Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
HB602 by Farrar (Relating to authorizing certain brewers and manufacturers to conduct tours of their premises after which beer or ale is provided to ultimate consumers for off-premises consumption.), As Engrossed
No significant fiscal implication to the State is anticipated.
The bill would allow the holder of a brewer's permit or a manufacturer's license whose production is under 75,000 barrels annually, to conduct tours of their business premises and charge an admission fee for the tour. Following a tour the brewer or manufacturer could give to tour participants, without additional charge, ale or beer in unbroken packages for off-premises consumption. A tour participant would be limited to a total of 144 ounces of ale and/or beer at the same premises in a single day. A brewer or manufacturer could not sell ale and/or beer to an ultimate consumer.
The Comptroller of Public Accounts (CPA) indicates that currently The Texas Alcoholic Beverage Commission (TABC) permits 27 holders of brewer's permits and manufacturer's licenses in Texas. Of these about 10 have annual production under 75,000 barrels. It is unknown whether any of these businesses would conduct tours. Brewers and manufacturers, under current law, would be required to pay the state excise taxes for the alcoholic beverages given without additional charge to tour participants. In addition, any admission fee charged would be subject to the state and local sales tax. Any fiscal impact from this bill would be insignificant.
The bill would take effect immediately upon two-thirds vote in each house. Otherwise, it would take effect on September 1, 2011.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission