LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 29, 2003

TO:	Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB922 by Eiland (relating to financial responsibility requirements for certain persons licensed or permitted under the Alcoholic Beverage Code. ), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB922, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2005.

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
2004	$0
2005	$0
2006	$0
2007	$0
2008	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GENERAL REVENUE FUND 1	Probable Revenue Gain from GENERAL REVENUE FUND 1	Change in Number of State Employees from FY 2003
2004	($381,090)	$381,090	9.0
2005	($322,596)	$322,596	9.0
2006	($322,596)	$322,596	9.0
2007	($322,596)	$322,596	9.0
2008	($322,596)	$322,596	9.0

Fiscal Analysis

The bill would amend the Alcoholic Beverage Code by requiring certain persons licensed or permitted under the Alcoholic Beverage Code to maintain a liability insurance policy issued by an insurance company authorized to issue insurance in the state.

Methodology

The Alcoholic Beverage Commission reports a total of 9 FTEs and associated operating costs would be required to implement the bill.  Personnel would be required in the certification section which would process notices, cancellations, and inquiries.  Additional FTEs would be required in the legal and compliance departments for monitoring, trainer testing, and assisting with an anticipated increase in hearings because of denied applications.  Salaries and wages and associated operating costs and benefits total $322,596.  First year printing costs for instruction booklets and initial one-time operating costs total $58,494.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:	454 Department of Insurance, 458 Alcoholic Beverage Commission
LBB Staff:	JK, JRO, VDS, AR