COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 4122-01
BILL NO.: SB 902
SUBJECT: Gambling; Minorities.
TYPE: Original
DATE: February 14, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | (unknown) | (unknown) | (unknown) |
| Total Estimated
Net Effect on All State Funds |
(expected to be less than $100,000) | (expected to be less than $100,000) | (expected to be less than $100,000) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the Gaming Commission (GAM) state this proposal would change, clarify, and improve language in the riverboat gambling act. The GAM assumes they will not be fiscally impacted by this legislation.
Officials from the Lottery Commission (LOT) state although the statutory requirements mandating 10% of lottery contracts go to minority-owned businesses and 5% to women-owned business expired on January 1, 2000, they have continued to work to meet those goals. The Lottery spends approximately $3,200,000 annually with minority-owned businesses and $1,600,000 with women-owned businesses. The LOT assumes no fiscal impact as they continue this program.
The Office of the State Public Defender (SPD) states this proposal creates the crime of assisting a person less than 21 years of age to make a wager or to enter a gambling boat. The SPD assumes that existing staff could provide representation for those 25-50 cases arising where indigent persons were charged. However, they state, passage of more than one similar bill would require the State Public Defender System to request increased appropriations to cover cumulative costs of representing the indigent accused in the additional cases.
Officials from the Department of Corrections (DOC) state supervision by the DOC through probation or incarceration would result in some additional costs, but it is assumed that the impact would be $0, or a minimal amount.
Officials from the Missouri Highway Patrol, the Office of the State Courts Administrator and the Office of Prosecution Services assume this proposal will not fiscally impact their respective agencies.
Oversight assumes GAM will seek prosecution where applicable and the impact of this proposed legislation is unknown, but should be less than $100,000 per year due to supervision or incarceration costs to the Department of Corrections for the few expected offenders. Oversight also assumes the electronic tokens will not increase gambling boat admissions or winnings.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(10 Mo.)
GENERAL REVENUE FUND
Costs - Department of Corrections
Supervision or incarceration
of convicted offenders (unknown) (unknown) (unknown)
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(continued) (10 Mo.)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND (UNKNOWN) (UNKNOWN) (UNKNOWN)
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal makes several modifications to the law relating to licensed gaming activities.
Any money used for gambling may be converted to electronic tokens as well as physical tokens.
In current law, lottery contractors or vendors must award at least 10% of subcontracts to minority business. This act extends that requirement until 2005.
Applicants for a license or renewal of a license to operate an excursion gambling boat must provide an affirmative action plan to achieve maximum employment of minorities and maximum procurement of goods and services from minority contractors.
This act extends the period of time between license renewals for excursion gambling boats from 2 years to between 2 and 3 years.
Gambling games and implements may be purchased from any vendor approved by the Gaming Commission instead of only licensed vendors. A licensed facility may not sell or give away gambling games or implements without the prior approval of the Gaming Commission.
This act clarifies the right of the Gaming Commission to deny a license to any person applying for a license or license renewal for failure to meet any of the standards set forth in section 313.812, RSMo.
DESCRIPTION (continued)
The coverage provided by a surety bond posted by a licensed gaming facility is expanded to guarantee that a licensee will complete any proposed modifications to the facility within 4 years of August 28, 2000 or within a time period specified to the Gaming Commission. Failure to complete any proposed modifications to the facility may result in non-renewal of a gaming
license.
In current law, a tax of 20% is imposed on the adjusted gross receipts of a licensed gambling facility. If the Gaming Commission has reason to believe that there may be some disparity between the amount due and the payment made by a licensee, then the amount due may be adjusted to reflect the payment due as determined by the Commission. This act extends the amount of time available to a licensee to appeal the adjustment made by the Commission from 10 to 20 days.
This act prohibits anyone under 21 years of age from wagering at a licensed gaming facility. This act also prohibits assisting a person under 21 to make a wager, and permitting anyone under 21 to make a wager. Anyone violating this law for the first time is guilty of a class "B" misdemeanor. Second and subsequent offenses constitute a class "A" misdemeanor.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Missouri Gaming Commission
Missouri Lottery Commission
Office of Prosecution Services
Office of the State Public Defender
Office of the State Courts Administrator
Missouri Highway Patrol
Department of Corrections
Jeanne Jarrett, CPA
Director
February 14, 2000