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Monday, March 13, 2006

Ind. Law - Conference committee report on wine shipping filed in House and Senate

Here is the filed Conference Committee Report on HB 1016.

SECTION 34, beginning at line 30 of p. 21 (numbered "18" on the document) and continuing to p. 25, adds a new chapter IC 7.1-3-26, titled Direct Wine Seller's Permit.

The new IC 7.1-3-26-5, at line 43, provides: "A person located within Indiana or outside Indiana that wants to sell and ship wine directly to a consumer must be the holder of a direct wine seller's permit and comply with this chapter."

The new chapter provides that both in-state and out-of-state sales:

A seller may sell and ship wine directly only to a consumer who meets all of the following requirements: * * * (5) * * * the consumer has provided to the seller in one initial face-to-face transaction at the seller's place of business appearing on the seller's application for a direct wine seller's permit or any locations authorized by IC 7.1-3-12-5 all the following [identification information].
The CCR would also make modifications to the existing law concerning a farm winery permit, expanding the authority under the permit, including adding a new clause 11 to IC 7.1-3-12-5 to read:
The holder of a farm winery permit: * * *
(11) is entitled to sell and ship the farm winery's wine to a person located in another state in accordance with the laws of the other state.
The above language is at p. 13 (numbered "10" on the document) of the CCR, lines 34-36.

In short, under these changes, if I understand them correctly:

(1) An Indiana consumer may have wine shipped directly to them from an Indiana winery only after having had one initial face-to-face transaction at the seller's place of business. An Indiana consumer may have wine shipped directly to them from an out-of-state winery only after having had one initial face-to-face transaction at the seller's place of business. In both cases, the wineries, whether located inside or outside Indiana, has to have an Indiana Direct Wine Seller's Permit. [So much for reading a review of a wonderful wine from a small winery in another state and sending off an order -- you'll have to visit in person first, and the out-of-state winery will need to have an Indiana Direct Wine Seller's Permit.]

(2) An out-of-state consumer may have Indiana wine shipped directly to them if the Indiana winery has a farm winery permit and complies with the laws of the state where the consumer lives.

Posted by Marcia Oddi on March 13, 2006 08:04 PM
Posted to Indiana Law