LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 12, 2013 TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB34 by Menéndez (Relating to the consumption of alcoholic beverages on certain premises; providing a penalty.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB34, As Introduced: a positive impact of $234,000 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 12, 2013
TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB34 by Menéndez (Relating to the consumption of alcoholic beverages on certain premises; providing a penalty.), As Introduced
TO: Honorable Wayne Smith, Chair, House Committee On Licensing & Administrative Procedures
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB34 by Menéndez (Relating to the consumption of alcoholic beverages on certain premises; providing a penalty.), 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
HB34 by Menéndez (Relating to the consumption of alcoholic beverages on certain premises; providing a penalty.), As Introduced
HB34 by Menéndez (Relating to the consumption of alcoholic beverages on certain premises; providing a penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB34, As Introduced: a positive impact of $234,000 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB34, As Introduced: a positive impact of $234,000 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 $222,000 2015 $12,000 2016 $216,000 2017 $24,000 2018 $198,000
2014 $222,000
2015 $12,000
2016 $216,000
2017 $24,000
2018 $198,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $222,000 2015 $12,000 2016 $216,000 2017 $24,000 2018 $198,000
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $222,000 2015 $12,000 2016 $216,000 2017 $24,000 2018 $198,000
2014 $222,000
2015 $12,000
2016 $216,000
2017 $24,000
2018 $198,000
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to create a new On-Premises Consumption Permit and establish an annual state fee of $3,000 for the new permit. This permit would be required for the owner of a commercial establishment that is a sexually-oriented business that allows a person to consume alcoholic beverages or bring alcoholic beverages on the premises for consumption and the establishment is not covered by any other license or permit issued by the Texas Alcoholic Beverage Commission (TABC). The bill would take effect on September 1, 2013.
Methodology
The Comptroller of Public Accounts estimates that there are 41 commercial public businesses expected to require an On-Premises Consumption Only Permit. It is assumed that 10 percent will cease operating as obtaining a license might not allow for the continuance of profitable business operations. Further, it assumed that five percent of ongoing businesses will change ownership annually and require a new permit. Since permits are issued every two years, it is assumed the permit fee would be $6,000 per biennium.
Local Government Impact
The bill creates Class A, Class B, and Class C misdemeanors. Costs associated with enforcement, prosecution and confinement could likely be absorbed within existing resources. Revenue gain from fines imposed and collected is not anticipated to have a significant fiscal implication.
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, KKR
UP, RB, AI, KNi, KKR