This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0942 - Changes the law governing excursion gambling boats
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3965-01
BILL NO. SB 942
TYPE: Original
DATE: April 1, 1998
# Revised due to change in policy by Oversight Subcommittee on March 30, 1998 regarding Article X,
Section 21.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds * Subject to appropriation ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Gaming Commission
Fund*
$0 to (Unknown)
$0 to (Unknown)
$0 to (Unknown) Compulsive Gamblers
Fund*
$0
$0
$0 #Total Estimated
$0 to (Unknown)
$0 to (Unknown)
$0 to (Unknown)
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| #Local Government | $0 to ($32,000,000) | $0 to ($32,000,000) | $0 to ($32,000,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Economic Development, Office of State Courts Administrator, Office of Administration, Budget and Planning, and Department of Elementary and Secondary Education assume this proposal would not fiscally impact their agencies.
The Department of Revenue, Office of Prosecution Services, Department of Public Safety, Missouri State Highway Patrol, and Gaming Commission did not respond to our fiscal impact request. Based on their responses to a similar proposal, Oversight assumes this proposal would not fiscally impact these agencies.
The State Public Defender (SPD) assumes existing staff could provide representation for those 20 to 30 cases arising where indigent persons are accused of the crimes described in this proposal. However, passage of more than one similar proposal would require the SPD to request increased appropriations to cover the cumulative cost of representing the indigent accused.
The Department of Mental Health (DMH) did not respond to our fiscal impact request. However, in response to a similar proposal, DMH stated that they currently contract for outpatient programs for compulsive gamblers and their families. These programs are funded through the Compulsive Gamblers Fund established within DMH by Section 313.835, RSMo. This proposal does not indicate a dollar amount or give a funding formula for municipalities to be submitted to the state for credit to the Compulsive Gamblers Fund; therefore, DMH assumes this proposal is mainly concerned with the Gaming Commission's jurisdiction over gambling boat operations and will have no fiscal impact on their agency.
Oversight assumes this proposal requires that outpatient centers for compulsive gamblers and their families be funded by appropriation of the general assembly from the Gaming Commission Fund and from taxes collected and distributed to cities and counties. For fiscal note purposes, Oversight will show this as a possible transfer from the Gaming Commission Fund to the Compulsive Gamblers Fund. In addition, Oversight assumes the admissions fee paid by gambling boat licensees to local governments will now be transferred to the Compulsive Gamblers Fund. According to the Gaming Commission, these admissions were approximately $32,000,000 in FY97. Oversight will range these admission taxes from $0 to $32,000,000.
The Attorney General's Office (AGO) did not respond to our fiscal impact request. Oversight assumes this proposal would not fiscally impact AGO.
#
ESTIMATED NET
EFFECT ON ESTIMATED NET
EFFECT ON #ESTIMATED NET
EFFECT ON
FISCAL IMPACT - State
Government
FY 1999
FY 2000
FY 2001
(10 Mo.)
GAMING COMMISSION FUND Transfer to Compulsive
Gamblers Fund
$0 to
$0 to
$0 to
(Unknown)
(Unknown)
(Unknown)
$0 to
$0 to
$0 to GAMING
COMMISSION FUND*
(Unknown)
(Unknown)
(Unknown) COMPULSIVE GAMBLERS FUND Transfer from Gaming
Commission Fund*
$0 to
$0 to
$0 to
Unknown
Unknown
Unknown Admissions tax from
political subdivisions
$0 to
$0 to
$0 to
$32,000,000
$32,000,000
$32,000,000 Cost - Outpatient Center for Compulsive
Gamblers
(Unknown)
(Unknown)
(Unknown)
COMPULSIVE
GAMBLERS FUND**
$0
$0
$0 * Subject to appropriation **Costs are assumed to equal transfers, netting out to zero. #FISCAL IMPACT -
Local Government
FY 1999
FY 2000
FY 2001
(10 Mo.)
POLITICAL
SUBDIVISIONS
Loss - Admissions Tax
$0 to
$0 to
$0 to
($32,000,000)
($32,000,000)
($32,000,000)
$0 to
$0 to
$0 to POLITICAL
SUBDIVISIONS
($32,000,000)
($32,000,000)
($32,000,000)
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal makes several changes to excursion gambling boat provisions, including basing administrative penalties on adjusted gross receipts rather than gross receipts; clarifying that tokens will be physical or electronic; lengthening the term for the initial license from one year to 2 years; and making license renewal permanent instead of every 2 years. Every fifth year after renewal, the Gaming Commission may reopen licensing hearings at any time.
The proposal also adds commission-approved persons or entities as eligible to supply gambling games or implements, and allows a gambling boat's associated facilities to provide non-gaming areas, food service, and a Missouri-theme gift shop. Current law requires the boat to provide these services. It extends the period of time within which a licensee may request tax reassessment from 10 days to 20 days from the postmark date, specifies actions that constitute a class B misdemeanor, requires, instead of allows, outpatient centers to be established to assist compulsive gamblers, and requires that the centers be funded by appropriation out of the Gaming Commission Fund and taxes. Currently, the centers may be funded from adjusted gross receipts.
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 Public Defender
Office of State Courts Administrator
Office of Administration
Budget and Planning
Department of Elementary and Secondary Education
Department of Economic Development
SOURCES OF INFORMATION (continued)
NOT RESPONDING: Attorney General's Office, Gaming Commission, Department of Revenue, Department of Mental Health, Office of Prosecution Services, and Department of Public Safety, Missouri State Highway Patrol
Jeanne Jarrett, CPA
Director
April 1, 1998