§ 3-5-11.1 - Liquor franchises prohibited.
SECTION 3-5-11.1
§ 3-5-11.1 Liquor franchises prohibited.– (a) To promote the effective and reasonable control and regulation of the RhodeIsland alcoholic beverage industry and to help the consumer by protecting theirchoices and ensuring equitable pricing. Class A liquor license authorized bythis title shall not be granted, issued, renewed or transferred to or for theuse of any liquor franchisor or franchisee. Class A liquor license holders areexpressly prohibited from utilizing the provisions of the Franchise InvestorAct, § 19-28-1 et seq.
(b) Any franchise agreements involving the retail sales ofalcoholic beverages are hereby declared null and void and illegal as of theeffective date of this section [April 1, 2005].
(c) Any franchise agreements involving the retail sales ofalcoholic beverages shall be terminated by the franchisor or the franchiseewithin thirty (30) days of the effective date of this section.
(d) Upon finding of a violation of this section by either thefranchisor or the licensee, the department shall be empowered to set a fine upto the amount of ten thousand dollars ($10,000) per violating franchisor orlicensee, revoke the license of the violator or suspend the license of theviolator for a period of time to be determined by the department. Additionally,the department shall have the power to revoke or suspend the franchiseregistration in accordance with § 19-28.1-18 and to order it to cease anddesist from all operations that are violative of the provisions of this section.
Notwithstanding anything contained in this chapter to thecontrary, this act shall not be construed as to prevent the utilization of dulylicensed professionals rendering services as independent contractors.