LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 1, 1997
         
         
      TO: Honorable Ron Wilson, Chair            IN RE:  House Bill No. 2647, Committee Report 1st House, Substituted
          Committee on Licensing & Administrative Procedures                              By: Hamric
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2647 ( relating 
to hearing requirements for sexually oriented businesses applying 
for certain permits and licenses under the Alcoholic Beverage 
Code.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2647-Committee Report 1st House, Substituted
         
Implementing the provisions of the bill would result in a net 
impact of $0 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.
         
 
Fiscal Analysis
 
The bill would modify the conditions under which the Texas Alcoholic 
Beverage Commission would have to conduct a permit/license hearing 
for a sexually oriented business.  Under the provisions of the 
bill, an elected official representing the area where a sexually 
oriented business is to operated could request a hearing and 
the conditions under which residents could petition for a hearing 
are modified.
 
Methodolgy
 
An estimated 175 permits per year would be effected by the provisions 
of this bill.
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           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from General       General Revenue    Employees from                                          
            Revenue Fund       Fund               FY 1997                                                 
            0001               0001                                                                        
       1998      ($1,811,318)        $1,811,318               3.0                                    
       1998       (1,796,318)         1,796,318               3.0                                    
       2000       (1,796,318)         1,796,318               3.0                                    
       2001       (1,796,318)         1,796,318               3.0                                    
       2002       (1,796,318)         1,796,318               3.0                                    
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH ,RT