Louisiana 2020 2020 2nd Special Session

Louisiana Senate Bill SB18 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Alan Miller.
DIGEST
SB 18 Reengrossed 2020 Second Extraordinary Session	Cathey
Present law provides that a Class A-General retail (bar) permit is issued only to a retail outlet where
beverage alcohol is sold for consumption on the premises by paying customers, and:
(1)Equipped with a permanent wet bar equipped with a nonmovable sink and a backbar or
similar equipment for public display and to inform the public of brands and flavors offered
for sale.
(2)Staffed by a bartender whose primary duty is to open and/or prepare beverage alcohol
products for consumption on the premises by paying customers, or prepared with an
appropriate lid or cover on the container for take out service.
(3)Issued only to an establishment where no person under the age of 18 years is allowed on the
premises.
Present law defines a "microbrewery" as a retail establishment wherein beer and other malt
beverages are brewed in small quantities, not to exceed 12,500 barrels per year, and where such
beverages are sold at retail for consumption on or off the licensed premises.
Present law defines an "in-state manufacturer" or "brewer" as any person who engages in the making,
blending, rectifying, brewing, or other processing of alcoholic beverages in Louisiana for shipments
to licensed wholesale dealers within the state.
Present law defines a "microdistillery" as a retail outlet that engages in the distilling, making,
blending, rectifying, or processing of any alcoholic beverage in Louisiana in quantities of not more
than 12,000 gallons per year for retail sale for consumption on or off the licensed premises.
Present law provides that before operating as a bar, a brewery tap room, or a microdistillery
providing retail consumption of alcohol, all persons are required to obtain from the commissioner
of the office of alcohol and tobacco control (ATC), a proper permit to conduct each separate business
and pay the commissioner, as applicable:
(1)A fee of $200 per bar location in any city and $100 per bar location in a town, village, or
unincorporated place for each year the permit is valid.
(2)A fee of $1,000 for in-state manufacturers (breweries) and microdistilleries.
Present law further requires a fee of $100 for each $100,000 of gross retail liquor sales (after the first
$100,000 of gross retail liquor sales), up to $600. Proposed law provides that notwithstanding present law, a permit holder that timely paid its permit
fees due to the commissioner during the 2020 calendar year, shall have its permit fees due during the
2021 calendar year reduced on a pro rata basis for the number of days in calendar year 2020 that the
permit holder was required to close operations due to COVID-19 emergency proclamations.
Proposed law provides that notwithstanding present law, a permit holder that timely paid its permit
fees due to the commissioner during the 2020 calendar year, subsequently surrendered its permit to
the commissioner during the 2020 calendar year, and was in good standing with the commissioner
at the time of the surrender, shall be issued a refund in the amount paid, but reduced on a pro rata
basis for the number of days in calendar year 2020 that the permit holder was required to close
operations due to COVID-19 emergency proclamations, no later than December 31, 2020.
Present law defines "beverages of low alcoholic content" as alcoholic beverages containing not more
than six percent alcohol by volume.
Present law requires that a permit holder dealing in malt beverages or beverages of low alcoholic
content obtain from the commissioner a permit to conduct each separate business and pay a permit
fee for each location in the amount of $70 for bars, and $1,000 for microbreweries and in-state
manufactures (breweries).
Proposed law provides that notwithstanding present law, a permit holder that timely paid its malt
beverages or beverages of low alcoholic content permit fees due to the commissioner during the
2020 calendar year, shall have its permit fees due during the 2021 calendar year reduced on a pro rata
basis for the number of days in calendar year 2020 that the permit holder was required to close
operations due to COVID-19 emergency proclamations.
Proposed law provides that notwithstanding present law, a permit holder that timely paid its malt
beverages or beverages of low alcoholic content permit fees due to the commissioner during the
2020 calendar year, subsequently surrendered its permit to the commissioner during the 2020
calendar year, and was in good standing with the commissioner at the time of the surrender, shall be
issued a refund in the amount paid, but reduced on a pro rata basis for the number of days in calendar
year 2020 that the permit holder was required to close operations due to COVID-19 emergency
proclamations, no later than December 31, 2020.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 26:71(A)(8) and 271(A)(7))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the original bill
1. Adds breweries, microbreweries, and microdistilleries that offer on-site retail
consumption, to be eligible for future reduced permit fees, or partial refunds from
ATC. 2. Provides that the waiver or refund is subject to a pro rata reduction based on the
number of days in calendar year 2020 that the permit holder was required to close
operations due to COVID-19 emergency proclamations.