LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 26, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3234 by Reyna, Arthur (Relating to the regulation of
bingo.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3234, Committee Report 1st House, Substituted: negative impact *
* of $(2,269,454) 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 $(1,134,094) *
* 2003 (1,135,360) *
* 2004 (1,145,568) *
* 2005 (1,168,588) *
* 2006 (1,166,930) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Savings/(Cost) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(890,987) $(243,107) 5.0 *
* 2003 (890,987) (244,373) 5.0 *
* 2004 (890,987) (254,581) 5.0 *
* 2005 (890,987) (277,601) 5.0 *
* 2006 (890,987) (275,943) 5.0 *
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Technology Impact
The agency estimates a need for $10,000 in computer hardware and software
for the additional FTEs and an undetermined amount to modify its system
for electronic transfers.
Fiscal Analysis
The bill would amend the Occupations Code by authorizing two or more
organizations licensed to conduct bingo at the same location to conduct a
multi-organization bingo game together using an automated bingo service.
The bill would also amend various obsolete and conflicting sections of
Section 2001, and exempt prizes of less than $5 from the 5 percent prize
fee.
The bill would take effect October 1, 2001.
Methodology
The Lottery Commission used the prize structure of pull-tabs sold in
Texas to determine the percent of prizes that would be less than $5.00.
The pull tab prizes reported for the most recent calendar year times this
percent resulted in the amount that was used to estimate the amount of
prize fees that would not be collected and deposited into the general
revenue fund. The amount of prize fees collected and remitted to the
state would be reduced by approximately $890,987 per year.
The Lottery Commission estimates the bill would generate the need for
five additional FTEs to conduct audits, reviews, inspections, and
investigation of complaints by the Charitable Bingo Division and to
verify edits, billings, non-filers, and show compliance letters. These
estimates are based on more complex and time consuming reviews due to
the increased complexity of multi-organization bingo.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 362 Texas Lottery Commission, 304 Comptroller of
Public Accounts
LBB Staff: JK, JO, RT