Louisiana 2015 2015 Regular Session

Louisiana House Bill HB233 Comm Sub / Analysis

                    Adams	HB No. 233
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
ALCOHOLIC BEVERAGES:  Authorizes the permitting and operation of
microdistilleries in Louisiana
DIGEST
Abstract:  Establishes a microdistillery permit for holders of a Retailers Class A permit and
provides relative to fees and permit requirements. 
Present law provides for definitions relative to alcoholic beverages.
Proposed law retains present law and adds definitions for the following:
(1)"Microdistiller" means any person who operates a microdistillery.
(2)"Microdistillery" means a retail outlet where a microdistiller engages in the distilling,
making, blending, rectifying, or processing of any alcoholic beverage in La. in
quantities of not more than 12,000 gallons per year for retail sale and consumption
on or off the licensed premises.
Proposed law establishes a microdistiller permit of $1,000, authorizes the holder of a
Retailers Class A permit to obtain such permit, and further provides that alcoholic beverages
sold by a microdistiller are taxed at the same rate and in the same manner as all other
alcoholic beverages. 
Proposed law prohibits the holder of a microdistiller permit from selling the manufactured
beverages at wholesale or to any wholesale dealer or from selling to any other licensed retail
dealer.
Proposed law authorizes a microdistiller to reuse alcoholic beverage containers in connection
with distilling and bottling operations.
Proposed law requires a microdistiller to obtain approval from the state fire marshal prior to
distilling operations.
Present law provides requirements to be considered a restaurant establishment for the
purposes of issuing "R" permits for liquor licenses.
Proposed law retains present law and requires a restaurant establishment to no less than 500
square feet dedicated to the exclusive use of the applicant's or licensee's business.  Proposed
law authorizes the commissioner to waive the requirement for any building listed as a
historic building on an official registry or located withing an officially designated historic
district.
Proposed law authorizes the commissioner to waive all state application fees or provide an
equal credit to an applicant's account when a permit is not issued within three business days
of receipt of a fully and properly completed application.
Present law provides relative to the content requirements of an application for permit.
Proposed law retains present law except that it removes requirement that the original and
renewal application be accompanied by a signed sales tax clearance from the collection
agency in the parish which is required to be processed within seven days and removes
relative provisions of present law regarding the authority for the commissioner to withhold
the permit.
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Prepared by Cathy R. Wells. Present law provides relative to the submission requirements for applications.
Proposed law retains present law and further requires the commissioner to verify that the
applicant does not owe any delinquent sale taxes, penalties, or interest to the political
subdivision in which the business is located. Also authorizes the commissioner to waive state
application fees or provide an equal credit to an applicant's account when a permit is not
issued within three business days of receipt of a fully and properly completed application.
Present law provides relative to qualifications of applicants for permits.
Proposed law retains present law and extends the prohibition of being convicted or having
a judgment of court rendered against a client involving the service of alcoholic beverages.
Present law provides exceptions relative to the distribution through wholesalers for alcoholic
beverages produced or manufactured inside or outside the state.
Proposed law retains present law and extends the exception to microdistilleries.
Present law requires the commissioner to annually conduct random, unannounced inspections
at locations where tobacco products are sold or distributed. 
Proposed law retains present law and further requires the commissioner to annually conduct
random, unannounced inspections at locations where alcoholic beverages, alternative
nicotine, vapor products, or tobacco products are sold, served, or distributed. 
Present law authorizes persons under the age of eighteen to be enlisted by employees of the
office of alcohol and tobacco control to test compliance, but such persons may be used only
if the testing is conducted under the direct supervision of such employees and written
parental consent has been provided.
Proposed law retains present law but requires parental consent only if the person is under
eighteen years of age.
Present law requires any person under the age of eighteen to either carry the person's own
identification showing the person's correct date of birth or carry no identification. 
Proposed law requires any person under the age of eighteen or twenty-one to either carry the
person's own identification showing the person's correct date of birth or carry no
identification. 
Present law requires an undercover operative to present their identification when requested
by a seller of server and to truthfully answer any questions about the person's age.
Proposed law provides, except where expressly authorized in writing by the commissioner
in furtherance of the objectives of law any other use of persons under the age of eighteen or
twenty-one to test compliance with the provisions of law or any other prohibition of like or
similar import shall be unlawful and the person or persons responsible for such use shall be
subject to the penalties prescribed in present law. 
(Amends R.S. 26:2(13-24), 71(A)(3)(d), 71.1(4)(a), 73(C)(1)(e), 78(A), 79, 80(A)(8), 86,
142, 271.2(4)(a), 272(C)(1)(e), 278(A), 279, 280(A)(8), 283, and 793(C)(1); Adds R.S.
26:2(25) and (26), 71(A)(3)(e), and 71.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Judiciary to the original
bill:
1. Make technical changes.
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Prepared by Cathy R. Wells. 2. Authorize microdistillers of low and high alcoholic content to reuse alcoholic
beverage containers in distilling and bottling operations.
3. Require the microdistiller of low and high alcoholic content to obtain approval
from the fire marshal prior to distilling operations.
4. Remove provisions relative to requirements to submit a sales tax clearance with
an original or renewal application for low and high alcoholic content permits and
the related provisions requiring the commissioner to withhold the permit.
5. Provide an exception for microdistillers regarding the production or
manufacturing of alcoholic beverages produced or manufactured inside or outside
the state.
6. Require the commissioner to verify that an applicant of a low and high alcoholic
content permit does not owe the political subdivision in which the business is
located any delinquent taxes, penalties, or interest.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the
reengrossed bill
1. Adds provisions authorizing the commissioner to waive certain square footage
requirements for restaurants located in historic buildings on an official registry
or located within an officially designated historic district.
2. Adds provisions authorizing the commissioner to waive all state application fees
or provide an equal credit to an applicant’s account when a permit is not issued
within three business days of receipt of a fully and properly completed
application.
3. Adds provisions relative to the usage of undercover operatives under the age of
eighteen or twenty-one to ensure compliance with laws prohibiting the sale or
service of alcoholic beverage, tobacco, alternative nicotine, or vapor products to
underage persons.
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Prepared by Cathy R. Wells.