LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION February 28, 2011 TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB175 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 HB175, As Introduced: a positive impact of $162,757 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
February 28, 2011
TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB175 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB175 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), 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
HB175 by Jackson, Jim (Relating to the on-premises consumption of certain alcoholic beverages; providing a penalty.), As Introduced
HB175 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 HB175, As Introduced: a positive impact of $162,757 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for HB175, As Introduced: a positive impact of $162,757 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 $163,555 2013 ($798) 2014 $172,102 2015 ($798) 2016 $172,102
2012 $163,555
2013 ($798)
2014 $172,102
2015 ($798)
2016 $172,102
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2012 ($9,345) $172,900 2013 ($798) $0 2014 ($798) $172,900 2015 ($798) $0 2016 ($798) $172,900
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2012 ($9,345) $172,900 2013 ($798) $0 2014 ($798) $172,900 2015 ($798) $0 2016 ($798) $172,900
2012 ($9,345) $172,900
2013 ($798) $0
2014 ($798) $172,900
2015 ($798) $0
2016 ($798) $172,900
Fiscal Analysis
The bill would create a new On-Premises Consumption Only permit and establish an annual state fee of $1,000 for the new permit. This permit would be required for the owner of a commercial establishment that provides entertainment/social activities or charges a fee (payment, dues or mandatory purchase) for admittance to the establishment and allows a person to bring alcoholic beverages on the establishments premises for consumption. The bill exempts establishments that prepare and serve food and operate under a food service permit, as well as veterans/fraternal organizations. The bill also states that an On-Premises Consumption Only permit may not be issued for a premise covered by a license or permit under the Alcoholic Beverage code. The Texas Alcoholic Beverage Commission would adopt all rules necessary to implement the provisions of the bill by November 1, 2011. Businesses required by the bill to have an On-Premises Consumption Only permit would be required to be in compliance with the bill by January 1, 2012.
The bill would create a new On-Premises Consumption Only permit and establish an annual state fee of $1,000 for the new permit. This permit would be required for the owner of a commercial establishment that provides entertainment/social activities or charges a fee (payment, dues or mandatory purchase) for admittance to the establishment and allows a person to bring alcoholic beverages on the establishments premises for consumption. The bill exempts establishments that prepare and serve food and operate under a food service permit, as well as veterans/fraternal organizations. The bill also states that an On-Premises Consumption Only permit may not be issued for a premise covered by a license or permit under the Alcoholic Beverage code.
The Texas Alcoholic Beverage Commission would adopt all rules necessary to implement the provisions of the bill by November 1, 2011. Businesses required by the bill to have an On-Premises Consumption Only permit would be required to be in compliance with the bill by January 1, 2012.
Methodology
The bill would authorize the Texas Alcoholic Beverage Commission (TABC) to create a new permit type and collect the fees associated with the permit. This bill would create a fiscal impact of $9,345 in FY 2012 for start-up and implementation costs and annual reoccurring software maintenance charges of $798. The bill would also generate revenue for permit fees collected by the TABC on a biennial basis according to the issue date of the new permit type. The TABC has moved to two year permits as stated in the Alcoholic Beverage Code Section 11.09. Therefore, the biennial fee for the permit would be $2,000 resulting in an estimated revenue stream of $140,000 every other year; based on the 70 Texas businesses identified by the TABC that this bill would affect. The biennial surcharge would be estimated at $470 resulting in estimated revenue of $32,900 every other year. The annual operating costs in subsequent years associated with the bill would be $798 for software maintenance through the Data Center Consolidation Project. Permit fees would be collected on a biennial basis according to issue date of the new permit type, resulting in a revenue stream of $140,000 every other year, based on an estimate of business who will probably seek a permit. A rule would be adopted to establish a surcharge. The biennial surcharge would be estimated at $470 resulting in estimated revenue of $32,900 every other year. If any of the businesses obtained food service permits and prepared and served food, they would be exempt and revenue could be zero from those particular businesses.
The bill would authorize the Texas Alcoholic Beverage Commission (TABC) to create a new permit type and collect the fees associated with the permit. This bill would create a fiscal impact of $9,345 in FY 2012 for start-up and implementation costs and annual reoccurring software maintenance charges of $798. The bill would also generate revenue for permit fees collected by the TABC on a biennial basis according to the issue date of the new permit type. The TABC has moved to two year permits as stated in the Alcoholic Beverage Code Section 11.09. Therefore, the biennial fee for the permit would be $2,000 resulting in an estimated revenue stream of $140,000 every other year; based on the 70 Texas businesses identified by the TABC that this bill would affect. The biennial surcharge would be estimated at $470 resulting in estimated revenue of $32,900 every other year. The annual operating costs in subsequent years associated with the bill would be $798 for software maintenance through the Data Center Consolidation Project. Permit fees would be collected on a biennial basis according to issue date of the new permit type, resulting in a revenue stream of $140,000 every other year, based on an estimate of business who will probably seek a permit. A rule would be adopted to establish a surcharge. The biennial surcharge would be estimated at $470 resulting in estimated revenue of $32,900 every other year. If any of the businesses obtained food service permits and prepared and served food, they would be exempt and revenue could be zero from those particular businesses.
Technology
Programming costs included in this analysis are based on current rates paid to the agencys vendors. Additionally, estimates have been included for increases in the Data Center Consolidation cost for software maintenance. The programming costs total $7,980 and would result in an increase in software maintenance of $798 per year.
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, AG, GG, DAR
JOB, AG, GG, DAR