LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 3, 1995
TO: Honorable Ron Wilson, Chair IN RE: Committee Substitute
Committee on Licensing & for
Administrative Procedures House Bill
House of Representatives No. 1305
Austin, Texas By: Gray, et al.
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1305 (Relating to the continuation and functions of the Texas
Racing Commission and to the transfer of certain commission
functions to the Texas Department of Commerce.) this office has
determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The Texas Racing Commission is subject to the provisions of the
Texas Sunset Act, and unless continued by the 74th Legislature,
will be abolished September 1, 1995. Funding for the Texas
Racing Commission is included in the General Appropriation Act,
as introduced, and is contingent upon passage of S.B. 367 or
similar legislation. The appropriations would be financed from
the General Revenue Fund - Consolidated and would provide
$7,266,340 and 76.5 employees in fiscal year 1996 and $7,842,045
and 81.5 employees in fiscal year 1997.
The bill would continue the Texas Racing Commission and make
several changes to its enabling statute. Significant changes
would include: changing the composition of the Commission to
include public members and eliminating the division of the
Commission according to horse and greyhound interests, improving
the agency's racetrack inspection and enforcement activities,
increasing the oversight of organizations that receive racing
funds, and requiring all of the racetrack stewards and judges to
be employed by the Texas Racing Commission.
The bill would require the top three regulatory officials at each
racetrack to be employed by the Racing Commission. Currently,
only one of the three top regulatory officials is employed by the
Commission. This change would result in a probable increase in
Racing Commission employees of 11.5 full-time equivalents in FY
1996 and 13.4 full-time equivalents in subsequent years. Fees
would be collected from the racetracks to offset estimated costs
to the state of approximately $850,000 - $950,000 per year for
the next five years..
The bill would require the Texas Racing Commission to collect
fees to cover the costs of criminal history checks conducted by
the Department of Public Safety (DPS). Currently, the DPS spends
funds out of the Operators and Chauffeurs Accout to cover the $39
cost of a criminal history check on a new license applicant and
the $24 cost of a renewal. The Racing Commission projects 9,500-
10,000 new licensees and 1,000 - 3,300 renewals per year for the
next five years. The bill would result in the Racing Commission
collecting approximately $415,000 - $455,000 per year to
reimburse DPS. This would result in a savings to the Operators
and Chauffeurs License Account in the General Revenue Fund.
The bill would require the Racing Commission to increase its
oversight of funds generated at the racetrack and distributed to
breed registries and organizations representing members of the
racing industry. These organizations would be subject to audits
and would be required to set performance measures to assist the
agency and Legislature in determining whether the funds are being
used effectively. The bill would also authorize the Commission
to withhold funds from these organizations if they fail to meet
Commission requirements. Withheld funds would accumulate in the
General Revenue Fund. The amount of funds that would be withheld
cannot be estimated.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Probable Cost Out Probable Savings
Year Gain to GR of GR to GR Consolidated
Consolidated - Consolidated - - Oper &
Texas Racing Comm Texas Racing Comm Chauffeurs Lic
Account 597 Account 597 Account 099
1996 $1,252,773 $1,252,773 $414,315
1997 1,383,703 1,383,703 439,415
1998 1,387,733 1,387,733 443,445
1999 1,391,117 1,391,117 446,829
2000 1,396,565 1,396,565 452,277
Fiscal Change in
Year Number of State
Employees from
FY 1995
1996 11.5
1997 13.4
1998 13.4
1999 13.4
2000 13.4
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Comptroller of Public Accounts, Sunset Advisory
Commission, Department of Commerce,
Racing Commission
LBB Staff: JK, PVT, DF