Revision: March 8, 2016, midnight
\t \t\tHB 197-FN – AS AMENDED BY THE HOUSE
6Jan2016... 2457h
2015 SESSION
\t15-0535
\t03/06
HOUSE BILL\t\t197-FN
AN ACT\trelative to sales and samples provided by wine manufacturers.
SPONSORS:\tRep. Hansen, Hills 22; Rep. Sad, Ches 1
COMMITTEE:\tCommerce and Consumer Affairs
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AMENDED ANALYSIS
\tThis bill authorizes the wine manufacturer to conduct sampling and retail sales at locations other than its manufacturing facility.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
6Jan2016... 2457h\t15-0535
\t03/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT\trelative to sales and samples provided by wine manufacturers.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Wine Manufacturer License. Amend RSA 178:8, III to read as follows:
\t\tIII. 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 of legal drinking age at said premises may be provided with samples of wine manufactured on the premises for tasting. Samples may be provided either free or for a fee and shall be limited to one 2-ounce sample per label per person. The commission may issue additional licenses to a wine manufacturer to operate no more than 2 additional tasting rooms for both samples and retail sales of its own wine separate and apart from its manufacturing facility, subject to payment of an annual fee of $420 for each location. 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 sell such products at retail in the original container.
\t2 Effective Date. This act shall take effect January 1, 2017.
\t\t\t\t\t\t\t\t\t\t\t\t\tLBAO
\t\t\t\t\t\t\t\t\t\t\t15-0535
\t\t\t\t\t\t\t\t\t\t\tRevised 01/14/15
HB 197 FISCAL NOTE
AN ACT\trelative 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 |