FISCAL NOTE
Date Requested: January 17, 2018
Time Requested: 11:32 AM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1228 |
Introduced |
SB306 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Special
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
SB 306 attempts to circumvent the WVABCA's license structure and WV's 3 Tier System by exempting what it defines as "West Virginia-made wine" from having to obtain a license for off-premises sales and consumption of wine.
This measure could decrease wine license revenue and also it is unclear whether the unlicensed grocery store business would still pay the appropriate sales and municipal tax, if not, there would be an additional loss of tax revenue.
The West Virginia Legislature has authorized the WVABCA to issue licenses for the sale and service of wine. An exemption from licensure runs counter to the requirement to license businesses. Businesses desiring to sell wine are not exempt from licensure.
Note, the WVABCA license for table wine is only $150 per year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
SB 306 attempts to circumvent the WVABCA's license structure and WV's 3 Tier System by exempting what it defines as "West Virginia-made wine" from having to obtain a license for off-premises sales and consumption of wine.
This measure could decrease wine license revenue and also it is unclear whether the unlicensed grocery store business would still pay the appropriate sales and municipal tax, if not, there would be an additional loss of tax revenue.
The West Virginia Legislature has authorized the WVABCA to issue licenses for the sale and service of wine. An exemption from licensure runs counter to the requirement to license businesses. Businesses desiring to sell wine are not exempt from licensure.
Note, the WVABCA license for table wine is only $150 per year.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
US case-law has developed (US v. Granholm and other cases) clearly stating that it is illegal to discriminate in favor of in-state interests at the expense of out-of-state interests. SB 306 is clearly favoring in-state wines at the expense of out-of-state wines which would amount to discrimination.
Perhaps an alternative would be for the Agriculture Department or an Economic Development program to provide some type of grants to grocery stores wishing to obtain the WVABCA's wine retailer license for the already low $150 license fee.
The West Virginia Legislature has authorized the WVABCA to issue licenses for the sale and service of wine. An exemption from licensure runs counter to the requirement to license businesses. Businesses desiring to sell wine are not exempt from licensure. Even creating a smaller license fee for grocery stores only selling WV wine would be discriminatory in nature.
SB 306 also creates a new definition of West Virginia-made wine which does not exists anywhere else in the chapter or the article of the Code.
SB 306, as drafted, is problematic.
Person submitting Fiscal Note: Anoop Bhasin on WVABCA's behalf
Email Address: Anoop.K.Bhasin@wv.gov