LCO No. 4577 1 of 23 General Assembly Raised Bill No. 7184 January Session, 2019 LCO No. 4577 Referred to Committee on GENERAL LAW Introduced by: (GL) AN ACT CONCERNING TH E LIQUOR CONTROL ACT. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 30-14a of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2019, and 2 applicable to new package store permits issued on and after said date): 3 A package store permit may be renewed by the person to whom it 4 was issued or by any person who is a transferee or purchaser of 5 premises operating under a package store permit and who meets the 6 requirements of this chapter concerning eligibility for a liquor permit. 7 Commencing June 8, 1986, the Department of Consumer Protection 8 may issue one package store permit for every [twenty-five hundred] 9 five thousand residents of a town as determined by the most recently 10 completed decennial census. The department may authorize the holder 11 of such permit to remove his permit premises to a location in another 12 town provided such removal complies with the provisions of this 13 chapter. 14 Sec. 2. (NEW) (Effective from passage) (a) The holder of a 15 Raised Bill No. 7184 LCO No. 4577 2 of 23 manufacturer permit for beer issued pursuant to subsection (b) of 16 section 30-16 of the general statutes, as amended by this act, the holder 17 of a manufacturer permit for cider issued pursuant to subsection (c) of 18 section 30-16 of the general statutes, as amended by this act, the holder 19 of a manufacturer permit for a farm winery issued pursuant to 20 subsection (e) of section 30-16 of the general statutes, as amended by 21 this act, the holder of a manufacturer permit for a brew pub issued 22 pursuant to subsection (g) of section 30-16 of the general statutes, as 23 amended by this act, or the holder of a manufacturer permit for beer 24 and brew pub issued pursuant to subsection (h) of section 30-16 of the 25 general statutes, as amended by this act, may conduct special event 26 catering on the permit premises, subject to regulations adopted 27 pursuant to subsection (b) of this section. A municipality may, by 28 ordinance or zoning regulation, prohibit any such special event 29 catering at premises within such town for which a manufacturer 30 permit for beer or a manufacturer permit for a farm winery has been 31 issued. 32 (b) The Department of Consumer Protection shall adopt regulations, 33 in accordance with the provisions of chapter 54 of the general statutes, 34 to implement the provisions of subsection (a) of this section. Such 35 regulations shall define "special event" and shall impose a fee of five 36 hundred dollars annually upon each permittee allowed to conduct 37 special event catering pursuant to subsection (a) of this section. 38 Sec. 3. Section 30-48a of the general statutes is repealed and the 39 following is substituted in lieu thereof (Effective July 1, 2019): 40 (a) No person, and no backer as defined in section 30-1, as amended 41 by this act, shall, except as provided in this section, acquire an interest 42 in more than four alcoholic beverage retail permits, except that on and 43 after July 1, 2016, such person or backer may acquire an interest in no 44 more than [five] ten alcoholic beverage retail permits, but nothing in 45 this section shall (1) require any such person who had, on June 8, 1981, 46 such interest in more than two such permits to surrender, dispose of or 47 release his or her interest in any such permit or permits nor shall it 48 Raised Bill No. 7184 LCO No. 4577 3 of 23 affect his or her right to continue to hold, use and renew such permits, 49 or (2) prohibit any such person who had, on June 8, 1981, such interest 50 in more than two such permits from transferring his or her interest in 51 such permits by inter vivos or testamentary disposition, including 52 living trusts, to his or her spouse or child, or such spouse's or child's 53 living trust or prohibit such spouse or child from accepting such a 54 transfer notwithstanding that such spouse or child may already hold 55 another permit issued under the provisions of this chapter. Any such 56 permit so transferred may be renewed by such transferee under the 57 provisions of section 30-14, as amended by this act. Except as provided 58 in subdivision (1) of this subsection, a person shall be deemed to 59 acquire an interest in a retail permit if an interest is owned by such 60 person, such person's spouse, children, partners, or an estate, trust, or 61 corporation controlled by such person or such person's spouse, 62 children, or any combination thereof. The provisions of this subsection 63 shall apply to any such interest without regard to whether such 64 interest is a controlling interest. For the purposes of this subsection, 65 "person" means (A) an individual, (B) a corporation or any subsidiary 66 of a corporation, or (C) any combination of corporations or individuals 67 any of whom, or any combination of whom, owns or controls, directly 68 or indirectly, more than five per cent of any entity which is a backer as 69 defined in said section 30-1, as amended by this act. 70 (b) A retail permit for the purposes of subsection (a) of this section 71 means a package store liquor permit or a druggist liquor permit. 72 (c) Membership in any organization which is or may become the 73 holder of a club permit shall not constitute acquisition of an interest in 74 a retail permit. 75 (d) Any person who violates any provision of this section or of any 76 regulation adopted pursuant to this section shall be fined not less than 77 fifty dollars nor more than two hundred fifty dollars and any permit 78 issued in violation of this section shall be revoked. 79 Sec. 4. Subsection (c) of section 30-68m of the general statutes is 80 Raised Bill No. 7184 LCO No. 4577 4 of 23 repealed and the following is substituted in lieu thereof (Effective July 81 1, 2019): 82 (c) Notwithstanding the provisions of subsection (b) of this section, 83 a retail permittee may sell [one] ten beer [item] items identified by [a 84 stock-keeping unit number or one item] brand and size and ten items 85 of alcoholic liquor other than beer identified by [a stock-keeping unit 86 number] brand and size below his or her cost each month, provided 87 the [item is] items are not sold at less than ninety per cent of such retail 88 permittee's cost. A retail permittee who intends to sell [an item] items 89 below cost pursuant to this subsection shall notify the Department of 90 Consumer Protection of such sale not later than the second day of the 91 month such [item] items will be offered for sale. 92 Sec. 5. Subdivision (6) of section 30-1 of the general statutes is 93 repealed and the following is substituted in lieu thereof (Effective July 94 1, 2019): 95 (6) (A) "Case price" means the price of a container of cardboard, 96 wood or other material, containing units of the same size [, brand, age 97 and proof] and class of alcoholic liquor, and (B) a case of alcoholic 98 liquor, other than beer, cordials, cocktails, wines and prepared mixed 99 drinks, shall be in the number and quantity, or fewer, with the 100 permission of the Commissioner of Consumer Protection, of units or 101 bottles as follows: (i) Six one thousand seven hundred fifty milliliter 102 bottles; (ii) twelve one liter bottles; (iii) twelve seven hundred fifty 103 milliliter bottles; (iv) twenty-four three hundred seventy-five milliliter 104 bottles; (v) forty-eight two hundred milliliter bottles; (vi) sixty one 105 hundred milliliter bottles; or (vii) one hundred twenty fifty milliliter 106 bottles, except a case of fifty milliliter bottles may be in a number and 107 quantity as originally configured, packaged and sold by the 108 manufacturer or out-of-state shipper prior to shipment, provided such 109 number of bottles does not exceed two hundred. The commissioner 110 shall not authorize fewer numbers or quantities of units or bottles as 111 specified in this subdivision for any one person or entity more than 112 four times in any calendar year. For purposes of this subdivision, 113 Raised Bill No. 7184 LCO No. 4577 5 of 23 "class" shall have the meaning specified in the 27 CFR 5.22, as 114 amended, for spirits, in the 27 CFR 4.21, as amended, for wine and in 115 the 27 CFR, as amended, for beer. 116 Sec. 6. Section 30-68l of the general statutes is repealed and the 117 following is substituted in lieu thereof (Effective July 1, 2019): 118 (a) No wholesaler permittee shall sell to any purchaser holding a 119 permit for the sale of alcoholic liquor for on or off premises 120 consumption at a price which is below such wholesaler permittee's 121 cost. For the purposes of this section, "cost" means: (1) On domestic 122 alcoholic liquor bottled in the state, the total of (A) the cost of all 123 ingredients, (B) all transportation charges from the point of origin to 124 the point of destination, (C) all applicable federal and state taxes, and 125 (D) the cost of containers, labels, caps, closures and all bottling charges 126 and labor; (2) on imported alcoholic liquor bottled in the state, the total 127 of (A) the invoice price from the supplier, (B) all other ingredients, (C) 128 the cost of duties, (D) all applicable federal and state taxes, (E) 129 insurance, (F) ocean freight and brokerage charges, (G) all 130 transportation charges, and (H) the cost of containers, labels, caps, 131 closures and all bottling charges and labor; (3) on domestic alcoholic 132 liquors not bottled in this state, the total of (A) the posted price from 133 the supplier to the wholesaler, (B) the cost of shipping or delivery 134 charges to the wholesaler's place of business which were paid by the 135 wholesaler in addition to the posted price, and (C) all applicable 136 federal and state taxes paid by the wholesaler in addition to the posted 137 price; (4) on imported alcoholic liquor not bottled in the state, the total 138 of (A) the posted price from the supplier, (B) the cost of duties, 139 insurance, ocean freight and brokerage charges and transportation 140 charges paid by the wholesaler in addition to the posted price, and (C) 141 all applicable federal and state taxes paid by the wholesaler in addition 142 to the posted price. The provisions of this section shall not apply to 143 sales of wine. 144 (b) Subject to prior approval from a manufacturer permittee or out-145 of-state shipper permittee, a wholesaler permittee may package and 146 Raised Bill No. 7184 LCO No. 4577 6 of 23 sell to a retail permittee a nonuniform case, containing bottles only of 147 one class of alcoholic liquor, if the wholesaler holds the exclusive 148 rights to all bottles in such nonuniform case. A wholesaler who does 149 not hold exclusive rights to a given brand trademark may sell to a 150 retail permittee a nonuniform case containing bottles only of one class 151 of alcoholic liquor, provided all of the bottles in such nonuniform case 152 are available to all nonexclusive wholesalers who also have rights to 153 the given brand trademarks. 154 Sec. 7. Section 30-63 of the general statutes is repealed and the 155 following is substituted in lieu thereof (Effective July 1, 2019): 156 (a) No holder of any manufacturer, wholesaler or out-of-state 157 shipper's permit shall ship, transport or deliver within this state, or sell 158 or offer for sale, any alcoholic liquors, except for beer manufactured by 159 a permittee in this state and sold for consumption only on the 160 permittee's premises, unless the name of the brand, trade name or 161 other distinctive characteristic by which such alcoholic liquors are 162 bought and sold, the name and address of the manufacturer thereof 163 and the name and address of each wholesaler permittee who is 164 authorized by the manufacturer or his authorized representative to sell 165 such alcoholic liquors are registered with the Department of Consumer 166 Protection and until such brand, trade name or other distinctive 167 characteristic has been approved by the department. Such registration 168 shall be valid for a period of three years. The fee for such registration, 169 or renewal thereof, shall be two hundred dollars for out-of-state 170 shippers and fifteen dollars for Connecticut manufacturers for each 171 brand so registered, payable by the manufacturer or such 172 manufacturer's authorized representative when such liquors are 173 manufactured in the United States and by the importer or such 174 importer's authorized representative when such liquors are imported 175 into the United States. The department shall not approve the brand 176 registration of any fortified wine, as defined in section 12-433, which is 177 labeled, packaged or canned so as to appear to be a wine or liquor 178 cooler, as defined in section 12-433. 179 Raised Bill No. 7184 LCO No. 4577 7 of 23 (b) No manufacturer, wholesaler or out-of-state shipper permittee 180 shall discriminate in any manner in price discounts between one 181 permittee and another on sales or purchases of alcoholic liquors 182 bearing the same brand or trade name and of like age, size and quality, 183 nor shall such manufacturer, wholesaler or out-of-state shipper 184 permittee allow in any form any discount, rebate, free goods, 185 allowance or other inducement for the purpose of making sales or 186 purchases. Nothing in this subsection shall be construed to prohibit 187 beer manufacturers, beer wholesalers or beer out-of-state shipper 188 permittees from differentiating in the manner in which their products 189 are packaged on the basis of on-site or off-site consumption. 190 (c) For alcoholic liquor other than beer, each manufacturer, 191 wholesaler and out-of-state shipper permittee shall post with the 192 department, on a monthly basis, the bottle, can and case price of any 193 brand of goods offered for sale in Connecticut, which price when so 194 posted shall be the controlling price for such manufacturer, wholesaler 195 or out-of-state permittee for the month following such posting. On and 196 after July 1, 2005, for beer, each manufacturer, wholesaler and out-of-197 state shipper permittee shall post with the department, on a monthly 198 basis, the bottle, can and case price, and the price per keg or barrel or 199 fractional unit thereof for any brand of goods offered for sale in 200 Connecticut which price when so posted shall be the controlling price 201 for such brand of goods offered for sale in this state for the month 202 following such posting. Such manufacturer, wholesaler and out-of-203 state shipper permittee may also post additional prices for such bottle, 204 can, case, keg or barrel or fractional unit thereof for a specified portion 205 of the following month which prices when so posted shall be the 206 controlling prices for such bottle, can, case, keg or barrel or fractional 207 unit thereof for such specified portion of the following month. Notice 208 of all manufacturer, wholesaler and out-of-state shipper permittee 209 prices shall be given to permittee purchasers by direct mail, Internet 210 web site or advertising in a trade publication having circulation among 211 the retail permittees except a wholesaler permittee may give such 212 notice by hand delivery. Price postings with the department setting 213 Raised Bill No. 7184 LCO No. 4577 8 of 23 forth wholesale prices to retailers shall be available for inspection 214 during regular business hours at the offices of the department by 215 manufacturers and wholesalers until three o'clock p.m. of the first 216 business day after the last day for posting prices. A manufacturer or 217 wholesaler may amend such manufacturer's or wholesaler's posted 218 price for any month to meet a lower price posted by another 219 manufacturer or wholesaler with respect to alcoholic liquor bearing the 220 same brand or trade name and of like age, vintage, quality and unit 221 container size; provided that any such amended price posting shall be 222 filed before three o'clock p.m. of the fourth business day after the last 223 day for posting prices; and provided further such amended posting 224 shall not set forth prices lower than those being met. Any 225 manufacturer or wholesaler posting an amended price shall, at the 226 time of posting, identify in writing the specific posting being met. On 227 and after July 1, 2005, all wholesaler postings, other than for beer, for 228 the following month shall be provided to retail permittees not later 229 than the twenty-seventh day of the month prior to such posting. All 230 wholesaler postings for beer shall be provided to retail permittees not 231 later than the twentieth day of the month prior to such posting. 232 (d) Monthly price postings for a nonuniform case of alcoholic liquor 233 shall contain the bottle price for each item contained in the nonuniform 234 case, the unit price and the case price. The bottle price posted for a 235 nonuniform case shall be equal to the bottle price posted for the same 236 month for a case containing one class and brand of alcoholic liquor. 237 Sec. 8. (NEW) (Effective July 1, 2019) A manufacturer permit for 238 mead shall be in all respects the same as a manufacturer permit issued 239 pursuant to subsection (a) of section 30-16 of the general statutes, as 240 amended by this act, except that the scope of operations of the holder 241 shall be limited to mead, but shall permit the storage of mead in any 242 part of the state. Such permit shall also authorize the offering and 243 tasting, on the premises of the permittee, of free samples of mead 244 brewed on such premises and the selling at retail from the premises of 245 sealed bottles or other sealed containers of such mead for consumption 246 off the premises. The offering and tasting may be limited to visitors 247 Raised Bill No. 7184 LCO No. 4577 9 of 23 who have attended a tour of the premises of the permittee. Such selling 248 at retail from the premises of sealed bottles or other sealed containers 249 shall comply with the provisions of subsection (d) of section 30-91 of 250 the general statutes for manufacturer permits for beer. The annual fee 251 for a manufacturer permit for mead shall be five hundred dollars. 252 Sec. 9. Section 30-16 of the general statutes is repealed and the 253 following is substituted in lieu thereof (Effective July 1, 2019): 254 (a) A manufacturer permit shall allow the manufacture of alcoholic 255 liquor and the storage, bottling and wholesale distribution and sale of 256 alcoholic liquor manufactured or bottled to permittees in this state and 257 without the state as may be permitted by law; but no such permit shall 258 be granted unless the place or the plan of the place of manufacture has 259 received the approval of the Department of Consumer Protection. The 260 holder of a manufacturer permit who produces less than [twenty-five] 261 one hundred thousand gallons of alcoholic liquor in a calendar year 262 may sell at retail from the premises sealed bottles or other sealed 263 containers of alcoholic liquor manufactured on the premises for 264 consumption off the premises, provided such holder shall not sell to 265 any one consumer more than one and one-half liters of alcoholic liquor 266 per day nor more than five gallons of alcoholic liquor in any two-267 month period. Retail sales by a holder of a manufacturer permit shall 268 occur only on the days and times permitted under subsection (d) of 269 section 30-91. A holder of a manufacturer permit, alone or in 270 combination with any parent or subsidiary business or related or 271 affiliated party, who sells more than ten thousand gallons of alcoholic 272 liquor in any calendar year may not sell alcoholic liquor at wholesale 273 to retail permittees within this state. Such permit shall also authorize 274 the offering and tasting, on the premises of the permittee, of free 275 samples of spirits distilled on the premises. Tastings shall not exceed 276 two ounces per patron per day and shall not be allowed on such 277 premises on Sunday before eleven o'clock a.m. and after eight o'clock 278 p.m. and on any other day before ten o'clock a.m. and after eight 279 o'clock p.m. No tastings shall be offered to or allowed to be consumed 280 by any minor or intoxicated person. A holder of a manufacturer permit 281 Raised Bill No. 7184 LCO No. 4577 10 of 23 may apply for and shall receive an out-of-state shipper's permit for 282 manufacturing plants and warehouse locations outside the state 283 owned by such manufacturer or a subsidiary corporation thereof, at 284 least eighty-five per cent of the voting stock of which is owned by such 285 manufacturer, to bring into any of its plants or warehouses in the state 286 alcoholic liquors for reprocessing, repackaging, reshipment or sale 287 either (1) within the state to wholesaler permittees not owned or 288 controlled by such manufacturer, or (2) outside the state. The annual 289 fee for a manufacturer permit shall be one thousand eight hundred 290 fifty dollars. 291 (b) A manufacturer permit for beer shall be in all respects the same 292 as a manufacturer permit, except that the scope of operations of the 293 holder shall be limited to beer, but shall permit the storage of beer in 294 any part of the state. Such permit shall also authorize the offering and 295 tasting, on the premises of the permittee, of free samples of beer 296 brewed on such premises and the selling at retail from the premises of 297 sealed bottles or other sealed containers of such beer for consumption 298 off the premises. The offering and tasting may be limited to visitors 299 who have attended a tour of the premises of the permittee. Such selling 300 at retail from the premises of sealed bottles or other sealed containers 301 shall comply with the provisions of subsection (d) of section 30-91. 302 [and shall permit not more than nine liters of beer to be sold to any 303 person on any day on which such sale is authorized under the 304 provisions of subsection (d) of section 30-91.] The annual fee for a 305 manufacturer permit for beer shall be one thousand dollars. 306 (c) A manufacturer permit for cider not exceeding six per cent 307 alcohol by volume and apple wine not exceeding fifteen per cent 308 alcohol by volume shall allow (1) the manufacture, storage, bottling 309 and wholesale distribution and sale at retail of such cider and apple 310 wine to permittees and nonpermittees in this state as may be permitted 311 by law; but no such permit shall be issued unless the place or the plan 312 of the place of manufacture has received the approval of the 313 department; (2) the sale and shipment by the holder of such permit of 314 such cider and such apple wine to persons outside the state and to 315 Raised Bill No. 7184 LCO No. 4577 11 of 23 consumers in this state in the same manner and subject to the same 316 conditions as such sale and shipment is permitted for wine by a farm 317 winery manufacturer permittee pursuant to subsection (e) of this 318 section; [and] (3) the offering and tasting, on the premises of the 319 permittee, of free samples of cider and apple wine manufactured on 320 such premises; and (4) the sale at retail on the premises of such cider 321 and apple wine by the glass and bottle to visitors on the premises for 322 consumption on the premises. Tastings shall not exceed two ounces 323 per patron and shall not be allowed on such premises on Sunday 324 before eleven o'clock a.m. and after eight o'clock p.m. and on any other 325 day before ten o'clock a.m. and after eight o'clock p.m. No tasting shall 326 be offered to or allowed to be consumed by any minor or intoxicated 327 person. Offerings and tastings may be limited to visitors who have 328 attended a tour of the premises of the permittee. The annual fee for a 329 manufacturer permit for cider shall be two hundred dollars. 330 (d) A manufacturer permit for apple brandy and eau-de-vie shall be 331 in all respects the same as a manufacturer permit, except that the scope 332 of operations of the holder shall be limited to apple brandy or eau-de-333 vie, or both. The annual fee for a manufacturer permit for apple 334 brandy and eau-de-vie shall be four hundred dollars. 335 (e) (1) A manufacturer permit for a farm winery shall be in all 336 respects the same as a manufacturer permit, except that the scope of 337 operations of the holder shall be limited to wine and brandies distilled 338 from grape products or other fruit products, including grappa and 339 eau-de-vie. As used in this section, "farm winery" means any place or 340 premises that is located on a farm in the state in which wine is 341 manufactured and sold. 342 (2) Such permit shall, at the single principal premises of the farm 343 winery, authorize (A) the sale in bulk by the holder thereof from the 344 premises where the products are manufactured pursuant to such 345 permit; (B) as to a manufacturer who produces one hundred thousand 346 gallons of wine or less per year, the sale and shipment by the holder 347 thereof to a retailer of wine manufactured by the farm winery 348 Raised Bill No. 7184 LCO No. 4577 12 of 23 permittee in the original sealed containers of not more than fifteen 349 gallons per container; (C) the sale and shipment by the holder thereof 350 of wine manufactured by the farm winery permittee to persons outside 351 the state; (D) the offering and tasting of free samples of such wine or 352 brandy, dispensed out of bottles or containers having capacities of not 353 more than two gallons per bottle or container, to visitors and 354 prospective retail customers for consumption on the premises of the 355 farm winery permittee; (E) the sale at retail from the premises of sealed 356 bottles or other sealed containers of such wine or brandy for 357 consumption off the premises; (F) the sale at retail from the premises of 358 wine or brandy or beer manufactured by the holder of a permit issued 359 pursuant to subsection (b), (f), (g) or (h) of this section by the glass and 360 bottle to visitors on the premises of the farm winery permittee for 361 consumption on the premises; and (G) subject to the provisions of 362 subdivision (3) of this subsection, the sale and delivery or shipment of 363 wine manufactured by the permittee directly to a consumer in this 364 state. Notwithstanding the provisions of subparagraphs (D), (E) and 365 (F) of this subdivision, a town may, by ordinance or zoning regulation, 366 prohibit any such offering, tasting or selling at retail at premises within 367 such town for which a manufacturer permit for a farm winery has been 368 issued. 369 (3) A permittee, when selling and shipping wine directly to a 370 consumer in this state, shall: (A) Ensure that the shipping labels on all 371 containers of wine shipped directly to a consumer in this state 372 conspicuously state the following: "CONTAINS ALCOHOL —373 SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR 374 DELIVERY"; (B) obtain the signature of a person age twenty-one or 375 older at the address prior to delivery, after requiring the signer to 376 demonstrate that he or she is age twenty-one or older by providing a 377 valid motor vehicle operator's license or a valid identity card described 378 in section 1-1h; (C) not ship more than five gallons of wine in any two-379 month period to any person in this state; (D) pay, to the Department of 380 Revenue Services, all sales taxes and alcoholic beverage taxes due 381 under chapters 219 and 220 on sales of wine to consumers in this state, 382 Raised Bill No. 7184 LCO No. 4577 13 of 23 and file, with said department, all sales tax returns and alcoholic 383 beverage tax returns relating to such sales; (E) report to the 384 Department of Consumer Protection a separate and complete record of 385 all sales and shipments to consumers in the state, on a ledger sheet or 386 similar form which readily presents a chronological account of such 387 permittee's dealings with each such consumer; (F) not ship to any 388 address in the state where the sale of alcoholic liquor is prohibited by 389 local option pursuant to section 30-9; and (G) hold an in-state 390 transporter's permit pursuant to section 30-19f or make any such 391 shipment through the use of a person who holds such an in-state 392 transporter's permit. 393 (4) No licensed farm winery may sell any such wine or brandy not 394 manufactured by such winery, except a licensed farm winery may sell 395 from the premises (A) wine manufactured by another farm winery 396 located in this state, and (B) brandy manufactured from fruit harvested 397 in this state and distilled off the premises in this state. 398 (5) The farm winery permittee shall grow on the premises of the 399 farm winery or on property under the same ownership and control of 400 said permittee or leased by the backer of a farm winery permit or by 401 said permittee within the farm winery's principal state an average crop 402 of fruit equal to not less than twenty-five per cent of the fruit used in 403 the manufacture of the farm winery permittee's wine. An average crop 404 shall be defined each year as the average yield of the farm winery 405 permittee's two largest annual crops out of the preceding five years, 406 except that during the first seven years from the date of issuance of a 407 farm winery permit, an average crop shall be defined as three tons of 408 grapes for each acre of vineyard farmed by the farm winery permittee. 409 Such seven-year period shall not begin anew if the property for which 410 the farm winery permit is held is transferred or sold during such 411 seven-year period. In the event the farm winery consists of more than 412 one property, the aggregate acreage of the farm winery shall not be 413 less than five acres. 414 (6) A holder of a manufacturer permit for a farm winery, when 415 Raised Bill No. 7184 LCO No. 4577 14 of 23 advertising or offering wine for direct shipment to a consumer in this 416 state via the Internet or any other on-line computer network, shall 417 clearly and conspicuously state such liquor permit number in its 418 advertising. 419 (7) A holder of a manufacturer permit for a farm winery may sell 420 and offer free tastings of wine manufactured from such winery at a 421 farmers' market, as defined in section 22-6r, that is operated as a 422 nonprofit enterprise or association, provided such farmers' market 423 invites such holder to sell wine at such farmers' market and such 424 holder has a farmers' market wine sales permit issued by the 425 Commissioner of Consumer Protection in accordance with the 426 provisions of subsection (a) of section 30-37o. 427 (8) The annual fee for a manufacturer permit for a farm winery shall 428 be three hundred dollars. 429 (f) (1) A manufacturer permit for a farm brewery shall be in all 430 respects the same as a manufacturer permit, except that the scope of 431 operations of the holder shall be limited to the production of not more 432 than seventy-five thousand gallons of beer in a calendar year. As used 433 in this section, "farm brewery" means any place or premises that is 434 located on a farm in the state in which beer is manufactured and sold. 435 (2) Such permit shall, at the single principal premises of the farm 436 brewery, authorize (A) the sale of sealed bottles or other sealed 437 containers of beer brewed on such premises to the holder of a 438 wholesaler permit issued pursuant to section 30-17; (B) the offering 439 and tasting of free samples of beer manufactured by the farm brewery 440 permittee, dispensed out of bottles or other sealed containers to 441 visitors and prospective retail customers for consumption on the 442 premises of the farm brewery permittee; (C) the sale at retail from the 443 premises of not more than nine liters of such beer to any person per 444 day, in sealed bottles or other sealed containers, for consumption off 445 the premises; and (D) the sale at retail from the premises of beer or of 446 wine manufactured by the holder of a permit issued pursuant to 447 Raised Bill No. 7184 LCO No. 4577 15 of 23 subsection (e) of this section by the glass and bottle to visitors on the 448 premises of the farm brewery permittee for consumption on the 449 premises. Notwithstanding the provisions of subparagraphs (A) to (D), 450 inclusive, of this subdivision, a town may, by ordinance or zoning 451 regulation, prohibit any such offering, tasting or selling at retail at 452 premises within such town for which a manufacturer permit for a farm 453 brewery has been issued. 454 (3) The farm brewery permittee shall use not less than twenty-five 455 per cent of a combination of hops, barley, cereal grains, honey, flowers 456 or other fermentables grown or malted within the state of Connecticut 457 in the manufacture of the farm brewery permittee's beer for the first 458 year of issuance for any such permit and not less than fifty per cent of 459 such hops, barley, cereal grains, honey, flowers or other fermentables 460 in the manufacture of the farm brewery permittee's beer for the second 461 and any subsequent year of issuance for any such permit. Any such 462 beer may be advertised and sold by the farm brewery permittee as 463 "Connecticut Craft Beer". 464 (4) A holder of a manufacturer permit for a farm brewery may sell 465 beer manufactured from such brewery at a farmers' market, as defined 466 in section 22-6r, that is operated as a nonprofit enterprise or 467 association, provided such farmers' market invites such holder to sell 468 beer at such farmers' market and such holder has a farmers' market 469 beer sales permit issued by the Commissioner of Consumer Protection 470 in accordance with the provisions of subsection (a) of section 30-37r. 471 (5) The annual fee for a manufacturer permit for a farm brewery 472 shall be three hundred dollars. 473 (g) A manufacturer permit for a brew pub shall allow: (1) The 474 manufacture, storage and bottling of beer, (2) the retail sale of alcoholic 475 liquor, including wine manufactured by the holder of a permit issued 476 pursuant to subsection (e) of this section, to be consumed on the 477 premises with or without the sale of food, (3) the selling at retail from 478 the premises of sealed bottles or other sealed containers of beer brewed 479 Raised Bill No. 7184 LCO No. 4577 16 of 23 on such premises for consumption off the premises, and (4) the sale of 480 sealed bottles or other sealed containers of beer brewed on such 481 premises to the holder of a wholesaler permit issued pursuant to 482 subsection (b) of section 30-17, provided that the holder of a 483 manufacturer permit for a brew pub produces at least five thousand 484 gallons of beer on the premises annually. Such selling at retail from the 485 premises of sealed bottles or other sealed containers shall comply with 486 the provisions of subsection (d) of section 30-91 and shall permit not 487 more than nine liters of beer to be sold to any person on any day on 488 which such sale is authorized under the provisions of subsection (d) of 489 section 30-91. The annual fee for a manufacturer permit for a brew pub 490 shall be three hundred dollars. 491 (h) A manufacturer permit for beer and brew pub shall be in all 492 respects the same as a manufacturer permit for beer, as defined in 493 subsection (b) of this section, and shall allow those additional 494 permissible uses specified in the manufacturer permit for a brew pub, 495 as defined in subsection (g) of this section, provided the holder of a 496 manufacturer permit for beer and brew pub produces at least five 497 thousand gallons of beer on the premises annually. The annual fee for 498 a manufacturer permit for beer and brew pub shall be one thousand 499 five hundred dollars. 500 (i) (1) A manufacturer permit for a farm distillery shall be in all 501 respects the same as a manufacturer permit, except that the scope of 502 operations of the holder shall be limited to the production of not more 503 than ten thousand gallons per calendar year of distilled alcohol or 504 spirits including, but not limited to, whiskey, gin, vodka and rum. As 505 used in this section, "farm distillery" means any place or premises that 506 is located on a farm in the state in which distilled spirits or alcohol are 507 manufactured and sold. 508 (2) Such permit shall, at the single principal premises of the farm 509 distillery, authorize (A) the sale in bulk by the holder thereof from the 510 premises where the products are manufactured pursuant to such 511 permit; (B) the sale and shipment by the holder thereof to a retailer of 512 Raised Bill No. 7184 LCO No. 4577 17 of 23 distilled alcohol or spirits manufactured by the farm distillery 513 permittee in the original sealed containers of not more than fifteen 514 gallons per container; (C) the offering and tasting of free samples of 515 such distilled alcohol or spirits, in amounts not to exceed two ounces 516 per day per person, to visitors and prospective retail customers for 517 consumption on the premises of the farm distillery permittee; and (D) 518 the sale at retail from the premises of sealed bottles or other sealed 519 containers, in amounts not to exceed four and one-half liters per 520 customer per day, of such distilled alcohol or spirits for consumption 521 off the premises. Notwithstanding the provisions of subparagraphs (C) 522 and (D) of this subdivision, a town may, by ordinance or zoning 523 regulation, prohibit any such offering, tasting or selling at retail at 524 premises within such town for which a manufacturer permit for a farm 525 distillery has been issued. 526 (3) No licensed farm distillery may sell any such distilled alcohol or 527 spirits not manufactured by such distillery. 528 (4) The farm distillery permittee shall grow on the premises of the 529 farm distillery or on property under the same ownership and control 530 of said permittee or leased by the backer of a farm distillery permit or 531 by said permittee within the farm distillery's principal state an average 532 crop of fruit or crops equal to not less than twenty-five per cent of the 533 fruit or crops used in the manufacture of the farm distillery permittee's 534 distilled alcohol or spirits. An average crop shall be defined each year 535 as the average yield of the farm distillery permittee's two largest 536 annual crops out of the preceding five years. In the event the farm 537 distillery consists of more than one property, the aggregate acreage of 538 the farm distillery shall not be less than five acres. 539 (5) The annual fee for a manufacturer permit for a farm distillery 540 shall be three hundred dollars. 541 Sec. 10. Section 30-18a of the general statutes is repealed and the 542 following is substituted in lieu thereof (Effective July 1, 2019): 543 (a) (1) An out-of-state winery shipper's permit for wine shall allow 544 Raised Bill No. 7184 LCO No. 4577 18 of 23 the sale of wine to manufacturer and wholesaler permittees in this 545 state as permitted by law and for those shippers that produce not more 546 than one hundred thousand gallons of wine per year, the sale and 547 shipment by the holder thereof to a retailer of wine manufactured by 548 such permittee in the original sealed containers of not more than 549 fifteen gallons per container. For purposes of this section, "wine" shall 550 include cider not exceeding six per cent alcohol by volume and apple 551 wine not exceeding fifteen per cent alcohol by volume. 552 (2) An out-of-state retailer shipper's permit for wine shall allow the 553 sale and shipment of wine directly to a consumer in this state. 554 (b) Subject to the provisions of this subsection, [an out-of-state 555 winery shipper's permit for wine] the permits under subsection (a) of 556 this section shall allow the sale and delivery or shipment of wine 557 manufactured or sold by the permittee directly to a consumer in this 558 state. Such permittee, when selling and shipping wine directly to a 559 consumer in this state, shall: (1) Ensure that the shipping labels on all 560 containers of wine shipped directly to a consumer in this state 561 conspicuously state the following: "CONTAINS ALCOHOL —562 SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR 563 DELIVERY"; (2) obtain the signature of a person age twenty-one or 564 older at the address prior to delivery, after requiring the signer to 565 demonstrate that he or she is age twenty-one or older by providing a 566 valid motor vehicle operator's license or a valid identity card described 567 in section 1-1h; (3) not ship more than five gallons of wine in any two-568 month period to any person in this state and not ship any wine until 569 such permittee is registered, with respect to the permittee's sales of 570 wine to consumers in this state, for purposes of the taxes imposed 571 under chapters 219 and 220, with the Department of Revenue Services; 572 (4) pay, to the Department of Revenue Services, all sales taxes and 573 alcoholic beverage taxes due under chapters 219 and 220 on sales of 574 wine to consumers in this state, and file, with said department, all sales 575 tax returns and alcoholic beverage tax returns relating to such sales, 576 with the amount of such taxes to be calculated as if the sale were in this 577 state at the location where delivery is made; (5) report to the 578 Raised Bill No. 7184 LCO No. 4577 19 of 23 Department of Consumer Protection a separate and complete record of 579 all sales and shipments to consumers in the state, on a ledger sheet or 580 similar form which readily presents a chronological account of such 581 permittee's dealings with each such consumer; (6) permit the 582 Department of Consumer Protection and Department of Revenue 583 Services, separately or jointly, to perform an audit of the permittee's 584 records upon request; (7) not ship to any address in the state where the 585 sale of alcoholic liquor is prohibited by local option pursuant to section 586 30-9; (8) hold an in-state transporter's permit pursuant to section 30-19f 587 or make any such shipment through the use of a person who holds 588 such an in-state transporter's permit; and (9) execute a written consent 589 to the jurisdiction of this state, its agencies and instrumentalities and 590 the courts of this state concerning the enforcement of this section and 591 any related laws, rules, or regulations, including tax laws, rules or 592 regulations. 593 (c) The Department of Consumer Protection, in consultation with 594 the Department of Revenue Services, may adopt regulations in 595 accordance with the provisions of chapter 54 to assure compliance 596 with the provisions of subsection (b) of this section. 597 (d) A holder of [an out-of-state winery shipper's permit for wine] a 598 permit under subsection (a) of this section, when advertising or 599 offering wine for direct shipment to a consumer in this state via the 600 Internet or any other on-line computer network, shall clearly and 601 conspicuously state such liquor permit number in its advertising. 602 (e) (1) For purposes of chapter 219, the holder of [an out-of-state 603 winery shipper's permit for wine] a permit under subsection (a) of this 604 section, when shipping wine directly to a consumer in this state, shall 605 be deemed to be a retailer engaged in business in this state as defined 606 in chapter 219 and shall be required to be issued a seller's permit 607 pursuant to chapter 219. 608 (2) For purposes of chapter 220, the holder of [an out-of-state winery 609 shipper's permit for wine] a permit under subsection (a) of this section, 610 Raised Bill No. 7184 LCO No. 4577 20 of 23 when shipping wine directly to a consumer in this state, shall be 611 deemed to be a distributor as defined in chapter 220 and shall be 612 required to be licensed pursuant to chapter 220. 613 (f) Any person who applies for an out-of-state winery shipper's 614 permit for wine or for the renewal of such permit shall furnish an 615 affidavit to the Department of Consumer Protection, in such form as 616 may be prescribed by the department, affirming whether the out-of-617 state winery that is the subject of such permit produced more than one 618 hundred thousand gallons of wine during the most recently completed 619 calendar year. 620 (g) The annual fee for [an out-of-state winery shipper's permit for 621 wine] a permit under subsection (a) of this section shall be three 622 hundred fifteen dollars. 623 (h) As used in this section, "out-of-state" means any state other than 624 Connecticut, any territory or possession of the United States, the 625 District of Columbia or the Commonwealth of Puerto Rico, but does 626 not include any foreign country. 627 Sec. 11. (NEW) (Effective July 1, 2019) Notwithstanding the 628 provisions of section 30-68m of the general statutes, as amended by 629 this act, the holder of a package store permit issued pursuant to section 630 30-20 of the general statutes may ship alcoholic liquor to a consumer 631 located out of state, subject to all applicable laws of the jurisdiction in 632 which such consumer is located. As used in this section, "out of state" 633 means any state other than Connecticut, any territory or possession of 634 the United States, the District of Columbia or the Commonwealth of 635 Puerto Rico, but does not include any foreign country. 636 Sec. 12. Section 30-6a of the general statutes is repealed and the 637 following is substituted in lieu thereof (Effective July 1, 2019): 638 (a) The Department of Consumer Protection may adopt in 639 accordance with the provisions of chapter 54 all necessary regulations, 640 subject to the provisions of subsection (c) of this section, to: (1) Carry 641 Raised Bill No. 7184 LCO No. 4577 21 of 23 out, enforce and prevent violation of the provisions of this chapter, (2) 642 inspect permit premises, (3) ensure sanitary conditions, (4) ensure 643 proper, safe and orderly conduct of permit premises, and (5) protect 644 the public against fraud or overcharge. 645 (b) More specifically, with respect to part V of this chapter, the 646 Department of Consumer Protection may adopt in accordance with the 647 provisions of chapter 54 regulations that are necessary to (1) carry out 648 the purposes of section 30-64 and prevent the circumvention thereof by 649 the offering or giving of any rebate, allowance [, free goods,] or 650 discount [or any other thing or service of value] for alcoholic liquor; (2) 651 permit the withdrawal of, an addition to, a deletion from or an 652 amendment of any schedule, or a modification of prices therein, when 653 not inconsistent with the purposes of said section 30-64, whenever 654 necessary to avoid practical difficulties or unnecessary hardships to 655 any permittee affected by said section 30-64 or because of acts or 656 circumstances beyond the control of such permittee and under such 657 terms and conditions as are necessary to carry out the purposes of said 658 section 30-64; (3) permit the sale by a retailer of a brand of alcoholic 659 liquor or wine for which a schedule of suggested consumer resale 660 prices has not been and cannot be filed, whenever necessary to avoid 661 practical difficulties or unnecessary hardships to any permittee 662 affected by said section or because of acts or circumstances beyond the 663 control of such permittee, and under such terms and conditions as are 664 necessary to carry out the purposes of said section 30-64; (4) subject to 665 the provisions of section 30-63e, permit the closeout of a brand for the 666 purpose of discontinuing its sale, under such terms and conditions as 667 are necessary to carry out the purposes of said section 30-64; (5) carry 668 out the purposes of sections 30-68k to 30-68m, inclusive, and section 669 30-76a and prevent their circumvention; (6) on verified application, 670 and for good cause shown, permit any adjustment or change of any 671 item on the schedule required to be filed under section 30-63, as 672 amended by this act, and said section 30-64; and (7) permit the sale at a 673 price which is less than cost by a supplier, wholesaler or retailer for 674 any item of alcoholic liquor, except beer, that is damaged or 675 Raised Bill No. 7184 LCO No. 4577 22 of 23 deteriorated in quality, or, subject to the provisions of section 30-63f, 676 permit the closeout of a brand or size for the purpose of discontinuing 677 its sale, under such terms and conditions as are necessary to carry out 678 the purposes of sections 30-68k to 30-68m, inclusive, and section 30-679 76a. 680 (c) The department shall not adopt any regulation: (1) Requiring 681 prior approval of alterations or changes in the interior or exterior of 682 permit premises; (2) requiring prior approval for live entertainment or 683 the installation of amusement devices or games; (3) requiring 684 registration of employees or agents of permittees; (4) requiring the 685 presence of retail permittees on permit premises during hours of sale 686 or prohibiting employment of such permittees in another occupation 687 or business except as provided in section 30-45; [or] (5) establishing a 688 mandated minimum price above which a permittee must sell; (6) 689 prohibiting a package store permittee from providing customers with 690 promotional items and novelties to promote or advertise the package 691 store; or (7) prohibiting a package store permittee from offering rebates 692 or discounts on goods other than alcoholic liquor sold by such 693 permittee on the permit premises. 694 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2019, and applicable to new package store permits issued on and after said date 30-14a Sec. 2 from passage New section Sec. 3 July 1, 2019 30-48a Sec. 4 July 1, 2019 30-68m(c) Sec. 5 July 1, 2019 30-1(6) Sec. 6 July 1, 2019 30-68l Sec. 7 July 1, 2019 30-63 Sec. 8 July 1, 2019 New section Sec. 9 July 1, 2019 30-16 Sec. 10 July 1, 2019 30-18a Sec. 11 July 1, 2019 New section Raised Bill No. 7184 LCO No. 4577 23 of 23 Sec. 12 July 1, 2019 30-6a Statement of Purpose: To make changes to the Liquor Control Act. [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.]