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