LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 24, 1997
TO: Honorable Ron Wilson, Chair IN RE: Senate Bill No. 432, As Engrossed
Committee on Licensing & Administrative Procedures By: Lucio
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB432 ( relating
to the regulation and operation of bingo.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB432-As Engrossed
Implementing the provisions of the bill would result in a net
negative impact of $(569,676) 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 as engrossed would amend the Bingo Enabling Act to
transfer regulation of charitable bingo from the Texas Lottery
Commission (TLC) to the Texas Department of Licensing and Regulation
(defined in the bill as "commission"). All TLC powers relating
to bingo regulation would be transferred to the commission.
The commission would assume TLC liabilities, obligations, agreements,
and contracts relating to the regulation of bingo. TLC would
transfer all records and other property used in the regulation
of bingo to the commission. Any unexpended and unobligated
appropriation relating to bingo regulation would lapse from
TLC to the commission. The bill would take effect September
1, 1997 and would apply to games played, sessions conducted,
and prizes awarded on or after that date.
Licensees would
submit fee and tax payments under commission rules. The bill
would allow the advertising of bingo sessions by bingo licensees
of the commission. Licensed operators could conduct a charitable
raffle under the Charitable Raffle Enabling Act at a bingo session.
Licensed operators could award a door prize, provided that
the value of the door prize was no greater than $250. The commission
would prohibit, by rule, the playing of bingo by a uniform product
code bar coding device or symbol. The bill would increase the
percentage of persons who could use a card minding device to
40 percent from 30 percent.
The rent that a licensed commercial
lessor could charge per bingo session would be reduced to $450
from $600. A licensed commercial lessor could not charge more
than $450 per day where a licensed operator subleases the premises
to other licensed operators.
The bill would dedicate 30 percent
of the net proceeds of an authorized organization from a special
event bingo occasion to a reading and literacy program in that
county.
Methodolgy
The Comptroller of Public Accounts estimates the bill would
have no significant fiscal effect on the state's revenue or
cash flow. However, the TLC estimates six additional staff
positions would be necessary to ensure full compliance with
the requirment that charities transfer thirty percent of net
proceeds from a special event bingo occasion to reading and
literacy programs in the county where the licensed authorized
organization conducts bingo. This estimate includes three auditors
at an annual salary of $31,656 each, two accounts examiners
at an annual salary of $29,628 each and one licensing examiner
at an annual salary of $29,628. Costs for equipment associated
with the new personnel would total an additional $30,000.
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 General Employees from
Revenue Fund FY 1997
0001
1998 ($299,838) 6.0
1998 (269,838) 6.0
2000 (269,838) 6.0
2001 (269,838) 6.0
2002 (269,838) 6.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($299,838)
1999 (269,838)
2000 (269,838)
2001 (269,838)
2002 (269,838)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The fiscal implication of the bill to units of local government
would be dependent upon the number of special bingo occasions
that would be conducted within a given jurisdiction.
Source: Agencies: 304 Comptroller of Public Accounts
362 Texas Lottery Commission
LBB Staff: JK ,TH ,PH