HB 637-FN-A – AS INTRODUCED
2013 SESSION
03/09
HOUSE BILL 637-FN-A
AN ACT transferring licensing for retail tobacco sales to the department of revenue administration from the liquor commission.
SPONSORS: Rep. D. McGuire, Merr 21
COMMITTEE: Executive Departments and Administration
This bill transfers licensing for retail tobacco sales to the department of revenue administration from the liquor commission.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0267
03/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT transferring licensing for retail tobacco sales to the department of revenue administration from the liquor commission.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tobacco Tax; Licenses. RSA 78:2 is repealed and reenacted to read as follows:
78:2 Licenses.
I. Each manufacturer, wholesaler, sub-jobber, vending machine operator, retailer, and sampler shall secure a license from the commissioner before engaging in the business of selling or distributing tobacco products in this state or continuing to engage in such business. Each wholesale, sub-job, and retail outlet shall have a separate license regardless of the fact that one or more outlets may be owned or controlled by a single person. Each tobacco products vending machine to be operated in this state shall be licensed by the commissioner and shall be appropriately identified as being licensed. The commissioner shall adopt rules pursuant to RSA 541-A relative to the licensing and identification of each tobacco products vending machine, and the information required in an application for a license. The commissioner shall issue a license upon application stating such information necessary to identify the outlet and the character of business transacted. The fees for licenses shall be: $100 for a manufacturer’s license; $250 for a wholesaler’s license; $150 for a sub-jobber’s license; $70 for a vending machine operator’s license; $10 for a retailer’s license; $10 for a sampler’s license; and $10 for each vending machine location, for the purpose of helping to pay the cost of administering this chapter. Each license shall be prominently displayed on the premises described in it. Any person who shall sell, offer for sale or possess with intent to sell any tobacco products without such license as provided in this section shall be subject to the penalty provisions of RSA 21-J:39.
II. Notwithstanding RSA 21-J:14, information regarding licenses issued pursuant to this section and information regarding enforcement actions taken pursuant to this chapter and RSA 126-K shall be public records.
III. The commissioner, when issuing or renewing a retailer’s license under RSA 78:2, shall furnish a sign which shall read or be substantially similar to the following: “State Law prohibits the sale of tobacco products to persons under age 18 and the purchase, possession, or use of tobacco products by persons under age 18. Warning: violators of these provisions may be subject to a fine.” The sign shall be posted at any location where tobacco products are sold or distributed. The commissioner shall adopt rules, under RSA 541-A, relative to placement of these warning signs in areas where tobacco products are sold or distributed.
IV. Tobacco vending machine licensees shall register each vending machine with the commissioner and obtain a permit for each machine. Such permit shall be displayed on the machine, and each machine shall have a separate permit regardless of the fact that one or more machines may be owned or controlled by a single licensee.
2 Unauthorized Sales. Amend RSA 78:12-a to read as follows:
78:12-a Unauthorized Sales. Manufacturers, wholesalers, and sub-jobbers shall not sell tobacco products to any licensee who does not possess a valid or current license issued by the commissioner [or issued by the liquor commission under RSA 178]. Any person who violates the provisions of this section shall be subject to the penalty provisions of RSA 21-J:39.
3 Unstamped Tobacco Products. Amend RSA 78:14 to read as follows:
78:14 Unstamped Tobacco Products. No sub-jobber, vending machine operator, or retailer, and no other person who is not licensed under the provisions of this chapter [or licensed under the provisions of RSA 178], shall sell, offer for sale, display for sale, ship, store, import, transport, carry, or possess with or without intent to sell, any tobacco products not properly stamped under RSA 78:12 or 78:13, except as provided in RSA 78:12, II. This section shall not prevent any unlicensed person able to purchase unstamped tobacco products by statute from possessing such products for his or her own use or consumption, if the tax otherwise due under this chapter is paid by the unlicensed person to the department directly. The provisions of this section shall not apply to common carriers transporting unstamped tobacco products. Any person who violates the provisions of this section shall be guilty of a felony.
4 Inspection Authorized. Amend RSA 78:26 to read as follows:
78:26 Inspection Authorized. The commissioner or any agent or employee of the department of revenue administration, and any policeman, constable, sheriff or deputy sheriff[, or agent of the liquor commission] may enter in and upon any place or premises where tobacco products are held, kept, located, or stored for the purpose of inspecting such products and ascertaining that the tobacco products at such premises, or any portion thereof, shall not be sold, used, or consumed in this state without the tobacco products tax first having been paid.
5 Definitions; License. Amend RSA 175:1, XXXIX to read as follows:
XXXIX. “License” means the authority granted by the commission to engage in the sale of liquor, wine, or beverages[, or tobacco products] otherwise unlawful unless evidenced by such document.
6 License Examinations. Amend RSA 176:9, III to read as follows:
III. Any member of the commission, assistant, or liquor investigator may enter any place where liquor[,] or beverages[, or tobacco products] are sold or manufactured, at any time, and may examine any license or permit issued or purported to have been issued under the terms of this title. They shall make complaints for violations of this title.
7 Licenses Authorized. Amend RSA 178:2, I to read as follows:
I. The commission may issue licenses to individuals, partnerships, limited liability companies and partnerships, or corporations but not to unincorporated associations, on applications duly made therefor for the manufacture, warehousing, sale, offer for sale, or solicitation of orders for sale of liquor or beverages [and for retail sales of tobacco products] within the state, subject to the limitations and restrictions imposed by this title. The commission shall keep a full record of all applications for licenses, of all recommendations for and remonstrances against the granting of licenses, and of the action taken on such applications.
8 Combination and Retail Wine Licenses. Amend RSA 178:18 and RSA 178:19 to read as follows:
178:18 Combination License.
I. Off-premises licenses shall be issued only for grocery and drug stores not holding on-premises licenses. Such licenses shall authorize the licensees to sell 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 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 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,] 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.
[III. The commission may suspend the tobacco or alcohol sales portion of the license separately under the provisions of RSA 179:57; any revocation shall revoke the entire license.]
178:19 Retail Wine License.
I. A retail wine license may be issued by the commission to any person operating a retail outlet in this state which shall allow the licensee to sell [tobacco products,] fortified wines[,] and table wines directly to individuals at retail on the premises for consumption off the premises; provided, however, that persons holding any license authorizing the sale of liquor or wine by the glass under this chapter shall sell the wines authorized pursuant to this section in a separate area of the premises from the areas licensed for on-premises consumption. A separate license shall be required with respect to each place of business of an applicant. The license shall authorize the licensee to transport and deliver fortified and table wines ordered from and sold by the commission and sold by the licensee in vehicles operated under the licensee’s control or an employee’s control.
II. All sales of wine [and tobacco products] 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.
III. On-premises licensees licensed under this chapter shall maintain separate rooms for storage, shelving, display, and sale of [tobacco products and] fortified and table wine for consumption off the premises. Such rooms shall be equipped with at least one cash register which shall be capable of separately registering wine sales, and such rooms shall have an attendant at all times while open for business. Wine purchased for resale by virtue of the retail wine license shall be purchased on separate invoices from that wine intended for consumption in the dining room or lounge, and separate sales records shall be maintained for this purpose.
[IV. The commission may suspend the tobacco or alcohol sales portion of the license separately under the provisions of RSA 179:57; any revocation shall revoke the entire license.]
9 Cigar Bar. Amend RSA 178:20-a, I to read as follows:
I. The commission may issue a license to a person who operates a cigar bar as defined in this section and who holds a tobacco retailers license under RSA [178:19-a] 78:2 in any town which has voted to accept the provisions of RSA 663:5, I(b), (c), and (d). The license shall entitle the licensee to serve beverages containing at least 1/2 percent and not more than 6 percent alcohol by volume at 60 degrees Fahrenheit by the glass or other suitable container and by the bottle with the cork or cap removed; specialty beer in any suitable container; liquor containing more than 6 percent alcohol by volume at 60 degrees Fahrenheit, by the glass or other suitable container; and wines, by the glass, by the bottle with the cork or cap removed; or other suitable container, under rules adopted by the commission.
10 Fees; Wine Festival License. Amend RSA 178:29, I to read as follows:
I. On-premises licensees shall pay the following applicable fees annually:
Supplemental Beverages Beverages Cocktail
Only and Wine and Liquor Lounge
Airport $1,200
Ballroom $45 $1,200
Bed and Breakfast $480 $840
Beer Festival
One-day $250
Two-day $300
Three-day $350
Catering (all) $1,200
Catering (off-site only) $ 840
Catering (on-site only)
18 events- $5
36 events- $5
52 events- $5
Club Military $100
Club Social
9 events $250
18 events $450
36 events $750
52 events $1,200
Club Private $1,200
Club Veterans
9 events $250
18 events $450
36 events $750
52 events $1,200
College Club $1,200
Convention Center $2,400
Dining Car $480 $840
Fairs $112
Hotel $840 $1,200
One day License $100
Performing Arts $360
Racetrack/Motor Vehicle $1,800
Racetrack/Pari-Mutuel $3,000
Rail Cars $1,200
Restaurant $480 $840 $1,200
Special License $25
Sports/Entertainment Complex $1,800
9 events $250
18 events $450
36 events $750
52 events $1,200
Sports Recreation Facility $1,200
Tobacco Retailer/Cigar Bar $840
Vessel $480 $840 $1,200
Wine Festival
One-day $250
Two-day $300
Three-day $350
11 Youth Access to Tobacco Products. RSA 126-K:12, III is repealed and reenacted to read as follows:
III. On or before April 1 of each even-numbered year, the commission shall provide the department of revenue administration with a list of the names and addresses of all persons against whom fines and penalties were assessed pursuant to this chapter and who have not paid said fines and penalties in full by the date of the list. The commission shall update the information provided to the department of revenue administration prior to June 30 of each even numbered year and thereafter as requested by the department.
12 Repeal. The following are repealed:
I. RSA 175:1, LIX-a, relative to definition of retailer.
II. RSA 175:1, LX-b, relative to definition of sampling.
III. RSA 175:1, LXIV-d and LXIV-e, relative to relative to definitions of tobacco products and vending machine.
IV. RSA 178:1, VI, relative to tobacco licenses.
V. RSA 178:19-a through RSA 178:19-c, relative to tobacco licenses.
VI. RSA 178:29, V-a, relative to tobacco license fees.
VII. RSA 179:57, III, relative to tobacco license suspension or revocation.
13 Effective Date. This act shall take effect July 1, 2013.
LBAO
13-0267
01/28/13
HB 637-FN-A – FISCAL NOTE
AN ACT transferring licensing for retail tobacco sales to the department of revenue administration from the liquor commission.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will increase state general fund revenue and expenditures by an indeterminable amount in FY 2014 and each year thereafter. There will be no fiscal impact on county and local revenue and expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill transfers responsibility for licensing retail tobacco sales to the Department from the State Liquor Commission. In addition, the bill increases the license fee for tobacco vending machine operators from $35 to $70, and for individual vending machines, retailers, and samplers from $6 to $10 each. Prior to 2009, the Department was responsible for licensing retail tobacco operations. In 2008, RSA 78:2 was amended to transfer responsibility for these functions to the Liquor Commission, effective January 1, 2009; this bill proposes again establishing these functions within the Department. While the Department currently licenses tobacco manufacturers, sub-jobbers, and wholesalers, it states the addition of retail vendors will require modifying the existing tobacco license forms. The Department states it is able to absorb the costs of modifying the existing forms within its current budget. However, the Department states it is unable to absorb the cost of printing licenses, permits, and warning signs as required by the bill. Based on the cost of these materials when it was last responsible for licensing tobacco retailers, the Department estimates these costs at between $3,000 and $5,000 per year.
Prior to the transfer of retail licenses to the Liquor Commission, the Department had three employees dedicated to processing all tobacco licenses, including those for retailers as well as for wholesalers, manufacturers, and sub-jobbers. The Department states that one of those positions has since been eliminated and two have assumed other responsibilities within the Department that will make it difficult to perform additional functions. Consequently, the Department estimates it will need two additional labor grade 21 compliance officers in order to assume responsibilities for retailer licensing. The Department states the additional costs of these positions will be as follows:
FY 2014 |
FY 2015 |
FY 2016 |
FY 2017 | |
Compliance office salary (LG 21 * 2, with annual steps) |
$75,699 |
$78,780 |
$82,173 |
$85,488 |
Benefits * 2 |
$47,315 |
$50,785 |
$54,530 |
$58,528 |
Total Salary and Benefits |
$123,014 |
$129,565 |
$136,703 |
$144,016 |
Based on its prior licensing responsibilities, the Department estimates it will issue 25 vending machine licenses, and between 1,500 and 1,800 retail tobacco licenses every even-numbered year when licenses are required to be renewed. With the increase in license fees, the Department anticipates the bill will increase state revenue by an amount between $6,875 (1,500 licenses * a $4 increase, plus 25 vending machines * a $35 increase), and $8,075 (1,800 licenses * a $4 increase, plus 25 vending machines * a $35 increase) each even-numbered year. This revenue will be deposited into the general fund. Additional revenue will be earned from new licenses, but the Department states it does not have recent data on the number of new licenses issued each year.
The Liquor Commission states that when it assumed retail tobacco licensing responsibilities in 2009, it did not add positions or increase any other portion of its budget in order to fulfill the new responsibilities. As such, the Commission states it does not expect the bill to result in a reduction in personnel or other expenses. Accordingly, the Commission states it will not experience a fiscal impact as a result of the bill.
This bill does not contain an appropriation or authorization for additional positions.