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 ************************************************************************** * 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *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 * ************************************************************************** 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