2016 -- H 8068

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LC005408

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE

     Introduced By: Representatives Casey, Keable, Blazejewski, Johnston, and Lima

     Date Introduced: April 13, 2016

     Referred To: House Corporations

     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 their 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 licensee's 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. Section 3-4-8 of the General Laws in Chapter 3-4 entitled "Transportation

of Beverages" is hereby amended to read as follows:

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

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

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

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

holders pursuant to §3-6.1-1 or §3-27-29 or for any order for intoxicating beverages personally

placed by the purchaser at the manufacturer's premises, for shipment to an address in Rhode

Island for nonbusiness purpose. Any shipment of intoxicating beverages pursuant to this section

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

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

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

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

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

     SECTION 3. Chapter 3-7 of the General Laws entitled "Retail Licenses" is hereby

amended by adding thereto the following section:

     3-7-29. Gift basket license. -- (a) A gift basket retailer license shall allow the retail sale

of wine included in a gift basket sold at retail by the license holder. The wine shall not be

consumed on the premises and the license holder shall be located in this state and the wine shall

only be purchased by the license holder from the holder of a retail or wholesale license issued

pursuant to title 3.

     (b) The holder of a gift basket retailer license may sell gift baskets which may include:

     (1) A maximum of four (4) bottles of wine per basket;

     (2) Food items;

     (3) Non-alcoholic beverages;

     (4) Concentrates used in the preparation of mixed alcoholic beverages;

     (5) Wine-making kits and products related to wine-making kits;

     (6) Ice in any form;

     (7) Articles of clothing imprinted with advertising related to the alcoholic liquor industry

or the permittee's gift basket business;

     (8) Flowers, plants and garden-related items;

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     (9) Drinking glasses, bottle opening devices and literature related to wine; or

     (10) Gift certificates.

     The sale of such gift baskets shall only take place during the times permitted for the sale

of alcoholic beverages in places operating under licenses issued pursuant to title 3. The holder of

a gift basket retailer license shall not sell such gift baskets on premises operating under any other

license issued pursuant to title 3. Nothing in this section shall prohibit the holder of a retail

license pursuant to title 3 from selling any item permitted for sale by such licensee pursuant to

said section.

     (c) The annual fee for a gift basket retailer license shall be two hundred dollars ($200).

     (d) A gift basket retailer license shall allow the sale and delivery or shipment of gift

baskets containing wine directly to a consumer in this state, subject to the provisions of this

section, or to a consumer outside of this state, subject to all applicable laws of the jurisdiction in

which such consumer outside of this state is located. Such licensee, when selling and shipping

gift baskets containing wine directly to a consumer in this state, shall:

     (1) Ensure that the shipping labels on all gift baskets containing wine shipped directly to

a consumer in this state conspicuously state the following: "CONTAINS ALCOHOL-

SIGNATURE OF A PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY";

     (2) Obtain the signature of a person age twenty-one (21) or older at the address prior to

delivery, after requiring the signer to demonstrate that they are age twenty-one (21) or older by

providing a valid motor vehicle operator's license or other acceptable form of identification

approved by the department;

     (3) Pay to the division of taxation all sales taxes as required on sales of gift baskets;

     (4) Report to the attorney general consumer protection unit a separate and complete

record of all sales and shipments to consumers in the state, on a ledger sheet or similar form

which readily presents a chronological account of such permittee's dealings with each such

consumer;

     (5) Permit the attorney general consumer protection unit and the division of taxation,

separately or jointly, to perform an audit of the licensee's records upon request; and

     (6) Not ship to any address in the state where the sale of alcoholic liquor is prohibited by

local ordinance.

     (e) A holder of a gift basket retailer license, when advertising or offering wine for direct

shipment to a consumer in this or another state via the Internet or any other online computer

network, shall clearly and conspicuously state its gift basket retailer license number in its

advertising.

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     (f) The attorney general consumer protection unit, in consultation with the division of

taxation, may adopt regulations to ensure compliance with the provisions of this section.

     SECTION 4. 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

***

     This act would create a wine direct shipper license and a wine gift basket license

allowing for the shipment of certain amounts of wine both in and out-of-state.

     This act would take effect upon passage.

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