SB340: relative to the direct to consumer shipment of alcohol to New Hampshire residents.

SB 340-FN - AS AMENDED BY THE SENATE

03/31/2022 1237s

2022 SESSION

22-3094

08/04

SENATE BILL 340-FN

AN ACT relative to the direct to consumer shipment of alcohol to New Hampshire residents.

SPONSORS: Sen. Daniels, Dist 11; Rep. Healey, Hills. 21

COMMITTEE: Commerce

ANALYSIS

This bill makes changes to direct to consumer shipments of alcohol to New Hampshire residents.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/31/2022 1237s 22-3094

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to the direct to consumer shipment of alcohol to New Hampshire residents.

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

1 Direct Shipment of Alcohol to New Hampshire Residents. Amend RSA 178:27-b, II to read as follows:

II. No liquor manufacturer shall ship more than 60 individual containers of not more than one liter each of liquor to any consumer's address in New Hampshire in any calendar year. No wine manufacturer shall ship more than 12 9-liter cases or equivalent of wine to any consumer's address in New Hampshire in any calendar year. No beverage manufacturer, nano brewery, brew pub, or beverage distributor shall ship more than [27] 50 gallons of beer, specialty beer or specialty beverage in individual containers of not more than one liter to any consumer's address in New Hampshire in any calendar year. Beer, specialty beer and specialty beverages delivered to New Hampshire consumers under this section shall not exceed 8 percent alcohol by volume.

2 Direct Shippers; Beer. Amend RSA 178:27, IV to read as follows:

IV. No direct shipper shall ship more than [27] 50 gallons of beer or beverage in individual containers of not more than one liter to any licensee or consumer in New Hampshire in any calendar year.

3 Repeal. RSA 178:27-b, IV(a)(2), relative to the names and addresses of purchasers of shipped alcoholic beverages, is repealed.

4 Effective Date. This act shall take effect July 1, 2022.

LBA

22-3094

Amended 4/8/22

SB 340-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2022-1237s)

AN ACT relative to the direct to consumer shipment of alcohol to New Hampshire residents.

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

Indeterminable

Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Other - Liquor Fund

METHODOLOGY:

The Liquor Commission states this bill would increase the quantity of beer that may be shipped from an out-of-state direct shipper and an in-state manufacturing licensee to any consumer's address in New Hampshire in any calendar year from 27 gallons to 50 gallons. The amendment does not change the limits established for the sale of liquor or wine.

Regarding shipments from in-state manufacturers to New Hampshire consumers the Commission reports:

Currently there are 118 eligible licensee’s eligible to ship beer directly to NH consumers under the provisions of RSA 178:27-b. Of those licensees, only 8 have applied for the Direct to Consumer (DTC) permit, only 1 has reported shipping product directly to a consumer. The licensee has not exceeded the current limits of 27 gallons and has reported taxes paid of $285.00.

Beer produced in NH is taxed at the rate of $.30 per gallon at the point of production. If a NH manufacturer ships directly to a NH consumer no other revenue is realized beyond the tax at the point of manufacture.

Based upon this information, the Commission cannot determine if increasing the limit on beer that can be shipped from 27 gallons to 50 gallons will bring about any increase in tax revenue from in-state manufacturers.

Regarding out-of-state direct shippers selling direct to New Hampshire consumers the Commission reports:

Currently there are 35 out of state eligible direct shipper licensees who ship beer directly to NH consumers under the provisions of RSA 178:27.

Unlike in-state producers that pay a tax of $.30 per gallon for beverages they produce, out-of-state direct shippers pay a fee of 8 percent of the retail price for shipments of liquor, wine, beer, or beverage to the Commission.

Increasing the amount of beer an out-of-state direct shipper can ship to a NH consumer from 27 to 50 gallons per year may increase such shipments and revenue based upon the 8% fee. Any such increase cannot be determined in advance.

AGENCIES CONTACTED:

Liquor Commission