2012 -- H 7125

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LC00521

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE

LICENSES

     Introduced By: Representatives Nunes, Tanzi, Marcello, Silva, and Keable

     Date Introduced: January 17, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 3-6-1.1 and 3-6-1.2 of the General Laws in Chapter 3-6 entitled

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"Manufacturing and Wholesale Licenses" is hereby amended to read as follows:

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     3-6-1.1. Farmer-winery licenses -- Fee. -- (a) For the purpose of encouraging the

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development of domestic vineyards, the department shall issue a farmer-winery license to any

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applicant of the state and to applying partnerships and to applying corporations organized under

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the laws of any other state of the United States and admitted to do business in this state.

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      (b) A winegrower may operate a farmer's winery under any conditions the department

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may prescribe by regulation.

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      (c) A winegrower may import fruit, flowers, herbs, and vegetables to produce not more

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than seven thousand five hundred (7500) fifteen thousand (15,000) gallons of wine during his or

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her first year two (2) years of operation, not more than five thousand (5000) ten thousand

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(10,000) gallons during his or her second year third or fourth years of operation, not more than

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two thousand five hundred (2500) five thousand (5,000) gallons during his or her third year fifth

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and sixth years of operation and not more than one thousand (1000) two thousand (2,000) gallons

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per year thereafter.

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      (d) If a winegrower suffers crop failure in his or her vineyard in a particular year to the

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extent that the fruit yield from his or her vineyard that year is at least twenty-five percent (25%)

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below the average yield for the previous two (2) years, the winegrower may import fruit into the

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state during that year in an amount equal to the difference between the current year's yield and the

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average for the previous two (2) years. A winegrower shall not import unfermented juice, wine or

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alcohol into the state.

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      (e) A winegrower may sell wine or winery products under his or her label and fermented

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by him or her or another winegrower licensed by the state. He or she may sell wine or winery

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products:

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      (1) At wholesale to any person holding a valid license to manufacture alcoholic

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beverages;

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      (2) At wholesale to any person holding a valid wholesaler's and importer's license under

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sections 3-6-9 -- 3-6-11;

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      (3) At wholesale to any person holding a valid farmer-winery license under this section;

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      (4) At retail by the bottle to consumers for consumption off the winery premises;

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provided, however a winegrower shall not sell wine at retail for delivery off the site of the winery

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premises in Rhode Island directly to Rhode Island residents, except in the manner provided for

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like sales and shipment in section 3-4-8.

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      (5) At wholesale to any person in any state or territory in which the importation and sale

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of wine is not prohibited by law;

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      (6) At wholesale to any person in any foreign country;

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      (7) At wholesale to liquor dealers holding a valid license under the provisions of title 3;

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      (8) At wholesale to restaurants holding a valid license under the provisions of title 3; and

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      (9) At retail by the bottle or by the glass for consumption on the winery premises

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premise. ; and

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     (10) At retail by the bottle or by the glass for consumption at a farmer’s market.

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      (f) A winegrower may not sell at retail to consumers any wine or winery product not

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fermented in the state and sold under the brand name of the winery.

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      (g) A winegrower may serve complimentary samples of wine produced by the winery

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where the wine is fermented in the state and sold under the winery brand name.

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      (h) All wines sold by a licensee shall be sold under any conditions and with any labels or

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other marks to identify the producer as the department may prescribe.

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      (i) Every applicant for a farmer-winery license shall, at the time of filing an application,

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pay a license fee based on a reasonable estimate of the amount of wine to be produced during the

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year covered by the license. Persons holding farmer-winery licenses shall report annually at the

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end of the year covered by the license the amount of wine produced during that year. If the total

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amount of wine produced during the year is less than the amount permitted by the fee already

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paid, the state shall reimburse the licensee for whatever fee was paid in excess. If the total amount

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of wine produced during the year exceeds the amount permitted by the fee already paid, the

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licensee shall pay whatever additional fee is owing.

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     3-6-1.2. Brewpub manufacturer's license. -- (a) A brewpub manufacturer's license shall

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authorize the holder to establish and operate a brewpub within this state. The brewpub

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manufacturer's license shall authorize the retail sale of the beverages manufactured on the

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location for consumption on the premises. The license shall not authorize the retail sale of

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beverages from any location other than the location set forth in the license. A brewpub may sell at

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retail alcoholic beverages produced on the premises by the half-gallon bottle known as a

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"growler" to consumers for off the premises consumption to be sold pursuant to the laws

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governing retail Class A establishments.

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      (b) The license shall also authorize the sale at wholesale at the licensed place by the

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manufacturer of the product of his or her licensed plant as well as beverages produced for the

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brewpub and sold under the brewpub's name to a holder of a wholesaler's license and the

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transportation and delivery from the place of sale to the licensed wholesaler or to a common

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carrier for that delivery.

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      (c) The brewpub manufacturer's license further authorizes the sale of beverages

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manufactured on the premises to any person holding a valid wholesaler's and importer's license

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under section 3-6-9 or 3-6-11.

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     (d) The brewpub manufacturer’s license shall further authorize the sale of beverages

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manufactured on the premises at any farmer’s market.

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      (d)(e) The annual fee for the license is one thousand dollars ($1,000) for a brewpub

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producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) per

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year for a brewpub producing less than fifty thousand (50,000) gallons per year. The annual fee is

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prorated to the year ending December 1 in every calendar year and paid to the division of taxation

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and turned over to the general treasurer for the use of the state.

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     SECTION 2. This act shall take effect upon passage.

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LC00521

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE

LICENSES

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     This act would allow brewers and winegrowers to sell their products at farmer’s markets

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and would also double the amounts of ingredients used to produce wine during the first years of

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operation.

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     This act would take effect upon passage.

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LC00521

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