LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 18, 1999
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB106 by Alvarado (Relating to creation of an offense
involving presence of a minor on premises covered by
certain alcoholic beverage permits or licenses.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB106, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(411,810) $411,810 8.0 *
* 2001 (369,810) 369,810 8.0 *
* 2002 (369,810) 369,810 8.0 *
* 2003 (369,810) 369,810 8.0 *
* 2004 (369,810) 369,810 8.0 *
**************************************************************************
Fiscal Analysis
With specific exceptions, the provisions of the bill would prohibit the
presence of minors on the premises of Mixed Beverage permittees, Beer
On-Premises retailers, and Wine and Beer On-Premises retailers. The
Texas Alcoholic Beverage Commission (Commission) would incur costs from
acquiring additional personnel, and related costs, in order to ensure
compliance with the bill's provisions.
Methodology
The Commission estimates that the provisions of the bill would annually
affect approximately 3,000 licensed locations and would require eight
additional auditors for compliance monitoring and enforcement. The
auditors would travel to locations that had "minor in possession" (MIP)
citations for on-premise consumption, and would audit the gross receipts
of those locations to determine whether or not they had also incurred
"minor on the premise" violations. The estimated costs would cover the
salaries and benefits of eight auditor positions, travel costs,
equipment costs, and basic operating expenses (rent, supplies, postage,
etc). Since the Commission is required by statute to raise revenue
equal to its appropriation through surcharges on its permits and
licenses, the bill would also increase revenue in a like amount.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 452 Dept Of License & Reg, 458 Alcoholic Beverage
Comm
LBB Staff: JK, TH, MG, JN