2005 Regular Session
To: Ways and Means
By: Representative Watson
AN ACT TO AMEND SECTION 67-5-11, MISSISSIPPI CODE OF 1972, TO ALLOW NATIVE WINERIES TO SELL NATIVE WINES DIRECTLY TO CONSUMERS IN THIS STATE ONLY AT THE LOCATION OF THE NATIVE WINERY OR ITS IMMEDIATE VICINITY; TO PROHIBIT DIRECT SALES OF NATIVE WINES BY NATIVE WINERIES TO RETAIL PERMITTEES; TO AMEND SECTIONS 67-5-13, 67-1-41, 67-1-43 AND 67-1-45, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 67-5-11, Mississippi Code of 1972, is amended as follows:
67-5-11. * * * Every native winery is authorized to make sales:
(a) To the commission;
(b) Directly to consumers at the location of the native winery or its immediate vicinity; or
(c) To any producer, manufacturer, wholesaler, retailer or consumer located outside the State of Mississippi who is authorized by law to purchase wine.
* * *
SECTION 2. Section 67-5-13, Mississippi Code of 1972, is amended as follows:
67-5-13. (1) Upon every producer holding a permit for the production of native wine, there is hereby levied and imposed for each location for the privilege of engaging and continuing in this state in the production of native wine an annual privilege license tax in an amount equal to Ten Dollars ($10.00) for each ten thousand (10,000) gallons, or any part thereof, of native wine produced by the winery.
(2) There is hereby levied and assessed an excise tax upon each case of native wine sold by a producer to any source to be collected from the producer in the amount provided for in Section 27-71-7, Mississippi Code of 1972. However, native wine produced in Mississippi for export and sale without this state shall not be subject to said excise tax, nor shall such tax accrue or be collected on native wines dispensed, as free samples in quantities of not more than six (6) ounces, in the tasting room of a native winery.
(3) The privilege tax imposed by subsection (1) of this section shall be collected in the same manner as presently provided by law for the collection of other alcoholic beverages. The excise tax imposed by subsection (2) of this section shall be reported monthly by the producer to the commission on all sales made in Mississippi to the commission * * * or consumers * * *, along with a statement of gallonage produced during that month, and the producer shall remit the tax due and owing with each report. The producer shall also include in the report a statement of gallonage sold and exported for sale outside this state.
(4) All taxes levied by and collected under this section shall be deposited in the General Fund.
SECTION 3. Section 67-1-41, Mississippi Code of 1972, is amended as follows:
67-1-41. (1) The State Tax Commission 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 such intoxicating liquors at wholesale within the state, and no person who is granted the right to sell, distribute or receive such liquors at retail shall purchase any such intoxicating liquors from any source other than the commission except as authorized in subsections (4) and (9) of this section and Section 67-5-11, provided that retailers and consumers may purchase native wines directly from the producer. The commission may establish warehouses, purchase intoxicating liquors in such quantities and from such sources as it may deem desirable and sell the same to authorized permittees within the state including, at the discretion of the commission, 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.
The commission is empowered to borrow such working capital as may be required, not to exceed the sum of Nine Hundred Thousand Dollars ($900,000.00). Such loan shall be repaid from the earnings of the wholesale liquor business.
The commission is hereby authorized to use and to promulgate rules for the affixing of identification stamps to each container of alcoholic liquor.
(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 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 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 within a period of time prescribed by the commission.
(5) The commission 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 such individual from the package retailer.
(6) The commission shall maintain all forms to be completed by applicants necessary for licensure by the commission at all district offices of the commission.
(7) The commission 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. 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 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 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. The commission shall develop and provide forms to be completed by the research permittee verifying each transaction. The completed forms shall be forwarded to the commission within a period of time prescribed by the commission. 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 67-1-43, Mississippi Code of 1972, is amended as follows:
67-1-43. Any authorized retail distributor who shall purchase or receive intoxicating liquor from any source except from the commission, unless authorized by rules and regulations of the commission promulgated under subsection (4) of Section 67-1-41, shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than Five Hundred Dollars ($500.00), nor more than Two Thousand Dollars ($2,000.00), to which may be added imprisonment in the county jail for not more than six (6) months. Any authorization of such person to sell intoxicating beverages may be revoked as provided by law.
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SECTION 5. Section 67-1-45, Mississippi Code of 1972, is amended as follows:
67-1-45. No manufacturer, rectifier, or distiller of intoxicating liquor shall sell or attempt to sell any such intoxicating liquor, except malt liquor, within the State of Mississippi, except to the commission, or to the holder of a research permit as provided in Section 67-1-41. However, a producer of native wine may sell native wines to the commission * * * or directly to consumers as provided for in Section 67-5-11.
Any violation of this section by any manufacturer, rectifier, or distiller shall be punished by a fine of not less than Five Hundred Dollars ($500.00), and not more than Two Thousand Dollars ($2,000.00), to which may be added imprisonment in the county jail not to exceed six (6) months.
SECTION 6. This act shall take effect and be in force from and after July 1, 2005.