2023 -- H 5974

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LC001996

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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 -- MANUFACTURING AND WHOLESALE

LICENSES

     Introduced By: Representative Jason Knight

     Date Introduced: March 01, 2023

     Referred To: House Small Business

     (By Request)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 3-6-1.1 of the General Laws in Chapter 3-6 entitled "Manufacturing

and Wholesale Licenses" is hereby amended to read as follows:

     3-6-1.1. Farmer-winery licenses — Fee.

     (a) For the purpose of encouraging the development of domestic vineyards, the department

shall issue a farmer-winery license to any applicant 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 winegrower may operate a farmer’s winery under any conditions the department may

prescribe by regulation.

     (c) A winegrower may import fruit, flowers, herbs, and vegetables to produce not more

than seven thousand five hundred (7,500) gallons of wine during his or her first year of operation,

not more than five thousand (5,000) gallons during his or her second year of operation, not more

than two thousand five hundred (2,500) gallons during his or her third year of operation and not

more than one thousand (1,000) gallons per year thereafter.

     (d) If a winegrower suffers crop failure in his or her vineyard in a particular year to the

extent that the fruit yield from his or her vineyard that year is at least twenty-five percent (25%)

below the average yield for the previous two (2) years, the winegrower may import fruit into the

state during that year in an amount equal to the difference between the current year’s yield and the

average for the previous two (2) years. A winegrower shall not import unfermented juice, wine or

alcohol into the state.

     (e) A winegrower may sell wine or winery products under his or her label and fermented

by him or her or another winegrower licensed by the state. He or she may sell wine or winery

products:

     (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 — 3-6-11;

     (3) At wholesale to any person holding a valid farmer-winery license under this section;

     (4) At retail by the bottle to consumers for consumption off the winery premises;, and also

at retail off the premises at any time and at up to five (5) separate locations; provided that, prior to

sale, a license from the municipality where each location is situated is obtained; provided further,

however, a winegrower shall not sell wine at retail for delivery off the site of the winery premises

in Rhode Island directly to Rhode Island residents, except as provided in this subsection and except

in the manner provided for like sales and shipment in § 3-4-8.

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

of wine is not prohibited by law;

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

     (7) At wholesale to liquor dealers holding a valid license under the provisions of title 3;

     (8) At wholesale to restaurants holding a valid license under the provisions of title 3; and

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

     (f) A winegrower may not sell at retail to consumers any wine or winery product not

fermented in the state and sold under the brand name of the winery.

     (g) A winegrower may serve complimentary samples of wine produced by the winery

where the wine is fermented in the state and sold under the winery brand name.

     (h) All wines 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-winery license shall, at the time of filing an application,

pay a license fee based on a reasonable estimate of the amount of wine to be produced during the

year covered by the license. Persons holding farmer-winery licenses shall report annually at the end

of the year covered by the license the amount of wine produced during that year. If the total amount

of wine 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 of wine

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

LC001996 - Page 2 of 4

pay whatever additional fee is owing.

     SECTION 2. This act shall take effect upon passage.

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LC001996

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- MANUFACTURING AND WHOLESALE

LICENSES

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     This act would permit those farmer-winery license holders to sell their products, at retail,

off the licensed premises at any time and at up to five (5) separate locations; provided, they obtain

a license from the local municipality prior to the sale.

     This act would take effect upon passage.

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LC001996

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