LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session February 22, 1995 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1052 Committee on Licensing & By: Wilson Administrative Procedures House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1052 (Relating to the sale, resale, and purchase of lottery tickets and the validation of certain transactions involving the sale, resale, or purchase of certain lottery tickets.) this office has determined the following: The bill would require the director of the Lottery Commission to authorize and license out-of-state sales agents to purchase and resell lottery tickets. The commission could adopt rules regarding the licensing and regulation of such out-of-state ticket agents. The bill also provides for payment of a validated winning ticket to a person who, prior to January 1, 1995, purchased the ticket from certain non-authorized sales agents. Money to pay winning ticket holders is set aside, therefore, payment to such a ticket holder would not result in any additional draw on state funds. The Lottery commission would require an additional 6.5 full time equivalents at a cost of $247,000 per year to authorize, monitor, and regulate out-of-state retailers. Current statute limits Lottery Commission administrative cost to 15% of gross ticket sales. Additional cost associated with implementing the provisions of the bill would not change the 15% Lottery Commission appropriation authority. It should be noted, however, that any non-utilized Lottery Commission administrative appropriation authority is returned to the General Revenue Fund at the end of each fiscal year. The additional cost of $247,000 would, therefore, result in an equal reduction to the amount of administrative allocation returned to the General Revenue Fund which would subsequently be available for other expenditures. No fiscal implication to units of local government is anticipated. Source: Texas Lottery Commission LBB Staff: JK, DF