Bill Summary – FastDemocracy

0526.01000
     Sixty-sixth
     Legislative Assembly                    HOUSE BILL NO. 1190
     of North Dakota
     Introduced by
       Representatives D. Ruby, Becker, Boschee, Johnston, Kasper
       Senators Heckaman, Hogue, Krebsbach, J. Roers
  A BILL for an Act to amend and reenact section 5-01-17 of the North Dakota Century Code,
  relating to domestic winery licenses.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. AMENDMENT. Section 5-01-17 of the North Dakota Century Code is amended
  and reenacted as follows:
      5-01-17. Domestic winery license.
      1.   The tax commissioner may issue a domestic winery license to the owner or operator of
           a winery located within this state to produce wine. The percentage of ingredients by
           volume, excluding water, of wine produced by a domestic winery which must be grown
          and produced in this state must be at least ten percent in the second year of licensure,
          twenty percent in the third year of licensure, thirty percent in the fourth year of
          licensure, forty percent in the fifth year of licensure, and fifty-one percent in the sixth
          and subsequent years of licensure. Domestic wineries may be granted an exemption
          from the ingredient utilization requirement whenever the state tax commissioner
          determines, upon the commissioner's own motion or at the request of a domestic
          winery, that weather conditions, pest infestations, plant disease epidemics, or other
          natural causes have reduced the quantity or quality of produce grown in this state to
          an extent that renders compliance with the ingredient utilization requirement infeasible.
          The exemption is effective for one year unless the tax commissioner issues a new
          exemption. A domestic winery may purchase, at wholesale or retail, brandy for use of
          onpremises fortification. A domestic winery license may be issued and renewed for an
          annual fee of one hundred dollars, which is in lieu of all other license fees required by
          this title.
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      2.   A domestic winery may sell wine produced by that winery at on sale or off sale, in retail
           lots, and not for resale, and may sell or direct ship its wine to persons inside or outside
           of the state in a manner consistent with the laws of the place of the sale or delivery in
           total quantities not in excess of twenty-five thousand gallons [94635 liters] in a
           calendar year; glassware; wine literature and accessories; and cheese, cheese
           spreads, and other snack food items. A licensee may dispense free samples of the
           wines offered for sale. Subject to local ordinance, sales at on sale and off sale may be
           made on Sundays between twelve noon and twelve midnight. The tax commissioner
           may issue special eventsevent permits for not more than twentyforty events per
          calendar year to a domestic winery allowing the winery, subject to local ordinance, to
          give free samples of its wine and to sell its wine by the glass or in closed containers, at
          off-premises events. To participate in a pride of Dakota event sponsored by the
          department of agriculture, a domestic winery shall obtain a special eventsan event
          permit. Participation by a domestic winery in a pride of Dakota event sponsored by the
          department of agriculture does not count against the twenty specialforty events
          limitation. A domestic winery may not engage in any wholesaling activities. All sales
          and deliveries of wines to any other retail licensed premises in this state may be made
          only through a licensed North Dakota liquor wholesaler. For any month in which a
          domestic winery has made sales to a North Dakota wholesaler, that domestic winery
          shall file a report with the tax commissioner no later than the last day of each calendar
          month reporting sales made during the preceding calendar month. When the last day
          of the calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the
          first working day thereafter.
     3.   A domestic winery may obtain a domestic winery license and a retailer license allowing
          the onpremises sales of alcoholic beverages at a restaurant owned by the licensee
          and located on property contiguous to the winery.
     4.   A domestic winery is subject to section 5-03-06 and shall report and pay annually to
          the tax commissioner the wholesaler taxes due on all wines sold by the licensee at
          retail, including all wines shipped directly to consumers as set forth in sections 5-03-07
          and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the
          year following the year sales were made. When the fifteenth of January falls on a
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         Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The
         report must provide such detail and be in a format as prescribed by the tax
         commissioner. The tax commissioner may require that the report be submitted in an
         electronic format approved by the tax commissioner.
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Statutes affected: 
INTRODUCED: 5-01-17
Prepared by the Legislative Council staff for Representative Ruby: 5-01-20
Enrollment: 5-01-17, 5-01-20