| TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB273 by Farrar (relating to the regulation of certain alcoholic beverage retailers; providing an administrative penalty. ), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | ($180,364) |
| 2007 | ($152,331) |
| 2008 | ($152,331) |
| 2009 | ($152,331) |
| 2010 | ($152,331) |
| Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2005 |
|---|---|---|
| 2006 | ($180,364) | 3.0 |
| 2007 | ($152,331) | 3.0 |
| 2008 | ($152,331) | 3.0 |
| 2009 | ($152,331) | 3.0 |
| 2010 | ($152,331) | 3.0 |
The bill would amend the Alcoholic Beverage Code to prohibit a person who is related within the fourth degree by consanguinity or affinity to a person against whom a proceeding is pending or a person whose permit has been suspended or canceled from applying for a permit or license for the premise covered by the wine and beer retailer's permit or retail dealer's on-premises license while the proceeding is pending or for a period of two years from the date of suspension or cancellation. This provision would only apply in a county with a population of 1.4 million or more.
The bill would also establish an administrative penalty for false or misleading statements in certain applications. The penalty would apply only to an original or renewal application in a county with a population of 1.4 million or more and the penalty could not exceed $4,000.
A person who applies for a wine and beer retailer's permit or retail dealer's on-premises license in a county with a population of 1.4 million or more would be required to file a surety bond with the Alcoholic Beverage Commission (TABC). The bill would also require a hearing not later than 60 days after receiving notification regarding the suspension or cancellation of a permit.
The bill would take effect September 1, 2005.
According to the 2000 federal census, only Harris County, Tarrant County, and Dallas County meet the population requirements of the bill. TABC reports that there are currently 2,775 wine and beer retailer's permits and 521 retail dealer's on-premises licenses in Harris County, Tarrant County, and Dallas County. The revenue that might be generated from the forfeiture of bonds or administrative penalties that may be imposed cannot be estimated and are not included in this analysis.
TABC estimates there would be an increase in the number of administrative hearings as a result of implementation of the bill. To address the increase in hearings, the Legal Division is allocated costs of $8,600 for equipment and furnishings in fiscal year 2006, and $108,845 in salaries (2 FTEs), benefits, and operating costs in fiscal year 2006. In subsequent fiscal years, the salaries, benefits, and operating costs would continue at $102,090, which includes $1,000 in professional fees for transcripts from the hearings. To address licensing qualifications and bond requirements, the Licensing Division is allocated total costs for one additional full-time-equivalent Accounts Examiner IV position at $62,919 in fiscal year 2006 and $50,241 in subsequent fiscal years.
The total cost would be $180,364 in fiscal year 2006 and $152,331 in subsequent fiscal years.
Technology costs include $5,000 in fiscal year 2006 for programming systems to comply with the provisions of the bill.
| Source Agencies: | 458 Alcoholic Beverage Commission
|
| LBB Staff: | JOB, JRO, VDS, LM, SJ
|