Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                           Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                       adam.c.proffitt@ks.gov
Topeka, KS 66612                                Division of the Budget                               http://budget.kansas.gov
Adam C. Proffitt, Director                                                                          Laura Kelly, Governor

                                                   March 12, 2024


         The Honorable Will Carpenter, Chairperson
         House Committee on Federal and State Affairs
         300 SW 10th Avenue, Room 346-S
         Topeka, Kansas 66612
         Dear Representative Carpenter:
                   SUBJECT:       Fiscal Note for HB 2677 by House Committee on Federal and State Affairs
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2677 is
         respectfully submitted to your committee.
                 HB 2677 would amend the Liquor Control Act. The bill would allow cereal malt beverage
         (CMB) retailers to sell wine containing not more than 16.0 percent alcohol by volume and impose
         the applicable retailers’ sales tax. The bill would require the Director of Alcoholic Beverage
         Control to conduct a market study of the sale of wine by CMB licensees with data ranging from
         2018 to 2028. The market study would be reported to the 2029 Legislature. The bill would also
         extend the Director’s oversight over CMB licensees to include the sale of wine. HB 2677 also
         clarifies who could sell wine to CMB retailers.
                 The Department of Revenue indicates if the bill is enacted it could result in an increase in
         CMB retailer licenses as well as a decrease in liquor licenses. The Department notes that there
         could be decreases in liquor drink and enforcement taxes and liquor fees; however, there could be
         an increase to the retailers’ sales tax. A precise fiscal effect on revenues cannot be estimated. The
         Department estimates State General Fund expenditures of $3,600 in FY 2025 to revise forms and
         make modifications to the agency’s website to implement the bill’s provisions. Any fiscal effect
         associated with HB 2677 is not reflected in The FY 2025 Governor’s Budget Report.

                                                               Sincerely,

                                                               Adam C. Proffitt
                                                               Director of the Budget

         cc: Lynn Robinson, Department of Revenue
             Wendi Stark, League of Kansas Municipalities
             Jay Hall, Kansas Association of Counties
Statutes affected: 
As introduced: 79-3602c, 41-102, 41-212, 41-306a, 41-308, 79-4101, 41-355, 41-701, 41-1101a, 41-2701, 41-2702, 41-2704, 41-2706, 41-2708, 41-2722, 41-2721, 41-2726, 41-2728, 41-2730, 79-3602