LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 7163 NOTE PREPARED: Jan 5, 2022 BILL NUMBER: HB 1298 BILL AMENDED: SUBJECT: Sales and Sampling at Farmers' Markets. FIRST AUTHOR: Rep. Smaltz BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill allows a county, city, or town to adopt an ordinance to allow the following at a farmers' market, subject to the consent of the operator of the farmers' market: (1) A small brewery, farm winery, or artisan distillery to serve complimentary samples of the alcoholic beverages (product) that they manufacture. (2) A small brewery or artisan distillery to sell their product in original containers. (Current law allows a farm winery to sell its wine by the bottle at a farmers' market.) It provides that the ordinance expires one year after it is adopted. Effective Date: July 1, 2022. Explanation of State Expenditures: The bill potentially allows for additional locations at which alcoholic beverages may be sold. The Alcohol and Tobacco Commission (ATC) would be responsible for enforcing alcoholic beverage laws at these locations. However, the ATC should be able to accomplish this within existing staffing and resource levels. Explanation of State Revenues: To the extent that alcoholic beverage sales increase as a result of increased availability at farmers’ markets, Alcoholic Beverage Tax and Sales Tax revenue could potentially increase. However, any increase would be minimal, as an increase in sales at farmers’ markets would likely be offset by reduced sales at other locations. [Alcoholic Beverage Tax revenue is distributed in varying amounts to the following funds: General Fund, State Construction Fund, Enforcement and Administration Fund, Pension Relief Fund, and Addiction Services Fund. Sales Tax revenue is primarily deposited in the General Fund.] HB 1298 1 Explanation of Local Expenditures: If a county, city, or town holds additional meetings to adopt an ordinance described in the bill, workload and costs could increase. However, the bill’s requirements should be able to be implemented within existing resources. Explanation of Local Revenues: State Agencies Affected: Alcohol and Tobacco Commission. Local Agencies Affected: Counties, cities, and towns. Information Sources: Fiscal Analyst: Lauren Tanselle, 317-232-9586. HB 1298 2