LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 11, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  House BillNo. 1419,
         Committee on State Affairs                            as engrossed
         Senate                                         By: Yarbrough
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1419 (Relating to certificates and permits issued by the
Alcoholic Beverage Commission and to regulation of private club
permittees by certain municipalities.) this office has determined
the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend the Alcoholic Beverage Code by allowing the
Texas Alcoholic Beverage Commission to issue food and beverage
certificates to certain holders of alcoholic beverage permits. 
By statute, the total permit and license fee revenue collected by
the Alcoholic Beverage Commission must equal its legislative
appropriations for the regulation of the industry.  In addition
to collecting the revenue from permits and license fees as set by
law, the Commission is authorized to levy a surcharge on all
permits and licenses (with the rate set by Commission rule) to
ensure that revenue collected equals appropriations.  As a
result, any increase in costs would be offset by a similar
increase in revenues.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
         





        
            Fiscal  Probable Cost Out   Probable Revenue      Change in    
             Year      of  General      Gain to  General   Number of State 
                     Revenue Fund 001   Revenue Fund 001    Employees from 
                                                               FY 1995     
                                                                           
          1996                 $65,951            $65,951               2.0
          1997                  53,951             53,951               2.0
                                                                           
          1998                  53,951             53,951               2.0
                                                                           
          1999                  53,951             53,951               2.0
          2000                  53,951             53,951               2.0
                                                                           
                                                                           
                                                                           
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No significant fiscal implication to units of local government is
anticipated.


Source:   Alcoholic Beverage Commission
          LBB Staff: JK, RT, DF, RR