LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 15, 2009 TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB357 by Quintanilla (Relating to the sale of lottery tickets at a location at which a person holds an alcoholic beverage permit.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a positive impact of $14,098,000 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.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 15, 2009
TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB357 by Quintanilla (Relating to the sale of lottery tickets at a location at which a person holds an alcoholic beverage permit.), As Introduced
TO: Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB357 by Quintanilla (Relating to the sale of lottery tickets at a location at which a person holds an alcoholic beverage permit.), As Introduced
Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
Honorable Edmund Kuempel, Chair, House Committee on Licensing & Administrative Procedures
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB357 by Quintanilla (Relating to the sale of lottery tickets at a location at which a person holds an alcoholic beverage permit.), As Introduced
HB357 by Quintanilla (Relating to the sale of lottery tickets at a location at which a person holds an alcoholic beverage permit.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a positive impact of $14,098,000 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a positive impact of $14,098,000 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 $5,964,000 2011 $8,134,000 2012 $8,521,000 2013 $8,650,000 2014 $8,706,000
2010 $5,964,000
2011 $8,134,000
2012 $8,521,000
2013 $8,650,000
2014 $8,706,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund (Unclaimed Lottery Prizes)1 Probable Revenue Gain/(Loss) fromFoundation School Fund193 2010 $423,000 $5,541,000 2011 $589,000 $7,545,000 2012 $617,000 $7,904,000 2013 $626,000 $8,024,000 2014 $630,000 $8,076,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund (Unclaimed Lottery Prizes)1 Probable Revenue Gain/(Loss) fromFoundation School Fund193 2010 $423,000 $5,541,000 2011 $589,000 $7,545,000 2012 $617,000 $7,904,000 2013 $626,000 $8,024,000 2014 $630,000 $8,076,000
2010 $423,000 $5,541,000
2011 $589,000 $7,545,000
2012 $617,000 $7,904,000
2013 $626,000 $8,024,000
2014 $630,000 $8,076,000
Fiscal Analysis
The bill would amend Chapter 466 of the Government Code, regarding the state lottery. The bill would remove a restriction in current law and allow the sale of lottery tickets in locations that hold certain permits to sell alcoholic beverages for consumption on the premises. The bill would take effect immediately if it receives a two-thirds vote of the members of each house. Otherwise, it would take effect on September 1, 2009.
The bill would amend Chapter 466 of the Government Code, regarding the state lottery.
The bill would remove a restriction in current law and allow the sale of lottery tickets in locations that hold certain permits to sell alcoholic beverages for consumption on the premises.
The bill would take effect immediately if it receives a two-thirds vote of the members of each house. Otherwise, it would take effect on September 1, 2009.
Methodology
In lottery states where lottery tickets may be sold in bars, an average of 2.1 percent of the lottery retail licenses were in locations permitted to sell alcoholic beverages for consumption on site. Based on the experience in other states, bars have a lower per-establishment sale of lottery tickets, on average, than other locations. Estimates were made on the number of new sales, the proportion of winning tickets that would go unclaimed, and the proportion of new sales that would have been purchased elsewhere if not sold in bars. It is assumed implementation would be fully complete by fiscal 2012.
In lottery states where lottery tickets may be sold in bars, an average of 2.1 percent of the lottery retail licenses were in locations permitted to sell alcoholic beverages for consumption on site. Based on the experience in other states, bars have a lower per-establishment sale of lottery tickets, on average, than other locations. Estimates were made on the number of new sales, the proportion of winning tickets that would go unclaimed, and the proportion of new sales that would have been purchased elsewhere if not sold in bars. It is assumed implementation would be fully complete by fiscal 2012.
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, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 458 Alcoholic Beverage Commission
LBB Staff: JOB, JRO, TG, SD
JOB, JRO, TG, SD