LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 21, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2538, Committee Report 1st House, Substituted
Committee on Licensing & Administrative Procedures By: Oliveira
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2538 ( Relating
to the regulation of boxing and wrestling.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB2538-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $637,714 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
This bill would amend the Texas Boxing and Wrestling Act (Article
8501-1, V.T.C.S) to require the Department of Licensing and
Regulation (TDLR) to regulate wrestling contests and promotion.
The provisions of this bill would require licensure of those
involved in wrestling contests and promotion.
The bill
would also allow TDLR to assess a 3 percent gross receipts tax
on live contests, closed circuit telecasts, television rights,
and pay-per-view events. The 3 percent gross receipts tax
on television rights and pay-per-view events would be capped
at $50,000 per person. The bill would also require the Comptroller
to deposit the lesser of 20% of the gross receipts tax or $50,000
annually into the Texas Boxing and Wrestling Sports Fund to
be used for grant awards. According to TDLR, this tax would
generate a revenue of $471,240 per year of which $50,000 would
be deposited into the Texas Boxing and Wrestling Sports Fund.
According
to TDLR, in order to implement the provisions of the bill, TDLR
would need to hire one Administrative Technician and one Inspector.
The total cost to General Revenue to hire the two FTEs would
be $90,423 in FY 1998 and $78,343 per year thereafter, including
equipment and benefits. In addition, other inspectors would
be hired on an as-needed contractual basis, at a cost to General
Revenue of $18,000 per year.
Methodolgy
The following assumptions were used when estimating the revenue
gain to General Revenue:
(1) Licenses would be required for
117 individuals including wrestling promoters, wrestling managers,
wrestling matchmakers, referees, time keepers, and professional
wrestlers.
(2) TDLR would change the following annual license
fees: $1,000 for promoters; $150 for managers and matchmakers;
$50 for referees; $20 for timekeepers; and $30 for professional
wrestlers.
(3) $457,100 per year would be generated in
gross receipts tax revenue.
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 Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Gain/(Loss) from of State
from General General Revenue Texas Boxing and Employees from
Revenue Fund Fund Wrestling Sports FY 1997
Fund
0001 0001 OTHER-OTH
1998 ($108,423) $421,240 $50,000 2.0
1998 (96,343) 421,240 50,000 2.0
2000 (96,343) 421,240 50,000 2.0
2001 (96,343) 421,240 50,000 2.0
2002 (96,343) 421,240 50,000 2.0
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 $312,817
1999 324,897
2000 324,897
2001 324,897
2002 324,897
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: Agencies:
LBB Staff: TH ,BK