LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 24, 2009

TO:
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2070 by Cohen (Relating to the fee based on admissions to certain sexually oriented businesses.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB2070, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable Revenue Gain/(Loss) from
Sexual Assault Prog Acct
5010 		Probable Savings/(Cost) from
Sexual Assault Prog Acct
5010 		Change in Number of State Employees from FY 2009
2010 ($3,200,000) ($613,705) 3.0
2011 ($3,200,000) ($128,750) 2.0
2012 ($3,200,000) ($128,750) 2.0
2013 ($3,200,000) ($128,750) 2.0
2014 ($3,200,000) ($128,750) 2.0

Fiscal Analysis

The bill would amend Chapter 47, Business and Commerce Code, regarding sexually oriented businesses. The bill would reduce the fee imposed on a sexually oriented business relating to admissions from  the current $5 to $3. Revenue from this fee would be deposited into GR Account 5010 - Sexual Assault Program.

The bill would require the Comptroller to submit quarterly reports to the Legislature that include the amounts of revenue collected by this fee along with other information the Comptroller considers appropriate.

The Sexual Assault Advisory Council would be required to (1) report to the Legislature biennially on the cost of sexual assault to the state and major local jurisdictions; (2) develop a multi-year strategy for eradicating sexual assault in Texas; and (3) make recommendations on how to improve public safety in and around adult cabarets.

The Office of the Attorney General (OAG), through the Sexual Assault Advisory Council, would be required to conduct four studies and prepare a comprehensive strategic report for the 82nd Legislature by November 1, 2010.

The bill would take effect immediately upon enactment, assuming that it received the requisite two thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1,
2009.


Methodology

For the purpose of this analysis, it is assumed current law will continue. The impact is based on estimates from the 2010-11 Biennial Revenue Estimate, adjusted for the decrease in the amount of the fee proposed by this bill, and extended through fiscal 2014.

The existing $5 fee was challenged in state district court and ruled unconstitutional; the state is now appealing that decision. The bill would require the Comptroller to refund fee revenues collected if a court, in a final judgment upheld on appeal, determines the fee to be unconstitutional.

Under the provisions of the bill, additional requirements are placed on the OAG (as the facilitator and coordinator of the Sexual Assault Advisory Council.) Based on this analysis, the OAG would require one additional FTE in FY 2010 to assist with the reporting requirements of the bill and two additional FTE's in fiscal years 2010-2014 to manage additional grants.  It is assumed the OAG would incur technology costs of $20,580 for the 2010-11 biennium. This analysis assumes the cost to contract, conduct and finalize the study required under the provisions of the bill would be $100,000 per study (4 total) for a cost of $400,000 in FY 2010.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
302 Office of the Attorney General, 304 Comptroller of Public Accounts
LBB Staff:
JOB, MN, SD