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NO. 158. AN ACT RELATING TO CONSUMPTION OF BEER AND WINE.

(H.680)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 7 V.S.A. § 2(15) is amended to read:

(15) "Manufacturer's or rectifier's license": the liquor control board may grant to a manufacturer or a rectifier a license to manufacture or rectify, as the case may be, malt beverages and vinous beverages for export and for sale to bottlers or wholesale dealers, and the liquor control board may grant to a manufacturer or a rectifier a license to manufacture or rectify, as the case may be, spirituous liquors for export and for sale to the liquor control board, upon application of such manufacturer or rectifier and the payment to the liquor control board of the license fee of $150.00 for either license. The liquor control board may grant to a licensed manufacturer or rectifier a first class restaurant or cabaret license or first and third class restaurant or cabaret license permitting the licensee to sell alcoholic beverages to the public only at the manufacturer's premises. A manufacturer of malt beverages who also holds a first class restaurant or cabaret license may serve to a customer malt beverages by the glass, not to exceed eight glasses at one time and not to exceed four ounces in each glass. The liquor control board may grant to a licensed manufacturer or a rectifier of malt beverages a second class license permitting the licensee to sell alcoholic beverages to the public only at the manufacturer's or rectifier's premises. Upon application and payment of the license fee of $50.00, the liquor control board may grant to a licensed manufacturer or rectifier of vinous beverages up to four fourth class licenses permitting the licensee to sell such beverages by the bottle to the public at the licensed premises provided that such beverages were produced by fermentation by the manufacturer or rectifier in Vermont. However, in no case may a person with an interest in more than one manufacturer's or rectifier's license have an interest in more than four fourth class licenses. The manufacturer or rectifier shall pay directly to the commissioner of taxes, the sum of twenty-six and one-half cents per gallon for every gallon of malt beverage and the sum of fifty-five cents per gallon for each gallon of vinous beverage manufactured by the manufacturer or rectifier and provided for sale pursuant to the first class license or the second class license or the fourth class license orcombination thereof held by the manufacturer or rectifier. Holders of a manufacturer's or rectifier's second class or fourth class license may distribute, with or without charge, malt or vinous beverages by the glass, not to exceed two ounces per product and eight ounces in total, to all persons having attained the age of majority, which must be consumed upon the premises of the holder of the license. At the request of a person holding a first class or second class license, a holder of a manufacturer's or rectifier's license may distribute without charge to the management and staff of the license holder, provided they are of legal drinking age, no more than four ounces per person of a malt beverage or two ounces per person of a vinous beverage for the purpose of promoting the beverage. Written notice shall be provided to the department of liquor control at least 10 days prior to the date of the tasting. A licensed manufacturer or rectifier of vinous beverages may sell up to 2,000 gallons of vinous beverages manufactured in Vermont on invoice directly to second class licensees provided the manufacturer or rectifier pays to the department an annual fee of $200.00. The beverages may be delivered to the second class licensee by common carrier or the manufacturer or rectifier's own vehicles.

Sec. 2. 7 V.S.A. § 238a is amended to read:

§ 238a. OUTSIDE CONSUMPTION PERMITS; GOLF COURSES; WINERIES

Pursuant to regulations of the liquor control board, an outside consumption permit may be granted to the holder of a first or first and third class license for all or part of the outside premises of a golf course or to the holder of a fourth class license for all or part of the outside premises of a winery for consumption of wine produced on the premises, provided that such permit is first obtained from the local control commissioners and approved by the board.

Sec. 3. 7 V.S.A. § 602 is amended to read:

§ 602. --EXHIBITION OF CARD

A person shall exhibit a liquor control identification card, a *[Vermont]* valid photographic operator's license*[, a Vermont]* or valid photographic nondriver identification card issued by Vermont or another state or foreign jurisdiction, a United States military identification card, or a valid passport upon demand of a licensee, or of an employee of alicensee, or of a law enforcement officer*[, and on]* . On the failure of a person to produce and exhibit a liquor control identification card, a *[Vermont]* valid photographic operator's license*[, a Vermont]* or valid photographic nondriver identification card issued by Vermont or another state or foreign jurisdiction, a United States military identification card, or a valid passport upon demand of a licensee the licensee shall be entitled to refuse to sell the person any alcoholic beverage. Sale or furnishing of any alcoholic beverages by a licensee to a person exhibiting a liquor control identification card, a *[Vermont]* valid photographic operator's license*[, a Vermont]* or valid photographic nondriver identification card issued by Vermont or another state or foreign jurisdiction, a United States military identification card, or a valid passport bearing the photograph and signature of the person shall be prima facie evidence of such licensee's compliance with the law prohibiting the sale or furnishing of alcoholic beverages to minors.

Sec. 4. 7 V.S.A. § 2(30) is added to read:

(30) "Home-fermented beverages" means malt or vinous beverages produced at home and not for sale.

Sec. 5. 7 V.S.A. § 65 is added to read:

§ 65. HOME-FERMENTED MALT AND VINOUS BEVERAGES; TASTING EVENT

(a) A person of legal age may, without obtaining a license under this title or paying state taxes or fees, produce malt or vinous beverages, or both, at home provided that the amount of home-fermented beverages produced by that person does not exceed the quantities limitation in 26 U.S.C. §§ 5053 and 5042.

(b) Home-fermented beverages produced pursuant to this section may be transported to and offered for tasting at an organized event, exhibition or competition held for home-fermented beverages, provided all the following conditions are met:

(1) The sponsor provides written notice of the event to the department no later than 10 days prior to the date of the event. The notice shall include a description of the delineated area in which the tastings will be offered.

(2) The public is not charged a fee for the tastings or for admission to the event, exhibition or competition. However, the sponsor may charge a fee to the producers ofhome-fermented beverages for their participation in the event.

(3) Tastings of home-fermented beverages are offered only within the delineated area specified in the notice to the department.

(4) The home-fermented beverages are served only to individuals of legal age.

(5) No home-fermented beverages are served to any individual who is apparently under the influence of alcohol.

(6) No more than two ounces of any single vinous beverage and no more than four ounces of any single malt beverage is provided to any individual for tasting.

(7) The sponsor has provided an individual who has successfully completed the department's enforcement seminar within the preceding three years to be present at all times to monitor the event and ensure compliance with applicable rules and provisions of this chapter.

(c) A person who sponsors an organized event, exhibition or competition under this section or participates in the event as a producer of home-fermented beverages who violates any provision of this section may be fined not more than $1,000.00.

Sec. 6. 7 V.S.A. § 2(31) is added to read:

(31) "Legal age" means 21 years of age or older.

Approved: April 29, 1998