LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 21, 2013 TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB828 by Van de Putte (Relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB 828, Committee Report 1st House, Substituted: a positive impact of $10,062 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 21, 2013
TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB828 by Van de Putte (Relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee.), Committee Report 1st House, Substituted
TO: Honorable John Carona, Chair, Senate Committee On Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB828 by Van de Putte (Relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee.), Committee Report 1st House, Substituted
Honorable John Carona, Chair, Senate Committee On Business & Commerce
Honorable John Carona, Chair, Senate Committee On Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB828 by Van de Putte (Relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee.), Committee Report 1st House, Substituted
SB828 by Van de Putte (Relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB 828, Committee Report 1st House, Substituted: a positive impact of $10,062 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for SB 828, Committee Report 1st House, Substituted: a positive impact of $10,062 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 $10,062 2015 $0 2016 $10,062 2017 $0 2018 $10,062
2014 $10,062
2015 $0
2016 $10,062
2017 $0
2018 $10,062
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $10,062 2015 $0 2016 $10,062 2017 $0 2018 $10,062
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2014 $10,062 2015 $0 2016 $10,062 2017 $0 2018 $10,062
2014 $10,062
2015 $0
2016 $10,062
2017 $0
2018 $10,062
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code by adding Chapter 15, which creates a new permit type called a Distiller's Agent's Permit and establishes an annual state fee of $10 for the new permit. The holder of a distiller's agent's permit may represent the holder of a distiller's and rectifier's permit, solicit and take orders from a holder of a wholesaler's permit for the sale of distilled spirits manufactured by the permit holder represented by the agent, and conduct free distilled spirits tastings for consumers on the premises of the holder of a package store permit.
Methodology
There are currently 43 holders of distiller's permits in the state. The Alcoholic Beverage Commission (TABC) estimates that each holder will have two agents represent them, which would create 86 entities eligible for the new permit type. The annual fee for the permit is $10 and TABC would establish a new annual surcharge for the permit in the amount of $47. Therefore, the biennial fee for the permit would be $117, resulting in an estimated revenue stream of $10,062 (86 x $117) 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 can be absorbed within existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
458 Alcoholic Beverage Commission, 304 Comptroller of Public Accounts
LBB Staff: UP, KNi, RB, AI
UP, KNi, RB, AI