Fiscal Note - SB 0332 - Increases No. of Lottery Commissioners From 3 to 5; Allows Prizes If Sold in MO
L.R. NO. 1367-01
BILL NO. SB 332
SUBJECT: Gambling: Lotteries
TYPE: Original
DATE: February 26, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Lottery Enterprise $875,000 to $1,050,000 to $1,050,000 to
$1,750,000 $2,100,000 $2,100,000
Lottery Proceeds $375,000 to $450,000 to $450,000 to
$750,000 $900,000 $900,000
Total Estimated
Net Effect on All $1,250,000 to $1,500,000 to $1,500,000 to
State Funds $2,500,000 $3,000,000 $3,000,000
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Department of Revenue (DOR) assumes this proposal will not fiscally
impact their agency.
The State Treasurer's Office (STO) did not respond to our fiscal impact
request. Oversight assumes this proposal will not fiscally impact STO.
The Lottery Commission (LOT) states that this proposal amends Section 313.205
to mirror changes made to the Missouri Constitution in 1988. At that time,
the Lottery Commission was changed from a three member to a five member
commission. Because this change has already taken place, LOT assumes this
would cause no fiscal impact.
LOT also assumes reducing the claim period for Lottery prizes from one year
to 180 days will have no fiscal impact, as less than 1% of prizes are claimed
between 180 and 365 days.
LOT further states that this proposal allows the Lottery to give away as
prizes goods which are made in the United States and sold by a Missouri
business. LOT estimates that thousands of Missouri businesses will now have
the opportunity to bid as a vendor for Lottery prizes, and estimate an annual
fiscal impact of $1,500,000 to $3,000,000 in increased sales due to the
changes in prizes. This would result in annual profit to education of
$450,000 to $900,000. LOT assumes this proposal would not result in
additional costs as the Lottery will spend the same amount of money for
non-cash prizes but in different promotional venues.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LOTTERY ENTERPRISE FUND
Income
Increase in lottery sales $1,250,000 $1,500,000 $1,500,000
to $2,500,000 to $3,000,000 to $3,000,000
Cost
Monies transferred to the ($375,000 ($450,000 ($450,000
Lottery Proceeds Fund to $750,000) to $900,000) to $900,000)
ESTIMATED NET EFFECT ON $875,000 $1,050,000 $1,050,000
LOTTERY ENTERPRISE FUND to $1,750,000 to $2,100,000 to $2,100,000
LOTTERY PROCEEDS FUND
Income
Transfer of monies from $375,000 $450,000 $450,000
Lottery Enterprise Fund to $750,000 to $900,000 to $900,000
ESTIMATED NET EFFECT ON $375,000 $450,000 $450,000
LOTTERY PROCEEDS FUND to $750,000 to $900,000 to $900,000
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
This proposal would affect small businesses as it would allow an increased
number of Missouri businesses the opportunity to bid as a vendor for Lottery
prizes.
DESCRIPTION
This proposal would increase the number of lottery commission members from
three to five and permit goods made in the United States which are sold in
Missouri to be given away as prizes. This proposal would also reduce the
period of time after which unclaimed prize monies revert to the state lottery
from one year to 180 days.
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
Department of Revenue
Lottery Commission
NOT RESPONDING: State Treasurer's Office
This Fiscal Note is not an official copy and should not be quoted or cited.