Present law concerning wineries defines "premises" to mean any and all of the real property owned or leased by the winery.
This bill authorizes a licensed winery to enter into an alternating proprietorship agreement whereby two or more licensed wineries share all or a portion of a bonded or general premises, or both, subject to the following:
(1) Parties to an alternating proprietorship agreement may alternate the use of a bonded or general premises, or both, or part of a bonded or general premises, or both, for the purpose of manufacturing and warehousing wine;
(2) A winery that is a party to an alternating proprietorship agreement is required to maintain a room or separate area of the general premises that is exclusively occupied by that winery;
(3) Each winery that is a party to an alternating proprietorship agreement shall individually receive approval of the agreement from the commission and shall receive any required approvals from the Alcohol and Tobacco Tax and Trade Bureau (TTB), prior to commencing operations at the general premises.
(4) The full text of this bill specifies information that a winery seeking approval for an alternating proprietorship agreement must submit to the alcoholic beverage commission;
(5) Only the winery participating in an alternating proprietorship agreement that is the property owner or primary lessee of the general premises may exercise retail rights and privileges under the agreement. If there are two or more wineries that are property owners or are primary lessees, only one winery may exercise the retail rights and privileges; and
(6) The wineries that are parties to an alternating proprietorship agreement must not be owned by the same individual or entity or by substantially similar ownership, as defined in the full text of this bill.

Statutes affected:
Introduced: 57-3-101(a), 57-3-101, 57-3-207