LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 26, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 432, Committee Report 1st House, Substituted
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-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(52,071,722) 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 (commission), 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
repeal the remittance of bingo fees or taxes, reducing revenues
collected by the state. However, reports detailing bingo fee
receipts would be filed quarterly with the Comptroller of Public
Accounts and the commission would be required to adopt rules
for the payment of bingo fees or taxes.
The bill also modifies
or places limitations on allowable prize amounts, bingo site
rental amounts, license suspension authority and disposition
of a license in the case of licensee death. The bill also reduces
the fee that would be charged for a license amendment from $25
to $10, resulting in reduced revenues to the state.
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). While the bill would provide
for the development of new commission rules to govern the payment
of fees and taxes in the future, a general revenue loss of approximately
$26.2 million per year is estimated due to the elimination of
existing statutory language that would make fees and taxes reported
rather than due and payable. 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. The comptroller would also require
additional staff, equipment, and contract programmers to handle
the increased workload for processing activities, 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:
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 Share Fund: Local Share Revenue Fund: FY 1997
Administrative
Cost
0001 0001 0001
1998 ($13,668,000) ($12,437,000) $616,968 3.0
1998 (13,986,000) (12,748,000) 150,310 4.0
2000 (14,311,000) (13,066,000) 150,423 4.0
2001 (14,625,000) (13,374,000) 146,943 4.0
2002 (14,940,000) (13,682,000) 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 ($25,488,032)
1999 (26,583,690)
2000 (27,226,577)
2001 (27,852,057)
2002 (28,467,459)
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: 304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,PH