LEGISLATIVE BUDGET BOARD 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 year. 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. Methodology 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