SB125 (2021) Detail

Relative to beverage manufacturer licenses.


CHAPTER 180

SB 125-FN - FINAL VERSION

 

03/18/2021   0745s

3Jun2021... 1237h

2021 SESSION

21-0900

08/10

 

SENATE BILL 125-FN

 

AN ACT relative to beverage manufacturer licenses.

 

SPONSORS: Sen. Gannon, Dist 23; Sen. Perkins Kwoka, Dist 21; Sen. Carson, Dist 14; Sen. Rosenwald, Dist 13; Sen. Bradley, Dist 3; Rep. Welch, Rock. 13; Rep. Weyler, Rock. 13

 

COMMITTEE: Commerce

 

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AMENDED ANALYSIS

 

This bill makes changes to the requirements for serving samples for beverage manufacturers and nano breweries; provides for contract brewing arrangements for nano breweries and brew pubs; and requires reports for intrastate direct shippers of alcohol.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/18/2021   0745s

3Jun2021... 1237h 21-0900

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to beverage manufacturer licenses.

 

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

 

180:1  Beverage Manufacturers License.  Amend RSA 178:12, IV(a)(2) to read as follow:

(2) The general public for off-premises consumption [in quantities not to exceed a single 15.5 gallon keg or the equivalent of one case of 12 ounce containers per person per day]; or

180:2  New Paragraphs; Nano Brewer; Contract Brewing.  Amend RSA 178:12-a by inserting after paragraph VIII the following new paragraphs:

IX.  Each nano brewery shall have the right to transport the beverage it manufactures in barrels, kegs, bottles, or other closed containers within the state for sale to licensees and to the state border for transportation and sale outside the state.  A nano brewer in a contract brewing arrangement may transport the beverage produced by the contract brewer in barrels, kegs, bottles, or other closed containers within the state for storage or to the state border for transportation and sale outside the state.

X.  A nano brewer may enter into a contract brewing arrangement with a contract brewer brewing in the state of New Hampshire after the nano brewer has been in operation for one year.  Beverages produced by a contract brewer intended for sale outside the state may be warehoused at the nano brewer's facility or at some other facility accessible only to the nano brewer.  A contract brewer shall not deliver beverages to on-premises and off-premises licensees within the state.  A nano brewer shall file all contract brewing arrangements with the commission. A nano brewer shall not enter into a contract brewing arrangement with a contract brewer if it does not brew at least 10 barrels annually.

XI.  Nano brewers and contract brewers shall be allowed to store beverages manufactured in accordance with the provisions of this title in a storage facility licensed by the commission.  Nano brewers and contract brewers storing beverages in a warehouse licensed under RSA 178:11, or other facility approved by the commissioner for the purpose of storing alcohol, shall keep records of the type, quality, and destination of beverages removed from storage.  Such records shall be retained by the nano brewer or contract brewer using the facility and shall be made available to the commission upon request.  A nano brewer shall not enter into a contract brewing arrangement with a contract brewer if it does not brew at least 10 barrels annually.

XII.  Annual on-site production by a nano brewer shall not be less than their production for the calendar year prior to entering into an arrangement with a contract brewer.  Total production, including tenant and contract brewers, shall be at least 10 barrels and shall not exceed 2,000 barrels annually.

XIII.  The nano brewer shall submit to the liquor commission an annual report of all beverages by:

(a)  The nano brewer on-site.

(b)  Any tenant brewer.

(c)  Any contract brewer the nano brewer has contracted with under paragraph X.

XIV.  All taxes due on product that is made by a contract brewer shall be paid by the nano brewer.

180:3  New Paragraphs; Brew Pub Contract Brewing.  Amend RSA 178:13 by inserting after paragraph VIII the following new paragraphs:

IX.  Each brew pub shall have the right to transport the beverage it manufactures in barrels, kegs, bottles, or other closed containers within the state for sale to licensees and to the state border for transportation and sale outside the state.  A brew pub in a contract brewing arrangement may transport the beverage produced by the contract brewer in barrels, kegs, bottles, or other closed containers within the state for storage or to the state border for transportation and sale outside the state.

X.  A brew pub may enter into a contract brewing arrangement with a contract brewer brewing in the state of New Hampshire after the brew pub has been in operation for one year.  Beverages produced by a contract brewer intended for sale outside the state may be warehoused at the brew pub's facility or at some other facility accessible only to the brew pub.  A contract brewer shall not deliver beverages to on-premises and off-premises licensees within the state.  A brew pub shall file all contract brewing arrangements with the commission.  A brew pub shall not enter into a contract brewing arrangement with a contract brewer if it does not brew at least 10 barrels annually.

XI.  Brew pubs and contract brewers shall be allowed to store beverages manufactured in accordance with the provisions of this title in a storage facility licensed by the commission.  Brew pubs and contract brewers storing beverages in a warehouse licensed under RSA 178:11, or other facility approved by the commissioner for the purpose of storing alcohol, shall keep records of the type, quality and destination of beverages removed from storage.  Such records shall be retained by the brew pub or contract brewer using the facility and shall be made available to the commission upon request.

XII.  Annual on-site production by a brew pub shall not be less than their production for the calendar year prior to entering into an arrangement with a contract brewer.  Total production including tenant and contract brewers, shall be at least 10 barrels and shall not exceed 2,500 barrels annually.

XIII.  The brew pub shall submit to the liquor commission an annual report of all beverages by:

(a)  The brew pub on-site.

(b)  Any tenant brewer.

(c)  Any contract brewer the brew pub has contracted with under paragraph X.

XIV.  All taxes due on product that is made by a contract brewer shall be paid by the brew pub.

180:4  Contract Brewers; Nano Brewers and Brew Pubs Added.  Amend RSA 175:1, XXV-a - XXV-b to read as follows:

XXV-a. "Contract brewer" means a brewery hired by a beverage manufacturer, nano brewery, or brew pub to produce a beverage for the beverage manufacturer.

XXV-b. "Contract brewing arrangement" means a business relationship in which a beverage manufacturer, nano brewery, or brew pub pays another brewer to produce a beverage for the beverage manufacturer, nano brewer, or brew pub for sale.

180:5  New Section; Intrastate Shipment of Beverages; Specialty Beer.  Amend RSA 178 by inserting after section 27-a the following new section:

178:27-b Direct to Consumer Shipments of Alcohol to New Hampshire Residents.

I. Notwithstanding any other provision of law to the contrary, any business licensed under this chapter as a beverage manufacturer, nano brewery, brew pub, wine manufacturer, liquor manufacturer or beverage distributor may apply for a direct to consumer shipping permit from the commission.  The permit shall authorize the holder to sell and deliver alcohol beverages to consumers 21 years of age or older located within the state of New Hampshire and businesses licensed by the commission for on-sale and off-sale of alcoholic beverages. There shall be no fee to obtain a shipping permit under this section.  

II. No liquor manufacturer shall ship more than 60 individual containers of not more than one liter each of liquor to any consumer's address in New Hampshire in any calendar year. No wine manufacturer shall ship more than 12 9-liter cases or equivalent of wine to any consumer's address in New Hampshire in any calendar year.  No beverage manufacturer, nano brewery, brew pub, or beverage distributor shall ship more than 27 gallons of beer, specialty beer or specialty beverage in individual containers of not more than one liter to any consumer's address in New Hampshire in any calendar year. Beer, specialty beer and specialty beverages delivered to New Hampshire consumers under this section shall not exceed 8 percent alcohol by volume.

III. A manufacturer holding a direct to consumer shipping permit may ship directly to New Hampshire consumers over 21 years of age or licensees in packages clearly marked "Alcoholic Beverages, adult signature (over 21 years of age) required.'' All shipments from direct to consumer shippers shall be made by a licensed carrier as defined in RSA 178:14 and such carriers are required to obtain an adult signature. Direct to consumer permittees or carriers shall not ship into areas of the state where alcohol beverages may not be lawfully sold. Shipments of any other products shall be considered unlicensed shipments under the provisions of RSA 178:1, I.

IV.(a) Direct to consumer shipping permittees shall file reports to the commission. Such reports shall be filed once per month for any month in which a shipment was made in a manner and form required by the commission and include the following information:

(1) The total amount of alcoholic beverages shipped within the state for the preceding month.

(2) The names and addresses of the purchasers to whom the alcoholic beverages were shipped.

(3) The date of purchase, if appropriate, the name of the common carrier used to make each delivery, and the quantity and retail value of each shipment.

(b) The commission may assess a $250 penalty for each failure to report to the commission in a timely manner.

(c) Direct to consumer shipping permittees shall maintain records for at least 3 years which will permit the commission to ascertain the truthfulness of the information filed and permit the commission to perform an audit of the beverage manufacturer, nano brewery, brew pub, wine manufacturer or liquor manufacturer.

V. The liquor commission shall adopt rules, pursuant to RSA 541-A, relative to:

(a) The application procedures and form for the direct to consumer shipping permit authorized under paragraph I.

(b) The signature form or other identification procedures to be used by direct to consumer shipping permittee to ensure that consumers to which alcoholic beverages are being shipped are over 21 years of age.

(c) Filings of intrastate direct shippers under paragraph III.

VI. Violations of this section shall be subject to the penalties contained in RSA 179:58.

180:6  New Paragraph; Beverage Manufacturer Licenses.  Amend RSA 178:12 by inserting after paragraph II-a the following new paragraph:

II-b.  Each beverage manufacturer shall have the right to manufacture beverages and specialty beer as defined by RSA 175:1 at the beverage manufacturer's New Hampshire licensed premises, to sell those beverages and specialty beers to New Hampshire wholesalers and at one beverage manufacturer retail outlet as defined in RSA 175:1, IX-a, in quantities provided by statute, and transport said beverages and specialty beer to the state line.  The beverage manufacturer shall pay an annual fee of $336 to the commission for the beverage manufacturer retail outlet.  The beverage manufacturer may transport beverages it manufactures to its beverage manufacturer retail outlet for sample or sale.  Visitors of legal drinking age at the beverage manufacturer retail outlet may be provided with samples of beverages manufactured by the licensee in this state for tasting.  A beverage manufacturer may either provide samples for free or for a fee which shall be limited to one 4-ounce sample per label or one 16-ounce glass per person.  At such times as food is available, a beverage manufacturer may serve no more than one additional 16-ounce glasses per person in any areas approved by the commission.  For the purpose of this section, food and non-alcoholic beverages may be provided by a properly-licensed third party food vendor, prepared on or off the premises.

180:7  New Paragraph; Definition; Beverage Manufacturer Retail Outlet.  Amend RSA 175:1 by inserting after paragraph IX the following new paragraph:

IX-a.  “Beverage manufacturer retail outlet” means an outlet for the sale, sampling, production or manufacturing and promotion of beverages and other products manufactured by a beverage manufacturer licensee.

180:8  New Paragraph; Direct to Consumer Shipping Permit.  Amend RSA 178:14 by inserting after paragraph III the following new paragraph:

IV.  A licensed carrier shall authorize the licensee to pick up, transport, and deliver beer and alcoholic beverages from a business holding a direct to consumer shipping permit as provided in RSA 178:27-b.

180:9  Beverage; Definition.  Amend RSA 175:1, VIII to read as follows:

VIII.  "Beverage" means any beer, wine, similar fermented malt or vinous liquors and fruit juices, and any other liquid intended for human consumption as a beverage having an alcoholic content of not less than 1/2 of one percent by volume and not more than 6 percent alcohol by volume at 60 degrees Fahrenheit and specialty beer as defined in RSA 175:1, LXIV-a.  The commission may approve any fermented malt beverage, other similar fermented and brewed beverage, or mead greater than 6 percent but not to exceed 8 percent or any cider greater than 6 percent or any specialty cider greater than 8 percent and not to exceed 12 percent alcohol by volume at 60 degrees Fahrenheit.  A beverage shall not be considered a product classified by the commission as a domestic wine as defined in RSA 175:1, LXVII, or a table wine as defined in RSA 175:1, LXIX, or a fortified wine as defined in RSA 175:1.

180:10  Nano Brewery; Samples.  RSA 178:12-a, II(e) is repealed and reenacted to read as follows:

(e)  A nano brewery may either provide samples for free or for a fee which shall be limited to one, 4-ounce glass per label or one 16-ounce glass per person.  At such times as food is available, a nano brewery may serve no more than 2, 16-ounce glasses per person in any areas approved by the commission.  For the purpose of this section, food and non-alcoholic beverages may be provided by properly licensed third-party food vendors, prepared on or off the premises.

180:11  Direct Shippers.  Amend RSA 178:27, IV to read as follows:

IV.  No direct shipper shall ship more than 27 gallons of beer or beverage in individual containers of not more than one liter to any [consumer's address] licensee or consumer in New Hampshire in any calendar year.  [No direct shipper shall ship beer or beverage to a New Hampshire licensee.]

180:12  Effective Date.  This act shall take effect July 1, 2021.

 

Approved: August 06, 2021

Effective Date: July 01, 2021

 

 

Links

SB125 at GenCourtMobile
SB125 Discussion

Action Dates

Date Body Type
Feb. 16, 2021 Senate Hearing
March 18, 2021 Senate Floor Vote
April 27, 2021 House Hearing
May 4, 2021 House Hearing
May 13, 2021 House Exec Session
House Floor Vote

Bill Text Revisions

SB125 Revision: 32881 Date: Aug. 9, 2021, 10:11 a.m.
SB125 Revision: 32709 Date: June 10, 2021, 2:11 p.m.
SB125 Revision: 32592 Date: June 3, 2021, 11:57 a.m.
SB125 Revision: 32184 Date: March 29, 2021, 10:08 a.m.
SB125 Revision: 32066 Date: Feb. 3, 2021, 11:41 a.m.

Docket


Aug. 6, 2021: Signed by the Governor on 08/06/2021; Chapter 0180; Effective 07/01/2021


June 24, 2021: Enrolled Adopted, VV, (In recess 06/24/2021); SJ 20


June 24, 2021: Enrolled (in recess of) 06/24/2021


June 10, 2021: Sen. French Moved to Concur with the House Amendment, MA, VV; 06/10/2021; SJ 19


June 3, 2021: Ought to Pass with Amendment 2021-1237h: MA DV 238-134 06/03/2021 HJ 8 P. 88


June 3, 2021: Amendment # 2021-1237h: AA VV 06/03/2021 HJ 8 P. 88


: Minority Committee Report: Inexpedient to Legislate


: Majority Committee Report: Ought to Pass with Amendment # 2021-1237h (Vote 13-6; RC) HC 26 P. 16


May 13, 2021: Executive Session: 05/13/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/93883325643


May 4, 2021: Public Hearing on non-germane Amendment # 2021-1237h: 05/04/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/93919075701


April 27, 2021: Public Hearing: 04/27/2021 11:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/96624100489 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Feb. 25, 2021: Introduced (in recess of) 02/25/2021 and referred to Commerce and Consumer Affairs HJ 4 P. 50


March 18, 2021: Ought to Pass with Amendment 2021-0745s, RC 23Y-1N, MA; OT3rdg; 03/18/2021; SJ 8


March 18, 2021: Committee Amendment # 2021-0745s, RC 23Y-1N, AA; 03/18/2021; SJ 8


March 18, 2021: Committee Report: Ought to Pass with Amendment # 2021-0745s, 03/18/2021; Vote 5-0; CC; SC 15


Feb. 16, 2021: Remote Hearing: 02/16/2021, 09:15 am; Links to join the hearing can be found in the Senate Calendar; SC 11


Jan. 6, 2021: Introduced 01/06/2021 and Referred to Commerce; SJ 3