LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 31, 2023 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1375 by Parker (Relating to the sampling or tasting of distilled spirits by the manufacturer to a consumer at a temporary event.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1375, As Introduced : a negative impact of ($500,000) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($500,000)2025$02026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund12024($500,000)2025$02026$02027$02028$0 Fiscal AnalysisThe bill would amend the Alcoholic Beverage Code to authorize a holder of a Distiller's and Rectifier's permit to dispense free samples of their product at civic events or festivals of a temporary nature.The bill would require the Alcoholic Beverage Commission (TABC) to adopt rules that verify the wet or dry status of the location where the permit holder intends to temporarily dispense spirits and determine the circumstances when a permit holder would require preapproval from TABC.The bill would take effect September 1, 2023.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 31, 2023
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1375 by Parker (Relating to the sampling or tasting of distilled spirits by the manufacturer to a consumer at a temporary event.), As Introduced
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1375 by Parker (Relating to the sampling or tasting of distilled spirits by the manufacturer to a consumer at a temporary event.), As Introduced
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1375 by Parker (Relating to the sampling or tasting of distilled spirits by the manufacturer to a consumer at a temporary event.), As Introduced
SB1375 by Parker (Relating to the sampling or tasting of distilled spirits by the manufacturer to a consumer at a temporary event.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1375, As Introduced : a negative impact of ($500,000) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1375, As Introduced : a negative impact of ($500,000) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2024 ($500,000)
2025 $0
2026 $0
2027 $0
2028 $0
All Funds, Five-Year Impact:
2024 ($500,000)
2025 $0
2026 $0
2027 $0
2028 $0
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to authorize a holder of a Distiller's and Rectifier's permit to dispense free samples of their product at civic events or festivals of a temporary nature.The bill would require the Alcoholic Beverage Commission (TABC) to adopt rules that verify the wet or dry status of the location where the permit holder intends to temporarily dispense spirits and determine the circumstances when a permit holder would require preapproval from TABC.The bill would take effect September 1, 2023.
Methodology
According to TABC, programming changes to AIMS, the agency's online portal for the alcoholic beverage industry, would be necessary to implement the provisions of the bill. The changes include adding a self-service functionality to holders of a Distiller's and Rectifier's permit so they can apply for temporary event authorizations and adding language reinforcing legal authorizations. Currently, distilleries are not set up in AIMS for temporary events.This analysis assumes a onetime cost of $500,000 in fiscal year 2024 for the agency to hire contracted staff for the necessary software adjustments.
Technology
Technology costs total $500,000 in fiscal year 2024 for the agency to contract with the AIMS SaaS vendor to make the necessary software adjustments to implement the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 458 Alcoholic Beverage Commission
458 Alcoholic Beverage Commission
LBB Staff: b > td > JMc, SMAT, KFB, DA, SZ
JMc, SMAT, KFB, DA, SZ