CHAPTER 26. DIRECT WINE SELLER'S PERMIT
IC 7.1-3-26
Chapter 26. Direct Wine Seller's Permit
IC 7.1-3-26-1
Applicability
Sec. 1. This chapter does not apply to the serving or selling of:
(1) wine in accordance with IC 7.1-3-12; or
(2) brandy in accordance with IC 7.1-3-7.5.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-2
"Applicant"
Sec. 2. As used in this chapter, "applicant" means a person thatapplies to the commission for a direct wine seller's permit.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-3
"Consumer"
Sec. 3. As used in this chapter, "consumer" means an individualwith an Indiana address who purchases wine from a seller.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-4
"Seller"
Sec. 4. As used in this chapter, "seller" means the holder of adirect wine seller's permit issued under this chapter.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-5
Direct wine seller permit required for direct sales to consumers
Sec. 5. A person located within Indiana or outside Indiana thatwants to sell and ship wine directly to a consumer must be the holderof a direct wine seller's permit and comply with this chapter.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-6
Consumer qualifications
Sec. 6. A seller may sell and ship wine directly only to a consumerwho meets all of the following requirements:
(1) The consumer is at least twenty-one (21) years of age.
(2) The consumer has an Indiana address.
(3) The consumer intends to use wine purchased under thischapter for personal use only and not for resale or othercommercial purposes.
(4) Except as provided in subdivision (5), the consumer hasprovided to the seller in one (1) initial face-to-face transactionat the seller's place of business appearing on the seller'sapplication for a direct wine seller's permit or any locationsauthorized by IC 7.1-3-12-5 all the following:
(A) Name, telephone number, Indiana address, or consumer's
Indiana business address.
(B) Proof of age by a state issued driver's license or stateissued identification card showing the consumer to be atleast twenty-one (21) years of age.
(C) A verified statement, made under penalties for perjury,that the consumer satisfies the requirements of subdivisions(1) through (3).
(5) If:
(A) before April 1, 2006, the consumer has engaged in atransaction with a seller in which the seller sold wine to theconsumer and, after April 1, 2006, but before December 31,2006, the consumer provides the seller with a verifiedstatement, made under penalties for perjury, that theconsumer is at least twenty-one (21) years of age; and
(B) the seller provides the name and Indiana address of theconsumer to the commission before January 15, 2007;
the seller may sell directly to the consumer in accordance withthis chapter.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-7
Qualifications of applicant for direct wine seller permit
Sec. 7. (a) The commission may issue a direct wine seller's permitto an applicant who meets all of the following requirements:
(1) The applicant is domiciled and has its principal place ofbusiness in the United States.
(2) The applicant is engaged in the manufacture of wine.
(3) The applicant holds and acts within the scope of authorityof an alcoholic beverage license or permit to manufacture winethat is required:
(A) in Indiana or the state where the applicant is domiciled;and
(B) by the Tax and Trade Bureau of the United StatesDepartment of the Treasury.
(4) The applicant qualifies with the secretary of state to dobusiness in Indiana and consents to the personal jurisdiction ofthe commission and the courts of Indiana.
(5) The applicant files a surety bond with the commission inaccordance with IC 7.1-3-1, or deposits cash in an escrowaccount with the commission, in the amount required of anapplicant for a vintner's permit under IC 7.1-3-1-7.
(6) The applicant:
(A) does not hold a permit or license to wholesale alcoholicbeverages issued by any authority; and
(B) is not owned in whole or in part or controlled by aperson who holds a permit or license to wholesale alcoholicbeverages.
(7) The applicant sells not more than one million (1,000,000)gallons of wine per year in Indiana, excluding wine shipped toan out-of-state address. (8) The applicant:
(A) has not distributed wine through a wine wholesaler inIndiana within the one hundred twenty (120) daysimmediately preceding the applicant's application for a directwine seller's permit and does not distribute wine through awine wholesaler in Indiana during the term of the direct wineseller's permit; or
(B) has operated as a farm winery under IC 7.1-3-12.
(9) The applicant is not the parent, subsidiary, or affiliate ofanother entity manufacturing any alcoholic beverage.
(10) The applicant completes documentation regarding theapplicant's application required by the commission.
(b) The commission may issue a direct wine seller's permit to anapplicant who:
(1) meets the requirements under subsection (a); and
(2) holds a permit issued under this title that allows the sale ofan alcoholic beverage at retail.
As added by P.L.165-2006, SEC.34. Amended by P.L.54-2008,SEC.3.
IC 7.1-3-26-8
Permit expiration, renewal, and fee
Sec. 8. (a) The term of a direct wine seller's permit begins:
(1) the date approved by the commission for an initialapplication; and
(2) on July 1 to renew a permit;
and expires on June 30 of the following year. A direct wine seller'spermit may be renewed in accordance with rules adopted by thecommission.
(b) The annual direct wine seller's permit fee is one hundreddollars ($100).
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-9
Direct wine seller; authorized activities
Sec. 9. A direct wine seller's permit entitles a seller to sell andship wine to a consumer by receiving and filling orders that theconsumer transmits by electronic or other means if all of thefollowing conditions are satisfied before the sale or by the times setforth as follows:
(1) The consumer provides the direct wine seller with thefollowing:
(A) The verification required by section 6(4) of this chapterin an initial face-to-face transaction.
(B) Notwithstanding clause (A), if the consumer providedthe information specified in section 6(5)(A) of this chapterafter April 1, 2006, but before December 31, 2006, and theseller provides the name and Indiana address of theconsumer under section 6(5)(B) of this chapter to thecommission before January 15, 2007, the consumer is not
required to comply with section 6(4) of this chapter.
(2) The direct wine seller meets the following requirements:
(A) Maintains for two (2) years all records of wine salesmade under this chapter. If the records are requested by thecommission, a direct wine seller shall:
(i) make the records available to the commission duringthe direct wine seller's regular business hours; or
(ii) at the direction of the commission, deliver copies tothe commission.
(B) Stamps, prints, or labels on the outside of the shippingcontainer the following: "CONTAINS WINE. SIGNATUREOF PERSON AGE 21 OR OLDER REQUIRED FORDELIVERY.".
(C) Causes the wine to be delivered by the holder of a validcarrier's alcoholic beverage permit under IC 7.1-3-18.
(D) Directs the carrier to verify that the individual personallyreceiving the wine shipment is at least twenty-one (21) yearsof age.
(E) Does not ship to any consumer more than two hundredsixteen (216) liters of wine in any calendar year.
(F) Remits to the department of state revenue monthly allIndiana excise, sales, and use taxes on the shipments madeinto Indiana by the direct wine seller during the previousmonth.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-10
Direct sales of brandy prohibited
Sec. 10. It is unlawful for the holder of a farm winery brandydistiller's permit to ship or cause to be shipped brandy producedunder this title to a consumer.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-11
Consumer information
Sec. 11. A consumer shall provide a direct wine seller withinformation the direct wine seller reasonably requires, including theconsumer's name, Indiana address, telephone number, and otherinformation required by the commission.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-12
Annual limit on seller's direct wine sales in Indiana
Sec. 12. During a permit year, a direct wine seller may not directship in Indiana more than twenty-seven thousand (27,000) liters ofwine.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-13
Delivery to consumer or individual at least 21 years of age Sec. 13. A wine shipment purchased under this chapter must bedelivered to:
(1) the consumer, who shall take personal delivery of theshipment at the:
(A) consumer's residence;
(B) consumer's business address;
(C) carrier's business address; or
(D) address displayed on the shipping container; or
(2) an individual who is at least twenty-one (21) years of age,who shall take personal delivery of the shipment at the:
(A) consumer's residence;
(B) consumer's business address;
(C) carrier's business address; or
(D) address designated by the consumer and displayed on theshipping container.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-14
Annual limit on wine received by a consumer
Sec. 14. A consumer may not receive more than two hundredsixteen (216) liters of wine in total from one (1) or more direct winesellers in a calendar year.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-15
Violations; penalties
Sec. 15. (a) Except as provided in subsections (b) and (c), a sellerwho violates this chapter commits a Class A infraction.
(b) Except as provided in subsection (d), a seller who:
(1) knowingly or intentionally violates this chapter; and
(2) has one (1) prior unrelated conviction or judgment for aninfraction under this section for an act or omission that occurrednot more than ten (10) years before the act or omission that isthe basis for the most recent conviction or judgment for aninfraction;
commits a Class A misdemeanor.
(c) Except as provided in subsection (d), a seller who:
(1) knowingly or intentionally violates this chapter; and
(2) has at least two (2) prior unrelated convictions or judgmentsfor infractions under this section for acts or omissions thatoccurred not more than ten (10) years before the act or omissionthat is the basis for the most recent conviction or judgment foran infraction;
commits a Class D felony.
(d) A person who violates section 6(5) of this chapter commits aClass A infraction. The commission may consider an infractioncommitted under this subsection in its determination of whether torenew a seller's permit.
As added by P.L.165-2006, SEC.34.
IC 7.1-3-26-16
Direct wine sellers; defense
Sec. 16. If a direct wine seller is charged under section 15 of thischapter with selling to a consumer who does not meet therequirements of section 6 of this chapter, it is a defense to the chargeif the direct wine seller obtained from the consumer the verifiedstatement required under section 6(4)(C) or 6(5)(A) of this chapterand produces a copy of the verified statement.
As added by P.L.165-2006, SEC.34. Amended by P.L.1-2007,SEC.68.