Revision: March 20, 2024, 4:49 p.m.
Rep. Hunt, Ches. 14
March 11, 2024
2024-1072h
08/05
Amendment to HB 1358
Amend the title of the bill by replacing it with the following:
AN ACT relative to tenant and contract manufacturers of beer, wine, and liquor.
Amend the bill by replacing all after the enacting clause with the following:
1 Contract Brewer; Definitions. RSA 175:1, XXV-a and XXV-b is repealed and reenacted to read as follows:
XXV-a. "Contract brewer" means a beverage manufacturer, hired to produce a beverage on the behalf of another beverage manufacturer, nano brewery, or brewpub, licensed by the commission or holding a license to manufacture a beverage issued by another state.
XXV-b. "Contract brewing arrangement" means a business relationship in which a beverage manufacturer is hired to produce a beverage on the behalf of another beverage manufacturer, nano brewery, or brewpub, licensed by the commission or holding a license to manufacture a beverage issued by another state.
2 New Paragraphs; Contract Wine Manufacturer; Contract Liquor Manufacturer; Definitions. Amend RSA 175:1 by inserting after paragraph XXV-b the following new paragraphs:
XXV-c. “Contract wine manufacturer” means a wine manufacturer, hired to produce a wine on the behalf of another wine manufacturer, licensed by the commission or holding a license to manufacture wine issued by another state.
XXV-d. "Contract wine arrangement" means a relationship in which a wine manufacturer is hired to produce a wine on the behalf of another wine manufacturer, licensed by the commission or holding a license to manufacture wine issued by another state.
XXV-e. “Contract liquor manufacturer” means a liquor manufacturer, hired to produce a liquor on the behalf of another liquor manufacturer, licensed by the commission or holding a license to manufacture liquor issued by another state.
XXV-f. "Contract liquor arrangement" means a business relationship in which a liquor manufacturer is hired to produce a liquor on the behalf of another liquor manufacturer, licensed by the commission or holding a license to manufacture liquor issued by another state.
3 Host Manufacturer; Definitions. RSA 175:1, XXXVI-b is repealed and reenacted to read as follows:
XXXVI-b. "Host manufacturer" means a beverage manufacturer, wine manufacturer, or liquor manufacturer facility involved in a host-tenant relationship. In this relationship, the tenant party holds a tenant manufacturer license under RSA 178:12-b; 178:8-a or 178:6-a, allowing them to produce or package beverages, wine, or liquor as permitted by their specific license type on the premises of the host manufacturer.
4 Tenant Manufacturer; Definition. RSA 175:1, LXIV-cc is repealed and reenacted to read as follows:
LXIV-cc. "Tenant manufacturer" means a person who has a permit or notice approved by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau allowing the person to engage in an alternating proprietorship.
5 Tenant Manufacturing License; Brewer Option. RSA 178:12-b is repealed and reenacted to read as follows:
178:12-b Tenant Brewer Manufacturing License; Brewer Option.
I. A holder of a tenant manufacturer license may manufacture and/ or package alcoholic beverages on the premises of a host manufacturer, and shall be consistent with all terms and conditions contained in Title XIII for their license type.
II. A holder of a tenant manufacturer license may transport in bulk alcoholic beverages produced on the Tenant's premises to a host manufacturer for the purpose of packaging alcoholic beverages on the host manufacturer's premises.
III. To be eligible for a tenant manufacturer license, the applicant shall have all applicable licenses or permits required by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau allowing the person to use the facilities, equipment, and employees of a host manufacturer.
IV. A tenant manufacturer shall be subject to the same requirements regarding production of alcoholic beverages as if the manufacturer conducted its manufacturing on its own premises independently.
V. The commission may require a tenant brewer manufacturer to maintain a record or log indicating which equipment is being used at any time by the tenant brewer manufacturer in the production of alcoholic beverages and which employees are working on production of the tenant brewer manufacturer's product.
VI. A tenant manufacturer is subject to the same reporting requirements as a beverage manufacturer, wine manufacturer, and liquor manufacturer as required by their New Hampshire manufacturer's license.
VII. A tenant manufacturer license shall have the right to transport beverages 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.
VIII. The annual fee for each license issued under this section shall be $240.
6 New Paragraphs; Wine Manufacturer License; Tenant Option. Amend RSA 178:8 by inserting after paragraph VIII the following new paragraphs:
IX. A wine manufacture licensee may be issued a tenant wine manufacturer license under RSA 178:8-a if the licensee meets the requirements of RSA 178:8-a. Wines produced or packaged by a wine manufacturer licensee as a tenant wine manufacturer at a host manufacturers’ facility shall be included in the production reports submitted to the commission. No alcohol may be sold by the wine manufacturer in any manner which is inconsistent with the provisions of this title.
X. A wine manufacturer may enter into a contract wine manufacturer arrangement with a contract wine manufacturer, manufacturing in the state of New Hampshire after the wine manufacturer has been in operation for one year. Wine produced by a contract wine manufacturer intended for sale outside the state may be warehoused at the contract wine manufacturer’s facility or at some other facility accessible only to the wine manufacturer. A contract wine manufacturer shall not deliver wine to on-premises and off-premises licensees within the state. A wine manufacturer shall file all contract wine manufacturer arrangements with the commission.
XI. The wine manufacturer shall submit to the liquor commission an annual report of all wines by:
(a) The wine manufacturer on-site.
(b) Any tenant wine manufacturer.
(c) Any contract wine manufacturer the wine manufacturer has contracted with under paragraph X.
XII. All taxes due on product that is made by a contract wine manufacturer shall be paid by the wine manufacturer.
7 New Section; Tenant Wine Manufacturer License; Tenant Option. Amend RSA 178 by inserting after section 8 the following new section:
178:8-a Tenant Wine Manufacturer License; Tenant Option.
I. A holder of tenant wine manufacturer license may manufacture and/ or package wine on the premises of a host manufacturer, and shall be consistent with all terms and conditions contained in Title XIII for their license type.
II. A holder of a tenant manufacturer license may transport in bulk wine produced on the tenant's premises to a host manufacturer for the purpose of packaging wine on the host manufacturer's premises.
III. To be eligible for a tenant wine manufacturer license, the applicant shall have all applicable permits or notices required by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau allowing the person to use the facilities, equipment, and employees of a host manufacturer.
IV. A tenant wine manufacturer is subject to the same requirements regarding production of wine as if the manufacturer conducted its manufacturing on its own premises independently.
V. Each tenant wine manufacturer shall maintain records and prepare reports for the commission which shall indicate the sales made under this section and shall pay to the commission monthly a fee equal to 5 percent of such sales on or before the fifteenth day of the month following the sale.
VI. The annual fee for each license issued under this section shall be $240.
VII. The commission may require a tenant wine manufacturer to maintain a record or log indicating which equipment is being used at any time by the tenant wine manufacturer in the production of alcoholic beverages and which employees are working on production of the tenant wine manufacturer's product.
8 New Paragraphs; Liquor Manufacturer Licenses; Tenant Option. Amend RSA 178:6 by inserting after paragraph X the following new paragraphs:
XI. A liquor manufacturer may be issued a tenant manufacturer license under RSA 178:6-a if the licensee meets the requirements of RSA 178:6-a. Liquor produced or packaged by a liquor manufacturer licensee, as a tenant liquor manufacturer at a host manufacturers’ facility, shall be included in the production reports submitted to the commission. No alcohol may be sold by the liquor manufacturer in any manner which is inconsistent with the provisions of this title.
XII. A liquor manufacturer may enter into a contract liquor manufacturer arrangement with a contract liquor manufacturer, manufacturing in the state of New Hampshire after the liquor manufacturer has been in operation for one year. Liquor produced by a contract liquor manufacturer intended for sale outside the state may be warehoused at the contract liquor manufacturer’s facility or at some other facility accessible only to the liquor manufacturer. A contract liquor manufacturer shall not deliver liquor to on-premises and off-premises licensees within the state. A liquor manufacturer shall file all contract liquor manufacturer arrangements with the commission.
XIII. The liquor manufacturer shall submit to the liquor commission an annual report of all liquor by:
(a) The liquor manufacturer on-site.
(b) Any tenant liquor manufacturer.
(c) Any contract liquor manufacturer the liquor manufacturer has contracted with under paragraph X.
XIV. All taxes due on product that is made by a contract liquor manufacturer shall be paid by the liquor manufacturer.
9 New Section; Tenant Liquor Manufacturer License; Tenant Option. Amend RSA 178 by inserting after section 6 the following new section:
178:6-a Tenant Liquor Manufacturer License; Tenant Option.
I. A holder of tenant liquor manufacturer license may manufacture and/ or package liquor on the premises of a host manufacturer, and shall be consistent with all terms and conditions contained in Title XIII for their license type.
II. A holder of a tenant manufacturer license may transport in bulk liquor produced on the tenant's premises to a host manufacturer for the purpose of packaging liquor on the host manufacturer's premises.
III. To be eligible for a tenant liquor manufacturer license, the applicant shall have all applicable permits or notices required by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau allowing the person to use the facilities, equipment, and employees of a host manufacturer.
IV. A tenant liquor manufacturer is subject to the same requirements regarding production of liquor as if the manufacturer conducted its manufacturing on its own premises independently.
V. Each tenant liquor manufacturer shall maintain records and prepare reports for the commission which shall indicate the sales made under this section and shall pay to the commission monthly a fee equal to 8 percent of such sales or 8 percent of the retail value of such samples on or before the fifteenth day of the month following the sale or the sample distribution.
VI. The annual fee for each license issued under this section shall be $240.
VII. The commission may require a tenant liquor manufacturer to maintain a record or log indicating which equipment is being used at any time by the tenant liquor manufacturer in the production of alcoholic beverages and which employees are working on production of the tenant liquor manufacturer's product.
10 Effective Date. This act shall take effect 60 days after its passage.
2024-1072h
AMENDED ANALYSIS
This bill expands tenant brewing to include manufacturers of wine and liquor.