FISCAL NOTE

Date Requested: January 24, 2018
Time Requested: 11:43 AM
Agency: Alcohol Beverage Control Administration
CBD Number: Version: Bill Number: Resolution Number:
2073 Introduced SB353
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

General

Sources of Revenue:

General Fund

Legislation creates:

Increases Revenue From Existing Sources



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    
    SB 353 aims to increase revenues to the State by addressing reasonable fees for some existing services and creating a small fee for an additional and substantial license privilege.
    
     SB 353 aims to promote the beer industry in West Virginia by modernizing certain aspects of the beer laws relating to floor plan extension for existing licenses who are in good standing and permitting the West Virginia Alcohol Beverage Control Administration to collect a $100 fee for the extra work performed in allowing this license privilege, to encourage licensees to apply for renewals of their license in a timely and effective manner but if they fail to do so a $150 reactivation fee will be applied prior to their renewal(this also helps the State to time the license revenue received at the end of the fiscal year), permitting growler licensees to sell growlers to patrons without quantity restrictions currently in the code, and creating a $100 sampling license for retailers authorized to sell growlers.
     ___________________________________
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 152,700 152,700 152,700


Explanation of above estimates (including long-range effect):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
    The WVABCA licensing division provided a manual count of floor plan extensions in the past calendar year at approximately 254 such extensions granted (in addition to various fair and festival licenses and other Class S licenses).
    
     With a $100 fee, the projected revenue would approximately be 254 * $100 = $25,400, and this number could grow as more licensees take advantage of this special license privilege.
    
     With the reactivation fee for licensees failing to complete the renewal process there were approximately 800 licensees (approximately 400 of which partially filed an application, paid the licensee fee or both, if they had completed both items then they would be excluded from the total of 800) 800 * $150 = $120,000 approximately, hopefully as the years progress this number should decrease.
    
     There are currently 85 total growler licensees and potentially 73 such licenses could be affected by the ability to conduct growler sampling, thus approximately 73 * $100 = $7300, hopefully this would spur beer and craft beer industries and the number of licenses would increase as well as new revenue from increased beer barrel tax collections.
    
     Total WVABCA revenue impact would be approximately $152,700/year, however, the modernization language in SB 353 could lead to increased revenue for breweries, resident breweries, distributors and retailers; economic development from craft beer tourism and also better timing of license revenue and perhaps increased revenue from tax collections.
    



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    
     SB 353 is a WVABCA requested bill.
    
     SB 353 meets the WVABCA needs for responsible modernization of certain beer requirements and provides some economic development assistance for the beer industry with the changes in the bill.
    



    Person submitting Fiscal Note: Anoop Bhasin on WVABCA's behalf
    Email Address: Anoop.K.Bhasin@wv.gov