LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 21, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 237, Committee Report 1st House
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-Committee Report 1st House
No significant fiscal implication to the State is anticipated.
The bill would amend the Lottery Act to require ninety-five
percent of savings resulting from the competitive bidding of
lottery contracts to be transferred to the Foundation School
Fund, and the remaining five percent to be transferred to the
Texas Workforce Commission for community-based adult literacy
programs. 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:
LBB Staff: JK ,JD