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F I S C A L I M P A C T R E P O R T

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

1/23/08

HB

SHORT TITLE

Knowledge of Providing Minors With Alcohol

SB 230

ANALYST C. Sanchez

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08 FY09

FY10 3 Year

Total Cost

Recurring

or Non-

Rec

Fund

Affected

Total

Indeterminable

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

Department of Public Defenders (PD)

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

Senate Bill 230 amends the section of the Liquor Control Act relating to sales of alcoholic

beverages to minors. Currently, the Liquor Control Act states that it is a violation for a person,

including a licensee, lessee, employee or agent of the licensee to sell, serve or give alcoholic

beverages to a minor or to permit a minor to consume alcohol on the licensed premises if the

person violating the Act knows or has reason to know that he is violating the Act. SB 230

removes the phrase “or has reason to know", thereby requiring that a person must know he is

selling alcohol to a minor.

FISCAL IMPLICATIONS

Currently, the Alcohol and Gaming Division collects fines and penalties for violations of the

Liquor Control Act, which includes fines for sales to minors. The decrease in the amount of

fines is indeterminate as it is unknown how many citations will be written or proven to be

factual. Fines collected are deposited into the General Fund.

There will be a minimal administrative cost for statewide update, distribution, and

documentation of statutory changes. The amendment could reduce the fiscal and administrative

burden upon the courts.

Senate Bill 230 – Page

2

SIGNIFICANT ISSUES

Removal of the phrase “or has reason to know" will severely limit enforcement of sales to

minors. Currently, a licensee would have reason to know a person is a minor because he is

required to ask for identification showing that the person is twenty-one years of age or older.

Under SB 230, if a licensee fails to require identification, either intentionally or unintentionally,

then he would not know the person is under twenty-one and would therefore be exempt from

prosecution for selling liquor to a minor. Licensees have substantially less incentive to restrict

sales to minors.

It is conceivable that the amendment could reduce the number of people charged with or

convicted of selling or giving alcoholic beverages to minors.

PERFORMANCE IMPLICATIONS

The courts are participating in performance-based budgeting. This bill may have an impact on

the measures of the district courts in the following areas:

•

Cases disposed of as a percent of cases filed

•

Percent change in case filings by case type

ADMINISTRATIVE IMPLICATIONS

The Alcohol and Gaming Division would be limited in its prosecution of licensees for selling

alcohol to minors.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

It would remain a violation for a person to sell alcoholic beverages to a minor when he has

reason to know, through the requirement for production of identification showing the person is

twenty-one years of age or older, that the person is a minor.

CS/bb