FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 01:07 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
3159 Introduced HB3002
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 purports to permit applicants to obtain a one year license fair and festival license which would cover an unlimited number of events.
    
    The W. Va. Const. Art VI, 46, prohibits the consumption of intoxicating liquors in public.
    
    The short term 10 day fair and festival was created to permit wine events to be held, as approved by a municipality, in the public under the argument that such public events were temporary and thus not a permanent violation of the constitutional requirements.
    
    This bill would remove the "temporary" nature of the fair and festival and make it a permanent annual license which would be problematic as noted above.
    
    A license is issued to an applicant who, if suitable, becomes a licensee and the licensee is for a licensed premises. many outdoor fairs and festivals have a temporary nature or structure and some are hold on closed city streets. The practicality of permitting the area that would otherwise be a public street for year-round alcohol sales would be problematic and akin to setting up an alcohol stand like a lemonade stand on that public street. Again, this would be problematic under the constitution.
    
    The WVABCA does have a charitable one day license for non-profit 501(c)(3) entities to reduce the financial cost of the license to charitable vents
    
    This bill would have a negative impact on revenues.
    
    



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 -35,000 -35,000 -35,000


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


    For calendar year 2016, the WVABCA processed 167 fair and festival licenses of which 55 were entities that received multiple licenses.
    
    The 55 entities with multiple licenses generated almost $35,000 of revenue. If all such licenses obtained this license, there would be a total loss of this revenue. There likely no costs savings as the venue would still need to be inspected prior to every event. Likely, costs would stay the same or increase will revenues decreased. Revenues could decrease more in future years as the number of multiple event holders increase (since there would be no additional fee).
    
    The WVABCA has received very few comments on a reduced fee for licenses but has received comments for permanent outdoor alcohol licenses which again would be in conflict with the state constitution.
    
    The 10 day license works for the majority of licensees and even the majority of licensees with multiple events.



Memorandum


    As noted above, state constitutional issues, operational issues, and a negative revenue impact.



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