This bill changes the sales requirements for food for on-premises beverage and liquor licenses. Currently, restaurants with an on-premises beverage and liquor license must show that at least 50% of their gross sales is in food. This bill would reduce that requirement to 15% of gross sales. Additionally, restaurants with annual food sales of at least $75,000 would be exempt from the 15% requirement. The bill also reduces the number of days per week that the dining room must be open for evening meals from 5 days to 3 days. The bill would take effect 60 days after its passage.

The fiscal impact of this bill is indeterminable. The Liquor Commission anticipates that many restaurants currently licensed for on-premises beverage and wine sales may choose to upgrade to the on-premises beverage and liquor license if the requirements are reduced. This could result in a one-time increase in licensing revenue. The Commission also anticipates an increase in licensee audits and may need to hire additional personnel to handle the workload. The bill may also result in a decrease in revenue from on-premises cocktail lounge licenses and a decrease in licensing fee revenue if restaurants do not meet the new food sales requirements. The Commission also anticipates the need for additional staff to audit food sales and notes that the decrease in food sales may impact state rooms and meals tax revenue.

Statutes affected:
Introduced: 178:21