OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-386

AN ACT CONCERNING ALCOHOLIC LIQUOR.

As Amended by Senate "A" (LCO 6848)

Senate Calendar No.: 250


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

FY 17 $

Resources of the General Fund

GF - Revenue Gain

At least 3,750

At least 71,000

At least 71,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill makes various changes to the liquor control act, which results in no cost to the Department of Consumer Protection as it does not substantially alter the duties or responsibilities of the agency.

The bill results in a revenue gain to the state, which are enumerated below:

Section 2 results in a potential revenue gain of at least $10,000 annually by extending the hours in which bowling establishments may serve alcohol. The actual revenue gain is dependent upon (1) the number of bowling establishments that extend their hours and (2) consumer demand for alcohol during those hours.

Currently there are 32 bowling establishments permitted in the state.

Section 5 results in a potential revenue gain of up to 3,750 in FY 15 and up to $15,000 annually by allowing manufacturer permittees that produce less than 25,000 gallons of alcoholic liquor to sell at retail liquor it manufactures for consumption off-premise. The bill restricts sales to not more than (1) 1.5 litres of alcoholic liquor to any one individual per day or (2) more than five gallons in a two month period. The actual revenue gain is dependent upon (1) the number of manufacturers who sell their products at retail as allowed under the bill and (2) the consumer demand for such product.

Currently there are six permits for the manufacture of alcoholic liquor in the state.

Section 7 results in a minimal revenue gain by requiring alcoholic liquor permittees to offer either (1) free potable water or (2) nonalcoholic beverages for sale. The actual revenue gain is dependent upon (1) the number of establishments that provide nonalcoholic drinks for sale in addition to or in lieu of free water, (2) consumer demand for such beverages.

Section 8 allows any farm winery to sell on its premise brandy manufactured from fruit harvested on the premise but distilled off-site. To the extent that farm wineries sell such product, there will be a revenue gain to the state from the alcoholic beverages and sales taxes applied to such products.

For illustrative purposes, assuming that 50% of the state's wineries produce such brandy for sale on premise as a result of the bill, it is estimated that the alcoholic beverages and sales taxes generated would be up to $20,000 annually. This estimate assumes that the production of brandy at these wineries would be small relative to the production of wine.

Section 9 results in a potential minimal revenue gain by allowing package store permittees to sell cigars. The actual revenue gain is dependent upon an increase in consumption of cigars, if any, as a result of the availability of cigars in package stores in addition to other establishments.

Section 10 results in a total revenue gain of up to $26,000 in sales tax and excise tax ($12,000) and permit fees ($14,000) annually by permitting certain retailers to sell beer at farmers markets. Currently there are forty potential permittees eligible for the farmers market permit under the bill. The annual permit fee is $250 coupled with a $100 filing fee.

Senate “A” added section 10 resulting in the fiscal impact stated above along with various technical changes.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and number of permittees.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.