LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 8, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB 2126, As Introduced: a positive impact of $161,690 through the biennium ending August 31, 2015. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 8, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB 2126, As Introduced: a positive impact of $161,690 through the biennium ending August 31, 2015. Estimated Two-year Net Impact to General Revenue Related Funds for HB 2126, As Introduced: a positive impact of $161,690 through the biennium ending August 31, 2015. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $161,690 2015 $0 2016 $161,690 2017 $0 2018 $161,690 2014 $161,690 2015 $0 2016 $161,690 2017 $0 2018 $161,690 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $161,690 2015 $0 2016 $161,690 2017 $0 2018 $161,690 Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $161,690 2015 $0 2016 $161,690 2017 $0 2018 $161,690 2014 $161,690 2015 $0 2016 $161,690 2017 $0 2018 $161,690 Fiscal Analysis The bill would amend the Alcoholic Beverage Code by adding Chapter 19A and creating a new permit type called the Wholesaler's Branch Permit. This new permit would allow wholesalers to store alcohol at auxiliary locations while in transit between the wholesaler and the retailer or another wholesaler. The bill would take effect on September 1, 2013. Methodology The Alcoholic Beverage Commission (TABC) estimates that there are approximately 190 holders of Wholesalers Permits in the state. TABC would establish a biennial fee of $150 for this new permit type and a biennial surcharge of $701. Therefore, the biennial fee for the permit would result in an estimated revenue stream of $28,500 (190 x $150) every other year. The biennial surcharge would result in an estimated revenue stream of $133,190 (190 x $701) every other year. Technology TABC would create a new permit type which would entail design of forms and programming costs. The agency maintains that these costs could be absorbed within existing resources. 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: UP, RB, AI, KNi UP, RB, AI, KNi