Bill Text - HB1398 (2020)

Establishing a special license for restaurants allowing certain restaurants to sell liquor.


Revision: Dec. 2, 2019, 3:49 p.m.

HB 1398-FN-A - AS INTRODUCED

 

 

2020 SESSION

20-2136

08/04

 

HOUSE BILL 1398-FN-A

 

AN ACT establishing a special license for restaurants allowing certain restaurants to sell liquor.

 

SPONSORS: Rep. Ulery, Hills. 37; Rep. T. Lekas, Hills. 37

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill allows a restaurant holding a beverage and wine license to sell liquor under certain circumstances.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2136

08/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT establishing a special license for restaurants allowing certain restaurants to sell liquor.

 

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

 

1  New Paragraph; On-Premises Beverage and Wine License; Special License for Liquor.  Amend RSA 178:20 by inserting after paragraph V the following new paragraph:

VI.  For an additional fee of $50, the commission may issue a special license to a restaurant to sell any type of liquor so long as the following conditions are met:

(a)  The restaurant is open at least 8 hours a day;

(b)  The restaurant serves liquor only between the hours of 10:00 a.m. and 2:00 p.m.; and

(c)  The restaurant is licensed as a food service establishment.

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

 

LBAO

20-2136

11/4/19

 

HB 1398-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing a special license for restaurants allowing certain restaurants to sell liquor.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Liquor Fund

 

 

 

 

 

METHODOLOGY:

This bill would allow a restaurant holding a beverage and wine license to sell liquor under certain circumstances.  The Liquor Commission indicates businesses currently holding an on-premise beverage and wine license under RSA 178:20 may sell beverages ranging from .05% to 24% alcohol by volume (ABV).  This bill would allow a licensed food establishment, open at least 8 hours a day and holding a beverage and wine a license, to obtain a special license for $50 in order to sell alcohol in excess of 48 proof (24%ABV) between the hours of 10:00 a.m. and 2:00 p.m.  There are currently 398 businesses licensed under RSA 178:20; if all obtained the new special license, annual liquor revenue would increase by $19,900 ($50 X 398).  The Commission assumes about half, or 200 businesses might acquire the new license resulting in additional annual license revenue of $10,000.  It is unknown how much additional sales revenue would result from these businesses purchasing products they were previously not eligible to sell.  

 

The Commission reports businesses currently selling liquor and licensed under RSA 178:21 or 178:22 have stricter food service requirements than holders of a beverage and wine license under RSA 178:20.  These licensees pay an annual fee of $840.  The Commission anticipates most eligible on-premise beverage and wine license licensees will choose to acquire the special license and pay $530, (current fee of $480 plus $50 for the proposed license) rather than upgrade to the on-premise beverage/wine/liquor license at a cost of $840.  In addition, the Commission assumes a certain number of existing on-premise beverage and liquor licensees will choose not to renew their license for $840 and opt instead to purchase a license under RSA 178:20 and the proposed special license.  This will result in a revenue decrease of $310 per license obtained under RSA 178:20 and not under RSA 178:21 or RSA 178:22. The Commissioner expects there would be additional costs associated with enforcement and administration, but not to the extent that the Commission would require additional staff.

 

AGENCIES CONTACTED:

New Hampshire Liquor Commission