Revision: May 28, 2009, midnight
HB 429-FN – AS AMENDED BY THE SENATE
26Mar2009… 1044h
05/13/09 1567s
2009 SESSION
03/09
HOUSE BILL 429-FN
AN ACT relative to the liquor commission and alcoholic beverages.
COMMITTEE: Local and Regulated Revenues
This bill modifies the definition of beverage for purposes of the alcoholic beverage laws. This bill also changes the distribution of liquor commission revenue and makes organizational changes to the liquor commission.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26Mar2009… 1044h
05/13/09 1567s
09-0683
03/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to the liquor commission and alcoholic beverages.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Beverage. Amend RSA 175:1, VIII to read as follows:
VIII. “Beverage” means any beer, wine, similar fermented malt or vinous liquors and fruit juices and any other liquid intended for human consumption as a beverage having an alcoholic content of not less than 1/2 of one percent by volume and not more than 6 percent alcohol by volume at 60 degrees Fahrenheit and specialty beer as defined in RSA 175:1, LXIV-a. The commission may approve any cider greater than 6 percent.
2 New Subparagraph; General Revenue Exceptions. Amend RSA 6:12, I(b) by inserting after subparagraph (276) the following new subparagraph:
(277) Moneys deposited in the liquor commission fund established in RSA 176:16.
3 Purchase of Supplies; Exemptions; Liquor Commission. RSA 21-I:18, I(b) is repealed and reenacted to read as follows:
(b) The liquor commission is completely exempted from the provisions of this chapter, provided that the liquor commission uses competitive bidding when acquiring consumable supplies, materials, goods, and services that are necessary for, incidental to, or related to the operation of the liquor commission.
4 Divisions and Directors. RSA 176:8 is repealed and reenacted to read as follows:
176:8 Divisions and Directors. The commission shall have 3 divisions under the direction of unclassified division directors. The directors shall be appointed by the commission and serve at the pleasure of the commission based on good behavior and competence. There shall be a division of marketing, merchandising, and warehousing, a division of administration, and a division of enforcement and licensing.
5 Liquor Commission Funds. Amend RSA 176:16 to read as follows:
176:16 Funds.
I. Except as provided in paragraph II, the state treasurer shall credit all gross revenue derived by the commission from the sale of liquor, or from license fees, [shall be deposited into the general funds of the state. The expenses of administration and all other expenditures provided for in this title shall be paid by the state treasurer on warrants of the governor with the advice and consent of council.] and interest received on such moneys, to a special fund, to be known as the liquor commission fund, from which the treasurer shall pay all expenses of the commission incident to the administration of this title. Any balance left in such fund after such expenses are paid shall be deposited in the general fund on a daily basis.
II. Fifty percent of the amount by which the current year gross profits exceed fiscal year 2001 actual gross profit, but not more than 5 percent of the current year gross profits derived by the commission from the sale of liquor and other revenues, shall be deposited into the alcohol abuse prevention and treatment fund established by RSA 176-A:1.
III. Notwithstanding any other provision of law, if the expenditure of additional funds over budget estimates is necessary for the proper functioning of the commission, the commission may request, with prior approval of the fiscal committee of the general court, that the governor and council authorize the transfer of funds from the liquor commission fund for expenses related to retirement and health benefits.
IV. The commission may transfer funds totaling up to 5 percent of the operating budget in any fiscal year for any specific purposes to funds for other purposes within and among the appropriations for the operation of the commission. The commission shall report on a semi-annual basis to the fiscal committee of the general court all transfers accomplished under the provisions of this section. The provisions of this section shall not be subject to RSA 9:16-a, RSA 9:17-a, and RSA 9:17-c.
6 Liquor Commission; State Stores. RSA 177:1 is repealed and reenacted to read as follows:
177:1 State Stores. The commission may lease, purchase, and equip, in the name of the state, such stores, warehouses, supplies, materials, equipment, products, and other marketing and merchandising requirements for the sale or promotion of liquor and related products as are necessary to carry out the provisions of this chapter. The commission may lease, in the name of the state, space in state stores for the purpose of installing automated teller machines. No newly established state store shall be operated within 200 feet of any public or private school, church, chapel, or parish house.
7 Closing of State Liquor Stores. RSA 177:2, I is repealed and reenacted to read as follows:
I. The commission may close any state liquor store to improve profitability and efficiency. In determining net operating profit or loss, the commission shall adhere to generally accepted accounting principles for both revenues and expenses and shall include an allocation for indirect costs. All information regarding a decision to close any state liquor store shall be made available, by the commission, to the public upon request. The commission shall provide public notice 30 days prior to closing any state liquor store.
8 References Changed. Amend RSA 178:11, V to read as follows:
V. Liquor/wine/beverage warehousers shall submit a monthly report both to the liquor commission enforcement and licensing division and the [warehouse and transportation] marketing, merchandising, and warehousing division of the commission by the tenth day of the following month indicating the quantity, type, size, and brands of all product received, stored, or shipped on their premises.
9 New Section; Combination Conditional License. Amend RSA 178 by inserting after section 17 the following new section:
178:17-a Combination Conditional License.
I. At its discretion, the commission may combine license types and issue a combination conditional license to a licensee that holds or is seeking more than one license for a single establishment. In issuing a combination conditional license, the commission may suspend or modify any existing licensing requirement established under title XIII and may impose additional conditions. The commission may deny, in its discretion, any license under this section that constitutes a risk to public health, safety, or welfare of any community.
II. The commission shall issue a combination conditional license in accordance with RSA 541-A:39.
III. This section shall not be interpreted to create a license category that does not exist in statute.
10 Effective Date.
I. Section 1 of this act shall take effect 60 days after its passage.
II. The remainder of this act shall take effect July 1, 2009.
LBAO
09-0683
Amended 05/28/09
HB 429 FISCAL NOTE
AN ACT relative to the liquor commission and alcoholic beverages.
FISCAL IMPACT:
The New Hampshire Liquor Commission states this bill, as amended by the Senate (Amendment #2009-1567s), will have an indeterminable fiscal impact on state revenue and expenditures in FY 2010 and each year thereafter. This bill will have no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The New Hampshire Liquor Commission states this bill modifies the definition of beverage for the purposes of the alcoholic beverage laws, creates a liquor commission fund, and makes organizational changes to the liquor commission.
The Commission states this bill will result in cider being sold by beer distributors rather than the Commission. The Commission sold 6,202, 750-ml bottles and 795, 22-oz bottles of cider at its retail stores during FY 2008, generating $21,643 in revenue. The Commission assumes the volume of sales will be constant, lowering liquor commission fund revenues by $21,643 in FY 2010 and each year thereafter. As a beverage with up to 6 percent alcohol content, cider will be taxed at $0.30 per gallon, increasing beer tax revenues by $410 each year.
The Commission states under this bill revenue from sale of liquor or licenses will be credited to the liquor commission fund, and Commission expenses will be paid from the fund. Any excess revenue after expenses are paid will be deposited in the general fund on a daily basis. Therefore, general fund expenditures would be reduced by $44,516,688 in FY 2010 and $46,628,684 in FY 2011 based on the Governor’s recommended budget.
The Commission states this bill creates three new division director positions (converted from classified positions). The Commission states there will be minimal changes to benefits costs. The Commission anticipates changes in salary costs as follows:
|
Unclassified Position |
Net Salary Increase FY 2010 |
Net Salary Increase FY 2011 |
Director of Administration |
Group GG, Step Max |
$ 48 |
$ - |
Director of Enforcement |
Group GG, Step 3 |
$ 4,379 |
$ 4,475 |
Director of Marketing, Merchandising, and Warehousing |
Group GG, Step 4 |
$ 2,749 |
$ 3,616 |
Total |
$ 7,176 |
$ 8,091 |
The Commission states by providing flexibility in areas such as procurement and transfer of appropriations, this bill will increase operational efficiencies resulting in increased annual net profits, and saving time and manpower. However, the Commission cannot quantify any anticipated reduction in expenditure or increased revenues at this time.