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