LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 20, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 432
Committee on State Affairs By: Lucio
Senate
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 Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(37,748,278) 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 would transfer charitable bingo regulation from the
Texas Lottery Commission to the Texas Commission of Licensing
and Regulation, effective September 1, 1997, and would apply
to games played, sessions conducted, and prizes awarded on or
after that date. In addition, the bill would place responsibility
for collection of the Bingo Rental Fee and the Bingo Winner's
Fee with the Comptroller of Public Accounts and would change
the payment, collection and reporting schedules for these fees.
The bill also modifies or places limitations on allowable prize
amounts, bingo site rental amounts, license suspension authority
and license fee amounts.
The bill would exempt bingo prizes
of $250 or less from the prize winner's fee collected by the
state which would result in reduced revenues. The prize fee
would be calculated at a rate of 5% of winnings above the $250
threshold. The bill would also reduce the authorized fee for
a license amendment from $25 to $10 which would result in reduced
revenues.
Methodolgy
The estimated fiscal impact of the bill is based on historical
and projected data for bingo revenues as provided in the 1998-99
Biennial Revenue Estimate (BRE). The revenue loss due to exempting
the first $250 of each bingo prize from the bingo prize fee
is approximately $18,486,221 per year. Adjustments to the BRE
were also made to account for the reduction in bingo sessions
by licensed operators and for the $150 reduction in the maximum
lessor rent charged per bingo session. Revenue effects from
reporting period changes were also considered. The comptroller
would also require additional staff, equipment, and contract
programmers to handle the increased workload for processing
activities and taxpayer services, and for automated system enhancements.
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 Revenue Probable Revenue Probable Change in Number
Gain/(Loss) from Gain/(Loss) from Savings/(Cost) of State
General Revenue General Revenue from General Employees from
Fund:
State Fund:
Local Revenue Fund: FY 1997
Share Government Share Administrative
Cost
0001 0001 0001
1998 ($8,215,000) ($7,531,000) ($616,968) 3.0
1998 (11,037,000) (10,198,000) (150,310) 4.0
2000 (11,386,000) (10,453,000) (150,423) 4.0
2001 (11,638,000) (10,699,000) (146,943) 4.0
2002 (11,889,000) (10,946,000) (154,541) 4.0
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 ($16,362,968)
1999 (21,385,310)
2000 (21,989,423)
2001 (22,483,943)
2002 (22,989,541)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The fiscal implication to units of local government is included
in the table above.
Source: Agencies: 103 Legislative Council
304 Comptroller of Public Accounts
362 Texas Lottery Commission
452 Department of Licensing and Regulation
LBB Staff: JK ,JD ,PH