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