Current through 2024 First Special Session
Section 60-4-3a - Distillery, mini-distillery, and micro-distillery license to manufacture and sell(a) Sales of liquor. - An operator of a distillery, mini-distillery, or micro-distillery may offer liquor for retail sale to customers from the distillery, mini-distillery, or micro-distillery for consumption off-premises only. Except for samples offered pursuant to § 60-6-1 of this code, customers may not consume any liquor on the premises of the distillery, mini-distillery, or micro-distillery, except for a distillery, mini-distillery, or micro-distillery that obtains a private manufacturer club license set forth in § 60-7-1et seq. of this code, and a Class A retail dealer license set forth in § 11-16-1et seq. of the code: Provided, That a licensed distillery, mini-distillery, or micro-distillery may offer samples of alcoholic liquors as authorized by this subsection when alcoholic liquors are manufactured by that licensed distillery, mini-distillery, or micro-distillery for consumption on the licensed premises. Notwithstanding any other provision of law to the contrary, a licensed distillery, mini-distillery, or micro-distillery may sell, furnish, and serve alcoholic liquors when licensed accordingly beginning at 6:00 a.m. unless otherwise determined by the residents of the county pursuant to § 7-1-3ss of this code.(b) Retail on-premises and off-premises consumption sales. - Every licensed distillery, mini-distillery, or micro-distillery shall comply with the provisions of § 60-3A-9, § 60-3A-11, § 60-3A-13, § 60-3A-16, § 60-3A-17, § 60-3A-18, § 60-3A-19, § 60-3A-22, § 60-3A-23, § 60-3A-24, § 60-3A-25, and § 60-3A-26 of this code, and the provisions of § 60-3-1et seq., § 60-4-1et seq., and § 60-7-1et seq. of this code, applicable to liquor retailers, and distillers. In the interest of promoting tourism throughout the state, every licensed distillery, mini-distillery, or micro-distillery manufacturing liquor in this state is authorized, with a limited off-site retail privilege at private fairs and festivals, for on-premises consumption sales served by the drink or glass, off-premises consumption sales by the bottle of only the licensed distillery, mini-distillery, or micro-distillery's sealed liquor. At least five days prior to an approved private fair and festival, an authorized distillery, mini-distillery, or micro-distillery shall provide a copy of a written agreement to sell only liquor manufactured by the licensed distillery, mini-distillery, or micro-distillery at the private fair and festival's licensed premises. If approved, an authorized distillery, mini-distillery, or micro-distillery may conduct on-premises and off-premises consumption sales of its liquor from a designated booth at the private fair and festival as set forth in § 60-7-8a of this code. All authorized and approved distilleries, mini-distilleries, and micro-distilleries' off-premises consumption sales shall comply with all retail requirements in § 60-3A-1et seq. of this code, and specifically § 60-3A-17 of this code with respect to all markups, taxes, and fees and also all retail requirements of § 60-7-1et seq. of this code when applicable. Additionally, every authorized distillery, mini-distillery, and micro-distillery may provide samples to patrons who are 21 years of age and older and who are not intoxicated. The liquor samples of the licensed distillery, mini-distillery, or micro-distillery's product on any sampling day shall not exceed: (1) Three separate and individual sample servings per customer verified to be 21 years of age or older; and(2) Six ounces in total volume. Samples may be mixed with each other or with nonalcoholic liquids as long as the total amount of the liquor sampled does not exceed six ounces.(c) Payment of taxes and fees. - The distillery, mini-distillery, or micro-distillery shall pay all taxes and fees required of licensed retailers and meet applicable licensing provisions as required by this chapter and by rule of the commissioner, except for payments of the wholesale markup percentage and the handling fee provided by rule of the commissioner: Provided, That all liquor for sale to customers from the distillery, mini-distillery, or micro-distillery for off-premises consumption is subject of a five percent wholesale markup fee and an 80 cents per case bailment fee to be paid to the commissioner: Provided, however, That liquor sold by the distillery, mini-distillery, or micro-distillery shall not be priced less than the price set by the commissioner pursuant § 60-3A-17 of this code.(d) Payments to market zone retailers. - Each distillery, mini-distillery, or micro-distillery shall submit to the commissioner two percent of the gross sales price of each retail liquor sale for the value of all sales at the distillery, mini-distillery, or micro-distillery each month. Any sales by a distillery, mini-distillery, or micro-distillery at a private fair and festival are treated as occurring on their licensed premises for purposes of this market zone calculation. This collection shall be distributed by the commissioner, at least quarterly, to each market zone retailer located in the distillery, mini-distillery, or micro-distillery's market zone, proportionate to each market zone retailer's annual gross prior years pretax value sales. The maximum amount of market zone payments that a distillery, mini-distillery, or micro-distillery shall submit to the commissioner is $15,000 per annum.(e) Limitations on licensees. - A distillery, mini-distillery, or micro-distillery may not produce more than 50,000 gallons per calendar year. The commissioner may issue more than one distillery, mini-distillery, or micro-distillery license to a single person or entity and a person may hold both a distillery and a mini-distillery license. The owners of a licensed distillery, mini-distillery, or micro-distillery may operate a winery, farm winery, brewery, or as a resident brewer as otherwise specified in the code.(f) Building code and tax classification. - Notwithstanding any provision of this code to the contrary, the mere addition of a distillery, mini-distillery, or micro-distillery licensed under this article on a property does not change the nature or use of the property which otherwise qualifies as agricultural use for building code and property tax classification purposes.(g) A political subdivision of this state may not regulate any of the following activities of a distillery, mini-distillery, or micro-distillery licensed and operating in accordance with this section: (1) The on-premises sale, tasting, or consumption of liquor during business hours set forth in § 60-7-12 of this code;(2) The storage, warehousing, and wholesaling of liquor in accordance with the rules of the commissioner and federal law or regulations; or(3) The sale of liquor related items including but not limited to the sale of pre-packaged food not requiring kitchen preparation that are incidental to the sale of liquor and on-premises consumption.Amended by 2024 Acts, ch. TBD (HB 5294), eff. 5/1/2024.Amended by 2023 Acts, ch. 4 (SB 534), eff. 6/9/2023.Amended by 2021 Acts, ch. 9 (HB 2025), eff. 5/10/2021.Amended by 2020 Acts, ch. 9 (HB 4697), eff. 6/5/2020.Amended by 2016 Acts, ch. 48 (SB 298), eff. 6/10/2016.Amended by 2015 Acts, ch. 14 (SB 574), eff. 6/12/2015.