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