SB 2601 — Alcoholic beverages; authorize certain distillers to sell their products at the distillery for off-premises consumption.

SB2601 (As Introduced)Passed the Senate) - 2018 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Senator(s) Chassaniol, Barnett, Blount, Carter, Dawkins, Dearing, Gollott, Jackson (11th), Jordan, Moran, Simmons (12th) Senate Bill 2601 (As Passed the Senate) AN ACT TO AMEND SECTION 67-1-51, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE ISSUANCE OF DISTILLERY RETAILER'S PERMITS UNDER THE LOCAL OPTION ALCOHOLIC BEVERAGE CONTROL LAW;

TO PROVIDE THAT THE HOLDER OF A DISTILLERY RETAILER'S PERMIT IS NOT REQUIRED TO PURCHASE THE ALCOHOLIC BEVERAGES AUTHORIZED TO BE SOLD BY THIS PARAGRAPH FROM THE DEPARTMENT'S LIQUOR DISTRIBUTION WAREHOUSE;

TO PROVIDE THAT THE HOLDER OF SUCH A PERMIT SHALL PAY TO THE DEPARTMENT ALL APPLICABLE TAXES;

TO AMEND SECTION 67-1-41, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO;

          (q)  Distillery Retailer's Permit.  The holder of a Class 1 manufacturer's permit may obtain a distillery retailer's permit.  A distillery retailer's permit shall authorize the holder thereof to sell at retail alcoholic beverages by the sealed and unopened bottle from a retail location at the distillery for off-premises consumption.  The holder may only sell product manufactured by the manufacturer at the distillery described in the permit.  The hours of sale shall be the same as those hours for package retailers under this chapter.  AThe distillery retailer's permit does not authorize the holder to sell alcoholic beverages not purchased from the department's liquor distribution center.  In addition to alcoholic beverages, the holder of a distillery retailer's permit mayis sellnot atrequired retailto promotionalpurchase products from the samealcoholic retailbeverages location,authorized includingto shirts,be hats, glasses, and other promotional products customarily sold by alcoholic beverage manufacturers.         (2)  Except as otherwise provided in subsection (4) of this section,paragraph retailfrom permittees may hold more than one (1) retail permit, at the discretiondepartment's ofliquor thedistribution department.warehouse;

however, if the holder does not purchase the alcoholic beverages from the department's liquor distribution warehouse, the holder shall pay to the department all taxes, fees and surcharges on the alcoholic beverages that are imposed upon the sale of alcoholic beverages shipped by the Alcoholic Beverage Control Division of the Department of Revenue.  In addition to alcoholic beverages, the holder of a distillery retailer's permit may sell at retail promotional products from the same retail location, including shirts, hats, glasses, and other promotional products customarily sold by alcoholic beverage manufacturers.         (2)  Except as otherwise provided in subsection (4) of this section, retail permittees may hold more than one (1) retail permit, at the discretion of the department.

     (2)(2)   (a) (a)  There is imposed and shall be collected from each permittee, except a common carrier, solicitor or a temporary permittee, by the department, an additional license tax equal to the amounts imposed under subsection (1) of this section for the privilege of doing business within any municipality or county in which the licensee is located.

                            (iii)  Any person who has paid the additional privilege license tax imposed by this paragraph, and whose permit is renewed, may add any unused fraction of Five Thousand Dollars ($5,000.00) purchases to the first Five Thousand Dollars ($5,000.00) purchases authorized by the renewal permit, and no additional license tax will be required until purchases exceed the sum of the two (2) figures.

     SECTION 4.  ThisSection act67-1-41, shallMississippi takeCode effectof and1972, beis inamended forceas fromfollows: and after July 1, 2018.

     67-1-41.  (1)  The * * *State Tax Commission department is hereby created a wholesale distributor and seller of alcoholic beverages, not including malt liquors, within the State of Mississippi.  It is granted the sole right to import and sell intoxicating liquors at wholesale within the state, and no person who is granted the right to sell, distribute or receive intoxicating liquors at retail shall purchase any intoxicating liquors from any source other than the * * *commission department except as authorized in subsections (4) and (9).  The * * *commission department may establish warehouses, purchase intoxicating liquors in such quantities and from such sources as it may deem desirable and sell the intoxicating liquors to authorized permittees within the state including, at the discretion of the * * *commission department, any retail distributors operating within any military post or qualified resort areas within the boundaries of the state, keeping a correct and accurate record of all such transactions and exercising such control over the distribution of alcoholic beverages as seem right and proper in keeping with the provisions or purposes of this chapter.

     (2)  No person for the purpose of sale shall manufacture, distill, brew, sell, possess, export, transport, distribute, warehouse, store, solicit, take orders for, bottle, rectify, blend, treat, mix or process any alcoholic beverage except in accordance with authority granted under this chapter, or as otherwise provided by law for native wines.

     (3)  No alcoholic beverage intended for sale or resale shall be imported, shipped or brought into this state for delivery to any person other than as provided in this chapter, or as otherwise provided by law for native wines.

     (4)  The * * *commission department may promulgate rules and regulations which authorize on-premises retailers to purchase limited amounts of alcoholic beverages from package retailers and for package retailers to purchase limited amounts of alcoholic beverages from other package retailers.  The * * *commission department shall develop and provide forms to be completed by the on-premises retailers and the package retailers verifying the transaction.  The completed forms shall be forwarded to the * * *commission department within a period of time prescribed by the * * *commission department.

     (5)  The * * *commission department may promulgate rules which authorize the holder of a package retailer's permit to permit individual retail purchasers of packages of alcoholic beverages to return, for exchange, credit or refund, limited amounts of original sealed and unopened packages of alcoholic beverages purchased by the individual from the package retailer.

     (6)  The * * *commission department shall maintain all forms to be completed by applicants necessary for licensure by the * * *commission department at all district offices of the * * *commission department.

     (7)  The * * *commission department may promulgate rules which authorize the manufacturer of an alcoholic beverage or wine to import, transport and furnish or give a sample of alcoholic beverages or wines to the holders of package retailer's permits, on-premises retailer's permits, native wine retailer's permits and temporary retailer's permits who have not previously purchased the brand of that manufacturer from the * * *commission department.  For each holder of the designated permits, the manufacturer may furnish not more than five hundred (500) milliliters of any brand of alcoholic beverage and not more than three (3) liters of any brand of wine.

     (8)  The * * *commission department may promulgate rules disallowing open product sampling of alcoholic beverages or wines by the holders of package retailer's permits and permitting open product sampling of alcoholic beverages by the holders of on-premises retailer's permits.  Permitted sample products shall be plainly identified "sample" and the actual sampling must occur in the presence of the manufacturer's representatives during the legal operating hours of on-premises retailers.

     (9)  The * * *commission department may promulgate rules and regulations that authorize the holder of a research permit to import and purchase limited amounts of alcoholic beverages from importers, wineries and distillers of alcoholic beverages or from the * * *commission department.  The * * *commission department shall develop and provide forms to be completed by the research permittee verifying each transaction.  The completed forms shall be forwarded to the * * *commission department within a period of time prescribed by the * * *commission department.  The records and inventory of alcoholic beverages shall be open to inspection at any time by the Director of the Alcoholic Beverage Control Division or any duly authorized agent.

     (10)  This section shall not apply to alcoholic beverages authorized to be sold by the holder of a distillery retailer's permit.

     SECTION 5.  This act shall take effect and be in force from and after July 1, 2018.