Amends TCA Section 57-3-207.

Present law authorizes a licensed winery to obtain an additional self-distribution permit from the alcoholic beverage commission if the winery has total annual wine production of 50,000 gallons or less. The commission is prohibited from issuing a self-distribution permit to a winery that has registered a distribution contract with a licensed wholesaler licensed, if the terms of that contract include distribution rights for a county that is located, in whole or in part, within 100 miles of the licensed winery where the wine being distributed has been manufactured, produced, or bottled. Any winery holding a self-distribution permit that registers such a distribution contract with a wholesaler or whose total output in a calendar year exceeds 50,000 gallons must cease self-distributing its wine and promptly surrender the winery's self-distribution permit. A winery seeking a self-distribution permit may distribute not more than 3,000 cases of wine manufactured, produced, or bottled on the winery's premises to any licensee holding a license for on-premises consumption, located within 100 miles of the winery's premises where such wine has been manufactured, produced, or bottled. THIS BILL This bill replaces present law. Under this bill, a licensed winery will be authorized to obtain an additional self-distribution permit from the commission if the winery pays the gallon tax at its licensed facility on 75,000 gallons or less. Under this bill, a winery holding a self-distribution permit may distribute wine manufactured, produced, or bottled on the winery's premises to a licensee holding a license for on-premises consumption: (1) In the county in which the winery is located; and (2) Outside the county in which the winery is located, if the winery self-distributes not more than 6,000 cases of wine annually and is not prohibited from self-distribution in the particular county by the winery's contract with a wholesaler. This bill prohibits a winery self-distributing outside the county where the winery is located from self-distributing more than 6,000 cases of wine annually in this state. If a winery self-distributes more than 6,000 cases of wine in a year, including in one or more counties outside the county in which the winery is located, this bill requires the winery to contract with a wholesaler to distribute the manufacturer's wine within 90 days of exceeding such limitation.