08 LC
38 0610S
House
Bill 393 (COMMITTEE SUBSTITUTE)
By:
Representatives Stephens of the
164th,
Williams of the
4th,
Tumlin of the
38th,
Amerson of the
9th,
Shaw of the
176th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 2 of Chapter 6 of Title 3 of the Official Code of Georgia
Annotated, relating to state license requirements and regulations for
distribution and sale of wine, so as to change certain provisions relating to
licensing of farm wineries to engage in retail and wholesale sales, surety bond,
and excise taxes; to define certain terms; to change certain provisions relating
to sale by farm wineries of wines, distilled spirits, and malt beverages on or
contiguous to its own premises; to repeal certain provisions relating to content
requirements for wines manufactured by domestic and farm wineries and rules and
regulations designed for enforcement of such requirements; to provide for
related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
2 of Chapter 6 of Title 3 of the Official Code of Georgia Annotated, relating to
state license requirements and regulations for distribution and sale of wine, is
amended by revising Code Section 3-6-21.1, relating to licensing of farm
wineries to engage in retail and wholesale sales, surety bond, and excise taxes,
as follows:
"3-6-21.1.
(a)
As used in this Code section, the term:
(1)
'Farm winery' means a domestic winery located on premises, a substantial portion
of which is used for agricultural purposes, including the cultivation of grapes,
berries, or fruits to be utilized in the manufacture or production of wine by
the winery, or a domestic winery which:
(A)
Makes at least 40 percent of its annual production from agricultural produce
grown in this state;
(B)
Is owned and operated by persons who are engaged in the production of a
substantial portion of the Georgia agricultural produce used in its annual
production; and for this purpose such production of a substantial portion of
such Georgia agricultural produce shall be determined by the commissioner;
and
(C)
Produces less than 100,000 gallons per year.
(2)(1)
'Farm winery' means a winery which makes at least 40 percent of its annual
production from agricultural produce grown in the state where the winery is
located and
(A)
Is located on premises, a substantial portion of which is used for agricultural
purposes, including the cultivation of grapes, berries, or fruits to be utilized
in the manufacture or production of wine by the winery; or
(B)
Is owned and operated by persons who are engaged in the production of a
substantial portion of the agricultural produce used in its annual
production.
For
purposes of this paragraph, the commissioner shall determine what is a
substantial portion of such winery premises or agricultural
produce.
(2)
'Georgia farm winery' means a farm winery which is licensed by the commissioner
to manufacture wine in Georgia.
(3)
'Tasting room' means an outlet for the promotion of a farm winery´s wine by
providing samples of such wine to the public and for the sale of such wine at
retail for consumption on the premises and for sale in closed packages for
consumption off the premises. Samples of wine can be given
complimentary
free of
charge or for a fee.
(b)
The commissioner may authorize any licensee which is a farm winery to sell its
wine and the wine of any other Georgia farm winery licensee at retail in a
tasting room or other facility on the premises of the winery for consumption on
the premises and in closed packages for consumption off the premises and to sell
its wine and the wine of any other Georgia farm winery licensee at retail for
consumption on the premises and in closed packages for consumption off the
premises in tasting rooms and at five additional locations in the state but only
if the annual production of wine by the farm winery is made in Georgia from at
least the following percentages of Georgia grown agricultural products during
the years of production provided below:
(1)
First-year production: Ten percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(2)
Second-year production: Twenty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(3)
Third-year production: Thirty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(4)
Fourth-year production and thereafter: Forty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(b)
The commissioner may authorize any Georgia farm winery to offer wine samples and
to make retail sales of its wine and the wine of any other Georgia farm winery
in tasting rooms at the winery and at five additional locations in the state for
consumption on the premises and in closed packages for consumption off the
premises.
(c)(1)
Except as
provided in paragraph (2) of this subsection,
the
The
commissioner may authorize any licensee which is a farm winery to sell up to
24,000 gallons per
calendar
year of its wine at wholesale within the
state;
but only if
the annual production of wine by the farm winery is made in Georgia from at
least 40 percent of Georgia grown agricultural products.
(2)
The
provided,
however, that the commissioner shall not
authorize any licensed farm winery to sell its wine at wholesale
as provided
in paragraph (1) of this subsection,
unless such licensed farm winery shall have first offered its products for sale
at a fair market wholesale price to a licensed Georgia
wholesaler.
If
and
such wholesaler does not accept the farm winery´s product within 30 days of
such offer,
the provisions of paragraph (1) of this subsection shall
apply.
(d)(1)(2)
A farm winery licensee shall also be authorized to sell, deliver, or ship its
wine in bulk or in bottles, whether labeled or unlabeled, in accordance with
regulations of the commissioner, to
other
Georgia
farm winery licensees
inside the
state and shall be authorized to acquire
and receive deliveries and shipments of such wine made by Georgia farm winery
licensees
inside the
state.
(2)(3)
A
Georgia
farm winery licensee shall be authorized, in accordance with regulations of the
commissioner, to acquire and receive deliveries and shipments of wine in bulk
from out-of-state producers and shippers in an amount not to exceed 20 percent
of its annual production, provided that the
Georgia
farm winery licensee receiving any such shipment or shipments files timely
reports with the commissioner and keeps such records of the receipt of such
shipment or shipments as may be required by the commissioner.
(3)(4)
Any wine received in bulk pursuant to paragraph
(2)(3)
of this subsection shall have levied thereon the requisite taxes as prescribed
by Code Section 3-6-50, and such taxes shall be reported and remitted to the
commissioner as provided in Code Section 3-2-6.
(e)(d)
The annual license tax for each license issued pursuant to this Code section
shall be $50.00.
(f)(e)
The surety bond required as a condition upon issuance of a license pursuant to
this Code section shall be the same as that required pursuant to Code Section
3-6-21 with respect to wineries.
(g)(f)
Wines sold at retail by a manufacturer as provided in subsection (b) of this
Code section shall have levied thereon an excise tax as prescribed by Code
Section 3-6-50, and such tax shall be reported and remitted to the commissioner
as provided in Code Section 3-2-6."
SECTION
2.
Said
article is further amended by revising Code Section 3-6-21.3, relating to sale
by farm wineries of wines, distilled spirits, and malt beverages on or
contiguous to its own premises, as follows:
"3-6-21.3.
(a)
As used in this Code section, the term:
(1)
'Affiliate' means any person controlling, controlled by, or under common control
with
the
a
farm winery.
(2)
'Farm winery' means a farm winery as defined in Code Section
3-6-21.1,
as amended
that is
located in Georgia.
(3)
'Tasting room' has the meaning provided by Code Section 3-6-21.1.
(b)(1)
Notwithstanding any other provision of this title to the contrary, in all
counties or municipalities in which the sale of wine is lawful, the commissioner
may authorize any farm winery licensee to sell its wine and the wine of any
other
Georgia
farm winery licensee for consumption on the premises at facilities located on
the premises of the winery or on property located contiguous to the winery and
owned by the winery or by an affiliate of the winery.
(2)
Notwithstanding any other provisions of this title to the contrary, in all
counties or municipalities in which the sale of distilled spirits, malt
beverages, and wines is lawful, the commissioner further may authorize such
licensee to make sales of distilled spirits, malt beverages, and wines not
produced by
such
licensee
a farm
winery for consumption
on the
premises
in its tasting
rooms and at facilities located on the
premises of the winery or on property located contiguous to the winery and owned
by the winery or by an affiliate of the winery, provided that any alcoholic
beverages sold pursuant to this paragraph shall be purchased by the winery from
a licensed wholesaler at wholesale prices."
SECTION
3.
Said
article is further amended by revising Code Section 3-6-29, relating to the
content requirements for wines manufactured by domestic and farm wineries and
rules and regulations designed for enforcement of such requirements, as
follows:
"3-6-29.
(a)
The annual production of all wines manufactured within this state for sale
within this state by a domestic winery that is not a farm winery as that term is
defined in Code Section 3-6-21.1 shall be made from at least 40 percent of
berries, fruits, and grapes grown within this state.
(b)
The annual production of all wines manufactured within this state for sale
within this state by a farm winery as that term is defined in Code Section
3-6-21.1 shall be made from the following percentages of berries, fruits, and
grapes grown within this state during the year of production provided
below:
(1)
First-year production: Ten percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(2)
Second-year production: Twenty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(3)
Third-year production: Thirty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(4)
Fourth-year production and thereafter: Forty percent
from
Georgia
grown
berries, fruits, or
grapes
berries, fruits, or
grapes
(c)(1)
The commissioner may promulgate reasonable rules and regulations and other
measures designed to ensure proper enforcement of this Code
section.
(2)
The powers conferred upon the commissioner in paragraph (1) of this subsection
are in addition to those powers and duties provided for in Code Section 3-2-1
and Code Section 3-2-2 and nothing contained in paragraph (1) of this subsection
shall prohibit the commissioner from promulgating such reasonable rules and
regulations as he may be empowered to issue under any other Code section to
ensure proper enforcement of this Code
section.
Reserved."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.