LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
April 9, 2013

TO:
Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB3558 by Oliveira (Relating to intra-industry relationships between alcoholic beverage manufacturers, wholesalers, and retailers.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3558, As Introduced: a negative impact of ($589,994) through the biennium ending August 31, 2015.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 ($301,297)
2015 ($288,697)
2016 ($320,756)
2017 ($320,756)
2018 ($341,208)




Fiscal Year Probable (Cost) from
General Revenue Fund
1 		Change in Number of State Employees from FY 2013
2014 ($301,297) 6.0
2015 ($288,697) 6.0
2016 ($320,756) 6.0
2017 ($320,756) 6.0
2018 ($341,208) 6.0

Fiscal Analysis

The bill would amend Chapter 102 of the Alcoholic Beverage Code, by adding Section 102.011, which allows certain intra-industry relationships between alcoholic beverage manufacturers, wholesalers, and retailers. The bill repeals current Section 102.11, which provides that a manufacturer or distributor cannot own any interest in the business or premises of a retail dealer of beer and cannot hold or have any interest in a license to sell brewery products for on-premises consumption.

The bill would significantly affect the licensing review process. Due to the expected complexity of some of the ownership arrangements, the Alcoholic Beverage Commission (TABC) would need to hire additional staff for the review process and to represent the agency in legal hearings. The bill would take effect on September 1, 2013.


Methodology

The agency would add six new full-time equivalents. Salary and benefits costs are $278,707 for fiscal years 2014 and 2015, $310,766 for fiscal years 2016 and 2017, and $331,218 for fiscal year 2018. There is a one-time expenditure in fiscal year 2014 for computer equipment of $12,600 and $9990 in additional operating expenses per year.

Technology

Technology costs could be absorbed within the existing resources of the agency.

Local Government Impact

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


Source Agencies:
458 Alcoholic Beverage Commission
LBB Staff:
UP, RB, AI, KNi