Bill Text - SB301 (2016)

(New Title) relative to the consumption of liquor at sports complexes and relative to sales and samples provided by wine manufacturers.


Revision: May 18, 2016, midnight

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SB 301 - AS AMENDED BY THE HOUSE

11May2016... 1604h

2016 SESSION

\t16-2731

\t03/04

 

SENATE BILL\t301

 

AN ACT\trelative to the consumption of liquor at sports complexes and relative to sales and samples provided by wine manufacturers.

 

SPONSORS:\tSen. D'Allesandro, Dist 20; Rep. Horrigan, Straf. 6

 

COMMITTEE:\tCommerce

 

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AMENDED ANALYSIS

This bill permits liquor and beverage sales and consumption in stadium or skybox seating at intercollegiate events at licensed sports/entertainment complexes.  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:\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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11May2016... 1604h\t16-2731

\t03/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to the consumption of liquor at sports complexes and relative to sales and samples provided by wine manufacturers.

 

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

 

\t1  Cocktail Lounge Licenses; Sports/Entertainment Complex.  Amend RSA 178:22, V(u)(1) to read as follows:

\t\t\t\t(1)  The commission may issue a cocktail lounge license to the owner of a sports/entertainment complex, or any operator or designee contracting with the owner of the complex.  Such license shall allow the sale or service of liquor and beverage in any clearly defined areas approved by the commission.  Liquor and beverage shall be sold only at such times as a fee is charged for admission to an event at the sports/entertainment complex.  Liquor and beverage shall not be sold or consumed in stadium or skybox seating at any [intercollegiate or] interscholastic event.  The provisions of RSA 178:22, II shall not apply to this license.

\t2  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.

\t3  Effective Date.  This act shall take effect 60 days after its passage.

 

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\t\t\t\t\t\t\t\t\t\t\tAmended 5/18/16

 

SB 301- FISCAL NOTE

 

AN ACT\trelative to the consumption of liquor at sports complexes and relative to sales and samples provided by wine manufacturers.

 

 

FISCAL IMPACT:

The New Hampshire Liquor Commission states this bill, as amendment by the House (Amendment #2016-1604h), will increase state expenditures and revenue by an indeterminable amount in FY 2017 and in each year thereafter. There will be no impact on county and local expenditures or revenue.

 

METHODOLOGY:

The Liquor Commission states the bill would allow a wine manufacturer to operate two tasting rooms for both samples and retail sales separate from its manufacturing facility.  The Commission states there are 34 licensed wine manufacturers in New Hampshire.  The Commission provides the following information and assumptions concerning the fiscal impact of this bill:

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  • This bill establishes a $420 license fee per tasting location.  There is no revenue to the state from sales at these locations.
  • The State would lose potential profit on each bottle of wine sold at these locations.  The typical mark up on wine is between 35% and 65% with most New Hampshire wines marked up by 45%.
  • In a 12-month period, New Hampshire wineries sold approximately 61,809 bottles of wine through state retail stores and licensees.  The average gross profit per bottle of New Hampshire wine sold during this period was about $4.23.
  • Since the wineries would benefit from selling their wine directly instead of wholesaling it to the Liquor Commission, fewer bottles would be sold to the Commission.
  • The Commission assumes with the passage of this legislation, beer manufacturers, spirits manufacturers and rectifiers may also seek this benefit in the future resulting in further possible reductions to state revenue.
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The Commission states two additional liquor examiners would need to be added to the Division of Enforcement and Licensing.  The Department provides the following operating costs for two Liquor Examiners:

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FY 2017

FY 2018

FY 2019

FY 2020

Liquor Commission Examiner I

$39,293

$41,828

$43,505

$45,377

Benefits

$24,784

$26,554

$28,247

$30,080

Total Salary and Benefits

$64,077

$68,382

$71,752

$75,457

 

Current Expenses

$3,000

$3,000

$3,000

$3,000

Equipment

$28,000

$500

$500

$500

Travel

$5,000

$5,000

$5,000

$5,000

Other: Training and overtime

$3,500

$3,500

$3,500

$3,500

Total Other Expenses

$39,500

$12,000

$12,000

$12,000

 

Cost per Examiner (Rounded)

$104,000

$81,000

$84,000

$88,000

Number of Positions

2

2

2

2

Total Cost

$208,000

$162,000

$168,000

$176,000

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Concerning the sale of liquor and beverages to sports/entertainment complex licensees, the Commission has no way of determining how much additional revenue would be generated.

 

This bill does not make an appropriation or establish new positions.

 

 

None