Bill Text - HB456 (2013)

Relative to liquor manufacturers.


Revision: Dec. 31, 2013, midnight

HB 456-FN – AS INTRODUCED

2013 SESSION

13-0712

03/10

HOUSE BILL 456-FN

AN ACT relative to liquor manufacturers.

SPONSORS: Rep. Peckham, Rock 22; Rep. Schroadter, Rock 17

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill allows liquor manufacturers:

I. To distribute samples to licensees for tasting on licensed premises.

II. To sell liquor directly to on-premises and off-premises licensees.

III. To sell at farmers’ markets.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

13-0712

03/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT relative to liquor manufacturers.

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

1 Liquor Manufacturer; Retail Sales. Amend RSA 178:6, III to read as follows:

III. Each liquor manufacturer [distilling less than 5,000 cases of liquor per year] shall have the right to sell at retail or wholesale at its facility for off-premises consumption any of its liquor. [Each retail sale shall be limited to one 9-liter case or less per sale. No liquor manufacturer shall sell more than 12 9-liter cases of liquor to any one customer in any calendar year.] Pursuant to rules adopted by the commission, a liquor manufacturer may transport its products to a farmers’ market, and may sell such products at retail in the original container.

2 Liquor Manufacturer; Sales Fee. Amend RSA 178:6, V-VI to read as follows:

V. [Notwithstanding paragraph III, no] Each liquor manufacturer shall have the right to sell [at its facility any of its liquor to on-premises licensees] and to transport and deliver liquor manufactured by it directly to the holders of on-premises or off-premises licenses issued by the commission.

VI. Each liquor manufacturer shall maintain records and prepare reports for the commission which shall indicate the sales made under paragraph III and paragraph V and samples distributed under paragraph IX and shall pay to the commission monthly a fee equal to 8 percent of such sales or 8 percent of the retail value of such samples on or before the tenth day of the month following the sale or distribution.

3 New Paragraph; Liquor Manufacturer; Distribution of Samples. Amend RSA 178:6 by inserting after paragraph VIII the following new paragraph:

IX. Each liquor manufacturer shall have the right to distribute samples directly to on-premises and off-premises licensees for tasting on the licensed premises in accordance with RSA?179:44.

4 Samples Provided for Tasting. Amend RSA 179:31, II(e) to read as follows:

(e) All liquor or wine for this purpose shall be purchased from the commission, except as provided in RSA 178:6, IX.

5 Free Drinks. Amend RSA 179:44 to read as follows:

179:44 Free Drinks.

I. No licensee shall give away free drinks to customers, patrons, members, or guests, in any manner.

II. Notwithstanding [the above] paragraph I, beverage manufacturers, liquor manufacturers, beverage vendors, brew pubs, wholesale distributors and their liquor or wine vendors, their liquor and wine representatives, domestic wine manufacturers, and on-premises and off-premises licensees may conduct beverage, liquor, or wine tasting, as applicable, on licensed premises. Liquor, beverage, or wine tasting shall be conducted only during such hours as are authorized by the commission for the sale of the product on the premises.

III. Liquor, beverage, or wine samples shall be consumed on the premises, and, except for wine samples provided by wine manufacturers and liquor samples provided by liquor manufacturers, liquor or wine for this purpose shall be purchased from the commission under conditions prescribed by this title. Beverage samples for a tasting shall only be obtained as prescribed by this title.

IV. The commission may adopt rules, pursuant to RSA 541-A, establishing the criteria and procedures for liquor, beverage, and wine tasting within the state.

V. All samples furnished for tasting shall be considered sales for the requirements of RSA?178:26 and RSA 178:6, VI.

6 Effective Date. This act shall take effect January 1, 2014.

LBAO

13-0712

Revised 02/15/13

HB 456 FISCAL NOTE

AN ACT relative to liquor manufacturers.

FISCAL IMPACT:

      The Liquor Commission states this bill, as introduced, may decrease state revenue by an indeterminable amount in FY 2014 and each year thereafter. There is no fiscal impact on state, county and local expenditures, or county and local revenue.

METHODOLOGY:

    The Liquor Commission states this bill allows liquor manufacturers to distribute samples to licensees for tasting on licensed premises. The Commission states this bill also allows the manufacturers to sell liquor at both wholesale and retail without having to go through the Commission. The Commission states this will result in an indeterminable decrease in state revenue as it will not be able to appropriately maintain proper controls and optimize revenue in those instances where a liquor manufacturer chooses to sell liquor at wholesale and retail.