| TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1667 by Geren (Relating to the amount of the fee for issuing certain alcoholic beverage permits. ), Committee Report 2nd House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $101,275 |
| 2009 | $101,275 |
| 2010 | $101,275 |
| 2011 | $101,275 |
| 2012 | $101,275 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
|---|---|
| 2008 | $101,275 |
| 2009 | $101,275 |
| 2010 | $101,275 |
| 2011 | $101,275 |
| 2012 | $101,275 |
The bill would amend the Alcoholic Beverage Code relating to the amount of the fee for issuing certain alcoholic beverage permits.
The bill would amend the Alcoholic Beverage Code, Sections 25 and 69, which states the annual state fee for a wine and beer retailer's permit is $275. The bill states the annual state fee for an original wine and beer retailer’s permit and a retail dealer’s on-premise license located in a county with a population of 1.4 million or more other than a permit issued with a food and beverage certificate is $1000 and the annual renewal of each license is $750. The bill states the annual state fee for an original and annual renewal of a wine and beer retailer’s permit issued to a fraternal organization is $175. The bill states the annual state fee for a retail dealer’s on-premise license is $250. The bill states the annual state fee for an original and annual renewal of a retail dealer’s on-premise license issued to a fraternal organization is $150. The bill would take effect September 1, 2007 and apply only to fees due on or after the effective date of this Act.
The Alcoholic Beverage Commission (TABC) states that there are currently 2,410 wine and beer retailer’s permit holders in Harris, Dallas, and Tarrant counties (populations at 1.4 million or more) with 1,043 holding a food and beverage certificate. The renewal fee of these current applications would be reduced from $750 ($750 x 1,043 = $782,250) to $275 ($275 x 1,043 = $286,825) which would be a General Revenue loss of $495,425 per year. Based on current information, there are 137 retail dealer's on-premise licenses in Harris,
TABC states that there are currently 5,907 wine and beer retailer's permits in all other counties throughout the state. The renewal fee of these current applications would increase from $175 ($175 x 5,907 = $1,033,725) to $275 ($275 x 5,907 = $1,624,425) which would be a General Revenue gain of $590,700. Based on current information, there are 1,120 retail dealer's on-premise licenses in all other counties throughout the state. The renewal fee of these current applications would increase from $150 ($150 x 1,120 = $168,000) to $250 ($250 x 1,120 = $280,000) which would be a General Revenue gain of $112,000. By increasing the fees for all other counties, the state would experience a total General Revenue gain of $702,700 per year ($590,700 + $112,000). Included in this revenue gain are 375 fraternal and veteran’s organizations and the revenues are $100 less per entity than are currently charged. Because of this change, the revenue estimate of $702,700 would need to be reduced by $37,500 (375 x $100). The net revenue change would be an overall General Revenue increase of $101,275 per year ($702,700 - $563,925 - $37,500).
The technology costs estimated to comply with the provisions of the bill include $10,800 in General Revenue in fiscal year 2008 for program changes to the permit licensing system. This analysis assumes TABC can absorb this fiscal impact within current appropriations.
| Source Agencies: | 458 Alcoholic Beverage Commission
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| LBB Staff: | JOB, JRO, GG, LG
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