SB 0486 - Fiscal Note

Fiscal Note - SB 0486 - Changes to the Gaming Commission Laws

L.R. NO.  2324-01
BILL NO.  SB 486
SUBJECT:  Gaming Commission
TYPE:     Original
DATE:     January 23, 1996



                              FISCAL SUMMARY


                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

General Revenue              $586,950        $586,950       $586,950

Gaming
Commission                  ($586,950      ($586,950)     ($586,950)

Bingo Proceeds for
Education                   ($33,333)       ($40,000)      ($40,000)

Total Estimated
Net Effect on All
State Funds                 ($33,333)       ($40,000)      ($40,000)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None                               $0              $0             $0


Total Estimated
Net Effect on All
Federal Funds                      $0              $0             $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Local Government                   $0              $0             $0



                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of Administration, Department of Revenue, Missouri
Highway Patrol, Office of the State Courts Administrator, Office of the State
Treasurer, and the Department of Economic Development assume this proposal
would not fiscally impact their agency.

Officials of the Department of Corrections assume this proposal would have a
minimal fiscal impact on their agency.

Officials of the Gaming Commission stated that this proposal would allow for
the funding of Bingo operations from the Gaming Commission Fund.  Currently,
bingo activities within the Commission are funded from General Revenue.  The
FY 97 Gaming Commission budget request for Bingo is $586,950.  Officials
further stated that allowing bingo suppliers a 2% tax discount would reduce
collections by approximately $40,000 annually.  It should be noted that the
provisions in this proposal allowing the advertising of bingo games are
currently restricted by the Missouri State Constitution, therefore this
provision would require a constitutional amendment.

Officials of the Office of the Attorney General (AGO) assume one additional
FTE, plus related equipment and expenses, would be required to implement the
additional duties outlined in this proposal.

Oversight assumes based on information received from another state agency,
that AGO is currently representing the Gaming Commission in administrative
proceedings for contested bingo licensing cases, and therefore has not shown
any cost to AGO as a result of this proposal.

Officials of the Department of Mental Health (DMH) assume that the changes in
section 313.842 RSMo would allow them to make counseling available in at
least 5 additional sites throughout the state.  These sites would give the
Division of Alcohol and Drug Abuse coverage in population centers in each of
their regions and provide accessibility.  The combination of additional
outpatient counseling locations and the removal of the requirement to relate
riverboat gambling in Missouri to an individual's compulsive gambling
behavior is projected to increase service utilization by 50%.  Based on these
assumptions DMH estimates an additional 150 clients/year @ an average of 26
counseling sessions @ $80.00 per session = $312,000 additional cost per year.
This cost would be paid from the Compulsive Gamblers Fund which is funded
with voluntary contributions from Cities and Counties from the taxes
collected pursuant to section 313.822 RSMo.  Officials of DMH assume that
revenues coming into the fund will offset the costs of additional clients.

Oversight has not shown any fiscal impact for DMH or affected Cities and
Counties as a result of this proposal,  since the language is permissive in
nature and does not require Cities and Counties with Gambling Boats to fund
the expansion of the counseling program.


FISCAL IMPACT - State Government       FY 1997      FY 1998      FY 1999
                                      (10 Mo.)
GENERAL REVENUE FUND

Savings - Gaming Commission
    Bingo Operation                   $586,950     $586,950     $586,950


GAMING COMMISSION FUND

Cost - Gaming Commission
    Bingo Operation                 ($586,950)   ($586,950)   ($586,950)


BINGO PROCEEDS FOR
EDUCATION FUND

Loss - Gaming Commission
   2% discount for bingo suppliers   ($33,333)    ($40,000)    ($40,000)



FISCAL IMPACT - Local Government       FY 1997      FY 1998      FY 1999
                                      (10 Mo.)

                                             0            0            0

DESCRIPTION

This proposal would authorize the Missouri Highway Patrol to establish a
Division of Gaming, provided the Patrol has entered into an agreement with
the Gaming Commission.

It would make numerous changes to the Bingo laws regarding the Missouri
Gaming Commission:

     1) Contracts for investigative services may be entered into without a
competitive bid.

     2) The "Gaming Commission Bingo Fund" would be abolished and all
unobligated monies in the fund as of June 30, 1996 would be transferred to
the "Gaming Commission Fund".

     3) All bingo licensing and renewal fees would be made nonrefundable.
Any organization obtaining more than three special bingo licenses during any
calendar year would be required to submit an annual report.

     4) Any use of funds other than the actual cost of conducting a bingo
game which are not used for lawful, charitable, religious or philanthropic
purposes of the organization would be punishable as a Class D felony.

     5) Only a licensed organization may advertise a bingo occasion, and only
if such expenditures for advertising do not exceed 5% of the funds expended
for charitable purposes.

     6) Bingo suppliers may retain 2% of the pull-tab tax.

It would make numerous changes to the Excursion Boat laws regarding the
Missouri Gaming Commission:

     1) Owners of excursion gambling boats must submit an application.
Currently, only individuals wishing to conduct gambling games on an excursion
gambling boat, or individuals wanting to operate an excursion gambling boat,
are required to apply for a license from the Commission.

     2) Persons under the age of 21 shall not enter or attempt to enter an
excursion gambling boat, nor make or attempt to make a wager.  Violators of
this subsection would be charged with a Class C misdemeanor.

     3) Any tax information obtained by the Commission may be disclosed in
any hearing, order, or other official action.

     4) The funds paid to the home dock city or county may be used for public
improvements and services to enhance the safety of the visiting public.


     5) Only "improper" influence of official action of a member of the
Commission would be grounds for charging a person with a Class D felony.
Currently, any influence of official action is punishable.

     6) The Commission may issue temporary liquor licenses to applicants.
Such license shall only be valid for a maximum of 10 days and shall not
permit unlicensed excursion gambling boats to sell liquor for consumption.

     7) It would expand the service area for counseling for compulsive
gamblers, and would remove the requirement that counseling only be provided
if there is a preponderance of evidence that riverboat gambling caused their
compulsive gambling.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

State Courts Administrator
Department of Revenue
Gaming Commission
Missouri Highway Patrol
Office of Administration
Department of Economic Development
Office of the State Treasurer
Department of Corrections
Office of the Attorney General
Department of Mental Health