LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 16, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 237
          Committee on State Affairs                              By: Nixon, Drew
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB237 ( Relating 
to competitive bids for state lottery contracts.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB237-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would amend the Lottery Act to require savings resulting 
from the competitive bidding of lottery contracts to be transferred 
to the Foundation School Fund. Under current law, the Lottery 
Commission is not required to seek competitive bids for contracts 
to provide goods or services in connection with the operation 
of the lottery. However, the Lottery Commission, under its own 
administrative rules, currently participates in a competitive 
bidding process and returns any savings from that process to 
the General Revenue Fund as un-spent administrative funds.  
A competitive bid for the types of goods and services needed 
for the operation of the state lottery could result in no savings. 
Savings in some areas could be offset by increased costs in 
other areas. 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   701   Texas Education Agency - Administration
                                         304   Comptroller of Public Accounts
                                         362   Texas Lottery Commission
                                         
                      LBB Staff:   JK ,JD ,PH