LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 17, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB517, As Engrossed: a positive impact of $17,250 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 17, 2013
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), As Engrossed
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), As Engrossed
Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), As Engrossed
SB517 by Eltife (Relating to the distribution of beer by certain manufacturers.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB517, As Engrossed: a positive impact of $17,250 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for SB517, As Engrossed: a positive impact of $17,250 through the biennium ending August 31, 2015.
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. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013. The changes in law made by this bill take effect only if the 83rd Legislature, Regular Session, 2013, also enacts the following legislation related to the alcoholic beverage industry that becomes law: (1) Senate Bill 515, House Bill 1763, or another similar bill (2) Senate Bill 516, House Bill 1764, or another similar bill (3) Senate Bill 518, House Bill 1766, or another similar bill, and (4) Senate Bill 639, House Bill 1538 or another similar bill.
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. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.
The changes in law made by this bill take effect only if the 83rd Legislature, Regular Session, 2013, also enacts the following legislation related to the alcoholic beverage industry that becomes law: (1) Senate Bill 515, House Bill 1763, or another similar bill (2) Senate Bill 516, House Bill 1764, or another similar bill (3) Senate Bill 518, House Bill 1766, or another similar bill, and (4) Senate Bill 639, House Bill 1538 or another similar bill.
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