Honorable Mike Hamilton, Chair, House Committee on Licensing & Administrative Procedures
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
HB1469 by Hernandez Luna (Relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1469, As Introduced: a negative impact of ($14,630) through the biennium ending August 31, 2013.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012
($13,300)
2013
($1,330)
2014
($1,330)
2015
($1,330)
2016
($1,330)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2012
($13,300)
2013
($1,330)
2014
($1,330)
2015
($1,330)
2016
($1,330)
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code, regarding provisions applicable to permits. The bill would exclude fraternal and veterans organizations from the requirement for businesses located in a county with a population of 1.4 million or more to file a surety bond with the Texas Alcoholic Beverage Commission when applying for or reinstating a permit or license under Chapter 25 (wine and beer retailer's permit) or Chapter 69 (retail dealer's on-premise license) of the Code. Currently, all BG Permits (on or off premise beer and wine permit) and BE Permits (on-premise beer license) located in Dallas, Tarrant and Harris Counties, that do not hold a food and beverage certificate and whose primary business is not food are required to post an initial surety (performance) bond in the amount of $2,000. This bill would exempt veteran and fraternal organizations from this requirement.
The bill would take effect immediately upon enactment if it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.
Methodology
The bill would not have a significant revenue impact to the state, but it would cause the agency to incur a cost of $13,300 in FY 2012 for software system enhancements (10 days at $1,330 a day) and annual operating costs of $1,330 for annual software maintenance.
Technology
Programming costs included in this fiscal note are based on current rates paid to the agency’s software vendor, including increases in recurring annual software maintenance costs.
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