HB 5331 — AN ACT CONCERNING THE LIQUOR CONTROL ACT AND RELATED STATUTES.

(12) a holder of a manufacturer permit for a farm winery [or the holder of] issued under subsection (c) of section 30-16 or a manufacturer permit for wine, cider and mead issued under subsection (d) of section 30-16maybeaholderofanin-statetransporter'spermit [,awine festival permit issued pursuant to section 30-37l] issued under section 30-19f, a farmers' market sales permit issued [pursuant to] under subsection (a) of section 30-37o, an off-site farm winery sales and tasting permit issued [pursuant to] under section 30-16a or [of] any combination of such permits;Public Act No.

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5331 permits;

and (16) the holder of a festival permit issued under section 1 of this act may sHB5331be /the Fileholder No.or backer of one or more of such other classes.

588 sHB5331 File No.

588 be the holder or backer of one or more of such other classes.

Any town may, by vote of aPublic townAct meetingNo. or by ordinance, reduce the number of hours during which the retail sale, [of wine and the tasting of free samples of wine pursuant to] tasting or sampling of alcoholic liquor under this subsection shall be permissible.

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5331 a town meeting or by ordinance, reduce the number of hours during which the retail sale, [of wine and the tasting of free samples of wine pursuant to] tasting or sampling of alcoholic liquor under this subsection shall be permissible.

A holder of a manufacturer permit for beer whosellsbeerbrewed onsuchpremisesatwholesaletoretailpermittees sHB5331within /this Filestate No.shall make such beer available to all holders of a package store permit issued pursuant to section 30-20 and to all holders of a grocery store beer permit held pursuant to said section in the geographical region in which the holder of the manufacturer permit for beer self distributes, subject to reasonable limitations, as determined by the Department of Consumer Protection.

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588 within this state shall make such beer available to all holders of a package store permit issued pursuant to section 30-20 and to all holders of a grocery store beer permit held pursuant to said section in the geographical region in which the holder of the manufacturer permit for beer self distributes, subject to reasonable limitations, as determined by the Department of Consumer Protection.

Such selling at retail from the premisesPublic ofAct sealedNo. bottles or other sealed containers shall comply with the provisions of subsection (d) of section 30-91 and shall permit not more than nine gallons of beer to be sold to any person on any day on which such sale is authorized under the provisions of subsection (d) of section 30-91.

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5331 premises of sealed bottles or other sealed containers shall comply with the provisions of subsection (d) of section 30-91 and shall permit not more than nine gallons of beer to be sold to any person on any day on which such sale is authorized under the provisions of subsection (d) of section 30-91.

(1) "Collaboration" has the same meaning as provided in subsection sHB5331(b) /of Filesection No.30-16, as amended by this act;

588 sHB5331 File No.

588 (b) of section 30-16, as amended by this act;

If the holder of a Connecticut craft cafe permit also holds a manufacturer permit for beer issued under subsectionPublic (b)Act ofNo. section 30-16, as amended by this act, such holder may sell, at retail for consumption on the permit premises, any brand of beer that such holder manufactured in collaboration with at least one other holder of such a manufacturer permit, provided not more than one such brand of beer may be sold from the permit premises at any time.

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5331 subsection (b) of section 30-16, as amended by this act, such holder may sell, at retail for consumption on the permit premises, any brand of beer that such holder manufactured in collaboration with at least one other holder of such a manufacturer permit, provided not more than one such brand of beer may be sold from the permit premises at any time.

A Connecticut craft cafe permit shall allow, with [the prior approval of] the Department of Consumer [Protection] Protection's prior approval and if allowed under fire,zoningandhealth regulations,alcoholicliquortobeservedattables sHB5331in /outside Fileareas No.that are screened or not screened from public view.

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588 in outside areas that are screened or not screened from public view.

No such fence or wallwall[used [used to enclose suchoutsideareas]shall belessthanthirty inches high.

[Such] A Connecticut craft cafe permit shall also authorize the sale, at retail from the permit premises [of] for consumption off the permit premises, of sealed containers supplied by the permittee of draught beer, [for consumption off the premises] including, but not limitedPublic to,Act beerNo. manufactured in collaboration with at least one other holder of a manufacturer permit for beer issued under subsection (b) of section 30-16, as amended by this act, provided not more than one collaborativelymanufacturedbrandofbeermaybesoldfromthepermit premises at any time.

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5331 limited to, beer manufactured in collaboration with at least one other holder of a manufacturer permit for beer issued under subsection (b) of section 30-16, as amended by this act, provided not more than one collaborativelymanufacturedbrandofbeermaybesoldfromthepermit premises at any time.

"Cafe" does not include sleeping accommodations for the public and need not necessarily have a kitchen or dining room.] (c) The holder of a Connecticut craft cafe permit may purchase, for resale on such permit holder's premises, alcoholic liquor [for resale on sHB5331such /permit Fileholder's No.premises] from the holder of a [:

588 sHB5331 File No.

588 such permit holder's premises] from the holder of a [:

The holder of a Connecticut craftPublic cafeAct permitNo. shall not purchase the same type of alcoholic liquor such permit holder manufactures from any holder of a manufacturer permit specified in subdivision (1), (2) or (3) of this subsection, except any holder of a Connecticut craft cafe permit that also holds the manufacturer permit specified in subdivision (2) of this subsection may purchase from another holder of such a manufacturer permit beer that the Connecticut craft cafe permit holder manufactured in collaboration with another holder of such a manufacturer permit.

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5331 craft cafe permit shall not purchase the same type of alcoholic liquor such permit holder manufactures from any holder of a manufacturer permit specified in subdivision (1), (2) or (3) of this subsection, except any holder of a Connecticut craft cafe permit that also holds the manufacturer permit specified in subdivision (2) of this subsection may purchase from another holder of such a manufacturer permit beer that the Connecticut craft cafe permit holder manufactured in collaboration with another holder of such a manufacturer permit.

Subsection (a) of section 7-255 of the 2022 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2022, and applicable to assessment years sHB5331commencing /on Fileor No.after October 1, 2022):

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588 commencing on or after October 1, 2022):

The owner of property against which any such connectionoruse charge isleviedshallbeliablefortheisleviedshallbeliableforthepayment payment thereof.

Municipally-ownedPublic andAct otherNo. tax-exempt property which uses the sewerage system shall be subject to such charges under the same conditions as are the owners of other property, but nothing herein shall be deemed to authorize the levying of any property tax by any municipality against any property exempt by the general statutes from property taxation.

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5331 Municipally-owned and other tax-exempt property which uses the sewerage system shall be subject to such charges under the same conditions as are the owners of other property, but nothing herein shall be deemed to authorize the levying of any property tax by any municipality against any property exempt by the general statutes from property taxation.

Notice of the time, place and purpose of such hearing shall be published at least ten days before the date thereof in a newspaper having a general circulation in the municipality and on the Internet web site of the municipality.Acopyoftheproposedchargesshallbeonfileintheoffice oftheclerkofthemunicipality andavailablefor inspectionbythepublicinspectionbythe public for at least ten days before the date of such hearing.

[may] (1) May give consideration to sHB5331any /factors Filerelating to the kind, quality or extent of use of any such property or classification of property or users including, but not limited to, [(1)] (A) thevolume of water discharged to the sewerage system, [(2)] (B)thetypeorsize ofbuilding connectedwiththeseweragesystem, [(3)] Public Act No.

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5885331 any factors relating to the kind, quality or extent of use of any such property or classification of property or users including, but not limited to, [(1)] (A) thevolume of water discharged to the sewerage system, [(2)] (B)thetypeorsize ofbuilding connectedwiththeseweragesystem, [(3)] (C) the number of plumbing fixtures connected with the sewerage system, [(4)] (D) the number of persons customarily using the property served by the sewerage system, [(5)] (E) in the case of commercial or industrial property, the average number of employees and guests using the property, and [(6)] (F) the quality and character of the material discharged into the sewerage system.

(Effective from passage) ThisApproved actMay shall23, take2022 effectPublic asAct followsNo. and shall amend the following sections:

Section22-56 117 fromof passage17 New section Sec.

2 from passage 30-39(b) and (c) Sec.

3 from passage 30-43a Sec.

4 from passage 30-48(a) Sec.

5 from passage 30-91(j) Sec.

6 from passage 30-16(b) Sec.

7 from passage 30-22d Sec.

8 from passage 30-76a sHB5331 / File No.

588 sHB5331 File No.

588 Sec.

9 October 1, 2022, and 7-255(a) applicable to assessment years commencing on or after October 1, 2022 Sec.

10 from passage Repealer section sHB5331 / File No.

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588 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 23 $ FY 24 $ Resources of the General Fund GF - Potential Less than Less than Revenue Gain 5,000 5,000 Department of Revenue Services Various - Potential Potential Revenue Gain Note:

GF=General Fund;

Various=Various Municipal Impact:

None Explanation The bill makes various changes to the Liquor Control Act resulting in a potential revenue gain to the state described below.

Sections 1-5 and 10 eliminate the wine festival permit and establish a festival permit for all alcoholic liquor resulting in a potential revenue gain of less than $5,000 to the state to the extent additional permits are applied for.

It's anticipated this permit will generate up to 20 applications .

Sections 6 - 8 result in a potential revenue gain to the state's sales and alcoholic beverages taxes by making the following modifications pertaining to sales of alcohol:

• Allowing beer manufacturers and certain craft café permittees to sell beer produced in collaboration with another brewery.

Any impact would be only to the extent that there is an increase in alcohol sales rather than a shift from currently allowed transactions for 1The fee for a wine festival permit is $75.

sHB5331 / File No.

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588 alcohol.

Section9 prohibitswater pollutioncontrolauthorities(WPCAs)from considering the volume of water consumed by beer manufacturers when setting sewerage fees.

It is anticipated that any revenue loss a WPCA realizes as a result of this provision would be offset by increased sewer use fees and assessments on all users.

House "A" removes the provision that allows certain temporary or charitable organization permittees to purchase alcohol from manufacturer permittees reducing the potential revenue gain.

House "A" also makes various technical changes resulting in no fiscal impact to the state.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the number of permits applied for.

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588 OLR Bill Analysis sHB 5331 (as amended by House “A”)* AN ACT CONCERNING THE LIQUOR CONTROL ACT AND RELATED STATUTES.

SUMMARY This bill makes various changes to the Liquor Control Act.

Specifically, it does the following:

1.

eliminates the current wine festival permit and establishes a new festival permit for all manufacturers of alcoholic liquor (e.g., spirits, wine, and beer) (§§ 1-5 & 10);

2.

allows beer manufacturers and certain Connecticut craft cafes to sell beer brewed in collaboration with another beer manufacturer (e.g., sharing a recipe or providing at least 49% of the ingredients or labor) (§§ 6 & 7);

and 3.

requires water pollution control authorities (WPCAs) to disregard the volume of water that beer manufacturer permittees consumed when establishing or revising sewer charges (§ 9).

The bill also makes various technical and conforming changes.

*House Amendment “A” (1) eliminates the provisions in the underlying bill allowing (a) foreign manufacturers to participate under the festival permit and (b) certain temporary or charitable organizations to purchase alcohol from manufacturer permittees;

(2) prohibits manufacturers who are also an out-of-state shipper’s permittee for beer from, among other things, selling and directly shipping beer to festival visitors;

and (3) makes various minor and technical changes.

EFFECTIVE DATE:

Upon passage, except the water pollution control sHB5331 / File No.

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588 provision is effective October 1, 2022, and applicable to assessment years beginning on or after that date.

§§ 1-5 & 10 — FESTIVAL PERMIT The bill replaces the existing wine festival permit with a new festival permit for all alcoholic liquor manufacturers.

Under the bill, the festival permit allows a festival sponsor to organize and sponsor a festival in Connecticut by inviting eligible manufacturers to participate for up to four consecutive days.

But the bill allows any municipality to prohibit, by ordinance or zoning regulation, festivals in the municipality.

The fee for a festival permit is $75, which is the same fee under current law for wine festival permits.

Under the bill, a “festival sponsor” is an entity operating on a nonprofit basis in this state, including (1) an association, or its subsidiary, that promotes manufacturing and selling alcoholic liquor in Connecticut;

(2) a civic organization operating in this state;

and (3) a Connecticut municipality.

“Eligible manufacturers” are the holders of manufacturerpermitsforspirits;beer;afarmwinery;orwine,cider,and mead.

Fire and Zoning The bill prohibits the Department of Consumer Protection (DCP) commissioner from issuing a permit unless the festival sponsor has the approvals required under local fire and zoning regulations.

Disclosures The bill requires the festival sponsor to disclose to each person who purchases admission, at the time of purchase, all restrictions and limitations for admission, including the maximum number of alcoholic drinks to which the person is entitled.

Sales and Shipping The bill allows any eligible manufacturer to participate in a festival organized and sponsored by a festival sponsor that invites them to participate.

During the festival, the bill allows manufacturers to do the sHB5331 / File No.

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588 following for the alcohol they manufactured.

They may offer free or paid samples or tastings of alcoholic liquor for consumption on the festival premises, subject to certain limitations (e.g., up to two ounces of spirits per patron per day).

Also, unless the participatingeligiblemanufacturerisanout-of-stateshipper’spermittee for beer, the manufacturer may:

1.

sell and directly ship alcoholic liquor to festival visitors that the manufacturer sells to them at the festival if allowed by Connecticut law;

2.

sell, at retail, bottles and other sealed containers of alcoholic liquorforconsumptionoffthefestivalpremises,subjecttocertain limitations (e.g., three liters of spirits per day and nine gallons of beer per day);

and 3.

sell, at retail, alcoholic liquor by the glass or receptacle for consumption on the festival premises, so long as each glass or receptacle is embossed or permanently labeled with the festival’s name and date.

The bill prohibits eligible manufacturers from giving, offering, or selling to any personor entity alcoholicliquor that themanufacturer did not manufacture.

Municipal Options In addition to being able to prohibit these festivals, the bill allows municipalities, by ordinance or zoning regulation, to require that festival sponsors ensure the following:

1.

restrooms, or enclosed portable toilets, are available either on or near the festival premises and 2.

food is available to festival visitors for consumption on the festival premises during all operating hours;

but no ordinance or zoning regulation may require a food purchase with an alcoholic sHB5331 / File No.

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588 beverage.

The bill also allows municipalities, by vote of a town meeting or by ordinance, to reduce the number of hours when retail sales, tastings, or samples may occur (see Hours, below).

Placarding and Remonstrance By law, alcoholic liquor permit applicants must generally give notice of a new permit in the newspaper and place placards visible from the road that include certain information, such as the business’s name and location.

Additionally, any 10 individuals who are at least age 18 may file a remonstrance with DCP about an applicant’s suitability or proposed location, and DCP must then hold a hearing.

The bill exempts festival sponsors and festival permits from the requirements to provide notice and affix and maintain a placard and from remonstrances.

Holding Two Permits The bill also allows a festival permittee to be aholder or backer of one or more other classes of permits.

By law, unless an exception is made, permittees of one class are not allowed to be a permittee of another class (CGS § 30-48(a)).

Hours The bill sets the hours that a festival permittee may sell or provide samples or tastings as follows:

between 8:00 a.m.

and 10:00 p.m.

on Monday through Saturday and between 10:00 a.m.

and 6:00 p.m.

on Sunday.

(These hours generally mirror the hours when a package store may sell.) §§ 6 & 7 — COLLABORATIVE BEER The bill allows a manufacturer permittee for beer, or a Connecticut craft cafe permittee who is also a manufacturer for beer, to sell at retail beer brewed in collaboration with another beer manufacturer for on- or off-premises consumption.

Craft cafe permittees may do so only if they sell one brand of the brewed beer from their premises at a time.

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588 Under the bill, “collaboration” is an arrangement, other than contract brewing or an alternating proprietorship, where a beer manufacturer workswithat least oneother beer manufacturer by, among other things, sharing the beer recipe or at least 49% of the ingredients or labor needed to manufacture the beer.

Current law generally prohibits Connecticut craft cafe permittees from purchasing the same type of alcoholic liquor they manufacture.

The bill allows these permittees that also hold a manufacturer beer permit to purchase the beer they manufacture in collaboration with another beer manufacturer permittee from that permittee.

But, as under existing law, the beer cannot be more than 20% of the craft cafe permittee’s gross annual sales for on-premises consumption.

§ 9 — WPCA CHARGES By law, a WPCA may establishandrevise fair andreasonablecharges for connecting with and using a sewerage system.

When setting these charges for assessment years beginning on or after October 1, 2022, the bill prohibits WPCAs from considering the volume of water consumed by holders of manufacturer permits for beer.

By law and unchanged by the bill, WPCAs, when setting these charges, may consider other factors related to the kind, quality, and extent of use of properties (e.g., building size, number of plumbing fixtures and people using the property, and quality and character of discharge material).

A WPCA may also have minimum charges to connect with and use a sewerage system.

COMMITTEE ACTION General Law Committee Joint Favorable Substitute Yea 14 Nay 3 (03/15/2022) sHB5331 / File No.

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