LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184-R01- HB.docx 1 of 20 General Assembly Substitute Bill No. 7184 January Session, 2019 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 Section 30-14a of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2019, and 2 applicable to all new permits issued on and after said date): 3 A package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] July 1, 2019, the Department of Consumer 8 Protection may issue one package store permit for every [twenty-five 9 hundred] five thousand residents of a town as determined by the most 10 recently completed decennial census. The department may authorize 11 the holder of such permit to remove his permit premises to a location 12 in another town provided such removal complies with the provisions 13 of this chapter. 14 Sec. 2. (NEW) (Effective from passage) (a) The holder of a 15 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 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 2 of 20 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] 2019, such person or backer may acquire an interest 44 in no more than [five] six alcoholic beverage retail permits, but nothing 45 in this section shall (1) require any such person who had, on June 8, 46 1981, such interest in more than two such permits to surrender, 47 dispose of or release his or her interest in any such permit or permits 48 nor shall it affect his or her right to continue to hold, use and renew 49 such permits, or (2) prohibit any such person who had, on June 8, 1981, 50 such interest in more than two such permits from transferring his or 51 her interest in such permits by inter vivos or testamentary disposition, 52 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 3 of 20 including living trusts, to his or her spouse or child, or such spouse's 53 or child's living trust or prohibit such spouse or child from accepting 54 such a transfer notwithstanding that such spouse or child may already 55 hold another permit issued under the provisions of this chapter. Any 56 such permit so transferred may be renewed by such transferee under 57 the provisions of section 30-14. Except as provided in subdivision (1) of 58 this subsection, a person shall be deemed to acquire an interest in a 59 retail permit if an interest is owned by such person, such person's 60 spouse, children, partners, or an estate, trust, or corporation controlled 61 by such person or such person's spouse, children, or any combination 62 thereof. The provisions of this subsection shall apply to any such 63 interest without regard to whether such interest is a controlling 64 interest. For the purposes of this subsection, "person" means (A) an 65 individual, (B) a corporation or any subsidiary of a corporation, or (C) 66 any combination of corporations or individuals any of whom, or any 67 combination of whom, owns or controls, directly or indirectly, more 68 than five per cent of any entity which is a backer as defined in said 69 section 30-1. 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. Subdivision (6) of section 30-1 of the general statutes is 80 repealed and the following is substituted in lieu thereof (Effective July 81 1, 2019): 82 (6) (A) "Case price" means the price of a container of cardboard, 83 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 4 of 20 wood or other material, containing units of the same size, brand [, age 84 and proof] and class of alcoholic liquor, and (B) a case of alcoholic 85 liquor, other than beer, cordials, cocktails, wines and prepared mixed 86 drinks, shall be in the number and quantity, or fewer, with the 87 permission of the Commissioner of Consumer Protection, of units or 88 bottles as follows: (i) Six one thousand seven hundred fifty milliliter 89 bottles; (ii) twelve one liter bottles; (iii) twelve seven hundred fifty 90 milliliter bottles; (iv) twenty-four three hundred seventy-five milliliter 91 bottles; (v) forty-eight two hundred milliliter bottles; (vi) sixty one 92 hundred milliliter bottles; or (vii) one hundred twenty fifty milliliter 93 bottles, except a case of fifty milliliter bottles may be in a number and 94 quantity as originally configured, packaged and sold by the 95 manufacturer or out-of-state shipper prior to shipment, provided such 96 number of bottles does not exceed two hundred. The commissioner 97 shall not authorize fewer numbers or quantities of units or bottles as 98 specified in this subdivision for any one person or entity more than 99 [four] eight times in any calendar year. For purposes of this 100 subdivision, "class" shall have the meaning specified in the 27 CFR 101 5.22, as amended, for spirits, in the 27 CFR 4.21, as amended, for wine 102 and in the 27 CFR 7.24, as amended, for beer. 103 Sec. 5. Section 30-68l of the general statutes is repealed and the 104 following is substituted in lieu thereof (Effective July 1, 2019): 105 (a) No wholesaler permittee shall sell to any purchaser holding a 106 permit for the sale of alcoholic liquor for on or off premises 107 consumption at a price which is below such wholesaler permittee's 108 cost. For the purposes of this section, "cost" means: (1) On domestic 109 alcoholic liquor bottled in the state, the total of (A) the cost of all 110 ingredients, (B) all transportation charges from the point of origin to 111 the point of destination, (C) all applicable federal and state taxes, and 112 (D) the cost of containers, labels, caps, closures and all bottling charges 113 and labor; (2) on imported alcoholic liquor bottled in the state, the total 114 of (A) the invoice price from the supplier, (B) all other ingredients, (C) 115 the cost of duties, (D) all applicable federal and state taxes, (E) 116 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 5 of 20 insurance, (F) ocean freight and brokerage charges, (G) all 117 transportation charges, and (H) the cost of containers, labels, caps, 118 closures and all bottling charges and labor; (3) on domestic alcoholic 119 liquors not bottled in this state, the total of (A) the posted price from 120 the supplier to the wholesaler, (B) the cost of shipping or delivery 121 charges to the wholesaler's place of business which were paid by the 122 wholesaler in addition to the posted price, and (C) all applicable 123 federal and state taxes paid by the wholesaler in addition to the posted 124 price; (4) on imported alcoholic liquor not bottled in the state, the total 125 of (A) the posted price from the supplier, (B) the cost of duties, 126 insurance, ocean freight and brokerage charges and transportation 127 charges paid by the wholesaler in addition to the posted price, and (C) 128 all applicable federal and state taxes paid by the wholesaler in addition 129 to the posted price. The provisions of this section shall not apply to 130 sales of wine. 131 (b) Subject to prior approval from a manufacturer permittee or out-132 of-state shipper permittee, a wholesaler permittee may package and 133 sell to a retail permittee a nonuniform case, containing bottles only of 134 one class of alcoholic liquor, if the wholesaler holds the exclusive 135 rights to all bottles in such nonuniform case. A wholesaler who does 136 not hold exclusive rights to a given brand trademark may sell to a 137 retail permittee a nonuniform case containing bottles only of one class 138 of alcoholic liquor, provided all of the bottles in such nonuniform case 139 are available to all nonexclusive wholesalers who also have rights to 140 the given brand trademarks. 141 Sec. 6. Section 30-63 of the general statutes is repealed and the 142 following is substituted in lieu thereof (Effective July 1, 2019): 143 (a) No holder of any manufacturer, wholesaler or out-of-state 144 shipper's permit shall ship, transport or deliver within this state, or sell 145 or offer for sale, any alcoholic liquors, except for beer manufactured by 146 a permittee in this state and sold for consumption only on the 147 permittee's premises, unless the name of the brand, trade name or 148 other distinctive characteristic by which such alcoholic liquors are 149 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 6 of 20 bought and sold, the name and address of the manufacturer thereof 150 and the name and address of each wholesaler permittee who is 151 authorized by the manufacturer or his authorized representative to sell 152 such alcoholic liquors are registered with the Department of Consumer 153 Protection and until such brand, trade name or other distinctive 154 characteristic has been approved by the department. Such registration 155 shall be valid for a period of three years. The fee for such registration, 156 or renewal thereof, shall be two hundred dollars for out-of-state 157 shippers and fifteen dollars for Connecticut manufacturers for each 158 brand so registered, payable by the manufacturer or such 159 manufacturer's authorized representative when such liquors are 160 manufactured in the United States and by the importer or such 161 importer's authorized representative when such liquors are imported 162 into the United States. The department shall not approve the brand 163 registration of any fortified wine, as defined in section 12-433, which is 164 labeled, packaged or canned so as to appear to be a wine or liquor 165 cooler, as defined in section 12-433. 166 (b) No manufacturer, wholesaler or out-of-state shipper permittee 167 shall discriminate in any manner in price discounts between one 168 permittee and another on sales or purchases of alcoholic liquors 169 bearing the same brand or trade name and of like age, size and quality, 170 nor shall such manufacturer, wholesaler or out-of-state shipper 171 permittee allow in any form any discount, rebate, free goods, 172 allowance or other inducement for the purpose of making sales or 173 purchases. Nothing in this subsection shall be construed to prohibit 174 beer manufacturers, beer wholesalers or beer out-of-state shipper 175 permittees from differentiating in the manner in which their products 176 are packaged on the basis of on-site or off-site consumption. 177 (c) For alcoholic liquor other than beer, each manufacturer, 178 wholesaler and out-of-state shipper permittee shall post with the 179 department, on a monthly basis, the bottle, can and case price of any 180 brand of goods offered for sale in Connecticut, which price when so 181 posted shall be the controlling price for such manufacturer, wholesaler 182 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 7 of 20 or out-of-state permittee for the month following such posting. On and 183 after July 1, 2005, for beer, each manufacturer, wholesaler and out-of-184 state shipper permittee shall post with the department, on a monthly 185 basis, the bottle, can and case price, and the price per keg or barrel or 186 fractional unit thereof for any brand of goods offered for sale in 187 Connecticut which price when so posted shall be the controlling price 188 for such brand of goods offered for sale in this state for the month 189 following such posting. Such manufacturer, wholesaler and out-of-190 state shipper permittee may also post additional prices for such bottle, 191 can, case, keg or barrel or fractional unit thereof for a specified portion 192 of the following month which prices when so posted shall be the 193 controlling prices for such bottle, can, case, keg or barrel or fractional 194 unit thereof for such specified portion of the following month. Notice 195 of all manufacturer, wholesaler and out-of-state shipper permittee 196 prices shall be given to permittee purchasers by direct mail, Internet 197 web site or advertising in a trade publication having circulation among 198 the retail permittees except a wholesaler permittee may give such 199 notice by hand delivery. Price postings with the department setting 200 forth wholesale prices to retailers shall be available for inspection 201 during regular business hours at the offices of the department by 202 manufacturers and wholesalers until three o'clock p.m. of the first 203 business day after the last day for posting prices. A manufacturer or 204 wholesaler may amend such manufacturer's or wholesaler's posted 205 price for any month to meet a lower price posted by another 206 manufacturer or wholesaler with respect to alcoholic liquor bearing the 207 same brand or trade name and of like age, vintage, quality and unit 208 container size; provided that any such amended price posting shall be 209 filed before three o'clock p.m. of the fourth business day after the last 210 day for posting prices; and provided further such amended posting 211 shall not set forth prices lower than those being met. Any 212 manufacturer or wholesaler posting an amended price shall, at the 213 time of posting, identify in writing the specific posting being met. On 214 and after July 1, 2005, all wholesaler postings, other than for beer, for 215 the following month shall be provided to retail permittees not later 216 than the twenty-seventh day of the month prior to such posting. All 217 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 8 of 20 wholesaler postings for beer shall be provided to retail permittees not 218 later than the twentieth day of the month prior to such posting. 219 (d) Monthly price postings for a nonuniform case of alcoholic liquor 220 shall contain the bottle price for each item contained in the nonuniform 221 case, the unit price and the case price. The bottle price posted for a 222 nonuniform case shall be equal to the bottle price posted for the same 223 month for a case containing one class and brand of alcoholic liquor. 224 Sec. 7. Section 30-16 of the general statutes is repealed and the 225 following is substituted in lieu thereof (Effective July 1, 2019): 226 (a) A manufacturer permit shall allow the manufacture of alcoholic 227 liquor and the storage, bottling and wholesale distribution and sale of 228 alcoholic liquor manufactured or bottled to permittees in this state and 229 without the state as may be permitted by law; but no such permit shall 230 be granted unless the place or the plan of the place of manufacture has 231 received the approval of the Department of Consumer Protection. The 232 holder of a manufacturer permit who produces less than [twenty-five] 233 one hundred thousand gallons of alcoholic liquor in a calendar year 234 may sell at retail from the premises sealed bottles or other sealed 235 containers of alcoholic liquor manufactured on the premises for 236 consumption off the premises, provided such holder shall not sell to 237 any one consumer more than one and one-half liters of alcoholic liquor 238 per day nor more than five gallons of alcoholic liquor in any two-239 month period. Retail sales by a holder of a manufacturer permit shall 240 occur only on the days and times permitted under subsection (d) of 241 section 30-91. A holder of a manufacturer permit, alone or in 242 combination with any parent or subsidiary business or related or 243 affiliated party, who sells more than ten thousand gallons of alcoholic 244 liquor in any calendar year may not sell alcoholic liquor at wholesale 245 to retail permittees within this state. Such permit shall also authorize 246 the offering and tasting, on the premises of the permittee, of free 247 samples of spirits distilled on the premises. Tastings shall not exceed 248 two ounces per patron per day and shall not be allowed on such 249 premises on Sunday before eleven o'clock a.m. and after eight o'clock 250 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 9 of 20 p.m. and on any other day before ten o'clock a.m. and after eight 251 o'clock p.m. No tastings shall be offered to or allowed to be consumed 252 by any minor or intoxicated person. A holder of a manufacturer permit 253 may apply for and shall receive an out-of-state shipper's permit for 254 manufacturing plants and warehouse locations outside the state 255 owned by such manufacturer or a subsidiary corporation thereof, at 256 least eighty-five per cent of the voting stock of which is owned by such 257 manufacturer, to bring into any of its plants or warehouses in the state 258 alcoholic liquors for reprocessing, repackaging, reshipment or sale 259 either (1) within the state to wholesaler permittees not owned or 260 controlled by such manufacturer, or (2) outside the state. The annual 261 fee for a manufacturer permit shall be one thousand eight hundred 262 fifty dollars. 263 (b) A manufacturer permit for beer shall be in all respects the same 264 as a manufacturer permit, except that the scope of operations of the 265 holder shall be limited to beer, but shall permit the storage of beer in 266 any part of the state. Such permit shall also authorize the offering and 267 tasting, on the premises of the permittee, of free samples of beer 268 brewed on such premises and the selling at retail from the premises of 269 sealed bottles or other sealed containers of such beer for consumption 270 off the premises. The offering and tasting may be limited to visitors 271 who have attended a tour of the premises of the permittee. Such selling 272 at retail from the premises of sealed bottles or other sealed containers 273 shall comply with the provisions of subsection (d) of section 30-91 and 274 shall permit not more than [nine liters] six gallons of beer to be sold to 275 any person on any day on which such sale is authorized under the 276 provisions of subsection (d) of section 30-91. The annual fee for a 277 manufacturer permit for beer shall be one thousand dollars. 278 (c) A manufacturer permit for cider not exceeding six per cent 279 alcohol by volume and apple wine not exceeding fifteen per cent 280 alcohol by volume shall allow (1) the manufacture, storage, bottling 281 and wholesale distribution and sale at retail of such cider and apple 282 wine to permittees and nonpermittees in this state as may be permitted 283 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 10 of 20 by law; but no such permit shall be issued unless the place or the plan 284 of the place of manufacture has received the approval of the 285 department; (2) the sale and shipment by the holder of such permit of 286 such cider and such apple wine to persons outside the state and to 287 consumers in this state in the same manner and subject to the same 288 conditions as such sale and shipment is permitted for wine by a farm 289 winery manufacturer permittee pursuant to subsection (e) of this 290 section; [and] (3) the offering and tasting, on the premises of the 291 permittee, of free samples of cider and apple wine manufactured on 292 such premises; and (4) the sale at retail on the premises of such cider 293 and apple wine by the glass and bottle to visitors on the premises for 294 consumption on the premises. Tastings shall not exceed two ounces 295 per patron and shall not be allowed on such premises on Sunday 296 before eleven o'clock a.m. and after eight o'clock p.m. and on any other 297 day before ten o'clock a.m. and after eight o'clock p.m. No tasting shall 298 be offered to or allowed to be consumed by any minor or intoxicated 299 person. Offerings and tastings may be limited to visitors who have 300 attended a tour of the premises of the permittee. The annual fee for a 301 manufacturer permit for cider shall be two hundred dollars. 302 (d) A manufacturer permit for apple brandy and eau-de-vie shall be 303 in all respects the same as a manufacturer permit, except that the scope 304 of operations of the holder shall be limited to apple brandy or eau-de-305 vie, or both. The annual fee for a manufacturer permit for apple 306 brandy and eau-de-vie shall be four hundred dollars. 307 (e) (1) A manufacturer permit for a farm winery shall be in all 308 respects the same as a manufacturer permit, except that the scope of 309 operations of the holder shall be limited to wine and brandies distilled 310 from grape products or other fruit products, including grappa and 311 eau-de-vie. As used in this section, "farm winery" means any place or 312 premises that is located on a farm in the state in which wine is 313 manufactured and sold. 314 (2) Such permit shall, at the single principal premises of the farm 315 winery, authorize (A) the sale in bulk by the holder thereof from the 316 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 11 of 20 premises where the products are manufactured pursuant to such 317 permit; (B) as to a manufacturer who produces one hundred thousand 318 gallons of wine or less per year, the sale and shipment by the holder 319 thereof to a retailer of wine manufactured by the farm winery 320 permittee in the original sealed containers of not more than fifteen 321 gallons per container; (C) the sale and shipment by the holder thereof 322 of wine manufactured by the farm winery permittee to persons outside 323 the state; (D) the offering and tasting of free samples of such wine or 324 brandy, dispensed out of bottles or containers having capacities of not 325 more than two gallons per bottle or container, to visitors and 326 prospective retail customers for consumption on the premises of the 327 farm winery permittee; (E) the sale at retail from the premises of sealed 328 bottles or other sealed containers of such wine or brandy for 329 consumption off the premises; (F) the sale at retail from the premises of 330 wine or brandy or beer manufactured by the holder of a permit issued 331 pursuant to subsection (b), (f), (g) or (h) of this section by the glass and 332 bottle to visitors on the premises of the farm winery permittee for 333 consumption on the premises; and (G) subject to the provisions of 334 subdivision (3) of this subsection, the sale and delivery or shipment of 335 wine manufactured by the permittee directly to a consumer in this 336 state. Notwithstanding the provisions of subparagraphs (D), (E) and 337 (F) of this subdivision, a town may, by ordinance or zoning regulation, 338 prohibit any such offering, tasting or selling at retail at premises within 339 such town for which a manufacturer permit for a farm winery has been 340 issued. 341 (3) A permittee, when selling and shipping wine directly to a 342 consumer in this state, shall: (A) Ensure that the shipping labels on all 343 containers of wine shipped directly to a consumer in this state 344 conspicuously state the following: "CONTAINS ALCOHOL —345 SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR 346 DELIVERY"; (B) obtain the signature of a person age twenty-one or 347 older at the address prior to delivery, after requiring the signer to 348 demonstrate that he or she is age twenty-one or older by providing a 349 valid motor vehicle operator's license or a valid identity card described 350 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 12 of 20 in section 1-1h; (C) not ship more than five gallons of wine in any two-351 month period to any person in this state; (D) pay, to the Department of 352 Revenue Services, all sales taxes and alcoholic beverage taxes due 353 under chapters 219 and 220 on sales of wine to consumers in this state, 354 and file, with said department, all sales tax returns and alcoholic 355 beverage tax returns relating to such sales; (E) report to the 356 Department of Consumer Protection a separate and complete record of 357 all sales and shipments to consumers in the state, on a ledger sheet or 358 similar form which readily presents a chronological account of such 359 permittee's dealings with each such consumer; (F) not ship to any 360 address in the state where the sale of alcoholic liquor is prohibited by 361 local option pursuant to section 30-9; and (G) hold an in-state 362 transporter's permit pursuant to section 30-19f or make any such 363 shipment through the use of a person who holds such an in-state 364 transporter's permit. 365 (4) No licensed farm winery may sell any such wine or brandy not 366 manufactured by such winery, except a licensed farm winery may sell 367 from the premises (A) wine manufactured by another farm winery 368 located in this state, and (B) brandy manufactured from fruit harvested 369 in this state and distilled off the premises in this state. 370 (5) The farm winery permittee shall grow on the premises of the 371 farm winery or on property under the same ownership and control of 372 said permittee or leased by the backer of a farm winery permit or by 373 said permittee within the farm winery's principal state an average crop 374 of fruit equal to not less than twenty-five per cent of the fruit used in 375 the manufacture of the farm winery permittee's wine. An average crop 376 shall be defined each year as the average yield of the farm winery 377 permittee's two largest annual crops out of the preceding five years, 378 except that during the first seven years from the date of issuance of a 379 farm winery permit, an average crop shall be defined as three tons of 380 grapes for each acre of vineyard farmed by the farm winery permittee. 381 Such seven-year period shall not begin anew if the property for which 382 the farm winery permit is held is transferred or sold during such 383 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 13 of 20 seven-year period. In the event the farm winery consists of more than 384 one property, the aggregate acreage of the farm winery shall not be 385 less than five acres. 386 (6) A holder of a manufacturer permit for a farm winery, when 387 advertising or offering wine for direct shipment to a consumer in this 388 state via the Internet or any other on-line computer network, shall 389 clearly and conspicuously state such liquor permit number in its 390 advertising. 391 (7) A holder of a manufacturer permit for a farm winery may sell 392 and offer free tastings of wine manufactured from such winery at a 393 farmers' market, as defined in section 22-6r, that is operated as a 394 nonprofit enterprise or association, provided such farmers' market 395 invites such holder to sell wine at such farmers' market and such 396 holder has a farmers' market wine sales permit issued by the 397 Commissioner of Consumer Protection in accordance with the 398 provisions of subsection (a) of section 30-37o. 399 (8) The annual fee for a manufacturer permit for a farm winery shall 400 be three hundred dollars. 401 (f) (1) A manufacturer permit for a farm brewery shall be in all 402 respects the same as a manufacturer permit, except that the scope of 403 operations of the holder shall be limited to the production of not more 404 than seventy-five thousand gallons of beer in a calendar year. As used 405 in this section, "farm brewery" means any place or premises that is 406 located on a farm in the state in which beer is manufactured and sold. 407 (2) Such permit shall, at the single principal premises of the farm 408 brewery, authorize (A) the sale of sealed bottles or other sealed 409 containers of beer brewed on such premises to the holder of a 410 wholesaler permit issued pursuant to section 30-17; (B) the offering 411 and tasting of free samples of beer manufactured by the farm brewery 412 permittee, dispensed out of bottles or other sealed containers to 413 visitors and prospective retail customers for consumption on the 414 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 14 of 20 premises of the farm brewery permittee; (C) the sale at retail from the 415 premises of not more than [nine liters] six gallons of such beer to any 416 person per day, in sealed bottles or other sealed containers, for 417 consumption off the premises; and (D) the sale at retail from the 418 premises of beer or of wine manufactured by the holder of a permit 419 issued pursuant to subsection (e) of this section by the glass and bottle 420 to visitors on the premises of the farm brewery permittee for 421 consumption on the premises. Notwithstanding the provisions of 422 subparagraphs (A) to (D), inclusive, of this subdivision, a town may, 423 by ordinance or zoning regulation, prohibit any such offering, tasting 424 or selling at retail at premises within such town for which a 425 manufacturer permit for a farm brewery has been issued. 426 (3) The farm brewery permittee shall use not less than twenty-five 427 per cent of a combination of hops, barley, cereal grains, honey, flowers 428 or other fermentables grown or malted within the state of Connecticut 429 in the manufacture of the farm brewery permittee's beer for the first 430 year of issuance for any such permit and not less than fifty per cent of 431 such hops, barley, cereal grains, honey, flowers or other fermentables 432 in the manufacture of the farm brewery permittee's beer for the second 433 and any subsequent year of issuance for any such permit. Any such 434 beer may be advertised and sold by the farm brewery permittee as 435 "Connecticut Craft Beer". 436 (4) A holder of a manufacturer permit for a farm brewery may sell 437 beer manufactured from such brewery at a farmers' market, as defined 438 in section 22-6r, that is operated as a nonprofit enterprise or 439 association, provided such farmers' market invites such holder to sell 440 beer at such farmers' market and such holder has a farmers' market 441 beer sales permit issued by the Commissioner of Consumer Protection 442 in accordance with the provisions of subsection (a) of section 30-37r. 443 (5) The annual fee for a manufacturer permit for a farm brewery 444 shall be three hundred dollars. 445 (g) A manufacturer permit for a brew pub shall allow: (1) The 446 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 15 of 20 manufacture, storage and bottling of beer, (2) the retail sale of alcoholic 447 liquor, including wine manufactured by the holder of a permit issued 448 pursuant to subsection (e) of this section, to be consumed on the 449 premises with or without the sale of food, (3) the selling at retail from 450 the premises of sealed bottles or other sealed containers of beer brewed 451 on such premises for consumption off the premises, and (4) the sale of 452 sealed bottles or other sealed containers of beer brewed on such 453 premises to the holder of a wholesaler permit issued pursuant to 454 subsection (b) of section 30-17, provided that the holder of a 455 manufacturer permit for a brew pub produces at least five thousand 456 gallons of beer on the premises annually. Such selling at retail from the 457 premises of sealed bottles or other sealed containers shall comply with 458 the provisions of subsection (d) of section 30-91 and shall permit not 459 more than [nine liters] six gallons of beer to be sold to any person on 460 any day on which such sale is authorized under the provisions of 461 subsection (d) of section 30-91. The annual fee for a manufacturer 462 permit for a brew pub shall be three hundred dollars. 463 (h) A manufacturer permit for beer and brew pub shall be in all 464 respects the same as a manufacturer permit for beer, as defined in 465 subsection (b) of this section, and shall allow those additional 466 permissible uses specified in the manufacturer permit for a brew pub, 467 as defined in subsection (g) of this section, provided the holder of a 468 manufacturer permit for beer and brew pub produces at least five 469 thousand gallons of beer on the premises annually. The annual fee for 470 a manufacturer permit for beer and brew pub shall be one thousand 471 five hundred dollars. 472 (i) (1) A manufacturer permit for a farm distillery shall be in all 473 respects the same as a manufacturer permit, except that the scope of 474 operations of the holder shall be limited to the production of not more 475 than ten thousand gallons per calendar year of distilled alcohol or 476 spirits including, but not limited to, whiskey, gin, vodka and rum. As 477 used in this section, "farm distillery" means any place or premises that 478 is located on a farm in the state in which distilled spirits or alcohol are 479 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 16 of 20 manufactured and sold. 480 (2) Such permit shall, at the single principal premises of the farm 481 distillery, authorize (A) the sale in bulk by the holder thereof from the 482 premises where the products are manufactured pursuant to such 483 permit; (B) the sale and shipment by the holder thereof to a retailer of 484 distilled alcohol or spirits manufactured by the farm distillery 485 permittee in the original sealed containers of not more than fifteen 486 gallons per container; (C) the offering and tasting of free samples of 487 such distilled alcohol or spirits, in amounts not to exceed two ounces 488 per day per person, to visitors and prospective retail customers for 489 consumption on the premises of the farm distillery permittee; and (D) 490 the sale at retail from the premises of sealed bottles or other sealed 491 containers, in amounts not to exceed four and one-half liters per 492 customer per day, of such distilled alcohol or spirits for consumption 493 off the premises. Notwithstanding the provisions of subparagraphs (C) 494 and (D) of this subdivision, a town may, by ordinance or zoning 495 regulation, prohibit any such offering, tasting or selling at retail at 496 premises within such town for which a manufacturer permit for a farm 497 distillery has been issued. 498 (3) No licensed farm distillery may sell any such distilled alcohol or 499 spirits not manufactured by such distillery. 500 (4) The farm distillery permittee shall grow on the premises of the 501 farm distillery or on property under the same ownership and control 502 of said permittee or leased by the backer of a farm distillery permit or 503 by said permittee within the farm distillery's principal state an average 504 crop of fruit or crops equal to not less than twenty-five per cent of the 505 fruit or crops used in the manufacture of the farm distillery permittee's 506 distilled alcohol or spirits. An average crop shall be defined each year 507 as the average yield of the farm distillery permittee's two largest 508 annual crops out of the preceding five years. In the event the farm 509 distillery consists of more than one property, the aggregate acreage of 510 the farm distillery shall not be less than five acres. 511 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 17 of 20 (5) The annual fee for a manufacturer permit for a farm distillery 512 shall be three hundred dollars. 513 Sec. 8. Section 30-18a of the general statutes is repealed and the 514 following is substituted in lieu thereof (Effective July 1, 2019): 515 (a) (1) An out-of-state winery shipper's permit for wine shall allow 516 the sale of wine to manufacturer and wholesaler permittees in this 517 state as permitted by law and for those shippers that produce not more 518 than one hundred thousand gallons of wine per year, the sale and 519 shipment by the holder thereof to a retailer of wine manufactured by 520 such permittee in the original sealed containers of not more than 521 fifteen gallons per container. For purposes of this section, "wine" shall 522 include cider not exceeding six per cent alcohol by volume and apple 523 wine not exceeding fifteen per cent alcohol by volume. 524 (2) An out-of-state retailer shipper's permit for wine shall allow the 525 sale and shipment of wine directly to a consumer in this state. 526 (b) Subject to the provisions of this subsection, [an out-of-state 527 winery shipper's permit for wine] the permits under subsection (a) of 528 this section shall allow the sale and delivery or shipment of wine 529 manufactured or sold by the permittee directly to a consumer in this 530 state. Such permittee, when selling and shipping wine directly to a 531 consumer in this state, shall: (1) Ensure that the shipping labels on all 532 containers of wine shipped directly to a consumer in this state 533 conspicuously state the following: "CONTAINS ALCOHOL —534 SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR 535 DELIVERY"; (2) obtain the signature of a person age twenty-one or 536 older at the address prior to delivery, after requiring the signer to 537 demonstrate that he or she is age twenty-one or older by providing a 538 valid motor vehicle operator's license or a valid identity card described 539 in section 1-1h; (3) not ship more than five gallons of wine in any two-540 month period to any person in this state and not ship any wine until 541 such permittee is registered, with respect to the permittee's sales of 542 wine to consumers in this state, for purposes of the taxes imposed 543 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 18 of 20 under chapters 219 and 220, with the Department of Revenue Services; 544 (4) pay, to the Department of Revenue Services, all sales taxes and 545 alcoholic beverage taxes due under chapters 219 and 220 on sales of 546 wine to consumers in this state, and file, with said department, all sales 547 tax returns and alcoholic beverage tax returns relating to such sales, 548 with the amount of such taxes to be calculated as if the sale were in this 549 state at the location where delivery is made; (5) report to the 550 Department of Consumer Protection a separate and complete record of 551 all sales and shipments to consumers in the state, on a ledger sheet or 552 similar form which readily presents a chronological account of such 553 permittee's dealings with each such consumer; (6) permit the 554 Department of Consumer Protection and Department of Revenue 555 Services, separately or jointly, to perform an audit of the permittee's 556 records upon request; (7) not ship to any address in the state where the 557 sale of alcoholic liquor is prohibited by local option pursuant to section 558 30-9; (8) hold an in-state transporter's permit pursuant to section 30-19f 559 or make any such shipment through the use of a person who holds 560 such an in-state transporter's permit; and (9) execute a written consent 561 to the jurisdiction of this state, its agencies and instrumentalities and 562 the courts of this state concerning the enforcement of this section and 563 any related laws, rules, or regulations, including tax laws, rules or 564 regulations. 565 (c) The Department of Consumer Protection, in consultation with 566 the Department of Revenue Services, may adopt regulations in 567 accordance with the provisions of chapter 54 to assure compliance 568 with the provisions of subsection (b) of this section. 569 (d) A holder of [an out-of-state winery shipper's permit for wine] a 570 permit under subsection (a) of this section, when advertising or 571 offering wine for direct shipment to a consumer in this state via the 572 Internet or any other on-line computer network, shall clearly and 573 conspicuously state such liquor permit number in its advertising. 574 (e) (1) For purposes of chapter 219, the holder of [an out-of-state 575 winery shipper's permit for wine] a permit under subsection (a) of this 576 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 19 of 20 section, when shipping wine directly to a consumer in this state, shall 577 be deemed to be a retailer engaged in business in this state as defined 578 in chapter 219 and shall be required to be issued a seller's permit 579 pursuant to chapter 219. 580 (2) For purposes of chapter 220, the holder of [an out-of-state winery 581 shipper's permit for wine] a permit under subsection (a) of this section, 582 when shipping wine directly to a consumer in this state, shall be 583 deemed to be a distributor as defined in chapter 220 and shall be 584 required to be licensed pursuant to chapter 220. 585 (f) Any person who applies for an out-of-state winery shipper's 586 permit for wine or for the renewal of such permit shall furnish an 587 affidavit to the Department of Consumer Protection, in such form as 588 may be prescribed by the department, affirming whether the out-of-589 state winery that is the subject of such permit produced more than one 590 hundred thousand gallons of wine during the most recently completed 591 calendar year. 592 (g) The annual fee for [an out-of-state winery shipper's permit for 593 wine] a permit under subsection (a) of this section shall be three 594 hundred fifteen dollars. 595 (h) As used in this section, "out-of-state" means any state other than 596 Connecticut, any territory or possession of the United States, the 597 District of Columbia or the Commonwealth of Puerto Rico, but does 598 not include any foreign country. 599 Sec. 9. (NEW) (Effective July 1, 2019) Notwithstanding the provisions 600 of section 30-68m of the general statutes, the holder of a package store 601 permit issued pursuant to section 30-20 of the general statutes may 602 ship alcoholic liquor to a consumer located out-of-state, subject to all 603 applicable laws of the jurisdiction in which such consumer is located. 604 As used in this section, "out-of-state" means any state other than 605 Connecticut, any territory or possession of the United States, the 606 District of Columbia or the Commonwealth of Puerto Rico, but does 607 Substitute Bill No. 7184 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07184- R01-HB.docx } 20 of 20 not include any foreign country. 608 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2019, and applicable to all new 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 30-1(6) Sec. 5 July 1, 2019 30-68l Sec. 6 July 1, 2019 30-63 Sec. 7 July 1, 2019 30-16 Sec. 8 July 1, 2019 30-18a Sec. 9 July 1, 2019 New section GL Joint Favorable Subst.