LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 17, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1620 by Eiland (Relating to liability insurance for
certain persons licensed or permitted under the Alcoholic
Beverage Code.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1620, As Introduced: negative impact of $(775,352) through the *
* biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $(391,146) *
* 2003 (384,206) *
* 2004 (384,206) *
* 2005 (385,386) *
* 2006 (384,206) *
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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 2001 *
* 0001 0001 *
* 2002 $(139,353) $(251,793) 5.0 *
* 2003 (132,413) (251,793) 5.0 *
* 2004 (132,413) (251,793) 5.0 *
* 2005 (133,593) (251,793) 5.0 *
* 2006 (132,413) (251,793) 5.0 *
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Fiscal Analysis
The bill would amend the Alcoholic Beverage Code by requiring certain
holders of a permit or license under the Code to maintain a liability
insurance policy.
The bill would take effect September 1, 2001.
Methodology
The Alcoholic Beverage Commission (ABC) estimates it would need the
salary, equipment, and operating costs associated with five additional
FTEs to process forms and verify insurance coverage. The ABC also
estimates a revenue loss based on a two percent decrease in licenses and
permits issued. The estimated reduction in licenses/permits issued
would be due to applicants not qualifying for coverage.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 458 Texas Alcoholic Beverage Commission
LBB Staff: JK, JO, JN, RK