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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- RETAIL LICENSES--HAPPY HOUR

     Introduced By: Representatives Alzate, McEntee, Caldwell, J Lombardi, and Carson

     Date Introduced: January 12, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-7-26 of the General Laws in Chapter 3-7 entitled "Retail Licenses"

is hereby amended to read as follows:

     3-7-26. Certain practices prohibited.

     (a) No licensee, employee or agent of any licensee who operates under a license to sell

alcoholic beverages shall:

     (1) Cause or require any person or persons to buy more than one drink at a time by reducing

the price of that drink;

     (2) Increase the volume of alcohol contained in any alcoholic beverage without

proportionately increasing the price;

     (3) Sell, propose to sell or deliver to any person or persons an unlimited number of drinks

during a certain period of time for a fixed price; or

     (4) Allow or encourage any game or promotion on the premises which involves the

drinking of alcoholic beverages or the awarding of alcoholic beverages as prizes for consumption

on the premises.

     (b)(1) No licensee, other than those authorized pursuant to subsection (e) of this section,

shall advertise or promote in any manner, or in any medium, happy hours, open bars, two-for-one

nights and/or free drink specials.

     (2) Any licensee is prohibited from knowingly allowing the use of its premises as part of

an organized pub crawl, so-called. A pub crawl shall be defined as an organized event intended to

promote the organized, commercial travel of significantly large groups of individuals between

licensed premises for the primary purpose of consuming alcoholic beverages at more than one

premise. Evidence of a pub crawl shall include, but not be limited by:

     (i) The existence of advertising, flyers, tickets or other printed or electronic material

promoting or describing a planned pub crawl;

     (ii) Organized, commercial transportation intended to move a total of fifty (50) or more

individuals from one premise to another in an organized fashion; and

     (iii) Evidence of compensation paid to an organizer by participants in a pub crawl. The

department of business regulation is authorized to promulgate rules and regulations consistent with

this section.

     (c) Nothing in this section shall be construed to prohibit a licensee from offering free food

or entertainment at any time; or to prohibit licensees from including an alcoholic beverage as part

of a meal package; or to prohibit the sale or delivery of wine by the bottle or carafe when sold with

meals or to more than one person; or to prohibit free wine tastings. Except as otherwise limited by

this section, nothing contained in this section shall limit or may restrict the price which may be

charged by any licensee for any size alcoholic beverage to be consumed on the licensed premises.

     (d) Adherence to this section is deemed to be a condition attached to the issuance and/or

continuation of every license to sell alcoholic beverages for consumption on the licensed premises,

and this section shall be enforced by the applicable local licensing authority, its agents, and the

department.

     (e)(1) Notwithstanding the prohibition of happy hours contained in this section, happy hour

drink specials served as part of a transaction that includes the purchase of a food item shall be

permitted. For the purposes of this section, "happy hour" means a period of time during which a

licensee sells or provides discount alcoholic beverages. For the purposes of this section, a "food

item" means any food product, prepared on premises which is included on the establishment's menu

or included in the daily specials as either an appetizer or entrée item.

     (2) Snacks, including, but not limited to, pretzels, popcorn, chips, or similar food products

commonly eaten between regular meals do not meet the definition of a food item.

     (3) Advertisements or promotions for happy hour shall be permitted pursuant to this

section; provided that, the advertisement or promotion specifically mentions the requirement that a

food item must be included in the transaction for the happy hour special to apply.

     (4) The department of business regulation shall promulgate rules and regulations necessary

to implement the provisions of this section.

     (e)(f) The provisions of this section are deemed to be severable and any final decision by

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a court of competent jurisdiction holding that any provision of this section is void, shall not make

void nor affect any of the remaining provisions of this section.

     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 -- RETAIL LICENSES--HAPPY HOUR

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     This act would allow happy hour drink specials served in conjunction with the purchase of

a food item, which would include appetizers or entrees prepared on premises.

     This act would take effect upon passage.

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