SB 125-FN - AS INTRODUCED
2021 SESSION
21-0900
08/10
SENATE BILL 125-FN
AN ACT relative to beverage manufacturer licenses.
SPONSORS: Sen. Gannon, Dist 23; Sen. Perkins Kwoka, Dist 21; Sen. Carson, Dist 14; Sen.
Rosenwald, Dist 13; Sen. Bradley, Dist 3; Rep. Welch, Rock. 13; Rep. Weyler,
Rock. 13
COMMITTEE: Commerce
─────────────────────────────────────────────────────────────────
ANALYSIS
This bill makes changes to the requirements for serving samples for beverage manufacturers and
nano breweries.
This bill also allows wholesale distributors to sell specialty cider.
---------------------------------------------------------------------------
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 SB 125-FN - AS INTRODUCED
21-0900
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to beverage manufacturer licenses.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Beverage Manufacturers License. Amend RSA 178:12, II-a-IV to read as follows:
2 II-a. The holder of a beverage manufacturer license may sell beverage samples to visitors of
3 legal drinking age for consumption on the premises where the beverages were manufactured. A
4 beverage manufacturer may either provide samples for free or for a fee which shall be limited to one
5 4-ounce glass per label or [one] 2 16-ounce [glass] glasses per person, unless food is provided,
6 which may be consumed[. At such times as food is available, a beverage manufacturer may serve
7 no more than 2 16-ounce glasses per person] in any areas approved by the commission. For the
8 purpose of this section, food and non-alcoholic beverages may be provided by a properly-licensed
9 [third party] food vendor, prepared on or off the premises.
10 III. The holder of a beverage manufacturer license may operate a hospitality room on the
11 premises [in which the licensee may make available to employees and visitors of legal drinking age
12 for on-premises consumption free of charge samples of beverages manufactured or distributed in the
13 United States by the beverage manufacturer]. The hospitality room shall require commission
14 approval in respect to its location, service facilities, and seating arrangements.
15 IV.(a) The holder of a beverage manufacturer license may sell beverages manufactured on
16 its premises or manufactured by the licensee at a host brewer facility to:
17 (1) The licensee's employees who are of legal drinking age at such discounts as are
18 customary in the business;
19 (2) The general public for on-premises or off-premises consumption [in quantities
20 not to exceed a single 15.5 gallon keg or the equivalent of one case of 12 ounce containers per person
21 per day]; or
22 (b) A holder of a beverage manufacturer license who manufactures 15,000 barrels or less
23 during its licensing period may elect to distribute its beverages directly to retail licensees and/or to
24 distribute its beverages pursuant to RSA 180, provided that total in-state direct retail sales do not
25 exceed 5,000 barrels.
26 2 Nano Brewery License. Amend RSA 178:12-a, II to read as follows:
27 II. The annual fee for each license issued under this section shall be $240. Except for
28 licensees under paragraph VII, licensees shall comply with the following:
29 (a) No beverage or liquor shall be served or consumed on the premises except that which
30 is manufactured by the licensee on the premises or manufactured by the licensee at a host brewer
31 facility.
 SB 125-FN - AS INTRODUCED
- Page 2 -
1 (b) The licensee may serve beverages to any visitor of legal drinking age by the glass or
2 other suitable container.
3 (c) For the purpose of this section, food and non-alcoholic beverages may be provided by
4 a properly licensed [third party] food vendor, prepared on or off the premises.
5 (d) The licensee shall not allow any beverage or liquor to be served or sold to any person
6 under the age of 21 on the premises.
7 [(e) Sales for consumption on the premises shall be limited to one 4-ounce glass per label
8 per person. ]
9 3 Nano Brewery License. Amend RSA 178:12-a, VIII(c) to read as follows:
10 (c) Sample sizes shall be limited to 2 16-ounce [glass] glasses per person if no food is
11 available[ and 2 16-ounce glasses if food is available].
12 4 Brew Pub License. Amend RSA 178:13, I to read as follows:
13 I. A brew pub license shall authorize the licensee to manufacture beer or cider in quantities
14 not to exceed 2,500 barrels annually [primarily for consumption on the licensed premises].
15 5 Wholesale Distributor Licenses. Amend RSA 178:16, I to read as follows:
16 I. Wholesale distributor licenses shall authorize the licensees to sell beverages in barrels,
17 bottles, or other closed containers and specialty beverages in single serve containers to licensees for
18 resale or to the general public. A wholesale distributor shall provide to an on-premises or off-
19 premises licensee any obtainable beverage, specialty beverage, beer, specialty beer, specialty cider,
20 or cider. Requested products shall be priced subject to special order terms as agreed by all parties.
21 The holder of a wholesale distributor license shall maintain a regular place of business in this state.
22 6 Effective Date. This act shall take effect July 1, 2021.
 LBA
21-0900
1/29/21
SB 125-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to beverage manufacturer licenses.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
STATE: FY 2021 FY 2022 FY 2023 FY 2024
Appropriation $0 $0 $0 $0
Indeterminable Indeterminable Indeterminable
Revenue $0
Decrease Decrease Decrease
Expenditures $0 $0 $0 $0
[ ] General [ ] Education [ ] Highway [ X ] Other - Liquor
Funding Source:
Fund
METHODOLOGY:
This bill makes changes to the requirements for serving samples for beverage manufacturers and
nano breweries. The bill also allows wholesale distributors to sell specialty cider.
The Liquor Commission indicates the proposed change to the beverage manufacturers license in
RSA 178:12 would make changes to all three of the license types where the licensee is authorized
to manufacture beverages and beer. Currently beverage manufacturers are authorized to create
hospitality rooms where visitors to the facility are able to sample the manufacturer’s products.
This bill would change the character of a hospitality room from a place where they may sample
products to a place where the visitor could consume 2, 16 oz. glasses of beverages rather than
being limited to 4 oz. samples. Under the current law a beverage licensee may apply for a
separate retail license for their premise where customers and visitors may enjoy the
manufacturer’s products with food prepared and sold by the manufacturer. The bill would allow
visitors to consume an unlimited quantity of beverages as long as “food is provided.” The bill
would allow a third party to prepare and bring food to the manufacturer’s facility as substitute
for the licensee’s preparation and service of food. The Commission states the effect of this
change would be to no longer offer the manufacturer a second retail license as authorized in
current statute. The Commission anticipates beverage manufacturer’s holding a second retail
license would now give up the second license which would result in a decrease in licensing
revenue. As an example, the Commission reports manufacturers, such as Anheuser Busch
sampling in their hospitality room, would no longer be able to sample products brewed from their
other breweries. This would affect beer tax revenue if manufacturers could only sample beers
they brew on site. The Commission estimates the decrease would be approximately $350.00 per
month for this manufacturer. In addition, the Commission states the bill also removes
limitations agreed to by the beverage manufacturers to limit the quantity of beverages available
to the visiting public and where these beverages may be consumed by allowing the unlimited
retail purchase of beer from the manufacturer and allow the purchaser to consume the beverages
on the licensee’s premises. The Commission states this would blur the licensee’s responsibility
under State law and it appears that a manufacturer may have no legal jeopardy under RSA
179:5. The change would allow the manufacturer to obtain an on-premise license without
purchasing it or complying with the existing requirements for on premise applicants. The
Commission indicates 13 of the 41 beverage manufactures hold a restaurants license. The
licenses held by these manufacturers include:
· 8 Restaurant Beer & Wine Licenses @ $480;
· 5 Restaurant Beer, Wine & Liquor Licenses @ $840 and;
· 1 Restaurant with a cocktail lounge @ $1200.
If these manufacturers surrendered these licenses as a result of this legislation the decrease in
license revenue collected by the Commission would be $9,240.
Regarding the proposed changes to RSA 178:12 concerning the Nano Brewery License, the
Commission indicates under current law, a nano brewer is able to acquire an additional on
premise license for a fee of $240. The additional license permits the brewer to serve customers
full glasses of beverages they produce as long as the licensee had food available. (A nano brewer
holding an additional restaurant license is often referred to as a “Nano Plus” licensee.) There is
nothing in current law that forbids a nano brewer from allowing a 3rd party to provide food, but
the licensee is still required to have their own food available. The proposed change would no
longer require a Nano Brewery holding a restaurant license (Nano Plus) to have responsibility or
capacity to prepare and serve food. If this portion of the bill were to become law nano brewers
would have no reason to purchase a license under RSA 178:20 as they would not be required to
be able to sell food prepared on their premise but allow a 3rd party to provide the food made
available to customers. The Commission assumes, if this section of the bill were to pass nano
brewers would no longer purchase the additional license if they desired to serve more than
samples. The result would be a decrease in licensing revenue and the Nano Brewery would
essentially become a bar. Under current law Nano Brewers may transport their products to the
site of a wine manufacturer, sample products in 4 oz. sizes, and sell the wine manufacturer’s
customers New Hampshire brewed products in their original sealed containers. This bill would
eliminate the 4 ounce limitation and allow tasters to consume 2, 16 oz. beers without any
requirement of the availability of food. The Commission reports there are 36 Nano Breweries in
the state and 24 of them hold a restaurants license. If, as a result of this change, these
 businesses surrendered their Nano Brewery License there would be a decrease in revenue of
$5,760. (24 x $240= $5,760).
Regarding the changes to the Brew Pub License in section 4 of the bill, the Commission
indicates, unlike the Beverage Manufacturer and Nano Brewery where the primary focus of the
business is the production of beverages, the Brew Pub license was established to allow a
restaurant to brew beer primarily for the consumption and enjoyment of their restaurant
customers. The Commission indicates this proposed change would have no fiscal impact.
AGENCIES CONTACTED:
Liquor Commission


Statutes affected:
Introduced: 178:12, 178:12-a, 178:13, 178:16
latest version: 178:12, 178:12-a, 178:13, 175:1, 178:14, 178:27