HB 1702-FN - AS INTRODUCED
2024 SESSION
24-2575
08/10
HOUSE BILL 1702-FN
AN ACT relative to oversight of liquor commission funding and repealing the liquor commission fund.
SPONSORS: Rep. Leishman, Hills. 33; Rep. M. Smith, Straf. 10; Rep. Wheeler, Hills. 33; Rep. D. McGuire, Merr. 14; Rep. Emerick, Rock. 29; Rep. G. Griffin, Hills. 42; Rep. Grote, Rock. 24
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill repeals the liquor commission fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2575
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to oversight of liquor commission funding and repealing the liquor commission fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Funds; Liquor Commission Funds. Amend RSA 176:16 to read as follows:
176:16 Funds.
I. Except as provided in paragraph II, the state treasurer shall credit all gross revenue derived by the commission from the sale of liquor, or from license fees, and interest received on such moneys, to [a special fund, to be known as the liquor commission fund, from which the treasurer shall pay all expenses of the commission incident to the administration of this title. Any balance left in such fund after such expenses are paid shall be deposited in] the general fund [on a daily basis].
II. Notwithstanding any provision of law, or the designation of the funds allocated by the state to the liquor commission [as the liquor commission fund], the general court shall retain budgeting authority and control over the liquor commission.
III. [Five percent of the preceding fiscal year] A portion of the gross profits derived by the commission from the sale of liquor shall be deposited into the alcohol abuse prevention and treatment fund established by RSA 176-A:1. The amount of such deposit shall be based on an appropriation included in the state operating budget. [For the purpose of this section, gross profit shall be defined as total operating revenue minus the cost of sales and services as presented in the state of New Hampshire annual comprehensive financial report, statement of revenues, expenses, and changes in net position for proprietary funds. Such deposit shall be processed in 2 installments as follows:
(a) The commission shall process the initial deposit on or before August 1st of the ensuing fiscal year. Such deposit shall be calculated based on an estimate of the preceding fiscal year gross profit derived by the commission from the sale of liquor.
(b) Upon issuance of the audited annual comprehensive financial report pursuant to RSA 21-I:8, II(a), the commission shall process a second and final deposit or adjustment.
(c) If the amount of the initial deposit exceeds the final amount calculated based on the audited annual comprehensive financial report pursuant to RSA 21-I:8, II(a), the comptroller shall transfer the excess amount from the alcohol abuse prevention and treatment fund established by RSA 176-A:1 to the liquor fund.]
III-a. In order to facilitate the initial funding of the granite advantage health care trust fund, established under RSA 126-AA:3, for the period of January 1 to June 30, 2019, an amount no less than 1/2 of 5 percent of such gross profits based on the state comprehensive annual financial report for the state fiscal year 2017 shall be deposited into the alcohol abuse prevention and treatment fund no later than November 30, 2018.
IV. Notwithstanding any other provision of law, if the expenditure of additional funds over budget estimates is necessary for the proper funding of retirement and health benefits for commission employees, the commissioner may request, with prior approval of the fiscal committee of the general court, that the governor and council authorize the transfer of funds from the [liquor commission] general fund.
V. The commissioner is authorized to transfer funds within and among all accounting units within the commission's operating budget and to create accounting units and expenditure classes as required and as the commissioner deems necessary and appropriate to address present or projected budget deficits, or to respond to changes in federal law, regulations, or programs, and otherwise as necessary for the efficient management of the liquor commission. Any individual transfer of $75,000 or more shall require prior approval of the fiscal committee of the general court and governor and council, and any determination of this prior approval requirement shall not be determined on a cumulative basis. The provisions of this section shall not be subject to RSA 9:16-a, RSA 9:17-a, and RSA 9:17-c.
VI. The commission is authorized to transfer funds for its employee incentive program [from the liquor commission fund] to such accounts as required to compensate qualifying employees as provided in the liquor commission rules, Liq 800.
2 The New Hampshire Granite Advantage Health Care Trust Fund; Cross Reference. Amend the introductory paragraph of RSA 126-AA:3, VI to read as follows:
VI. The commissioner, in accordance with the most current available information, shall be responsible for determining, quarterly commencing no later than December 31, 2018, whether there is sufficient funding in the fund to cover projected program costs for the nonfederal share for the next 6-month period. If at any time the commissioner determines that a projected shortfall exists, then the sum necessary to cover such shortfall shall be transferred to the fund from the liquor commission [fund established] as directed in RSA 176:16. In the event the commissioner determines that there are not sufficient funds [in the liquor commission fund] to cover the shortfall, then he or she shall terminate the program in accordance with the federally approved terms and conditions issued by CMS. Upon making a determination that a projected shortfall exists and that there are insufficient funds [in the liquor commission fund] to cover the shortfall, the commissioner shall:
3 Repeal. The following are repealed:
I. RSA 6:12, I(b)(277), relative to the liquor commission fund established in RSA 176:16.
II. RSA 6:12-k, I(g), relative to exempting the liquor commission fund from reporting requirements.
III. RSA 9:11, II(b)(5) relative to liquor fund monthly statements.
4 Effective Date. This act shall take effect July 1, 2025.
24-2575
Revised 12/21/23
HB 1702-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to oversight of liquor commission funding and repealing the liquor commission fund.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Revenue Fund(s) | General Fund Liquor Fund | |||||
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Funding Source(s) | General Fund Liquor Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
| |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill repeals the liquor commission fund. The Liquor Commission indicates, pursuant to RSA 176:3, the Commission’s primary duties are to optimize profitability, maintain proper controls, assume responsibility for effective and efficient operations, and provide service to customers. The Commission is unable to forecast how this bill will affect it's future budgetary needs or ability to adhere to the provisions of RSA 176:3.
AGENCIES CONTACTED:
Liquor Commission
| Date | Body | Type |
|---|---|---|
| Jan. 31, 2024 | House | Hearing |
| Jan. 31, 2024 | House | Hearing |
| March 13, 2024 | House | Exec Session |
| Oct. 17, 2024 | House | Exec Session |
| House | Floor Vote |
Oct. 31, 2024: Interim Study Report: Not Recommended for Future Legislation (Vote 16-0)
Sept. 25, 2024: Executive Session: 10/17/2024 10:00 am LOB 302-304
Aug. 14, 2024: Full Committee Work Session: 09/12/2024 10:00 am LOB 302-304
March 28, 2024: Refer for Interim Study: MA VV 03/28/2024 HJ 10 P. 18
March 20, 2024: Committee Report: Refer for Interim Study 03/13/2024 (Vote 18-0; CC) HC 12 P. 9
March 7, 2024: Executive Session: 03/13/2024 10:00 am LOB 302-304
Feb. 7, 2024: Subcommittee Work Session: 02/13/2024 01:00 pm LOB 306-308
Jan. 25, 2024: Public Hearing: 01/31/2024 10:30 am LOB 302-304
Jan. 24, 2024: ==CANCELLED== Public Hearing: 01/31/2024 01:45 pm LOB 302-304
Dec. 19, 2023: Introduced 01/03/2024 and referred to Commerce and Consumer Affairs HJ 1 P. 30