File No. 332

Senate, April 4, 2011

The Committee on Environment reported through SEN. MEYER of the 12th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING CONNECTICUT WINE FESTIVALS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 30-37l of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) A wine festival permit shall allow the holder of a manufacturer permit for a farm winery, issued pursuant to section 30-16, to participate in a wine festival organized and sponsored by an association that promotes the manufacturing and selling of farm wine in this state or such association's not-for-profit subsidiary. Such association or such association's not-for-profit subsidiary shall not organize and sponsor more than [one] two such wine [festival] festivals in any calendar year. The Commissioner of Consumer Protection shall allow only [one] two such wine [festival] festivals in any calendar year, regardless of the number of such farm winery permittees or such organizing and sponsoring associations or not-for-profit subsidiaries participating in such wine [festival] festivals.

(b) A wine festival permit shall authorize: (1) The sale and shipment of wine manufactured by the farm winery permittee and sold at such wine festival to persons outside the state; (2) the offering and tasting of free samples of wine to visitors and prospective retail customers for consumption on the grounds of the wine festival; (3) the sale at retail of sealed bottles or other sealed containers of wine for consumption off the grounds of the wine festival; and (4) the sale at retail of wine by the glass or receptacle, provided the glass or receptacle is embossed or otherwise permanently labeled with the name and date of the wine festival.

(c) No farm winery permittee may sell, offer or give to any person or entity wine not manufactured by such farm winery.

(d) Only [one] two wine festival [permit] permits may be issued per calendar year pursuant to this section by the Commissioner of Consumer Protection to each holder of a manufacturer permit for a farm winery. A wine festival permit shall not be effective for more than three consecutive days per calendar year. The fee for a wine festival permit shall be seventy-five dollars.

Sec. 2. Section 30-37m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Notwithstanding the provisions of section 30-18a, an out-of-state person or entity holding a valid permit (1) authorizing the manufacturing of farm wine; and (2) issued by another state may obtain an out-of-state entity wine festival permit, to participate in an out-of-state entity wine festival in this state. The Commissioner of Consumer Protection shall only allow [one] two out-of-state entity wine [festival] festivals in any calendar year, regardless of the number of out-of-state entities participating in such [festival] festivals.

(b) An out-of-state entity wine festival permit shall authorize in this state: (1) The sale and shipment of wine manufactured by the permittee and sold at such festival to persons outside the state; (2) the offering and tasting of free samples of wine to visitors and prospective retail customers for consumption on the grounds of the wine festival; (3) the sale at retail of sealed bottles or other sealed containers of wine for consumption off the grounds of the wine festival; and (4) the sale at retail of wine by the glass or receptacle, provided the glass or receptacle is embossed or otherwise permanently labeled with the name and date of the wine festival.

(c) No out-of-state entity wine festival permittee shall sell, offer or give to any person or entity wine not manufactured by such permittee.

(d) No out-of-state entity wine festival permittee shall sell, offer or give to any person or entity wine manufactured by such permittee unless such wine is assigned to a wholesaler permittee in this state.

(e) The holder of an out-of-state entity wine festival permit shall disclose to each person who purchases admission to a wine festival in which the holder is participating, at the time of purchase, any restriction or limitation of such admission, including, but not limited to, the maximum number of glasses or receptacles of wine or brandy to which the purchaser is entitled by admission to the wine festival.

(f) Only [one] two out-of-state entity wine festival [permit] permits may be issued per calendar year pursuant to this section by the Commissioner of Consumer Protection to each person or entity meeting the requirements of subsection (a) of this section. An out-of-state entity wine festival permit shall not be effective for more than three consecutive days per calendar year. The fee for an out-of-state entity wine festival permit shall be seventy-five dollars.

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill is anticipated to result in a General Fund revenue gain of $2,575 - $7,575. Below provides a further explanation.

An estimated General Fund revenue gain of $75 in FY 12 and FY 13 results by allowing for the holding of two wine festivals per year rather than one. The current permit fee for a wine festival is $75. In FY 11 one wine festival was held with sixteen Connecticut wineries participating.

This bill would result in a revenue gain of $2,500 to $7,500 due to increased sales tax revenue associated with the sale of bottles of wine at the additional wine festivals.

The sales estimates above assume the following:

1. the total attendance for the additional wine festivals allowed under the bill would be approximately 5,000;

2. the average bottle of wine sold by Connecticut wineries ranges from $10 to $25.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the number of permits.

OLR Bill Analysis

SB 992

AN ACT CONCERNING CONNECTICUT WINE FESTIVALS.

SUMMARY:

This bill allows both in-state wine festival permittees and out-of-state entity wine festival permittees to participate in two wine festivals, rather than one, in a calendar year.

It increases, from one to two, the number of times in a calendar year (1) an association that promotes the manufacturing and sale of in-state farm wine can organize and sponsor wine festivals and (2) the consumer protection commissioner may issue in-state wine festival and out-of-state entity wine festival permits.

EFFECTIVE DATE: Upon passage

BACKGROUND

Wine Festival Permits

There are two permit types for participating in wine festivals. The in-state wine festival permit allows a farm winery manufacturer permittee to participate in wine festivals sponsored by an association or its not-for-profit subsidiary promoting the manufacture and sale of farm wine in this state.

The out-of-state entity wine festival permit allows an out-of-state person or organization holding a valid permit issued by another state authorizing the manufacture of farm wine to participate in an out-of-state entity wine festival held in Connecticut.

Related Bill

The General Law Committee reported out SB 866 (File 18), which makes the same changes as this bill.

COMMITTEE ACTION

Environment Committee

Joint Favorable