LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 1, 2011 TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1957 by Thompson (Relating to appeal from certain orders of the Texas Alcoholic Beverage Commission or the commission's administrator.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1957, As Introduced: a negative impact of ($94,016) through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 1, 2011
TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1957 by Thompson (Relating to appeal from certain orders of the Texas Alcoholic Beverage Commission or the commission's administrator.), As Introduced
TO: Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB1957 by Thompson (Relating to appeal from certain orders of the Texas Alcoholic Beverage Commission or the commission's administrator.), 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
HB1957 by Thompson (Relating to appeal from certain orders of the Texas Alcoholic Beverage Commission or the commission's administrator.), As Introduced
HB1957 by Thompson (Relating to appeal from certain orders of the Texas Alcoholic Beverage Commission or the commission's administrator.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1957, As Introduced: a negative impact of ($94,016) through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1957, As Introduced: a negative impact of ($94,016) 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 ($47,708) 2013 ($46,308) 2014 ($46,308) 2015 ($51,617) 2016 ($51,617)
2012 ($47,708)
2013 ($46,308)
2014 ($46,308)
2015 ($51,617)
2016 ($51,617)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2012 ($47,708) 1.0 2013 ($46,308) 1.0 2014 ($46,308) 1.0 2015 ($51,617) 1.0 2016 ($51,617) 1.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2012 ($47,708) 1.0 2013 ($46,308) 1.0 2014 ($46,308) 1.0 2015 ($51,617) 1.0 2016 ($51,617) 1.0
2012 ($47,708) 1.0
2013 ($46,308) 1.0
2014 ($46,308) 1.0
2015 ($51,617) 1.0
2016 ($51,617) 1.0
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to allow for appeals to district court for holders of licenses or permits that have had their conduct surety bonds forfeited due to three or more violations or a cancellation of the license or permit. The bill would also extend the time to hold a trial on the matter from 10 days to 60 days. The bill would take effect September 1, 2011.
The bill would amend the Alcoholic Beverage Code to allow for appeals to district court for holders of licenses or permits that have had their conduct surety bonds forfeited due to three or more violations or a cancellation of the license or permit. The bill would also extend the time to hold a trial on the matter from 10 days to 60 days. The bill would take effect September 1, 2011.
Methodology
The Texas Alcoholic Beverage Commission (TABC) anticipates that an additional 13 appeals from conduct surety bond forfeitures will be filed in district court. In FY10, there were 64 bond forfeiture cases, twenty percent (20%) of permit/license holders requested hearings for their cases for a total of 12 hearings. According to the TABC, fifteen percent (15%) of all cases for violations appeal further to district court. Using this formula, it is expected that the addition of appealed bond forfeiture cases will increase the number of appeals by 10 per year. It is possible that all permit/license holders will request hearings and then appeal in order to further delay a resulting forfeiture. Therefore, the possible impact would be an increase in the number of appeals to district court by as few as 10 cases, or as many as 64 cases. During the first year, the agency estimates the increase at fifty (50%) of the maximum or 32 appeals (50% X 64 appeals). The commission is required to prepare the record for the district courts review for each appeal, which would require employment of a legal assistant (1 FTE), at a cost of $94,016 through the biennium ending August 31, 2013.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 458 Alcoholic Beverage Commission
458 Alcoholic Beverage Commission
LBB Staff: JOB, AG, GG, DAR
JOB, AG, GG, DAR