LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 7, 2001 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: HB892 by Swinford (Relating to sale and promotion of certain agricultural products produced by wineries.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB892, As Engrossed: positive impact of $0 through the biennium * * ending August 31, 2003. * * * * 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 to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from General Revenue Fund * * 0001 0001 * * 2002 $(250,000) $250,000 * * 2003 (250,000) 250,000 * * 2004 (250,000) 250,000 * * 2005 (250,000) 250,000 * * 2006 (250,000) 250,000 * *************************************************************************** Fiscal Analysis The bill would amend the Alcoholic Beverage Code to establish the Texas Wine Marketing Assistance Program in the Department of Agriculture to assist the wine industry in promoting and marketing Texas wines and to provide consumer education about the Texas wine industry. The bill would establish an advisory committee, appointed by the Agriculture Commissioner, to implement the program. The program is required to organize a network of package stores to sell and promote Texas wine, maintain a database for access to wine sales information, operate a toll free telephone number to provide information about Texas wine, use market research to develop a wine marketing plan, and promote, market and provide educational services to consumers about Texas wines. The bill would require the Alcoholic Beverage Commission to transfer from funds appropriated to the commission $250,000 to the Department of Agriculture to be used by the department to implement the Texas Wine Marketing Assistance Program. Methodology The bill would transfer $250,000 annually from the Alcoholic Beverage Commission to the Department of Agriculture to implement the Texas Wine Marketing Assistance Program and the commission may recover the amount transferred by imposing a surcharge on certain licenses and permits. For purposes of this fiscal note, it is assumed the commission would recover the required transfer through surcharges and that any benefits costs for FTEs hired for this program would be covered under the $250,000. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 458 Texas Alcoholic Beverage Commission, 551 Texas Department of Agriculture LBB Staff: JK, CL, RK