LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 18, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3234, As Introduced: negative impact of $(1,781,974) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(890,987) * * 2003 (890,987) * * 2004 (890,987) * * 2005 (890,987) * * 2006 (890,987) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $(890,987) * * 2003 (890,987) * * 2004 (890,987) * * 2005 (890,987) * * 2006 (890,987) * ***************************************************** Fiscal Analysis This bill would amend various obsolete and conflicting sections of Section 2001, Occupations Code and exempt prizes of less than $5 from the 5% prize fee. The bill takes effect on 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 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 will be reduced by approximately $890,987 per year. 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