SB 265 — AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE SYSTEMS.

Senate General Assembly RaisedFile Bill No.

26513 January Session, 2021 LCOSenate Bill No.

1325265 ReferredSenate, toMarch 4, 2021 The Committee on GENERALGeneral LAWLaw Introducedreported by:through SEN.

(GL)MARONEY ANof ACTthe CONCERNING14th CERTAINDist., ALCOHOLICChairperson BEVERAGEof SYSTEMS.the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE SYSTEMS.

(b) A self-pour automated system authorized by subsection (a) of this section shall not dispense a serving of more than thirty-two ounces of beerSB265 or/ ciderFile not exceeding six per cent alcohol by volume or ten ounces LCO 1325 \\PRDFS1\SCOUSERS\KEHOET\WS\2021SB-00265-R01-1 of 2 SB.docx Raised Bill No.

26513 of1 wineSB265 beforeFile theNo. payment card is reactivated by the permittee or an employee of the permittee.

13 beer or cider not exceeding six per cent alcohol by volume or ten ounces of wine before the payment card is reactivated by the permittee or an employee of the permittee.

2 from passage New section GL Joint Favorable LCOSB265 1325/ {\\PRDFS1\SCOUSERS\KEHOET\WS\2021SB-00265-File 2No. of 2 R01-SB.docx }

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13 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 22 $ FY 23 $ Department of Revenue Services Various - Up to Up to Potential 75,000 75,000 Revenue Gain Note:

Various=Various Municipal Impact:

None Explanation The bill results in a potential revenue gain of up to $75,000 annually by allowing alcoholic liquor permittees who are authorized to serve alcohol for on-premises consumption to use an automated machine to serve beer, certain cider, and wine.

There is a potential revenue gain in sales and alcoholic beverages taxes to the extent that:

(1) one or more permittees install automated machines and (2) there is an increase in alcohol consumption rather than a shift from currently allowed transactions for alcohol.

For illustrative purposes, if there is a 0.1% increase in alcohol consumption due to the availability of automated machines, there would be a revenue increase of $75,000 annually in sales and alcoholic beverages taxes.

Section 2 requires the Department of Consumer Protection to adopt Current law requires a diversion of a portion of the sales tax generated into (1) the Special Transportation Fund and (2) the Municipal Revenue Sharing Account beginninginFY22.Thegeneralsalesandusetaxrate,fromwhichthediversionoccurs, remains at 6.35%.

2Such machines range between $5,000 and $25,000 depending on the size and type.

SB265 / File No.

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13 regulations regarding alcoholic beverage machines and results in no fiscal impact because the department has the expertise to meet the requirements of the bill.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

SB265 / File No.

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13 OLR Bill Analysis SB 265 AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE SYSTEMS.

SUMMARY This bill allows alcoholic liquor permittees authorized to serve alcohol for on-premises consumption to use a self-pour automated machineto serve beer, cider withup to 6%alcohol by volume, andwine.

Under the bill, the automated machine, upon the permittee’s activation of a payment card, may be operated to dispense beer, cider, and wine to a (1) permittee’s employee who is authorized to serve alcohol or (2) person who shows a government-issued identification card that matches the name on the payment card and is verified to be age 21 or older by the permittee, or presumably his or her employee.

The permittee or employee must record the verification that the person is at least age 21.

Under the bill, automated machines cannot dispense a serving of more than 32 ounces of beer or cider or 10 ounces of wine before the permittee or employee must reactivate the payment card.

The bill also requires the Department of Consumer Protection to amend its regulations by October 1, 2021, to (1) allow permittees and their employees to use automated machines to dispense beer, cider, and wine pursuant to the bill;

(2) ensure that automated machines do not initially dispense more than one drink at a time;

and (3) ensure that someone is only allowed subsequent automated servings after he or she substantially disposes of or consumes the previous serving.

Current regulations prohibit using an alcoholic liquor self-service system, where a customer serves himself or herself, except as allowed SB265 / File No.

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13 under a hotel guest bar permit (Conn.

Agencies Regs., § 30-6-A28(c)).