LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 18, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 337
Committee on State Affairs By: West, Royce
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 Introduced
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.
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 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 fist 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:
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 ($16,500)
1999 (33,000)
2000 (33,000)
2001 (33,000)
2002 (33,000)
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
LBB Staff: JK ,JD ,RT