2022 -- H 8140

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LC005680

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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

     Introduced By: Representatives Messier, Barros, Tobon, Felix, and Alzate

     Date Introduced: April 13, 2022

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-7-21 of the General Laws in Chapter 3-7 entitled "Retail Licenses"

is hereby amended to read as follows:

     3-7-21. Appeals from the local boards to director.

     (a) Upon the application of any petitioner for a license, or of any person authorized to

protest against the granting of a license, including those persons granted standing pursuant to § 3-

5-19, or upon the application of any licensee whose license has been revoked or suspended by any

local board or authority, the director has the right to shall review the decision of any local board,

or authority, and after hearing, to confirm or reverse the decision of the local board in whole or in

part, and to make any decision or order he or she considers proper in accordance with the provisions

of this section, but the application shall be made within ten (10) days after the making of the

decision or order sought to be reviewed. Notice of the decision or order shall be given by the local

or licensing board to the applicant within twenty-four (24) hours after the making of its decision or

order and the decision or order shall not be suspended except by the order of the director.

     (b) If, before the director’s review is undertaken, an application is made to the director for

leave to present additional evidence, and it is shown to the satisfaction of the director that the

additional evidence is material and that there were good reasons for failure to present it in the

proceeding before the local board or authority, the director may order that the additional evidence

be received by the local board or authority upon conditions determined by the director. Upon

consideration of the additional evidence, the local board or authority may modify its findings and

decision as a result of the additional evidence and shall file that evidence and any modifications,

new findings, or decisions with the director.

     (c) The review shall be conducted by the director and shall be confined to the record. In

cases of alleged irregularities in procedure before the local board or authority, not shown in the

record, proof thereon may be taken in by the director. The director, upon request, shall hear oral

argument and receive written briefs.

     (d) The director shall not substitute his/her judgment for that of the local board or authority

as to the weight of the evidence on questions of fact. The director may affirm the decision of the

local board or authority, or may remand, reverse or modify the decision only if substantial rights

of the appellant have been prejudiced because the administrative findings, inferences, conclusions,

or decisions are:

     (1) In violation of constitutional or statutory provisions;

     (2) In excess of the statutory authority granted to the local board or authority;

     (3) Made upon unlawful procedure;

     (4) Affected by other error of law;

     (5) Clearly erroneous in view of the reliable, probative, and substantial evidence on the

whole record; or

     (6) Arbitrary or capricious or characterized by abuse of discretion or a clearly unwarranted

exercise of discretion.

     (b)(e) Any appeal or appeals from a decision of any boards located in the towns of

Jamestown, Little Compton, Middletown, Portsmouth or Tiverton, or in the city of Newport shall

be heard by the director or the director's designee within Newport County. The petitioner shall

provide a stenographer and shall bear the cost to have a transcript made of the proceedings. A free

copy of the transcript shall be provided by the petitioner to the director upon receipt of the

transcript.

     (c) The director may accept into evidence a stenographic transcript of a witness's sworn

testimony presented before the local board that was subject to cross examination. This testimony

may be rebutted by competent testimony presented at the hearing held by the director.

     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

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     This act would establish the same standard of appeal review for local licensing decisions

as currently exists for state agency decisions under the administrative procedures act by prohibiting

the department of business regulation from substituting its judgment for just and proper decisions

made by local boards and authorities, provided that the decision of the local board or authority is

not improper, clearly erroneous, or otherwise arbitrary or capricious.

     This act would take effect upon passage.

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LC005680

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