§ 3-6-1.1 - Farmer-winery licenses – Fee.

SECTION 3-6-1.1

   § 3-6-1.1  Farmer-winery licenses –Fee. – (a) For the purpose of encouraging the development of domestic vineyards, thedepartment shall issue a farmer-winery license to any applicant of the stateand to applying partnerships and to applying corporations organized under thelaws of any other state of the United States and admitted to do business inthis state.

   (b) A winegrower may operate a farmer's winery under anyconditions the department may prescribe by regulation.

   (c) A winegrower may import fruit, flowers, herbs, andvegetables to produce not more than seven thousand five hundred (7500) gallonsof wine during his or her first year of operation, not more than five thousand(5000) gallons during his or her second year of operation, not more than twothousand five hundred (2500) gallons during his or her third year of operationand not more than one thousand (1000) gallons per year thereafter.

   (d) If a winegrower suffers crop failure in his or hervineyard in a particular year to the extent that the fruit yield from his orher vineyard that year is at least twenty-five percent (25%) below the averageyield for the previous two (2) years, the winegrower may import fruit into thestate during that year in an amount equal to the difference between the currentyear's yield and the average for the previous two (2) years. A winegrower shallnot import unfermented juice, wine or alcohol into the state.

   (e) A winegrower may sell wine or winery products under hisor her label and fermented by him or her or another winegrower licensed by thestate. He or she may sell wine or winery products:

   (1) At wholesale to any person holding a valid license tomanufacture alcoholic beverages;

   (2) At wholesale to any person holding a valid wholesaler'sand importer's license under §§ 3-6-9 – 3-6-11;

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

   (4) At retail by the bottle to consumers for consumption offthe winery premises; provided, however a winegrower shall not sell wine atretail for delivery off the site of the winery premises in Rhode Islanddirectly to Rhode Island residents, except in the manner provided for likesales and shipment in § 3-4-8.

   (5) At wholesale to any person in any state or territory inwhich 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 licenseunder the provisions of title 3;

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

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

   (f) A winegrower may not sell at retail to consumers any wineor winery product not fermented in the state and sold under the brand name ofthe winery.

   (g) A winegrower may serve complimentary samples of wineproduced by the winery where the wine is fermented in the state and sold underthe winery brand name.

   (h) All wines sold by a licensee shall be sold under anyconditions and with any labels or other marks to identify the producer as thedepartment may prescribe.

   (i) Every applicant for a farmer-winery license shall, at thetime of filing an application, pay a license fee based on a reasonable estimateof 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 theyear covered by the license the amount of wine produced during that year. Ifthe total amount of wine produced during the year is less than the amountpermitted by the fee already paid, the state shall reimburse the licensee forwhatever fee was paid in excess. If the total amount of wine produced duringthe year exceeds the amount permitted by the fee already paid, the licenseeshall pay whatever additional fee is owing.