SJR 031 - Fiscal Note

Fiscal Note - SJR 031 - Would authorize general assembly to allow games of chance where person risks something of value for a prize

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3318-03

BILL NO. SJR 31

SUBJECT: Gambling

TYPE: Original

DATE: February 13, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($81,800)	$0	$0
Lottery Proceeds	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All State Funds	(Unknown)	(Unknown)	(Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	(Unknown)	(Unknown)	(Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Senate, the House of Representatives, and the Gaming Commission assume this proposal would not fiscally impact their agencies.

The Lottery Commission (LOT) states that the Missouri Lottery currently has 195 non-profit organizations selling pull tabs, with total annual sales of $4.5 million. LOT assumes 50% of pull tab sales would be lost to local raffles and sweepstakes, and that lottery sales would be reduced by $2.25 million, annually. Assuming a 20% profit margin for pull tabs, this would result in an annual loss of $450,000 to the Lottery Profits for Education fund. In addition, LOT assumes this proposal would result in a negative impact on Lottery ticket sales in all Lottery retail locations; however, this loss cannot be reasonably determined.

Oversight assumes there may be a reduction in pull tab and/or lottery sales; however, these reductions in sales cannot be reasonably estimated. This would result in losses to the Lottery Proceeds Fund and to the amounts transferred to local school districts.

Oversight further assumes this proposal would require the Secretary of State's Office to certify the proposal to local election authorities for inclusion on the November 1998 general election ballot and to publish full text of the proposal in selected newspapers throughout the state. Costs are estimated at $1,330 per inch, which is based on actual publication costs that were incurred for the November 1996 election, for 3 printings, or $3,990 per newspaper column inch. Oversight estimates 20.5 column inches would be needed for the publications at a total cost of $81,800.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE
Cost-Secretary of State
Newspaper Advertisements	($81,800)	$0	$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($81,800)	$0	$0
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LOTTERY PROCEEDS FUND
Loss of Revenue
Loss of lottery sales	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT ON
LOTTERY PROCEEDS FUND	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LOCAL SCHOOL DISTRICTS
Loss of Revenue	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT ON
LOCAL SCHOOL DISTRICTS	(Unknown)	(Unknown)	(Unknown)

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposed constitutional amendment would authorize the general assembly to allow organizations recognized as charitable or religious pursuant to federal law to sponsor games of chance in which a person risks something of value for a prize.

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

Gaming Commission

Lottery Commission

House of Representatives

Senate

Jeanne Jarrett, CPA

Director

February 13, 1998