LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 16, 2007

TO:	Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1431 by Van de Putte (Relating to the transfer of certain alcoholic beverages between certain permitted premises.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1431, As Introduced: a positive impact of $261,454 through the biennium ending August 31, 2009.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	$129,433
2009	$132,021
2010	$134,662
2011	$137,355
2012	$140,102

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1
2008	$129,433
2009	$132,021
2010	$134,662
2011	$137,355
2012	$140,102

Fiscal Analysis

The bill would amend the Alcoholic Beverage Code relating to the transfer of certain alcoholic beverages between certain permitted premises. The bill would allow wine and beer retailers with more than one location, who hold a local cartage permit, to transfer wine to and from the permit holder's permitted premises in the same county. The bill would take effect on September 1, 2007.

Methodology

The Alcoholic Beverage Commission (TABC) states there are currently 11,158 wine and beer retailers.  TABC estimates 10% of those retailers (1115.8 retailers) have more than one location in the same county and would obtain a local cartage permit for a fee of $116.  TABC also estimates a 2 percent per year increase in total wine and beer retailer licenses starting in fiscal year 2009.  TABC estimates the following increases in General Revenue per year: $129,433 (11,158 x .10 x $116) for fiscal year 2008; $132,021 (11,158 x 1.02 x .10 x $116) for fiscal year 2009; $134,662 (11,158 x 1.02 x 1.02 x .10 x $116) for fiscal year 2010; $137,355 (11,158 x 1.02 x 1.02 x 1.02 x .10 x $116) for fiscal year 2011; and $140,102 (11,158 x 1.02 x 1.02 x 1.02 x 1.02 x .10 x $116) for fiscal year 2012.

TABC states the bill would cost the agency $28,000 in fiscal year 2008 for updating licensing systems and reprinting of the retailer's guide to implement the provisions of the bill.  It is assumed the TABC costs could be absorbed within the agency’s current appropriations and therefore would not result in a significant fiscal impact to the state.

Technology

No signicant fiscal implications to technology is anticipated.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

458 Alcoholic Beverage Commission

LBB Staff:

JOB, JRO, GG, LG, DB