LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 28, 2003

TO:	Honorable Glenn Lewis, Chair, House Committee on County Affairs
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2257 by Zedler (Relating to the regulation of sexually oriented businesses.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Local Government Code to prohibit issuing an on-sale license to a sexually oriented business. The bill would take effect September 1, 2003.

According to the Texas Alcoholic Beverage Commission (TABC), based on the number of sexually oriented businesses that are currently permit/license holders (354), there would be a reduction in surcharges collected in the amount of $243,346 per year. Because TABC collects fees and surcharges sufficient to cover its appropriation, there would be no cost to General Revenue.

Local Government Impact

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

Source Agencies:	458 Alcoholic Beverage Commission
LBB Staff:	JK, DLBa