STATE TAX COMMISSION

Alcoholic Beverage Control

Native Wine Regulations

Regulation

Number Regulation Name Date

1 Qualifications of Applicants 6/07/93

2 Permittees Must Comply with Federal Statutes

3 Stamps 4/21/82

4 Sanitary Codes

5 Three Year Qualification Period

6 Hours of Sale 1/27/82

7 Locations Where Native Wines Maybe

Sold and Processed 6/20/84

NATIVE WINE REGULATION NO. 1

(As Amended 12/13/95)

QUALIFICATIONS OF APPLICANTS

No permit shall be issued for the production of native wine, whether or not at least 51% of the finished product by volume shall have been obtained from fermentation of grapes, fruits, berries, honey or vegetables grown or produced in Mississippi, unless the applicant satisfies the Commission that:

a. The applicant, individual, or each member of an applicant partnership, or each of the officers, directors, and major stockholders of an applicant corporation, is of good moral character and enjoys a reputation of being a peaceable, law-abiding citizen of the community in which he resides is generally fit for the trust to be reposed in him; is not less than 21 years of age; and has not been convicted of a felony in any state or federal court; and

(1) if the applicant is an individual, he is a resident of the State of Mississippi; and

(2) if the applicant is a partnership, each member of the partnership is a resident of the State of Mississippi; and

(3) if the applicant is a corporation, the designated manager is a resident of the State of Mississippi.

b. The applicant is the true and actual owner of the native wine business for which a permit is desired; intends to carry on the business for himself and not as the agent of any other persons; and intends to superintend in person the management of said business or will designate a manager to manage the business for him. Any such manager must be approved by the Commission and must possess all of the qualifications required of an applicant.

c. The place for which a native wine permit is desired is an appropriate one considering the character of the premises and the surrounding neighborhood.

d. The applicant is not indebted to the state for any taxes, fees or payment of penalties imposed by any law of the State of Mississippi or by any rule or regulation of the Commission.

e. The applicant is not in the habit of using alcoholic beverages to excess, is not physically or mentally incapacitated, and has the ability to read and write the English language.

f. The applicant will not sell or knowingly permit any agent, servant or employee to sell native wine in any manner contrary to law.

g. The applicant is not residentially domiciled with any person whose permit or license has been canceled for causes within the 12 months next preceding the date of the application for the native wine permit.

h. The premises for which the native wine permit is sought has not previously been operated, used or frequented for any purpose or in any manner that is lewd or immoral or offensive to public decency.

I. No criminal record of the applicant or any of the applicant's employees exists, nor will the applicant knowingly hire an employee who has been convicted of a felony in the state or federal court.

j. In addition to the above and foregoing requirements, each applicant for a native wine permit, as provided in Section 67-1-51, Mississippi Code of 1972, shall meet all qualifications and requirements presently set forth in the Mississippi Local Option Alcoholic Beverage Control Laws, Rules and Regulations required for permits authorized by said Section 67-1-51.

NATIVE WINE REGULATION NO. 2

PERMITTEES MUST COMPLY WITH FEDERAL STATUTES

No person holding any permit issued under the provisions of this chapter shall engage in any business or activity authorized by such permit unless such person shall qualify so to do by complying with all statutes of the United States of America, and all regulations issued pursuant thereto, which are applicable or shall pertain to such business or activity, and shall continue to be so qualified at all times while engaging in such business or activity. As a prerequisite to the issuance of any permit under this chapter, the applicant shall first obtain the required federal occupational stamp for the type of business for which the permit has been approved by the Commission.

NATIVE WINE REGULATION NO. 3

STAMPS

Persons holding a Class 3, Native Wine Manufacturer's (Producer's) Permit, issued pursuant to Mississippi Code, Annotated, Section 67-1-51, (1972), shall be required to affix a "Mississippi Native Wine Tax Stamp" to the neck or shoulder of each individual bottle or container of native wine produced, or in the alternative to have clearly imprinted on the label of each bottle the words "Mississippi Native Wine." Such stamps shall be secured from the Alcoholic Beverage Control Division.

NATIVE WINE REGULATION NO. 4

SANITARY CODES

All native wines produced under permits issued under Section 67-1-51, Mississippi Code of 1972, shall be produced in accordance with the sanitary codes and production of standards required by applicable federal statutes and regulation of the Bureau of Alcohol, Tobacco and Firearms and the Food and Drug Administration of the United States Government.

NATIVE WINE REGULATION NO. 5

THREE YEAR QUALIFICATION PERIOD

A holder of a Class 3 Native Wine Manufacturer's Permit under Section 67-1-51, Mississippi Code of 1972, shall be allowed to import such bulk and/or fortified wines into this state for use in blending with native wines without payment of any state excise tax that would otherwise accrue thereon. However, with the exception of those permittees granted a three-year qualification period under Section 67-5-5(a)(ii), Mississippi Code of 1972, in order to be classified as "native wine" under the provisions of the Mississippi Native Wine Law and the Local Option Alcoholic Beverage Control Law, at least fifty-one percent (51%) of the finished product by volume shall have been obtained from fermentation of grapes, fruits, berries, honey or vegetables grown and produced in Mississippi.

In addition, permit holders shall make available to the Commission or its representatives all records required by the Federal Government, showing the volume of bulk and/or fortified wines imported for blending or fortifying purposes. The Commission shall satisfy itself that the volume of the wines imported does not exceed the volume the permit holder would reasonably be expected to produce from grapes planted in his vineyard, taking into consideration that fifty-one percent (51%) of the wine must be produced from grapes, fruits, berries, honey or vegetables grown and produced in Mississippi.

NATIVE WINE REGULATION NO. 6

HOURS OF SALE

Native wine retailers may make sales of native wines during the same hours as that allowed for package retailers. Provided, however, the governing body of any location may petition the State Tax Commission to permit sales by native wine retailers located within their jurisdiction at other times. Upon receipt of a petition, or upon their own motion, the Commission shall consider the same and set whatever hours of sale it deems appropriate. All such petitions must be accompanied by a certified copy of the Resolution of the governing authority requesting such permission.

NATIVE WINE REGULATION NO. 7

LOCATIONS WHERE NATIVE WINES MAY BE SOLD AND POSSESSED

All native wine sales made directly to consumers by a native wine retailer, pursuant to Mississippi Code, Annotated, Section 67-5-11 and 67-1-51(e), must be conducted an establishment on or near the immediate vicinity of the native winery. Any such establishment must be approved by the State Tax Commission.

Sales of native wines made to alcoholic beverage permittees shall be conducted at the native winery or at the retail establishment.

Native wines may be possessed and consumed throughout the State of Mississippi. Any person purchasing, possessing or consuming said wine must be at least 21 years of age or older and not otherwise prohibited by Mississippi Code, Annotated, Section 67-1-83(1) and (2). Native wines must, at all times, be labeled or stamped in such a manner to clearly identify the product as a Mississippi native wine.