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 ************************************************************************** * 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