LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 30, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 3081, Committee Report 1st House, Substituted Committee on Licensing & Administrative Procedures By: Dunnam House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3081 ( relating to certain deductions from certain payments made by the Texas Lottery Commission.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3081-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 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 The bill would amend the Government Code to require the executive director of the Texas Lottery Commission to deduct delinquent tax or other money from the compensation paid to a sales agent. The bill would add the Texas Workforce Commission to the agencies for which the Texas Lottery Commission currently deducts delinquent tax and other money. Also, the bill would direct the deduction from lottery winnings of a person, or the compensation paid to a sales agent, any delinquent obligations to the crime victims compensation fund or delinquent payment of an order of restitution following conviction in a criminal case. Methodolgy The Texas Lottery Commission estimates that implementation of these provisions would require: modifications to the computer application for Electronic Funds Transfer (EFT) at a cost of $150,000, in order to make deductions from sales agent compensation; an additional 5 full-time equivalent staff postions for retailer accountant specialists, a programmer analyst to modify the EFT applications, an additional attorney for both the victims of crime and workforce provisions; and, an additional accountant for implementing provisions regarding the crime victim's compensation and restitution debt set offs. Additional equipment and associated capital outlay for the new positions are included in this estimate. 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 Lottery Employees from Account/ FY 1997 GR-Dedicated 5025 1998 ($339,033) 5.0 1998 (169,003) 5.0 2000 (169,003) 5.0 2001 (169,033) 5.0 2002 (169,033) 5.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 320 Texas Workforce Commission 362 Texas Lottery Commission LBB Staff: JK ,TH ,PH