FISCAL NOTE
Date Requested: January 28, 2020
Time Requested: 11:55 AM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2584 |
Introduced |
SB625 |
|
|---|
| 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.
This is an agency bill.
The purpose of this bill is to permit the limited charitable auctioning of certain rare, antique, or vintage bottles of liquor in limited circumstances for a true charitable purpose while not violating other code sections regarding: (1) the sale and use of alcohol as a prize; or (2) the rights of retail liquor outlets licensed throughout the state.
Apparently certain charities are wanting to conduct events where they auction sealed liquor bottles containing liquor in order to benefit the charity. This is currently illegal in certain areas of the code with respect to alcohol as a prize and also that only licensed retail liquor outlets may sell liquor by the bottle. Liquors typically involved in an auction are rare, vintage or antique types of dated liquors, such as brandy, scotch, bourbon and whiskeys. There could be certain rare or limited production of other types of liquors.
This bill would create a very limited license for the auctioning of liquor for a charitable purpose.
The state benefits since the liquor for the event is purchased from retail liquor outlets or if the liquor cannot be verified there are requirements which can be met in order to permit he auctioning of the liquor.
Generally, the state would have revenue with the responsible sale of liquor by a new licensee and the charitable events would have a legal way to conduct their events.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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 |
3,500 |
3,500 |
3,500 |
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 issued 95 one day wine charitable licenses in fiscal year 2019.
The WVABCA has issued 28 one day beer charitable licenses (new license in 2019) since June of 2019.
The WVABCA issued 80 one day beer and wine licenses in fiscal year 2019, separately 134 beer only and 16 wine only licenses.
Since authorized last June, the WVABCA has issued 14 private fair and festival licenses (new license in 2019) at $750 for revenue of $10,500.
By analogy it may be possible that 7 (or more) one day charitable rare, antique or vintage liquor licenses could be issued with a revenue impact of (x $500) $3,500 plus the taxes on liquor auctioned. More licenses could be issued as this auctioning activity would be legal with the passage of the bill.
The cost would likely be absorbed by existing staff.
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.
The bill provides a very limited and narrow exception for charitable auctioning of liquor bottles.
Person submitting Fiscal Note: Anoop Bhasin, General Counsel on behalf of WVABCA
Email Address: anoop.k.bhasin@wv.gov