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: SB60 by Zaffirini (Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB60, As Introduced : a negative impact of ($400,000) 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($400,000)2025$02026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund12024($400,000)2025$02026$02027$02028$0 Fiscal AnalysisThe bill would amend the Alcoholic Beverage Code to authorize a holder of an in-state Distiller's and Rectifier's permit or a Nonresident Seller's permit operating a distillery outside of the state to enter into an operating agreement with another Distiller's and Rectifier's permit in Texas as an alternating proprietorship.The bill would require the Alcoholic Beverage Commission (TABC) to adopt rules regulating the shared use of the permitted premises to ensure administrative accountability and separation of business operations.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: SB60 by Zaffirini (Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.), As Introduced
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB60 by Zaffirini (Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.), 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
SB60 by Zaffirini (Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.), As Introduced
SB60 by Zaffirini (Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB60, As Introduced : a negative impact of ($400,000) 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 SB60, As Introduced : a negative impact of ($400,000) 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 ($400,000)
2025 $0
2026 $0
2027 $0
2028 $0
All Funds, Five-Year Impact:
2024 ($400,000)
2025 $0
2026 $0
2027 $0
2028 $0
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to authorize a holder of an in-state Distiller's and Rectifier's permit or a Nonresident Seller's permit operating a distillery outside of the state to enter into an operating agreement with another Distiller's and Rectifier's permit in Texas as an alternating proprietorship.The bill would require the Alcoholic Beverage Commission (TABC) to adopt rules regulating the shared use of the permitted premises to ensure administrative accountability and separation of business operations.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, and to the Enterprise Data Solution (EDS), the agency's business analytical and reporting program, would be necessary to implement the provisions of the bill.The changes to AIMS and EDS include adjusting permit applications to include questions regarding intent to engage with other Distillery's and Rectifier's permit holders, adding upload capability for all operating agreements, and updating the permit application workflow reporting mechanism. This analysis assumes a onetime cost of $400,000 in fiscal year 2024 for the agency to hire contracted staff for the necessary software adjustments.
Technology
Technology costs total $400,000 in fiscal year 2024 for the agency to contract with the AIMS SaaS vendor for 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