Adopted

AMENDMENT NO 1 PROPOSED TO

Cmte Sub for Senate Bill No. 2534

BY: Senator(s) Harkins

     Amend by striking all after the enacting clause and inserting in lieu thereof the following:

     SECTION 1.  The following shall be codified as Section 67-1-42, Mississippi Code of 1972:

67-1-42.  (1)  A wine retailer located within the United States may obtain a direct wine shipper's permit if it meets the requirements and qualifications set forth by this section.  Before shipping any wine to a Mississippi resident, the applicant shall:

          (a)  File an application on a form as prescribed by the department.

          (b)  Include the permit fee of One Hundred Dollars ($100.00), which shall be for a period of twelve (12) calendar months.

          (c)  Include a true copy of its current retailer permit.  Criminal background checks are not required of applicants licensed in their state of domicile who provide a certificate of good standing from their state of domicile, including a copy of the applicable alcoholic beverage permit or license issued by their state of domicile.

          (d)  If the applicant intends to utilize the services of a fulfillment company, then such applicant shall provide the division all information regarding this agreement including the fulfillment company's home state license, an agreement to provide any records prescribed by the division, and a copy of the contract with the fulfillment company.  No direct shipper may avoid liability under this section by subcontracting with a third party to perform its obligations required pursuant to this section.

          (e)  Consent to the jurisdiction of the department and the division, or any other state agency, and Mississippi courts regarding the enforcement of this section and any related laws, rules or regulations.

          (f)  Provide and maintain with the division a listing of the permitted delivery agents used to deliver products into Mississippi.

          (g)  Provide other information determined appropriate by the division.

          (h)  Agree that terms and conditions of delivery or sale between it and the consumer will not alter its legal responsibilities under this section.

     (2)  Permits issued under this section are nontransferable.  The direct wine shipper may annually renew its permit with the division by paying a renewal fee of One Hundred Dollars ($100.00) and providing the division with any information determined necessary.

     (3)  Before a direct wine shipper's permit is issued, the division shall satisfy itself that:

          (a)  The applicant is the true and actual owner of the wine retailer who intends to ship wine products to households in Mississippi.

          (b)  The applicant has not been convicted of a violation of any federal or state law concerning the sale or manufacture of alcoholic beverages and has not been convicted of a felony in any state or federal court.  The applicant shall not have been in violation of direct shipping laws of any state or jurisdiction.

          (c)  Criminal background checks are not required of applicants licensed in their state of domicile who provide a certificate of good standing from their state of domicile, including a copy of the applicable alcoholic beverage permit or license issued by their state of domicile.  Additionally, unless the department has reason to believe otherwise, a copy of the applicable alcoholic beverage permit or license issued by the state of domicile shall serve to satisfy the requirements of paragraphs (a) and (b) of this subsection.

          (d)  The applicant holds a Mississippi Sales Tax Permit issued by the department.

          (e)  The applicant is not delinquent in the payment of any Mississippi tax.

     Any person who makes any false statement concerning any material fact when submitting an application for a permit or for the renewal of a permit shall be disqualified from holding a permit under this section.

     (4)  The direct shipment of wine pursuant to this section shall be subject to the following requirements:

          (a)  The holder of the direct wine shipper's permit and the holder of a wine delivery permit must comply with all applicable requirements of Mississippi law and the rules of the division.

          (b)  The consumer may only place orders with the direct wine shipper in person or over the telephone after an account has been set up by the consumer in person, and the direct wine shipper may only ship or deliver its products to households through a delivery agent.

          (c)  The direct wine shipper may only contract with delivery agents who are permitted by the division and who agree to obtain the signature of the person to whom the wine is being delivered after verifying that the person is twenty-one (21) years of age or older at delivery.

          (d)  At the time of purchase of wine or the setting up of an account for the purchase of wine, the direct wine shipper shall require the prospective customer to provide evidence through a proper identification to show that he or she is twenty-one (21) years of age or older.

          (e)  All shipping boxes of wine must be conspicuously labeled as containing wine products and must contain the return address of the direct wine shipper.  All containers of wine shall be labeled with the words, "CONTAINS WINE:  FOR PERSONAL USE AND NOT FOR RESALE.  SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY.  DELIVERY TO AN INTOXICATED PERSON IS FORBIDDEN BY LAW."

          (f)  The direct wine shipper shall be responsible for collecting and paying all applicable Mississippi markups, taxes and fees on the wine that are imposed upon the sale of wine shipped by the department.  For excise tax purposes, all wine sold pursuant to a direct shipper permit shall be deemed to be wine sold in this state.  It shall be the responsibility of the direct wine shipper to remit all applicable markups, taxes and fees to Mississippi.  Sales made by a direct wine shipper located out-of-state shall be deemed to have been made in the State of Mississippi for delivery in the State of Mississippi.

          (g)  The direct wine shipper is to report all sales made through the department's online filing system no later than the twentieth day of the succeeding month in which sales were made.  The direct wine shipper shall report and pay to the division the taxes and fees due on all sales made to households in Mississippi during the preceding month including sales taxes imposed in Section 27-65-17, excise taxes imposed in Section 27-71-7, and the markup charge imposed in Section 27-71-11, which amount shall be based on the purchase price of the wine sold.

          (h)  The direct wine shipper shall keep Mississippi sales records for three (3) years and permit the department to perform an audit of such records upon request.

     (5)  (a)  Wine directly shipped to a Mississippi household may be delivered only by a delivery agent that has obtained a wine delivery permit allowing wine shipments to Mississippi households.  Any delivery agent may apply for the wine delivery permit by filing an application on a form prescribed by the department.  Any delivery agent transporting wine within this state without a valid wine delivery permit will be subject to applicable criminal charges and will be ineligible to receive a wine delivery permit for one (1) year.

          (b)  There is no fee for the wine delivery permit; however, as a condition of the permit, wine delivery agents are required to maintain records of wine shipments, including the name of the direct wine shipper, the quantity of wine shipped, and the recipient's name and address.  Shipment records shall be submitted in electronic format to the division annually on or before February 25 of each year.  The division shall maintain a list of all permitted wine delivery agents, and this list may be distributed to the public.

          (c)  The wine delivery agent shall make only face-to-face delivery of wine and shall agree to check the identification of recipients at the time of delivery to ensure that the recipient is the person who ordered the wine and is twenty-one (21) years of age or older.  The wine delivery agent shall refuse delivery when the proposed recipient refuses or is unable to present photographic identification issued by a state or federal government.

          (d)  Any delivery agent that willfully fails to submit records in accordance with this section, fails to obtain a wine delivery permit prior to transporting wine, or otherwise violates this section or applicable regulations is subject to a notification of violation.  If a delivery agent thereafter fails to make reports or otherwise violates this section or applicable regulations, the delivery agent shall be administratively fined in an amount not to exceed Five Hundred Dollars ($500.00) for each delivery not reported or each violation thereafter.  If such fines are issued, the delivery agent may not deliver wine to consumers until such time as the fines are fully paid.  If a delivery agent violates this section or applicable regulations three (3) separate times in any twelve-month period, the delivery agent's permit will be revoked, and the delivery agent will be ineligible to receive another permit for one (1) year.

     (6)  The department shall refuse to issue a permit to an applicant if it finds that such applicant is not qualified pursuant to the provisions of this section.  Upon refusal to issue the permit, the department shall notify the applicant, and the refusal shall be final unless a hearing is requested in accordance with the provisions of Title 67, Chapter 1, Mississippi Code of 1972.

     (7)  (a)  If any permit holder under this section violates any provision of this section, or if the department finds the existence of any ground on which a permit could have been refused if the permit holder were then applying for a permit, the department shall suspend or revoke the permit of said person or entity, who shall not be permitted to sell, ship or deliver any wine to this state or engage in the wine business in this state for a period of suspension up to six (6) months or upon revocation until such time as the permittee successfully obtains a new permit.  Further, the subject revocation may serve as a basis for the revocation or suspension of any other permit issued to the person by the division.  Once the decision becomes final, the department shall send a copy of the order to all applicable state alcoholic beverage licensing authorities that have licensed the person or entity to sell or manufacture alcoholic beverages.

          (b)  Hearings and appeals may be had in the same manner as in the case of suspensions and revocations of permits under Title 67, Chapter 1, Mississippi Code of 1972; however, the privilege of the person to sell, ship or deliver wine to this state shall be suspended until a final order is rendered on the matter.

          (c)  The division may accept payment of an offer in compromise in lieu of suspension, such payments to be determined by rule promulgated by the department.

     (8)  (a)  Shipments of wine to households in Mississippi from any entity that does not possess a current direct wine shipper's permit are prohibited.  Direct wine shippers may only contract for shipment into Mississippi with delivery agents who hold a valid wine delivery permit.

          (b)  Any person or entity who receives a shipment in violation of paragraph (a) of this subsection is guilty of a misdemeanor and shall be punished by a fine of not less than Two Hundred Dollars ($200.00) or more than Five Hundred Dollars ($500.00) for the first offense, or by a fine of not less than Five Hundred Dollars ($500.00) or more than One Thousand Five Hundred Dollars ($1,500.00), or by imprisonment in the county jail for not less than fifteen (15) days or more than six (6) months, or by both such fine and imprisonment, for a second or subsequent offense.

          (c)  The sale and shipment of wine without a valid direct wine shipper's permit, even with no criminal conviction, shall constitute an administrative violation which may result in the nonregistered seller or shipper being prohibited from selling wine in or exporting wine to the State of Mississippi for one (1) year from the date the decision becomes final.  The department shall send notice of such violation to the nonregistered wine seller or shipper via certified mail, return receipt requested.  If the notice may not be given via certified mail because of refusal, failure to claim, insufficient address or any other reason, the department shall provide notice by publication in the county in which the wine was delivered or addressed to be delivered for two (2) consecutive weeks.  The nonregistered wine manufacturer or seller to whom the notice is addressed may initiate an appeal of the decision by filing a written request for a hearing with the Executive Director of the Mississippi Board of Tax Appeals, with a copy being sent to the department within fifteen (15) days after receipt of the certified letter or fifteen (15) days after the first publication notice.  If the person or entity fails to make such a request within the applicable fifteen (15) days, the decision shall become final, and the department shall send notification of such violation to any known alcoholic beverage licensing authorities that have licensed the person or entity to manufacture or sell alcoholic beverages.

     (9)  All administrative provisions of the Mississippi Sales Tax Law shall apply with like force and effect to all persons liable for taxes under the provisions of this section, and the department shall exercise all power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the Mississippi Sales Tax Law.  In case of conflict between the provisions of this section and any provision in the Mississippi Sales Tax Law, the provisions of this section shall control.  However, this section shall not be construed as prohibiting the department from publishing information accessible by the public relating to the identity of entities or persons holding direct wine shipper's permits or wine delivery permits, or relating to the status of such permits.

     (10)  The department may promulgate rules and regulations not inconsistent with this section as it deems necessary to effectuate the purposes and provisions of this section.

     SECTION 2.  Section 67-1-3, Mississippi Code of 1972, is amended as follows:

     67-1-3.  The policy of this state is reannounced in favor of prohibition of the manufacture, sale, distribution * * *, possession and transportation of * * * intoxicating liquor alcoholic beverages; and the provisions against such manufacture, sale, distribution * * *, possession and transportation of * * * intoxicating liquor alcoholic beverages, as contained in Chapter 31 of Title 97, Mississippi Code of 1972 and elsewhere, are hereby redeclared the law of this state.  The purpose and intent of this chapter is to vigorously enforce the prohibition laws throughout the state, except in those counties and municipalities voting themselves out from under the prohibition law in accordance with the provisions of this chapter, and, in those counties and municipalities, to require strict regulation and supervision of the manufacture, sale, distribution * * *, possession and transportation of * * * intoxicating liquor alcoholic beverages under a system of state licensing of manufacturers, wholesalers and retailers, which licenses shall be subject to revocation for violations of this chapter.  However, from and after July 1, 2020, prohibition is renounced as to the possession of alcoholic beverages.  It shall thereafter be lawful to possess alcoholic beverages throughout the state, unless otherwise prohibited in this chapter.  Nothing herein shall be construed to make lawful the possession of alcoholic beverages with the intent to sell except as authorized under this chapter.

     All laws and parts of laws in conflict with this chapter are repealed only to the extent of such conflict; however, except as is provided in this chapter, all laws prohibiting the manufacture, sale, and distribution * * * and possession of alcoholic beverages, which are not in conflict with this chapter shall remain in full force and effect, and all such laws shall remain in full force and effect in counties and municipalities wherein the manufacture, sale, and distribution * * * and possession of alcoholic beverages has not been authorized as a result of an election held under Section 67-1-11 or Section 67-1-14, Mississippi Code of 1972, or as otherwise provided in this chapter.

     SECTION 3.  Section 67-1-7, Mississippi Code of 1972, is amended as follows:

     67-1-7.  (1)  Except as otherwise provided in Section 67-9-1 for the transportation * * * and possession of limited amounts of alcoholic beverages for the use of an alcohol processing permittee, and subject to all of the provisions and restrictions contained in this chapter, the manufacture, sale, distribution * * *, possession and transportation of alcoholic beverages shall be lawful, subject to the restrictions hereinafter imposed, in those counties and municipalities of this state in which, at a local option election called and held for that purpose under the provisions of this chapter, a majority of the qualified electors voting in such election shall vote in favor thereof. * * *  Except as otherwise provided in Section 67‑1‑51 for holders of a caterer's permit, the manufacture, sale and distribution of alcoholic beverages shall not be permissible or lawful in counties except in (a) incorporated municipalities located within such counties, (b) qualified resort areas within such counties approved as such by the State Tax Commission, or (c) clubs within such counties, whether within a municipality or not.  The manufacture, sale, and distribution * * * and possession of native wines shall be lawful in any location within any such county except those locations where the manufacture, sale or distribution is prohibited by law other than this section or by regulations of the * * * commission department.

     (2)  Notwithstanding the foregoing, within any state park or any state park facility that has been declared a qualified resort area by the commission, and within any qualified resort area as defined under Section 67-1-5(o)(iii), an on-premises retailer's permit may be issued for the qualified resort area, and the permittee may lawfully sell alcoholic beverages for consumption on his licensed premises regardless of whether or not the county or municipality in which the qualified resort area is located has voted in favor of coming out from under the dry law, and it shall be lawful to receive, store, sell, possess and consume alcoholic beverages on the licensed premises, and to sell, distribute and transport alcoholic beverages to the licensed premises.

     SECTION 4.  Section 67-1-5, Mississippi Code of 1972, is amended as follows:

     67-1-5.  For the purposes of this chapter and unless otherwise required by the context:

          (a)  "Alcoholic beverage" means any alcoholic liquid, including wines of more than five percent (5%) of alcohol by weight, capable of being consumed as a beverage by a human being, but shall not include light wine and beer, as defined in Section 67-3-3, Mississippi Code of 1972, but shall include native wines.  The words "alcoholic beverage" shall not include ethyl alcohol manufactured or distilled solely for fuel purposes or beer of an alcoholic content of more than eight percent (8%) by weight if the beer is legally manufactured in this state for sale in another state.

          (b)  "Alcohol" means the product of distillation of any fermented liquid, whatever the origin thereof, and includes synthetic ethyl alcohol, but does not include denatured alcohol or wood alcohol.

          (c)  "Distilled spirits" means any beverage containing more than four percent (4%) of alcohol by weight produced by distillation of fermented grain, starch, molasses or sugar, including dilutions and mixtures of these beverages.

          (d)  "Wine" or "vinous liquor" means any product obtained from the alcoholic fermentation of the juice of sound, ripe grapes, fruits, honey or berries and made in accordance with the revenue laws of the United States.

          (e)  "Person" means and includes any individual, partnership, corporation, association or other legal entity whatsoever.

          (f)  "Manufacturer" means any person engaged in manufacturing, distilling, rectifying, blending or bottling any alcoholic beverage.

          (g)  "Wholesaler" means any person, other than a manufacturer, engaged in distributing or selling any alcoholic beverage at wholesale for delivery within or without this state when such sale is for the purpose of resale by the purchaser.

          (h)  "Retailer" means any person who sells, distributes, or offers for sale or distribution, any alcoholic beverage for use or consumption by the purchaser and not for resale.

          (i)  "State Tax Commission," "commission" or "department" means the Department of Revenue of the State of Mississippi, which shall create a division in its organization to be known as the Alcoholic Beverage Control Division.  Any reference to the commission or the department hereafter means the powers and duties of the Department of Revenue with reference to supervision of the Alcoholic Beverage Control Division.

          (j)  "Division" means the Alcoholic Beverage Control Division of the Department of Revenue.

          (k)  "Municipality" means any incorporated city or town of this state.

          (l)  "Hotel" means an establishment within a municipality, or within a qualified resort area approved as such by the department, where, in consideration of payment, food and lodging are habitually furnished to travelers and wherein are located at least twenty (20) adequately furnished and completely separate sleeping rooms with adequate facilities that persons usually apply for and receive as overnight accommodations.  Hotels in towns or cities of more than twenty-five thousand (25,000) population are similarly defined except that they must have fifty (50) or more sleeping rooms.  Any such establishment described in this paragraph with less than fifty (50) beds shall operate one or more regular dining rooms designed to be constantly frequented by customers each day.  When used in this chapter, the word "hotel" shall also be construed to include any establishment that meets the definition of "bed and breakfast inn" as provided in this section.

          (m)  "Restaurant" means:

              (i)  A place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation, which has suitable seating facilities for guests, and which has suitable kitchen facilities connected therewith for cooking an assortment of foods and meals commonly ordered at various hours of the day; the service of such food as sandwiches and salads only shall not be deemed in compliance with this requirement.  Except as otherwise provided in this paragraph, no place shall qualify as a restaurant under this chapter unless twenty-five percent (25%) or more of the revenue derived from such place shall be from the preparation, cooking and serving of meals and not from the sale of beverages, or unless the value of food given to and consumed by customers is equal to twenty-five percent (25%) or more of total revenue; or

              (ii)  Any privately owned business located in a building in a historic district where the district is listed in the National Register of Historic Places, where the building has a total occupancy rating of not less than one thousand (1,000) and where the business regularly utilizes ten thousand (10,000) square feet or more in the building for live entertainment, including not only the stage, lobby or area where the audience sits and/or stands, but also any other portion of the building necessary for the operation of the business, including any kitchen area, bar area, storage area and office space, but excluding any area for parking.  In addition to the other requirements of this subparagraph, the business must also serve food to guests for compensation within the building and derive the majority of its revenue from event-related fees, including, but not limited to, admission fees or ticket sales to live entertainment in the building, and from the rental of all or part of the facilities of the business in the building to another party for a specific event or function.

          (n)  "Club" means an association or a corporation:

              (i)  Organized or created under the laws of this state for a period of five (5) years prior to July 1, 1966;

              (ii)  Organized not primarily for pecuniary profit but for the promotion of some common object other than the sale or consumption of alcoholic beverages;

              (iii)  Maintained by its members through the payment of annual dues;

              (iv)  Owning, hiring or leasing a building or space in a building of such extent and character as may be suitable and adequate for the reasonable and comfortable use and accommodation of its members and their guests;

              (v)  The affairs and management of which are conducted by a board of directors, board of governors, executive committee, or similar governing body chosen by the members at a regular meeting held at some periodic interval; and

              (vi)  No member, officer, agent or employee of which is paid, or directly or indirectly receives, in the form of a salary or other compensation any profit from the distribution or sale of alcoholic beverages to the club or to members or guests of the club beyond such salary or compensation as may be fixed and voted at a proper meeting by the board of directors or other governing body out of the general revenues of the club.

     The department may, in its discretion, waive the five-year provision of this paragraph.  In order to qualify under this paragraph, a club must file with the department, at the time of its application for a license under this chapter, two (2) copies of a list of the names and residences of its members and similarly file, within ten (10) days after the election of any additional member, his name and address.  Each club applying for a license shall also file with the department at the time of the application a copy of its articles of association, charter of incorporation, bylaws or other instruments governing the business and affairs thereof.

          (o)  "Qualified resort area" means any area or locality outside of the limits of incorporated municipalities in this state commonly known and accepted as a place which regularly and customarily attracts tourists, vacationists and other transients because of its historical, scenic or recreational facilities or attractions, or because of other attributes which regularly and customarily appeal to and attract tourists, vacationists and other transients in substantial numbers; however, no area or locality shall so qualify as a resort area until it has been duly and properly approved as such by the department.  The department may not approve an area as a qualified resort area after July 1, 2018, if any portion of such proposed area is located within two (2) miles of a convent or monastery that is located in a county traversed by Interstate 55 and U.S. Highway 98.  A convent or monastery may waive such distance restrictions in favor of allowing approval by the department of an area as a qualified resort area.  Such waiver shall be in written form from the owner, the governing body, or the appropriate officer of the convent or monastery having the authority to execute such a waiver, and the waiver shall be filed with and verified by the department before becoming effective.

              (i)  The department may approve an area or locality outside of the limits of an incorporated municipality that is in the process of being developed as a qualified resort area if such area or locality, when developed, can reasonably be expected to meet the requisites of the definition of the term "qualified resort area."  In such a case, the status of qualified resort area shall not take effect until completion of the development.

              (ii)  The term includes any state park which is declared a resort area by the department; however, such declaration may only be initiated in a written request for resort area status made to the department by the Executive Director of the Department of Wildlife, Fisheries and Parks, and no permit for the sale of any alcoholic beverage, as defined in this chapter, except an on-premises retailer's permit, shall be issued for a hotel, restaurant or bed and breakfast inn in such park.

              (iii)  The term includes:

                   1.  The clubhouses associated with the state park golf courses at the Lefleur's Bluff State Park, the John Kyle State Park, the Percy Quin State Park and the Hugh White State Park;

                   2.  The clubhouse and associated golf course where the golf course is adjacent to one or more planned residential developments and the golf course and all such developments collectively include at least seven hundred fifty (750) acres and at least four hundred (400) residential units;

                    3.  Any facility located on property that is a game reserve with restricted access that consists of at least three thousand (3,000) contiguous acres with no public roads and that offers as a service hunts for a fee to overnight guests of the facility;

                    4.  Any facility located on federal property surrounding a lake and designated as a recreational area by the United States Army Corps of Engineers that consists of at least one thousand five hundred (1,500) acres;

                   5.  Any facility that is located in a municipality that is bordered by the Pearl River, traversed by Mississippi Highway 25, adjacent to the boundaries of the Jackson International Airport and is located in a county which has voted against coming out from under the dry law; however, any such facility may only be located in areas designated by the governing authorities of such municipality;

                   6.  Any municipality with a population in excess of ten thousand (10,000) according to the latest federal decennial census that is located in a county that is bordered by the Pearl River and is not traversed by Interstate Highway 20, with a population in excess of forty-five thousand (45,000) according to the latest federal decennial census; however, the governing authorities of such a municipality may by ordinance: 

                        a.  Specify the hours of operation of facilities that offer alcoholic beverages for sale;

                        b.  Specify the percentage of revenue that facilities that offer alcoholic beverages for sale must derive from the preparation, cooking and serving of meals and not from the sale of beverages;

                        c.  Designate the areas in which facilities that offer alcoholic beverages for sale may be located;

                   7.  The West Pearl Restaurant Tax District as defined in Chapter 912, Local and Private Laws of 2007;

                   8.  a.  Land that is located in any county in which Mississippi Highway 43 and Mississippi Highway 25 intersect and:

                             A.  Owned by the Pearl River Valley Water Supply District, and/or

                             B.  Located within the Reservoir Community District, zoned commercial, east of Old Fannin Road, north of Regatta Drive, south of Spillway Road, west of Hugh Ward Boulevard and accessible by Old Fannin Road, Spillway Road, Spann Drive and/or Lake Vista Place, and/or

                             C.  Located within the Reservoir Community District, zoned commercial, west of Old Fannin Road, south of Spillway Road and extending to the boundary of the corporate limits of the City of Flowood, Mississippi;

                        b.  The board of supervisors of such county, with respect to B and C of this item 8, may by resolution or other order:

                             A.  Specify the hours of operation of facilities that offer alcoholic beverages for sale,

                             B.  Specify the percentage of revenue that facilities that offer alcoholic beverages for sale must derive from the preparation, cooking and serving of meals and not from the sale of beverages, and

                             C.  Designate the areas in which facilities that offer alcoholic beverages for sale may be located;

                   9.  Any facility located on property that is a game reserve with restricted access that consists of at least eight hundred (800) contiguous acres with no public roads, that offers as a service hunts for a fee to overnight guests of the facility, and has accommodations for at least fifty (50) overnight guests;

                   10.  Any facility that:

                        a.  Consists of at least six thousand (6,000) square feet being heated and cooled along with an additional adjacent area that consists of at least two thousand two hundred (2,200) square feet regardless of whether heated and cooled,

                        b.  For a fee is used to host events such as weddings, reunions and conventions,

                        c.  Provides lodging accommodations regardless of whether part of the facility and/or located adjacent to or in close proximity to the facility, and

                        d.  Is located on property that consists of at least thirty (30) contiguous acres;

                   11.  Any facility and related property:

                        a.  Located on property that consists of at least one hundred twenty-five (125) contiguous acres and consisting of an eighteen (18) hole golf course, and/or located in a facility that consists of at least eight thousand (8,000) square feet being heated and cooled,

                        b.  Used for the purpose of providing meals and hosting events, and

                        c.  Used for the purpose of teaching culinary arts courses and/or turf management and grounds keeping courses, and/or outdoor recreation and leadership courses;

                   12.  Any facility and related property that:

                        a.  Consist of at least eight thousand (8,000) square feet being heated and cooled,

                        b.  For a fee is used to host events,

                        c.  Is used for the purpose of culinary arts courses, and/or outdoor recreation and leadership courses;

                   13.  The clubhouse and associated golf course where the golf course is adjacent to one or more residential developments and the golf course and all such developments collectively include at least two hundred (200) acres and at least one hundred fifty (150) residential units and are located a. in a county that has voted against coming out from under the dry law; and b. outside of but in close proximity to a municipality in such county which has voted under Section 67-1-14, after January 1, 2013, to come out from under the dry law;

                   14.  The clubhouse and associated eighteen (18) hole golf course located in a municipality traversed by Interstate Highway 55 and U.S. Highway 51 that has voted to come out from under the dry law;

                   15.  Land that is planned for mixed use development and consists of at least two hundred (200) contiguous acres with one or more planned residential developments collectively planned to include at least two hundred (200) residential units when completed and which land is located:

                        a.  In a county that has voted to come out from under the dry law,

                        b.  Outside the corporate limits of any municipality in such county and adjacent to or in close proximity to a golf course located in a municipality in such county, and

                        c.  Within one (1) mile of a state institution of higher learning.

     The status of these municipalities, districts, clubhouses, facilities, golf courses and areas described in subparagraph (iii) of this paragraph (o) as qualified resort areas does not require any declaration of same by the department.

          (p)  "Native wine" means any product, produced in Mississippi for sale, having an alcohol content not to exceed twenty-one percent (21%) by weight and made in accordance with revenue laws of the United States, which shall be obtained primarily from the alcoholic fermentation of the juice of ripe grapes, fruits, berries or vegetables grown and produced in Mississippi; provided that bulk, concentrated or fortified wines used for blending may be produced without this state and used in producing native wines.  The department shall adopt and promulgate rules and regulations to permit a producer to import such bulk and/or fortified wines into this state for use in blending with native wines without payment of any excise tax that would otherwise accrue thereon.

          (q)  "Native winery" means any place or establishment within the State of Mississippi where native wine is produced, in whole or in part, for sale.

          (r)  "Bed and breakfast inn" means an establishment within a municipality where in consideration of payment, breakfast and lodging are habitually furnished to travelers and wherein are located not less than eight (8) and not more than nineteen (19) adequately furnished and completely separate sleeping rooms with adequate facilities, that persons usually apply for and receive as overnight accommodations; however, such restriction on the minimum number of sleeping rooms shall not apply to establishments on the National Register of Historic Places.  No place shall qualify as a bed and breakfast inn under this chapter unless on the date of the initial application for a license under this chapter more than fifty percent (50%) of the sleeping rooms are located in a structure formerly used as a residence.

          (s)  "Board" shall refer to the Board of Tax Appeals of the State of Mississippi.

          (t)  "Spa facility" means an establishment within a municipality or qualified resort area and owned by a hotel where, in consideration of payment, patrons receive from licensed professionals a variety of private personal care treatments such as massages, facials, waxes, exfoliation and hairstyling.

          (u)  "Art studio or gallery" means an establishment within a municipality or qualified resort area that is in the sole business of allowing patrons to view and/or purchase paintings and other creative artwork.

          (v)  "Cooking school" means an establishment within a municipality or qualified resort area and owned by a nationally recognized company that offers an established culinary education curriculum and program where, in consideration of payment, patrons are given scheduled professional group instruction on culinary techniques.  For purposes of this paragraph, the definition of cooking school shall not include schools or classes offered by grocery stores, convenience stores or drugstores.

          (w)  "Campus" means property owned by a public school district, community or junior college, college or university in this state where educational courses are taught, school functions are held, tests and examinations are administered or academic course credits are awarded; however, the term shall not include any "restaurant" or "hotel" that is located on property owned by a community or junior college, college or university in this state, and is operated by a third party who receives all revenue generated from food and alcoholic beverage sales.

(x)  "Wine retailer" means an entity or person that lawfully sells wine, sealed for off-premises consumption, through a brick-and-mortar store.

(y)  "Direct wine shipper" means a wine retailer permitted by the appropriate state alcohol regulatory body in its state of operation and holding a Mississippi direct wine shipper's permit issued by the department.

(z)  "Household" means a home and includes all persons living together in the same dwelling or housing unit which has a permanent street address.

(aa)  "Fulfillment company" means a third party acting as an agent for and under the wine retailer's direction and control who receives orders for, packs and ships wine on behalf of the wine retailer.

     SECTION 5.  Section 67-1-9, Mississippi Code of 1972, is amended as follows:

     67-1-9.  (1)  It shall be unlawful for any person to manufacture, distill, brew, sell * * *, possess, import into this state, export from the state, transport, distribute, warehouse, store, solicit, take order for, bottle, rectify, blend, treat, mix or process any alcoholic beverage except as authorized in this chapter.  However, nothing contained herein shall prevent importers, wineries and distillers of alcoholic beverages from storing such alcoholic beverages in private bonded warehouses located within the State of Mississippi for the ultimate use and benefit of the Department of Revenue as provided in Section 67-1-41.  The department is hereby authorized to promulgate rules and regulations for the establishment of such private bonded warehouses and for the control of alcoholic beverages stored in such warehouses.  Additionally, nothing herein contained shall prevent any duly licensed practicing physician or dentist from possessing or using alcoholic liquor in the strict practice of his profession, or prevent any hospital or other institution caring for sick and diseased persons, from possessing and using alcoholic liquor for the treatment of bona fide patients of such hospital or other institution.  Any drugstore employing a licensed pharmacist may possess and use alcoholic liquors in the combination of prescriptions of duly licensed physicians.  The possession and dispensation of wine by an authorized representative of any church for the purpose of conducting any bona fide rite or religious ceremony conducted by such church shall not be prohibited by this chapter.

     (2)  Any person, upon conviction of any provision of this section, shall be punished as follows:

          (a)  By a fine of not less than One Hundred Dollars ($100.00), nor more than Five Hundred Dollars ($500.00), or by imprisonment in the county jail not less than one (1) week nor more than three (3) months, or both, for the first conviction under this section.

          (b)  By a fine of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00) or by imprisonment in the county jail not less than sixty (60) days, nor more than six (6) months, or both fine and imprisonment, for the second conviction for violating this section.

          (c)  By a fine of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00) or by imprisonment in the State Penitentiary not less than one (1) year, nor more than five (5) years, or both fine and imprisonment, for conviction the third time under this section for the violation thereof after having been twice convicted of its violation.

     (3)  Nothing in this section shall make it unlawful to transport bottles or containers of alcoholic beverages that are legally purchased in this state if the bottles or containers are unopened and are being transported on state or federal highway.

     SECTION 6.  Section 67-1-11, Mississippi Code of 1972, is amended as follows:

     67-1-11.  (1)  Notwithstanding any provision of this chapter, the legalizing provisions of this chapter, except as authorized under Section 67-9-1 and Section 67-1-7(2), shall not be effective, applicable or operative in any county unless and until a local option election shall be called and held in such county in the manner and with the results hereinafter provided.

     (2)  Upon presentation and filing of a proper petition requesting same signed by at least twenty percent (20%) or fifteen hundred (1,500), whichever number is the lesser, of the qualified electors of the county, it shall be the duty of the board of supervisors to call an election at which there shall be submitted to the qualified electors of the county the question of whether or not the sale, and distribution * * * and possession of alcoholic * * * liquors beverages shall be permitted in such county as provided in this chapter. Such election shall be held and conducted by the county election commissioners on a date fixed by the order of the board of supervisors, which date shall not be more than sixty (60) days from the date of the filing of said petition.  Notice thereof shall be given by publishing such notice once each week for at least three (3) consecutive weeks in some newspaper published in said county or, if no newspaper be published therein, by such publication in a newspaper in an adjoining county and having a general circulation in the county involved.  The election shall be held not earlier than fifteen (15) days from the first publication of such notice.

     (3)  Said election shall be held and conducted as far as may be possible in the same manner as is provided by law for the holding of general elections.  The ballots used thereat shall contain a brief statement of the proposition submitted and, on separate lines, the words "I vote FOR coming out from under the dry law in ________ County ( )" "I vote AGAINST coming out from under the dry law in ________ County ( )" with appropriate boxes in which the voters may express their choice.  All qualified electors may vote by marking the ballot with a cross (x) or check (√) mark opposite the words of their choice.

     (4)  The election commissioners shall canvass and determine the results of said election, and shall certify same to the board of supervisors which shall adopt and spread upon its minutes an order declaring such results.  If, in such election, a majority of the qualified electors participating therein shall vote in favor of the proposition, this chapter shall become applicable and operative in such county and the manufacture, sale, and distribution * * * and possession of alcoholic beverages therein shall be lawful to the extent and in the manner permitted hereby.  If, on the other hand, a majority of the qualified electors participating in the election shall vote against the proposition, this chapter, except for Section 67-9-1 and 67-1-7(2), shall not become effective and operative in such county and, except as otherwise provided under Section 67-9-1 and 67-1-7(2), all laws prohibiting and regulating the manufacture, sale, and distribution * * * and possession of * * * intoxicating liquor alcoholic beverages shall remain in full force and effect and be administered and vigorously prosecuted therein.  In either case, no further election shall be held in said county under the provisions of this chapter for a period of two (2) years from the date of the prior election and then only upon the filing of a petition requesting same signed by at least twenty percent (20%) or fifteen hundred (1,500), whichever number is the lesser, of the qualified electors of the county as is otherwise provided herein.

     SECTION 7.  Section 67-1-14, Mississippi Code of 1972, is amended as follows:

     67-1-14.  (1)  The legalizing provisions of this chapter may be effective, applicable and operative in any municipality located in a county which has voted against coming out from under the dry law if a local option election shall be called and held in such municipality in the manner and with the results hereinafter provided.

     (2)  (a)  Any municipality in this state having a population of not less than five thousand (5,000) according to the latest federal census and which is located in a county which has voted against coming out from under the dry law, or any municipality that is a county seat and which is located in a county which has voted against coming out from under the dry law, may, at an election held for the purpose under the election laws applicable to such municipality, either prohibit or permit, except as otherwise provided under Section 67-9-1, the sale, and the receipt, storage and transportation for the purpose of sale, of alcoholic beverages.  An election to determine whether such sale * * * and possession shall be permitted in municipalities wherein its sale * * * and possession is prohibited by law shall be ordered by the municipal governing authorities upon the presentation of a petition to such governing authorities containing the names of at least twenty percent (20%) of the duly qualified voters of such municipality asking for such election.  In like manner, an election to determine whether such sale * * * and possession shall be prohibited in municipalities wherein its sale is permitted by law shall be ordered by the municipal governing authorities upon the presentation of a petition to such governing authorities containing the names of at least twenty percent (20%) of the duly qualified voters of such municipality asking for such election.  No election on either question shall be held by any one (1) municipality more often than once in two (2) years.

     Thirty (30) days' notice shall be given to the qualified electors of such municipality, in the manner prescribed by law, upon the question of either permitting or prohibiting such sale * * * and possession, such notice to contain a statement of the question to be voted on at the election.  The ballots to be used in the election shall have the following words printed thereon:  "For the legal sale of alcoholic * * * liquors beverages" and the words "Against the legal sale of alcoholic * * * liquors beverages" next below.  In marking his ballot the voter shall make a cross (X) opposite the words of his choice.

     If in the election a majority of the qualified electors voting in the election shall vote "for the legal sale of alcoholic * * * liquors beverages," then the municipal governing authorities shall pass the necessary order permitting the legal sale of such alcoholic beverages in such municipality.  If in the election a majority of the qualified electors voting in the election shall vote "against the legal sale of alcoholic * * * liquors beverages," then the municipal governing authorities shall pass the necessary order prohibiting the sale of alcoholic beverages in such municipality.

          (b)  The provisions of this subsection shall also apply to any municipality having a population of not less than six thousand (6,000) according to the latest federal census, a portion of which is located in a county which has voted against coming out from under the dry law and a portion of which is located in a county which has voted in favor of coming out from under the dry law.  For the purpose of determining whether or not such a municipality meets the threshold population of six thousand (6,000) which will qualify the municipality to hold an election under this subsection, the entire population of the municipality shall be considered; however, the petition to hold the election authorized in this subsection shall be ordered by the municipal governing authorities upon the presentation of a petition to such governing authorities containing the names of at least twenty percent (20%) of the duly qualified voters of such municipality who reside in that portion of the municipality located in a county which has voted against coming out from under the dry law and the election shall be held only in that portion of the municipality. In all other respects, the authority for the holding of elections and the manner in which such elections shall be conducted shall be as prescribed in paragraph (a) of this subsection; and, after proper certification of election results, the municipal governing

authorities shall pass the appropriate order to permit or prohibit the legal sale of alcoholic beverages in that portion of the municipality located in a county which has voted against coming out from under the dry law.

     (3)  The governing authorities of a municipality that has voted to come out from under the dry * * *laws law after August 23, 2012, may, by ordinance, provide that alcoholic beverages may be sold in the municipality only by the holder of an on-premises retailer's permit.

     SECTION 8.  Section 67-1-41, Mississippi Code of 1972, is amended as follows:

     67-1-41.  (1)  The department 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 alcoholic beverages at wholesale within the state, and no person who is granted the right to sell, distribute or receive * * * intoxicating liquors alcoholic beverages at retail shall purchase any * * * intoxicating liquors alcoholic beverages from any source other than the department except as authorized in * * * subsections (4) and (9) this section.  The department may establish warehouses, purchase * * * intoxicating liquors alcoholic beverages in such quantities and from such sources as it may deem desirable and sell the * * * intoxicating liquors alcoholic beverages to authorized permittees within the state including, at the discretion of the 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 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 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 department within a period of time prescribed by the department.

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

     (7)  The 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 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 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 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 department.  The department shall develop and provide forms to be completed by the research permittee verifying each transaction.  The completed forms shall be forwarded to the department within a period of time prescribed by the 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.

     (10)  This section shall not apply to alcoholic beverages authorized to be sold by the holder of a distillery retailer's permit.

(11)  A wine retailer located within the United States may apply to the department for a direct wine shipper's permit that shall authorize the wine retailer to sell and ship brands of wines directly to a consumer's household in Mississippi so long as the consumer is able to prove that he or she is twenty-one (21) years of age or older at the time of the order by either being physically present to show proper identification or orders the wine via a telephone call after setting up an account with the wine retailer which requires an initial showing of proper identification.  Wines may be sold by the bottle, by the case, or in a "wine of the month" format.  Any such wine retailer must be lawfully permitted to sell wine in the state in which it is located.  Holders of a direct wine shipper's permit may not sell or ship to any club or organization, bed and breakfast, hotel, motel inn, restaurant, caterer, spa, salon, cooking school, transportation provider, supplier, manufacturer or any person engaged in any commercial activity.  Direct shipment of malt beverages, light wines and distilled spirits is prohibited and subject to penalties as provided in Chapters 1 and 3 of Title 67, Mississippi Code of 1972.

     SECTION 9.  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 alcoholic beverages 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 alcoholic beverages may be revoked as provided by law.

     SECTION 10.  Section 67-1-45, Mississippi Code of 1972, is amended as follows:

     67-1-45.  No manufacturer, rectifier or distiller of * * * intoxicating liquor alcoholic beverages shall sell or attempt to sell any such * * * intoxicating liquor alcoholic beverages, 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. A producer of native wine may sell native wines * * * to the commission as provided in Section 67-1-41 or to consumers at the location of the native winery or its immediate vicinity.

     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 11.  Section 67-1-51, Mississippi Code of 1972, is amended as follows:

     67-1-51.  (1)  Permits which may be issued by the department shall be as follows:

          (a)  Manufacturer's permit.  A manufacturer's permit shall permit the manufacture, importation in bulk, bottling and storage of alcoholic liquor and its distribution and sale to manufacturers holding permits under this chapter in this state and to persons outside the state who are authorized by law to purchase the same, and to sell * * * exclusively to the department as provided by this chapter.

     Manufacturer's permits shall be of the following classes:

     Class 1.  Distiller's and/or rectifier's permit, which shall authorize the holder thereof to operate a distillery for the production of distilled spirits by distillation or redistillation and/or to operate a rectifying plant for the purifying, refining, mixing, blending, flavoring or reducing in proof of distilled spirits and alcohol.

     Class 2.  Wine manufacturer's permit, which shall authorize the holder thereof to manufacture, import in bulk, bottle and store wine or vinous liquor.

     Class 3.  Native wine producer's permit, which shall authorize the holder thereof to produce, bottle, store and sell native wines.

          (b)  Package retailer's permit.  Except as otherwise provided in this paragraph and Section 67-1-52, a package retailer's permit shall authorize the holder thereof to operate a store exclusively for the sale at retail in original sealed and unopened packages of alcoholic beverages, including native wines, not to be consumed on the premises where sold.  Alcoholic beverages shall not be sold by any retailer in any package or container containing less than fifty (50) milliliters by liquid measure.  A package retailer's permit, with prior approval from the department, shall authorize the holder thereof to sample new product furnished by a manufacturer's representative or his employees at the permitted place of business so long as the sampling otherwise complies with this chapter and applicable department regulations.  Such samples may not be provided to customers at the permitted place of business.  In addition to the sale at retail of packages of alcoholic beverages, the holder of a package retailer's permit is authorized to sell at retail corkscrews, wine glasses, soft drinks, ice, juices, mixers and other beverages commonly used to mix with alcoholic beverages.  Nonalcoholic beverages sold by the holder of a package retailer's permit shall not be consumed on the premises where sold.

          (c)  On-premises retailer's permit.  Except as otherwise provided in subsection (5) of this section, an on-premises retailer's permit shall authorize the sale of alcoholic beverages, including native wines, for consumption on the licensed premises only; however, a patron of the permit holder may remove one (1) bottle of wine from the licensed premises if:  (i) the patron consumed a portion of the bottle of wine in the course of consuming a meal purchased on the licensed premises; (ii) the permit holder securely reseals the bottle; (iii) the bottle is placed in a bag that is secured in a manner so that it will be visibly apparent if the bag is opened; and (iv) a dated receipt for the wine and the meal is available.  Such a permit shall be issued only to qualified hotels, restaurants and clubs, and to common carriers with adequate facilities for serving passengers.  In resort areas, whether inside or outside of a municipality, the department, in its discretion, may issue on-premises retailer's permits to such establishments as it deems proper.  An on-premises retailer's permit when issued to a common carrier shall authorize the sale and serving of alcoholic beverages aboard any licensed vehicle while moving through any county of the state; however, the sale of such alcoholic beverages shall not be permitted while such vehicle is stopped in a county that has not legalized such sales.  If an on-premises retailer's permit is applied for by a common carrier operating solely in the water, such common carrier must, along with all other qualifications for a permit, (i) be certified to carry at least one hundred fifty (150) passengers and/or provide overnight accommodations for at least fifty (50) passengers and (ii) operate primarily in the waters within the State of Mississippi which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi and/or on the Mississippi River or navigable waters within any county bordering on the Mississippi River.

          (d)  Solicitor's permit.  A solicitor's permit shall authorize the holder thereof to act as salesman for a manufacturer or wholesaler holding a proper permit, to solicit on behalf of his employer orders for alcoholic beverages, and to otherwise promote his employer's products in a legitimate manner.  Such a permit shall authorize the representation of and employment by one (1) principal only.  However, the permittee may also, in the discretion of the department, be issued additional permits to represent other principals.  No such permittee shall buy or sell alcoholic beverages for his own account, and no such beverage shall be brought into this state in pursuance of the exercise of such permit otherwise than through a permit issued to a wholesaler or manufacturer in the state.

          (e)  Native wine retailer's permit.  Except as otherwise provided in subsection (5) of this section, a native wine retailer's permit shall be issued only to a holder of a Class 3 manufacturer's permit, and shall authorize the holder thereof to make retail sales of native wines to consumers for on-premises consumption or to consumers in originally sealed and unopened containers at an establishment located on the premises of or in the immediate vicinity of a native winery.

          (f)  Temporary retailer's permit.  Except as otherwise provided in subsection (5) of this section, a temporary retailer's permit shall permit the purchase and resale of alcoholic beverages, including native wines, during legal hours on the premises described in the temporary permit only.

     Temporary retailer's permits shall be of the following classes:

     Class 1.  A temporary one-day permit may be issued to bona fide nonprofit civic or charitable organizations authorizing the sale of alcoholic beverages, including native wine, for consumption on the premises described in the temporary permit only.  Class 1 permits may be issued only to applicants demonstrating to the department, by a statement signed under penalty of perjury submitted ten (10) days prior to the proposed date or such other time as the department may determine, that they meet the qualifications of Sections 67-1-11, 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 (excluding paragraph (e)) and 67-1-59.  Class 1 permittees shall obtain all alcoholic beverages from package retailers located in the county in which the temporary permit is issued.  Alcoholic beverages remaining in stock upon expiration of the temporary permit may be returned by the permittee to the package retailer for a refund of the purchase price upon consent of the package retailer or may be kept by the permittee exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages.  The department, following review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit.

     Class 2.  A temporary permit, not to exceed seventy (70) days, may be issued to prospective permittees seeking to transfer a permit authorized in paragraph (c) of this subsection.  A Class 2 permit may be issued only to applicants demonstrating to the department, by a statement signed under the penalty of perjury, that they meet the qualifications of Sections 67-1-5(l), (m), (n), (o), (p) or (q), 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 and 67-1-59.  The department, following a preliminary review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit.

     Class 2 temporary permittees must purchase their alcoholic beverages directly from the department or, with approval of the department, purchase the remaining stock of the previous permittee.  If the proposed applicant of a Class 1 or Class 2 temporary permit falsifies information contained in the application or statement, the applicant shall never again be eligible for a retail alcohol beverage permit and shall be subject to prosecution for perjury.

     Class 3.  A temporary one-day permit may be issued to a retail establishment authorizing the complimentary distribution of wine, including native wine, to patrons of the retail establishment at an open house or promotional event, for consumption only on the premises described in the temporary permit.  A Class 3 permit may be issued only to an applicant demonstrating to the department, by a statement signed under penalty of perjury submitted ten (10) days before the proposed date or such other time as the department may determine, that it meets the qualifications of Sections 67-1-11, 67-1-37, 67-1-51(2) and (3), 67-1-55, 67-1-57 (excluding paragraph (e)) and 67-1-59.  A Class 3 permit holder shall obtain all alcoholic beverages from the holder(s) of a package retailer's permit located in the county in which the temporary permit is issued.  Wine remaining in stock upon expiration of the temporary permit may be returned by the Class 3 temporary permit holder to the package retailer for a refund of the purchase price, with consent of the package retailer, or may be kept by the Class 3 temporary permit holder exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages.  The department, following review of the statement provided by the applicant and the requirements of the applicable statutes and regulations, may issue the permit.  No retailer may receive more than twelve (12) Class 3 temporary permits in a calendar year.  A Class 3 temporary permit shall not be issued to a retail establishment that either holds a merchant permit issued under paragraph (l) of this subsection, or holds a permit issued under Chapter 3, Title 67, Mississippi Code of 1972, authorizing the holder to engage in the business of a retailer of light wine or beer.

          (g)  Caterer's permit.  A caterer's permit shall permit the purchase of alcoholic beverages by a person engaging in business as a caterer and the resale of alcoholic beverages by such person in conjunction with such catering business.  No person shall qualify as a caterer unless forty percent (40%) or more of the revenue derived from such catering business shall be from the serving of prepared food and not from the sale of alcoholic beverages and unless such person has obtained a permit for such business from the Department of Health.  A caterer's permit shall not authorize the sale of alcoholic beverages on the premises of the person engaging in business as a caterer; however, the holder of an on-premises retailer's permit may hold a caterer's permit.  When the holder of an on-premises retailer's permit or an affiliated entity of the holder also holds a caterer's permit, the caterer's permit shall not authorize the service of alcoholic beverages on a consistent, recurring basis at a separate, fixed location owned or operated by the caterer, on-premises retailer or affiliated entity and an on-premises retailer's permit shall be required for the separate location.  All sales of alcoholic beverages by holders of a caterer's permit shall be made at the location being catered by the caterer, and, except as otherwise provided in subsection (5) of this section, such sales may be made only for consumption at the catered location.  The location being catered may be anywhere within a county or judicial district that has voted to come out from under the dry laws or in which the sale * * *, and distribution * * * and possession of alcoholic beverages is otherwise authorized by law.  Such sales shall be made pursuant to any other conditions and restrictions which apply to sales made by on-premises retail permittees.  The holder of a caterer's permit or his employees shall remain at the catered location as long as alcoholic beverages are being sold pursuant to the permit issued under this paragraph (g), and the permittee shall have at the location the identification card issued by the Alcoholic Beverage Control Division of the department.  No unsold alcoholic beverages may be left at the catered location by the permittee upon the conclusion of his business at that location.  Appropriate law enforcement officers and Alcoholic Beverage Control Division personnel may enter a catered location on private property in order to enforce laws governing the sale or serving of alcoholic beverages.

          (h)  Research permit.  A research permit shall authorize the holder thereof to operate a research facility for the professional research of alcoholic beverages.  Such permit shall authorize the holder of the permit to import and purchase limited amounts of alcoholic beverages from the department or from importers, wineries and distillers of alcoholic beverages for professional research.

          (i)  Alcohol processing permit.  An alcohol processing permit shall authorize the holder thereof to purchase, transport and possess alcoholic beverages for the exclusive use in cooking, processing or manufacturing products which contain alcoholic beverages as an integral ingredient.  An alcohol processing permit shall not authorize the sale of alcoholic beverages on the premises of the person engaging in the business of cooking, processing or manufacturing products which contain alcoholic beverages.  The amounts of alcoholic beverages allowed under an alcohol processing permit shall be set by the department.

          (j)  Hospitality cart permit.  A hospitality cart permit shall authorize the sale of alcoholic beverages from a mobile cart on a golf course that is the holder of an on-premises retailer's permit.  The alcoholic beverages sold from the cart must be consumed within the boundaries of the golf course.

          (k)  Special service permit.  A special service permit shall authorize the holder to sell commercially sealed alcoholic beverages to the operator of a commercial or private aircraft for en route consumption only by passengers.  A special service permit shall be issued only to a fixed-base operator who contracts with an airport facility to provide fueling and other associated services to commercial and private aircraft.

          (l)  Merchant permit.  Except as otherwise provided in subsection (5) of this section, a merchant permit shall be issued only to the owner of a spa facility, an art studio or gallery, or a cooking school, and shall authorize the holder to serve complimentary by the glass wine only, including native wine, at the holder's spa facility, art studio or gallery, or cooking school.  A merchant permit holder shall obtain all wine from the holder of a package retailer's permit.

          (m)  Temporary alcoholic beverages charitable auction permit.  A temporary permit, not to exceed five (5) days, may be issued to a qualifying charitable nonprofit organization that is exempt from taxation under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986.  The permit shall authorize the holder to sell alcoholic beverages for the limited purpose of raising funds for the organization during a live or silent auction that is conducted by the organization and that meets the following requirements:  (i) the auction is conducted in an area of the state where the sale of alcoholic beverages is authorized; (ii) if the auction is conducted on the premises of an on-premises retailer's permit holder, then the alcoholic beverages to be auctioned must be stored separately from the alcoholic beverages sold, stored or served on the premises, must be removed from the premises immediately following the auction, and may not be consumed on the premises; (iii) the permit holder may not conduct more than two (2) auctions during a calendar year; (iv) the permit holder may not pay a commission or promotional fee to any person to arrange or conduct the auction.

          (n)  Event venue retailer's permit.  An event venue retailer's permit shall authorize the holder thereof to purchase and resell alcoholic beverages, including native wines, for consumption on the premises during legal hours during events held on the licensed premises if food is being served at the event by a caterer who is not affiliated with or related to the permittee.  The caterer must serve at least three (3) entrees.  The permit may only be issued for venues that can accommodate two hundred (200) persons or more.  The number of persons a venue may accommodate shall be determined by the local fire department and such determination shall be provided in writing and submitted along with all other documents required to be provided for an on-premises retailer's permit.  The permittee must derive the majority of its revenue from event-related fees, including, but not limited to, admission fees or ticket sales for live entertainment in the building.  "Event-related fees" do not include alcohol, beer or light wine sales or any fee which may be construed to cover the cost of alcohol, beer or light wine.  This determination shall be made on a per event basis.  An event may not last longer than two (2) consecutive days per week.

          (o)  Temporary theatre permit.  A temporary theatre permit, not to exceed five (5) days, may be issued to a charitable nonprofit organization that is exempt from taxation under Section 501(c)(3) or (4) of the Internal Revenue Code and owns or operates a theatre facility that features plays and other theatrical performances and productions.  Except as otherwise provided in subsection (5) of this section, the permit shall authorize the holder to sell alcoholic beverages, including native wines, to patrons of the theatre during performances and productions at the theatre facility for consumption during such performances and productions on the premises of the facility described in the permit.  A temporary theatre permit holder shall obtain all alcoholic beverages from package retailers located in the county in which the permit is issued.  Alcoholic beverages remaining in stock upon expiration of the temporary theatre permit may be returned by the permittee to the package retailer for a refund of the purchase price upon consent of the package retailer or may be kept by the permittee exclusively for personal use and consumption, subject to all laws pertaining to the illegal sale and possession of alcoholic beverages.

          (p)  Charter ship operator's permit.  Subject to the provisions of this paragraph (p), a charter ship operator's permit shall authorize the holder thereof and its employees to serve, monitor, store and otherwise control the serving and availability of alcoholic beverages to customers of the permit holder during private charters under contract provided by the permit holder.  A charter ship operator's permit shall authorize such action by the permit holder and its employees only as to alcoholic beverages brought onto the permit holder's ship by customers of the permit holder as part of such a private charter.  All such alcoholic beverages must be removed from the charter ship at the conclusion of each private charter.  A charter ship operator's permit shall not authorize the permit holder to sell, charge for or otherwise supply alcoholic beverages to customers, except as authorized in this paragraph (p).  For the purposes of this paragraph (p), "charter ship operator" means a common carrier that (i) is certified to carry at least one hundred fifty (150) passengers and/or provide overnight accommodations for at least fifty (50) passengers, (ii) operates only in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, and (iii) provides charters under contract for tours and trips in such waters.

          (q)  Distillery retailer's permit.  The holder of a Class 1 manufacturer's permit may obtain a distillery retailer's permit.  A distillery retailer's permit shall authorize the holder thereof to sell at retail alcoholic beverages by the sealed and unopened bottle from a retail location at the distillery for off-premises consumption.  The holder may only sell product manufactured by the manufacturer at the distillery described in the permit.  The holder shall not sell at retail more than ten percent (10%) of the alcoholic beverages produced annually at its distillery.  The holder shall not make retail sales of more than two and twenty-five one-hundredths (2.25) liters, in the aggregate, of the alcoholic beverages produced at its distillery to any one (1) individual for consumption off the premises of the distillery within a twenty-four-hour period.  The hours of sale shall be the same as those hours for package retailers under this chapter.  The holder of a distillery retailer's permit is not required to purchase the alcoholic beverages authorized to be sold by this paragraph from the department's liquor distribution warehouse; however, if the holder does not purchase the alcoholic beverages from the department's liquor distribution warehouse, the holder shall pay to the department all taxes, fees and surcharges on the alcoholic beverages that are imposed upon the sale of alcoholic beverages shipped by the Alcoholic Beverage Control Division of the Department of Revenue.  In addition to alcoholic beverages, the holder of a distillery retailer's permit may sell at retail promotional products from the same retail location, including shirts, hats, glasses, and other promotional products customarily sold by alcoholic beverage manufacturers.

(r)  Direct wine shipper's permit.  The holder of a direct wine shipper's permit may ship wine directly to consumers as authorized in Section 67-1-42.

     (2)  Except as otherwise provided in subsection (4) of this section, retail permittees may hold more than one (1) retail permit, at the discretion of the department.

     (3)  Except as otherwise provided in this subsection, no authority shall be granted to any person to manufacture, sell or store for sale any * * * intoxicating liquor alcoholic beverages as specified in this chapter within four hundred (400) feet of any church, school, kindergarten or funeral home.  However, within an area zoned commercial or business, such minimum distance shall be not less than one hundred (100) feet.

     A church or funeral home may waive the distance restrictions imposed in this subsection in favor of allowing issuance by the department of a permit, pursuant to subsection (1) of this section, to authorize activity relating to the manufacturing, sale or storage of alcoholic beverages which would otherwise be prohibited under the minimum distance criterion.  Such waiver shall be in written form from the owner, the governing body, or the appropriate officer of the church or funeral home having the authority to execute such a waiver, and the waiver shall be filed with and verified by the department before becoming effective.

     The distance restrictions imposed in this subsection shall not apply to the sale or storage of alcoholic beverages at a bed and breakfast inn listed in the National Register of Historic Places or to the sale or storage of alcoholic beverages in a historic district that is listed in the National Register of Historic Places, is a qualified resort area and is located in a municipality having a population greater than one hundred thousand (100,000) according to the latest federal decennial census.

     (4)  No person, either individually or as a member of a firm, partnership, limited liability company or association, or as a stockholder, officer or director in a corporation, shall own or control any interest in more than one (1) package retailer's permit, nor shall such person's spouse, if living in the same household of such person, any relative of such person, if living in the same household of such person, or any other person living in the same household with such person own any interest in any other package retailer's permit.

     (5)  (a)  In addition to any other authority granted under this section, the holder of a permit issued under subsection (1)(c), (e), (f), (g), (l), (n) and/or (o) of this section may sell or otherwise provide alcoholic beverages and/or wine to a patron of the permit holder in the manner authorized in the permit and the patron may remove an open glass, cup or other container of the alcoholic beverage and/or wine from the licensed premises and may possess and consume the alcoholic beverage or wine outside of the licensed premises if:  (i) the licensed premises is located within a leisure and recreation district created under Section 67-1-101 and (ii) the patron remains within the boundaries of the leisure and recreation district while in possession of the alcoholic beverage or wine.

          (b)  Nothing in this subsection shall be construed to allow a person to bring any alcoholic beverages into a permitted premises except to the extent otherwise authorized by this chapter.

     SECTION 12.  Section 27-71-5, Mississippi Code of 1972, is amended as follows:

     27-71-5.  (1)  Upon each person approved for a permit under the provisions of the Alcoholic Beverage Control Law and amendments thereto, there is levied and imposed for each location for the privilege of engaging and continuing in this state in the business authorized by such permit, an annual privilege license tax in the amount provided in the following schedule:

          (a)  Except as otherwise provided in this subsection (1), manufacturer's permit, Class 1, distiller's and/or

rectifier's................................................ $4,500.00

          (b)  Manufacturer's permit, Class 2, wine

Manufacturer............................................... $1,800.00

          (c)  Manufacturer's permit, Class 3, native wine

manufacturer per ten thousand (10,000) gallons or part thereof produced.......................................................... $   10.00

          (d)  Native wine retailer's permit................ $   50.00

          (e)  Package retailer's permit, each.............. $  900.00

          (f)  On-premises retailer's permit, except for clubs and common carriers, each............................................. $  450.00

          (g)  On-premises retailer's permit for wine of more than five percent (5%) alcohol by weight, but not more than twenty-one percent (21%) alcohol by weight, each.................................. $  225.00

          (h)  On-premises retailer's permit for clubs...... $  225.00

          (i)  On-premises retailer's permit for common carriers, per car, plane, or other vehicle............................... $  120.00

          (j)  Solicitor's permit, regardless of any other provision of law, solicitor's permits shall be issued only in the discretion of the department................................................. $  100.00

          (k)  Filing fee for each application except for an employee identification card........................................ $   25.00

          (l)  Temporary permit, Class 1, each.............. $   10.00

          (m)  Temporary permit, Class 2, each.............. $   50.00

          (n)  (i)  Caterer's permit........................ $  600.00

               (ii)  Caterer's permit for holders of on-premises retailer's permit.......................................... $  150.00

          (o)  Research permit............................. $  100.00

          (p)  Temporary permit, Class 3 (wine only)........ $   10.00

          (q)  Special service permit....................... $  225.00

          (r)  Merchant permit............................. $  225.00

          (s)  Temporary alcoholic beverages charitable auction permit.......................................................... $   10.00

          (t)  Event venue retailer's permit................ $  225.00

          (u)  Temporary theatre permit, each............... $   10.00

          (v)  Charter ship operator's permit............... $  100.00

          (w)  Distillery retailer's permit................. $  450.00

(x)  Direct wine shipper's permit................. $  100.00

     If a person approved for a manufacturer's permit, Class 1, distiller's permit produces a product with at least fifty-one percent (51%) of the finished product by volume being obtained from alcoholic fermentation of grapes, fruits, berries, honey and/or vegetables grown and produced in Mississippi, and produces all of the product by using not more than one (1) still having a maximum capacity of one hundred fifty (150) liters, the annual privilege license tax for such a permit shall be Ten Dollars ($10.00) per ten thousand (10,000) gallons or part thereof produced.  Bulk, concentrated or fortified ingredients used for blending may be produced outside this state and used in producing such a product.

     In addition to the filing fee imposed by paragraph (k) of this subsection, a fee to be determined by the Department of Revenue may be charged to defray costs incurred to process applications.  The additional fees shall be paid into the State Treasury to the credit of a special fund account, which is hereby created, and expenditures therefrom shall be made only to defray the costs incurred by the Department of Revenue in processing alcoholic beverage applications.  Any unencumbered balance remaining in the special fund account on June 30 of any fiscal year shall lapse into the State General Fund.

     All privilege taxes imposed by this section shall be paid in advance of doing business.  The additional privilege tax imposed for an on-premises retailer's permit based upon purchases shall be due and payable on demand.

     (2)  (a)  There is imposed and shall be collected from each permittee, except a common carrier, solicitor or a temporary permittee, by the department, an additional license tax equal to the amounts imposed under subsection (1) of this section for the privilege of doing business within any municipality or county in which the licensee is located.

          (b)  (i)  In addition to the tax imposed in paragraph (a) of this subsection, there is imposed and shall be collected by the department from each permittee described in subsection (1)(f), (g), (h), (m) and (t) of this section, an additional license tax for the privilege of doing business within any municipality or county in which the licensee is located in the amount of Two Hundred Twenty-five Dollars ($225.00) on purchases exceeding Five Thousand Dollars ($5,000.00) and Two Hundred Twenty-five Dollars ($225.00) for each additional purchase of Five Thousand Dollars ($5,000.00), or fraction thereof.

              (ii)  In addition to the tax imposed in paragraph (a) of this subsection, there is imposed and shall be collected by the department from each permittee described in subsection (1)(n) and (r) of this section, an additional license tax for the privilege of doing business within any municipality or county in which the licensee is located in the amount of Two Hundred Fifty Dollars ($250.00) on purchases exceeding Five Thousand Dollars ($5,000.00) and Two Hundred Twenty-five Dollars ($225.00) for each additional purchase of Five Thousand Dollars ($5,000.00), or fraction thereof.

              (iii)  Any person who has paid the additional privilege license tax imposed by this paragraph, and whose permit is renewed, may add any unused fraction of Five Thousand Dollars ($5,000.00) purchases to the first Five Thousand Dollars ($5,000.00) purchases authorized by the renewal permit, and no additional license tax will be required until purchases exceed the sum of the two (2) figures.

          (c)  If the licensee is located within a municipality, the department shall pay the amount of additional license tax collected under this section to the municipality, and if outside a municipality the department shall pay the additional license tax to the county in which the licensee is located.  Payments by the department to the respective local government subdivisions shall be made once each month for any collections during the preceding month.

     (3)  When an application for any permit, other than for renewal of a permit, has been rejected by the department, such decision shall be final.  Appeal may be made in the manner provided by Section 67-1-39.  Another application from an applicant who has been denied a permit shall not be reconsidered within a twelve-month period.

     (4)  The number of permits issued by the department shall not be restricted or limited on a population basis; however, the foregoing limitation shall not be construed to preclude the right of the department to refuse to issue a permit because of the undesirability of the proposed location.

     (5)  If any person shall engage or continue in any business which is taxable under this section without having paid the tax as provided in this section, the person shall be liable for the full amount of the tax plus a penalty thereon equal to the amount thereof, and, in addition, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by imprisonment in the county jail for a term of not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court.

     (6)  It shall be unlawful for any person to consume alcoholic beverages on the premises of any hotel restaurant, restaurant, club or the interior of any public place defined in Chapter 1, Title 67, Mississippi Code of 1972, when the owner or manager thereof displays in several conspicuous places inside the establishment and at the entrances of establishment a sign containing the following language:  NO ALCOHOLIC BEVERAGES ALLOWED.

     SECTION 13.  This act shall take effect and be in force from and after July 1, 2020.

     Further, amend by striking the title in its entirety and inserting in lieu thereof the following:

     AN ACT TO CREATE NEW SECTION 67-1-42, MISSISSIPPI CODE OF 1972, TO ALLOW THE DIRECT SHIPMENT OF WINE BY A WINE RETAILER POSSESSING A DIRECT WINE SHIPPER'S PERMIT TO THE CONSUMER HOUSEHOLDS IN MISSISSIPPI; TO DESCRIBE THE REQUIREMENTS AND CONDITIONS OF THE DIRECT WINE SHIPPER'S PERMIT; TO REQUIRE THAT SUCH SHIPMENTS BE MADE THROUGH APPROVED DELIVERY AGENTS WITH WINE DELIVERY PERMITS; TO DESCRIBE THE REQUIREMENTS AND CONDITIONS OF THE WINE DELIVERY PERMIT; TO PROVIDE REQUIREMENTS FOR THE DELIVERY OF WINE PURSUANT TO THE PERMITS; TO SET FORTH CRIMINAL AND ADMINISTRATIVE PENALTIES FOR VIOLATIONS; TO PROVIDE FOR AN ADMINISTRATIVE APPEALS PROCESS; TO AUTHORIZE THE DEPARTMENT OF REVENUE TO PROMULGATE RULES AND REGULATIONS TO EFFECTUATE THE PURPOSES OF THE SECTION; TO AMEND SECTION 67-1-3, MISSISSIPPI CODE OF 1972, TO RENOUNCE PROHIBITION AS THE POLICY OF THIS STATE AS TO THE POSSESSION OF ALCOHOLIC BEVERAGES; TO AMEND SECTION 67-1-7, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE ABOVE, AND TO REMOVE THE PROHIBITION ON THE MANUFACTURE, SALE AND DISTRIBUTION OF ALCOHOLIC BEVERAGES IN COUNTIES EXCEPT IN MUNICIPALITIES, QUALIFIED RESORT AREAS APPROVED BY THE DEPARTMENT OF REVENUE, OR CLUBS; TO AMEND SECTIONS 67-1-5, 67-1-9, 67-1-11, 67-1-14, 67-1-41, 67-1-43, 67-1-45 AND 67-1-51, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE ABOVE; TO AMEND SECTION 27-71-5, MISSISSIPPI CODE OF 1972, TO ASSESS AN ANNUAL PRIVILEGE LICENSE TAX OF $100.00 FOR THE DIRECT WINE SHIPPER'S PERMIT; AND FOR RELATED PURPOSES.

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