LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 24, 2009 TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB206 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB206, As Introduced: a positive impact of $70,000 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 24, 2009
TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB206 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB206 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB206 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
HB206 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB206, As Introduced: a positive impact of $70,000 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB206, As Introduced: a positive impact of $70,000 through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $70,000 2011 $0 2012 $70,000 2013 $0 2014 $70,000
2010 $70,000
2011 $0
2012 $70,000
2013 $0
2014 $70,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $70,000 2011 $0 2012 $70,000 2013 $0 2014 $70,000
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $70,000 2011 $0 2012 $70,000 2013 $0 2014 $70,000
2010 $70,000
2011 $0
2012 $70,000
2013 $0
2014 $70,000
Fiscal Analysis
The bill would add Chapter 56 to Subtitle A, Title 3 of the Alcoholic Beverage Code to create an On-Premises Consumption Only Permit. The bill requires commercial establishments that charge an admission fee and allow customers to bring alcoholic beverages on site for consumption to hold the On-Premises Consumption Only Permit. The bill would require the annual fee for the On-Premises Consumption Only Permit to be $500. The bill also indicates The On-Premises Consumption Only Permit may not be issued to commercial establishments already covered by a mixed beverage permit or a private club registration permit. The bill would also amend Subsection D, Chapter 101 of the Alcoholic Beverage Code to create a new misdemeanor offense for violations of the requirements of the bill. The bill would take effect on September 1, 2009, except the provisions of the bill requiring the On-Premises Consumption Only Permit and creating the new misdemeanor offense would take effect on January 1, 2010.
The bill would add Chapter 56 to Subtitle A, Title 3 of the Alcoholic Beverage Code to create an On-Premises Consumption Only Permit. The bill requires commercial establishments that charge an admission fee and allow customers to bring alcoholic beverages on site for consumption to hold the On-Premises Consumption Only Permit. The bill would require the annual fee for the On-Premises Consumption Only Permit to be $500. The bill also indicates The On-Premises Consumption Only Permit may not be issued to commercial establishments already covered by a mixed beverage permit or a private club registration permit. The bill would also amend Subsection D, Chapter 101 of the Alcoholic Beverage Code to create a new misdemeanor offense for violations of the requirements of the bill. The bill would take effect on September 1, 2009, except the provisions of the bill requiring the On-Premises Consumption Only Permit and creating the new misdemeanor offense would take effect on January 1, 2010.
Methodology
The Texas Alcoholic Beverage Commission (TABC) estimates approximately 70 commercial businesses charge an admission fee and allow people to bring in alcohol for on-premises consumption but are not currently licensed by TABC. TABC permits are two-year permits, so the biennial fee for the 70 businesses that would fall under the bills requirements would be $1,000 ($500*2) for the new On-Premises Consumption Only Permit, resulting in a biennial revenue gain of $70,000 (70*$1,000). No surcharge was included in this analysis because the bill would require a rule to be adopted to establish the amount of the surcharge. In addition, TABC also estimates approximately 465 to 500 TABC-licensed locations may fall under the bills requirements, which may further increase revenue, but were excluded from TABCs estimate because TABC cannot determine if these establishments allow people to bring alcohol for on-premises consumption. This analysis also assumes any additional costs related to the implementation of the bill, including programming and printing of publications, can be absorbed within the agencys current appropriations. The Comptroller of Public Accounts anticipates no significant fiscal impact to the agency from implementing the provisions of the bill.
The Texas Alcoholic Beverage Commission (TABC) estimates approximately 70 commercial businesses charge an admission fee and allow people to bring in alcohol for on-premises consumption but are not currently licensed by TABC. TABC permits are two-year permits, so the biennial fee for the 70 businesses that would fall under the bills requirements would be $1,000 ($500*2) for the new On-Premises Consumption Only Permit, resulting in a biennial revenue gain of $70,000 (70*$1,000). No surcharge was included in this analysis because the bill would require a rule to be adopted to establish the amount of the surcharge. In addition, TABC also estimates approximately 465 to 500 TABC-licensed locations may fall under the bills requirements, which may further increase revenue, but were excluded from TABCs estimate because TABC cannot determine if these establishments allow people to bring alcohol for on-premises consumption. This analysis also assumes any additional costs related to the implementation of the bill, including programming and printing of publications, can be absorbed within the agencys current appropriations. The Comptroller of Public Accounts anticipates no significant fiscal impact to the agency from implementing the provisions of the bill.
Technology
Any technological costs could be absorbed within the agency's current appropriations.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: JOB, JRO, GG, ESi
JOB, JRO, GG, ESi