2022 -- H 7370

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LC004246

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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 -- LICENSES GENERALLY

     Introduced By: Representatives Shanley, Vella-Wilkinson, and Craven

     Date Introduced: February 09, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-5-11 of the General Laws in Chapter 3-5 entitled "Licenses

Generally" is hereby amended to read as follows:

     3-5-11. Licensing of chain stores.

     (a) Licenses, except retailer's Class E, Class B, Class B-H, Class B-L, Class B-M, and Class

B-V and Class B-W licenses, authorized by this title shall not be granted, issued, or transferred to

or for the use of any "chain store organization," which term shall consist of any chain of retail or

wholesale business or business organizations, and more specifically defined herein, including,

without limitation, grocery stores, markets, department stores, and convenience stores, as well as

retailers of alcoholic beverages, and which include chains in which one or more stores are located

outside of the state.

     (b) The term "chain store organization" is defined to include, but not limited to:

     (1) Any group of one or more holders of Class A liquor licenses who engage in one or more

of the following practices with respect to the business conducted under such licenses, either directly

or indirectly, or have any direct or indirect beneficial interest in the following practices:

     (i) Common, group, centralized or coordinated purchases of wholesale merchandise.

     (ii) Common billing or utilization of the services of the same person or the same entity in

the management or operation of more than one liquor licensed business.

     (iii) Participation in a coordinated or common advertisement with one or more liquor

licensed business in any advertising media.

     (iv) Coordinated or common planning or implementation of marketing strategies.

     (v) Participation in agreed upon or common pricing of products.

     (vi) Any term or name identified as a chain or common entity.

     (2) Any group of one or more liquor license holders who share any of the following

common features, either directly or indirectly or acquire any direct or indirect beneficial interest in

the following practices:

     (i) The same director of a corporation, member of a LLC, LLP, partner in a general or

limited partnership, trustee or beneficiary of a trust.

     (ii) The same individual or corporate owners.

     (3) Any group of one or more license holders that is found to be a "chain store organization"

as a factual matter by the department, as a result of an evidentiary hearing in connection with any

application for the issuance, grant or transfer of a license, or upon the filing of a complaint by any

member of the public.

     (4) Upon a finding of violation of this section, the department shall be empowered to set a

fine up to the amount of ten thousand dollars ($10,000) per violating licensee, revoke the license

of the violator, or suspend the license of the violator for a period of time to be determined by the

department. Additionally, the department shall issue a cease and desist order against the violating

chain store entity(s) and may further order the dissolution of the violating chain store entity(s).

     SECTION 2. Chapter 3-7 of the General Laws entitled "Retail Licenses" is hereby amended

by adding thereto the following section:

     3-7-30. Class B-W license.

     (a) A retailer’s Class B-W license may be issued to any grocery store, market or

convenience store, authorizing the holder to keep for sale and to sell, at the place described, malt

beverage or wine as defined in § 3-1-1, at retail and to deliver the beverages in a sealed package or

container, which package or container shall not be opened nor its contents consumed on the

premises where sold.

     (b) The annual fee for a Class B-W license is five hundred dollars ($500) to one thousand

dollars ($1,000), prorated to the year ending December 1st of every calendar year.

     SECTION 3. 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 -- LICENSES GENERALLY

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     This act would create a Class B-W license to allow for the sale of beer and wine in grocery

stores, convenience stores and markets throughout the state. The annual fee for a Class B-W license

is five hundred dollars ($500) to one thousand dollars ($1,000).

     This act would take effect upon passage.

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