private club" means any corporation or unincorporated association which either:

(A) Belongs to or is affiliated with a nationally recognized fraternal or veterans' organization which is operated exclusively for the benefit of its members, which pays no part of its income to its shareholders or individual members, which owns or leases a building or other premises to which are admitted only duly-elected or approved dues-paying members in good standing of the corporation or association and their guests while in the company of a member and to which club the general public is not admitted, and which maintains in the building or on the premises a suitable kitchen and dining facility with related equipment for serving food to members and their guests;

(B) Is a nonprofit social club, which is operated exclusively for the benefit of its members, which pays no part of its income to its shareholders or individual members, which owns or leases a building or other premises to which are admitted only duly-elected or approved dues-paying members in good standing of the corporation or association and their guests while in the company 29 CS for SB 1065 of a member and to which club the general public is not admitted, and which maintains in the building or on the premises a suitable kitchen and dining facility with related equipment for serving food to members and their guests;

(C) Is organized and operated for legitimate purposes, which has at least 100 duly- elected or approved dues-paying members in good standing, which owns or leases a building or other premises, including any vessel licensed or approved by any federal agency to carry or accommodate passengers on navigable waters of this state, to which are admitted only duly- elected or approved dues-paying members in good standing of the corporation or association and their guests while in the company of a member and to which the general public is not admitted, and which club maintains in the building or on the premises a suitable kitchen and dining facility with related equipment and employs a sufficient number of persons for serving meals to members and their guests;

or (D) Is organized for legitimate purposes and owns or leases a building or other delimited premises in any state, county, or municipal park, or at any airport, in which a club has been established, to which are admitted only duly-elected and approved dues-paying members in good standing and their guests while in the company of a member and to which the general public is not admitted, and which maintains in connection with the club a suitable kitchen and dining facility and related equipment and employs a sufficient number of persons for serving meals in the club to the members and their guests.

(E) Additional private club types include:

a private accommodation, private venue, and private sports venue.

(6) "Private Accommodation" means an applicant for a private club or licensed private club licensee that operates as a hotel, bed and breakfast, short term rental, or resort hotel meeting the criteria set forth in this subsection for a:

(A) Hotel, short-term rental, or bed and breakfast that:

30 CS for SB 1065 (i) Offers short-term, daily rate accommodations or lodging for members and their guests amounting to at least five separate bedrooms, offers a conference center or room for meetings, as determined by the commissioner, and may offer one to two separate areas for the sale and consumption of alcoholic liquors and nonintoxicating beer;

(ii) Operates a restaurant and full kitchen with ovens, four-burner ranges, walk-in freezers, and other kitchen utensils and apparatus as determined by the commissioner on the licensed premises and serves freshly prepared food at least 20 hours per week;

(iii) Maintains, at any one time, fresh food capable of being prepared in the private hotel's full kitchen;

(iv) Owns or leases, controls, operates, and uses acreage amounting to at least one acre, and such property that is bounded or fenced real property which would be listed on the licensee's floorplan and would be used for hotel and conferences and large contracted group-type events such as weddings, reunions, conferences, meetings, and recreational events;

(v) Lists the entire property from subparagraph (iv) of this paragraph and all adjoining buildings and structures on the hotel's floorplan which would comprise the licensed premises, which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the hotel's licensed premises and as noted on the hotel's floorplan;

(vi) Has an identified person, persons, or entity that has right, title, and ownership or lease interest in the real property buildings and structures located on the proposed licensed premises;

(vii) May provide members and guests who are verified by proper form of identification to be 21 years of age or older to have secure access via key or key card to an in-room mini-bar in their rented short-term accommodation;

the mini-bar may be a small refrigerator not in excess of 1.6 cubic feet for the sale of nonintoxicating beer or nonintoxicating craft beer, wine, hard cider, and liquor sold from the original sealed container, and the refrigerator may contain:

31 CS for SB 1065 (I) Any combination of 12 fluid ounce cans or bottles not exceeding 72 fluid ounces of nonintoxicating beer or nonintoxicating craft beer;

(II) Any combination of cans or bottles of wine or hard cider not exceeding 750 ml of wine or hard cider;

(III) Liquor in bottles sized from 50 ml, 100 ml, and 200 ml, with any combination of those liquor bottles not exceeding 750 ml;

and (IV) Any combination of canned or packaged food.

All markups, fees, and taxes must be charged on the sale of nonintoxicating beer, nonintoxicating craft beer, wine, liquor, and hard cider.

All nonintoxicating beer or nonintoxicating craft beer available for sale must be purchased from the licensed distributor in the area where licensed.

All wine or hard cider available for sale must be purchased from a licensed wine distributor or authorized farm winery.

All liquor available for sale must be purchased from the licensed retail liquor outlet in the market zone of the licensed premises.

The mini-bar must be checked daily and replenished as needed to benefit the member and guest.

(B) Resort hotel that:

(i) Offers short term, daily rate accommodations or lodging for members and their guests amounting to at least 50 separate bedrooms and may offer multiple areas from two to 20 separate areas, upon written request additional areas may be granted, for the sale and consumption of alcoholic liquors and nonintoxicating beer, depending on its licensure status;

(ii) Operates a restaurant and full kitchen with ovens, six-burner ranges, walk-in freezers, and other kitchen utensils and apparatus as determined by the commissioner on the licensed premises and serves freshly prepared food at least 25 hours per week;

(iii) Maintains, at any one time, fresh food capable of being prepared in the resort hotel's full kitchen;

(iv) Owns or leases, controls, operates, and uses acreage amounting to at least 10 contiguous acres of bounded or fenced real property which would be listed on the licensee's floorplan and would be used for destination, resort, and large contracted-for group-type events such as weddings, reunions, conferences, meetings, and recreational events;

32 CS for SB 1065 (v) Lists the entire property from subparagraph (iv) of this paragraph and all adjoining buildings and structures on the resort hotel's floorplan comprising the licensed premises which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the resort hotel's licensed premises;

(vi) May have a separately licensed resident brewer with a brewpub license inner- connected via a walkway, doorway, or entryway, all as determined and approved by the commissioner, for limited access during permitted hours of operation for tours and samples at the resident brewery;

and (vii) May provide members and guests who are verified by proper form of identification to be 21 years of age or older to have access via key or key card to an in-room mini-bar in their rented short-term accommodation.

The mini-bar may be a small refrigerator not in excess of 3.2 cubic feet for the sale of nonintoxicating beer, nonintoxicating craft beer, wine, hard cider, and liquor sold from the original sealed container, and the refrigerator may contain:

(I) Any combination of 12 fluid ounce cans or bottles not exceeding 144 fluid ounces of nonintoxicating beer or nonintoxicating craft beer;

(II) Any combination of cans or bottles of wine or hard cider not exceeding one and a half liters of wine or hard cider;

(III) Liquor in bottles sized from 50 ml, 100 ml, 200 ml, and 375 ml with any combination of such liquor bottles not exceeding one and a half liters;

and (IV) Any combination of canned or packaged food.

All markups, fees, and taxes must be charged on the sale of nonintoxicating beer, nonintoxicating craft beer, hard cider, wine, and liquor.

All nonintoxicating beer or nonintoxicating craft beer available for sale must be purchased from the licensed distributor in the area where licensed.

All wine or hard cider available for sale must be purchased from a licensed wine distributor or authorized farm winery.

All liquor available for sale shall be purchased from the licensed retail liquor outlet in the market zone of the licensed 33 CS for SB 1065 premises.

The mini-bar must be checked daily and replenished as needed to benefit the member and guest.

(7) "Private Sports Venue" means an applicant for a private club or licensed private club licensee that operates as golf club, golf course, tennis club, sports stadium whether college or professional sports, a multi-sport complex, a coliseum or center, or any other sports center, as determined by the commissioner, where certain sports are played or watched and other events occur, which operate as:

(A) A golf club or course that:

(i) Has at least one nine-hole golf course with at least nine separate and distinct golf playing holes or mini-golf playing holes;

(ii) Has a restaurant and full kitchen with ovens, as determined by the commissioner, on the licensed premises and serves freshly prepared food at least 15 hours per week;

(iii) Owns or leases, controls, operates, and uses acreage amounting to at least 30 contiguous acres of bounded or fenced real property which would be listed on the golf club or course's floorplan and could be used for golfing events and large contracted group-type events such as weddings, reunions, conferences, meetings, sporting, or recreational events;

(iv) Lists the entire property from subparagraph (iii) of this paragraph and all adjoining buildings and structures on the golf club or course’s floorplan comprising the licensed premises which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer, wine, hard cider, or nonintoxicating craft beer throughout the licensed premises whether these activities are conducted in a building or structure or outdoors while on the golf club's or course’s licensed premises;

(v) Has an identified person, persons, or entity that has right, title, and ownership interest in the real property, buildings, and structures located on the proposed licensed premises;

(B) A tennis club or other racket sports facility that:

34 CS for SB 1065 (i) Has at least four separate and distinct tennis courts, either indoor or outdoor, and a clubhouse or similar facility;

(ii) Has a restaurant and full kitchen with ovens, as determined by the commissioner, on the licensed premises which is capable of serving freshly prepared food;

(iii) Owns or leases, controls, operates, and uses acreage amounting to at least two contiguous acres of bounded or fenced real property which would be listed on the tennis club's floorplan and could be used for tennis or racket sports events and large events such as weddings, reunions, conferences, tournaments, meetings, and sporting or recreational events;

(iv) Lists the entire property from subparagraph (iii) of this paragraph and all adjoining buildings and structures on the private tennis club's floorplan comprising the licensed premises which would be authorized for the lawful sales, service, and consumption of alcoholic liquors throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the tennis club's or sport facility’s licensed premises;

(v) Identifies a person, persons, an entity, or entities who or which has right, title, and ownership interest in the real property buildings and structures located on the proposed licensed premises;

(C) A college sports stadium on the campus of a college or university and may be stadium or coliseum for Division I, II, or III sports and that involves a college, public or private, or university that is a member of the National Collegiate Athletic Association, its successor, or other ratifying body, and uses the facility for football, basketball, baseball, soccer, or other Division I, II, or III sports, reserved weddings, reunions, conferences, meetings, or other special events and does not maintain daily or regular operating hours as a bar or restaurant.

The licensee may sell alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer when conducting or temporarily hosting non-collegiate or collegiate sporting events.

This license may be issued in the name of the National Collegiate Athletic Association Division I, II, or III college or university or the name of the primary food and beverage vendor under contract with that college or university.

All alcohol sales 35 CS for SB 1065 shall take place within the confines of the college or university stadium:

Provided, That any outside area approved for alcohol sales and nonintoxicating beer or nonintoxicating craft beer must be surrounded by a fence or other barrier prohibiting entry except upon the college or university's express permission, and under the conditions and restrictions established by the college or university, so that the alcohol sales area is closed in order to prevent entry and access by the general public.

Further the applicant shall:

(i) Maintain an open-air or enclosed stadium or coliseum venue primarily used for sporting events, such as football, basketball, baseball, soccer, or other Division I, II, or III sports, and also weddings, reunions, conferences, meetings, or other events where parties shall reserve the college stadium venue in advance of the event;

(ii) Operate a restaurant and full kitchen with ovens and equipment that is equivalent or greater than a private venue restaurant, as determined by the commissioner, on the licensed premises that is capable of serving freshly prepared food or meals to its stated members, guests, and patrons who will be attending the event at the college sports stadium;

(iii) Own or lease, control, operate, and use acreage amounting to at least two contiguous acres of bounded or fenced real property, as determined by the commissioner, which would be listed on the college stadium's floorplan and could be used for contracted-for temporary non- collegiate sporting events, group-type weddings, reunions, conferences, meetings, or other events;

(iv) List the entire property from subparagraph (iii) of this paragraph and all adjoining buildings and structures on the college sports stadium's floorplan which would comprise the licensed premises, which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the college sports stadium's licensed premises and as noted on the college sports stadium's floorplan;

and 36 CS for SB 1065 (v) Have an identified person, persons, or entity that has right, title, and ownership interest in the real property buildings and structures located on the proposed licensed premises;

(D) A professional sports stadium that is only open for professional sporting events when the events are affiliated with or sponsored by a professional sporting association, reserved weddings, reunions, conferences, meetings, or other special events and does not maintain daily or regular operating hours as a bar or restaurant.

Further an applicant shall:

(i) Maintain an open-air or enclosed stadium venue primarily used for sporting events, such as football, baseball, soccer, auto racing, or other professional sports, and also weddings, reunions, conferences, meetings, or other events where parties reserve the stadium venue in advance of the event;

(ii) Operate a restaurant and full kitchen with ovens, as determined by the commissioner, on the licensed premises which is capable of serving freshly prepared food or meals to serve its stated members, guests, and patrons who will be attending the event at the stadium;

(iii) Own or lease, control, operate, and use acreage amounting to at least three contiguous acres of bounded or fenced real property, as determined by the commissioner, which would be listed on the professional sports stadium's floorplan and could be used for contracted- for professional sporting events, group-type weddings, reunions, conferences, meetings, or other events;

(iv) List the entire property from subparagraph (iii) of this paragraph and all adjoining buildings and structures on the stadium's floorplan comprising the licensed premises which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the stadium's licensed premises;

and (v) Have an identified person, persons, or entity that has right, title, and ownership interest in the real property buildings and structures located on the proposed licensed premises;

37 CS for SB 1065 (E) A multi-sport complex that is open for multiple sports events to be played simultaneously at the complex’s multiple sports facilities, reserved weddings, concerts, reunions, conferences, meetings, or other special events, and which:

(i) Maintains an open-air multi-sport complex primarily for use for sporting events, such as baseball, soccer, basketball, tennis, frisbee, or other sports, but may also conduct weddings, concerts, reunions, conferences, meetings, or other events where parties reserve parts of the sports complex in advance of the sporting or other event;

(ii) Operates a restaurant and full kitchen with ovens in the licensee's main facility, as determined by the commissioner, on the licensed premises which is capable of serving freshly prepared food, or meals to its stated members, guests, and patrons who will be attending the event at the multi-sport complex.

A licensee may contract with temporary food vendors or food trucks for food sales only, but not on a permanent basis, in areas of the multi-sport complex not readily accessible by the main facility;

(iii) Maintains, at any one time, fresh food capable of being prepared in the multi-sport complex's full kitchen;

(iv) Owns or leases, controls, operates, and uses acreage amounting to at least 50 contiguous acres of bounded or fenced real property, as determined by the commissioner, which would be listed on the multi-sport complex's floorplan and could be used for contracted-for sporting events, group-type weddings, concerts, reunions, conferences, meetings, or other events;

(v) Lists the entire property from subparagraph (iv) of this paragraph and all adjoining buildings and structures on the multi-sport complex's floorplan which would comprise the licensed premises, and which would be authorized for the lawful sales, service, and consumption of alcoholic liquors, nonintoxicating beer, nonintoxicating craft beer, and hard cider throughout the licensed premises whether these activities were conducted in a building or structure or outdoors while on the multi-sport complex's licensed premises, as noted on the multi-sport complex's 38 CS for SB 1065 floorplan.

The licensee may sell alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer from a golf cart or food truck owned or leased by the licensee and also operated by the licensee when the golf cart or food truck is located on the multi-sport complex's licensed premises;

and (vi) Has an identified person, persons, or entity that has right, title, and ownership interest in the real property buildings and structures located on the proposed licensed premises;

(F) A coliseum or center that is open for various events including, but not limited to, musical concerts, bands, sporting events, monster trucks, combat sports, wrestling sports entertainment events, circuses, expos, hobby events, tradeshows, health events, reserved weddings, reunions, retreats, conventions, conferences, meetings, or other special events.

The applicant shall also:

(i) Maintain an enclosed coliseum or center venue with at least 50,000 square feet of event space primarily used for events where parties reserve the coliseum or center venue in advance of the event;

(ii) Operate a restaurant and full kitchen with ovens, as determined by the commissioner, on the licensed premises and be capable of serving freshly prepared food or meals to its stated members, guests, and patrons who will be attending events at the coliseum or center;

(iii) Own or lease, control, operate, and use acreage amounting to at least two contiguous acres of bounded or fenced real property, as determined by the commissioner, which would be listed on the coliseum or center's floorplan and could be used for contracted-for events, or a private fair and festival, as authorized by the commissioner per dual licensing requirements as set forth in §60-7-2a of this code;

(iv) List the entire property from subparagraph (iii) of this paragraph and all adjoining buildings and structures on the coliseum or center's floorplan comprising the licensed premises which would be authorized for the lawful sales, service, and consumption of alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer throughout the licensed premises whether these 39 CS for SB 1065 activities were conducted in a building or structure or outdoors while on coliseum or center's licensed premises;

and (v) Have an identified person, persons, or entity that has right, title, and ownership interest in the real property buildings and structures located on the proposed licensed premises;

(8) "Private Venue" means an applicant for a private club or a licensed private club that functions primarily as a bar, restaurant, wedding venue or barn, food truck, bakery, an alcohol manufacturer’s bar or restaurant, a farmer’s market, food court, restaurants that cater food and alcohol, or other establishments meeting the requirements set forth in this section for licensure, as determined by the commissioner, and operate as:

(A) A bakery that is a business "Private bakery" means an applicant for a private club or licensed private club license that has a primary function of operating a food preparation business that produces baked goods, including brownies, cookies, cupcakes, confections, muffins, breads, cakes, wedding cakes, and other baked goods where the applicant or licensee desires to sell baked goods infused with liquor, wine, or nonintoxicating beer or nonintoxicating craft beer, included:

(A) such as In the icing, syrup, drizzle, or some other topping;

(B), as an infusion where the alcohol is not processed or cooked out of the baked goods;, or (C) from an infusion packet containing alcohol no greater than 10 milliliters where the purchaser adds the alcohol.

The applicant or licensee may not sell liquor, wine, or nonintoxicating beer or nonintoxicating craft beer for on-premises or off-premises consumption.

The applicant or licensee may sell the baked goods with alcohol added as authorized for on-premises and off-premises consumption.

Further, the applicant or licensee shall:

(i) Have at least 50 members;

(ii) (i) Operate a kitchen that produces baked goods, as specified in this subdivision, including at least:

(I) A baking oven and a four-burner range or hot plate;

(II) A sink with hot and cold running water;

(III) A 17 cubic foot refrigerator or freezer, or some combination of a refrigerator and freezer which is not used for alcohol cold storage;

(IV) Baking utensils and pans, 40 CS for SB 1065 kitchen utensils, and other food consumption apparatus as determined by the commissioner;

and (V) Food fit for human consumption available to be served during all hours of operation on the licensed premises;

(iii) (ii) Maintain, at any one time, a food inventory capable of being prepared in the private bakery's kitchen.

In calculating the food inventory, the commissioner shall include bags of chips or similar products, microwavable food or meals, frozen meals, pre-packaged foods, baking items such as flour, sugar, icing, and other confectionary items, or canned prepared foods;

(iv) Use an age verification system approved by the commissioner for the purpose of verifying that persons under the age of 21 who are in the private bakery are not sold items containing alcoholic liquors, nonintoxicating beer or nonintoxicating craft beer, or wine.

A person under 21 years of age may enter the shop and purchase other items not containing alcoholic liquors;

and (v) Meet and be subject to all other private club requirements.

"Private cigar shop" means an applicant for a private club or licensed private club licensee that has a primary function of operating a cigar shop for sales of premium cigars for consumption on or off the licensed premises.

Where permitted by law, indoor on-premises cigar consumption is permitted with a limited food menu, which may be met by using a private caterer, for members and guests while the private club applicant or licensee is selling and serving liquor, wine, or nonintoxicating beer or nonintoxicating craft beer for on-premises consumption.

Further, the applicant or licensee shall:

(A) Have at least 50 members;

(B) Operate a cigar shop and bar with a kitchen, including at least:

(i) A two-burner hot plate, air fryer, or microwave oven;

(ii) a sink with hot and cold running water;

(iii) a 17 cubic foot refrigerator or freezer, or some combination of a refrigerator and freezer which is not used for alcohol cold storage;

(iv) kitchen utensils and other food consumption apparatus as determined by 41 CS for SB 1065 the commissioner;

and (v) food fit for human consumption available to be served during all hours of operation on the licensed premises;

(C) Maintain, at any one time, not less than a food inventory capable of being prepared in the private club bar's kitchen or have on hand at least $150 in food provided by a private caterer.

In calculating the food inventory, the commissioner shall include bags of chips or similar products, microwavable food or meals, frozen meals, pre-packaged foods, or canned prepared foods;

(D) Use an age verification system approved by the commissioner for the purpose of verifying that persons under the age of 21 who are in the private club bar are accompanied by a parent or legal guardian, and if a person under 21 years of age is not accompanied by a parent or legal guardian, refuse to admit that person as a guest;

and (E) Meet and be subject to all other private club requirements.

"Private caterer" means a licensed private club restaurant, private hotel, or private resort hotel authorized by the commissioner to cater and serve food and sell and serve alcoholic liquors, or non-intoxicating beer or non-intoxicating craft beer.

A private caterer shall purchase wine sold or served at a catering event from a wine distributor.

A private caterer shall purchase nonintoxicating beer and nonintoxicating craft beer sold or served at the catering event from a licensed beer distributor.

A private caterer shall purchase liquor from a retail liquor outlet authorized to sell in the market zone, where the catering event is held.

The private caterer or the persons or entity holding the catering event shall:

(A) Have at least 10 members and guests attending the catering event;

(B) Have obtained an open container waiver or have otherwise been approved by a municipality or county in which the event is being held;

(C) Operate a private club restaurant on a daily operating basis;

(D) Only use its employees, independent contractors, or volunteers to sell and serve alcoholic liquors and nonintoxicating beer or nonintoxicating craft beer who have received certified 42 CS for SB 1065 training in verifying the legal identification, the age of a purchasing person, and the signs of visible, noticeable, and physical intoxication;

(E) Provide to the commissioner, at least seven days before the event is to take place:

(i) The name and business address of the unlicensed private venue where the private caterer is to provide food and alcohol for a catering event;

(ii) The name of the owner or operator of the unlicensed private venue;

(iii) A copy of the contract or contracts between the private caterer, the person contracting with the caterer, and the unlicensed private venue;