LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 18 SLS 202ES 47
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 23, 2020 10:57 AM Author: CATHEY
Dept./Agy.: Revenue, Alcohol and Tobacco Control
Subject: Waived and Refunded Alcohol Permit Fees Paid by Bars Analyst: Patrice Thomas
FEES/LICENSES/PERMITS EN DECREASE SG RV See Note Page 1 of 1
Provides an exemption to certain permit fees collected by the Office of Alcohol and Tobacco Control. (gov sig) (Item #35)
Under current law, Class A-General retail permits issued to bars that serve alcohol on the premises are as follows: (1) Beer
only - $120 ($70 beer fee + $50 responsible vendor fee); (2) Beer and Liquor - $320 inside a city ($70 beer fee + $200
liquor/wine fee + $50 responsible vendor fee) or $220 outside a city ($70 beer fee + $100 liquor/wine fee + $50 responsible
vendor fee). Proposed law provides that bars with a Class A-General permit and breweries (including microbreweries and
microdistilleries) that paid their permit fees timely during 2020, shall have their permit fees waived on a pro rata basis in
2021. Proposed law provides that bars with a Class A-General permit and breweries (including microbreweries and
microdistilleries) that paid their permit fees timely during 2020 and subsequently surrendered their permit in 2020 while in
good standing, shall be refunded the amount paid on a pro rata basis for their permit fees no later than 12/31/2020.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE SEE BELOW $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. DECREASE DECREASE $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law creates an increased expenditure exposure as a result of refunding permit fees in FY 21 and eliminates self-
generated revenues as a result of waiving permit fees in FY 21 and FY 22. The Office of Alcohol and Tobacco Control (ATC)
utilizes self-generated revenues to support certain functions and services within agency. The loss of revenues to support
these expenditures is indeterminable (see Revenue Explanation). If ATC is to maintain its current functions and services, an
alternative source of revenue would have to be utilized. State General Fund revenue may be sought for replacement. At the
close of FY 20, the agency had a carryforward fund balance of $8,763,428, which may be utilized as an alternative revenue
source.
REVENUE EXPLANATION
Proposed law will decrease SGR revenue collections in ATC by an indeterminable amount in FY 21 and FY 22. Proposed law
requires ATC to waive Class A-General permit fees on a pro rata basis in calendar year 2021 for bars that paid their permit
fees timely during calendar year 2020, or refund Class-A-General permit fees on a pro rata basis to bars that paid their
permits fees timely during calendar year 2020 and subsequently surrendered their permit. The number of bars that would
request waivers or refunds under this measure is indeterminable.
In FY 20, ATC issued 1,254 Class A-General permits that resulted in self-generated revenue collection of $438,320 (79 beer
only permits inside city limits at $120 fee; 57 beer only permits outside city limits at $120 fee; 898 beer/liquor permits
inside city limits at $320 fee; and 220 beer/liquor permits outside city limits at $220 fee). ATC has issued 45 permits for
breweries, microbreweries, and microdistilleries (30 breweries at $1,000 fee; 8 microbreweries with restaurant permit at
$1,345 fee; 6 microbreweries with bar permits at $1,320; and 1 microdistillery with a restaurant permit at $1,345). For
illustrative purposes, if 10% of the bars or breweries under this measure had permit fees waived or refunded, this would
result in a revenue reduction of $39,665 across FYs 21 and 22.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director