LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 9, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB227 by West (Relating to a fee on certain lottery prizes to fund the TEXAS grant program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB227, As Introduced: a positive impact of $32,815,000 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
April 9, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB227 by West (Relating to a fee on certain lottery prizes to fund the TEXAS grant program.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB227 by West (Relating to a fee on certain lottery prizes to fund the TEXAS grant program.), As Introduced
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB227 by West (Relating to a fee on certain lottery prizes to fund the TEXAS grant program.), As Introduced
SB227 by West (Relating to a fee on certain lottery prizes to fund the TEXAS grant program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB227, As Introduced: a positive impact of $32,815,000 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 SB227, As Introduced: a positive impact of $32,815,000 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 $16,604,000 2011 $16,211,000 2012 $16,190,000 2013 $16,458,000 2014 $16,573,000
2010 $16,604,000
2011 $16,211,000
2012 $16,190,000
2013 $16,458,000
2014 $16,573,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund (TEXAS Grant Program) Probable Revenue Gain/(Loss) fromFoundation School Fund193 2010 ($241,000) $21,592,000 ($4,747,000) 2011 ($236,000) $21,109,000 ($4,662,000) 2012 ($236,000) $21,078,000 ($4,652,000) 2013 ($239,000) $21,396,000 ($4,699,000) 2014 ($241,000) $21,535,000 ($4,721,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund (TEXAS Grant Program) Probable Revenue Gain/(Loss) fromFoundation School Fund193 2010 ($241,000) $21,592,000 ($4,747,000) 2011 ($236,000) $21,109,000 ($4,662,000) 2012 ($236,000) $21,078,000 ($4,652,000) 2013 ($239,000) $21,396,000 ($4,699,000) 2014 ($241,000) $21,535,000 ($4,721,000)
2010 ($241,000) $21,592,000 ($4,747,000)
2011 ($236,000) $21,109,000 ($4,662,000)
2012 ($236,000) $21,078,000 ($4,652,000)
2013 ($239,000) $21,396,000 ($4,699,000)
2014 ($241,000) $21,535,000 ($4,721,000)
Fiscal Analysis
The bill would amend the Government Code to require the Texas Lottery Commission to collect a five percent prize fee from a person who is paid a prize of $600 or more. The fee would be deposited to the General Revenue Fund and could be appropriated only to fund the TEXAS grant program. The bill would take effect on September 1, 2009.
The bill would amend the Government Code to require the Texas Lottery Commission to collect a five percent prize fee from a person who is paid a prize of $600 or more. The fee would be deposited to the General Revenue Fund and could be appropriated only to fund the TEXAS grant program.
The bill would take effect on September 1, 2009.
Methodology
The fiscal impact reflected in the table above is based on the information and analysis provided by the Texas Lottery Commission (TLC) and the Comptroller's office. Based on the analysis of TLC and the Comptroller's office, it is assumed the five percent prize fee imposed on prizes of $600 or more would result in a gain to the TEXAS Grant Program beginning in fiscal year 2010. Also based on the analysis of the Comptroller's office, it is assumed the prize fee would exert downward pressure on lottery ticket purchases resulting in decreases in lottery revenue transferred to the Foundation School Fund and amounts transferred to the General Revenue Fund from unclaimed lottery prizes.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 362 Texas Lottery Commission
304 Comptroller of Public Accounts, 362 Texas Lottery Commission
LBB Staff: JOB, MN, MW, TG
JOB, MN, MW, TG