Bill Text - SB621 (2020)

(New Title) relative to specialty beverages.

Revision: Jan. 14, 2020, 12:32 p.m.

SB 621-FN - AS INTRODUCED

 

 

2020 SESSION

20-2916

08/03

 

SENATE BILL 621-FN

 

AN ACT relative to second-tier beverages.

 

SPONSORS: Sen. French, Dist 7; Sen. Reagan, Dist 17; Sen. Bradley, Dist 3; Sen. Chandley, Dist 11; Sen. Feltes, Dist 15; Rep. Hunt, Ches. 11

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill defines second-tier beverages.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2916

08/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to second-tier beverages.

 

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

 

1  New Paragraph; Second-Tier Beverage.  Amend RSA 175:1 by inserting after paragraph LX-b the following new paragraph:

LX-c.  "Second-tier beverage" means any wine, similar fermented vinous liquors and fruit juices, and any other liquid intended for human consumption as a beverage having an alcoholic content of not less than 6 percent alcohol by volume and not more than 12 percent alcohol by volume at 60 degrees Fahrenheit.   Second-tier beverage may include wine based or spirit based cocktails, infused, single serve, and ready to drink beverages that contain 749 milliliters or less.

2  Beverage Vendors.  Amend RSA 175:1, X to read as follows:

X.  "Beverage vendor" means an individual, partnership, limited liability company, or corporation, including any subsidiaries thereof, which sells beverages and second-tier beverages to wholesale distributors.

3  Additional Fees.  Amend RSA 178:26, I to read as follows:

I.  In addition to the annual license fees provided in this chapter, a fee of $.30 for each gallon of beverage or second-tier beverage sold or transferred for retail sale or to the public shall be required for licenses issued to wholesale distributors, beverage manufacturers, and brew pubs; provided, however, that if beverage container mandatory deposit legislation is enacted, such fee shall be $.18 per gallon as of the effective date of such legislation.  For failure to pay any part of the fees provided or under this section when due, 10 percent of such fees shall be added and collected by the commission from the licensee.

4  Effective Date.  This act shall take effect July 1, 2020.

 

LBAO

20-2916

1/3/20

 

SB 621-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to second-tier beverages.

 

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 Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

 

 

 

 

METHODOLOGY:

This bill defines second-tier beverages.  The Liquor Commission indicates definition of "second-tier beverages" would include certain wines, liquors and other products currently sold by the Commission.  The Commission currently lists over 25,270 spirit and wine codes.  Under this bill approximately 311 products carried by the Commission would be removed from state operated stores and be offered to retailers directly by wholesalers.  Based on actual sales in FY 2019, the Commission estimated the impact on State revenue as follows:

 

  • In FY 2019, the gross revenue for such alcoholic beverages in the range of 6%-12% in containers of 749 ml or less was $4,172,788, of which approximately $1,197,527 or 28.7% is transferred to the General Fund.  Under this bill this revenue would no longer be collected by the Commission.
  • If the additional $0.30 tax was assessed on these products in FY 2019, and these products were offered by wholesalers, revenue would increase by approximately $28,753.  
  • Based on the FY 2019 amounts, the reduction in annual liquor profit transferred to the general fund would be approximately $1,168,774. ((-$1,197,527) + $28,753))  

 

Assuming year over year growth of 3%, the reduction in gross liquor and profits transferred to the general fund would be greater in future years.

 

 

FY 2021

FY 2022

FY 2023

Liquor Revenue

($4,426,911)

($4,559,718)

($4,696,510)

Profit (Assuming 28.7%)

($1,270,523)

($1,308,639)

($1,347,898)

Additional $0.30 tax per gallon

$30,504

$31,419

$32,362

Transfer to General Fund

($1,240,019)

($1,277,220)

($1,315,537)

 

 

AGENCIES CONTACTED:

Liquor Commission