RÉSUMÉ DIGEST
SB 18 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 would provide 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 would provide 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 would provide 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 would provide 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.
Would become effective upon signature of the governor or lapse of time for gubernatorial
action.
(Proposed to add R.S. 26:71(A)(8) and 271(A)(7))
VETO MESSAGE: "Please be advised that I have vetoed Senate Bill 18 of the Second
Extraordinary Session.
This bill purported to provide financial relief for certain alcohol manufacturer and retail sales
permit holders by allowing a permit holder's 2021 permit fees to be reduced on a pro rata
basis if that permit holder was required to temporarily close operations pursuant to any of the
governor's COVID-19 proclamations. The language of the bill is unclear on what "required
to temporarily close operations" means. Even during the most restrictive Stay at Home
orders, businesses holding these permits were only required to be closed to the public and
in fact were able to be open for other business purposes. Although well-intentioned, clear
reading of the language would likely not provide the relief to businesses that Senator Cathey
sought through passage of the bill. Furthermore, assuming for argument's sake that the
language could be construed so liberally as to allow permit holders to apply current year
permit fees to next year's permit renewals, the Office of Alcohol and Tobacco Control would
likely be heavily impacted because they are a self-generated revenue funded agency and
would not collect revenue that their current budget is based upon.
I have, however, signed into law Senate Bill 72 of the Second Extraordinary Session, which
became Act 60. This bill provides an income tax credit based on permit amounts for those
businesses Senator Cathey was attempting to provide aid for in Senate Bill 18."