Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2126 by Gutierrez (Relating to the creation of a permit to allow alcoholic beverage wholesalers to store alcoholic beverages at certain auxiliary locations; providing for a permitting fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB 2126, As Introduced: a positive impact of $161,690 through the biennium ending August 31, 2015.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014
$161,690
2015
$0
2016
$161,690
2017
$0
2018
$161,690
Fiscal Year
Probable Revenue Gain from General Revenue Fund 1
2014
$161,690
2015
$0
2016
$161,690
2017
$0
2018
$161,690
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code by adding Chapter 19A and creating a new permit type called the Wholesaler's Branch Permit. This new permit would allow wholesalers to store alcohol at auxiliary locations while in transit between the wholesaler and the retailer or another wholesaler. The bill would take effect on September 1, 2013.
Methodology
The Alcoholic Beverage Commission (TABC) estimates that there are approximately 190 holders of Wholesalers Permits in the state. TABC would establish a biennial fee of $150 for this new permit type and a biennial surcharge of $701. Therefore, the biennial fee for the permit would result in an estimated revenue stream of $28,500 (190 x $150) every other year. The biennial surcharge would result in an estimated revenue stream of $133,190 (190 x $701) every other year.
Technology
TABC would create a new permit type which would entail design of forms and programming costs. The agency maintains that these costs could be absorbed within existing resources.
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