FISCAL NOTE

Date Requested: February 12, 2019
Time Requested: 12:55 PM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
3108 Introduced HB3031
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

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. This bill appears to be the same as SB 561. The bill permits the WVABCA to request the assistance of local (county and municipal) law enforcement when needed by WVABCA enforcement Agents which is consistent with current practices of requesting WV State Police assistance. The bill clarifies that consumption of alcoholic liquors in public is unlawful (current code states this but now the code will more clearly state that BYOB’s are illegal. SB 561clearly restates that West Virginia licensees can only sell liquor by the drink and prohibition on liquor bottle sales in bars, but does permit certain wine bottle sales. SB 561 also permits pre-mixing alcohol in frozen drink machines which is not currently permitted and requires certain cleaning of the machine. The bill creates a private fair and festival license for liquor wine and beer sales at a festival, creates a private hotel license and creates a private 9-hole golf course license for more flexibility in licensing. The bill permits a private resort hotel to have inner-connection with a resident brewer who has a brewpub. The bill permits a license privilege for certain licensees to operate a connected but separately operated Class A on-premises license and a Class B off-premises license when owned by the same entity. The bill provides a 30-day requirement to issue or deny a completed license application and creates a reactivation amount for licensees who fail to timely file their renewal application and pay their annual license fees. The bill clarifies that certain state licensed gaming is permissible in a private club. The bill permits minors to be at certain private licensees under certain conditions



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 224,500 163,000 132,250


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. This bill appears to be the same as SB 561. There should be some increase in revenue from the clarification that illegal sales are not permitted, however too speculative to quantify with a dollar amount. The licensee fee from private hotel (10 possible licensees * $4,000 = $40,000), private liquor fair and festival (50 possible at $750 = $37,500) and private 9-hole golf course (12 possible licenses * $2000 = $24,000) could potentially generate $101,500. The number of licenses and events licensed could increase over time and perhaps a shift could occur from beer only, wine only, or beer and wine events to the private liquor fair and festival license. The reactivation requirement generates, 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. Other measures are for greater convenience and access, and could lead to increased sales and tax revenue.



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. Note some assumptions and extrapolations were made in the Fiscal Note Detail and actual numbers may vary. This bill would provide greater flexibility to licensees, applicants and the public while still responsibly permitting certain activities.



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