LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2647 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-As Introduced 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: 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 $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