State Lottery Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    House Bill 2882 consolidates several agencies in the Department of Revenue into a single State Gaming and Alcohol Control Commission. In this consolidation, the Athletic Commission (boxing), the Lottery Commission and the Racing Commission are abolished and their functions transferred to the new commission. The new commission has nine members. Six of the commission members must meet vocational standards and three are appointed as at-large representatives of the public. All commission appointments have political party and geographical restrictions. Transition provisions allow current Lottery Commissioners (5) to serve on the new commission until their replacements are appointed and qualified.
    House Bill 2882 also creates the executive agency to be known as the Gaming and Alcohol Control Agency with a “Director” appointed by the Governor. Transition provisions allow the current Lottery Director to serve until his replacement is appointed and qualified. The statutory office of the Alcohol Beverage Control Commissioner is abolished and alcohol control functions are transferred to the new commission and agency. In addition, the bingo and raffle functions of the State Tax Commissioner are transferred to the Gaming and Alcohol Control Agency.
    The consolidation provides several synergies for inspection and control of licensees. Many of the same individuals are licensed by two or more of the consolidating agencies, and fiscal savings can be accomplished without layoffs over the next five years.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 -2,398,979 -2,890,442
Personal Services 0 -1,847,154 -2,005,681
Current Expenses 0 -551,825 -884,761
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

    The consolidating agencies are funded by retention of collected fees for administrative purposes. House Bill 2882 directs these fees retained from collections to a new account created in the State Treasury named the “State Gaming and Alcohol Control Agency – Administrative Account.” Each contributing source fund receives the unencumbered and undesignated balance of its contribution as surplus at the close of the fiscal year. Use of a consolidated spending account will allow the new agency to provide resources where needed.
    Layoffs of public employees in the new agency are not contemplated, but the majority of the existing vacancies will be eliminated and all field-based employees will be cross-trained. In addition, many retiring employees will not be replaced. In this manner, the new agency will achieve significant savings during the next five years.
    The column named “Fiscal Year (Upon Full Implementation)” is fiscal year 2013-2014. The five-year estimated savings, including $10,307,603 from personal services and $5,010,179, would total $15,317,782.



    Person submitting Fiscal Note: John Melton
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