LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 1, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2479 by Danburg (Relating to the regulation of
amusement redemption machines.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2479, As Introduced: positive impact of $7,439,088 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $3,354,834 *
* 2003 4,084,254 *
* 2004 4,284,786 *
* 2005 4,404,786 *
* 2006 4,484,786 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund Foundation School FY 2001 *
* 0001 Fund *
* 0193 *
* 2002 $3,096,125 $258,709 7.0 *
* 2003 3,683,190 401,064 7.0 *
* 2004 3,863,589 421,197 7.0 *
* 2005 3,971,589 433,197 7.0 *
* 2006 4,043,589 441,197 7.0 *
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Technology Impact
The Comptroller's office estimates a one-time technology cost of $445,617
for programming, developing, and implementing an automated system to
regulate amusement redemption machines.
Fiscal Analysis
The bill would increase the tax on amusement redemption machines from $60
per machine to $120 per machine and would increase an operator's
business license fee for amusement redemption machines from $200 to
$2,000. The bill would also limit the number of amusement redemption
machines in a single location to five except on premises that conduct
bingo games where the limit would be no more than 30.
Methodology
According to the Comptroller's office, there are currently an estimated
45,000 amusement redemption machines in Texas that would be affected by
the bill. The Comptroller's office anticipates this number to decrease
to approximately 37,000 should the bill pass. The Comptroller's office
also anticipates a decrease by the same proportion in the number of
licensed operators should the bill pass. Amusement redemption machine
tax revenues are apportioned 75 percent to the General Revenue Fund and
25 percent to the Foundation School Fund. The Comptroller's office
anticipates that the doubling of the fee per machine and the ten-fold
increase in the license fee for operators would result in an increase of
approximately $3.6 million in 2002 to the General Revenue Fund and an
increase of approximately $440,000 in 2002 to the Foundation School Fund.
According to the Comptroller's office, the number of amusement
redemption machines and licensed operators would increase slightly each
year thereafter.
The Comptroller's office estimates that it would need an additional five
enforcement officers in order to handle the increased workload in
conducting compliance investigations on all amusement redemption machine
applicants and for every additional and duplicate decal request to
ensure permit requirements were met. The Comptroller's office also
estimates it would need two additional accounts examiners in order to
handle the increased workload in file maintenance activities. According
to the Comptroller, the seven additional FTEs would cost approximately
$236,000 each fiscal year.
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, SD, JC, RT