| TO: | Honorable Robert Duncan, Chair, Senate Committee on State Affairs |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB2701 by Flores (Relating to the regulation of horse and dog racing.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable Revenue (Loss) from TEXAS RACING COMM ACCT 597 |
Probable Revenue Gain from TEXAS RACING COMM ACCT 597 |
|---|---|---|
| 2008 | ($2,589,000) | $2,589,000 |
| 2009 | ($2,527,000) | $2,527,000 |
| 2010 | ($2,460,000) | $2,460,000 |
| 2011 | ($2,408,000) | $2,408,000 |
| 2012 | ($2,338,000) | $2,338,000 |
The bill would amend the Texas Racing Act to restructure the way the Texas Racing Commission (TRC) is funded.
Currently, a portion of moneys from outstanding tickets and pari-mutuel vouchers are turned over to TRC. The bill would allow the race tracks to keep all moneys from outstanding tickets and pari-mutuel vouchers to cover their costs for medication and drug testing. TRC would still be required to test for prohibited substances.
The bill would change the time limit for cashing a winning wagering ticket from the 60th day after the race meeting to the first anniversary from the date of ticket purchase.
The bill would remove expired language related to the percentage of simulcast pari-mutuel pools that go to the state but would make no fiscal change in the simulcast percentage reserved for the state.
Currently, 50 percent of the greyhound breakage must be paid to TRC from the racetrack. The bill would remove this requirement and would allow TRC to replace this funding by setting fees to cover its costs in regulating, overseeing, and licensing both live and simulcast racing at racetracks.
The bill would take effect September 1, 2007.
The bill would remove two revenue sources, outstanding wagering tickets that are not redeemed and greyhound breakage, and would allow TRC to set fees to replace this lost revenue. The actual fee level is not specified in law and would be set by TRC rules.
Based on the analysis of the Comptroller of Public Accounts (CPA), it is assumed that there would be no net impact on state revenues because increases in fees would match the losses in revenue from outstanding wagering tickets and greyhound breakage.
It is also assumed that increasing the length of time that a winning ticket remained valid would have a small impact on the amount of outstanding ticket revenue. The bill provides all of the outstanding ticket revenue would stay at the racetracks so this small impact would not be a fiscal impact to the state.
| Source Agencies: | 304 Comptroller of Public Accounts, 476 Racing Commission
|
| LBB Staff: | JOB, KJG, JRO, MW, SK
|