HB 381-FN - VERSION ADOPTED BY BOTH BODIES

2015 SESSION

15-0697

03/08

HOUSE BILL 381-FN

AN ACT allowing a liquor manufacturer to be issued an on-premises license.

SPONSORS: Rep. McConkey, Carr 3; Rep. Chandler, Carr 1; Rep. Umberger, Carr 2; Sen. Bradley, Dist 3

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill allows a liquor manufacturer to be issued an on-premises license for the manufacturer’s premises.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15-0697

03/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Fifteen

AN ACT allowing a liquor manufacturer to be issued an on-premises license.

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

1 New Paragraph; Liquor Manufacturer; On-Premises License. Amend RSA 178:6 by inserting after paragraph IX the following new paragraph:

X. The holder of a liquor manufacturer license may be issued one on-premises license for the manufacturer’s premises, providing all requirements of the license are fulfilled.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

15-0697

Revised 01/14/15

HB 381-FN - FISCAL NOTE

AN ACT allowing a liquor manufacturer to be issued an on-premises license.

FISCAL IMPACT:

The Liquor Commission states this bill, as introduced, may increase state expenditures by $105,565 in FY 2016, $81,258 in FY 2017, $84,498 in FY 2018, and $88,011 in FY 2019, and may decrease state revenue by an indeterminable amount FY 2016 and each year thereafter. There will be no fiscal impact on county and local revenues or expenditures.

METHODOLOGY:

The Liquor Commission states this bill allows a liquor manufacturer to sell and serve their spirit product on their premises. The Commission states there are 6 licensed manufacturers in the state, and assumes this number will increase but has no data to estimate how many new licenses will be issued. The Commission believes fewer bottles of New Hampshire made spirits will be sold at state liquor stores because liquor manufacturers can make more money selling their products rather than wholesaling to the Commission. The Liquor Commission reports it is impossible to know how many bottles of spirits would be sold directly from liquor manufacturers’ premises. The Commission estimates that if the liquor manufacturers sold one-fourth of their product that the Commission sold in the last twelve months, the State could lose $54,634 (35,022 bottles sold x ¼ x $6.24 average gross profit per bottle) in liquor fund revenue each year. Although the bill does not contain an appropriation or establish a position, the Commission states it will need one additional Liquor Examiner II position to absorb the projected workload associated with this bill because current liquor examiners will not have the capacity to do so. The following table details the costs associated with the Liquor Examiner II position:

FY 2016

FY 2017

FY 2018

FY 2019

Liquor Examiner II Salary (LG 20, step 1)

$41,080

$42,848

$44,595

$46,509

Benefits

$24,985

$26,410

$27,903

$29,502

Current Expenses

$3,000

$3,000

$3,000

$3,000

Equipment

$28,000

$500

$500

$500

Travel

$5,000

$5,000

$5,000

$5,000

Professional Development Training & Overtime

$3,500

$3,500

$3,500

$3,500

Total

$105,565

$81,258

$84,498

$88,011