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F I S C A L I M P A C T R E P O R T





SPONSOR: Ruiz DATE TYPED: 03/05/01 HB 942
SHORT TITLE: Prohibit Certain Sales By Liquor Licensee SB
ANALYST: Valdes


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Alcohol and Gaming Division, Regulation and Licensing Department



SUMMARY



Synopsis of Bill



House Bill 942 makes it a violation of the Liquor Control Act to sell or deliver alcoholic beverages to a customer, receive cash for a sale or locate a cash register within ten feet of an exterior door of the licensed premises.



Significant Issues



The Alcohol and Gaming Division provided the following information on House Bill 942:



If this bill is enacted, liquor license holders who currently receive cash, and/or who have cash registers located within ten feet of an exterior door of the licensed premises would be required to change their licensed premises to ensure that the licensee does not sell or deliver alcoholic beverages to a customer, receive cash for a sale or locate a cash register within ten feet of an exterior door of the licensed premises.



In many instances, such as liquor licensed establishments that are located in a mall, or restaurants that have the host/hostess station next to the exterior door, for example, licensees may not be able to come into compliance with the proposed language without extensive remodeling.



Another example of liquor licensees potentially not being able to comply without major renovations is a convenience store. To deter shoplifting and for other safety reasons, many of these stores have cash registers that are located within ten feet of an exterior door.



Finally, the bill would also serve to prohibit wholesale deliveries to a licensee, all of which occur within ten feet of an exterior door.



The problem that this bill would propose to eliminate may be limited to those package liquor stores that have, in response to recent "drive-up window" legislation, renovated their drive-up window into a "walk-up" window. In these instances, a customer drives up near the window, parks the care, and steps up to the "walk-up" window to make his purchase of package liquor.



If the "walk-up" window is indeed the problem this bill would seek to eliminate, alternative language must be developed to eliminate that problem without unduly restricting licensees from conducting appropriate activities.



PERFORMANCE IMPLICATIONS



No impact on department performance measures.



ADMINISTRATIVE IMPLICATIONS



Impact unknown according to the Alcohol and Gaming Division. The Division does not have information that would indicate how many liquor establishments sell or deliver alcoholic beverages, receive cash for a sale or locate a cash register within ten feet of an exterior door. Administrative impact would depend on how many liquor licensee's would be required to file floor plan changes to come into compliance with the proposed language in the bill, if enacted.



MV/ar