Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1244 by Huffman (Relating to the amount of the fee imposed on certain sexually oriented businesses that is allocated to the sexual assault program fund and the allocation of certain other revenue to that fund; authorizing an increase in the amount of a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1244, As Introduced : a negative impact of ($30,902,000) through the biennium ending August 31, 2025.
In
addition, the bill would authorize the Legislature to set the amount of the
sexually oriented business fee in an amount greater than $5 in the General
Appropriations Act. As a result, there could be an additional revenue gain to Account 5010
- Sexual Assault Program, subject to appropriation.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024
($15,041,000)
2025
($15,861,000)
2026
($16,746,000)
2027
($17,683,000)
2028
($18,589,000)
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from Sexual Assault Prog Acct 5010
2024
($15,041,000)
$15,041,000
2025
($15,861,000)
$15,861,000
2026
($16,746,000)
$16,746,000
2027
($17,683,000)
$17,683,000
2028
($18,589,000)
$18,589,000
Fiscal Analysis
The bill would amend sections of the Business and Commerce Code, Government Code, and Tax Code to: allow the Legislature, in the General Appropriations Act, to set the sexually oriented business fee in an amount greater than the current $5; redefine the contents of Account 5010 - Sexual Assault Program (account); and to allocate one percent of both mixed beverage gross receipts tax and mixed beverage sales tax collections to the account.
Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
This analysis is based on the 2024-25 Biennial Revenue Estimate. The fiscal impacts shown are for the bill's allocation of 1 percent of mixed beverage tax collections to the account, only. The potential revenue gain associated with provisions of the bill that would allow the Legislature to set the amount of the sexually oriented business fee in an amount greater than $5 in the General Appropriations Act is subject to appropriation and therefore cannot be determined.
Local Government Impact
No fiscal implication to units of local government is anticipated.