LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 6, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1799 by King, Phil (relating to the assignment or
deposit of certain lottery prizes), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1799, As Engrossed: negative impact of $(54,663,000) through *
* the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(18,412,000) *
* 2001 (36,251,000) *
* 2002 (36,793,000) *
* 2003 (37,347,000) *
* 2004 (37,907,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) *
* Year from New - GR Account - Texas from Foundation School Fund *
* Department of Health State 0193 *
* Owned Multi-Categorical *
* Teaching Hospital *
* 2000 $19,056,000 $(18,412,000) *
* 2001 37,537,000 (36,251,000) *
* 2002 38,099,000 (36,793,000) *
* 2003 38,672,000 (37,347,000) *
* 2004 39,252,000 (37,907,000) *
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Fiscal Analysis
The bill would amend the Government Code to allow the assignment of
prizes and to direct the Texas Lottery Commission to deposit unclaimed
lottery prize money to a new Texas Department of Health Owned
Multi-categorical Teaching Hospital Account (account). The proceeds of
the new account would be used to provide indigent health care.
Currently, unclaimed prize money is used to provide additional money to
the Lottery Account for prize payments, administrative costs, and
transfers to the Foundation School Fund.
The bill would take effect September 1, 1999 and only would apply to
prizes awarded on or after that date.
Methodology
A fiscal estimate on the assigned prize administration fee would depend
on the number of assignments and the expenses associated with the
assignments. This analysis presumes the amount of revenue raised by this
fee would be statistically insignificant.
Concerning unclaimed prize funds, estimates were based on data obtained
from the Texas Lottery Commission on the amount of unclaimed prize money
in previous years, adjusted for implementation of the bill's provisions.
Currently, the commission is using unclaimed prizes to supplement prizes
in various games. To the extent that the lottery games are being
operated below the prize cap, there would be larger negative fiscal
implications to the Foundation School Fund because of reduced sales.
Currently, the lottery is approaching but remains below the prize cap;
therefore, a portion of the unclaimed prize money is not effectively
being used to increase sales. This would result in an overall gain under
this bill.
Note: If a separate bill such as HB 844, 76th Legislature, were to
repeal or substantially increase the prize cap, the bill would have an
overall negative fiscal impact.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 362 Texas
Lottery Commission
LBB Staff: JK, BB, BR, WP