FISCAL NOTE
Date Requested: February 17, 2021
Time Requested: 04:43 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1450 |
Introduced |
HB2123 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
State Lottery Fund; State Excess Lottery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
HB 2123 will not have any revenue impact on the Lottery or State Government; however, the appropriations provided for in HB 2123 will result in an impact of re-appropriated funds of approximately $512,000 from the State Lottery Fund (net amount from Keno) and approximately $164.5 million from the State Lottery Excess Fund. The re-appropriation would divert such funds from bond coverage and rating agencies would likely downgrade Lottery and General Obligation Bonds. There are other Lottery/State Government concerns as set forth in the Memorandum, below.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
See Summary, above, and Memorandum, below.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
HB 2123 will result in an impact of re-appropriated funds of $512,000 from the State Lottery Fund (net amount from Keno) and $164.5 million from the State Lottery Excess Fund. The re-appropriation would divert such funds from bond coverage and rating agencies would likely downgrade Lottery and General Obligation Bonds. Additional concerns are as follows: (1) Lottery is unsure of the meaning "net amount" as used in sections (b)(2) through (7) of 11B-2-33 to define the amount of money to be re-appropriated from the State Lottery and State Excess Lottery Fund; (2) There are no secondary locations for racetrack video lottery, racetrack table games, casino sportsbook wagering or interactive gaming to support any revenue from such locations as set forth in HB 2123.
The fiscal impact set forth in this fiscal note presumes that "net amount" means the money left after all required additional appropriations have been made prior to those set forth in HB 2123.
Person submitting Fiscal Note: W. Brian Nickerson, Managing General Counsel
Email Address: bnickerson@wvlottery.com