LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 22, 2003

TO:	Honorable Teel Bivins, Chair, Senate Committee on Finance
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB178 by West (Relating to the disposition of unclaimed prize money by the Texas Lottery Commission.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB178, As Introduced: a negative impact of ($19,465,000) through the biennium ending August 31, 2005.

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
2004	$0
2005	($19,465,000)
2006	$0
2007	($17,577,000)
2008	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1	Probable Revenue Gain/(Loss) from TEACHING HOSPITAL ACCOUNT 5049	Probable Revenue Gain/(Loss) from New General Revenue Dedicated - Health and Human Services Commission
2004	$0	($30,120,000)	$30,120,000
2005	($19,465,000)	($9,880,000)	$29,345,000
2006	$0	($28,699,000)	$28,699,000
2007	($17,577,000)	($11,301,000)	$28,878,000
2008	$0	($28,576,000)	$28,576,000

Fiscal Analysis

The bill would amend Section 466.408 of the Government Code to reallocate unclaimed prize money from Texas lottery games.

The bill would move administration of the funds from the Texas Department of Health (TDH) to the Texas Health and Human Services Commission (HHSC). The funds would be deposited into an account administered by HHSC.

The bill would take effect September 1, 2003.

Methodology

On a biennial basis, the first $40 million of unclaimed lottery prize money is currently deposited to the credit of GR Account 5049—State Owned Multicategorical Teaching Hospital. The unclaimed prizes above and beyond $40 million per biennium are deposited to the General Revenue Fund 0001 and appropriated for the Tertiary Care Facilities program. All unclaimed prize money is administered by TDH.

Note: Because the bill would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source, the fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:	304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 501 Department of Health, 529 Health and Human Services Commission, 720 The University of Texas System Administration
LBB Staff:	JK, JO, WP, SD