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