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Relating to the collection of local permit and license fees
authorized under the Alcoholic Beverage Code; authorizing a fee.
No fiscal implication to the State is anticipated.
HB 3754 would allow the Texas Alcoholic Beverage Commission to suspend a permit or license (in addition to cancelling the license, as they already have the power to do) if the Commission finds that the permittee/licensee has not paid the fee within 180 days of the fee being levied. The bill would also allow local governments to enter into contracts or interlocal agreements with other entities to collect unpaid fees. Contracted entities would be allowed to charge additional collection fees to the license holder.
Texas Action opposes HB 3754 for violating the principles of limited government and free markets, however could support it upon amendment. We are supportive of the first provision of this bill allowing TABC to suspend licenses instead of cancelling them as a response to unpaid fees on licenses and permits, as this would save license holders/permittees time and money. The second provision of the bill relating to contracts and interlocal agreements is dangerous however due to the ability of the contracted entities to charge additional fees to the license holder/permittee. As a result of this provision, license holders and permittees would be subject to additional fees for no reason other than that they are unlucky enough to live in an area where unpaid fee collection is contracted. We recommend that this latter provision be stricken from the bill.