Connecticut Seal

General Assembly

File No. 58

    February Session, 2018

House Bill No. 5192

House of Representatives, March 28, 2018

The Committee on General Law reported through REP. D'AGOSTINO of the 91st Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE MACHINES.

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

Section 1. (NEW) (Effective from passage) (a) A permittee authorized pursuant to title 30 of the general statutes to sell alcoholic liquor for on-premises consumption may use an automated machine that, upon activation of a payment card by the permittee, may be operated to dispense beer, cider not exceeding six per cent alcohol by volume and wine to the following: (1) An employee of the permittee who is authorized by law to serve alcoholic beverages, or (2) a person whom the permittee has verified to be twenty-one years of age or older who displays a government-issued identification card that matches the name on the payment card. Such verification that a person is twenty-one years of age or older shall be recorded by the permittee or an employee of the permittee.

(b) An automated machine authorized by subsection (a) of this section shall not dispense a serving of more than thirty-two ounces of beer or cider not exceeding six per cent alcohol by volume or ten ounces of wine before the payment card is reactivated by the permittee or an employee of the permittee.

(c) Not later than October 1, 2018, the Department of Consumer Protection shall, pursuant to section 30-6a of the general statutes, amend the regulations of Connecticut state agencies, in accordance with the provisions of chapter 54 of the general statutes, to: (1) Allow for the use of automated machines by permittees and employees of permittees for the dispensing of beer, cider not exceeding six per cent alcohol by volume and wine pursuant to subsections (a) and (b) of this section, (2) ensure that such beer, cider and wine is not initially dispensed from any such automated machine in a serving of more than one drink to any one person for his or her own consumption at any one time, and (3) ensure that second and subsequent servings of beer, cider and wine from any such automated machine is allowed only after the first serving has been substantially disposed of or consumed by such person.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

GL

Joint Favorable

 

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:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Department of Revenue Services

Various - Potential Revenue Gain

Up to 75,000

Up to 75,000

Note: Various=Various

Municipal Impact: None

Explanation

The bill results in a potential revenue gain by allowing alcoholic liquor permittees who are authorized to serve alcohol for on-premises consumption to use an automated machine to serve beer, certain cider, and wine. It also requires the Department of Consumer Protection to adopt implementing regulations which has no fiscal impact.

This bill results in a potential revenue gain in sales1 and alcoholic beverages taxes to the extent that (1) one or more permittees install automated machines2 and (2) there is an increase in alcohol consumption rather than a shift from currently allowed transactions for alcohol.

For illustrative purposes, if there is a 0.1% increase in alcohol consumption due to the availability of automated machines, there would be a revenue increase of $75,000 annually in sales and alcoholic beverages taxes.

The bill requires the Department of Consumer Protection to adopt implementing regulations and results in no fiscal impact. The Department already enforces liquor laws and regulations in establishments contained within the bill.

The Out Years

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

OLR Bill Analysis

HB 5192

AN ACT CONCERNING CERTAIN ALCOHOLIC BEVERAGE MACHINES.

SUMMARY

This bill allows alcoholic liquor permittees authorized to serve alcohol for on-premises consumption to use an automated machine to serve beer, cider with less than 6% alcohol, and wine.

Under the bill, the automated machine, upon the permittee's activation of a payment card, may be operated to dispense beer, cider, and wine to (1) a permittee's employee who is authorized to serve alcohol or (2) a person the permittee, or presumably his or her employee, has verified to be age 21 or older who shows a government-issued identification card that matches the name on the payment card. (Presumably, when a person purchases a payment card, the permittee will put the purchaser's name on the card.) The permittee or employee must record the verification that the person is over age 21.

Under the bill, automated machines cannot dispense a serving of more than 32 ounces of beer or cider or 10 ounces of wine before the permittee or employee must reactivate the payment card.

By October 1, 2018, the bill requires the Department of Consumer Protection to amend its regulations to (1) allow permittees and their employees to use automated machines to dispense beer, cider, and wine pursuant to the bill, (2) ensure that automated machines do not initially dispense more than one drink at a time, and (3) ensure that a person is only allowed subsequent automated servings after he or she has substantially disposed of or consumed the previous serving.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

General Law Committee

Joint Favorable

Yea

16

Nay

1

(03/15/2018)

TOP

1 Current law requires a diversion of a portion of the sales tax generated into (1) the Special Transportation Fund and (2) the Municipal Revenue Sharing Account beginning in FY 20. The general sales and use tax rate, from which the diversion occurs, remains at 6.35%.

2 Such machines range between $5,000 and $25,000 depending on the size and type.