2019 -- S 0095

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE

     

     Introduced By: Senators Satchell, Lombardi, Goldin, Valverde, and Conley

     Date Introduced: January 16, 2019

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

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

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hereby amended by adding thereto the following chapter:

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CHAPTER 6.1

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WINE DIRECT SHIPPER LICENSE

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     3-6.1-1. Wine direct shipper license.

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     (a) Notwithstanding any law, rule or regulation to the contrary, any person currently

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licensed in this or any other state as a wine producer, supplier, importer, wholesaler, distributor or

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retailer who obtains a wine direct shipper license, as provided below, may ship up to twenty-four

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(24), nine (9) liter cases of wine annually directly to a resident of Rhode Island who is at least

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twenty-one (21) years of age for such resident's personal use and not for resale.

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

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licensee must first:

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

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

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

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in this or any other state; and

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

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     3-6.1-2. Restrictions, requirements and duties.

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     All wine direct shipper licensees shall:

 

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     (1) Not exceed the shipment of twenty-four (24), nine (9) liter cases of wine annually to

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any person for their personal use and not for resale;

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

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option area;

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

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conspicuously labeled with the words "CONTAINS ALCOHOL SIGNATURE OF PERSON

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AGE 21 OR OLDER REQUIRED FOR DELIVERY";

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

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wine shipped into the state the preceding calendar year;

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

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

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

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delivery is made;

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

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

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ensure compliance with this section;

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

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direct shipper licensees records upon request; and

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

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

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rules or regulations.

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     3-6.1-3. License renewal.

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     The wine direct shipper licensee may annually renew its license with the department by

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paying a fifty dollar ($50.00) renewal fee and providing the department a true copy of its current

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alcoholic beverage license issued by this or any other state.

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     3-6.1-4. Promulgation of rules and regulations.

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     The department and the division of taxation may promulgate rules and regulations to

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effectuate the purposes of this law.

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     3-6.1-5. Suspension and/or revocation of licenses.

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     The department may enforce the requirements of this chapter by administrative

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proceedings to suspend or revoke a wine direct shipper license, and the department may accept

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payment of an offer in compromise in lieu of suspension, such payments to be determined by rule

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promulgated by the department.

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     3-6.1-6. Penalties for violations.

 

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     Shipments of wine direct to consumers in Rhode Island from persons who do not possess

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a current wine direct shipper license from the department are prohibited. Any person who

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knowingly makes, participates in, transports, imports or receives such a shipment is guilty of a

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misdemeanor punishable by a fine up to and including one thousand dollars ($1,000) and/or

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imprisonment for a period of up to one year. Without limitation on any punishment or remedy,

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criminal or civil, any person who knowingly makes, participates in, transports, imports or

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receives such a shipment commits an unfair trade practice.

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     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

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

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

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taxation. Violations of this act would be punishable as a misdemeanor, with a fine of up to one

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thousand dollars ($1,000), and/or imprisonment for a period of up to one year.

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     This act would take effect upon passage.

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