LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 18, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: House Bill No. 2086, Committee Report 2nd House, Substituted
Committee on State Affairs By: Palmer
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-Committee Report 2nd House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(315,217) 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 the bill would
have no significant fiscal effect on the state's revenue or
cash flow. However, the Texas Lottery Commission estimates
that three (3) new staff positions 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 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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($155,730) 3.0
1998 (159,487) 3.0
2000 (163,378) 3.0
2001 (167,435) 3.0
2002 (171,582) 3.0
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 ($155,730)
1999 (159,487)
2000 (163,378)
2001 (167,435)
2002 (171,582)
Source: Agencies:
362 Texas Lottery Commission
LBB Staff: JK ,JD ,PH