LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 21, 1997
         
         
      TO: Honorable Bob Bullock            IN RE:  Senate Bill No. 337, As Passed 2nd House
          Lieutenant Governor                West
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB337 ( relating 
to sanctions that may be imposed on the holder of an alcoholic 
beverage permit or license.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB337-As Passed 2nd House
         
Implementing the provisions of the bill would result in a net 
negative impact of $(49,500) to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         

         
 
Fiscal Analysis
 
The bill would allow the Texas Alcoholic Beverage Commission 
to determine whether a permittee or licensee would have the 
opportunity to pay a civil penalty, or whether they would have 
their permit or license suspended.  The bill would take effect 
on September 1, 1997.
 
Methodolgy
 
Under current law the Texas Alcoholic Beverage Commission must 
give the permittee or licensee the opportunity to pay a civil 
penalty rather than have their permit or license suspended. 
 The bill would give the Texas Alcoholic Beverage Commission 
the authority to decide whether a permittee or licensee would 
pay a civil penalty or have their permit or license suspended.

Currently, 
about 52 percent of permittees and licensees choose to pay civil 
penalties of about $1.6 million per year.  Assuming the Texas 
Alcoholic Beverage Commission would suspend a permit or license 
only under extreme circumstances, the revenue from penalties 
would decrease an estimated two percent.  Since the Texas Alcoholic 
Beverage Commission would have to adopt rules to implement the 
provision of the bill, the estimated decline in revenue from 
penalties is lower the first year.
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         ($16,500)                                                                        
       1998          (33,000)                                                                        
       2000          (33,000)                                                                        
       2001          (33,000)                                                                        
       2002          (33,000)                                                                        
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998            ($16,500)
               1999             (33,000)
               2000             (33,000)
               2001             (33,000)
               2002             (33,000)
 
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH