2013 -- S 0575

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LC01862

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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: Senators Hodgson, Kettle, Ottiano, and P Fogarty

     Date Introduced: February 28, 2013

     Referred To: Senate Special Legislation and Veterans Affairs

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 3-6 of the General Laws entitled "Manufacturing and Wholesale

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Licenses" is hereby amended by adding thereto the following section:

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

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development of domestic agriculture, the department shall issue a farmer-brewer 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 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-brewer may import malt, cereal grains fermentable, sugars and hops, but

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may not import malt beverages or alcohol into the state. In the first year of production, no less

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than twenty five percent (25%) of ingredients used by the farmer-brewer to produce malt

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beverages or malt beverage products must be produced by the farmer-brewer’s on-site

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agricultural operation, and no less than forty percent (40%) of ingredients must be produced in

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Rhode Island. In the second, year of production, no less than thirty percent (30%) of ingredients

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must be sourced from the farm-brewer’s on-site agricultural operation, and no less than forty-five

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percent (45%) must be produced in Rhode Island. Thereafter, no less than thirty-five percent

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(35%) of ingredients must be sourced from the farm-brewer’s on-site agricultural operation, and

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no less than fifty-five percent (55%) of ingredients must be produced in Rhode Island.

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     (d) If a farmer suffers crop failure in a particular year to the extent that the yield from his

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or her harvest that year is at least twenty-five percent (25%) below the average yield for the

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previous two (2) years, the farmer-brewer may import ingredients equal to the difference between

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the current year’s yield and the average for the previous two (2) years. A farmer shall not import

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alcohol into the state.

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     (e) A farmer-brewer may sell malt beverages or malt beverage products under his or her

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label and fermented by him or her or another farmer-brewer licensed by the state. He or she may

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sell beer or 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 through 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 farm-brewery premises;

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provided, however a farm-brewery shall not sell malt beverages or malt beverage products at

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retail for delivery off the site of the farm-brewery premises in Rhode Island directly to Rhode

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Island residents, except in the manner provided for like sales and shipment in section 3-4-8;

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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 farm-brewery premises.

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     (f) A farmer-brewer may not sell at retail to consumers any malt beverages or malt

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beverage products not fermented in the state and sold under the brand name of the farm-brewery.

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     (g) A farmer-brewer may serve complimentary samples of malt beverages or malt

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beverage products produced by the farm-brewery where the beer is fermented in the state and

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sold under the farm-brewery brand name.

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     (h) All malt beverages or malt beverage products sold by a licensee shall be sold under

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

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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 malt beverages or malt

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beverage products to be produced during the year covered by the license. Persons holding farmer-

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brewery licenses shall report annually at the end of the year covered by the license the amount of

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malt beverages or malt beverage products produced during that year. If the total amount of beer

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produced during the year is less than the amount permitted by the fee already paid, the state shall

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reimburse the licensee for whatever fee was paid in excess. If the total amount of beer produced

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

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whatever additional fee is owing.

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     SECTION 2. This act shall take effect upon passage.

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LC01862

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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 authorize the department of business regulation to issue a farmer-brewer

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license to any applicants of the state including applying corporations admitted to do business in

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the state.

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LC01862

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