LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 24, 1997 TO: Honorable Tom Craddick, Chair IN RE: Senate Bill No. 581, As Engrossed Committee on Ways & Means By: Ratliff House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB581 ( Relating to the cost of operation and administration of the state lottery.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB581-As Engrossed No fiscal implication to the State is anticipated. FISCAL ANALYSIS The bill would reduce the statutory maximum for lottery operation and administration from 15 percent to 12 percent of gross revenue from lottery ticket sales. The change proposed in the bill would decrease the existing statutory percentage to reflect the actual revenue and expenditure patterns of lottery ticket sales and the Lottery Commission's operating costs. Thus, the bill would not result in any new fiscal implications than those that already exist. The bill would take effect September 1, 1997. METHODOLOGY The Comptroller of Public Accounts 1998-99 Biennial Revenue Estimate already includes as a base assumption the lesser 12 percent administration expense percentage required by the bill. The bill would change current law to reflect the practices established since the start-up of the lottery. LOCAL No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,RR