LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 12, 1995 TO: Honorable Ken Armbrister, Chair IN RE: Committee Substitute Committee on State Affairs for Senate House Bill Austin, Texas No. 1419 By: Cain 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 $764,040 $746,040 18.0 1997 679,016 679,016 18.0 1998 679,746 679,746 18.0 1999 665,655 665,655 18.0 2000 665,831 665,831 18.0 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, BR, DF