Senate Bill 2278

(As Passed the Senate)

AN ACT TO AUTHORIZE CERTAIN PERSONS DOMICILED OUTSIDE THIS STATE TO LAWFULLY SHIP DIRECTLY TO PACKAGE RETAILERS AND ON-PREMISES RETAILERS; TO PROVIDE THAT SUCH MANUFACTURED WINE MUST BE PURCHASED THROUGH THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE DEPARTMENT OF REVENUE; TO REQUIRE PACKAGE RETAILERS TO PAY THE ALCOHOLIC BEVERAGE CONTROL DIVISION FOR THE MANUFACTURED WINE AND PAY ALL TAXES, FEES AND MARKUPS IMPOSED ON THE MANUFACTURED WINE PRIOR TO ANY SUCH SHIPMENT; TO REQUIRE A PERSON 21 YEARS OF AGE OR OLDER TO SIGN FOR MANUFACTURED WINE SHIPPED TO A PACKAGE RETAILER UNDER THIS ACT; TO REQUIRE SHIPMENTS OF MANUFACTURED WINE INTO THIS STATE UNDER THIS ACT TO BE MADE BY A DULY LICENSED CARRIER; TO MAKE IT CLEAR THAT ALL TAXES, FEES AND SURCHARGES THAT ARE IMPOSED UPON THE SALE OF WINE SHIPPED BY THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE DEPARTMENT OF REVENUE APPLY TO WINE SHIPPED UNDER THIS ACT; TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS ACT; TO AMEND SECTIONS 27-71-15 AND 67-1-41, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Any person who is domiciled outside the State of Mississippi and possesses a valid license or permit in that state to engage in the activity of manufacturing, importing, wholesaling or retailing alcoholic beverages may lawfully ship wines that are ordered for a package retailer by the Alcoholic Beverage Control Division of the Department of Revenue directly to the holder of a package retailer's permit, or an on-premises retailer's permit in this state, without being required to make the shipment through the Alcoholic Beverage Control Division of the Department of Revenue; however, package retailers and on-premises retailers shall pay the division for the manufactured wine and pay all taxes, fees and markups imposed on the manufactured wine prior to such shipment.

(2) (a) A person twenty-one (21) years of age or older must sign for any wine shipped directly to the holder of a package retailer's permit, or an on-premises retailer's permit under this section before delivery, and all shipping containers of manufactured wine shipped under this section shall be conspicuously labeled as follows:

"CONTAINS ALCOHOLIC BEVERAGES--ADULT (21 OR OLDER)

SIGNATURE REQUIRED FOR DELIVERY."

(b) Shipments of manufactured wine into this state under this section shall be made by a duly licensed carrier.

(3) A manufacturer who ships wine under this section shall be deemed to have consented to the jurisdiction of the courts of this state, of the department, of any other state agency regarding the enforcement of this section, and of any related law, rules or regulations.

(4) All taxes, fees and surcharges that are imposed upon the sale of wine shipped by the Alcoholic Beverage Control Division of the Department of Revenue apply to wine shipped under this section.

(5) Any person who makes, participates in, transports, imports or receives a shipment in violation of this section is guilty of a misdemeanor. Each shipment shall constitute a separate offense.

SECTION 2. Section 27-71-15, Mississippi Code of 1972, is amended as follows:

27-71-15. Except as otherwise provided in Section 67-9-1 for the transportation of limited amounts of alcoholic beverages for the use of an alcohol processing permittee and except for manufactured wine shipped under Section 1 of this act, if transportation requires passage through a county which has not authorized the sale of alcoholic beverages, such transportation shall be by a sealed vehicle. Such seal shall remain unbroken until the vehicle shall reach the place of business operated by the permittee. The operator of any vehicle transporting alcoholic beverages shall have in his possession an invoice issued by the * * *~~commission~~ department at the time of the wholesale sale covering the merchandise transported by the vehicle. The * * *~~commission~~ department is authorized to issue regulations controlling the transportation of alcoholic beverages.

When the restrictions imposed by this section and by the regulation of the * * *~~commission~~ department have not been violated, the person transporting alcoholic beverages through a county wherein the sale of alcoholic beverages is prohibited shall not be guilty of unlawful possession and such merchandise shall be immune from seizure.

SECTION 3. Section 67-1-41, Mississippi Code of 1972, is amended as follows:

67-1-41. (1) The * * *~~State Tax Commission~~ Department of Revenue is hereby created a wholesale distributor and seller of alcoholic beverages, not including malt liquors, within the State of Mississippi. It is granted the sole right to import and sell intoxicating liquors at wholesale within the state, and no person who is granted the right to sell, distribute or receive intoxicating liquors at retail shall purchase any intoxicating liquors from any source other than the * * *~~commission~~ department except as authorized in subsections (4) and (9) of this section and Section 1 of this act. The * * *~~commission~~ department may establish warehouses, purchase intoxicating liquors in such quantities and from such sources as it may deem desirable and sell the intoxicating liquors to authorized permittees within the state including, at the discretion of the * * *~~commission~~ department, any retail distributors operating within any military post or qualified resort areas within the boundaries of the state, keeping a correct and accurate record of all such transactions and exercising such control over the distribution of alcoholic beverages as seem right and proper in keeping with the provisions or purposes of this chapter.

(2) No person for the purpose of sale shall manufacture, distill, brew, sell, possess, export, transport, distribute, warehouse, store, solicit, take orders for, bottle, rectify, blend, treat, mix or process any alcoholic beverage except in accordance with authority granted under this chapter, or as otherwise provided by law for native wines.

(3) No alcoholic beverage intended for sale or resale shall be imported, shipped or brought into this state for delivery to any person other than as provided in this chapter, or as otherwise provided by law for native wines.

(4) The * * *~~commission~~ department may promulgate rules and regulations which authorize on-premises retailers to purchase limited amounts of alcoholic beverages from package retailers and for package retailers to purchase limited amounts of alcoholic beverages from other package retailers. The * * *~~commission~~ department shall develop and provide forms to be completed by the on-premises retailers and the package retailers verifying the transaction. The completed forms shall be forwarded to the * * *~~commission~~ department within a period of time prescribed by the * * *~~commission~~ department.

(5) The * * *~~commission~~ department may promulgate rules which authorize the holder of a package retailer's permit to permit individual retail purchasers of packages of alcoholic beverages to return, for exchange, credit or refund, limited amounts of original sealed and unopened packages of alcoholic beverages purchased by the individual from the package retailer.

(6) The * * *~~commission~~ department shall maintain all forms to be completed by applicants necessary for licensure by the * * *~~commission~~ department at all district offices of the * * *~~commission~~ department.

(7) The * * *~~commission~~ department may promulgate rules which authorize the manufacturer of an alcoholic beverage or wine to import, transport and furnish or give a sample of alcoholic beverages or wines to the holders of package retailer's permits, on-premises retailer's permits, native wine retailer's permits and temporary retailer's permits who have not previously purchased the brand of that manufacturer from the * * *~~commission~~ department. For each holder of the designated permits, the manufacturer may furnish not more than five hundred (500) milliliters of any brand of alcoholic beverage and not more than three (3) liters of any brand of wine.

(8) The * * *~~commission~~ department may promulgate rules disallowing open product sampling of alcoholic beverages or wines by the holders of package retailer's permits and permitting open product sampling of alcoholic beverages by the holders of on-premises retailer's permits. Permitted sample products shall be plainly identified "sample" and the actual sampling must occur in the presence of the manufacturer's representatives during the legal operating hours of on-premises retailers.

(9) The * * *~~commission~~ department may promulgate rules and regulations that authorize the holder of a research permit to import and purchase limited amounts of alcoholic beverages from importers, wineries and distillers of alcoholic beverages or from the * * *~~commission~~ department. The * * *~~commission~~ department shall develop and provide forms to be completed by the research permittee verifying each transaction. The completed forms shall be forwarded to the * * *~~commission~~ department within a period of time prescribed by the * * *~~commission~~ department. The records and inventory of alcoholic beverages shall be open to inspection at any time by the Director of the Alcoholic Beverage Control Division or any duly authorized agent.

SECTION 4. Section 1 of this act shall be codified in Chapter 1, Title 67, Mississippi Code of 1972.

SECTION 5. This act shall take effect and be in force from and after July 1, 2018.