FISCAL NOTE

Date Requested: March 08, 2017
Time Requested: 12:47 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
2366 Introduced HB2820
CBD Subject: Alcoholic Liquors and Beers


FUND(S):

Lottery Administrative Funds

Sources of Revenue:

Other Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    This amended fiscal note is filed to clarify, again, that the Lottery does not have the resources or specific information to assess the true fiscal impact of eliminating oversight of ABCA and placing the agency under the Lottery's control. However, we assume no cost savings to the state as a whole will occur in doing so as the Lottery would assume the staffing an administrative costs of the ABCA to continue conducting their business. Thus, the Lottery would assume additional costs of operating the agency and lose rental income currently received from the agency for the space they occupy in the Lottery building. The ABCA currently pays approximately $250,000 in rent to the Lottery that the Lottery assumes will no longer be paid if the ABCA is part of the Lottery.
    
    There is minimal overlap between the Lottery and ABCA's duties. Unless the private club or tavern licensed by ABCA has a limited video lottery license then there is no overlap. Therefore, the personnel involved in regulating ABCA's activities would need to remain in place, resulting in minimal cost savings to the state, if any, and additional costs to the Lottery.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
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):


    This amended fiscal note is filed to clarify, again, that the Lottery does not have the resources or specific information to assess the true fiscal impact of eliminating oversight of ABCA and placing the agency under the Lottery's control. However, we assume no cost savings to the state as a whole will occur in doing so as the Lottery would assume the staffing an administrative costs of the ABCA to continue conducting their business. Thus, the Lottery would assume additional costs of operating the agency and lose rental income currently received from the agency for the space they occupy in the Lottery building. The ABCA currently pays approximately $250,000 in rent to the Lottery that the Lottery assumes will no longer be paid if the ABCA is part of the Lottery.
    
    There is minimal overlap between the Lottery and ABCA's duties. Unless the private club or tavern licensed by ABCA has a limited video lottery license then there is no overlap. Therefore, the personnel involved in regulating ABCA's activities would need to remain in place, resulting in minimal cost savings to the state, if any, and additional costs to the Lottery.



Memorandum


    Special issues not captured on this form may more accurately be summarized by ABCA. A fiscal note from ABCA is necessary to thoroughly depict the full fiscal impact.
    
    Also, the Lottery believes having ABCA under it's regulatory purview may create a direct or perceived conflict of interest as the Lottery is charged with maximizing lottery revenues, and, for example, would be placed in the position of assessing compliance with ABCA regulations at casinos where the Lottery relies on their continued operation in the state to do business.



    Person submitting Fiscal Note: Danielle E. Boyd, Managing General Counsel
    Email Address: dboyd@wvlottery.com