FISCAL NOTE
Date Requested: January 25, 2024
Time Requested: 04:54 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2891 |
Introduced |
HB5128 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
State Lottery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
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.
HB5128 permits the transfer of up to 12m annually from the State Lottery Fund to the following causes in the following amounts: (1) 6m to the Fire Protection Fund; (2) 3m to the All County Fire Protection Fund; and (3) 3m to the County Fire Protection Fund by adding a new section of code, 29-22-18g. Because HB5128 dictates that the transfers are to happen after all debt obligations pursuant to 29-22-18 and 18f are met, HB5128 will not have a negative impact on current revenues or debt obligations. The only fiscal impact would be the reduction in the amount available for discretionary or surplus appropriations by the Legislature.
The Lottery does, however, have concerns as to whether HB5128 represents a permissible statutory transfer pursuant to 29-22-18 and 18f. 29-22-18 and 18f are very clear as to where State Lottery Fund proceeds are to be designated. 29-22-18 indicates proceeds (called "net profits") are to be used to satisfy the following bonds: (1) School Building Bond; (2) Education, Arts, Sciences and Tourism Debt Service; (3) Community and Technical College Capital Improvement Fund; and (4) any other bonds in Section 29-22-18a. The Legislature then must appropriate all the remaining amounts annually in such proportions as it may benefit the State, to the following causes: (1) Lottery Education Fund; (2) School Construction Fund; (3) Lottery Senior Citizens Fund; and (4) to the Division of Natural Resources/West Virginia Development Office. There are also prohibitions of appropriations to any account other than bond debt service where there is a default period for any of the bonds secured by State Lottery Fund proceeds and also when net profits are not 150 percent of debt obligations to the School Building Debt Service Account and the Education, Arts, Sciences and Tourism Debt Service Fund, and the Community and Technical College Capital Improvement Fund.
The Lottery does not interpret 29-22-18 to provide a permissible statutory appropriation to the Fire protection funds as provided for in HB5128 notwithstanding its proposed creation of a new provision in the law (29-22-18g).
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 |
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.
HB5128 permits the transfer of up to 12m annually from the State Lottery Fund to the following causes in the following amounts: (1) 6m to the Fire Protection Fund; (2) 3m to the All County Fire Protection Fund; and (3) 3m to the County Fire Protection Fund by adding a new section of code, 29-22-18g. Because HB5128 dictates that the transfers are to happen after all debt obligations pursuant to 29-22-18 and 18f are met, HB5128 will not have a negative impact on current revenues or debt obligations. The only fiscal impact would be the reduction in the amount available for discretionary or surplus appropriations by the Legislature.
The Lottery does, however, have concerns as to whether HB5128 represents a permissible statutory transfer pursuant to 29-22-18 and 18f. 29-22-18 and 18f are very clear as to where State Lottery Fund proceeds are to be designated. 29-22-18 indicates proceeds (called "net profits") are to be used to satisfy the following bonds: (1) School Building Bond; (2) Education, Arts, Sciences and Tourism Debt Service; (3) Community and Technical College Capital Improvement Fund; and (4) any other bonds in Section 29-22-18a. The Legislature then must appropriate all the remaining amounts annually in such proportions as it may benefit the State, to the following causes: (1) Lottery Education Fund; (2) School Construction Fund; (3) Lottery Senior Citizens Fund; and (4) to the Division of Natural Resources/West Virginia Development Office. There are also prohibitions of appropriations to any account other than bond debt service where there is a default period for any of the bonds secured by State Lottery Fund proceeds and also when net profits are not 150 percent of debt obligations to the School Building Debt Service Account and the Education, Arts, Sciences and Tourism Debt Service Fund, and the Community and Technical College Capital Improvement Fund.
The Lottery does not interpret 29-22-18 to provide a permissible statutory appropriation to the Fire protection funds as provided for in HB5128 notwithstanding its proposed creation of a new provision in the law (29-22-18g).
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.
HB5128 permits the transfer of up to 12m annually from the State Lottery Fund to the following causes in the following amounts: (1) 6m to the Fire Protection Fund; (2) 3m to the All County Fire Protection Fund; and (3) 3m to the County Fire Protection Fund by adding a new section of code, 29-22-18g. Because HB5128 dictates that the transfers are to happen after all debt obligations pursuant to 29-22-18 and 18f are met, HB5128 will not have a negative impact on current revenues or debt obligations. The only fiscal impact would be the reduction in the amount available for discretionary or surplus appropriations by the Legislature.
The Lottery does, however, have concerns as to whether HB5128 represents a permissible statutory transfer pursuant to 29-22-18 and 18f. 29-22-18 and 18f are very clear as to where State Lottery Fund proceeds are to be designated. 29-22-18 indicates proceeds (called "net profits") are to be used to satisfy the following bonds: (1) School Building Bond; (2) Education, Arts, Sciences and Tourism Debt Service; (3) Community and Technical College Capital Improvement Fund; and (4) any other bonds in Section 29-22-18a. The Legislature then must appropriate all the remaining amounts annually in such proportions as it may benefit the State, to the following causes: (1) Lottery Education Fund; (2) School Construction Fund; (3) Lottery Senior Citizens Fund; and (4) to the Division of Natural Resources/West Virginia Development Office. There are also prohibitions of appropriations to any account other than bond debt service where there is a default period for any of the bonds secured by State Lottery Fund proceeds and also when net profits are not 150 percent of debt obligations to the School Building Debt Service Account and the Education, Arts, Sciences and Tourism Debt Service Fund, and the Community and Technical College Capital Improvement Fund.
The Lottery does not interpret 29-22-18 to provide a permissible statutory appropriation to the Fire protection funds as provided for in HB5128 notwithstanding its proposed creation of a new provision in the law (29-22-18g).
Person submitting Fiscal Note: W. Brian Nickerson, General Counsel
Email Address: bnickerson@wvlottery.com