By:  De la Garza                                       H.B. No. 242
       73R1637 NSC-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to dedication of state lottery funds to programs for the
    1-3  prevention of juvenile violence, gang activity, and drug use.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 5.02(b), State Lottery Act (Article 179g,
    1-6  Vernon's Texas Civil Statutes), is amended to read as follows:
    1-7        (b)  Money in the state lottery account shall be used only
    1-8  for the following purposes and shall be distributed as follows:
    1-9              (1)  the payment of prizes to the holders of winning
   1-10  tickets;
   1-11              (2)  the payment of costs incurred in the operation and
   1-12  administration of the lottery, including any fees received by a
   1-13  lottery operator, provided that the costs incurred in a fiscal
   1-14  biennium may not exceed an amount equal to 15 percent of the gross
   1-15  revenue accruing from the sale of tickets in that biennium;
   1-16              (3)  the transfer of amounts to the state lottery
   1-17  stabilization fund as provided by Subsections (c), (d), and (e) of
   1-18  this section; and
   1-19              (4)  the balance, after creation of a reserve
   1-20  sufficient to pay the amounts provided by Subdivisions (1) and (2)
   1-21  of this subsection, to be transferred on or before the 15th day of
   1-22  each month as follows:
   1-23                    (A)  an amount equal to 90 percent of that
   1-24  balance to the unobligated portion of the general revenue fund; and
    2-1                    (B)  an amount equal to 10 percent of that
    2-2  balance to the juvenile criminal activity prevention fund
    2-3  established by Section 772.006(c), Government Code <, on or before
    2-4  the 15th day of each month>.
    2-5        SECTION 2.  Section 5.02(e), State Lottery Act (Article 179g,
    2-6  Vernon's Texas Civil Statutes),  is amended to read as follows:
    2-7        (e)  Money in the state lottery stabilization fund shall be
    2-8  distributed only as follows:
    2-9              (1)  if in any month the net lottery revenue is less
   2-10  than 90 percent of the monthly estimate of net lottery revenue, an
   2-11  amount equal to the difference between the monthly estimate of net
   2-12  lottery revenue<,> and the net lottery revenue shall be transferred
   2-13  as follows:
   2-14                    (A)  90 percent of that amount to the unobligated
   2-15  portion of the general revenue fund; and
   2-16                    (B)  10 percent of that amount to the juvenile
   2-17  criminal activity prevention fund established by Section
   2-18  772.006(c), Government Code; and
   2-19              (2)  on the first day of each fiscal biennium, an
   2-20  amount equal to one-half of the balance in the state lottery
   2-21  stabilization fund shall be transferred as follows:
   2-22                    (A)  90 percent of that amount to the unobligated
   2-23  portion of the general revenue fund; and
   2-24                    (B)  10 percent of that amount to the juvenile
   2-25  criminal activity prevention fund established by Section
   2-26  772.006(c), Government Code.
   2-27        SECTION 3.  Section 5.02(k), State Lottery Act (Article 179g,
    3-1  Vernon's Texas Civil Statutes), is amended to read as follows:
    3-2        (k)  Notwithstanding Subsection (d) of this section, the
    3-3  first transfer from the state lottery account to the state lottery
    3-4  stabilization fund may not be made before September 1, 1993.
    3-5  Notwithstanding Subsection (e)(1) of this section, the first
    3-6  transfer from the state lottery stabilization fund to the
    3-7  unobligated portion of the general revenue fund and the juvenile
    3-8  criminal activity prevention fund may not be made before December
    3-9  1, 1993.
   3-10        SECTION 4.  Section 772.006, Government Code, is amended by
   3-11  adding a new Subsection (c) and redesignating existing Subsection
   3-12  (c) as Subsection (d) to read as follows:
   3-13        (c)  The juvenile criminal activity prevention fund is a fund
   3-14  in the state treasury.  The legislature shall appropriate money
   3-15  from the fund only to the criminal justice division of the
   3-16  governor's office.  The division may distribute the money only to
   3-17  local programs for the prevention of juvenile violence, gang
   3-18  activity, or drug use.  The division may adopt a budget and rules
   3-19  for the distribution of money to the local programs.  The
   3-20  comptroller may audit money collected under this subsection.
   3-21        (d) <(c)>  The criminal justice division and any project
   3-22  funded by the division is subject to examination, inspection, and
   3-23  audit by the State Auditor's Office, the Legislative Budget Board,
   3-24  and the division of planning coordination to determine compliance
   3-25  with this section and the approved annual comprehensive criminal
   3-26  justice plans.
   3-27        SECTION 5.  This Act takes effect September 1, 1993.
    4-1        SECTION 6.  The importance of this legislation and the
    4-2  crowded condition of the calendars in both houses create an
    4-3  emergency   and   an   imperative   public   necessity   that   the
    4-4  constitutional rule requiring bills to be read on three several
    4-5  days in each house be suspended, and this rule is hereby suspended.