Bill Sponsors
McEntee, Caldwell, Shallcross Smith, Voas, Cortvriend, Cotter, McGaw, DeSimone, Speakman, and Carson
Committee
House Small Business
Summary
Select
This legislation updates state liquor laws to allow small breweries in Rhode Island to distribute their own products directly to retailers, rather than being forced to use a third-party wholesaler. This "self-distribution" is permitted for breweries producing under 8,000 barrels annually, with a cap of 5,000 self-distributed barrels. Breweries utilizing this option must sign a labor peace agreement. Additionally, the bill allows breweries to open one additional retail location and permits alcohol manufacturers to sell other Rhode Island-made alcoholic beverages (beer, wine, and spirits) for on-site consumption at their facilities.
Sponsor
Analysis
Pros for Progressives
- Mandates that breweries engaging in self-distribution enter into a labor peace agreement, protecting workers' rights to organize and ensuring fair labor standards within the growing craft brewing industry.
- Empowers small, local businesses to retain more profit by bypassing large corporate wholesalers, fostering a localized economy and reducing reliance on monopolistic distribution networks.
- Strengthens the local economic ecosystem by allowing manufacturers to sell other Rhode Island-made products, creating a cooperative network of local artisans and producers.
Cons for Progressives
- Expands the availability and number of locations for alcohol consumption, which could potentially contribute to increased substance abuse issues and public health concerns in the community.
- By allowing self-distribution, the bill may threaten the stable, unionized delivery jobs currently provided by established wholesale distribution companies.
- Prioritizes the expansion of the luxury alcohol industry rather than focusing legislative energy on essential social services or support for the most vulnerable populations.
Pros for Conservatives
- Reduces government regulations by allowing small business owners to distribute their own products, cutting out mandatory middlemen and fostering a freer market environment.
- Encourages entrepreneurship and business expansion by permitting breweries to open additional retail locations, which can generate revenue and jobs without government subsidies.
- Promotes competition by breaking the effective monopoly of large wholesalers, giving small business owners more control over their own logistics and property.
Cons for Conservatives
- Imposes a government mandate requiring private businesses to sign "labor peace agreements," which forces union-friendly policies on entrepreneurs and infringes on business autonomy.
- Undermines the established three-tier system of alcohol distribution, potentially disregarding the rule of law regarding existing contracts between manufacturers and wholesalers.
- Increases the proliferation of alcohol sales venues in towns and cities, which may conflict with traditional community values regarding public order and temperance.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Breweries
- Alcohol Wholesalers
- Retail Liquor Stores
- Restaurants and Bars
- Distilleries and Wineries
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
Amount unknown
BillBuddy Impact Ratings
Importance
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Freedom Impact
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Public Services
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Regulatory
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Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 02/04/2026 Introduced, referred to House Small Business
• 03/20/2026 Scheduled for hearing and/or consideration (03/25/2026)
• 03/25/2026 Committee recommended measure be held for further study
• 03/20/2026 Scheduled for hearing and/or consideration (03/25/2026)
• 03/25/2026 Committee recommended measure be held for further study
Bill Text
SECTION 1. Section 3-6-1 of the General Laws in Chapter 3-6 entitled "Manufacturing and Wholesale Licenses" is hereby amended to read as follows:
3-6-1. Manufacturer’s license.
(a) A manufacturer’s license authorizes the holder to establish and operate a brewery, distillery, or winery at the place described in the license for the manufacture of beverages within this state. The license does not authorize more than one of the activities of operator of a brewery or distillery or winery and a separate license shall be required for each plant.
(b) The license also authorizes the sale at wholesale, at the licensed place by the manufacturer of the product of the licensed plant, to another license holder and the transportation and delivery from the place of sale to a licensed place or to a common carrier for that delivery. The license does authorize the sale of beverages for consumption on premises where sold; provided that the manufacturer does not sell an amount in excess of forty-eight ounces (48 oz.) of malt beverage or four and one-half ounces (4.5 oz.) of distilled spirits, or fifteen ounces (15 oz.) of wine per visitor, per day, or a combination not greater than three (3) drinks where a drink is defined as up to sixteen ounces (16 oz.) of beer or one and one-half ounces (1.5 oz.) or five ounces (5 oz.) of wine of spirits, for consumption on the premises. The license also authorizes the sale of beverages produced on the premises in an amount not in excess of forty-eight (48) twelve-ounce (12 oz.) bottles or cans or forty-eight (48) sixteen-ounce (16 oz.) bottles or cans of malt beverages, or an amount not in excess of seven hundred sixty-eight fluids ounces (768 fl. oz.) in any vessel or one thousand five hundred milliliters (1,500 ml) of distilled spirits per visitor, or three (3) seven hundred fifty milliliter (750 ml) bottles of wine or the equivalent amount of wine sold by the can or other container, per day, to be sold in containers that may hold no more than seventy-two ounces (72 oz.) each. These beverages may be sold to the consumers for off-premises consumption, and shall be sold pursuant to the laws governing retail Class A establishments. The containers for the sale of beverages for off-premises consumption shall be sealed. The license does not authorize the sale of beverages in this state for delivery outside this state in violation of the law of the place of delivery. The license holder may provide to visitors, in conjunction with a tour or tasting, samples, clearly marked as samples, not to exceed three hundred seventy-five milliliters (375 ml) per visitor for distilled spirits and seventy-two ounces (72 oz.) per visitor for malt beverages at the licensed plant by the manufacturer of the product of the licensed plant to visitors for off-premises consumption. The license does not authorize providing samples to a visitor of any alcoholic beverages for off- premises consumption that are not manufactured at the licensed plant. All manufacturer licenses conducting retail sales or providing samples shall be subject to compliance with alcohol server training and liquor liability insurance requirements set forth in §§ 3-7-6.1 and 3-7-29 and the regulations promulgated thereunder.
(c) The annual fee for the license is three thousand dollars ($3,000) for a distillery producing more than fifty thousand gallons (50,000 gal.) per year and five hundred dollars ($500) for a distillery producing less than or equal to fifty thousand gallons (50,000 gal.) per year; five hundred dollars ($500) for a brewery; and one thousand five hundred dollars ($1,500) for a winery producing more than fifty thousand gallons (50,000 gal.) per year and five hundred dollars ($500) per year for a winery producing less than fifty thousand gallons (50,000 gal.) per year. All those fees are prorated to the year ending December 1 in every calendar year and shall be paid to the general treasurer for the use of the state.
(d) Notwithstanding § 3-7-18 and any other provision of the law to the contrary, a holder of a manufacturer’s license for a brewery, whether located within or outside this state, if authorized by the department of business regulation, may sell, transport, deliver, and distribute malt beverages of its own manufacture directly to retailers licensed under this title within this state without using a licensed Rhode Island wholesaler, subject to the following requirements:
(1) If, in any calendar year, a brewery manufacturer:
(i) Self-distributes five thousand (5,000) barrels or more within the state; or
(ii) Has a total annual production of eight thousand (8,000) barrels or more, then the brewery manufacturer shall, within thirty (30) days after meeting the applicable threshold either LC004764 - Page 2 of 4 enter into a written agreement for distribution within this state with a wholesaler licensed in Rhode Island pursuant to this title or cease further self-distribution within this state for the remainder of that calendar year, except that the brewery manufacturer may complete delivery of orders invoiced prior to the date the threshold was met, for a period not to exceed fifteen (15) days. Any written agreement pursuant to this subsection shall be consistent with chapter 3 of title 3, negotiated in good faith and may include terms governing the grant, purchase, transfer, or other conveyance of the brewery manufacturer’s Rhode Island distribution rights for one or more brands of malt beverages.
(2) A brewery manufacturer exercising self-distribution pursuant to the provisions of subsection (d)(1) of this section shall register with the department prior to commencing self- distribution in a manner prescribed by the department and maintain complete and accurate books and records of all self-distributed sales into this state, including invoices and delivery records, for not less than three (3) years and enter into, maintain, and abide by the terms of a labor peace agreement as defined in § 21-28.11-12.2.
(e) Subject to city or town approval for a liquor license, a holder of a manufacturer’s license for a brewery is authorized to have one additional location for the retail sale of alcoholic liquor manufactured in the state to be consumed on and off the premises pursuant to the provisions of this chapter.
(f) Notwithstanding any provision of law to the contrary, a holder of a manufacturer’s license issued pursuant to this section may purchase from a duly licensed Rhode Island wholesaler, for resale at retail for consumption on the premises only, alcoholic beverages that are manufactured in this state by a manufacturer licensed under this title; provided that, any alcoholic beverages purchased for resale pursuant to this subsection shall be invoiced by, and delivered from, a Rhode Island wholesaler licensed under this title and alcoholic beverages resold pursuant to this subsection shall be limited to malt beverages, wine, and distilled spirits that are manufactured in Rhode Island.
SECTION 2. This act shall take effect upon passage.
3-6-1. Manufacturer’s license.
(a) A manufacturer’s license authorizes the holder to establish and operate a brewery, distillery, or winery at the place described in the license for the manufacture of beverages within this state. The license does not authorize more than one of the activities of operator of a brewery or distillery or winery and a separate license shall be required for each plant.
(b) The license also authorizes the sale at wholesale, at the licensed place by the manufacturer of the product of the licensed plant, to another license holder and the transportation and delivery from the place of sale to a licensed place or to a common carrier for that delivery. The license does authorize the sale of beverages for consumption on premises where sold; provided that the manufacturer does not sell an amount in excess of forty-eight ounces (48 oz.) of malt beverage or four and one-half ounces (4.5 oz.) of distilled spirits, or fifteen ounces (15 oz.) of wine per visitor, per day, or a combination not greater than three (3) drinks where a drink is defined as up to sixteen ounces (16 oz.) of beer or one and one-half ounces (1.5 oz.) or five ounces (5 oz.) of wine of spirits, for consumption on the premises. The license also authorizes the sale of beverages produced on the premises in an amount not in excess of forty-eight (48) twelve-ounce (12 oz.) bottles or cans or forty-eight (48) sixteen-ounce (16 oz.) bottles or cans of malt beverages, or an amount not in excess of seven hundred sixty-eight fluids ounces (768 fl. oz.) in any vessel or one thousand five hundred milliliters (1,500 ml) of distilled spirits per visitor, or three (3) seven hundred fifty milliliter (750 ml) bottles of wine or the equivalent amount of wine sold by the can or other container, per day, to be sold in containers that may hold no more than seventy-two ounces (72 oz.) each. These beverages may be sold to the consumers for off-premises consumption, and shall be sold pursuant to the laws governing retail Class A establishments. The containers for the sale of beverages for off-premises consumption shall be sealed. The license does not authorize the sale of beverages in this state for delivery outside this state in violation of the law of the place of delivery. The license holder may provide to visitors, in conjunction with a tour or tasting, samples, clearly marked as samples, not to exceed three hundred seventy-five milliliters (375 ml) per visitor for distilled spirits and seventy-two ounces (72 oz.) per visitor for malt beverages at the licensed plant by the manufacturer of the product of the licensed plant to visitors for off-premises consumption. The license does not authorize providing samples to a visitor of any alcoholic beverages for off- premises consumption that are not manufactured at the licensed plant. All manufacturer licenses conducting retail sales or providing samples shall be subject to compliance with alcohol server training and liquor liability insurance requirements set forth in §§ 3-7-6.1 and 3-7-29 and the regulations promulgated thereunder.
(c) The annual fee for the license is three thousand dollars ($3,000) for a distillery producing more than fifty thousand gallons (50,000 gal.) per year and five hundred dollars ($500) for a distillery producing less than or equal to fifty thousand gallons (50,000 gal.) per year; five hundred dollars ($500) for a brewery; and one thousand five hundred dollars ($1,500) for a winery producing more than fifty thousand gallons (50,000 gal.) per year and five hundred dollars ($500) per year for a winery producing less than fifty thousand gallons (50,000 gal.) per year. All those fees are prorated to the year ending December 1 in every calendar year and shall be paid to the general treasurer for the use of the state.
(d) Notwithstanding § 3-7-18 and any other provision of the law to the contrary, a holder of a manufacturer’s license for a brewery, whether located within or outside this state, if authorized by the department of business regulation, may sell, transport, deliver, and distribute malt beverages of its own manufacture directly to retailers licensed under this title within this state without using a licensed Rhode Island wholesaler, subject to the following requirements:
(1) If, in any calendar year, a brewery manufacturer:
(i) Self-distributes five thousand (5,000) barrels or more within the state; or
(ii) Has a total annual production of eight thousand (8,000) barrels or more, then the brewery manufacturer shall, within thirty (30) days after meeting the applicable threshold either LC004764 - Page 2 of 4 enter into a written agreement for distribution within this state with a wholesaler licensed in Rhode Island pursuant to this title or cease further self-distribution within this state for the remainder of that calendar year, except that the brewery manufacturer may complete delivery of orders invoiced prior to the date the threshold was met, for a period not to exceed fifteen (15) days. Any written agreement pursuant to this subsection shall be consistent with chapter 3 of title 3, negotiated in good faith and may include terms governing the grant, purchase, transfer, or other conveyance of the brewery manufacturer’s Rhode Island distribution rights for one or more brands of malt beverages.
(2) A brewery manufacturer exercising self-distribution pursuant to the provisions of subsection (d)(1) of this section shall register with the department prior to commencing self- distribution in a manner prescribed by the department and maintain complete and accurate books and records of all self-distributed sales into this state, including invoices and delivery records, for not less than three (3) years and enter into, maintain, and abide by the terms of a labor peace agreement as defined in § 21-28.11-12.2.
(e) Subject to city or town approval for a liquor license, a holder of a manufacturer’s license for a brewery is authorized to have one additional location for the retail sale of alcoholic liquor manufactured in the state to be consumed on and off the premises pursuant to the provisions of this chapter.
(f) Notwithstanding any provision of law to the contrary, a holder of a manufacturer’s license issued pursuant to this section may purchase from a duly licensed Rhode Island wholesaler, for resale at retail for consumption on the premises only, alcoholic beverages that are manufactured in this state by a manufacturer licensed under this title; provided that, any alcoholic beverages purchased for resale pursuant to this subsection shall be invoiced by, and delivered from, a Rhode Island wholesaler licensed under this title and alcoholic beverages resold pursuant to this subsection shall be limited to malt beverages, wine, and distilled spirits that are manufactured in Rhode Island.
SECTION 2. This act shall take effect upon passage.