LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 4, 1995 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 3021 Committee on Licensing & By: Kuempel Administrative Procedures House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 3021 (Relating to the definition and regulation of Bingo.) this office has determined the following: The bill specifies pull tabs, break open tickets and instant bingo tickets as bingo equipment, and prohibits the usage of electronic or mechanical instant ticket dispensers and card minding devices. The bill eliminates the maximum prize value of $500 in a single game of bingo, and allows licensed lessors to advertise bingo. The bill allows the operation of coin operated amusement machines during bingo games. The bill requires the Lottery Commission to issue temporary authorization after all required forms, documentation and fees have been completed and received from a potential licensee. The bill allows for the transfer of a license from a licensee or a corporation owned by the licensee, to a corporation formed or owned by the licensee. The bill would require that each disposable bingo card furnished in the state of Texas to bear an impression of the seal of the State of Texas, the name of the manufacturer, or a trade name or trademark which must be filed with the Lottery Commission. It further requires licensed manufacturers, distributors and conductors to report certain bingo cards on inventory, and requires licensed conductors to file a schedule of bingo card prices with the Lottery Commission. Although no amount has been identified, the Lottery Commission believes that the implementation of some provisions of the bill could result in a revenue loss to the state. 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 Cost Out Change in Year of General Number of State Revenue Fund 001 Employees from FY 1995 1996 $527,921 12.0 1997 527,921 12.0 1998 527,921 12.0 1999 527,921 12.0 2000 527,921 12.0 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: Texas Lottery Commission LBB Staff: JK, MS, DF