FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 08:28 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1731 |
Introduced |
HB4275 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
State Excess Lottery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Expenses
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.
HB4275 will redirect money deposited in the West Virginia Greyhound Breeding Development Fund into the State Excess Lottery Fund. HB 4275 discontinues the WV Greyhound Breeding Development Fund. The discontinuation of the WV Greyhound Breeding Development Fund and elimination of distributions to Greyhound purses will redirect monies into the State Excess Lottery Fund and result in an annual increase of approximately $9,000,000 into the State Excess Lottery Fund. HB4275 will also result in additional savings on certain transfers that currently occur in the State Excess Lottery Fund, such as the "10/10/10" distributions and current year-end surplus money that is distributed to the Racing Commission Administration Fund (currently $800,000 in Section 12 of the Budget Bill). The total savings from eliminating said distributions cannot be calculated explicitly at this time.
The Lottery notes a few issues with HB4275, specifically, the removal of the Workers Compensation Debt Reduction Fund distributions made by 29-22A-10(c)(9)(A) (pgs 53-54, lines 136-150) and 29-22A-10b(a)(9)(A) (pg 60, lines 59-74), which if not changed, would result in distributions in the amount of 7 percent and 4 percent, respectively, to not be made, meaning there would be no place for the Lottery to deposit the funds represented by those current distributions. Additionally, the administrative transfer directed to be made at 29-22A-10(b)(1) (pg. 49, lines 12-29) should include language that indicates the transfer is to be "included in actual costs and expenses" or such transfer will result in the lottery transferring funds it does not have money to support. Currently, HB2475 dictates the Lottery can make the administrative transfer to cover its administrative costs and expenses but does not indicate that the transfer be included as actual costs and expenses.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 |
9,000,000 |
9,000,000 |
9,000,000 |
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.
HB4275 will redirect money deposited in the West Virginia Greyhound Breeding Development Fund into the State Excess Lottery Fund. HB 4275 discontinues the WV Greyhound Breeding Development Fund. The discontinuation of the WV Greyhound Breeding Development Fund and elimination of distributions to Greyhound purses will redirect monies into the State Excess Lottery Fund and result in an annual increase of approximately $9,000,000 into the State Excess Lottery Fund. HB4275 will also result in additional savings on certain transfers that currently occur in the State Excess Lottery Fund, such as the "10/10/10" distributions and current year-end surplus money that is distributed to the Racing Commission Administration Fund (currently $800,000 in Section 12 of the Budget Bill). The total savings from eliminating said distributions cannot be calculated explicitly at this time.
The Lottery notes a few issues with HB4275, specifically, the removal of the Workers Compensation Debt Reduction Fund distributions made by 29-22A-10(c)(9)(A) (pgs 53-54, lines 136-150) and 29-22A-10b(a)(9)(A) (pg 60, lines 59-74), which if not changed, would result in distributions in the amount of 7 percent and 4 percent, respectively, to not be made, meaning there would be no place for the Lottery to deposit the funds represented by those current distributions. Additionally, the administrative transfer directed to be made at 29-22A-10(b)(1) (pg. 49, lines 12-29) should include language that indicates the transfer is to be "included in actual costs and expenses" or such transfer will result in the lottery transferring funds it does not have money to support. Currently, HB2475 dictates the Lottery can make the administrative transfer to cover its administrative costs and expenses but does not indicate that the transfer be included as actual costs and expenses.
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.
HB4275 will redirect money deposited in the West Virginia Greyhound Breeding Development Fund into the State Excess Lottery Fund. HB 4275 discontinues the WV Greyhound Breeding Development Fund. The discontinuation of the WV Greyhound Breeding Development Fund and elimination of distributions to Greyhound purses will redirect monies into the State Excess Lottery Fund and result in an annual increase of approximately $9,000,000 into the State Excess Lottery Fund. HB4275 will also result in additional savings on certain transfers that currently occur in the State Excess Lottery Fund, such as the "10/10/10" distributions and current year-end surplus money that is distributed to the Racing Commission Administration Fund (currently $800,000 in Section 12 of the Budget Bill). The total savings from eliminating said distributions cannot be calculated explicitly at this time.
The Lottery notes a few issues with HB4275, specifically, the removal of the Workers Compensation Debt Reduction Fund distributions made by 29-22A-10(c)(9)(A) (pgs 53-54, lines 136-150) and 29-22A-10b(a)(9)(A) (pg 60, lines 59-74), which if not changed, would result in distributions in the amount of 7 percent and 4 percent, respectively, to not be made, meaning there would be no place for the Lottery to deposit the funds represented by those current distributions. Additionally, the administrative transfer directed to be made at 29-22A-10(b)(1) (pg. 49, lines 12-29) should include language that indicates the transfer is to be "included in actual costs and expenses" or such transfer will result in the lottery transferring funds it does not have money to support. Currently, HB2475 dictates the Lottery can make the administrative transfer to cover its administrative costs and expenses but does not indicate that the transfer be included as actual costs and expenses.
Person submitting Fiscal Note: W. Brian Nickerson, General Counsel
Email Address: bnickerson@wvlottery.com