Revision: Feb. 16, 2021, 9:07 a.m.
Sen. Gannon, Dist 23
February 16, 2021
2021-0358s
08/10
Amendment to SB 125-FN
Amend the bill by replacing all after the enacting clause with the following:
1 Beverage Manufacturers License. Amend RSA 178:12 to read as follows:
178:12 Beverage Manufacturer License.
I. Beverage manufacturer licenses shall authorize the licensee to manufacture beverages and specialty beverages within the state and to sell the beverages manufactured to retail and/or wholesale distributors.
II. The holder of a beverage manufacturer license may be issued one on-premises license for the manufacturer's premises, providing all requirements of the license are fulfilled. The annual fee for each license issued under this section shall be as required under RSA 178:29.
II-a. The holder of a beverage manufacturer license may sell or provide 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.
II-b. In this section “food” means any raw, cooked, or processed edible substance, ice, beverage, or ingredient used or intended for use or for sale in whole or in part for human consumption. A beverage manufacturer may serve food provided by a licensed food service establishment.
II-c. Any beverage manufacturer licensee meeting and maintaining the requirements of a restaurant under RSA 178:20, except the requirement of RSA 178:20, IV, and paying an additional fee of $240, 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 unless a full restaurant license is obtained.
(b) The licensee may serve beverages to any visitor of legal drinking age by the glass or other suitable container.
(c) 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.
II-d. Each beverage manufacturer shall have the right to sell at retail or wholesale at its facility, and retail at one beverage manufacturer retail outlet, for off-premises consumption of any of its beverages, specialty beers and/or specialty beverages. The beverage manufacturer shall pay an annual fee of $216 to the commission for the beverage manufacturer retail outlet. The beverage manufacturer may transport beverages, specialty beers and/or specialty beverages it manufactures to its beverage manufacturer retail outlet for sample or sale. Visitors of legal drinking age at the manufacturing location or beverage manufacturer retail outlet may be provided with samples of beverages, specialty beers and/or specialty 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 2 16-ounce glasses per person, unless food is provided. At such times as food is available, a beverage manufacturer may serve 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 any quantity [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.
V. Beverage manufacturers shall pay a fee as required by RSA 178:26 for each gallon of beverage sold or provided under paragraphs III, IV, and IV-a.
VI. The holder of a beverage manufacturer license may sell beverages manufactured on its premises or manufactured by the licensee at a host brewer facility at retail to New Hampshire wholesalers, subject to the conditions of RSA 180.
VII. Beverage manufacturers may hire representatives to promote their products, who shall carry a copy of the beverage manufacturer's license and a letter authorizing them to conduct business for the manufacturer on their person at all times when conducting the beverage manufacturer's business.
VIII. Each beverage manufacturer 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 beverage manufacturer 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.
IX. The holder of a beverage manufacturer license may act as a host brewer for one or more tenant brewers licensed under RSA 178:12-b.
X. The holder of a beverage manufacturer license may be issued a tenant brewer license under RSA 178:12-b if the licensee meets the requirements of RSA 178:12-b. Beer or specialty beer produced or packaged by a beverage manufacturer as a tenant brewer at a host brewer facility shall be included in the production and sales limits in subparagraph IV(b).
XI. A beverage manufacturer or brew pub may enter into a contract brewing arrangement with a [contract brewer] beverage manufacturer who shall become a contract brewer. Beverages produced by a contract brewer intended for sale inside or outside the state may be warehoused at the beverage manufacturer's facility or at some other facility accessible only to the beverage manufacturer. A contract brewer shall not deliver beverages to on-premises and off-premises licensees within the state. A contract brewer shall file all contract brewing arrangements with the commission.
XII. Beverage manufacturers, tenant 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. Beverage manufacturers, tenant 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 beverage manufacturer, tenant brewer, or contract brewer using the facility and shall be made available to the commission upon request.
XIII. The holder of a beverage manufacturer's license may produce a "specialty cider" as defined in RSA 175:1, LXIV-aa. Such specialty cider may be produced and sold not more than twice in any licensing year. A beverage manufacturer that chooses to manufacture a specialty cider shall:
(a) Provide 30 days advanced notice to the commission of the intent to produce a specialty cider.
(b) Provide the commission with an estimated quantity of specialty cider to be produced and shall report to the commission the production of specialty cider separately from other beverages produced.
(c) Not produce more than 1,000 cases holding 24 12-ounce containers, or the equivalent, in a licensing year.
(d) Notify the commission after the production of specialty cider has ended during a licensing
year.
XIV. For an additional annual fee of $120, any beverage manufacturer may transport its products to a wine manufacturer's facility licensed under RSA 178:8, for the purpose of sampling or selling its products. Samples may be sold or given away. Retail sales made at the wine manufacturer's facility shall be limited to products in their unopened original containers and to customers and persons of legal drinking age. Beverage manufacturers shall be subject to the following additional limitations under this section:
(a) Beverage manufacturer licensees shall be limited to one sampling event per day.
(b) Sampling and sales of the beverage manufacturer licensee's products shall conform to the normal business hours of the winery licensee.
(c) Sample sizes shall be limited to one 16-ounce glass per person if no food is available and 2 16-ounce glasses if food is available.
(d) Beverage manufacturer licensee products brought to a sampling event shall be brought to the wine manufacturer's facility on the day of the event and all such products shall be removed at the end of the event.
(e) Beverage manufacturer licensees shall notify the commission of date, times, and location of each sampling event not less than 5 days before each event.
XV. Any beverage manufacturer or brew pub licensee shall have the right to ship their products directly to consumers of legal age within the state of New Hampshire.
(a) These orders may be accepted by mail, telephone, Internet or any other electronic means.
(b) All shipments directly to New Hampshire consumers must be in packages clearly marked “Alcoholic Beverages adult signature (over 21 years of age) required.” All shipments shall be made by a licensed carrier and such carriers are required to obtain an adult signature. Carriers shall not ship into areas of the state where alcohol beverages may not be lawfully sold.
2 Fees; Beverage Manufacturers. Amend RSA 178:29, III(a) to read as follows:
(a) Beverage manufacturer license:
(1) Domestic sales under 500 barrels per year, $240.
(2) Domestic sales of 501 to 2500 barrels per year, $480.
(3) Domestic sales of 2,501 to 15,000 barrels or less per year, $1,200;
[(2)] (4) Domestic sales of more than 15,000 barrels per year, $1,692.
3 Contract Brewer; Definition. Amend RSA 175:1, XXV-a - XXV-b to read as follows:
XXV-a. "Contract brewer" means a [brewery] beverage manufacturer hired by a beverage manufacturer or brew pub to produce a beverage for the beverage manufacturer or brew pub.
XXV-b. "Contract brewing arrangement" means a business relationship in which a beverage manufacturer or brew pub pays another [brewer] beverage manufacturer to produce a beverage for the beverage manufacturer or brew pub for sale.
4 Limited Credits; Nano Brewery; Cross References Removed. Amend RSA 179:13 to read as follows:
179:13 Limited Credits.
I. Each holder of a wholesale distributor, brew pub, [nano brewery,] or beverage manufacturer license shall report to the commission the name and license number of any on-premises or off-premises licensee who is delinquent in making payment of accounts over a total of $100 within 10 days, including Sundays and holidays, from the date of delivery of beverages on the premises of such on-premises or off-premises licensee or on the premises of a liquor/wine/beverage warehouser storing the beverages for an on-premises or off-premises licensee. Each holder of a wholesale distributor license, brew pub license, [nano brewery license,] beverage manufacturer license, or beverage vendor license shall report to the commission the name and license number of any holder of a wholesale distributor license who is delinquent in making payments of accounts within 30 days from the date of delivery of beverages on the premises of such holder of a wholesale distributor license. Such report to the commission shall include the amounts purchased and the dates when payments were due and shall be forwarded to the commission within 5 days after said accounts become delinquent, unless the fifth day of such period is a Sunday or holiday in which case the report shall be forwarded the day following such Sunday or holiday.
II. Each holder of a beverage manufacturer license, beverage vendor license, brew pub license, [nano brewery license,] or wholesale distributor license shall immediately notify the commission of the receipt of the payment of any account which has been reported to the commission as delinquent. Post-dated checks beyond the 5-day reporting period shall not constitute payments of accounts for the purchases of beverages. Checks given in payment for beverages which are returned for nonpayment after the 5-day reporting period shall immediately constitute a delinquency and shall, upon return, be reported to the commission. Payments collected by agents shall be reported as delinquent unless actually received at the place of business of the holder of the beverage manufacturer license, beverage vendor license, brew pub license, [nano brewery license,] or wholesale distributor license on or before the fifth day of the reporting period. When collections are made by an agent, the sales slips or invoices shall be clearly marked with the name of the person making the collection and the date of such collection. Nothing in this section shall prohibit a licensee from making a payment by credit card, debit card, or other acceptable commercial means. Holders of a beverage manufacturer license, beverage vendor license, brew pub license, [nano brewery license,] or wholesale distributor license may add a transactional fee to the delinquent account when accepting a payment method that incurs a transactional fee. Nothing in this section shall require a beverage manufacturer licensee, beverage vendor licensee, brew pub licensee, [nano brewery licensee,] or wholesale distributor licensee to accept a credit card, debit card, or other acceptable commercial means.
III. The commission shall inform holders of beverage manufacturer licenses, beverage vendor licenses, brew pub licenses, [nano brewery licenses,] and wholesale distributor licenses of the names of licensees who are delinquent in making payments of a total amount of $100 or more under the provisions of this section and no holder of a beverage manufacturer license, beverage vendor license, brew pub license, [nano brewery license,] or wholesale distributor license shall knowingly make any delivery of beverages to any licensee whose payments for purchases of beverages are reported as delinquent under this section. The commission may withhold names of delinquent licensees under circumstances in which there is a dispute over payments, an agreement to liquidate which has been approved by the commission, or other reason which the commission may deem proper.
IV. The commission may impose a fine of not less than $100 nor more than $500 for a violation of this section. Determinations of a failure to comply with this section shall be made by the commission.
V. Each wholesale distributor, brew pub licensee, [nano brewery,] or beverage manufacturer shall notify any retailer reported to the commission pursuant to RSA 179:13, I who is delinquent in making payment of accounts. Notification shall be delivered in writing to the licensee by a representative of the wholesaler, brew pub licensee, [nano brewery,] or beverage manufacturer. Proof of notification shall be forwarded to the commission, whose enforcement division shall issue an administrative notice for a violation of the provisions of RSA 179:13, I and shall forward a report of violation for administrative action. Any license issued to any business violating the provisions of RSA 179:13, I may be suspended by the commission for nonpayment of accounts which are delinquent more than 15 days from the date of the wholesale distributor's, brew pub licensee's, [nano brewery's,] or beverage manufacturer's notification, providing the requirements of this section have been met.
5 Size of Beer Containers; Nano Breweries; Cross References Removed. Amend RSA 179:33 to read as follows:
179:33 Sizes of Beer Containers; Promotions; Notification.
I. Holders of beverage vendor, brew pub, [nano brewery,] or beverage manufacturer licenses shall have their packaging or containers specifically approved by the commission and shall be fined $250 for each packaging or container violation. Container and packaging approval shall not require delivery of a physical sample unless the commission determines a physical sample is necessary for approval.
II. All details of transactions between retailers and wholesale distributors, beverage manufacturers, [nano breweries,] or brew pubs shall be reflected on pertinent invoices. Promotions shall be clearly identified by both brands and sizes and cash discounts shall be shown as credit and itemized as such. All items noted on delivery slips shall also be noted on wholesale distributor's account receivable ledger records.
III. All wholesale distributors, beverage manufacturers, [nano breweries,] and brew pubs shall make their current prices for wholesale sales available to the commission in writing by brand package. Prices shall remain in effect until such time as they are changed in writing by the wholesale distributor, beverage manufacturer, [nano brewery,] or brew pub to the commission. Price changes shall be in the commission offices no later than 5 working days prior to any change of prices.
IV. The liquor commission shall not, by rule or otherwise, require a beverage vendor, beverage manufacturer, [nano brewery,] or brew pub to obtain federal label approval for beverage, as defined in RSA 175:1, VIII, sold exclusively in the state of New Hampshire.
6 Free Drinks; Nano Breweries; Cross Reference Removed. Amend RSA 179:44, II-a to read as follows:
II-a. Notwithstanding paragraph I, wine manufacturers, beverage manufacturers, [nano breweries,] and brew pubs may provide samples for tasting to persons of legal drinking age at a farmers' market provided they have received written authorization by the town or city's governing body, which authorization shall remain effective until revoked in writing, and they have provided the commission with a copy of that authorization. Provision of samples shall be restricted to clearly defined areas approved by the commission. Samples shall be limited to one 4-ounce sample per label per person for any beer, specialty beer, or cider, and one 2-ounce sample per label per person for any wine.
7 Definitions; Nano Breweries; Cross Reference Removed. Amend RSA 175:1, LXVI to read as follows:
LXVI. "Wholesale distributor" means a person licensed by the commission to engage in the purchase of beverages only from the holders of wholesale distributor licenses, beverage manufacturer licenses, beverage vendor licenses, or brew pub licenses, [or nano brewery licenses]. Wholesale distributors may resell, to other licensees, beverages in their original containers, as prepared for the market by the manufacturer, but not for consumption, except for tasting on the premises of the wholesaler.
8 Repeal. The following are repealed:
I. RSA 178:12-a, relative to nano brewery license.
II. RSA 178:8, VIII, relative to enabling wine manufacturers to transport products to a nano brewer for sale.
9 Effective Date. This act shall take effect July 1, 2021.
2021-0358s
AMENDED ANALYSIS
This bill:
I. Makes changes to the requirements for serving samples for beverage manufacturers.
II. Repeals the provisions regarding nano breweries, creating a class of small beverage manufacturers.