By: Nelson S.B. No. 634
73R4112 LJD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the dedication of revenue derived from the state
1-3 lottery to the foundation school fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 5.02(b), (c), (e), and (k), State
1-6 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
1-7 amended to read as follows:
1-8 (b) Money in the state lottery account shall be used only
1-9 for the following purposes and shall be distributed as follows:
1-10 (1) the payment of prizes to the holders of winning
1-11 tickets;
1-12 (2) the payment of costs incurred in the operation and
1-13 administration of the lottery, including any fees received by a
1-14 lottery operator, provided that the costs incurred in a fiscal
1-15 biennium may not exceed an amount equal to 15 percent of the gross
1-16 revenue accruing from the sale of tickets in that biennium;
1-17 (3) the transfer of amounts to the state lottery
1-18 stabilization fund as provided by Subsections (c), (d), and (e) of
1-19 this section; and
1-20 (4) the balance, after creation of a reserve
1-21 sufficient to pay the amounts provided by Subdivisions (1) and (2)
1-22 of this subsection, to be transferred to the foundation school
1-23 <unobligated portion of the general revenue> fund, on or before the
1-24 15th day of each month.
2-1 (c) A special fund in the state treasury to be known as the
2-2 state lottery stabilization fund is established. The fund consists
2-3 of revenue credited to the fund from the state lottery account as
2-4 provided by Subsection (d) of this section. Interest earned by the
2-5 state lottery stabilization fund shall be deposited in the
2-6 foundation school <unobligated portion of the general revenue>
2-7 fund.
2-8 (e) Money in the state lottery stabilization fund shall be
2-9 distributed only as follows:
2-10 (1) if in any month the net lottery revenue is less
2-11 than 90 percent of the monthly estimate of net lottery revenue, an
2-12 amount equal to the difference between the monthly estimate of net
2-13 lottery revenue, and the net lottery revenue shall be transferred
2-14 to the foundation school <unobligated portion of the general
2-15 revenue> fund; and
2-16 (2) on the first day of each fiscal biennium, one-half
2-17 of the balance in the state lottery stabilization fund shall be
2-18 transferred to the foundation school <unobligated portion of the
2-19 general revenue> fund.
2-20 (k) Notwithstanding Subsection (d) of this section, the
2-21 first transfer from the state lottery account to the state lottery
2-22 stabilization fund may not be made before September 1, 1993.
2-23 Notwithstanding Subsection (e)(1) of this section, the first
2-24 transfer from the state lottery stabilization fund to the
2-25 foundation school <unobligated portion of the general revenue> fund
2-26 may not be made before December 1, 1993.
2-27 SECTION 2. This Act takes effect September 1, 1993, and
3-1 applies only to:
3-2 (1) a transfer from the state lottery account or the
3-3 state lottery stabilization fund under Section 5.02(b) or (e),
3-4 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
3-5 made on or after that date; and
3-6 (2) interest earned by the state lottery stabilization
3-7 fund on or after that date.
3-8 SECTION 3. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended.