Download this document in MS Word format


AutoFill Template

H.193

Introduced by   Representatives Obuchowski of Rockingham, Errecart of Shelburne, Darrow of Dummerston, Deen of Westminster and Miller of Elmore

Referred to Committee on

Date:

Subject:  Alcoholic beverages; fortified wine; second class licensees; retail sale; tastings

Statement of purpose:  This bill proposes to:

(1)  Authorize manufacturers and rectifiers of vinous beverages who hold a fourth class license to sell fortified wine by the bottle on their premises.

     (2)  Authorize holders of a second or fourth class license to offer to a customer of legal age, on their premises, with or without charge, fortified wines by the glass, provided that each glass contains no more than one ounce of fortified wine with no customer being served more than four ounces of fortified wine during a single tasting session.

     (3)  Authorize a manufacturer or rectifier of fortified wine to distribute, by request, to the management and staff of a first or second class licensee who are of legal drinking age up to one ounce of fortified wine for the purpose of promoting the beverage.

     (4)  Define fortified wine.

     (5)  Permit the sale of fortified wine by second class licensees.

AN ACT RELATING TO DISTRIBUTION AND SALE OF FORTIFIED WINE

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

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

§ 2.  DEFINITIONS

The following words as used in this title, unless a contrary meaning is required by the context, shall have the following meaning:

* * *

(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 or fortified wine, up to 10 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 26 1/2 cents per gallon for every gallon of malt beverage and the sum of 55 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 or combination thereof held by the manufacturer or rectifier.  Holders of a manufacturer’s or rectifier’s second class or fourth class license may distribute to any individual of legal drinking age on their premises, 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 or fortified wine by the glass, not to exceed one ounce per product or four ounces total.  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, or one ounce of a fortified wine, 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 first class and 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 first class or second class licensee by common carrier or the manufacturer or rectifier’s own vehicles.

* * *

(20)  “Spirits” or “spirituous liquors”:  beverages for sale containing more than one percent of alcohol obtained by distillation, by chemical synthesis, or through concentration by freezing; and vinous beverages containing more than sixteen percent of alcohol; and all vermouths of any alcohol content; malt beverages containing more than eight percent of alcohol or more than six percent of alcohol if the terminal specific gravity thereof is less than 1.009; in each case measured by volume at sixty 60 degrees fahrenheit Fahrenheit.

(21)  “Spirituous liquors”: all spirits as defined in subdivision (20) of this section Fortified wine”:  vinous beverages, including those containing spirits, whose alcoholic content is greater than 16 percent but less than 23 percent per volume at 60 degrees Fahrenheit.

* * *

(23)  “Vinous beverages”:  all fermented beverages of any name or description manufactured or obtained for sale from the natural sugar content of fruits, or other agricultural product, containing sugar, the alcoholic content of which is not less than one percent nor more than sixteen 16 percent by volume at sixty 60 degrees Fahrenheit:  except that all vermouths.  All fortified wines shall be purchased and retailed by and through the liquor control board as authorized in chapter chapters 5 and chapter 7 of this title, and may be sold and distributed as authorized by subdivision (15) of this section.

* * *

(33)  “Fortified wine permit”:   a permit issued by the local control commissioners to a second class licensee that permits the licensee to sell fortified wines on the licensed premises.  A contract agency is not required to have a fortified wine permit in order to sell fortified wine.

Sec. 2.  7 V.S.A. § 112 is amended to read:

§ 112.  LIQUOR CONTROL FUND

The liquor control fund is hereby established.  It shall consist of all receipts from the sale of spirits and other items by the department of liquor control; the tax on fortified wines required in section 422 of this title; fees paid to the department of liquor control for the benefit of the department; all other amounts received by the department of liquor control for its benefit; and all amounts which are from time to time that are appropriated to the department of liquor control.  All expenses incurred by the department in the carrying out of its duties, responsibilities, business, and activities, as authorized by law, shall be paid from the liquor control fund.

Sec. 3.  7 V.S.A. § 222 is amended to read:

§ 222.  FIRST AND SECOND CLASS LICENSES, GRANTING OF; SALE

            TO MINORS; CONTRACTING FOR FOOD SERVICE

With the approval of the liquor control board, the control commissioners may grant to a retail dealer in respect to the following licenses to carry on business for that premises wherein the dealer shall carry on business the following:

(1)  Upon making application and paying the license fee provided in section 231 of this title, a first class license for the premises where such dealer shall carry on the business which shall authorize such that authorizes the retail dealer to sell malt and vinous beverages for consumption only on such the premises, and upon satisfying the liquor control board that such the premises are leased, rented, or owned by such the retail dealer and are devoted primarily to dispensing food as meals to the public, except clubs and cabarets, and that such the premises have adequate and sanitary space and equipment devoted to preparing and serving meals.  The term “public” shall include any part of the public as is represented by patrons of hotels, boarding houses, restaurants, dining cars and similar places where meals are served.  A retail dealer carrying on business in more than one place shall be required to acquire a first class license for each place premises where he shall so sell malt and vinous beverages are sold.  No malt or vinous beverages shall be sold by a first class licensee to a minor.  Partially consumed bottles of vinous beverages that were purchased with a meal may be removed from first class licensed premises provided the beverages are recapped or resealed.

(2)  Upon making application and paying the license fee provided in section 231 of this title, a second class license for the premises where such dealer shall carry on the business which shall authorize such that authorizes the retail dealer to sell malt and vinous beverages to the public from such premises for consumption off the premises and upon satisfying the liquor control board that such premises are leased, rented or owned by such retail dealers and are safe, sanitary and a proper place from which to sell malt and vinous beverages.  A second class licensee may not sell fortified wine unless the licensee also holds a fortified wine permit.  A retail dealer carrying on business in more than one place shall be required to acquire a second class license for each place where he shall so sell premises where malt and vinous beverages are soldNo malt or vinous beverages shall be sold by a second class licensee to a minor.

* * *

(5)  A fortified wine permit that authorizes a second class license holder to sell fortified wines, provided the second class licensee has filed an application accompanied by the license fee required in section 231 of this title, and satisfied the control commissioners of both the following:

(A)  The applicant stocks and offers for sale at least 250 different labels of vinous beverages.

(B)  That vinous beverages comprise at least five percent of the total retail sales of all the items sold by the licensee on the licensed premises.


Sec. 4.  7 V.S.A. § 231 is amended to read:

§ 231.  FEES FOR LICENSES

The following fees shall be paid:

* * *

(15)  For a wine tasting permit, $15.00;

(16)  For a fortified wine permit, $100.00.

Sec. 5.  7 V.S.A. § 232 is amended to read:

§ 232.  PAYMENT OF FEES; WHERE MADE; TERMS

All fees for manufacturers’ or rectifiers’ licenses, bottlers’ licenses, wholesale dealers’ licenses, fortified wine permits, nine percent of the fees for caterers’ licenses, and 39 percent of the third class license fees, shall be retained by the department of liquor control.  The amount of 91 percent of the fees for caterers’ permits and 61 percent of the third class license fees, shall be paid to the state of Vermont for the benefit of the state.  All fees for the first and second class licenses shall be paid to the respective towns and cities wherein the premises are situated for which licenses are granted for the benefit of such respective towns or cities in which the premises for which the license is issued are located.  All permits and licenses shall expire midnight, April 30, of each year and, upon the payment of a new fee, may be renewed by the control commissioners with the approval of the liquor control board as provided in section 222 of this title, provided the licensee is entitled thereto.

Sec. 6.  7 V.S.A. § 422 is amended to read:

§ 422.  TAX ON SPIRITUOUS LIQUOR

A tax of twenty-five 25 percent of the gross revenues is hereby assessed on the sale of spirituous liquor and fortified wines as defined in section 2 of this title other than fortified wine, sold by or through the liquor control board in accordance with the provisions of this title.  A tax of twenty-five percent of the gross revenues is hereby assessed on the sale of fortified wine so sold.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us