Bill Text - HB1251 (2012)

Permitting off-premises licensees to sell liquor.


Revision: Dec. 14, 2011, midnight

HB 1251-FN – AS INTRODUCED

2012 SESSION

12-2021

03/01

HOUSE BILL 1251-FN

AN ACT permitting off-premises licensees to sell liquor.

SPONSORS: Rep. Hikel, Hills 7; Rep. Baldasaro, Rock 3; Rep. Swinford, Belk 5; Rep. M. McCarthy, Hills 21; Rep. Jennifer Coffey, Merr 6; Rep. D. McGuire, Merr 8; Rep. Gonzalez, Hills 17; Rep. Kappler, Rock 2; Rep. Maltz, Hills 27

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill permits off-premises combination licensees to sell liquor.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2021

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT permitting off-premises licensees to sell liquor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Combination License. Amend RSA 178:18, I-II to read as follows:

I. Off-premises licenses shall be issued only for grocery or convenience stores and drug stores not holding on-premises licenses. Such licenses shall authorize the licensees to sell liquor, fortified wine, table wine, and beverages for consumption only off the premises designated in the licenses and not to other licensees for resale. Such sale shall be made only in the immediate container in which the liquor, beverage, wine, or fortified wine was received by the off-premises combination licensee; except that in the case of the holder of a wholesale distributor license, beverages may be sold only in such barrels, bottles, or other containers as the commission may by rule prescribe. Off-premises licenses may also authorize the licensee to sell tobacco products. There shall be no restriction on the number of combination licenses held by any person. The license shall authorize the licensee to transport and deliver liquor, beverages, tobacco products, and table or fortified wines ordered from and sold by the licensee in vehicles operated under the licensee's control or an employee's control.

II. All sales of tobacco, liquor, beverages, fortified wines, and table wine shall be recorded on cash registers. No additional registers shall be added during the remainder of the year without prior approval of the commission. No rebate shall be allowed for cash registers discontinued during the license year.

2 Discount and Credit Rules. Amend RSA 178:28, IV-VI to read as follows:

IV. A schedule of hours and procedures by which holders of off-premises retail licenses may purchase liquor, fortified wines, and table wines by the bottle at state retail liquor stores.

V. A schedule of hours and procedures by which liquor, fortified wines, and table wines may be purchased at the discount price for resale by holders of off-premises retail licenses at percentages of discount to be determined by the commission. Discounts for holders of off-premises retail licenses with annual liquor and wine purchases under $350,000 shall be no less than 15 percent less than the regular retail price in the liquor stores and 20 percent less than the regular price F.O.B. at the warehouse.

V-a. [For the purpose of this provision,] Any person holding 2 or more licenses under RSA 178:18 with combined annual liquor and wine purchases under $350,000 shall receive at least 15 percent less than the regular retail price in the liquor stores and at least 20 percent less than the regular price F.O.B. at the warehouse. All combined annual liquor and wine purchases over $350,000 shall receive at least 10 percent less than the regular price F.O.B. at the warehouse.

V-b. The commission, in its discretion, may adjust discounts for off-premises licensees to optimize the profitability of the commission and maintain proper controls; provided that the commission does not reduce discounts below the percentages stated in paragraphs V [or] and V-a.

VI. A schedule of hours and procedures by which liquor, fortified wines, and table wines may be purchased for resale by holders of off-premises retail licenses on a credit basis, the terms of which shall provide for payment of accounts within a time period not to exceed 30 days and not less than 15 days to be determined by the commission.

3 Effective Date. This act shall take effect January 1, 2013.

LBAO

12-2021

11/15/11

HB 1251-FN - FISCAL NOTE

AN ACT permitting off-premises licensees to sell liquor.

FISCAL IMPACT:

      The Liquor Commission states this bill will increase state expenditures by $787,199 in FY 2013, $910,029 in FY 2014, $958,883 in FY 2015, and $1,011,185 in FY 2016, and decrease state revenue by an indeterminable amount in FY 2013 and each year thereafter. There is no fiscal impact on county and local expenditures or revenue.

METHODOLOGY:

    The Liquor Commission states this bill will permit off-premises licensees to sell liquor. The Commission states the number of establishments selling spirits could increase from the 77 state store locations to over 1,400 locations. The Commission states this bill will increase the need for at least liquor investigators due to an increase in licensing activity and monitoring requirements. The annual salary and benefits for a single liquor investigator position (labor grade 17) is $67,100 in FY 2013, $70,836 in FY 2014, $74,807 in FY 2015 and $79,065 in FY 2016. The costs below are based on 12 liquor investigator positions:

 

FY 2013*

FY 2014

FY 2015

FY 2016

Salary

$246,180

$512,316

$532,908

$554,484

Benefits

156,419

337,713

364,775

394,301

Current Expense

12,000

24,000

24,000

24,000

Equipment

360,000

9,600

9,600

9,600

Travel

12,600

26,400

27,600

28,800

Total

$787,199

$910,029

$958,883

$1,011,185

    *FY 2013 costs are prorated for six months, except for equipment which is estimated at $30,000 per investigator.

    The Commission assumes state revenue will decrease by an indeterminable amount. The Commission is not able to estimate how many sales would shift from state owned stores to non-state store locations to estimate the impact on revenue.