Report Title:
Intoxicating Liquor; Shipping Permit; Direct Shipment of Wine
Description:
Requires permit for the direct shipment of wine into the State by persons with a Hawaii class 1 license or another state's license to manufacture wine. (SD1)
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THE SENATE |
S.B. NO. |
2109 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INTOXICATING LIQUOR.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 281, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§281- Direct shipment of wine by wineries. (a) Notwithstanding any law or rule to the contrary, a person holding a class 1 license to manufacture wine under section 281-31 or any person holding a license to manufacture wine issued by another state may obtain a wine direct shipper permit from the commission pursuant to this section. A wine direct shipper permitholder may sell and ship up to cases of wine annually directly to a resident of this State who is at least twenty-one years of age, for the resident's personal use and not for resale.
(b) Before sending any shipment to a resident of this State, the wine direct shipper permitholder shall:
(1) File an application with the commission where the individual resides;
(2) Provide the commission with the number of its Hawaii class 1 license to manufacture wine or a true copy of its current winery license issued by another state;
(3) Obtain from the commission a wine direct shipper permit; and
(4) Register with the department of taxation for the payment of general excise taxes and gallonage taxes on sales of wine to state residents under the wine direct shipper permit.
(c) A wine direct shipper permit authorizes the permitholder to do all of the following:
(1) Sell and ship not more than cases of wine annually to any person twenty-one years of age or older for his or her personal use and not for resale;
(2) Ship wine directly to a resident in this State only in containers that are conspicuously labeled with the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY;" and
(3) Ship wine only if the permitholder requires the carrier to obtain the signature of any individual twenty-one years of age or older before delivering any wine shipped to an individual in this State.
(d) A direct wine shipper permit requires the permitholder to:
(1) Provide each commission with a copy of a report, no later than January 31 of each year, showing the total amount of wine shipped to state residents during the preceding calendar year under all the permitholder's wine direct shipper permits; and
(2) Pay to the department of taxation all general excise taxes and gallonage taxes on sales to state residents under its wine direct shipper permits. For gallonage tax purposes, all wine sold pursuant to a wine direct shipper permit shall be deemed to be wine sold in this state.
(e) Upon request, the commission and the department of taxation may perform an audit of the permitholder's records.
(f) A permitholder shall be deemed to have consented to the jurisdiction of this State for purposes of enforcement of this section and any related laws or rules.
(g) A permitholder located outside the State may annually renew its permit with the commission by providing the commission with a true copy of its current winery license issued by another state. A permitholder located in the State shall renew its wine direct shipper permit in conjunction with its class 1 license to manufacture wine.
(h) The commission and the department of taxation may adopt rules pursuant to chapter 91 to effectuate the purposes of this section.
(i) The commission may enforce the requirements of this section by administrative proceedings to suspend or revoke the wine direct shipper permit, and may accept payment of an offer in compromise in lieu of suspension pursuant to rules adopted by the commission.
(j) Sales and shipments of wine direct to consumers in the State from in-state or out-of-state wine manufacturers who do not possess a current wine direct shipper permit from the commission are prohibited. Any person who knowingly makes such a shipment is guilty of a misdemeanor."
SECTION 2. Section 281-33.1, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:
"(i) An unlicensed adult person shall not be required to obtain a permit under this section to receive shipments of [liquor] wine pursuant to section [281-33.5.] 281- ."
SECTION 3. Section 281-33.5, Hawaii Revised Statutes, is repealed.
["§281-33.5 Reciprocal shipments of wine. Notwithstanding any other law to the contrary, the holder of a license to manufacture wine in another state that affords holders of a class 1 license to manufacture wine under section 281-31 an equal reciprocal shipping privilege, may ship for personal use and not for resale not more than three cases of wine of its own manufacture per year, with each case containing not more than nine liters, to any resident twenty-one years of age or older. Out-of-state wine manufacturers that are authorized to ship wine under this section shall submit, to the appropriate liquor commission, a shipping invoice for each delivery into this State. Delivery of a shipment into this State under this section shall not be deemed to constitute a sale in this State."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that the county commissions shall begin issuing wine direct shipper permits pursuant to this Act upon the approval of this Act.