2015 -- S 0501

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LC000477

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE

     Introduced By: Senators Satchell, Goldin, McCaffrey, Lombardi, and Sosnowski

     Date Introduced: February 26, 2015

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 3 of the General Laws entitled "ALCOHOLIC BEVERAGES" is

hereby amended by adding thereto the following chapter:

CHAPTER 6.1

WINE DIRECT SHIPPER LICENSE

     3-6.1-1. Wine direct shipper license. -- (a) Notwithstanding any law, rule or regulation

to the contrary, any person currently licensed in this or any other state as a wine producer,

supplier, importer, wholesaler, distributor or retailer who obtains a wine direct shipper license, as

provided below, may ship up to twenty-four (24), nine (9) liter cases of wine annually directly to

a resident of Rhode Island who is at least twenty-one (21) years of age for such resident's

personal use and not for resale.

     (b) Before sending any shipment to a resident of Rhode Island the wine direct shipper

licensee must first:

     (1) File an application with the department of business regulation (department);

     (2) Pay a one hundred dollar ($100) registration fee;

     (3) Provide to the department a true copy of its current alcoholic beverage license issued

in this or any other state; and

     (4) Obtain from the department a wine direct shipper license.

     3-6.1-2. Restrictions, requirements and duties. -- All wine direct shipper licensees

shall:

     (1) Not ship more than twenty-four (24), nine (9) liter cases of wine annually to any

person for his or her personal use and not for resale;

     (2) Not ship to any address in an area identified by the department as a "dry" or local

option area;

     (3) Ensure that all containers of wine shipped directly to a resident in this state are

conspicuously labeled with the words "CONTAINS ALCOHOL SIGNATURE OF PERSON

AGE 21 OR OLDER REQUIRED FOR DELIVERY";

     (4) If located outside of this state, report to the department annually the total amount of

wine shipped into the state the preceding calendar year;

     (5) If located outside of this state, annually pay to the division of taxation all sales taxes

and excise taxes due on sales to residents of Rhode Island in the preceding calendar year, the

amount of such taxes to be calculated as if the sale were in Rhode Island at the location where

delivery is made;

     (6) If located within this state, provide the division of taxation any additional information

deemed necessary beyond that already required for retail sales from the winery tasting room to

ensure compliance with this section;

     (7) Permit the department or the division of taxation to perform an audit of the wine

direct shipper licensees records upon request;

     (8) Be deemed to have consented to the jurisdiction of the department or any other state

agency and the Rhode Island courts concerning enforcement of this section and any related laws,

rules or regulations.

     3-6.1-3. License renewal. -- The wine direct shipper licensee may annually renew its

license with the department by paying a fifty dollar ($50.00) renewal fee and providing the

department a true copy of its current alcoholic beverage license issued in this or any other state.

     3-6.1-4. Promulgation of rules and regulations. -- The department and the division of

taxation may promulgate rules and regulations to effectuate the purposes of this law.

     3-6.1-5. Suspension and/or revocation of licenses. -- The department may enforce the

requirements of this section by administrative proceedings to suspend or revoke a wine direct

shipper license, and the department may accept payment of an offer in compromise in lieu of

suspension, such payments to be determined by rule promulgated by the department.

     3-6.1-6. Penalties for violations. -- Shipments of wine direct to consumers in Rhode

Island from persons who do not possess a current wine direct shipper license from the department

are prohibited. Any person who knowingly makes, participates in, transports, imports or receives

such a shipment is guilty of a misdemeanor punishable by a fine up to and including one thousand

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five hundred dollars ($1,500) and/or imprisonment for a period of up to one year. Without

limitation on any punishment or remedy, criminal or civil, any person who knowingly makes,

participates in, transports, imports or receives such a shipment commits an unfair trade practice.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE

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     This act would create a wine direct shipper license for licensed producers in this or any

state, to directly ship a limited amount of wine to residents age twenty-one (21) or older, for

personal consumption, with oversight by the department of business regulation and/or the

division of taxation. Violations of this act would be punishable as a misdemeanor, with a fine of

up to one thousand five hundred dollars ($1,500), and/or imprisonment for a period of up to one

year.

     This act would take effect upon passage.

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