FISCAL NOTE

Date Requested: January 22, 2020
Time Requested: 01:39 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
2304 Introduced HB4435
CBD Subject: Legal Gaming


FUND(S):

State Lottery Fund and 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. HB4435 eliminates the benchmarks set by the Legislature that secured a certain level of funding for Lottery programs based upon revenue from net terminal income from a specific fiscal year (1999 and 2001). Excess revenue beyond the benchmarks is deposited in the Excess Lottery Fund for distribution according to appropriation. The proposed change would require transfer of approximately $120 million from the Lottery Fund reducing available funds to approximately $40 million. The impact would reduce the bond ratio from 4 times debt service to an unacceptable 1. Also, appropriations of the Lottery Funds would not be made – appropriations to seniors, education and tourism. Further, the tax rate in the Racetrack Video Lottery Act at issue here is higher for net terminal income earned going to the Excess Lottery Fund than the net terminal income going to the Lottery Fund – 46.5 percent to 42.5 percent, respectively – so operators will be paying a higher tax rate.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
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. n/a



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. n/a



    Person submitting Fiscal Note: Tracy L. Webb, General Counsel
    Email Address: twebb@wvlottery.com