LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 26, 1999 TO: Honorable David Sibley, Chair, Senate Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: SB63 by Gallegos (relating to the effects of an expired or suspended alcoholic beverage license or permit), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB63, Committee Report 1st House, Substituted: 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. * ************************************************************************** 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: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from General Revenue Fund * * 0001 0001 * * 2000 $(51,796) $51,796 * * 2001 (51,796) 51,796 * * 2002 (51,796) 51,796 * * 2003 (51,796) 51,796 * * 2004 (51,796) 51,796 * *************************************************************************** Fiscal Analysis The bill requires secondary permits to have the same expiration dates as basic or primary permits. The Texas Alcoholic Beverage Commission (TABC) would be required to verify that the holder of an expired or suspended retail permit is not operating in violation of code. TABC would also be required to notify wholesalers and distributors of expired or suspended permits. Methodology Additional operating costs to TABC are determined by the number of primary permits expiring or being suspended annually and the number of wholesalers and distributors required to be notified under the bill. Since TABC 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 fiscal implication to units of local government is anticipated. Source Agencies: 458 Alcoholic Beverage Commission LBB Staff: JK, TH, MG