2013 -- H 6038

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LC02429

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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 -- WINE DIRECT SHIPPER LICENSE

     Introduced By: Representative Brian C. Newberry

     Date Introduced: April 25, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 3 of the General Laws entitled "ALCOHOLIC BEVERAGES" is

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hereby amended by adding thereto the following chapter:

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     CHAPTER 6.1

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WINE DIRECT SHIPPER LICENSE

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     3-6.1-1. Wine direct shipper license. -- (a) Notwithstanding any law, rule or regulation

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to the contrary, any person currently licensed in this or any other state as a wine producer,

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supplier, importer, wholesaler, distributor or retailer who obtains a wine direct shipper license, as

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provided below, may ship up to twenty-four (24), nine (9) liter cases of wine annually directly to

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a resident of Rhode Island who is at least twenty-one (21) years of age for such resident's

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personal use and not for resale.

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     (b) Before sending any shipment to a resident of Rhode Island the wine direct shipper

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licensee must first:

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     (1) File an application with the department of business regulation (department);

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     (2) Pay a one hundred dollar ($100) registration fee;

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     (3) Provide to the department a true copy of its current alcoholic beverage license issued

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in this or any other state; and

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     (4) Obtain from the department a wine direct shipper license.

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     3-6.1-2. Restrictions, requirements and duties. -- All wine direct shipper licensees

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shall:

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     (1) Not ship more than twenty-four (24), nine (9) liter cases of wine annually to any

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person for his or her personal use and not for resale;

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     (2) Not ship to any address in an area identified by the department as a “dry” or local

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option area;

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     (3) Ensure that all containers of wine shipped directly to a resident in this state are

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conspicuously labeled with the words "CONTAINS ALCOHOL SIGNATURE OF PERSON

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AGE 21 OR OLDER REQUIRED FOR DELIVERY";

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     (4) If located outside of this state, report to the department annually the total amount of

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wine shipped into the state the preceding calendar year;

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     (5) If located outside of this state, annually pay to the division of taxation all sales taxes

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and excise taxes due on sales to residents of Rhode Island in the preceding calendar year, the

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amount of such taxes to be calculated as if the sale were in Rhode Island at the location where

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delivery is made;

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     (6) If located within this state, provide the division of taxation any additional information

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deemed necessary beyond that already required for retail sales from the winery tasting room to

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ensure compliance with this section;

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     (7) Permit the department or the division of taxation to perform an audit of the wine

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direct shipper licensees records upon request;

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     (8) Be deemed to have consented to the jurisdiction of the department or any other state

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agency and the Rhode Island courts concerning enforcement of this section and any related laws,

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rules or regulations.

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     3-6.1-3. License renewal. -- The wine direct shipper licensee may annually renew its

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license with the department by paying a fifty dollar ($50.00) renewal fee and providing the

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department a true copy of its current alcoholic beverage license issued in this or any other state.

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     3-6.1-4. Promulgation of rules and regulations. -- The department and the division of

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taxation may promulgate rules and regulations to effectuate the purposes of this law.

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     3-6.1-5. Suspension and/or revocation of licenses. -- The department may enforce the

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requirements of this section by administrative proceedings to suspend or revoke a wine direct

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shipper license, and the department may accept payment of an offer in compromise in lieu of

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suspension, such payments to be determined by rule promulgated by the department.

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     3-6.1-6. Penalties for violations. -- Shipments of wine direct to consumers in Rhode

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Island from persons who do not possess a current wine direct shipper license from the department

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are prohibited. Any person who knowingly makes, participates in, transports, imports or receives

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such a shipment is guilty of a misdemeanor punishable by a fine up to and including one thousand

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five hundred dollars ($1,500) and/or up to and including imprisonment for a period of up to one

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year. Without limitation on any punishment or remedy, criminal or civil, any person who

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knowingly makes, participates in, transports, imports or receives such a shipment commits an

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unfair trade practice.

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     SECTION 2. This act shall take effect upon passage.

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LC02429

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO ALCOHOLIC BEVERAGES -- WINE DIRECT SHIPPER LICENSE

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     This act would create a Wine Direct Shipper License for licensed producers in this or any

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state to directly ship a limited amount of wine to residents age twenty-one (21) or older for

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personal consumption with oversight by the department of business regulation and/or the division

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of taxation with any violations punishable as a misdemeanor with a fine of up to one thousand

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five hundred dollars ($1,500) and/or imprisonment for a period of up to and including one year.

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     This act would take effect upon passage.

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LC02429

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