ENROLLED 2015 Regular Session HOUSE BILL NO. 233 BY REPRESENTATIVE ADAMS 1 AN ACT 2 To amend and reenact R.S. 26:2(13) through (24), 71(A)(3)(d), 71.1(4)(a), 78(A), 79, 3 80(A)(8), 86, 142, 271.2(4)(a), 278(A), 279, 280(A)(8), and 283 and to enact R.S. 4 26:2(25) and (26), 71(A)(3)(e), and 71.3, relative to microdistillery permits; to 5 provide for definitions; to establish criteria for microdistillery permitting; to provide 6 for permit fees; to provide for the taxation of beverages produced by a microdistiller; 7 to provide relative to Class A-Restaurant-Conditional permits; to provide relative to 8 permit application requirements; to authorize microdistillers to reuse certain 9 alcoholic beverage containers; to require microdistillers to receive approval from the 10 state fire marshal; and to provide for related matters. 11 Be it enacted by the Legislature of Louisiana: 12 Section 1. R.S. 26:2(13) through (24), 71(A)(3)(d), 71.1(4)(a), 78(A), 79, 80(A)(8), 13 86, 142, 271.2(4)(a), 278(A), 279, 280(A)(8), and 283 are hereby amended and reenacted 14 and R.S. 26:2(25) and (26), 71(A)(3)(e), and 71.3 are hereby enacted to read as follows: 15 §2. Definitions 16 For purposes of this Chapter, the following terms have the respective 17 meanings ascribed to them in this Section, unless a different meaning clearly appears 18 from the context: 19 * * * 20 (13) "Microdistiller" means any person who operates a microdistillery. 21 (14) "Microdistillery" means a retail outlet where a microdistiller engages 22 in the distilling, making, blending, rectifying, or processing of any alcoholic 23 beverage in Louisiana in quantities of not more than twelve thousand gallons per Page 1 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 year for retail sale for consumption on or off the licensed premises in accordance 2 with the provisions of this Chapter and regulations, if any, promulgated by the 3 commissioner. 4 (13) (15) "Outlet" means a place where any person draws or removes any 5 alcoholic beverage from its container for consumption on the premises. 6 (14) (16) "Package house-Class B" means a place consisting of no less than 7 five hundred square feet of public habitable area which sells alcoholic beverages in 8 factory sealed containers for transportation and consumption off the premises and 9 where no person is allowed to tamper with or otherwise disrupt the manufacturer's 10 seal on or about the licensed premises. 11 (15) (17) "Regulated beverage" means any alcoholic beverage. 12 (16) (18) "Solicitor" means any person who offers for sale or solicits any 13 orders for the sale of any regulated beverage, other than in a regularly established 14 and licensed place of business in this state, for delivery or shipment to any point in 15 the state, whether done as owner, agent, or servant. 16 (17) (19) "Sparkling wine" means any effervescent alcoholic beverage 17 derived from the juice of any fruit, or synthesis thereof, charged with carbon dioxide, 18 either artificially or as the result of secondary fermentation within the container. 19 (18) (20) "Still wine" means any non-effervescent alcoholic beverage 20 derived from the juice of any fruit, or synthesis thereof. 21 (19) (21) "Supplier" means any person, other than a wine producer, who 22 manufactures, makes, blends, rectifies, distills, processes, or purchases alcoholic 23 beverages outside the state of Louisiana and imports, sells, offers for sale, solicits 24 orders for sale, distributes, or delivers such alcoholic beverages in Louisiana. 25 (20) (22) "Wholesale dealer" means a person who sells alcoholic beverages 26 of high alcoholic content to licensed wholesale dealers or licensed retail dealers 27 exclusively, within the state or to any person for delivery beyond the borders of the 28 state to a licensed dealer in that state and who conducts a bona fide wholesale 29 business and maintains a warehouse or warehouses for the storage and warehousing 30 of alcoholic beverages of high alcoholic content in the area where domiciled and Page 2 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 licensed by the state, and conducts and maintains systematic and regular 2 solicitations, distribution, deliveries, and sales of the beverages to licensed retail 3 dealers located within the boundary of each parish, municipality, or geographic area, 4 as contractually defined between the wholesaler and his supplier, in which the 5 wholesale dealer makes any sale or delivery. 6 (21) (23) "Wine package house" means a place where a person sells only 7 sparkling wine and still wine in the original package or closed container, prepared 8 for transportation and consumption off the premises. 9 (22) (24) "Wine producer" means any person who, directly or indirectly, 10 personally or through any agency, cultivates and grows grapes, fruits, berries, honey, 11 or vegetables from which wine of an alcoholic content in excess of six percent by 12 volume is produced and bottled from a fermentation of such grapes, fruits, berries, 13 honey, or vegetables in Louisiana or outside the state for shipments to licensed 14 wholesale dealers within the state subject to the provisions of R.S. 26:364. 15 (23) (25) "Winery" means a plot of land located in Louisiana used to 16 cultivate and grow grapes, fruits, berries, honey, or vegetables for the purpose of 17 fermenting such grapes, fruits, berries, honey, or vegetables to produce and bottle 18 wine of an alcoholic content in excess of six percent by volume. 19 (24) (26) "Wine wholesaler" means any dealer who sells only sparkling wine 20 and still wine to other licensed wholesale dealers or to licensed retail dealers for 21 resale within the state. 22 * * * 23 §71. Permits required; fees; exception 24 A. Except as provided in Subsections B and C of this Section, before 25 engaging in the business of manufacturing, supplying, or dealing in alcoholic 26 beverages, all persons shall obtain from the commissioner, according to established 27 rules and regulations, a permit to conduct each separate business and shall pay the 28 commissioner a fee not to exceed the amounts provided for in the following schedule Page 3 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 and in accordance with regulations promulgated pursuant to the provisions of the 2 Administrative Procedure Act for each year the permit is valid: 3 * * * 4 (3) Retailers - (a) There shall be three types of Class A retail liquor permits: 5 * * * 6 (d) Microdistiller, which authorizes the holder of a Retailers Class A permit 7 to engage in the distilling, making, blending, rectifying, or processing of any 8 alcoholic beverage in Louisiana at a single location in an amount not to exceed 9 twelve thousand gallons per year, and which further authorizes the sale at retail of 10 such distilled beverages from that location-one thousand dollars. 11 (e) A fee of one hundred dollars for each one hundred thousand dollars of 12 gross retail liquor sales, after the first one hundred thousand dollars of gross retail 13 liquor sales, shall be levied according to the schedule below which shall be in 14 addition to those fees enumerated in Subparagraphs (a) and (b) of Paragraph (3) of 15 this Subsection: this Paragraph: 16 GROSS SALES ADDITIONAL FEES 17 $0.00 to $99,999.99 -0- 18 $100,000.00 to $199,999.99 $100.00 19 $200,000.00 to $299,999.99 $200.00 20 $300,000.00 to $399,999.99 $300.00 21 $400,000.00 to $499,999.99 $400.00 22 $500,000.00 to $599,999.99 $500.00 23 $600,000.00 and over $600.00 24 * * * 25 §71.1. Class A permit; definitions 26 The commissioner shall issue the following four types of Class A retail liquor 27 permits: 28 * * * Page 4 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 (4) Class A-Restaurant-Conditional: 2 (a) Any retail establishment holding a Class A-General permit issued 3 pursuant to this Section may be issued a Class-A-Restaurant-Conditional permit, 4 provided it meets the requirements of R.S. 26:73(B)(1), (2), (3), (5), and (6) R.S. 5 26:73(C)(1)(a), (b), (c), and (d) during the hours from 7:00 a.m. until 11:00 p.m. 6 each day of operation. 7 * * * 8 §71.3. Microdistillery; retail sales for consumption on or off premises 9 A. Any person who has properly obtained a microdistiller's permit as 10 provided for in R.S. 26:71, shall be authorized to engage in the distilling, making, 11 blending, rectifying, or processing of any alcoholic beverage in Louisiana in a 12 quantity not to exceed twelve thousand gallons during the licensed year. The holder 13 of such permit shall also be authorized to sell the manufactured beverages at retail 14 for consumption on or off the licensed premises, if the holder also has been issued 15 a Retailer Class A permit. 16 B. The provisions of this Section shall not authorize the holder of a 17 microdistiller's permit to sell the manufactured beverages at wholesale or to any 18 wholesale dealer. 19 C. The microdistiller shall not sell any alcoholic beverages for transportation 20 off the premises to any other licensed alcoholic beverage retail dealer. 21 D. Beverages produced by a microdistiller shall be taxed in the same manner 22 and at the same rate as beverages produced by other manufacturers, as provided by 23 law. 24 E. Notwithstanding the provisions of R.S. 26:149, microdistillers may reuse 25 alcoholic beverage containers in connection with distilling and bottling operations. 26 F. Prior to commencing distilling operations, microdistillers shall obtain 27 approval from the state fire marshal. 28 * * * Page 5 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 §78. Content of application for permit; commissioner power as ex officio notary 2 A. Applications for state and local permits to engage in any business or 3 operation regulated by this Chapter shall be in writing and sworn to, and shall 4 contain the full name of the applicant, his social security number, his federal 5 employer identification number, if applicable, his Louisiana Department of Revenue 6 business account number, if applicable, his correct home address, and an accurate 7 description and correct street address of the premises wherein the business or 8 operation is to be conducted, which address shall be considered the proper address 9 for all notices to the applicant or permittee required by this Chapter, and shall be 10 accompanied by an affidavit of the applicant showing that he meets the qualifications 11 and conditions set out in R.S. 26:80. Original and renewal applications shall also be 12 accompanied by a signed sales tax clearance from the sales tax collection agency or 13 agencies in the parish in which the application is made, which clearance request shall 14 be processed within seven business days. 15 * * * 16 §79. Submission of applications; delay 17 All applications for state permits shall be mailed or delivered to the 18 commissioner in Baton Rouge, Louisiana, and all applications for local permits shall 19 be mailed or delivered to the respective local authorities. An applicant shall mail or 20 deliver both his applications for state and local permits within twenty-four hours of 21 each other. If he fails to do so, his state application may be withheld and the permits 22 denied. Upon receipt of an application, the commissioner or the local authorities, as 23 the case may be, shall stamp the day, month, and year received, and the 24 commissioner shall verify that the applicant does not owe the state or the political 25 subdivision in which the business is located any delinquent sales taxes, penalties, or 26 interest, excluding items under formal appeal pursuant to the applicable statutes. 27 The commissioner and officers or employees specifically so authorized by the 28 commissioner and local authorities may issue the permits immediately after proper 29 investigation but, for a period of thirty-five days after issuance, such permits shall Page 6 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 operate on a probationary basis subject to final action on, opposition to, or 2 withholding of, the permits as hereinafter provided. 3 * * * 4 §80. Qualifications of applicants for permits 5 A. Applicants for state and local permits of all kinds shall demonstrate that 6 they meet all of the following qualifications and conditions: 7 * * * 8 (8) Have not had a license or permit to sell or deal in alcoholic beverages, 9 issued by the United States, any state, or by any political subdivision of a state 10 authorized to issue permits or licenses, revoked within two years prior to the 11 application, or been convicted or had a judgment of court rendered against the 12 applicant involving the sale or service of alcoholic beverages by this or any other 13 state or by the United States for two years prior to the application. 14 * * * 15 §86. Authority of commissioner and local authorities to withhold permit 16 The commissioner with respect to state permits and municipal authorities and 17 parish governing authorities with respect to local permits may withhold the issuance 18 of permits in the manner and under the terms and conditions specified in this 19 Chapter; however, if a sales tax clearance is not issued, the permit shall be withheld. 20 Nevertheless, if the sales tax clearance request is not processed within the time 21 limitations provided in R.S. 26:78, the permit shall be issued if all other 22 qualifications are met by the applicant. 23 * * * 24 §142. Distribution through wholesalers only 25 Except as provided for in R.S. 26:85 R.S. 26:71.3, 85, 271.1, and 359, no 26 alcoholic beverage produced or manufactured inside or outside of this state shall be 27 sold or offered for sale in Louisiana or shipped or transported into or within the state 28 except to the holder of a wholesaler's permit and for delivery at the place of business 29 of the wholesaler as shown in his permit. 30 * * * Page 7 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 §271.2. Class A permit; definitions 2 The commissioner shall issue the following four types of Class A retail 3 permits for beverages of low alcoholic content: 4 * * * 5 (4) Class A-Restaurant-Conditional: 6 (a) Any retail establishment holding a Class A-General permit issued 7 pursuant to this Section may be issued a Class-A-Restaurant-Conditional permit 8 provided it meets the requirements of R.S. 26:73(B)(1), (2), (3), (5), and (6) R.S. 9 26:73(C)(1)(a), (b), (c), and (d) during the hours from 7:00 a.m. until 11:00 p.m. 10 each day of operation. 11 * * * 12 §278. Contents of application for permit; commissioner power as ex officio notary 13 A. Applications for state and local wholesaler or retailer permits shall be in 14 writing and sworn to and shall contain the full name of the applicant, his social 15 security number, his federal employer identification number, if applicable, his 16 Louisiana Department of Revenue business account number, if applicable, his correct 17 home address, and an accurate description and correct address of the premises 18 wherein the business or operation is to be conducted, which address shall be 19 considered the proper address for all notices to the applicant or permittee required 20 by this Chapter, and shall be accompanied by an affidavit of the applicant showing 21 that he meets the qualifications and conditions set out in R.S. 26:280, and that he has 22 no interest in a retail dealer establishment in the case of applicants for wholesaler 23 permits, and that he has no interest in a wholesaler dealer establishment in the case 24 of applicants for retail dealer permits unless such interest was held prior to July 31, 25 1946. Original and renewal applications shall be accompanied by a signed sales tax 26 clearance from the sales tax collection agency or agencies in the parish in which the 27 application is made, which clearance request shall be processed within seven 28 business days. 29 * * * Page 8 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 §279. Submission of applications; delay 2 All applications for state permits shall be mailed or delivered to the 3 commissioner in Baton Rouge at the state capitol, and all applications for local 4 permits shall be mailed or delivered to the respective local authorities. An applicant 5 shall mail or deliver his applications for state and local permits within twenty-four 6 hours of each other. If he fails to do so, his state application may be withheld and 7 the permits denied. Upon receipt of an application, the commissioner or the local 8 authorities, as the case may be, shall stamp the day, month, and year received, and 9 the commissioner shall verify that the applicant does not owe the state or the political 10 subdivision in which the business is located any delinquent sales taxes, penalties, or 11 interest, excluding items under formal appeal pursuant to applicable statutes. The 12 commissioner and officers or employees specifically so authorized by the 13 commissioner and local authorities may issue the permits immediately after proper 14 investigation but, for a period of thirty-five days after receipt of the application, such 15 permits shall operate on a probationary basis subject to final action on opposition to, 16 or withholding of, the permit as hereinafter provided. 17 §280. Qualifications of applicants for permits 18 A. Applicants for state and local permits of all kinds shall demonstrate that 19 they meet the following qualifications and conditions: 20 * * * 21 (8) Have not had a license or permit to sell or deal in alcoholic beverages, 22 issued by the United States, any state, or by any political subdivision of a state 23 authorized to issue permits or licenses, revoked within two years prior to the 24 application, or been convicted, or had a judgment of court rendered against the 25 applicant involving the sale or service of alcoholic beverages by this or any other 26 state or by the United States for two years prior to the application. 27 * * * 28 §283. Authority of commissioner and local authorities to withhold permits 29 The commissioner with respect to state permits and municipal authorities or 30 parish governing authorities with respect to local permits may withhold the issuance Page 9 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 233 ENROLLED 1 of permits in the manner and under the terms and conditions specified in this 2 Chapter; however, if a sales tax clearance has not been issued, the permit shall be 3 withheld. Nevertheless, if the sales tax clearance request is not processed within the 4 time limitation provided in R.S. 26:278, the permit shall be issued if all other 5 qualifications are met by the applicant. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 10 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions.