FISCAL NOTE

Date Requested: February 01, 2019
Time Requested: 12:28 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
2954 Introduced SB511
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

Creates New Revenue, Increases Revenue From Existing Sources



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 511 purports to clean up issues that exist in the wine industry and at the agency level. This bill is not a huge revenue generator but does provide the public with more flexibility.
    
    At the federal level alternating wine proprietorships are permitted which would allow an existing farm winery to share its production space, subject to requirements, with another winery as it is getting started in its infancy phase of production. The measure should support some growth in farm wineries by lowering the costs to enter the wine making business.
    
    Permits licensees who obtain a one-day charitable wine license with the limited ability to auction wine from the event, such as a silent auction that benefits the charity. Under current law this is not permitted but appears to occur frequently in practice. This proposal creates license to legitimize the charitable wine auction.
    
    Currently wine bottle sales at a restaurant are not permitted, this bill would permit wine bottle sales at a restaurant when serving food with a meal and allows the patron to serve themselves the wine.
    
    The bill would add Division II and III college stadiums to the list of Division I colleges that are permitted private wine stadium licenses.
    
    The bill would also clarify that the WVABCA has 30 days from when a license is completed to issue or deny a license and has reactivation amount for licensees that fail to renew prior to June 30. The revenue generated may be initially a substantial amount but likely with greater compliance the amount would reduce over time.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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 124,250 62,750 32,000


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 511 is not a huge revenue generator but does provide the public with more flexibility.
    
    Alternating wine proprietorships - perhaps 5 new farm wineries = $250, but may also increase wine liter tax collections and tourism revenue but too speculative to quantify.
    
    One-day charitable wine license with the limited ability to auction wine from the event - revenue from increased wine bottle sales and taxes, too speculative to quantify.
    
    Wine bottle sales at a restaurant when serving food with a meal - perhaps increased wine bottle sales but too speculative to quantify.
    
    Division II and III private wine college stadiums - possibly 4 additional licenses issued - $1,000 and possible increased wine sales and tax revenue, but too speculative to quantify.
    
    Reactivation - if the numbers were the same as last year in year 1 of implementation 820 * 150 = $123,000, year 2 - 410 * 150 = 61,500, year 3 - 205 * 150 = $30,750. Note, the revenue generated may be initially a larger amount but likely greater compliance would reduce the amount over time.
    



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.
    
    SB 511 would provide greater flexibility to licensees, applicants and the public while still responsibly permitting the activities.



    Person submitting Fiscal Note: Anoop Bhasin on behalf of WVABCA
    Email Address: anoop.k.bhasin@wv.gov