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