LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
March 29, 2005

TO:
Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB2533 by Chisum (Relating to the possession of alcoholic beverages on the premises of certain sexually oriented businesses; providing a penalty.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2533, As Introduced: a negative impact of ($412,318) through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($210,432)
2007 ($201,886)
2008 ($198,616)
2009 ($196,096)
2010 ($198,826)




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1
2006 ($210,432)
2007 ($201,886)
2008 ($198,616)
2009 ($196,096)
2010 ($198,826)

Fiscal Analysis

The bill would amend the Alcoholic Beverage Code as it relates to the possession of alcoholic beverages on the premises of certain sexually oriented businesses and would provide for penalties.

The bill would make it a Class C misdemeanor for a person to knowingly possess an open container of alcohol on the premises of a sexually oriented business. 

The bill would take effect September 1, 2005.


Methodology

The Alcoholic Beverage Commission (TABC) assumes the majority of permit holders who operate sexually oriented businesses would let their permits expire under the provisions of the bill.  TABC reports that the loss in revenue would vary each year since permit fees decline each year, up to the third year of renewal.  TABC estimates the total loss to be $210,432 in fiscal year 2006, $201,886 in fiscal year 2007, $198,616 in fiscal year 2008, $196,096 in fiscal year 2009, and $198,826 in fiscal year 2010. 


Local Government Impact

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


Source Agencies:
458 Alcoholic Beverage Commission
LBB Staff:
JOB, JRO, VDS, SJ