HB 1540-FN - AS INTRODUCED

 

 

2024 SESSION

24-2345

05/08

 

HOUSE BILL 1540-FN

 

AN ACT relative to the definitions of full course meals and full service restaurant for purposes of alcohol licensing.

 

SPONSORS: Rep. J. Sullivan, Graf. 2; Rep. Ammon, Hills. 42; Rep. Wheeler, Hills. 33; Rep. Kuttab, Rock. 17; Rep. Read, Rock. 10; Rep. Knab, Rock. 12; Rep. A. Murray, Hills. 20; Rep. Morse, Graf. 9; Rep. Phinney, Straf. 9

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill revises the definition of full course meal and full service restaurant for purposes of alcohol licensing.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2345

05/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to the definitions of full course meals and full service restaurant for purposes of alcohol licensing.

 

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

 

1  Alcoholic Beverages; Definitions of Full Course Meal and Full Service Restaurant.  Amend RSA 175:1, XXXII and XXXIII to read as follows:

XXXII. "Full course meal" means a diversified selection of food [which ordinarily cannot be consumed without the use of tableware and which cannot be conveniently consumed while standing or walking] that requires some level of preparation, and falls into the following categories:

(a)  Grilled meals, including but not limited to grilled foods, including beef, chicken, pork, blended meats, and equivalent grilled vegetarian options.

(b)  Fried meals, including but not limited to deep or air fired foods, including potatoes, chicken, vegetables, and tofu.

(c)  Baked meals, including but not limited to baked desserts, meats, pizza/calzones, and vegetable and starches.

(d)  Sandwiches, including but not limited to subs, wraps, open-faced, and paninis.

(e)  Salads, including but not limited to green salads, vegetable salads, salads of pasta, legumes, or grains, mixed salads incorporating meat, poultry, or seafood, and fruit salads.

(f)  Soups and stews, including but not limited to thin, thick, cold, and national.

(g)  Stove top cooked meals, including boiled, stir fried, and sautéed meals.

XXXIII.  "Full service restaurant" means a room or rooms capable of seating, at one or more tables with chairs or at booths, at least [20] 10 guests at one time.  [The dining room and kitchen shall be sufficiently staffed.  Meals shall be readily available, promoted and served to the table.  The menu shall contain a variety of full course meals and a sandwich menu may be substituted at the noon meal.] Meals shall be readily available and served to the table.  The menu shall contain multiple options of full course meals from at least 2 different meal categories listed in paragraph XXXII.

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

 

LBA

24-2345

12/3/23

 

HB 1540-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the definitions of full course meals and full service restaurant for purposes of alcohol licensing.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Revenue Fund(s)

Liquor Fund

 

Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source(s)

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:

The Liquor Commission indicates this bill would amend the requirements for an applicant to acquire and retain a “full service restaurant” license to sell beer, wine and liquor by changing the definitions of full course meal and full service restaurant in RSA 175:1.  The Commission provided the following information and assumptions concerning the fiscal impact of the bill:

 

  • The reduced seating requirements will allow for smaller venues to apply for a license to sell beer, wine and liquor.   The Commission anticipates a large number of the existing  businesses licensed as beer and wine restaurants, will seek to change their license type to take advantage of the reduced operational requirements for a full service restaurant license.  The annual license fee for a beer and wine restaurant is $480 and the annual license fee for a full service restaurant is $840.

 

  • The Commission assumes the change will result in additional revenue as a large portion of the current beer wine restaurant licensees choose to upgrade their license to a full service restaurant license and pay the additional $360.  If all 360 eligible “On-Premise Beverage and Wine License” licensees upgraded their licenses revenue would increase by $129,600.

 

  • The annual license fee for an “On-Premise Cocktail Lounge License” is $1,200.  The Commission assumes, due to the relaxed requirements for a full service restaurant license, some portion of the on-premise cocktail lounge businesses will change to a full service restaurant license and reduce their annual fee from $1,200 to $840.  This will reduce license fee revenue by an indeterminable amount.

 

  • Full service restaurant licensees that do not comply with the food sales requirement will be returned to a beer and wine restaurant license.  This would decrease license fee revenue.  The Commission anticipates a number of new full service restaurant licensees will be unable to meet the food sales requirement and will be returned to a beer and wine license.

 

  • Food service amounts are subject to audit.  The Commission indicates it's audit unit is understaffed.  The Commission anticipates it would need additional personnel to keep up with the increased audit demand.

 

  • Licensees that have been be re-categorized from a full service restaurant license to a beer and wine license would be entitled to a hearing.  The Commission  believes a significant number of these businesses would request hearings resulting in an increase in enforcement reporting and hearings.  The Commission states it does not have sufficient personnel to handle these matters in a timely fashion.

 

  • The Commission does not administer the rooms and meals tax process, but expects the opportunity for licensees to sell less food may result in lower rooms and meals tax revenue from food sales.

 

 

AGENCIES CONTACTED:

Liquor Commission