LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION Revision 1 March 21, 2011 TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1469, As Introduced: a negative impact of ($14,630) through the biennium ending August 31, 2013. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION Revision 1 March 21, 2011 Revision 1 Revision 1 TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE: HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1469, As Introduced: a negative impact of ($14,630) through the biennium ending August 31, 2013. Estimated Two-year Net Impact to General Revenue Related Funds for HB1469, As Introduced: a negative impact of ($14,630) through the biennium ending August 31, 2013. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 ($13,300) 2013 ($1,330) 2014 ($1,330) 2015 ($1,330) 2016 ($1,330) 2012 ($13,300) 2013 ($1,330) 2014 ($1,330) 2015 ($1,330) 2016 ($1,330) All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 ($13,300) 2013 ($1,330) 2014 ($1,330) 2015 ($1,330) 2016 ($1,330) Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 ($13,300) 2013 ($1,330) 2014 ($1,330) 2015 ($1,330) 2016 ($1,330) 2012 ($13,300) 2013 ($1,330) 2014 ($1,330) 2015 ($1,330) 2016 ($1,330) Fiscal Analysis The bill would amend the Alcoholic Beverage Code, regarding provisions applicable to permits. The bill would exclude fraternal and veterans organizations from the requirement for businesses located in a county with a population of 1.4 million or more to file a surety bond with the Texas Alcoholic Beverage Commission when applying for or reinstating a permit or license under Chapter 25 (wine and beer retailer's permit) or Chapter 69 (retail dealer's on-premise license) of the Code. Currently, all BG Permits (on or off premise beer and wine permit) and BE Permits (on-premise beer license) located in Dallas, Tarrant and Harris Counties, that do not hold a food and beverage certificate and whose primary business is not food are required to post an initial surety (performance) bond in the amount of $2,000. This bill would exempt veteran and fraternal organizations from this requirement. The bill would take effect immediately upon enactment if it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011. Methodology The bill would not have a significant revenue impact to the state, but it would cause the agency to incur a cost of $13,300 in FY 2012 for software system enhancements (10 days at $1,330 a day) and annual operating costs of $1,330 for annual software maintenance. Technology Programming costs included in this fiscal note are based on current rates paid to the agencys software vendor, including increases in recurring annual software maintenance costs. Local Government Impact No significant 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, AG, GG, DAR JOB, AG, GG, DAR