FISCAL NOTE

Date Requested: March 08, 2017
Time Requested: 12:47 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
2366 Introduced HB2820
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This bill, as drafted, purports to repeal certain code sections and abolish the alcohol beverage control commissioner and transfer those duties to the lottery commission.
    
    The bill, as drafted, purports to further transfer the duties of the WVABCA, with respect to liquor, to wine and beer distributors for "free".
    
    The bill as drafted, fails technically and structurally to accomplish its stated purpose. The flawed bill could cease all liquor sales in the state.
    
    Thus, the bill, as drafted, could result in a negative fiscal impact with a massive loss of revenue to the state from the ceasing of liquor sales and no reduction in costs.
    
    This bill may need a Fiscal Note from WV Lottery.
    
    The bill, as drafted, purports to levy a tax on liquor in a section of code not dealing with taxation.
    
    The technical flaws in the bill make it too difficult to provide any numbers.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The bill, as drafted, is too technically and structurally flawed to provide any estimates.
    
    The bill, as drafted, would abolish of the alcohol beverage control commissioner's office but since such action is technically and structurally incorrect, there is no costs savings.
    
    The bill, as drafted, transfers WVABCA functions to Lottery and offers no costs savings since the Lottery's functions are substantially different from the WVABCA with minimal overlap. Thus, WVABCA staff and administration would be needed to accomplish the agency's statutory and regulatory responsibilities. Again, this bill, as drafted, offers no cost savings.
    
    The bill as drafted, fails technically and structurally to accomplish its stated purpose. The flawed bill could cease all liquor sales in the state.
    
    Thus, the bill, as drafted, could result in a negative fiscal impact with a substantial loss of revenue to the state.
    
    The bill, as drafted, purports to levy a tax on liquor in a section of code not dealing with taxation.
    
    The technical and structural flaws in the bill make it too difficult to provide any numbers.
    



Memorandum


    The bill, as drafted, fails to accomplish its stated purpose and there are too many technical and structural defects.
    
    Despite the numerous defects, the bill, as drafted, appears to offer no costs savings and could result in the substantial loss of revenue to the state.



    Person submitting Fiscal Note: Anoop Bhasin,General Counsel on behalf of WVABCA
    Email Address: Anoop.K.Bhasin@wv.gov