LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 7, 2009

TO:	Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4640 by Lucio III (Relating to regulation of pari-mutuel racing.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB4640, As Introduced: an impact of $0 through the biennium ending August 31, 2011.

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
2010	$0
2011	$0
2012	$0
2013	$0
2014	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue (Loss) from Texas Racing Comm Acct 597	Probable Savings from Texas Racing Comm Acct 597	Change in Number of State Employees from FY 2009
2010	($56,282)	$56,282	(1.1)
2011	($55,822)	$55,822	(1.1)
2012	($55,384)	$55,384	(1.1)
2013	($54,958)	$54,958	(1.1)
2014	($54,546)	$54,546	(1.1)

Fiscal Analysis

The bill would amend the Texas Racing Act to remove certain occupational licenses and clarify the allocation of race dates.  The bill would require the Texas Racing Commission (TRC) to adopt rules to implement the provisions of this bill.

The bill would take effect immediately if it receives a two-thirds majority vote in both houses of the Legislature. Otherwise, the bill would take effect on September 1, 2009. 

Methodology

Based on analysis provided by TRC, it is anticipated that the removal of certain occupational licenses will result in a decrease in revenue to the Texas Racing Commission Dedicated Account 597 from a decreased number of licensees.  It is also anticipated that the decrease in licensees will result in a savings of 1.1 FTEs and the costs associated with these positions.  Additionally, there would be a savings from the decreased number of fingerprint and criminal background checks for occupational licensees.

Since the agency is required to cover its cost of operation, this analysis assumes that any decreased costs resulting from the implementation of the provisions of this bill would be offset with a decrease in fee-generated general revenue-dedicated funds.

Technology

No technology impact is anticipated.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

476 Racing Commission

LBB Staff:

JOB, JRO, MW, CH