FISCAL NOTE

Date Requested: January 25, 2018
Time Requested: 01:56 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
2083 Introduced SB374
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

Creates New 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 374 would have a positive impact on state revenues from increased license fee revenue but also from the economic development and tourism associated with alcho-tourism (distilleries, wineries and breweries) and fairs and festivals. SB 374 could be utilized by licensees to conduct tasting events for in-state and out-of-state distilleries, wineries/farm wineries and brewers/resident brewers who conduct events at locations near their production facilities or around the state at many of the great venues in the state.
    
    SB 374 endeavors to create a fair and festival license that permits liquor, wine and beer to sold on the premises of the proposed fair or festival. The WVABCA currently has a beer fair and festival license ($250 beer license fee) and a wine fair and festival license ($250 wine license fee). SB 374 would permit a licensee to sell and serve liquor, wine and beer in a defined premises at a private fair and festival for a license fee of $750 (essentially an additional $250 to include liquor from the license fees of the beer and wine fair and festival licenses).
    
    This temporary license could be issued for one day or up to 10 consecutive days, would be limited to a maximum of 10 separate events per year/per applicant, required to have freshly prepared food, required to have county/municipal approval, required to have adequate restrooms (including portable restrooms), utilize a WVABCA approved identification and carding system (such as mandatory carding) and would only be issued to licensee's in good standing with the state and the WVABCA.
    
    The WVABCA frequently receives requests from distillers and the public for different events such as industry dinners, farm-to-table dinners, kick-off campaigns for a new products, weddings, receptions and other private events.



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 87,200 87,200 87,200


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.
    
    
    The WVABCA Licensing, Wine and IT Divisions provided numbers that the WVABCA issued approximately 130 beer fair and festival licenses, 17 wine fair and festival licenses, 57 beer and wine fair and festivals, and 93 one day charitable wine licenses, for a total of 297 fair and festivals.
    
    SB 374, if passed, could potentially generate license fee revenue, however it is more likely that the ancillary revenue impact of events surrounding alcho-tourism and fairs and festivals would be greatly increased.
    
    Using a rough estimate that 40% of the 297 current fair and festival events would switch to the new private fair and festival license, could result in 119 private fair and festival events with license revenue of $87,200. This number could likely increase as more events and more people take advantage of this new license.



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 374 is a WVABCA requested bill.
    
    SB 374 meets the WVABCA needs for responsible modernization of WVABCA licenses that can have a tangible economic impact to tourism and fairs and festivals in West Virginia.
    



    Person submitting Fiscal Note: Anoop Bhasin on WVABCA's behalf
    Email Address: Anoop.K.Bhasin@wv.gov