SB 0227 - Fiscal Note

Fiscal Note - SB 0227 - Increases the cost of a permit for the sale of nonintoxicating beer

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0786-01

BILL NO.: SB 227

SUBJECT: Alcohol: Licenses - Liquor and Beer

TYPE: Original

DATE: January 21, 1999

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	$20,680	$20,680	$20,680
Total Estimated Net Effect on All State Funds	$20,680	$20,680	$20,680

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$43,945	$43,945	$43,945

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of the Attorney General assume this proposal would have no fiscal impact to their agency.

Officials of the Department of Public Safety - Division of Liquor Control (DLC) assume this proposal would increase the license fee authorizing the sale of non-intoxicating beer for consumption on the premises where sold to $300. The license fee is currently $25 for a 3.2% Nonintoxicating Beer by the Drink License. This proposal would also increase the license fee authorizing the sale of nonintoxicating beer by grocers and other merchants and dealers, for sale in the original package direct to the consumers but not for resale at $300. The license fee is currently $15 for an Original Package 3.2% Beer license.

DLC officials assume that these large license fee increases would cause some of the nonintoxicating beer licenses to 5% Beer by the Drink Wine licenses at a fee of $35 or Original Package 5% Beer licenses at a fee of $15, pursuant to the provisions of Chapter 311, RSMo.

DLC officials assume that 80% or 250 of the current 313 3.2% Nonintoxicating Beer by the Drink (32 BD) licensees would change to 5% Beer by the Drink Wine (5BDW) licenses with a license fee increase of $10 (from $25 to $35). DLC staff assume the other 63 32BD licensees would keep their licenses with a license fee increase of $275 (from $25 to $300).

DLC officials also assume that 80% or 13 of the current 16 Original Package 3.2% Beer (32OP) licensees would change to Original Package 5% Beer (5OP) licenses with no fee change (both license fees are $15 annually). The other three 32OP licensees would keep their licenses with a license fee increase of $285 (from $15 to $300).

DLC staff assume the first time the license fee changes and increases would be effective in May 2000 when the renewal license fees are received for FY2001 licenses. Therefore, the following fee increases would be effective in FY 2000 and every year thereafter:

Change from 32BD licenses to 5BDW licenses 250 x $ 10 = $ 2,500

License fee increase on 32BD licenses 63 x $275 = $17,325

License fee increase on 32OP licenses 3 x $285 = $ 855

TOTAL $20,680

ASSUMPTION (continued)

DLC officials stated that Section 211.330, RSMo, allows cities to charge one and one-half the state liquor license fee amount. Section 311.220, RSMo, also allows counties to charge an amount equal to the state liquor license fee. DLC officials assume that 75% of the licensees that change licenses or pay an increase in license fees are located within a municipality. Therefore, the cities would collect additional revenue of $23,265 ($20,680 x 1.5 x 75%). The counties additional revenue collection would equal the state revenue increase of $20,680.

DLC officials assume this proposal would affect Total State Revenues.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Income - Department of Public Safety -
Division of Liquor Control (DLC)
License fees	$20,680	$20,680	$20,680
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND	$20,680	$20,680	$20,680
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
Income - Cities
License fees	$23,265	$23,265	$23,265
Income - Counties
License fees	$20,680	$20,680	$20,680
ESTIMATED NET EFFECT TO
POLITICAL SUBDIVISIONS	$43,945	$43,945	$43,945
FISCAL IMPACT - Small Business
This proposal would change license fees paid by small business retailers with nonintoxicating beer licenses.

DESCRIPTION

This proposal would increase the permit fee for the sale and consumption on the premises of nonintoxicating beer from $25 to $300. It would also increase the permit fee for the sale of nonintoxicating beer by grocers, other merchants, and dealers, in the original package, direct to the consumer from $15 to $300.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would affect Total State Revenues.

SOURCES OF INFORMATION

Department of Public Safety - Division of Liquor Control

Office of the Attorney General

Jeanne Jarrett, CPA

Director

January 21, 1999