HB197 (2015) Detail

Relative to sales and samples provided by wine manufacturers.


HB 197-FN – AS INTRODUCED

2015 SESSION

15-0535

03/06

HOUSE BILL 197-FN

AN ACT relative to sales and samples provided by wine manufacturers.

SPONSORS: Rep. Hansen, Hills 22; Rep. Sad, Ches 1

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill allows a wine manufacturer licensee to charge for samples provided to visitors at its facility. This bill also authorizes the wine manufacturer to conduct sampling and retail sales at locations other than its manufacturing facility.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15-0535

03/06

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Fifteen

AN ACT relative to sales and samples provided by wine manufacturers.

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

1 Wine Manufacturer License. Amend RSA 178:8, III to read as follows:

III. Each wine manufacturer shall have the right to sell at retail or wholesale at its winery for off-premises consumption any of its wines. Visitors at said premises may be provided with reasonable samples of wine for tasting, which may be provided free or which may be provided for a charge, subject to the tax on meals and rooms. A wine manufacturer shall also have the right to operate additional tasting rooms for both samples and retail sales of its own wine separate and apart from its manufacturing facility. Pursuant to rules adopted by the commission, a wine manufacturer may transport its products to a farmers’ market or a wine festival licensed under RSA 178:31, and may provide samples in reasonable quantities and sell such products at retail in the original container.

2 Effective Date. This act shall take effect January 1, 2016.

LBAO

15-0535

Revised 01/14/15

HB 197 FISCAL NOTE

AN ACT relative to sales and samples provided by wine manufacturers.

FISCAL IMPACT:

      The Liquor Commission states this bill, as introduced, may increase state expenditures by $153,773 in FY 2016, $162,516 in FY 2017, $168,996 in FY 2018, and $176,021 in FY 2019, and may decrease state revenues by an indeterminable amount in FY 2016 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Liquor Commission states this bill would allow wine manufacturers to operate an unlimited number of facilities, tasting rooms, or wine shops, without paying a license or permit fee. The Commission believes fewer bottles of New Hampshire made wine will be sold at state liquor stores because wine manufacturers can make more money selling their products at the wineries rather than wholesaling to the Commission. The Liquor Commission reports it is impossible to know how many bottles of wine would be sold directly at the wineries and other sales locations. The Commission estimates that if the wineries sold one-third of their product that the Commission sold in the last twelve months, the State could lose $87,151 (61,809 bottles sold x 1/3 x $4.23 average gross profit per bottle) in liquor fund revenue each year. Although this bill does not establish positions or contain an appropriation, the Commission states it will need two additional Liquor Examiner II positions to absorb the projected workload associated with this bill and enforce existing laws. The Commission reports current liquor examiners will not be able to handle the anticipated workload resulting from this bill. The following table details the costs associated with the two Liquor Examiner positions:

     

    FY 2016

    FY 2017

    FY 2018

    FY 2019

    Two Liquor Examiner II Salaries (LG 20, step 1)

    $41,418

    $85,696

    $89,190

    $93,018

    Benefits

    $33,355

    $52,820

    $55,806

    $59,003

    Current Expenses

    $6,000

    $6,000

    $6,000

    $6,000

    Equipment

    $56,000

    $1,000

    $1,000

    $1,000

    Travel

    $10,000

    $10,000

    $10,000

    $10,000

    Professional Development Training & Overtime

    $7,000

    $7,000

    $7,000

    $7,000

    Total

    $153,773

    $162,516

    $168,996

    $176,021

Links

HB197 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB197 Revision: 27658 Date: March 27, 2015, midnight

Docket