LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 30, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2086 ( relating
to the regulation and operation of bingo.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB2086-Conference Committee Report
Implementing the provisions of the bill would result in a net
positive impact of $38,092 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would amend the Bingo Enabling Act as it applies to
the operation of a bingo game, the award of prizes, the disbursement
of funds for a charitable purpose or other action taken on or
after October 1, 1997. The revised provisions would take effect
September 1, 1997.
The bill would add a system service provider
as a member of the bingo advisory committee currently authorized
under the Act and would require the Texas Lottery Commission
to adopt rules not later than July 1, 1997 governing both the
operation of bingo and distribution of bingo proceeds for charitable
purposes as revised by the bill. The bill would allow the advertising
of bingo sessions and prizes by bingo licensees or by the commission.
Licensed operators could conduct a charitable raffle under
the Charitable Raffle Enabling Act at a bingo session. The
bill raises the allowable limit for a prize from $500 to $750
for any single game of bingo. Also, licensed operators could
award a door prize, provided that the value of the door prize
was no greater than $250. The bill would increase the percentage
of persons who could use a card minding device to 40 percent
from 30 percent.
Methodolgy
The Comptroller of Public Accounts estimates that the bill would
increase winner fee revenue through an increase in charitable
bingo participation. One half of this revenue would be allocated
to units of local government. The Texas Lottery Commission
estimates that one (1) new staff position would be needed to
implement the provisions of the bill. Additional costs for
start-up of the training program and refinement of the required
new rules would be included. Other support costs associated
with the new staff position are also included. Initial costs
of developing rules by the July 1997 directive would be absorbed
with current appropriated funds. Should the commission decide
to contract out for training services for licensees, there could
be a reduced fiscal impact of implementing that section of the
bill.
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 General General Revenue from General Employees from
Revenue Fund Fund Revenue Fund: FY 1997
Local Share of
Prize Fee Revenue
0001 0001 0001
1998 ($47,883) $134,000 ($67,000) 1.0
1998 (49,025) 136,000 (68,000) 1.0
2000 (50,182) 138,000 (69,000) 1.0
2001 (51,384) 140,000 (70,000) 1.0
2002 (52,586) 142,000 (71,000) 1.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $19,117
1999 18,975
2000 18,818
2001 18,616
2002 18,414
Units of local government would receive additional prize fee
revenue as noted in the table above.
Source: Agencies:
362 Texas Lottery Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,PH