2023 -- H 5415

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- LICENSES GENERALLY

     

     Introduced By: Representatives O'Brien, Dawson, and Shanley

     Date Introduced: February 08, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

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Generally" is hereby amended to read as follows:

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     3-5-11. Licensing of chain stores.

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

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

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transferred to or for the use of any “chain store organization,” which term shall consist of any chain

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of retail or wholesale business or business organizations, and more specifically defined herein,

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including, without limitation, grocery stores, markets, department stores, and convenience stores,

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as well as retailers of alcoholic beverages, and which include chains in which one or more stores

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are located outside of the state.

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

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

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

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

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

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

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

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

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licensed business in any advertising media.

 

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

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

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

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

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

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the following practices:

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

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limited partnership, trustee or beneficiary of a trust.

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     (ii) The same individual or corporate owners.

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

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

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

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member of the public.

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

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

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

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

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

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

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by adding thereto the following section:

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     3-7-30. Class B-W license.

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

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

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

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

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premises where sold.

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

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

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     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

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

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

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     This act would take effect upon passage.

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