LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 15, 2013 TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB 517, 1st Cmte Rep, Sub: a positive impact of $17,250 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 15, 2013
TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), Committee Report 1st House, Substituted
TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), Committee Report 1st House, Substituted
Honorable John Carona, Chair, Senate Committee On Business & Commerce
Honorable John Carona, Chair, Senate Committee On Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), Committee Report 1st House, Substituted
SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB 517, 1st Cmte Rep, Sub: a positive impact of $17,250 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for SB 517, 1st Cmte Rep, Sub: a positive impact of $17,250 through the biennium ending August 31, 2013.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $17,250 2015 $0 2016 $17,250 2017 $0 2018 $17,250
2014 $17,250
2015 $0
2016 $17,250
2017 $0
2018 $17,250
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $17,250 2015 $0 2016 $17,250 2017 $0 2018 $17,250
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $17,250 2015 $0 2016 $17,250 2017 $0 2018 $17,250
2014 $17,250
2015 $0
2016 $17,250
2017 $0
2018 $17,250
Fiscal Analysis
The bill would amend Chapter 62 of the Alcoholic Beverage Code to allow a manufacturer with a combined annual production of beer and ale of less than 125,000 barrels to sell their product directly to retailers. It would create a new permit type, called a Manufacturer's Self-Distribution License. The bill would take effect on September 1, 2013, only if the 83rd Legislature, Regular Session, 2013, also enacts legislation that becomes law and amends the Alcoholic Beverage Code to allow small brewers to sell ale and malt liquor to retailers and allow small brewers to sell beer and ale to ultimate consumers.
Methodology
The Alcoholic Beverage Commission (TABC) estimates that there are 23 manufacturers in the state that would be eligible for this new permit. The agency assumes that all 23 eligible manufacturers will obtain the new permit, which requires a $250 fee and $500 surcharge, and must be renewed every two years. The bill would generate revenue for these fees and surcharges collected by TABC on a biennial basis according to the issue date of the new permit type. Therefore, the biennial fees for the permit would be $750, resulting in an estimated revenue stream of $17,250 (23 x $750) every other year.
The Alcoholic Beverage Commission (TABC) estimates that there are 23 manufacturers in the state that would be eligible for this new permit. The agency assumes that all 23 eligible manufacturers will obtain the new permit, which requires a $250 fee and $500 surcharge, and must be renewed every two years. The bill would generate revenue for these fees and surcharges collected by TABC on a biennial basis according to the issue date of the new permit type. Therefore, the biennial fees for the permit would be $750, resulting in an estimated revenue stream of $17,250 (23 x $750) every other year.
Technology
TABC would create a new permit type which would entail design of forms and programming costs. The agency maintains that these costs can be absorbed within existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: UP, RB, AI, KNi
UP, RB, AI, KNi