LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 11, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2119 by Haggerty (Relating to the authorization and
regulation of progressive bingo games.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2119, As Engrossed: positive impact of $2,748,000 through the *
* biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $1,374,000 *
* 2003 1,374,000 *
* 2004 1,374,000 *
* 2005 1,374,000 *
* 2006 1,374,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $1,374,000 *
* 2003 1,374,000 *
* 2004 1,374,000 *
* 2005 1,374,000 *
* 2006 1,374,000 *
*****************************************************
Fiscal Analysis
The bill amends the Occupations Code by authorizing and defining
"progressive bingo" and authorizing higher prize levels for progressive
bingo games separate and apart from regular bingo games. The bill
provides for the regulation of progressive bingo and exempts the prizes
for a progressive bingo game from the $750 per game maximum payout.
Prizes paid out for a progressive bingo game would not be included in the
aggregated amount paid out per bingo occasion.
The bill would take effect immediately upon enactment, assuming that it
received the requisite two-thirds majority votes in both houses of the
Legislature. Otherwise, it would take effect September 1, 2001.
Methodology
A progressive bingo game would be defined as one that could be won by
achieving the winning bingo pattern before a specified number of bingo
numbers or symbols had been called. In the event that no one got the
winning pattern in time, a consolation prize could be awarded. The game,
however, would continue with the progressive prize amount rolling over
and increasing. The prize would continue to grow until the game was won.
The bill would not be expected to have a significant effect on the bingo
rental tax, which is based on the rental of bingo premises. However, the
bill would be expected to expand allowable bingo operations and prize
amounts, with increases in the prize amounts having a positive fiscal
effect on bingo prize fees.
More players could be expected as prizes increased, but, unlike the
situation with the lottery (which receives substantial publicity), the
share of the population participating in bingo games and the amount spent
for bingo would not be expected to change significantly in response to
larger bingo prizes.
This estimate was based on the experience of four other states with
progressive bingo games. It was concluded that the introduction of
progressive games would increase gross bingo prize fees by approximately
12 percent.
Local Government Impact
The Comptroller estimates a gain to local governments of $1.2 million per
year because local governments that imposed a gross receipts tax in 1993
are allocated 50 percent of the state bingo prize fees that are
collected within their boundaries. The magnitude of revenue gain for a
particular unit of local government is not known, given that this would
depend upon the number of progressive bingo games conducted within a
certain local jurisdiction.
Source Agencies: 362 Texas Lottery Commission
LBB Staff: JK, RB, JO, RT, DW