2016 -- H 7026

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LC003073

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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

     

     Introduced By: Representatives Carson, Gallison, Fogarty, Naughton, and Craven

     Date Introduced: January 07, 2016

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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

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Provisions" is hereby amended to read as follows:

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     3-1-1. Definitions. -- As used in this title, unless the context otherwise requires:

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      (1) "Beverage" means any liquid which either by itself or by mixture with any other

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liquid or liquids is or may become fit for human consumption as a drink and which contains five-

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tenths of one per cent (.5%) or more of alcohol by weight.

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      (2) "Club" means a corporation subject to the provisions of chapter 6 of title 7, owning,

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hiring, or leasing a building or space in a building of such extent and character as may be suitable

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and adequate for the reasonable and comfortable accommodation of its members, and whose

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affairs and management are conducted by a board of directors, executive committee or other

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similar body chosen by the members at a meeting held for that purpose, none of whose members,

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officers, agents, or employees are paid directly or indirectly any compensation by way of profit

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from the distribution or sale of beverages to the members of the club or to its guests beyond the

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amount of any reasonable salary or wages as may be fixed and voted each year by the directors or

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other governing body.

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      (3) "Department" means the department of business regulation.

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      (4) "Director" means the director of the department of business regulation.

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      (5) "Division of taxation" means the division of taxation of the department of

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administration.

 

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      (6) "Farmer-winery" means any plant or premise where wine is produced, rectified,

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blended or fortified from fruits, flowers, herbs or vegetables.

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      (7) "Import" means at one time or in one transaction to take or cause to be taken into this

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state from outside the state any malt beverage in excess of eight (8) gallons or any vinous

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beverage or any beverage consisting in whole or in part of alcohol produced by distillation in

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excess of three (3) gallons.

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      (8) "Intoxicating beverage" means a beverage which contains more than three and two-

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tenths percent (3.2%) of alcohol by weight.

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      (9) "Malt beverage" means any beverage which is usually produced at breweries, as

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distinguished from distilleries.

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      (10) "Nonintoxicating beverage" means a beverage which contains not more than three

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and two-tenths percent (3.2%) of alcohol by weight.

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     (10.1) "Powdered alcohol" means alcohol prepared for sale or other distribution in a dry

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powder or crystalline or encapsulated in dry or crystalline form for direct consumption or

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reconstitution.

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      (11) "Tavern" means any house where the principal business is the furnishing of food

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and sleeping accommodations.

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      (12) "Victualing house" means any shop or place where a substantial part of the business

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is the furnishing of food for consumption at the place where it is furnished.

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      (13) "Winegrower" means any person licensed to operate a farmer's winery under § 3-6-

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1.1.

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      (14) "Wines" means all fermented alcoholic beverages made from fruits, flowers, herbs,

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or vegetables and containing not more than twenty-four percent (24%) of alcohol by volume at

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sixty degrees Fahrenheit (60 degrees F), except cider obtained by the alcohol fermentation of the

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juice of apples and containing not less than five tenths of one percent (.05%) or containing not

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more than six percent (6%), of alcohol by weight at sixty degrees Fahrenheit (60 degrees F)

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including but not limited to flavored, sparkling, or carbonated cider.

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     SECTION 2. Chapter 3-8 of the General Laws entitled "Regulation of Sales" is hereby

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amended by adding thereto the following section:

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     3-8-17. Possession or sale of powdered alcohol prohibited. -- (a) It is unlawful for a

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person, firm, or corporation to furnish, procure, deliver, sell, offer to sell or deliver or permit to

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be sold or delivered powdered alcohol to any person who has not reached their twenty-first

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birthday.

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     (b) It shall also be unlawful for any person who has not reached their twenty-first

 

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birthday to possess powdered alcohol as defined in this chapter.

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     (c) This section does not apply to use, consumption or possession of powdered alcohol by

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a minor for religious purposes, or to a parent or legal guardian procuring or furnishing powdered

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alcohol to or permitting the consumption of powdered alcohol by their minor child or ward for

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religious purposes.

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     (d) This section shall not apply to the use of powdered alcohol for a bona fide research

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purpose by:

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     (1) A health care provider that operates primarily for the purpose of conducting scientific

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research;

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     (2) A state institution;

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     (3) A private college or university; or

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     (4) A pharmaceutical or biotechnology company.

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     (e) Any person, firm or corporation who violates subsection (a) of this section shall be

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subject to the penalties provided in §3-8-11.2.

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     (f) Any person who violates subsection (b) of this section shall be subject to the penalties

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provided in §3-8-10.

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     SECTION 3. Section 3-10-1.1 of the General Laws in Chapter 3-10 entitled "Taxation of

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Beverages" is hereby amended to read as follows:

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     3-10-1.1. Alcoholic beverage floor stock tax. -- (a) Each person, firm, or corporation

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licensed to sell intoxicating beverages at wholesale or retail in this state shall pay to the state for

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the privilege of engaging in this business during any part of the calendar year 1989, an excise tax

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at the following rates on all of these beverages held by the licensee in this state on June 30, 1989.

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      (1) Still wines (whether fortified or not), 20/c per gallon;

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      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state, 10/c

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per gallon;

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      (3) Sparkling wines (whether fortified or not), 25/c per gallon;

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      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

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or in part of alcohol which is the product of distillation, $1.25 per gallon;

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      (5) Ethyl alcohol to be used for beverage purposes, $2.50 per gallon;

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      (6) Ethyl alcohol to be used for nonbeverage purposes, 3/c per gallon;

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(7) Beer or other malt beverages, $1.00 per 31 gallons and a tax at a like rate for any other

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quantity or fractional part.

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     (8) Powdered alcohol, at a floor stock excise tax amount to be determined by calculating

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the powdered alcohols recommended liquefied weight when reconstituted with water and

 

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applying the alcoholic beverage floor stock tax rate of two dollars and fifty cents ($2.50) per

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gallon of reconstituted powdered alcohol.

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     (b) Each licensee subject to the payment of the tax imposed shall, on or before July 10,

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1989, file a return, under oath or certified under the penalties of perjury, with the tax

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administrator on forms furnished by the tax administrator, showing the amount of gallons of each

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of the beverages named in subsection (a) in each licensee's possession in this state on June 30,

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1989, and the amount of tax due, and at the time of this filing pay the tax due to the tax

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administrator. Failure to obtain these forms shall not be an excuse for the failure to make a return

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containing the information required by the tax administrator.

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      (c) The tax administrator may prescribe rules and regulations, not inconsistent with law,

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with regard to the assessment and collection of the tax imposed in this section.

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      (d) Any licensee subject to the payment of the tax imposed in this section who fails or

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refuses to make this return when due or who makes any false or fraudulent return shall be guilty

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of a misdemeanor and shall for each offense be fined not to exceed five thousand dollars

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($5,000).

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      (e) If the tax imposed in this section is not paid within fifteen (15) days after the tax

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becomes due and payable, the tax administrator shall proceed to the collection of the tax, as in

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other cases the tax administrator is directed to proceed under § 44-1-29. The tax administrator

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shall, in addition to this directed procedure, certify the fact of the delinquency to the department

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of business regulation and the department shall proceed in the same manner as it is directed to

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proceed in § 3-10-8 upon the certification to it of a tax delinquency.

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     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

***

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     This act would make it unlawful to sell or provide powdered alcohol to any person under

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the age of twenty-one (21), would create a floor stock tax for powdered alcohol, and would also

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be unlawful for a person under the age of twenty-one (21) to possess powdered alcohol. The act

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would also provide exceptions where powdered alcohol is used for religious purposes or bona

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fide research.

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     This act would take effect upon passage.

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