By Wilson H.B. No. 1177
74R5330 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation and use of the lottery dedication account
1-3 for the support of public free schools.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 20, Education Code, is amended by adding
1-6 Subchapter H to read as follows:
1-7 SUBCHAPTER H. LOTTERY DEDICATION ACCOUNT
1-8 Sec. 20.991. LOTTERY DEDICATION ACCOUNT. (a) The lottery
1-9 dedication account is in the general revenue fund.
1-10 (b) The account consists of:
1-11 (1) money transferred from the state lottery account
1-12 as provided by Section 466.355, Government Code; and
1-13 (2) interest earned on money in the account.
1-14 (c) The account may be used only for the support of public
1-15 free schools.
1-16 (d) Before the state fiscal year that begins in 2007, the
1-17 proceeds of the lottery dedication account may be appropriated only
1-18 for a state fiscal year in which the total amount of other state
1-19 revenue appropriated for the support of the public free schools
1-20 equals or exceeds the total amount of state revenue appropriated
1-21 for that purpose for the state fiscal year beginning September 1,
1-22 1995.
1-23 SECTION 2. Section 466.355(b), Government Code, is amended
1-24 to read as follows:
2-1 (b) Money in the state lottery account may be used only for
2-2 the following purposes and shall be distributed as follows:
2-3 (1) the payment of prizes to the holders of winning
2-4 tickets;
2-5 (2) the payment of costs incurred in the operation and
2-6 administration of the lottery, including any fees received by a
2-7 lottery operator, provided that the costs incurred in a fiscal
2-8 biennium may not exceed an amount equal to 15 percent of the gross
2-9 revenue accruing from the sale of tickets in that biennium;
2-10 (3) the establishment of a pooled bond fund, lottery
2-11 prize reserve fund, unclaimed prize fund, and prize payment account
2-12 <transfer of amounts to the state lottery stabilization fund as
2-13 provided by Section 466.356>; and
2-14 (4) the balance, after creation of a reserve
2-15 sufficient to pay the amounts needed or estimated to be needed
2-16 under <provided by> Subdivisions (1) through (3) <and (2)>, to be
2-17 transferred to the lottery dedication account established under
2-18 Section 20.991, Education Code, for the support of public free
2-19 schools <unobligated portion of the general revenue fund>, on or
2-20 before the 15th day of each month.
2-21 SECTION 3. Section 466.356, Government Code, is repealed.
2-22 SECTION 4. (a) In addition to the changes in law made by
2-23 this Act relating to the dedication of lottery revenue to the
2-24 lottery dedication account, this Act conforms the provisions of the
2-25 Government Code regarding the use of lottery revenue to changes in
2-26 law made by Sections 1 and 2, Chapter 25, and Sections 27 and 28,
2-27 Chapter 284, Acts of the 73rd Legislature, Regular Session, 1993.
3-1 (b) Sections 1 and 2, Chapter 25, and Sections 27 and 28,
3-2 Chapter 284, Acts of the 73rd Legislature, Regular Session, 1993,
3-3 are repealed.
3-4 (c) To the extent of any conflict, this Act prevails over
3-5 another Act of the 74th Legislature, Regular Session, 1995,
3-6 relating to nonsubstantive additions to and corrections in enacted
3-7 codes.
3-8 SECTION 5. Section 466.355, Government Code, as amended by
3-9 this Act, applies only to revenue from the sale of a lottery ticket
3-10 that occurs on or after the effective date of this Act. Revenue
3-11 from the sale of a lottery ticket that occurs before the effective
3-12 date of this Act is governed by the law in effect on the date of
3-13 the sale, and the former law is continued in effect for that
3-14 purpose.
3-15 SECTION 6. This Act takes effect September 1, 1995.
3-16 SECTION 7. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.