LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 14, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2538
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-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $794,789 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 amends the Texas Boxing and Wrestling Act (Article
8501-1, V.T.C.S) by transferring the regulation for wresting
contests and promotion from the Secretary of State to the Department
of Licensing and Regulation. Currently, registration is required
by the Secretary of State. The provisions of this bill would
require licensure of those involved in wrestling contests and
promotion. The bill also provides for a 3 percent gross receipts
tax on live contests, closed circuit telecasts, television rights,
and pay-per-view events. This bill would also provide for
strict prohibition of events classified as "ultimate" or "extreme"
fighting.
Methodolgy
It is assumed that licenses would be required for 117 individuals
including wrestling promoters, wrestling managers, wrestling
matchmakers, referees, time keepers, and professional wrestlers
and that department would change the following fees to cover
costs: annual license fees of $1,000 for promoters; $150 for
managers and matchmakers; $50 for referees; $20 for timekeepers;
and $30 for professional wrestlers. It is also assumed that
$557,000 per year would be generated in gross receipts tax revenue.
The department would require 1 inspector and a related support
employee to implement the provisions of this bill. Other inspectors
would be contracted in circumstances where single or multiple
events require additional inspection.
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 Change in Number
Savings/(Cost) Gain/(Loss) from of State
from General General Revenue Employees from
Revenue Fund Fund FY 1997
0001 0001
1998 ($113,423) $521,240 2.0
1998 (101,343) 488,315 2.0
2000 (101,343) 488,315 2.0
2001 (101,343) 488,315 2.0
2002 (101,343) 488,315 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 $407,817
1999 386,972
2000 386,972
2001 386,972
2002 386,972
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Source: Agencies: 452 Department of Licensing and Regulation
LBB Staff: JK ,TH ,RA