Austin, Texas
                    FISCAL NOTE, 76th Regular Session
                              March 30, 1999
          TO:  Honorable Ron Wilson, Chair, House Committee on Licensing
               & Administrative Procedures
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  HB3688  by Flores (Relating to the authorization of
               satellite bingo games.), As Introduced
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3688, As Introduced:  negative impact of $(173,310) 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.                                                             *
General Revenue-Related Funds, Five-Year Impact:
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                           $(217,805)  *
          *       2001                               44,495  *
          *       2002                               64,245  *
          *       2003                             (43,755)  *
          *       2004                              101,995  *
All Funds, Five-Year Impact:
*Fiscal      Probable        Probable        Probable       Change in     *
* Year       Revenue         Revenue      Savings/(Cost) Number of State  *
*          Gain/(Loss)     Gain/(Loss)     from General   Employees from  *
*          from General        from        Revenue Fund      FY 1999      *
*          Revenue Fund   Municipalities       0001                       *
*              0001        and Counties                                   *
*  2000        $1,117,900      $1,117,900    $(1,335,705)            25.0 *
*  2001         1,136,450       1,136,450     (1,091,955)            25.0 *
*  2002         1,155,300       1,155,300     (1,091,055)            25.0 *
*  2003         1,174,450       1,174,450     (1,218,205)            25.0 *
*  2004         1,193,950       1,193,950     (1,091,955)            25.0 *
Technology Impact
Passage of the bill would necessitate purchasing personal computers and
related software upon implementation and their replacement in the fourth
Fiscal Analysis
The bill would amend the Bingo Enabling Act (Act) to allow satellite
bingo games, where two or more licensed organizations conduct bingo for a
common prize pool and a common selection of numbers or symbols.
Satellite bingo would not be subject to the maximum prize per game of
$750, and the Texas Lottery Commission would be authorized to exempt
satellite bingo from any provision of the Act if the commission
determined that the exemption was necessary to facilitate the operation
and administration of satellite bingo.

A satellite bingo service provider's license would be required for
persons providing those services.  The fee for a license would be $5,000,
plus the cost incurred to conduct criminal background investigations.

The bill would require monthly allocations by licensees to charities
based on the ratio of satellite games conducted by each charity to the
total number of satellite games conducted at the facility.  Allocations
to charities could be no less than 17.5 percent of gross receipts from
satellite bingo games.

This bill would take effect September 1, 1999.
Based on the assumption that the novelty of the game would generate
interest in players and the organizations conducting bingo or eligible to
conduct bingo, there may be a positive impact by the potential increase
to gross receipts from sales.  This estimate presumes a 10 percent
increase in bingo prize fees payable to the General Revenue Fund.  In
addition, there could be an increase in certain bingo license fees.

The Lottery Commission has estimated that in order to implement the
provisions of the bill, additional staff and computers will be required.
Local Government Impact
50 percent of bingo prize fees are returned to municipalities and
counties in proportion to their participation in bingo games.
Source Agencies:   
LBB Staff:         JK, TH, BR, WP