LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 27, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 281
Committee on Licensing & Administrative Procedures By: Nixon, Joe
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB281 ( Relating
to the sale, consumption, and possession of alcoholic beverages
at sexually oriented business.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB281-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(3,655,854) to General Revenue Related Funds
through the biennium ending August 31, 1999.
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 take effect September 1, 1997.
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to prohibit
the sale, possession, or consumption of an alcoholic beverage
on the premises of a "sexually oriented" business.
Methodolgy
According to the Texas Alcoholic Beverage Commission, the number
of businesses issued a mixed beverage permit that voluntarily
define themselves as "sexually oriented" represent approximately
1.57 percent of all mixed beverage permit holders. Assuming
no change in overall spending levels, a potential loss of at
least $1.8 million would originate from the difference between
the 14 percent tax rate on mixed beverages and the general state
sales tax of 6.25 percent.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 ($1,827,927)
1998 (1,827,927)
2000 (1,827,927)
2001 (1,827,927)
2002 (1,827,927)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($1,827,927)
1999 (1,827,927)
2000 (1,827,927)
2001 (1,827,927)
2002 (1,827,927)
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: Agencies: 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,TH ,RT