1 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M. CHAIRPERSONS: Senator James Maroney, Representative Michael D'Agostino SENATORS: Kissel, Osten, Winfield, Witkos REPRESENTATIVES: Ackert, Allie-Brennan, Arconti, Candelaria, Cheeseman, D'Amelio, Gibson, Hayes, Luxenberg, Riley, Rutigliano, Winkler REP. D’AGOSTINO (91ST): Welcome, everyone, to the public hearing of the General Law Committee of the Connecticut General Assembly. I see our Members are here. Thank you all for joining. And just a few things, I know we've got a lot of people signed up to speak today or probably monitoring, if you haven’t been through one of these before, there's an order of speakers that our Clerk has circulated that's posted online and our Clerk will - our Clerk, Samuel, will let people into the Committee meeting to speak as they’re announced and he will announce each successive speaker. And Sam, if you could let us know who's following the current speaker when you let the next person in, that would be great so they can be prepared to be online once we're done with the speakers. So, that's how it will work. Today promises to be a -- just in one day -- I had a couple of comments I wanted to just make before we started that I hope will help streamline and focus everyone's testimony to say because I know there's a lot going on with these particular Bills. I just wanted to mention a few things before we got started. I’ve heard a number of different things about the Bills that we’re considering today. I want to make it perfectly clear on a few things. We are not discussing today, nor have we proposed 2 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M. the sale of liquor in grocery stores or so-called big-box stores like Walmart, or Target, or Costco. That's not on our agenda, that's not on our Bill. I'm not sure where that's coming from. With respect to the proposal of wine in grocery stores, we've heard a lot on this and I wanted to note for the Committee Members and also for the public that since we released the Bill, we've had the benefit of some further legal research that's been done, because the question has been asked about Connecticut wine in grocery stores. We cannot dictate that stores sell only Connecticut wine. That would violate the US Constitution. However, we can consider a law that says that small manufacturers of wine, those who produce less than, say, 100,000 gallons a year, we can require shelf space for those wines -- 100% shelf space, 50% shelf space if we proceed with wine in grocery stores for those small manufacturers and of course, that would encompass our Connecticut wineries as well as others but certainly it would be easier for local grocery stores to carry local Connecticut wine should we impose that kind of volume limit on what can be sold in grocery stores. So, the Committee is working on language that I expect to have available for this whole Committee to discuss. It's not in the Bill now, but it is being worked on that particular volume on it, in which we do think at the end of the day, would certainly help our local Connecticut vineyards. I know some of them signed up to testify today, so I wanted to flag that issue. With respect to the big-box store proposal that's on the agenda today, I want to be perfectly clear, because it's a big Bill, and I know it's kind of in the weeds for Committee Members who know this, but also the public. The proposal in the Bill only allows a larger store like a Costco to sell beer and it's means toward if that store already has a 3 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M. package store permit. There are a handful -- for example, Costco or BJ’s that have separate package stores adjacent to their larger store where there's a separate entrance. The proposal in the Bill today only allows beer to be sold in the larger footprint, the larger store if that store already has a package store permit. Nothing in Connecticut law prevents a BJ’s, or a Costco, or Target from opening a package store, pursuant to our regulations. That is all that this proposal does. It’s not a writ large proposal to allow beer in every large package store. That's how this is drafted. Finally, there's a separate proposal on the agenda today that a lot of Committee Members have asked for on a bipartisan basis -- to extend, to codify the Governor's Executive Order that allows for example, restaurants to deliver along with food a sealed container of wine, or beer, or a cocktail. This has been one of those adjustments that the Governor made during the pandemic that has been well-received by certainly consumers and also the industry to help them tremendously. The law today extends that for a certain period of time, with a Sunset provision which we can talk about whether we make permanent or not down the road. The issue has come up with respect to beer manufacturers or wineries, they've also been able to deliver as well during the pandemic -- deliver their products. And they've adjusted 12% brewing company, for example in North Haven near me, has repurposed some of its bartenders to do delivery. The requirement that those breweries and wineries all deliver substantial food is not in our law. The liquor law that we have passed does not require them to serve substantial meals, because they don't have restaurant facilities. They can do that if they want to, but they don't have to. 4 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M. That requirement of a substantial meal component comes from the Executive Order. We are all acutely aware on this Committee that breweries and wineries do not typically have food preparation facilities. So, we are looking at language that will recognize that fact. And should we extend this order, enable them to continue to deliver their products wine or beer without a food requirement on that delivery. That's not in the Bill that was proposed, but it is something that we are all acutely aware of, that again, has been raised in a bipartisan basis by a number of legislators to extend these adjustments that have enabled these businesses to survive and we want to continue to do. So, I wanted to be very clear about a number of things that are being proposed and that we are considering with amendments to this Bill and hopefully that will help sharpen some of the testimonies today. With that, let me call in our speaker which is Commissioner Michelle Seagull of the Department of Consumer Protection. Commissioner, welcome. Thank you for joining us this morning. CMMR. MICHELLE SEAGULL: Good morning. Thank you for inviting me to testify today. Yes, to begin, thanks, Senator Maroney, Senator Witkos, Representative D'Agostino, Representative Rutigliano, honorable Members of the General Law Committee for giving me this opportunity to testify on House Bill 6101, AN ACT CONCERNING VARIOUS ISSUES RELATED TO THE LIQUOR CONTROL ACT. This Bill does a lot of different things, many of which were requested by the Department. A lot of those are sort of minor and technical, but we thank you for including them and agreeing to raise them in your broader Omnibus Bill. The details of the changes we've requested are included in my written testimony. In the interest of time, I won't repeat all those there 5 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M. Overall, most of the fixes are either intended to help fully enact Public Act 1924 from now. I guess it's been a couple of years. For example, removing some references to obsolete permits, putting in the new permit names, things like that, number of others are to help us streamline our processes or to clarify in the law some of what's already happening to make that clear. Some of the more substantive changes, extending the deadline for when investigations need to be disclosed. We want to make that consistent with disclosure deadlines and the Unfair Trade Practices Act, Freedom of Information Act allows wholesalers to offer free samples to their members or staff on their premises. And finally, I did want to know with regard to which was just discussed, Section 69, that's the one that modifies the Executive Order related in delivery of drinks. Right now, it does -- after three years, we would just recommend removing that Sunset provision. We think it would create some confusion in the marketplace if all of a sudden in three years, all those practices [inaudible] some compliance and enforcement challenges. But with that I will be happy to answer any questions you have either about our provisions or others in the Bill. Thank you again for having me. REP. D’AGOSTINO (91ST): Thank you very much. We appreciate your [inaudible] the Bill. Questions from Committee Members? Senator Witkos, please. SENATOR WITKOS (8TH): Thank you, Mr. Chairman. Good morning, Commissioner. CMMR. MICHELLE SEAGULL: Good morning. SENATOR WITKOS (8TH): Just a question on the -- how does the process work now if a restaurant is delivering a closed container to a patron? And is there a sign off or a testament that they’re over the age of 21? 6 February 4, 2021 ib/rr GENERAL LAW COMMITTEE 9:30 A.M.