LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 20, 2015 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1504 by Canales (Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1504, As Introduced: a positive impact of $596,772 through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
April 20, 2015
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1504 by Canales (Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.), As Introduced
TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1504 by Canales (Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.), As Introduced
Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1504 by Canales (Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.), As Introduced
HB1504 by Canales (Relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1504, As Introduced: a positive impact of $596,772 through the biennium ending August 31, 2017. 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 HB1504, As Introduced: a positive impact of $596,772 through the biennium ending August 31, 2017.
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 2016 $298,386 2017 $298,386 2018 $298,386 2019 $298,386 2020 $298,386
2016 $298,386
2017 $298,386
2018 $298,386
2019 $298,386
2020 $298,386
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromFoundation School Fund193 2016 $298,386 2017 $298,386 2018 $298,386 2019 $298,386 2020 $298,386
Fiscal Year Probable Revenue Gain/(Loss) fromFoundation School Fund193 2016 $298,386 2017 $298,386 2018 $298,386 2019 $298,386 2020 $298,386
2016 $298,386
2017 $298,386
2018 $298,386
2019 $298,386
2020 $298,386
Fiscal Analysis
The bill would amend the Government Code relating to a lottery prize winner's choice to remain anonymous on authorization to withhold five percent of winnings.The bill would direct the Lottery Commission to adopt rules governing nondisclosure of the identity of certain lottery prize winners. The bill would allow a lottery prize winner to remain anonymous if the prize amount is over $1.0 million and the winner authorizes five percent of the prize amount to be withheld and be deposited to the credit of General Revenue-Dedicated Account 5025 (GR-D 5025).The bill takes effect September 1, 2015; however, the provisions of the bill would only apply to lottery prize winners that submit a claim for a lottery prize on or after January 1, 2016.
Methodology
Based on information provided by the Texas Lottery Commission and the Comptroller of Public Accounts, this analysis assumes an annual average of $198.9 million in prizes paid where the prizes were valued at over $1.0 million. It is also assumed that approximately three percent of those prize winnings ($5.97 million) would be subject to prize winners opting to remain anonymous and have five percent of their prize winnings withheld ($298,386). The bill would result in an annual revenue gain of $298,386 to GR-D 5025, which would then be transferred to the Foundation School Fund 193. This legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.Based on information provided by the Texas Lottery Commission, it is further assumed that all duties and responsibilities necessary to implement the provisions of the bill could be accomplished utilizing existing staff and resources.
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: UP, CL, NV, ER
UP, CL, NV, ER