2019 -- S 0913

========

LC002529

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

____________

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- GENERAL PROVISIONS -

MANUFACTURING AND WHOLESALE LICENSES

     Introduced By: Senators Archambault, Satchell, Rogers, Coyne, and Sosnowski

     Date Introduced: May 22, 2019

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

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

Provisions" is hereby amended to read as follows:

     3-1-1. Definitions.

     As used in this title, unless the context otherwise requires:

     (1) "Alcohol inhalation" means a method of administering ethanol or alcoholic beverages

directly into the respiratory system, with the aid of a vaporizing or nebulizing device.

     (2) "Alcohol-without-liquid device" means a device, machine, apparatus, or appliance

that is designed or marketed for the purpose of inhaling alcohol vapor or otherwise introducing

alcohol in any form into the human body including, but not limited to, introducing a heating

element to convert the alcohol to a vapor or by mixing alcohol with pure or diluted oxygen, or

another gas, to produce an alcoholic vapor that an individual can inhale or snort. An alcohol-

without-liquid device does not include an inhaler, nebulizer, atomizer, or other device that is

designed and intended by the manufacturer to dispense a prescribed or over-the-counter

medication.

     (3) "Beverage" means any liquid that either by itself or by mixture with any other liquid

or liquids, is, or may become, fit for human consumption as a drink and that contains five-tenths

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

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

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

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

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

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

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

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

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

other governing body.

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

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

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

administration.

     (8) "Farmer-brewery" or "Farmer-distillery" means any farmland as defined in § 44-27-2

where beer or distilled spirits are produced, rectified, blended, or fortified from fruit, flowers,

herbs or vegetables.

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

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

     (9)(10) "Import" means at one time, or in one transaction, to take, or cause to be taken,

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

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

excess of three (3) gallons.

     (10)(11) "Intoxicating beverage" means a beverage that contains more than three and

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

     (11)(12) "Malt beverage" means any beverage that is usually produced at breweries, as

distinguished from distilleries.

     (12)(13) "Nonintoxicating beverage" means a beverage that contains not more than three

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

     (13)(14) "Powdered alcohol" means alcohol prepared for sale or other distribution in a

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

reconstitution.

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

and sleeping accommodations.

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

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

LC002529 - Page 2 of 5

     (16)(17) "Winegrower" means any person licensed to operate a farmer's winery under §

3-6-1.1.

     (17)(18) "Wines" means all fermented alcoholic beverages made from fruits, flowers,

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

volume at sixty degrees Fahrenheit (60 degrees F), except cider obtained by the alcohol

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

or containing not more than six percent (6%) of alcohol by weight at sixty degrees Fahrenheit (60

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

     SECTION 2. Chapter 3-6 of the General Laws entitled "Manufacturing and Wholesale

Licenses" is hereby amended by adding thereto the following section:

     3-6-1.3. Farmer-brewery or farmer-distillery licenses -- Fee.

     (a) For the purpose of encouraging the development of domestic farm breweries and farm

distilleries, the department shall issue a farmer-brewery or farmer-distillery license to any farm

based brewery or distillery of the state and to applying partnerships and to applying corporations

organized under the laws of any other state of the United States and admitted to do business in

this state.

     (b) A farmer may operate a farmer-brewery or farmer-distillery under any conditions the

department may prescribe by regulation.

     (c) A farmer-brewery or farmer-distillery must be located on a farm, as defined in § 44-

27-2, and grow at least one principal crop to be used in the production of malt beverages or

distilled spirits produced on the farm, including, but not limited to, barley, wheat, hops, and fruit.

     (d) A farmer may sell beer or distilled spirits under his or her label and fermented by him

or her or another brewery or distillery licensed by the state. He or she may sell beer or distilled

spirits:

     (1) At wholesale to any person holding a valid license to manufacture alcoholic

beverages;

     (2) At wholesale to any person holding a valid wholesaler's and importer's license under

§§ 3-6-9 through 3-6-11;

     (3) At wholesale to any person holding a valid farmer-brewery or farmer-distillery license

under this section;

     (4) At retail by the bottle or can to consumers for consumption off premises.

     (5) At wholesale to any person in any state or territory in which the importation and sale

of beer or distilled spirits is not prohibited by law;

     (6) At wholesale to any person in any foreign country;

LC002529 - Page 3 of 5

     (7) At wholesale to liquor dealers holding a valid license under the provisions of chapter

6 of title 3;

     (8) At wholesale to restaurants holding a valid license under the provisions of chapter 6

of title 3; and

     (9) At retail by the bottle, can, or by the glass for consumption on premises.

     (f) A farmer may not sell at retail to consumers any beer or distilled spirits product not

fermented in the state and sold under the brand name of the farmer-brewery or farmer-distillery.

     (g) A farmer may serve complimentary samples of beer or distilled spirits produced by

the brewery or distillery where the beverage is fermented in the state and sold under the brand

name.

     (h) All beer or distilled spirits sold by a licensee shall be sold under any conditions and

with any labels or other marks to identify the producer as the department may prescribe.

     (i) Every applicant for a farmer-brewery or farmer-distillery license shall, at the time of

filing an application, pay a license fee based on a reasonable estimate of the amount of beer or

distilled spirits to be produced during the year covered by the license. Persons holding farmer-

brewery or farmer-distillery licenses shall report annually at the end of the year covered by the

license the amount of beer or distilled spirits produced during that year. If the total amount of

beer or distilled spirits produced during the year is less than the amount permitted by the fee

already paid, the state shall reimburse the licensee for whatever fee was paid in excess. If the total

amount produced during the year exceeds the amount permitted by the fee already paid, the

licensee shall pay whatever additional fee is owing.

     SECTION 3. This act shall take effect upon passage.

========

LC002529

========

LC002529 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- GENERAL PROVISIONS -

MANUFACTURING AND WHOLESALE LICENSES

***

     This act would authorize the issuance of farmer-brewery and farmer-distillery licenses to

qualifying farms subject to conditions and regulations issued by the department of regulation.

     This act would take effect upon passage.

========

LC002529

========

LC002529 - Page 5 of 5