LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 16, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1445
Committee on Licensing & Administrative Procedures By: Gray
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1445 ( 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; providing penalties.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB1445-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $460,824 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
HB 1445 would continue the Texas Racing Commission through August
31, 2005 and make several changes to the enabling statute.
The Texas Racing Commission is subject to the provisions of
the Texas Sunset Act, and unless continued by the 75th Legislature,
will be abolished September 1,1997.
The amount set forth
for funding the Texas Racing Commission in the General Appropriations
Act, as introduced, is $9,430,711 in fiscal year 1998 and $9,374,318
in fiscal year 1999, and would be contingent upon the passage
of HB 1445 or similar legislation. The appropriations would
be financed from a dedicated account (0597) within General Revenue
and would provide for 74 employees.
Sections 1 through 12
of the bill relate to definitions, commission membership, regulatory
authority, and operational practices of the commission and other
law enforcement personnel.
Section 13 of the bill would
require the Texas Racing Commission to employ all racetrack
stewards and judges. This section would result in increased
cost to the state as specified below.
Section 14, 15 and
16 of the bill concern recognizing organizations and licensing
requirements, including fingerprinting for conducting a criminal
background check. No fiscal impact is anticipated from implementation
of these sections.
Section 17 of the bill authorizes the
commission to set fees to cover the cost of conducting a criminal
background check and would require the commission to reimburse
the Department of Public Safety for such costs. Section 27
of the bill authorizes the commission to recoup these costs.
Sections
18 through 26 concern the conduct of racing and regulatory matters
pertaining to commission oversight of racing related activities.
No fiscal impact is anticipated from implementation of these
sections.
Section 27 of the bill would authorize the commission
to recoup the cost of license fees, including criminal background
checks.
Sections 28 and 29 of the bill concern the terms
of licensure, reciprocity with other states. No fiscal impact
is anticipated from implementation of these sections.
Sections
30 and 31 of the bill relate to the regulation of the Texas
Bred Incentive program. No fiscal impact is anticipated from
implementation of these sections.
Section 32 of the bill
relates to the prohibition of wagering by minors. No fiscal
impact is anticipated from implementation of this section.
Section
33 of the bill relates to payment of money not claimed to the
commission. No fiscal impact is anticipated from implementation
of this section.
Section 34 of the bill relates to liabilities
and defense to prosecution . No fiscal impact is anticipated
from implementation of this section.
Sections 35 through
37 of the bill relate to definitions of criminal activity and
penalties.
Section 38 of the bill would continue the commission
until September 1, 2005. The fiscal impact of this section
is detailed below.
Section 39 of the bill would amend Section
481.172, Government Code, to provide for the Texas Department
of Commerce to promote and encourage the horse racing and greyhound
racing industry, if funds are appropriated for the promotion
or encouragement.
Section 40 of the bill would repeal Sections
2.07, 3.01, 11.04(d), 15.02, and 18.02, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes) in conformance with other
provisions of the bill. The repealed sections are as follows:
Section 2.07 concerns prohibited conduct by commission members.
Section
3.01 concerns commission sections and divided jurisdiction of
commission members
Section 11.04 defines violations under this
Section 11.04 as an offense.
Section 15.02 defines person
as the meaning assigned by the Penal Code.
Section 18.02 concerns
Application of Administrative Procedure and Texas Register Act.
No
fiscal impact is anticipated from implementation of these sections.
Section
41 and 42 of the bill concern effective dates for qualifications
of commission members and criminal offenses. No fiscal impact
is anticipated from implementation of these sections.
Section
43 of the bill suspends the rule requiring bills to be read
on three separate days.
Methodolgy
Section 13 of the bill would require that the Racing Commission
employ all racetrack stewards and judges. Currently, only one
of the three top regulatory officials is employed by the commission.
The other two are employed by the racetrack. The Racing Commission
estimates that this would increase the number of FTEs by 11
in fiscal year 1998 and 10 in fiscal year 1999, with 10 each
year thereafter. The Racing Commission estimates that the addition
of this number of FTEs and related operating costs would result
in an increase of $794,402 in fiscal year 1998 and $764,452
in fiscal year 1999 and each year thereafter. These costs would
be offset by additional fees collected from the racetrack.
Section
17 of the bill would require the Racing commission to collect
licensing fees to cover the costs of criminal history checks
conducted by the Department of Public Safety, where the costs
are incurred. The cost is $15 per card and the cost of a federal
criminal history check is $24, for a total of $39 per new license
application. Every five years a federal criminal history check
is conducted, but not a state criminal history check. Based
on projected numbers of new licensees and renewing licensees,
the Racing Commission estimates that it will collect $229,392
in fiscal year 1998 and $231,432 in fiscal years 1999 - 2002.
Currently, the Department of Public Safety absorbs some of
the cost, and bills the Racing Commission for a portion of the
cost. However, the Racing Commission is not currently collecting
fees for the full amount, thus the net impact to the state would
be a gain to General Revenue Dedicated Fund Account 099 of approximately
$230,000 per year.
The probable fiscal implications of Implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue Probable Change in Number
Savings/(Cost) Gain/(Loss) from Savings/(Cost) of State
from Texas Texas Racing from Operators Employees from
Racing Commission and Chauffeurs FY 1997
Commission Account/ License Account/
Account/ GR-Dedicated GR-DedicatedGeneral
GR-Dedicated Revenue Fund
Dedicated
Account 099
0597 0597 0001
1998 ($794,402) $794,402 $229,392 11.0
1998 (764,451) 764,451 231,432 10.0
2000 (764,451) 764,451 231,432 10.0
2001 (764,451) 764,451 231,432 10.0
2002 (764,451) 764,451 231,432 10.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $229,392
1999 231,432
2000 231,432
2001 231,432
2002 231,432
Similar annual fiscal implications These impacts would continue
as long as the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 405 Department of Public Safety
476 Racing Commission
465 Department of Commerce
116 Sunset Advisory Commission
LBB Staff: JK ,TH ,JA