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H.682

Introduced by   Representatives Bohi of Hartford and Kainen of Hartford

Referred to Committee on

Date:

Subject:  Alcoholic beverages; malt beverages; Vermont breweries; sale by first class licensees

Statement of purpose:  This bill proposes to permit a Vermont brewery to sell its beer in another first class licensed establishment in which the brewery has a financial interest.

AN ACT RELATING TO VERMONT BREWERIES

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 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, 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 first class and second class licensees, and a licensed manufacturer of malt beverages may sell up to 500 barrels of malt beverages manufactured in Vermont directly to first class licensees in which the manufacturer has an interest as required in section 230 of this title, 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.

Sec. 2.  7 V.S.A. § 230 is amended to read:

§ 230.  RESTRICTIONS; FINANCIAL INTERESTS; DISPLAY OF

            LICENSE; EMPLOYEES

(a)  Except as provided in subdivision 2(15) of this title, a manufacturer or rectifier, bottler or wholesale dealer shall not have any financial interest in the business of a first, second, or third class license, and a first, second, or third class licensee may not have any financial interest in the business of a manufacturer or rectifier, bottler or wholesale dealer.  However, a manufacturer of malt beverages may have a financial interest in the business of a first or second class license, and a first or second class licensee may have a financial interest in the business of a manufacturer of malt beverages, provided a first or the second class licensee does not purchase, possess, or sell the malt beverages produced by a the manufacturer with which there is any financial interest.  A manufacturer may have a financial interest in a first class license, provided that interest is a majority and controlling interest, and the manufacturer may sell the beverages produced by the manufacturer, provided the first class license does not discriminate in favor of the manufacturer’s product.  However, a certificate of approval holder for malt beverages or a certificate of approval holder for vinous beverages who is a manufacturer or rectifier may own a licensed retail business so long as the ownership is total and unconditional.  All licenses or permits granted under this title shall be conspicuously displayed on the premises for which the license or permit is granted.  Any manufacturer of malt beverages that has a financial interest in a first or second class licensee and any first or second class licensee that has a financial interest in a manufacturer of malt beverages, as permitted under this section, shall provide to the department of liquor control and the applicable wholesale dealer written notification of that financial interest and the licensees involved.  A wholesale dealer shall not be in violation of this section for delivering malt beverages to a first or second class licensee that is prohibited from purchasing, possessing, or selling those malt beverages under this section.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us