2012 -- H 7681

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LC01787

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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 - TRANSPORTATION OF BEVERAGES

     Introduced By: Representatives Tanzi, Walsh, O`Grady, Cimini, and Handy

     Date Introduced: February 16, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 3-4-8 of the General Laws in Chapter 3-4 entitled "Transportation

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of Beverages" is hereby amended to read as follows:

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     3-4-8. Unlawful sale and shipment. -- (a) It shall be unlawful for any person in the

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business of selling intoxicating beverages in another state or country to ship or cause to be

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shipped any intoxicating beverage directly to any Rhode Island resident who does not hold a valid

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wholesaler license issued by the State of Rhode Island. The foregoing shall not apply to:

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     (1) any Any order for intoxicating beverages personally placed by the purchaser at the

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manufacturer's premises, for shipment to an address in Rhode Island for nonbusiness purpose. ;

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or

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     (2) Any order for wine purchased from a winery for delivery off the site of the winery

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premises directly to Rhode Island residents for nonbusiness purpose, provided that the following

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conditions are met:

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     (3) The winery makes sales at retail off-site shall produce fewer then ten thousand

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(10,000) cases per year;

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     (4) The consumer shall be limited to the purchase of two (2) cases per month.

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     (b) Wineries authorized to make off-site sales herein shall register with the Rhode Island

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division of taxation and shall be subject to an additional registration fee of one hundred dollars

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($100) per year in addition to any taxes imposed on the sale of wine.

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     Any shipment of intoxicating beverages pursuant to this section shall contain the

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language: "Contains Alcohol, Adult Signature (over 21) Required for Delivery."

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      (b) Any person who violates subsection (a) of this section shall, for the first offense, be

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mailed a certified letter by the department ordering that person to cease and desist any shipment

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of intoxicating beverages to Rhode Island residents and for each subsequent offense shall be fined

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one thousand five hundred dollars ($1,500).

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     SECTION 2. Section 3-6-1.1 of the General Laws in Chapter 3-6 entitled "Manufacturing

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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) gallons of wine during his or her first year of operation,

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not more than five thousand (5000) gallons during his or her second year of operation, not more

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than two thousand five hundred (2500) gallons during his or her third year of operation and not

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more than one thousand (1000) gallons 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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      (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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     SECTION 3. This act shall take effect upon passage.

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LC01787

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO ALCOHOLIC BEVERAGES - TRANSPORTATION OF BEVERAGES

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     This act would allow for the limited distribution of wine off the site directly to Rhode

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Island residents under certain circumstances.

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     This act would take effect upon passage.

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LC01787

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