Distribution of intoxicating liquor to retailers by manufacturers, rectifiers, wineries, and out-of-state shippers

Also under current law, the Department of Revenue issues permits to producers of alcohol beverages. A manufacturer's permit or rectifier's permit issued by DOR authorizes the permittee to, respectively, manufacture or rectify intoxicating liquor and sell it to wholesalers. Intoxicating liquor includes distilled spirits and wine. A winery permit issued by DOR authorizes the winery to manufacture wine for sale to wholesalers. A winery may also hold a retail license authorizing the sale of wine and the winery may provide wine made by the winery directly to its own retail licensed premises without the wine first passing through a wholesaler. An out-of-state liquor shipper's permit issued by DOR allows a manufacturer or rectifier of intoxicating liquor located outside this state, or its exclusive agent, to ship intoxicating liquor into this state to a wholesaler or to a manufacturer, rectifier, or winery.

This bill allows a winery, manufacturer, rectifier, and out-of-state shipper to distribute intoxicating liquor directly to retailers as follows:

1. A winery in this state that manufactures not more than 30,000 gallons of wine per year may distribute directly to retailers up to 24,000 gallons of its own wine.

2. A manufacturer or rectifier in this state that manufactures or rectifies not more than 10,000 proof gallons of intoxicating liquor per year may distribute directly to retailers up to 8,000 proof gallons of its own intoxicating liquor. A proof gallon is a unit of measure for distilled spirits equal to one gallon containing 50 percent alcohol by volume.

3. An out-of-state shipper that is a winery located outside of this state and that manufactures not more than 30,000 gallons of wine per year may ship into this state directly to retailers up to 24,000 gallons of its own wine.

4. An out-of-state shipper that is a manufacturer or rectifier located outside of this state and that manufactures or rectifies not more than 10,000 proof gallons of intoxicating liquor per year may ship into this state directly to retailers up to 8,000 proof gallons of its own intoxicating liquor.