LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 14, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB891 by Puente (Relating to authorizing the Texas
Lottery Commission to participate in a multistate lottery
game.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB891, As Introduced: positive impact of $59,500,000 through the *
* biennium ending August 31, 2003. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $17,500,000 *
* 2003 42,000,000 *
* 2004 42,000,000 *
* 2005 42,000,000 *
* 2006 42,000,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* Foundation School Fund *
* 0193 *
* 2002 $17,500,000 *
* 2003 42,000,000 *
* 2004 42,000,000 *
* 2005 42,000,000 *
* 2006 42,000,000 *
*****************************************************
Fiscal Analysis
The bill would amend Chapter 466 of the Government Code by adding a new
Subchapter J to allow the Texas Lottery Commission to participate in a
multi-state lottery game. The bill would specify that the Lottery
Commission could participate in only one multi-state lottery game at any
time. The bill would allow the commission to deposit revenues in a
multi-state lottery fund for the purpose of paying prize claims. In
addition, the bill would allow the commission to share in the payment of
costs associated with participation in multi-state lottery games.
The bill would take effect immediately, assuming that it received the
requisite two-thirds majority votes in both houses of the Legislature.
Otherwise, it would take effect on September 1, 2001.
Methodology
Information from the Multi-state Lottery Commission, including the sales
impact of multi-state lottery games in other states, was used to estimate
the potential Texas fiscal impact. The Comptroller's Office indicates
that a multi-state game would result in an increase in gross sales;
however, that gain would be offset by a decline in sales to Lotto Texas
and to Cash 5. The revenue impact reflects the portion of net sales
retained by the state.
The Lottery Commission indicates that implementation of the multi-state
game would take about six months, and that multi-state ticket sales would
begin March 1, 2002. The first-year revenue impact is adjusted
accordingly.
If, as a result of this game, there is increased unclaimed prize money,
it would be deposited to the tertiary care facility account.
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, JO, WP, SD