Amendment #17, as changed to H.4000
Direct Shipment of Wine
Representatives Jones of North Reading, Peterson of Grafton, Hill of Ipswich, Poirier of North Attleborough and deMacedo of Plymouth move to further amendment 17 by striking it out in its entirety and inserting in place thereof the following:-
Mr. Jones of North Readingand Mr. Scibak of South Hadley moves to amend the bill by inserting after section 61A the following sections:-
SECTION 61B. Section 1 of chapter 138 of the General Laws, as so appearing, is hereby amended by inserting after the definition of “commission” the following definition:-
“Direct wine shipper”, any person who sells, delivers or exports wine to consumers in the commonwealth.
SECTION 61C. Chapter 138 of the General Laws, as so appearing, is hereby amended by striking section 19F and inserting in place thereof the following section:-
Section 19F. (a) The commission may issue a direct wine shipper license pursuant to this section to any person, firm or corporation that holds a federal basic permit pursuant to the federal Alcohol Administration Act, compiled in 27 U.S.C. § 201 et seq.; holds a license in the commonwealth or any other state to manufacture and export wine; and is in the business of manufacturing, bottling or rectifying wine.
(b) In accordance with the requirements of this section, a direct wine shipper licensee shall be authorized to make sales and delivery of wine directly to residents of the commonwealth who are 21 years of age or older, for personal use and not for resale.
(c) The fee for a license issued pursuant to this section shall be $300 per winery; provided that an affiliate, franchise or subsidiary thereof shall require a separate license. Licenses shall be renewed annually at a fee of $150. If a direct wine shipper’s license expires and is not renewed, a subsequent application shall be treated as an application for a new license. An applicant for a direct wine shipper license shall provide the commission and the department of revenue with a true copy of the applicable alcoholic beverage license to manufacture, export and sell the applicant’s wine as issued by the appropriate licensing authority. A copy of the direct wine shipment license obtained pursuant to this section shall be provided by the commission to the department of revenue.
(d) A direct wine shipper licensee under this section shall ship wine in accordance with section 22.
(e) A direct wine shipper licensee may ship up to 12 cases of wine, no more than 9 liters each case, per year to a resident of the commonwealth.
(f) A licensee under this section shall: (i) report yearly to the commission and the department of revenue the total number of gallons of wine shipped into the commonwealth for the preceding year; (ii) pay to the department of revenue, under the department's rules and regulations, for each shipment of wine the excise levied on importations of wine calculated under section 21 and any and all other applicable taxes; and (iii) upon request, allow the commission or the department of revenue to perform an audit of the direct shipper licensee's records.
(g) No person, firm or corporation shall ship wine directly to consumers without a direct wine shipper license. A person, firm or corporation who manufactures, transports, imports or exports wine in violation of this section shall be deemed to have engaged in a deceptive act or practice under chapter 93A.
(h) Whoever ships wine in violation of this section shall be subject to the following penalties: for a first violation, by suspension of the direct wine shipper license for 60 days or a fine of $500, or both; for a second violation, by suspension of the direct wine shipper license for 120 days or a fine of $1,000, or both; and for a third or subsequent violation, by suspension of the direct wine shipper license for 1 year or by a fine of $3,000, or both. A licensee whose license has been suspended for 1 year or more may apply for a direct wine shipper license and shall be treated as a new applicant. The commission may revoke a direct wine shipper license after 3 or more violations.
(i) If a violation of this section involves the sale or delivery of wine to a person under 21 years of age, the commission may impose the following additional penalties: for a first violation, by suspension of the direct shipper license for 180 days or a fine of $1,000, or both; for a second violation, by suspension of the direct shipper license for 1 year or a fine of $2,000, or both; and for a third or subsequent violation, by suspension of the direct shipper license for 2 years or by a fine of $5,000, or both. Nothing in this section shall preclude enforcement of violations of section 34.
(j) The commission shall promulgate rules and regulations to effectuate the purposes of this section. The department of revenue may promulgate rules and regulations necessary to effectuate the oversight and collection of taxes due to the commonwealth as a result of the sale and shipment of wine into the commonwealth pursuant to this section.
(k) The commission shall issue an annual report to the joint committee on consumer protection and professional licensure, which shall include, but not be limited to, the number of direct wine shipment licenses issued and a review of violations and enforcement measures taken pursuant to this section.
SECTION 61D. Section 22 of said chapter 138, as so appearing, is hereby amended by striking out, in lines 57-58, the words “section 19F, or farmer-brewery licensees under section nineteen E” and inserting in place thereof the following words:- sections 19B, 19C, and 19F.
SECTION 61E. Section 22 of said chapter 138, as so appearing, is hereby further amended by striking out, in lines 63-67, the words “the words “CONTAINS ALCOHOL: REQUIRES SIGNATURE OF AND PERSONAL DELIVERY TO A PERSON LEGALLY AUTHORIZED TO CONSUME ALCOHOLIC BEVERAGES IN THE COMMONWEALTH” and with a seal of licensure attached thereto as provided by the commission.” and inserting in place thereof the following words:- words that indicate that the package contains alcohol and that the signature of an adult, age 21 years or older, is required for delivery.
SECTION 61F. Section 22 of said chapter 138, as so appearing, is hereby amended by striking out, in line 76, the word “twenty liters.” and inserting in place thereof the following words:- 108 liters.