LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 13, 2007

TO:
Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2206 by Haggerty (Relating to the use of a card-minding device to play bingo. ), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB2206, Committee Report 1st House, Substituted: a positive impact of $3,648,000 through the biennium ending August 31, 2009.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 $1,446,000
2009 $2,202,000
2010 $2,251,000
2011 $2,293,000
2012 $2,336,000




Fiscal Year Probable Revenue Gain from
GENERAL REVENUE FUND
1 		Probable Revenue Gain from
Cities		 Probable Revenue Gain from
Counties
2008 $1,446,000 $623,000 $670,000
2009 $2,202,000 $948,000 $1,020,000
2010 $2,251,000 $969,000 $1,043,000
2011 $2,293,000 $988,000 $1,063,000
2012 $2,336,000 $1,006,000 $1,083,000

Fiscal Analysis

The bill would amend the Occupations Code by authorizing a licensed authorized organization to use a card-minding device on the organization's bingo premises during a bingo occasion to display a commission-approved pull-tab bingo ticket to a bingo player and prohibiting certain other uses of card-minding devices.

This bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or would otherwise take effect on September 1, 2007. 


Methodology

Based on the analysis of the Comptroller of Public Accounts (CPA), the bill would result in a revenue gain to the General Revenue Account of $1,446,000 in fiscal year 2008; $2,202,000 in fiscal year 2009; $2,251,000 in fiscal year 2010; $2,293,000 in fiscal year 2011; and $2,336,000 in fiscal year 2012. The revenue gain identified by the CPA is based on the assumption that authorizing the use of card-minding devices to play bingo would increase overall play. This would result in an increase in bingo prizes, thereby increasing the amount of bingo prize fee revenue generated.

Based on the analysis of the Texas Lottery Commission, it is assumed that any costs incurred that would be associated with implementing the provisions of the bill could be absorbed within existing resources.


Local Government Impact

No significant fiscal implication to units of local government is anticipated. Impact to local jurisdictions is reflected in the table above.


Source Agencies:
304 Comptroller of Public Accounts, 362 Texas Lottery Commission
LBB Staff:
JOB, TGl, JRO, MW