| TO: | Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1751 by Cohen (Relating to the imposition and use of a fee on certain sexually oriented businesses.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $16,260,000 |
| 2009 | $53,017,000 |
| 2010 | $41,930,000 |
| 2011 | $60,944,000 |
| 2012 | $43,987,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from SEXUAL ASSAULT PROG ACCT 5010 |
Probable Revenue Gain/(Loss) from Cities and Counties |
|---|---|---|---|
| 2008 | $16,260,000 | $18,000,000 | ($660,000) |
| 2009 | $53,017,000 | $0 | ($825,000) |
| 2010 | $41,930,000 | $18,000,000 | ($933,000) |
| 2011 | $60,944,000 | $0 | ($948,000) |
| 2012 | $43,987,000 | $18,000,000 | ($965,000) |
The bill would amend Chapter 47 of the Business and Commerce Code to establish an admission fee of $5 on customers of sexually oriented businesses that provide live nude entertainment or performances. The bill would require the Comptroller of Public Accounts to develop rules for the administration, payment, collection, and enforcement of these fees.
The bill requires the Comptroller to deposit up to $18 million of the fee revenue to the credit of the Sexual Assualt Program Fund in a fiscal biennium. Any excess revenue is to be deposited to the credit of the General Revenue Fund.
The bill would take effect September 1, 2007.
The Comptroller of Public Accounts estimated the fiscal impact based on establishment data, relating to those entities that would qualify under the provision of the bill, provided by the Texas Alcoholic Beverage Commission (TABC). The estimate includes an adjustment to the establishment count to account for such entities not licensed by TABC. The estimate assumes that the $5 admissions charge required under the provisions of the bill, would have a negative effect on the sale of alcoholic beverages in those establishments licensed by TABC, which would result in a loss of revenue from the mixed beverage tax to the state and local units of government. The estimate for the fiscal 2008 includes an adjustment for the effective date, the quarterly reporting requirement, and employer collection and compliance considerations.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, DB, CT, SD, EB
|