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S.58

AN ACT RELATING TO DIRECT SHIPPING OF WINE AND BEER

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

Sec. 1.  PURPOSE

The purpose of this act is to make statutory changes in the Vermont shipping laws to equalize all the shipping laws so that Vermont will be in compliance with the federal constitutional requirements regarding direct shipping of alcoholic beverages as laid out in Granholm v. Heald.

Sec. 2.  7 V.S.A. § 67 is added to read:

§ 67.  VINOUS BEVERAGE SHIPPING LICENSE; IN-STATE;

          OUT‑OF‑STATE; PROHIBITIONS; PENALTIES

(a)  A manufacturer or producer of vinous beverages licensed in Vermont may be granted an in-state shipping license by filing with the department of liquor control an application in a form determined by the department accompanied by an application fee of $300.00 and a copy of the applicant’s current Vermont manufacturer’s license.  This shipping license may be renewed annually by filing a renewal fee of $300.00 accompanied by a copy of the licensee’s current Vermont manufacturer’s license.

(b)  A manufacturer or producer of vinous beverages licensed in another state that operates a winery in the United States and holds valid state and federal permits and licenses may be granted an out-of-state shipping license by filing with the department of liquor control an application in a form determined by the department accompanied by a $300.00 application fee and copies of the applicant’s current out-of-state manufacturer’s license.  This shipping license may be renewed annually by filing a renewal fee of $300.00 accompanied by the licensee’s current out-of-state manufacturer’s license.  As used in this section, “out-of-state” means any state other than Vermont, any territory, or possession of the United States, but does not include a foreign country.

(c)  A holder of any license issued under this section shall:

(1)  Ship vinous beverages produced by the licensee to private residences to be used only for personal use and not for resale.

(2)  Ship no more than 24 cases of vinous beverages produced by the license holder to any one Vermont resident in any calendar year.

(3)  Ensure that all containers of alcoholic beverages shipped under this section are clearly labeled:  “CONTAINS ALCOHOL; SIGNATURE OF INDIVIDUAL AGE 21 OR OLDER REQUIRED FOR DELIVERY.”

(4)  Ensure that delivery is made by common carrier only and require that the common carrier:

(A)  Deliver vinous beverages pursuant to an invoice that includes the name of the licensee and the name and address of the purchaser.

(B)  Require valid form of photographic identification from a recipient who appears to be under the age of 30, on delivery.

(C)  Require the recipient to sign an electronic or paper form or other acknowledgement of receipt.

(5)  Retain a copy of each record of sale for a minimum of five years from the date of shipping.

(6)  Report at least twice a year to the department of liquor control in a manner and form determined by the department all the following information:

(A)  The total amount of vinous beverages shipped into or within the state for the preceding six months.

(B)  The names and addresses of the purchasers to whom the vinous beverages were shipped.

(C)  The date purchased, the name of the common carrier used to make each delivery; and the quantity and value of each shipment.

(7)  Pay directly to the commissioner of taxes the amount of tax on the vinous beverages shipped under this section pursuant to chapter 233 of Title 32 and subsection 421(a) of this title.  Delivery in this state by the holder of a license issued under this section shall be deemed to constitute a sale in this state at the place of delivery and shall be subject to all excise and sales taxes levied by the state of Vermont.

(8)  Permit the state treasurer, the department of liquor control, and the department of taxes, separately or jointly, upon request to perform an audit of the records of the holder of a license issued under this section.

(9)  Be deemed to have consented to the jurisdiction of the department of liquor control or any other state agency and the Vermont state courts concerning enforcement of this or other related laws and regulations. 

(10)  Not have any financial interest either directly or indirectly in a Vermont wholesale dealer or retail dealer, including a first, second, or third class license.

(11)  Comply with all liquor control board laws and regulations.

(d)  A common carrier shall not deliver vinous beverages until it has complied with the provisions of subsection 66(e) of this title and be certified by the department of liquor control.  No employee of a common carrier shall deliver vinous beverages until that employee completes the training required by subsection 239(c) of this title.  Common carriers shall only deliver vinous beverages in Vermont that have been shipped by the holder of a license issued under this section.

(e)  The department of liquor control and the department of taxes may adopt rules and forms necessary to implement this section.

(f)  Direct shipments of vinous beverages are prohibited if they are not specifically authorized and in compliance with this section.  Any person who knowingly makes, participates in, imports, or receives a direct shipment of vinous beverages from a person who is not licensed as required by this section may be fined not more than $1,000.00 or imprisoned not more than one year, or both.

(g)  A licensee under this section that ships vinous beverages to an individual under 21 years of age shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned not more than two years, or both.

(h)  For any violation of this section, the board of liquor control may suspend or revoke a license issued under this section, among all other remedies available to the board.

Sec. 3.  7 V.S.A. § 63 is amended to read:

§ 63.  IMPORTATION OR TRANSPORTATION OF LIQUORS;

          PROHIBITIONS; PERSONAL IMPORT LIMIT; PENALTY

(a)  All spirituous liquors imported or transported into this state shall be imported or transported by and through the liquor control board.  A person, partnership, association, or corporation importing or transporting or causing to be imported or transported into this state any spirituous liquors shall be imprisoned not more than one year, or fined not more than $1,000.00, or both. However, it shall be lawful for a person to import or transport spirituous liquor into this state by first obtaining a permit from the liquor control board and a person may import or transport not more than eight quarts of spirituous liquors into this state in his or her own private vehicle or in his or her actual possession at the time of such importation without permit.

(b)  All Except as provided in section 67 of this title, all malt or vinous beverages, or both, imported or transported into this state shall be imported or transported by and through a wholesale dealer holding a wholesale dealer's license issued by the liquor control board.  A person, partnership, association or corporation importing or transporting or causing to be imported or transported into this state any malt or vinous beverages, or both, shall be imprisoned not more than one year or fined not more than $1,000.00, or both. Provided, however, that it shall be lawful for a person to import or transport malt or vinous beverages, or both, into this state by first obtaining a permit from the liquor control board and a person may import or transport not more than six gallons of malt or vinous beverages, or both, into this state in his or her own private vehicle or in his or her actual possession at the time of such importation without permit providing it is not for resale.

Sec. 4.  7 V.S.A. § 2 subdivisions (5) and (17) are amended to read:

(5)  “Cabaret license”: for the purpose of this title shall mean means a first class license or first and third class licenses where the business is devoted primarily to providing entertainment, dancing, and the sale of alcoholic beverages to the public and not the service of food.  The holder of a “cabaret license” shall dispense serve food to the public at all times when open for business and shall have adequate and sanitary space and equipment for preparing and serving food.  However, the gross receipts from the sale of food shall be less than the combined receipts from the sales of alcoholic beverages, entertainment, and dancing in the prior reporting year.  All laws and regulations pertaining to a first class license or first and third class licenses shall apply to the first class or first and third class cabaret licenses.

(17)  “Restaurant”: means a space in a suitable building, approved by the liquor control board, occupied, used, maintained, advertised or held out to the public to be a place where meals are regularly served without at all times when open for business and there are no sleeping accommodations, such space being provided, in the judgment of the board, with.  The space shall have adequate and sanitary kitchen and dining room capacity and having employed therein such the number and kinds of servants and employees as the liquor control board may by regulation prescribe for preparing, cooking, and serving suitable food for its guests and patrons as required by the liquor control board.

Sec. 5.  REPEAL

7 V.S.A. § 66 (shipping permit; vinous beverages; delivery requirements) is repealed.   

 

 



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us