BILL #    HB 2010

TITLE:     Arizona wine commission; duties; promotion

SPONSOR:    Griffin

STATUS:   As Introduced

PREPARED BY:    Henry Furtick

 

 

 

Description

 

The bill would reestablish the Arizona Wine Commission (AWC) for the purpose of marketing and promoting the Arizona wine industry.  The bill would also reestablish the Arizona Wine Promotional Trust Fund (AWPTF).  The bill redirects $100,000 of current revenue collections to the AWPTF.   

 

Estimated Impact

 

Beginning in FY 2020, the bill would decrease General Fund revenue by $(25,000) and existing Other Fund revenue by $(75,000).  These estimates assume that the $100,000 redirection is an annual and not a monthly event.  As currently drafted, Legislative Council believes that the bill is unclear in this regard.

 

The Arizona Department of Agriculture (ADA) does not have a fiscal impact estimate for the bill.

 

Analysis

 

The AWC was first established by Laws 1993, Chapter 40.  The AWC operated for 11 years before being eliminated in 2004 pursuant to A.R.S. § 41-3004.18.  The bill would reestablish the AWC and reestablish the AWPTF for the purpose of supporting the commission.  The bill would redirect the first $100,000 collected from the tax on vinous liquors pursuant to A.R.S. § 42-3052 to the AWPTF.  The bill does not specify the frequency of the redirection.  The Department of Revenue (DOR) currently makes monthly allocations, but is not required to do so by statute.  This analysis assumes the $100,000 redirection is annual.  The allocation of $100,000 from vinous liquor tax revenue to the AWPTF is expected to decrease revenue to the following funds by the following amounts beginning in FY 2020:

 

·         General Fund, $(25,000)

·         Corrections Fund (Department of Corrections), $(50,000)

·         Drug Treatment and Education Fund (Judiciary - Superior Court), $(18,000)

·         State Department of Corrections Revolving Fund (Department of Corrections), $(7,000)

 

The bill would also establish an interagency agreement between the commission and ADA to fund the commission's administrative expenses.  The bill limits the amount of funding the commission can receive from ADA via the interagency agreement to $25,000 annually.  The bill would allow the AWC to expend AWPTF monies for promotional purposes and the AWC's administrative and operating budget.  The bill requires that all monies provided to the commission by ADA through the interagency agreement be repaid to ADA.

 

Local Government Impact

 

None

 

1/28/19