Fiscal Note & Local Impact Statement
125 th General Assembly of Ohio
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LOCAL IMPACT
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Note: The state
fiscal year is July 1 through June 30.
For example, FY 2004 is July 1, 2003 – June 30, 2004.
·
This
bill retains the permit fees for the A-2, B-2, and B-4 liquor permits and
eliminates the per barrel charge. Thus creating a $1,205 revenue loss in permit
fees. This bill also makes changes to
the D-5a and D-5i permits by issuing these permits to colleges and
universities, resulting in a potential increase in the number of permits
issued, and thus potentially increasing the liquor permit revenue. The permit fee for each of these permits is
$2,344 plus a $100 processing fee.
Liquor permit fees are deposited into Fund 066 and distributed to the
GRF, the Ohio Department of Alcohol and Drug Addition Services (ODADAS), and
local governments. The processing fees,
required for new permits, are deposited in the Liquor Control Fund (Fund 043).
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The
elimination of the registration of coil cleaners will result in a $12,200
decrease in revenue each year to the Undivided Liquor Permit Fund (Fund 066).
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LOCAL
GOVERNMENT |
FY 2004 |
FY 2005 |
FUTURE YEARS |
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Other Local Governments |
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Revenues |
Negligible loss in revenue
from the elimination of the per barrel charge; Potential gain from the
issuance of D‑5a and D-5i liquor permits |
Negligible loss in revenue
from the elimination of the per barrel charge; Potential gain from the
issuance of D‑5a and D-5i liquor permits |
Negligible loss in revenue
from the elimination of the per barrel charge; Potential gain from the
issuance of D‑5a and D-5i liquor permits |
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Expenditures |
- 0 - |
- 0 - |
- 0 - |
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Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
This
bill retains the permit fees for the A-2, B-2, and B-4 liquor permits and
eliminates the per barrel charge, thus creating a $1,205 revenue loss in permit
fees. Local Governments, which receive
a portion of liquor permit fee revenue, would thus experience a negligible loss
in revenue from this source. However,
this bill also makes changes to the D-5a and D-5i permits by issuing these
permits to colleges and universities, resulting in a potential increase in the
number of permits issued, thus potentially increasing the liquor permit
revenue.
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This bill makes many changes
to the state liquor laws including changes in permit fees, eliminates the
annual registration fee for coil cleaners of beer-dispensing equipment, allows
the Division of Liquor Control to share social security numbers with other
state agencies and departments, makes changes in the procedures for disposing
of alcohol, repeals the “dry list,” adds conflict of interest language, removes
the affidavit of non-availability requirement for Ohio wine manufacturers, and
makes a number of technical changes.
Many of these changes will result in minimal administrative savings to
the Division of Liquor Control.
However, the following changes may result in a fiscal impact on the
state or local governments.
Permit Fees
Currently, the A-2 (winemaker) annual permit fee is $126 plus 10 cents per barrel over 100 barrels; the B-2 (bottled wine distributor) annual permit fee is $500 plus 10 cents per barrel over 1,250 barrels; and the B-4 (mixed beverages distributor) annual permit fee is $500 plus 10 cents for each barrel over 1,000 barrels. Approximately $1,205 of the total fees collected for these permits come from the per barrel charge, called assessment fees.
This bill retains these
permit fees and eliminates the per barrel charge, thus creating a $1,205
revenue loss in permit fees. Liquor
permit fees are deposited into Fund 066 and distributed to the GRF, ODADAS, and
local governments. However, the
Division believes that this new fee structure will be much easier to administer
and collect than the current system that charges permit holders by the barrel
over a specific number of barrels produced or sold.
This bill also expands the issuance of D-5a and D-5i liquor permits, for the sale of spirituous liquor for on premises consumption in a motel and restaurant, to colleges and universities. There is no quota restricting the number of D-5a or D-5i permits that may be issued, which may result in a potential increase in the number of permits issued. Since the Department already pays for these checks and collects the associated fees, this may potentially increase the liquor permit revenue. The permit fee for each of these permits is $2,344 plus a $100 processing fee. The processing fees, required for new permits, are deposited in the Liquor Control Fund (Fund 043).
Registration fee for Coil Cleaners
Currently, there are 488 coil cleaners registered by the Division of Liquor Control. This registration fee is $25, thus bringing in $12,200 in revenue this year. The elimination of this registration requirement will result in a $12,200 decrease in this revenue each year to the Undivided Liquor Permit Fund (Fund 066), a portion of which flows to local governments.
Representatives Registration Fee
Current
law requires an annual $25 registration fee for each “representative”
registered under the Liquor Permit Law.
However, this bill instead requires a biennial $50 fee upon each agent,
solicitor, or salesperson registered under the Liquor Permit Law. It appears that this will have no overall
effect on the Division of Liquor Control.
Canceled Permits
In addition, current law
requires the Division to refund the unexpired portion of the permit fee to the
permit holder if the permit holder requests the permit fee to be refunded. This bill eliminates that requirement. However, the Division reports that most
permit holders do not request a refund because they would then lose their
permit. Instead, most permit holders
choose to keep the permit in their name and pay the renewal fees until the
Division reinstates their permit.
Therefore, this provision of the bill will not have an effect on the
Division.
Criminal Record Checks
This
bill codifies current practice by the Division of Liquor Control, and allows all
other divisions within the Department of Commerce, to seek Bureau of Criminal
Identification and Investigation criminal record checks for specified persons
and to request the persons to pay the amount necessary to cover the fee charged
for the criminal records check.
Therefore, this change in law will have no fiscal impact on any division
within the Department.
LSC fiscal staff: Jeremie Newman, Budget Analyst