LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 16, 2025 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1721 by Middleton (relating to the transfer of the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation.), Committee Report 1st House, Substituted The degree to which the indirect administration function within the Texas Department of Licensing and Regulation could absorb the additional responsibilities of the bingo staff and operations is unknown. Therefore, the fiscal implications for this component of the bill's implementation cannot be determined. The bill would amend the Texas Government Code to transfer the responsibilities of administering all charitable bingo operations from the Texas Lottery Commission (TLC) to the Texas Department of Licensing and Regulation (TDLR). Under current law, the Bingo program within TLC is funded through General Revenue Funds with appropriations totaling approximately $2.6 million each fiscal year contained with its own Goal in the bill pattern of the TLC. Additionally, TLC is appropriated 30.0 full-time equivalent (FTE) positions to administer the bingo program. This estimate assumes that all funds and FTE authority appropriated for the purpose of administering the bingo program to TLC would be transferred to TDLR, resulting in no overall fiscal impact to the state. In the Sunset Staff Evaluation for the Texas Lottery Commission published in January 2025, Sunset staff identified that indirect administration responsibilities for both bingo and lottery operations are shared among many of the same TLC staff. This organizational structure is designed to remove duplication of responsibilities for the agency; however, this setup also creates challenges in determining the proportion of indirect administration workload and costs that can be attributed to solely to either bingo or lottery operations. In addition, the degree to which the indirect administration function within TDLR could absorb the additional responsibilities of the bingo staff and operations is unknown. Therefore, the fiscal implications for this component of the bill's implementation cannot be determined. This estimate assumes that charitable bingo operations staff currently employed by the Texas Lottery Commission and located in field offices in Dallas, Odessa, Houston, and San Antonio would continue to co-locate at these offices as TDLR does not currently have field offices in those locations. This estimate assumes TLC and TDLR would enter into a memorandum of understanding or related agreement to allow those employees to remain in TLC offices. This bill would take effect September 1, 2025, unless it receives a two-thirds vote of all members elected to each house, in which it is effective immediately. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 451 Department of Banking, 452 Department of Licensing and Regulation LBB Staff: b > td > JMc, WP, GDZ, BFa, JBel
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 16, 2025
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1721 by Middleton (relating to the transfer of the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation.), Committee Report 1st House, Substituted
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1721 by Middleton (relating to the transfer of the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation.), Committee Report 1st House, Substituted
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1721 by Middleton (relating to the transfer of the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation.), Committee Report 1st House, Substituted
SB1721 by Middleton (relating to the transfer of the licensing and regulation of charitable bingo to the Texas Commission of Licensing and Regulation.), Committee Report 1st House, Substituted
The degree to which the indirect administration function within the Texas Department of Licensing and Regulation could absorb the additional responsibilities of the bingo staff and operations is unknown. Therefore, the fiscal implications for this component of the bill's implementation cannot be determined.
The degree to which the indirect administration function within the Texas Department of Licensing and Regulation could absorb the additional responsibilities of the bingo staff and operations is unknown. Therefore, the fiscal implications for this component of the bill's implementation cannot be determined.
The bill would amend the Texas Government Code to transfer the responsibilities of administering all charitable bingo operations from the Texas Lottery Commission (TLC) to the Texas Department of Licensing and Regulation (TDLR). Under current law, the Bingo program within TLC is funded through General Revenue Funds with appropriations totaling approximately $2.6 million each fiscal year contained with its own Goal in the bill pattern of the TLC. Additionally, TLC is appropriated 30.0 full-time equivalent (FTE) positions to administer the bingo program. This estimate assumes that all funds and FTE authority appropriated for the purpose of administering the bingo program to TLC would be transferred to TDLR, resulting in no overall fiscal impact to the state. In the Sunset Staff Evaluation for the Texas Lottery Commission published in January 2025, Sunset staff identified that indirect administration responsibilities for both bingo and lottery operations are shared among many of the same TLC staff. This organizational structure is designed to remove duplication of responsibilities for the agency; however, this setup also creates challenges in determining the proportion of indirect administration workload and costs that can be attributed to solely to either bingo or lottery operations. In addition, the degree to which the indirect administration function within TDLR could absorb the additional responsibilities of the bingo staff and operations is unknown. Therefore, the fiscal implications for this component of the bill's implementation cannot be determined. This estimate assumes that charitable bingo operations staff currently employed by the Texas Lottery Commission and located in field offices in Dallas, Odessa, Houston, and San Antonio would continue to co-locate at these offices as TDLR does not currently have field offices in those locations. This estimate assumes TLC and TDLR would enter into a memorandum of understanding or related agreement to allow those employees to remain in TLC offices. This bill would take effect September 1, 2025, unless it receives a two-thirds vote of all members elected to each house, in which it is effective immediately.
This estimate assumes that charitable bingo operations staff currently employed by the Texas Lottery Commission and located in field offices in Dallas, Odessa, Houston, and San Antonio would continue to co-locate at these offices as TDLR does not currently have field offices in those locations. This estimate assumes TLC and TDLR would enter into a memorandum of understanding or related agreement to allow those employees to remain in TLC offices. This bill would take effect September 1, 2025, unless it receives a two-thirds vote of all members elected to each house, in which it is effective immediately.
This estimate assumes that charitable bingo operations staff currently employed by the Texas Lottery Commission and located in field offices in Dallas, Odessa, Houston, and San Antonio would continue to co-locate at these offices as TDLR does not currently have field offices in those locations. This estimate assumes TLC and TDLR would enter into a memorandum of understanding or related agreement to allow those employees to remain in TLC offices. This bill would take effect September 1, 2025, unless it receives a two-thirds vote of all members elected to each house, in which it is effective immediately.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 451 Department of Banking, 452 Department of Licensing and Regulation
304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 451 Department of Banking, 452 Department of Licensing and Regulation
LBB Staff: b > td > JMc, WP, GDZ, BFa, JBel
JMc, WP, GDZ, BFa, JBel