LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 7, 2023 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3345 by Bonnen (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3345, As Engrossed : a negative impact of ($32,742,000) through the biennium ending August 31, 2025. However there would be a gain of $60,327,000 to the Sexual Assault Program Account. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($15,918,000)2025($16,824,000)2026($17,721,000)2027($18,671,000)2028($19,589,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromSexual Assault Prog Acct50102024($15,918,000)$29,066,0002025($16,824,000)$31,261,0002026($17,721,000)$32,346,0002027($18,671,000)$33,483,0002028($19,589,000)$34,589,000 Fiscal AnalysisThe bill would amend sections of the Business and Commerce Code, Government Code, and Tax Code to: increase the sexually oriented business fee from $5 to $10; redefine the contents of GR Account 5010 - Sexual Assault Program (account); and to allocate one percent of both mixed beverage gross receipts tax and mixed beverage sales tax collections to the account.Note: This legislation would do one or more of the following: create or recreate a dedicatedaccount in the General Revenue Fund, create or recreate a special or trust fund either in, with, oroutside the Treasury, or create a dedicated revenue source. The fund, account, or revenuededication included in this bill would be subject to funds consolidation review by the currentLegislature.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 7, 2023
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3345 by Bonnen (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.), As Engrossed
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3345 by Bonnen (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.), As Engrossed
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3345 by Bonnen (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.), As Engrossed
HB3345 by Bonnen (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; increasing the amount of a fee.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3345, As Engrossed : a negative impact of ($32,742,000) through the biennium ending August 31, 2025. However there would be a gain of $60,327,000 to the Sexual Assault Program Account.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3345, As Engrossed : a negative impact of ($32,742,000) through the biennium ending August 31, 2025. However there would be a gain of $60,327,000 to the Sexual Assault Program Account.
However there would be a gain of $60,327,000 to the Sexual Assault Program Account.
General Revenue-Related Funds, Five- Year Impact:
2024 ($15,918,000)
2025 ($16,824,000)
2026 ($17,721,000)
2027 ($18,671,000)
2028 ($19,589,000)
All Funds, Five-Year Impact:
2024 ($15,918,000) $29,066,000
2025 ($16,824,000) $31,261,000
2026 ($17,721,000) $32,346,000
2027 ($18,671,000) $33,483,000
2028 ($19,589,000) $34,589,000
Fiscal Analysis
The bill would amend sections of the Business and Commerce Code, Government Code, and Tax Code to: increase the sexually oriented business fee from $5 to $10; redefine the contents of GR Account 5010 - Sexual Assault Program (account); and to allocate one percent of both mixed beverage gross receipts tax and mixed beverage sales tax collections to the account.Note: This legislation would do one or more of the following: create or recreate a dedicatedaccount in the General Revenue Fund, create or recreate a special or trust fund either in, with, oroutside the Treasury, or create a dedicated revenue source. The fund, account, or revenuededication included in this bill would be subject to funds consolidation review by the currentLegislature.
Methodology
This analysis is based on the 2024-25 Biennial Revenue Estimate. The effects of the increase in the sexually oriented business fee assume other discretionary spending will decline by the amount of fee increase.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI