NHLA Bill Review: Bill Text

Bill Text - HB1237 (2022)

Relative to the definition of cigar bar.

Revision: Nov. 18, 2021, 3:15 p.m.

HB 1237-FN - AS INTRODUCED

2022 SESSION

22-2523

08/05

HOUSE BILL 1237-FN

AN ACT relative to cigar bars.

SPONSORS: Rep. Cloutier, Sull. 10; Rep. Stapleton, Sull. 5

COMMITTEE: Commerce and Consumer Affairs

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ANALYSIS

This bill lowers the amount of revenue from cigars required of cigar bars for 2 years.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2523

08/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to cigar bars.

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

1 On-Premises Cigar, Beverage, and Liquor Licenses. Amend RSA 178:20-a, II(a) to read as follows:

(a) Generates [60] 30 percent or more of its quarterly gross revenue from the sale of cigar-related products, which is limited to cigars, humidors, cigar cutters, cigar cases, lighters, and ashtrays. Mail order and Internet sales, as well as revenue generated from other tobacco sales in store, including cigarettes and loose tobacco sales, shall not be used to determine whether an establishment satisfies the definition of a cigar bar.

2 On-Premises Cigar, Beverage, and Liquor Licenses; Effective 2024. Amend RSA 178:20-a, II(a) to read as follows:

(a) Generates [30] 60 percent or more of its quarterly gross revenue from the sale of cigar-related products, which is limited to cigars, humidors, cigar cutters, cigar cases, lighters, and ashtrays. Mail order and Internet sales, as well as revenue generated from other tobacco sales in store, including cigarettes and loose tobacco sales, shall not be used to determine whether an establishment satisfies the definition of a cigar bar.

3 Effective Date.

I. Section 2 of this act shall take effect July 1, 2024.

II. The remainder of this act shall take effect July 1, 2022.

LBA

22-2523

10/28/21

HB 1237-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to cigar bars.

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


	Estimated Increase / (Decrease)
STATE:	FY 2022	FY 2023	FY 2024	FY 2025
Appropriation	$0	$0	$0	$0
Revenue	$0	Indeterminable	Indeterminable	$0
Expenditures	$0	Indeterminable Increase	Indeterminable Increase	$0
Funding Source:	[ X ] General [ ] Education [ ] Highway [ X ] Other - Liquor Fund

METHODOLOGY:

This bill lowers the amount of revenue from cigars required of cigar bars for 2 years.

The New Hampshire Liquor Commission offers the following assumptions concerning the fiscal impact of this bill.

Reducing the percentage of revenue a licensee must generate from cigars would likely increase the number of businesses acquiring this license due to the lowered eligibility standard and possibility of generating more revenue on the sale of liquor.
The additional liquor revenue to the Commission could be offset by increased demands on the enforcement division to monitor the additional licensees.
Reducing the percentage of revenue a licensee must generate from non-premium cigar sales is likely reduce tobacco related tax revenue. Premium cigar sales are tax exempt through DRA.
The Commission anticipates an indeterminate number of licensees will not be able to increase their revenue of cigar related sales back to 60% at the end of the 2-year period. This would result in administrative action against the non-compliant businesses, possible closure of these businesses and a loss of revenue. The Commission is not able to predict how many licenses may become non-compliant as the revenue requirements return to the 60% level.

AGENCIES CONTACTED:

Liquor Commission