2013 -- H 5190

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LC00129

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO ALCOHOLIC BEVERAGES - MANUFACTURING AND WHOLESALE

LICENSES

     Introduced By: Representatives Nunes, Tanzi, Marcello, Keable, and Costantino

     Date Introduced: January 30, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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

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

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     3-6-1.1.  Farmer-winery licenses – Fee. -- (a) For the purpose of encouraging the

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development of domestic vineyards, the department shall issue a farmer-winery license to any

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applicant of the state and to applying partnerships and to applying corporations organized under

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the laws of any other state of the United States and admitted to do business in this state.

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        (b) A winegrower may operate a farmer's winery under any conditions the department

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may prescribe by regulation.

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

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than seven thousand five hundred (7500) gallons of wine during his or her first year of operation,

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not more than five thousand (5000) gallons during his or her second year of operation, not more

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than two thousand five hundred (2500) gallons during his or her third year of operation and not

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more than one thousand (1000) gallons per year thereafter.

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

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

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

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

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

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alcohol into the state.

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

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

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winery products:

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        (1) At wholesale to any person holding a valid license to manufacture alcoholic

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beverages;

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        (2) At wholesale to any person holding a valid wholesaler's and importer's license under

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§§ 3-6-9 – 3-6-11;

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

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

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

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premises in Rhode Island directly to Rhode Island residents, except in the manner provided for

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like sales and shipment in § 3-4-8 and section 3-6-1.1.1.

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

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sale of wine is not prohibited by law;

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

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

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

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and

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

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

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

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

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

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        (h) All wines sold by a licensee shall be sold under any conditions and with any labels

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or other marks to identify the producer as the department may prescribe.

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        (i) Every applicant for a farmer-winery license shall, at the time of filing an application,

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

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

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

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amount of wine produced during the year is less than the amount permitted by the fee already

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paid, the state shall reimburse the licensee for whatever fee was paid in excess. If the total amount

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of wine produced during the year exceeds the amount permitted by the fee already paid, the

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licensee shall pay whatever additional fee is owing.

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     SECTION 2. Chapter 3-6 of the General Laws entitled “Manufacturing and Wholesale

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Licenses” is hereby amended by adding thereto the following sections:

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     3-6-1.1.1. Farmers’ Market Wine Sales. Notwithstanding any provision of the general

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or public laws to the contrary, the department may issue to an applicant authorized to operate a

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farmer-winery under section 3-6-1.1, a special license for the sale of wine produced by or for the

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licensee in sealed containers for off-premise consumption at an indoor or outdoor farmers’

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market. All sales of wine shall be conducted by an agent, representative, or solicitor of the

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licensee to customers who are at least twenty-one (21) years of age. A licensee under this section

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may provide, without charge, samples of wine to prospective customers at an indoor or outdoor

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farmers’ market. All samples of wine shall be served by an agent, representative, or solicitor of

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the licensee to individuals who are at least twenty-one (21) years of age and all samples shall be

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consumed in the presence of such agent, representative, or solicitor of the licensee; provided,

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however, that no sample shall exceed one ounce of wine and no more than five (5) samples shall

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be served to an individual prospective customer.

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     An applicant for a special license under this section shall first submit a plan to the

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department that shall demonstrate that the event is a farmers’ market. The plan shall include a

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description of the event, the date, time and location of the event, a copy of the operational

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guidelines or rules for the event, written approval that the prospective licensee has been approved

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as a vendor at the event, including the name and contact information of the on-site manager, and a

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plan depicting the premises and the specific location where the license will be exercised.

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     Upon review of the plan, the department may certify that the event is a farmers’ market;

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provided, however, that in making that determination, the department shall consider the following

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factors: (1) Operation as a farmers’ market or agricultural fair approved or inspected by the

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department; (2) Frequency and regularity of the event, including dates, times and locations; (3)

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Number of vendors; (4) Terms of vendor agreements; (5) Presence of an on-site manager; (6)

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Training of the on-site manager; (7) Operational guidelines or rules, which shall include vendor

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eligibility and produce source; (8) Focus of event on local agricultural products grown or

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produced within the market area; (9) Types of shows or exhibits; and (10) Sponsorship or

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operation by an agricultural or horticultural society organized under the laws of the state, or by a

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local grange organization and/or association whose primary purpose is the promotion of

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agriculture and its allied industries. The department may promulgate rules and regulations

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necessary for the operation, oversight, approval, and inspection of farmers’ markets under this

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section.

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     The department may promulgate rules and regulations it deems appropriate to effectuate

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the purposes of this section.

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     3-6-1.3.  Farmer-brewery licenses – Fee. – (a) For the purpose of encouraging the

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development of domestic farmer breweries, the department shall issue a farmer-brewery license

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to any applicant of the state and to applying partnerships and to applying corporations organized

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under the laws of any other state of the United States and admitted to do business in this state.

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     (b) A farmer may operate a farmer's brewery under any conditions the department may

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prescribe by regulation.

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     (c) A farmer-brewery may import fruit, flowers, herbs, and vegetables to produce not

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more than seven thousand five hundred (7500) gallons of beer during his or her first year of

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operation, not more than five thousand (5000) gallons during his or her second (2nd) year of

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operation, not more than two thousand five hundred (2500) gallons during his or her third (3rd)

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year of operation and not more than one thousand (1000) gallons per year thereafter.

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     (d) If a farmer-brewery suffers crop failure in his or her farm in a particular year to the

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extent that the crops yield from his or her farm-brewery that year is at least twenty-five percent

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(25%) below the average yield for the previous two (2) years, the farmer-brewery may import

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fruit into the state during that year in an amount equal to the difference between the current year's

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yield and the average for the previous two (2) years. A farmer-brewery shall not import

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unfermented juice, malt, beer or alcohol into the state.

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     (e) A farmer-brewery may sell beer or brewery products under his or her label and

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brewed by him or her or another farmer-brewery licensed by the state. He or she may sell beer or

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brewery products:

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     (1) At wholesale to any person holding a valid license to manufacture alcoholic

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beverages;

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     (2) At wholesale to any person holding a valid wholesaler's and importer's license under

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sections 3-6-9 and 3-6-11;

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

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     (4) At retail by the bottle to consumers for consumption off the brewery premises;

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provided, however a farmer-brewery shall not sell beer or brewery products at retail for delivery

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off the site of the brewery premises in Rhode Island directly to Rhode Island residents, except in

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the manner provided for like sales and shipment in section 3-4-8 and section 3-6-1.4.

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

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of beer is not prohibited by law;

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

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

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

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

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     (f) A farmer-brewery may not sell at retail to consumers any beer or brewery product not

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brewed in the state and sold under the brand name of the brewery.

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     (g) A farmer-brewery may serve complimentary samples of beer produced by the

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brewery where the beer is brewed in the state and sold under the brewery brand name.

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     (h) All beer and brewery products sold by a licensee shall be sold under any conditions

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and with any labels or other marks to identify the producer as the department may prescribe.

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     (i) Every applicant for a farmer-brewery license shall, at the time of filing an application,

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

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

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

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amount of beer produced during the year is less than the amount permitted by the fee already

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paid, the state shall reimburse the licensee for whatever fee was paid in excess. If the total amount

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of beer produced during the year exceeds the amount permitted by the fee already paid, the

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licensee shall pay whatever additional fee is owing.

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     3-6-1.4. Farmers’ Market Beer Sales. -- Notwithstanding any provision of the general

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or public laws to the contrary, the department may issue to an applicant authorized to operate a

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farmer-brewery under section 3-6-1.3, a special license for the sale of beer produced by or for the

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licensee in sealed containers for off-premise consumption at an indoor or outdoor farmers’

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market. All sales of beer shall be conducted by an agent, representative, or solicitor of the

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licensee to customers who are at least twenty-one (21) years of age. A licensee under this section

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may provide, without charge, samples of beer to prospective customers at an indoor or outdoor

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farmers’ market. All samples of beer shall be served by an agent, representative, or solicitor of

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the licensee to individuals who are at least twenty-one (21) years of age and all samples shall be

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consumed in the presence of such agent, representative, or solicitor of the licensee; provided,

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however, that no sample shall exceed one ounce of beer and no more than five (5) samples shall

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be served to an individual prospective customer.

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     An applicant for a special license under this section shall first submit a plan to the

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department that shall demonstrate that the event is a farmers’ market. The plan shall include a

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description of the event, the date, time and location of the event, a copy of the operational

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guidelines or rules for the event, written approval that the prospective licensee has been approved

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as a vendor at the event, including the name and contact information of the on-site manager, and a

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plan depicting the premises and the specific location where the license will be exercised.

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     Upon review of the plan, the department may certify that the event is a farmers’ market;

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provided, however, that in making that determination, the department shall consider the following

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factors: (1) Operation as a farmers’ market or agricultural fair approved or inspected by the

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department; (2) Frequency and regularity of the event, including dates, times and locations; (3)

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Number of vendors; (4) Terms of vendor agreements; (5) Presence of an on-site manager; (6)

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Training of the on-site manager; (7) Operational guidelines or rules, which shall include vendor

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eligibility and produce source; (8) Focus of event on local agricultural products grown or

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produced within the market area; (9) Types of shows or exhibits; and (10) Sponsorship or

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operation by an agricultural or horticultural society organized under the laws of the state, or by a

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local grange organization and/or association whose primary purpose is the promotion of

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agriculture and its allied industries. The department may promulgate rules and regulations

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necessary for the operation, oversight, approval, and inspection of farmers’ markets under this

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section.

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     The department may promulgate rules and regulations it deems appropriate to effectuate

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the purposes of this section.

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     SECTION 3. This act shall take effect upon passage.

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LC00129

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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 amend the current law so that a farmer-winery and a farmer-brewery may,

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under certain conditions, be licensed to sell wine/beer for off-premises consumption at a farmers’

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market, similar to that permitted in Massachusetts.

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     This act would take effect upon passage.

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LC00129

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