LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 18, 2011 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1863 by Davis (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapters 12 (Brewer's Permit) and 62 (Manufacturer's License) of the Alcoholic Beverage Code to authorize certain brewers and manufacturers to conduct tours of their premises after which ale and beer could be provided to ultimate consumers for off-premises consumption. The bill would allow the holder of a brewer's permit or a manufacturer's license, whose combined annual production of ale and beer does not exceed 250,000 barrels at the same premises, to conduct tours of their business premises and charge an admission fee for the tour. Following a tour the brewer or manufacturer could give to tour participants, without additional charge, ale or beer in unbroken packages for off-premises consumption. A tour participant would be limited to a total of 48 12-ounce bottles of ale and/or beer at the same premises in a single day. A brewer or manufacturer could not sell ale and/or beer to an ultimate consumer. The Comptroller of Public Accounts (CPA) indicates that currently The Texas Alcoholic Beverage Commission (TABC) permits 27 holders of brewer's permits and manufacturer's licenses in Texas, of which 11 would be affected by this bill. It is unknown whether any of these businesses would conduct tours. Brewers and manufacturers, under current law, would be required to pay the state excise taxes for the alcoholic beverages given without additional charge to tour participants. In addition, any admission fee charged would be subject to the state and local sales tax. Any fiscal impact from this bill would be insignificant. The bill would take effect immediately upon two-thirds vote in each house. Otherwise, it would take effect on September 1, 2011. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts LBB Staff: JOB, AG, DAR, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 18, 2011
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1863 by Davis (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1863 by Davis (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Introduced
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Honorable John Carona, Chair, Senate Committee on Business & Commerce
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB1863 by Davis (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Introduced
SB1863 by Davis (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapters 12 (Brewer's Permit) and 62 (Manufacturer's License) of the Alcoholic Beverage Code to authorize certain brewers and manufacturers to conduct tours of their premises after which ale and beer could be provided to ultimate consumers for off-premises consumption. The bill would allow the holder of a brewer's permit or a manufacturer's license, whose combined annual production of ale and beer does not exceed 250,000 barrels at the same premises, to conduct tours of their business premises and charge an admission fee for the tour. Following a tour the brewer or manufacturer could give to tour participants, without additional charge, ale or beer in unbroken packages for off-premises consumption. A tour participant would be limited to a total of 48 12-ounce bottles of ale and/or beer at the same premises in a single day. A brewer or manufacturer could not sell ale and/or beer to an ultimate consumer. The Comptroller of Public Accounts (CPA) indicates that currently The Texas Alcoholic Beverage Commission (TABC) permits 27 holders of brewer's permits and manufacturer's licenses in Texas, of which 11 would be affected by this bill. It is unknown whether any of these businesses would conduct tours. Brewers and manufacturers, under current law, would be required to pay the state excise taxes for the alcoholic beverages given without additional charge to tour participants. In addition, any admission fee charged would be subject to the state and local sales tax. Any fiscal impact from this bill would be insignificant. The bill would take effect immediately upon two-thirds vote in each house. Otherwise, it would take effect on September 1, 2011.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
LBB Staff: JOB, AG, DAR, SD
JOB, AG, DAR, SD