You asked for an analysis and discussion of an amendment proposed by the Department of Consumer Protection.

SUMMARY OF THE PROPOSED AMENDED BILL

The proposed amended bill establishes a liquor permit for coffee shops. It allows a coffee shop permit holder to sell only coffee drinks enhanced with spirits for on-premises consumption. It requires the beverages to be served by a server (waiter or waitress) to a patron. The law defines "spirits" as a beverage containing distilled alcohol, such as brandy, rum, whiskey, and gin, mixed with water and other substances in solution.

The proposed amended bill defines "enhanced coffee drink" as a four to 16 ounce serving of coffee or coffee-based beverage with up to two ounces of spirits served in a non-disposable container.

The proposed amended bill requires a coffee shop to keep food available for sale regularly to its customers for on-premises consumption (see COMMENT). It provides that a permit holder can meet this requirement by keeping available fresh baked goods, pastries, sandwiches, or other food (see DISCUSSION).

The proposed amendment prohibits anyone under 21 from entering a coffee shop unless the minor is employed or accompanied by their parent, guardian, or spouse who is over the age of 21 (see DISCUSSION).

The bill defines "coffee shop" as a space in a suitable and permanent building that (1) has a public room that is at least 200 square feet and a seating capacity of at least 10 people; (2) is maintained, advertised as, and held out to be a place where coffee and coffee-based beverages are sold for on-premises consumption; (3) is not necessarily used to serve hot meals; (4) does not necessarily have a kitchen or dining room; and (5) does not have sleeping accommodations. The bill requires the permit holder to have an adequate number of employees at all times.

The proposed amended bill sets the annual permit fee at $ 480. The bill sets it at $ 100.

The proposed amended bill requires coffee shops to have an electronically-operated espresso machine that brews coffee by forcing steam through finely-ground darkly-roasted coffee beans. Specifically, it states, "coffee shop permit shall contain an electronically operated commercial expresso machine" (see DISCUSSION).

The proposed amended bill requires coffee shops to have separate toilet facilities for men and women. It authorizes the department to waive the separate facilities requirement (see DISCUSSION).

The proposed amended bill authorizes the department to adopt regulations for the "operation of a coffee shop permit" (see DISCUSSION).

The proposed amended bill sets the same permissible hours of sale for premises operating under a coffee shop permit as for restaurants, cafes, and similar establishments. These are: Monday through Thursday from 9: 00 a. m. to 1: 00 a. m. , Friday and Saturday from 9: 00 a. m. to 2: 00

a. m. , and Sunday from 11: 00 a. m. to 1: 00 a. m. These establishments may stay open to 3: 00 a. m. on New Year's Day.

CHANGES MADE BY THE PROPOSED AMENDMENT

The proposed amendment:

1. restricts coffee shops to selling only enhanced coffee drinks;

2. requires coffee shops to sell food;

3. prohibits anyone under 21 from entering a coffee shop unless they have a job or are accompanied by their parent, guardian, or spouse over age 21;

4. raises the annual permit fee from $ 100 to $ 480;

5. requires coffee shops to have a public room of at least 200 square feet with a seating capacity of at least 10 people;

6. requires coffee shop permits to have an espresso machine;

7. requires coffee shops to have separate toilet facilities for men and women and allows the Department of Consumer Protection to waive this requirement; and

8. allows DCP to adopt regulations "for the operation of a coffee shop permit. "

COMMENT

Selling Food

The proposed amendment inserts the word "only" in the first sentence of the bill. This statement sets the permissible scope of activities for liquor permit holders. By inserting the word "only," the proposed amendment would allow coffee shop permit holders to sell enhanced coffee drinks but not anything else. All other statutory provisions establishing the scope of a liquor permit state "[permit name] shall allow the [scope of activity]. " The underlying concept is that liquor sellers are only allowed to do what the law specifically allows. It is not clear why the amendment uses a different sentence structure.

The limitation conflicts with the next provision in the proposed amendment, which requires permitted coffee shops to keep food available for sale regularly.

DISCUSSION

Selling Food

The proposed amendment requires permitted coffee shops to keep food regularly available for sale. This requirement is similar to a requirement for establishments with a café permit. But the proposed amendment includes a unique requirement. It prohibits permitted coffee shops from selling food for off-premises consumption.

The apparent intent of the provisions relating to food sales is to make certain coffee shops, like those that primarily sell coffee and donuts for off-premises consumption, ineligible for a liquor permit. If so, this can be accomplished by (1) eliminating the insertion of the word "only" in the first sentence and (2) breaking up the first sentence into two and turning the second sentence into a requirement that all enhanced coffee drinks be served by a server to a patron seated at a table or counter for on-premises consumption. This change would also resolve a conflict in the proposed amended bill.

Minors in a Coffee Shop

The proposed amendment prohibits someone younger than 21 from entering a coffee shop unless the minor is employed or accompanied by a parent, guardian, or spouse over the age of 21. The law does not similarly prohibit people younger than 21 from entering other establishments with a liquor permit, such as restaurants or cafes. The change proposed by the amendment is probably unnecessary because the current law that prohibits sales to minors would apply to premises operating under a coffee shop permit.

Further, there is no apparent logic in prohibiting a minor without a job from entering a coffee shop but allowing minors with a job to enter a coffee shop.

Espresso Machines

The provision needs to be rewritten so that the requirement to contain an espresso machine is placed on the shop rather than the permit and to correct the spelling.

Toilet Facilities

The proposed amended bill requires permitted coffee shops to have separate toilet facilities. This requirement is apparently unnecessary because state Liquor Control Act regulations already require this for all establishments selling liquor for on-premises consumption (Conn. Agencies Reg. § 30-A6-23). The regulations authorize the department to waive the separate facilities requirement for hardship. The proposed amended bill authorizes the department to waive the requirement "in its discretion" and does not provide the department with any grounds on which to make the decision.

Regulations

The proposed amended bill's authorization to adopt regulations duplicates the authority the department already has under CGS § 30-6a.

DD: eh