LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 20, 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.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB206, Committee Report 1st House, Substituted: a positive impact of $172,900 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 20, 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.), Committee Report 1st House, Substituted
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.), Committee Report 1st House, Substituted
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.), Committee Report 1st House, Substituted
HB206 by Jackson, Jim ( Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB206, Committee Report 1st House, Substituted: a positive impact of $172,900 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB206, Committee Report 1st House, Substituted: a positive impact of $172,900 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 $172,900 2011 $0 2012 $172,900 2013 $0 2014 $172,900
2010 $172,900
2011 $0
2012 $172,900
2013 $0
2014 $172,900
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $172,900 2011 $0 2012 $172,900 2013 $0 2014 $172,900
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $172,900 2011 $0 2012 $172,900 2013 $0 2014 $172,900
2010 $172,900
2011 $0
2012 $172,900
2013 $0
2014 $172,900
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 would require certain 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 also indicate certain establishments that would not be required to obtain the permit. The bill would require the annual fee for the On-Premises Consumption Only Permit to be $1,000. The bill also indicates The On-Premises Consumption Only Permit may not be issued to commercial establishments already covered by a license or permit under the Alcoholic Beverage Code authorizing the sale or service of alcoholic beverages. The bill would require applications for On-Premises Consumption Only permits to be filed with the county judge and require county judges to deny applications for certain stipulations indicated in the bill. The bill would also require the Texas Alcoholic Beverage Commission (TABC) to refuse the issuance of a renewal permit for certain stipulations indicated in the bill. The bill would also allow a municipality or county to enact regulations prohibiting the consumption of alcoholic beverages at establishments that would be required to obtain the On-Premises Consumption Only permits which are located near certain schools, churches, or public hospitals. 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 requires the Texas Alcoholic Beverage Commission (TABC) to adopt all necessary rules to implement the provisions of the bill by November 1, 2009. 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 would require certain 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 also indicate certain establishments that would not be required to obtain the permit. The bill would require the annual fee for the On-Premises Consumption Only Permit to be $1,000. The bill also indicates The On-Premises Consumption Only Permit may not be issued to commercial establishments already covered by a license or permit under the Alcoholic Beverage Code authorizing the sale or service of alcoholic beverages.
The bill would require applications for On-Premises Consumption Only permits to be filed with the county judge and require county judges to deny applications for certain stipulations indicated in the bill. The bill would also require the Texas Alcoholic Beverage Commission (TABC) to refuse the issuance of a renewal permit for certain stipulations indicated in the bill. The bill would also allow a municipality or county to enact regulations prohibiting the consumption of alcoholic beverages at establishments that would be required to obtain the On-Premises Consumption Only permits which are located near certain schools, churches, or public hospitals.
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 requires the Texas Alcoholic Beverage Commission (TABC) to adopt all necessary rules to implement the provisions of the bill by November 1, 2009. 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 and would fall under the provisions of the bill. TABC permits are two-year permits, so the biennial fee for the 70 businesses that would fall under the bills requirements would be $2,000 ($1,000*2) for the new On-Premises Consumption Only Permit, resulting in a biennial revenue gain of $140,000 (70*$2,000). TABC is a self-funded agency and is required to fund both direct and indirect appropriation costs through fees and surcharges. In addition to the $2,000 charge per biennial license the agency would also add an additional $470 surcharge, resulting in additional $32,900 in General Revenue in fiscal years 2010, 2012, and 2014 (70*$470). The total General Revenue collected by TABC each year would be: $172,900 in fiscal year 2010 ($140,000 + $32,900); $0 in fiscal year 2011; $172,900 in fiscal year 2012 ($140,000 + $32,900); $0 in fiscal year 2013; and $172,900 in fiscal year 2014 ($140,000 + $32,900). In addition, TABC also indicates there may be other locations in the state that will be required to obtain permits under the provisions of the bill, but the agency is unable to determine how many. 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 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 and would fall under the provisions of the bill. TABC permits are two-year permits, so the biennial fee for the 70 businesses that would fall under the bills requirements would be $2,000 ($1,000*2) for the new On-Premises Consumption Only Permit, resulting in a biennial revenue gain of $140,000 (70*$2,000). TABC is a self-funded agency and is required to fund both direct and indirect appropriation costs through fees and surcharges. In addition to the $2,000 charge per biennial license the agency would also add an additional $470 surcharge, resulting in additional $32,900 in General Revenue in fiscal years 2010, 2012, and 2014 (70*$470). The total General Revenue collected by TABC each year would be: $172,900 in fiscal year 2010 ($140,000 + $32,900); $0 in fiscal year 2011; $172,900 in fiscal year 2012 ($140,000 + $32,900); $0 in fiscal year 2013; and $172,900 in fiscal year 2014 ($140,000 + $32,900). In addition, TABC also indicates there may be other locations in the state that will be required to obtain permits under the provisions of the bill, but the agency is unable to determine how many. 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.
Technology
Any technological costs could be absorbed within the agency's current appropriations.
Local Government Impact
Currently, cities and counties are able to collect a fee independent of the state fee of up to one-half the amount of the state fee for an alcoholic beverage permit; TABC indicates revenue may result for cities and counties where establishments that fall under the bill's provisions are located, however, the fiscal impact is not anticipated to be significant.
Source Agencies: 458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
LBB Staff: JOB, ESi, JRO, GG
JOB, ESi, JRO, GG