LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
April 23, 2005

TO:
Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB2590 by Gonzales (relating to the issuance of a package store tasting permit to the holder of a wine only package store permit. ), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB2590, Committee Report 1st House, Substituted: a negative impact of ($5,463) through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($26,699)
2007 $21,236
2008 $21,236
2009 $21,236
2010 $21,236




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1
2006 ($35,800) $9,101
2007 $0 $21,236
2008 $0 $21,236
2009 $0 $21,236
2010 $0 $21,236

Fiscal Analysis

The bill would amend the Alcoholic Beverage Code as it relates to the issuance of a package store tasting permit to the holder of a wine only package store permit.

 

The bill would allow the holder of a wine only package store permit and a package store tasting permit to conduct product tastings of the alcoholic beverage they are permitted to sell. 

 

The bill would take effect immediately if a two-thirds majority vote in both houses of the Legislature is received. Otherwise, the bill would take effect on September 1, 2005.


Methodology

The Texas Alcoholic Beverage Commission (TABC) estimates total first-year implementation costs of $35,800 which include updated forms, publications, manuals, and databases to comply with the provisions of the bill. 

TABC reports there are currently 809 package store tasting permits and projects that there will be an increase of 15 percent of such permits in the first year and a 35 percent increase in the second year, with the number of new package store tasting permits stabilizing in subsequent years.  The current cost for a package store tasting permit is $75.  It is estimated that there would be $9,101 ((809 package store tasting permits x 15 percent) x $75) in additional revenue generated in fiscal year 2006 and $21,236 ((809 package store tasting permits x 35 percent) x $75) in each subsequent fiscal year. 


Technology

Technology costs include $5,000 in fiscal year 2006 for programming systems to comply with the provisions of the bill.


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, LM