LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 8, 2023 TO: Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1932 by Creighton (Relating to authorizing secondary wine sales; authorizing an administrative penalty.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would amend the Alcoholic Beverage Code by adding Chapter 111 regarding secondary wine sales.The bill would allow wine collection sellers to sell wine lawfully owned by them, that is at least 20 years old, and is in the sealed original packaging to certain permitted restaurants. The restaurant could then sell that wine to ultimate consumers for on-premise consumption.A wine collection seller would have to be: 21 years old and not licensed or permitted by the Texas Alcoholic Beverage Commission (TABC) under the Alcoholic Beverage Code. Further, the seller would have to be an executor or similar person selling the wine in performance of their fiduciary duty; a creditor selling the wine in payment of a debt; a public officer selling the wine in satisfaction of an official order; or any other unlicensed person who is not engaged in the sale of alcoholic beverages.The purchasing restaurant would have to hold a food and beverage certificate from TABC and either a mixed beverage permit, a wine and malt beverage retailer's permit, or a private club registration permit to purchase wine from a wine collection seller. Restaurants would have certain recordkeeping requirements related to purchases of wine from wine collection sellers. Failure to meet the recordkeeping requirements would subject the restaurant to an administrative penalty of $500.The bill would exempt wine purchased from wine collection sellers from the taxes imposed by Chapter 201, Subchapter A of the Alcoholic Beverage Code.Although the $500 administrative penalties related to this bill could lead to increased revenue to the state, the amount of the increase is unknown, but is unlikely to be significant. The volume of sales from collections to restaurants of wines for which the Chapter 201, Subchapter A excise tax had not previously been paid would also be unlikely to be significant. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission LBB Staff: b > td > JMc, SZ, SD, BRI, SMAT
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 8, 2023
TO: Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1932 by Creighton (Relating to authorizing secondary wine sales; authorizing an administrative penalty.), As Engrossed
TO: Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1932 by Creighton (Relating to authorizing secondary wine sales; authorizing an administrative penalty.), As Engrossed
Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures
Honorable Ken King, Chair, House Committee on Licensing & Administrative Procedures
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1932 by Creighton (Relating to authorizing secondary wine sales; authorizing an administrative penalty.), As Engrossed
SB1932 by Creighton (Relating to authorizing secondary wine sales; authorizing an administrative penalty.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Alcoholic Beverage Code by adding Chapter 111 regarding secondary wine sales.The bill would allow wine collection sellers to sell wine lawfully owned by them, that is at least 20 years old, and is in the sealed original packaging to certain permitted restaurants. The restaurant could then sell that wine to ultimate consumers for on-premise consumption.A wine collection seller would have to be: 21 years old and not licensed or permitted by the Texas Alcoholic Beverage Commission (TABC) under the Alcoholic Beverage Code. Further, the seller would have to be an executor or similar person selling the wine in performance of their fiduciary duty; a creditor selling the wine in payment of a debt; a public officer selling the wine in satisfaction of an official order; or any other unlicensed person who is not engaged in the sale of alcoholic beverages.The purchasing restaurant would have to hold a food and beverage certificate from TABC and either a mixed beverage permit, a wine and malt beverage retailer's permit, or a private club registration permit to purchase wine from a wine collection seller. Restaurants would have certain recordkeeping requirements related to purchases of wine from wine collection sellers. Failure to meet the recordkeeping requirements would subject the restaurant to an administrative penalty of $500.The bill would exempt wine purchased from wine collection sellers from the taxes imposed by Chapter 201, Subchapter A of the Alcoholic Beverage Code.Although the $500 administrative penalties related to this bill could lead to increased revenue to the state, the amount of the increase is unknown, but is unlikely to be significant. The volume of sales from collections to restaurants of wines for which the Chapter 201, Subchapter A excise tax had not previously been paid would also be unlikely to be significant.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: b > td > JMc, SZ, SD, BRI, SMAT
JMc, SZ, SD, BRI, SMAT