LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 21, 1999
  
  
          TO:  Honorable Bill Ratliff, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB844  by Wilson (Relating to the total amount of state
               lottery prizes that may be awarded in a fiscal year.), As
               Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB844, As Engrossed:  positive impact of $30,017,000 through the      *
*  biennium ending August 31, 2001.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                        $(10,169,000)  *
          *       2001                           40,186,000  *
          *       2002                           40,788,000  *
          *       2003                           41,401,000  *
          *       2004                           42,023,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2000                            $(10,169,000) *
         *      2001                               40,186,000 *
         *      2002                               40,788,000 *
         *      2003                               41,401,000 *
         *      2004                               42,023,000 *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend the Government Code to repeal the statutory
limitation on the total amount of prizes that can be awarded by the
lottery each fiscal year.

The bill would take effect September 1, 1999.
  
  
Methodology
  
The bill would repeal Section 466.015(d) of the Government Code, which
limits the amount paid out in prizes each fiscal year to the gross sales
for that year times the percent paid in fiscal 1997, less 5 percent of
the gross sales in that fiscal year.  This estimate assumes that the
Texas Lottery Commission would return to the prize percentages paid in
fiscal 1997.  This estimate also assumes that there would be an increase
in sales as a behavioral response by players. 

The estimate assumes that there would be a modest loss to the state in
fiscal 2000 because the state's share of lottery sales would be reduced.
This would be offset in later years due to the projected increase in
total sales.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   362   Texas Lottery Commission, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, SD, TH, WP, PH