COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3805-01

Bill No.:          HB 2063

Subject:           Alcohol; Public Safety Department

Type:              Original

Date:               February 19, 2008

Bill Summary:            This proposal allows certain organizations who sell intoxicating liquor by the drink on the premises to obtain a special license to remain open until 3:00 a.m. and to open on Sundays at 8:00 a.m.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Public Safety - Alcohol and Tobacco Control (ATC) state this bill creates a new license type which allows certain establishments exempt from paying federal income taxes to remain open until 3:00 a.m. Monday through Saturday nights. ATC estimate that about 10% of current licensees with this type of license (RBDE) will apply for this license. There are 517 RBDE's currently; therefore, 51 would apply for the additional license at $300 for a total increase in state revenue of $15,510 annually.

DPS estimates an increase in state liquor license fees of $15,510 annually (517 /10 x $300). DPS assumes the same fee revenue for counties since they may charge a fee equal to the state liquor license fees (Section 311.220). DPS also assumes an annual fee revenue amount of $17,449 for cities, since an estimated 75% of the licenses would be located in cities, and these cities may charge 150% of the state fee (517 x 10% x 75% x $300 x 150%). DPS assumes 10 months of impact for FY 2009.

Oversight will utilize DPS’s estimation of 51 new licenses sold. Therefore, Oversight will assume $15,300 (51 x $300) of state liquor license fee revenue in a given year will be collected. Oversight will assume the same amount of revenue for counties and that 38 of the 51 new licenses (roughly 75%) will be in a city and would pay 150% of the state and county rate for the new license (38 x $300 x 150% = $17,100).

This proposal could increase Total State Revenues.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

This proposal allows certain charitable, fraternal, religious, service, or veterans' organizations that are exempt from federal taxes and have or are qualified to have a license to sell intoxicating liquor by the drink on their premises to obtain a special permit for $300 per year to remain open until 3:00 a.m. each day and to open on Sundays at 8:00 a.m.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Public Safety

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 19, 2008