FISCAL NOTE



FUND(S):

State Excess Lottery Revenue Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The bill would limit the eligibility for Limited Video Lottery permits to fraternal and veteran organizations. Under the current law, a maximum of 9,000 limited video terminals may operate in the state. Fraternals and veteran organizations may each operate a maximum of 10 video lottery terminals each. Currently, 179 fraternal and veteran organizations operate 2,322 limited video lottery terminals. The bill also redefines the access by customers to automated teller machines.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
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 -164,427,800


Explanation of above estimates (including long-range effect):


Currently, about 8,000 of the 9,000 maximum limited video lottery terminals are operating. If the bill is enacted in its present form, this number of terminals would be reduced to 1,322. If the limited video lottery terminals operated by the 179 licensed fraternal and veteran organizations were the only organizations to be re-permitted as of July 1, 2011, gross revenue would reduce from $401,698,800 to $66,405,600, a difference of $335,293,200. Of this loss, $157,721,900 would be lost by the State Excess Lottery Revenue Fund, and $6,705,900 would be lost for Lottery Commission administrative costs allowance. In addition to state losses shown in the Fiscal Note Detail, above, county and municipalities would lose a combined total of $6,571,700. Current law has allocated ten year permits that expire June 30, 2011; therefore, the first year for fiscal change would be fiscal year 2012. There is no fiscal estimate that deals with automated teller machines.



Memorandum


Problems with drafting include the lack of an effective date for the change of status. Also, new bill subsection 29-22B-1102(c)speaks to renewal of "license" while the original section 1102 deals with the ten-year "permits." In the limited video lottery act, there are also "licenses," but licenses are year-to-year.



    Person submitting Fiscal Note: John Melton
    Email Address: jmelton@wvlottery.com