LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 5, 2011 TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2702 by Solomons (Relating to the application of statutes that classify political subdivisions according to population.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2702, As Introduced: a negative impact of ($962,900) through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 5, 2011
TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2702 by Solomons (Relating to the application of statutes that classify political subdivisions according to population.), As Introduced
TO: Honorable Byron Cook, Chair, House Committee on State Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB2702 by Solomons (Relating to the application of statutes that classify political subdivisions according to population.), As Introduced
Honorable Byron Cook, Chair, House Committee on State Affairs
Honorable Byron Cook, Chair, House Committee on State Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB2702 by Solomons (Relating to the application of statutes that classify political subdivisions according to population.), As Introduced
HB2702 by Solomons (Relating to the application of statutes that classify political subdivisions according to population.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2702, As Introduced: a negative impact of ($962,900) through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2702, As Introduced: a negative impact of ($962,900) 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 ($962,900) 2013 $0 2014 ($1,045,700) 2015 $0 2016 ($1,128,500)
2012 ($962,900)
2013 $0
2014 ($1,045,700)
2015 $0
2016 ($1,128,500)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 ($962,900) 2013 $0 2014 ($1,045,700) 2015 $0 2016 ($1,128,500)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 ($962,900) 2013 $0 2014 ($1,045,700) 2015 $0 2016 ($1,128,500)
2012 ($962,900)
2013 $0
2014 ($1,045,700)
2015 $0
2016 ($1,128,500)
Fiscal Analysis
The bill would amend sections of the Alcoholic Beverage Code relating to the Wine and Beer Retailers Permit and the Beer Retailers On Premise License, if those establishments are located in a county with a population of 1.8 million or more. Currently, the Alcoholic Beverage Code addresses these types of establishments in a county with a population of 1.4 million or more (Harris, Dallas and Tarrant Counties) with a different fee. After the 2010 census results, current statue would include Bexar County, thus increasing fees collected by the agency. The bill would increase the population for this type of permit to a county with a population of 1.8 million or more; excluding Bear County as current statute holds. Therefore, by increasing the population requirement to 1.8 million, the bill would have a negative effect on the gross revenue collected by TABC.
The bill would amend sections of the Alcoholic Beverage Code relating to the Wine and Beer Retailers Permit and the Beer Retailers On Premise License, if those establishments are located in a county with a population of 1.8 million or more. Currently, the Alcoholic Beverage Code addresses these types of establishments in a county with a population of 1.4 million or more (Harris, Dallas and Tarrant Counties) with a different fee. After the 2010 census results, current statue would include Bexar County, thus increasing fees collected by the agency.
The bill would increase the population for this type of permit to a county with a population of 1.8 million or more; excluding Bear County as current statute holds. Therefore, by increasing the population requirement to 1.8 million, the bill would have a negative effect on the gross revenue collected by TABC.
Methodology
The Texas Alcoholic and Beverage Commission estimates that for fiscal year 2012, a potential loss of revenue of $962,900 would be realized due to the decreased number of Wine and Beer Retailers Permits and Beer Retailers On Premises Licenses issued new ($1,650 per license) or as renewals ($1,150 per license). Since the Wine and Beer Retailers Permits and Beer Retailers On Premises Licenses are valid for two years, additional revenue loss is anticipated for Fiscal Year 2014 and Fiscal Year 2016, with increasing revenue loss due to the assumed addition of 67 Wine and Beer Retailers Permits and five (5) Beer Retailers On Premises Licenses every two years.
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, KJG, KKR, KM, GG, DAR
JOB, KJG, KKR, KM, GG, DAR