Revision: March 27, 2014, midnight
HB 456-FN – AS AMENDED BY THE HOUSE
6Feb2014… 0014h
2013 SESSION
03/10
HOUSE BILL 456-FN
AN ACT relative to liquor manufacturers and relative to samples of alcoholic beverages.
SPONSORS: Rep. Peckham, Rock 22; Rep. Schroadter, Rock 17
COMMITTEE: Commerce and Consumer Affairs
This bill:
I. Requires that all liquor manufacturer licensees ferment and distill liquor from raw materials.
II. Allows liquor manufacturer licensees to distribute samples to off-premises and agency store licensees for tasting on licensed premises.
III. Establishes annual restrictions on alcoholic beverage samples.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
6Feb2014… 0014h
13-0712
03/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to liquor manufacturers and relative to samples of alcoholic beverages.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Definitions; Liquor Manufacturer. Amend RSA 175:1 by inserting after paragraph XLIV the following new paragraph:
XLIV-a. “Liquor manufacturer” means a licensee who produces liquor from raw materials by the process of fermentation and distillation.
2 New Paragraph; Definitions; Rectifier. Amend RSA 175:1 by inserting after paragraph LVIII the following new paragraph:
LVIII-a. “Rectifier” means a licensee who produces liquor by combining liquor with other products.
3 Liquor Manufacturer Licensee. Amend RSA 178:6, I to read as follows:
I. A liquor manufacturer licensee [may] must ferment[,] and distill liquor from raw materials, and may blend, age, and bottle [liquor other than wine] those liquors or wine produced at the licensed premises in this state. A liquor manufacturer licensee may sell the liquor it manufactures to the commission for resale in this state.
4 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 at its licensed manufacturing facility no more than the equivalent of 3,000 9-liter cases 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.
5 Liquor Manufacturer; Sample Fee. Amend RSA 178:6, VI to read as follows:
VI. Each liquor manufacturer shall maintain records and prepare reports for the commission which shall indicate the sales made under paragraph III 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 the sample distribution.
6 New Paragraph; Liquor Manufacturer; Distribution of Samples. Amend RSA 178:6 by inserting after paragraph VIII the following new paragraph:
IX. Each liquor manufacturer selling no more than the equivalent of 3,000 9-liter cases of liquor per year at its licensed manufacturing facility shall have the right to distribute samples directly to on-premises and agency store licensees for tasting on the licensed premises in accordance with RSA?179:44.
7 Samples Provided for Tasting. Amend the introductory paragraph of RSA 179:31, II to read as follows:
II. Manufacturers, wholesale distributors, or wine and liquor vendors or their salespersons may distribute samples of their products to licensees for purposes of tasting. The following restrictions shall apply annually:
8 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 and RSA 178:6, VI. The cost shall be no more than the commission’s original cost paid by the commission plus 8 percent.
9 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 in accordance with RSA 178:6, IX, 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.
10 Effective Date. This act shall take effect upon its passage.
LBAO
13-0712
Amended 02/12/14
HB 456-FN FISCAL NOTE
AN ACT relative to liquor manufacturers and relative to samples of alcoholic beverages.
FISCAL IMPACT:
The Liquor Commission states this bill, as amended by the House (Amendment #2014-0014h), may decrease state revenue by an indeterminable amount in FY 2015 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 manufacturers to distribute samples to licensees for purpose of tasting. Additionally, the bill states 8 percent of the retail value of such samples shall be paid to the Commission. The Commission states there are three liquor licensed manufacturers, 34 wine licensed manufacturers, and 22 beverage and nano brewery manufacturers in the state. The Commission states it is not able to predict the number of manufacturers that will provide samples for tasting or sell directly to customers. As a result, the Commission is not able to determine how much revenue will be generated by the 8 percent charge for samples or the impact of manufacturers selling directly to customers versus through the Commission to determine the overall decrease in revenue. The Commission states it would lose approximately 20 percent of gross profit on each of the direct sales made by the manufacturers. Though the net impact of this bill may result in a loss of liquor revenue, the Commission states the loss would be immaterial given total liquor sales.