Researcher: DC Page 1 5/19/23 OLR Bill Analysis sHB 6241 (as amended by House "A")* AN ACT CONCERNING FARM WINERY PERMITTEES. SUMMARY This bill allows farm winery permittees to sell their product at up to three retail outlets under certain conditions. It also allows those who sustain a significant loss of fruit to have the lost crop used to satisfy the law’s average crop requirement. Under current law, permittees may sell the wine, brandies, grappa, and eau-de-vie they manufacture on their permit premises. The bill allows permittees, with prior Department of Consumer Protection (DCP) approval, to also sell these products at up to three retail outlets that must: 1. be located on land that the winery backer (e.g., proprietor) leases or owns and the permittee uses to grow fruit and produce alcoholic beverages the winery exclusively manufactures and 2. not be located within a grocery store (see BACKGROUND) or any other retail outlet unless state law allows otherwise. By law, farm winery permittees must grow an average crop of at least 25% of the fruit used to make their wine on land they control. This “average crop” is generally defined each year as the average yield of the permittee’s two largest annual crops out of the preceding five years. Under the bill, permittees who have a significant loss of their fruit crop must, by December 31 of the loss year, certify the loss to the DCP commissioner as he prescribes. If the commissioner determines that the permittee was not at fault for the loss, then that year’s lost crop is deemed to satisfy the average crop requirement. For the same purpose, he must also determine whether a qualitative or quantitative reduction in crop yield constitutes a significant loss. 2023HB-06241-R010798-BA.DOCX Researcher: DC Page 2 5/19/23 *House Amendment “A” principally (1) requires the additional retail outlets to be on land both used to grow fruit and produce alcohol, rather than either, as in the underlying bill; (2) prohibits the use of a retail outlet that is located in another retail outlet; (3) lessens the loss threshold from total to significant loss; and (4) requires the DCP commissioner, rather than the agriculture commissioner, to determine loss. EFFECTIVE DATE: Upon passage BACKGROUND Grocery Stores For purposes of the bill, a grocery store is any store commonly known as a delicatessen, food store, grocery store, or supermarket and (1) that is primarily engaged in the retail sale of various canned goods and dry goods such as coffee, flour, spices, sugar, and tea, whether packaged or in bulk, regardless of whether the store sells (a) fresh fruits and vegetables or (b) fresh, prepared, or smoked fish, meat, and poultry, and (2) does not include any store that is primarily engaged in the retail sale of bakery products, candy, nuts and confectioneries, dairy products, eggs and poultry, fruits and vegetables, or seafood. COMMITTEE ACTION General Law Committee Joint Favorable Substitute Yea 22 Nay 0 (03/07/2023)