Revision: Feb. 3, 2021, 11:41 a.m.
SB 125-FN - AS INTRODUCED
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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ANALYSIS
This bill makes changes to the requirements for serving samples for beverage manufacturers and nano breweries.
This bill also allows wholesale distributors to sell specialty cider.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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:
1 Beverage Manufacturers License. Amend RSA 178:12, II-a-IV to read as follows:
II-a. The holder of a beverage manufacturer license may sell beverage samples to visitors of legal drinking age for consumption on the premises where the beverages were manufactured. A beverage manufacturer may either provide samples for free or for a fee which shall be limited to one 4-ounce glass per label or [one] 2 16-ounce [glass] glasses per person, unless food is provided, which may be consumed[. At such times as food is available, a beverage manufacturer 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 a properly-licensed [third party] food vendor, prepared on or off the premises.
III. The holder of a beverage manufacturer license may operate a hospitality room on the premises [in which the licensee may make available to employees and visitors of legal drinking age for on-premises consumption free of charge samples of beverages manufactured or distributed in the United States by the beverage manufacturer]. The hospitality room shall require commission approval in respect to its location, service facilities, and seating arrangements.
IV.(a) The holder of a beverage manufacturer license may sell beverages manufactured on its premises or manufactured by the licensee at a host brewer facility to:
(1) The licensee's employees who are of legal drinking age at such discounts as are customary in the business;
(2) The general public for on-premises or 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
(b) A holder of a beverage manufacturer license who manufactures 15,000 barrels or less during its licensing period may elect to distribute its beverages directly to retail licensees and/or to distribute its beverages pursuant to RSA 180, provided that total in-state direct retail sales do not exceed 5,000 barrels.
2 Nano Brewery License. Amend RSA 178:12-a, II to read as follows:
II. The annual fee for each license issued under this section shall be $240. Except for licensees under paragraph VII, licensees shall comply with the following:
(a) No beverage or liquor shall be served or consumed on the premises except that which is manufactured by the licensee on the premises or manufactured by the licensee at a host brewer facility.
(b) The licensee may serve beverages to any visitor of legal drinking age by the glass or other suitable container.
(c) 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.
(d) The licensee shall not allow any beverage or liquor to be served or sold to any person under the age of 21 on the premises.
[(e) Sales for consumption on the premises shall be limited to one 4-ounce glass per label per person. ]
3 Nano Brewery License. Amend RSA 178:12-a, VIII(c) to read as follows:
(c) Sample sizes shall be limited to 2 16-ounce [glass] glasses per person if no food is available[ and 2 16-ounce glasses if food is available].
4 Brew Pub License. Amend RSA 178:13, I to read as follows:
I. A brew pub license shall authorize the licensee to manufacture beer or cider in quantities not to exceed 2,500 barrels annually [primarily for consumption on the licensed premises].
5 Wholesale Distributor Licenses. Amend RSA 178:16, I to read as follows:
I. Wholesale distributor licenses shall authorize the licensees to sell beverages in barrels, bottles, or other closed containers and specialty beverages in single serve containers to licensees for resale or to the general public. A wholesale distributor shall provide to an on-premises or off-premises licensee any obtainable beverage, specialty beverage, beer, specialty beer, specialty cider, or cider. Requested products shall be priced subject to special order terms as agreed by all parties. The holder of a wholesale distributor license shall maintain a regular place of business in this state.
6 Effective Date. This act shall take effect July 1, 2021.
21-0900
1/29/21
SB 125-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to beverage manufacturer licenses.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - Liquor Fund | |||
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METHODOLOGY:
This bill makes changes to the requirements for serving samples for beverage manufacturers and nano breweries. The bill also allows wholesale distributors to sell specialty cider.
The Liquor Commission indicates the proposed change to the beverage manufacturers license in RSA 178:12 would make changes to all three of the license types where the licensee is authorized to manufacture beverages and beer. Currently beverage manufacturers are authorized to create hospitality rooms where visitors to the facility are able to sample the manufacturer’s products. This bill would change the character of a hospitality room from a place where they may sample products to a place where the visitor could consume 2, 16 oz. glasses of beverages rather than being limited to 4 oz. samples. Under the current law a beverage licensee may apply for a separate retail license for their premise where customers and visitors may enjoy the manufacturer’s products with food prepared and sold by the manufacturer. The bill would allow visitors to consume an unlimited quantity of beverages as long as “food is provided.” The bill would allow a third party to prepare and bring food to the manufacturer’s facility as substitute for the licensee’s preparation and service of food. The Commission states the effect of this change would be to no longer offer the manufacturer a second retail license as authorized in current statute. The Commission anticipates beverage manufacturer’s holding a second retail license would now give up the second license which would result in a decrease in licensing revenue. As an example, the Commission reports manufacturers, such as Anheuser Busch sampling in their hospitality room, would no longer be able to sample products brewed from their other breweries. This would affect beer tax revenue if manufacturers could only sample beers they brew on site. The Commission estimates the decrease would be approximately $350.00 per month for this manufacturer. In addition, the Commission states the bill also removes limitations agreed to by the beverage manufacturers to limit the quantity of beverages available to the visiting public and where these beverages may be consumed by allowing the unlimited retail purchase of beer from the manufacturer and allow the purchaser to consume the beverages on the licensee’s premises. The Commission states this would blur the licensee’s responsibility under State law and it appears that a manufacturer may have no legal jeopardy under RSA 179:5. The change would allow the manufacturer to obtain an on-premise license without purchasing it or complying with the existing requirements for on premise applicants. The Commission indicates 13 of the 41 beverage manufactures hold a restaurants license. The licenses held by these manufacturers include:
If these manufacturers surrendered these licenses as a result of this legislation the decrease in license revenue collected by the Commission would be $9,240.
Regarding the proposed changes to RSA 178:12 concerning the Nano Brewery License, the Commission indicates under current law, a nano brewer is able to acquire an additional on premise license for a fee of $240. The additional license permits the brewer to serve customers full glasses of beverages they produce as long as the licensee had food available. (A nano brewer holding an additional restaurant license is often referred to as a “Nano Plus” licensee.) There is nothing in current law that forbids a nano brewer from allowing a 3rd party to provide food, but the licensee is still required to have their own food available. The proposed change would no longer require a Nano Brewery holding a restaurant license (Nano Plus) to have responsibility or capacity to prepare and serve food. If this portion of the bill were to become law nano brewers would have no reason to purchase a license under RSA 178:20 as they would not be required to be able to sell food prepared on their premise but allow a 3rd party to provide the food made available to customers. The Commission assumes, if this section of the bill were to pass nano brewers would no longer purchase the additional license if they desired to serve more than samples. The result would be a decrease in licensing revenue and the Nano Brewery would essentially become a bar. Under current law Nano Brewers may transport their products to the site of a wine manufacturer, sample products in 4 oz. sizes, and sell the wine manufacturer’s customers New Hampshire brewed products in their original sealed containers. This bill would eliminate the 4 ounce limitation and allow tasters to consume 2, 16 oz. beers without any requirement of the availability of food. The Commission reports there are 36 Nano Breweries in the state and 24 of them hold a restaurants license. If, as a result of this change, these businesses surrendered their Nano Brewery License there would be a decrease in revenue of $5,760. (24 x $240= $5,760).
Regarding the changes to the Brew Pub License in section 4 of the bill, the Commission indicates, unlike the Beverage Manufacturer and Nano Brewery where the primary focus of the business is the production of beverages, the Brew Pub license was established to allow a restaurant to brew beer primarily for the consumption and enjoyment of their restaurant customers. The Commission indicates this proposed change would have no fiscal impact.
AGENCIES CONTACTED:
Liquor Commission