LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 18, 2009

TO:	Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3850 by Thompson (Relating to importation and shipment of alcoholic beverages for personal consumption; providing a criminal penalty.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB3850, As Engrossed: a positive impact of $960,000 through the biennium ending August 31, 2011.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	$460,000
2011	$500,000
2012	$500,000
2013	$500,000
2014	$500,000

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from General Revenue Fund 1
2010	$460,000
2011	$500,000
2012	$500,000
2013	$500,000
2014	$500,000

Fiscal Analysis

The bill would amend the Alcoholic Beverage Code to standardize, for all persons, the limits on importation for personal consumption without being required to hold a permit to import 24 12-oz bottles of malt beverages, 3 gallons of wine, or one gallon of distilled spirits.  The bill would also increase the administrative fee collected by the Texas Alcoholic Beverage Commission (TABC) on imported alcoholic beverages from $.50 to $1.00.  The bill would also create a Class C misdemeanor offense for violations of the importation provisions in the Alcoholic Beverage Code.  The bill would repeal Sections 107.07 (b) and (c), and 107.12, Alcoholic Beverage Code.  The bill would take effect September 1, 2009.

Methodology

The Comptroller of Public Accounts (CPA) estimates the doubling of the administrative fee on imported alcoholic beverages from $.50 to $1.00 would result in additional revenue to the state, based on the 2010-11 Biennial Revenue Estimate.  The fiscal year 2010 estimate was adjusted for an implementation lag.  The CPA also indicates the potential impact on state liquor tax collections resulting from the increase in the quantities that can be legally imported from 1 quart to 1 gallon, cannot be determined.  This analysis assumes the costs associated with the implementation of the bill’s provisions can be absorbed within the Texas Alcoholic Beverage Commission’s (TABC) current appropriations.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission

LBB Staff:

JOB, JRO, GG, ESi