By Hunter of Nueces                                   H.B. No. 2992
       74R5395 CAG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the authority of the Texas Lottery Commission to create
    1-3  a lottery game with revenue dedicated to public education; making
    1-4  an appropriation.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter B, Chapter 466, Government Code, is
    1-7  amended by adding Section 466.026 to read as follows:
    1-8        Sec. 466.026.  CREATION OF GAME TO BENEFIT PUBLIC EDUCATION.
    1-9  (a)  The commission may create a lottery game to benefit public
   1-10  education.
   1-11        (b)  The commission shall adopt rules to compute the net
   1-12  revenue of a lottery game created under this section and to provide
   1-13  for the allocation of a portion of general lottery administrative
   1-14  costs to a game created under this section.
   1-15        (c)  A ticket, promotion, or advertisement for a game created
   1-16  under this section must include a statement that the net revenue
   1-17  from the game is used to benefit public education.
   1-18        SECTION 2.  Section 466.355(b), Government Code, is amended
   1-19  to read as follows:
   1-20        (b)  Money in the state lottery account may be used only for
   1-21  the following purposes and shall be distributed as follows:
   1-22              (1)  the payment of prizes to the holders of winning
   1-23  tickets;
   1-24              (2)  the payment of costs incurred in the operation and
    2-1  administration of the lottery, including any fees received by a
    2-2  lottery operator, provided that the costs incurred in a fiscal
    2-3  biennium may not exceed an amount equal to 15 percent of the gross
    2-4  revenue accruing from the sale of tickets in that biennium;
    2-5              (3)  the establishment of a pooled bond fund, lottery
    2-6  prize reserve fund, unclaimed prize fund, and prize payment account
    2-7  <transfer of amounts to the state lottery stabilization fund as
    2-8  provided by Section 466.356>;
    2-9              (4)  the transfer of amounts to the foundation school
   2-10  fund as provided by Section 466.3551; and
   2-11              (5) <(4)>  the balance, after creation of a reserve
   2-12  sufficient to pay the amounts needed or estimated to be needed
   2-13  under <provided by> Subdivisions (1) through (4) <and (2)>, to be
   2-14  transferred to the unobligated portion of the general revenue fund,
   2-15  on or before the 15th day of each month.
   2-16        SECTION 3.  Subchapter H, Chapter 466, Government Code, is
   2-17  amended by adding Section 466.3551 to read as follows:
   2-18        Sec. 466.3551.  TRANSFER OF REVENUE TO FOUNDATION SCHOOL
   2-19  FUND.  Not later than the 10th day of each month, the commission
   2-20  shall certify to the comptroller the net revenue received in the
   2-21  preceding month from each lottery game created under Section
   2-22  466.026.  Not later than the 15th day of each month, the
   2-23  comptroller shall transfer the amount certified under this section
   2-24  to the foundation school fund.
   2-25        SECTION 4.  Section 466.356, Government Code, is repealed.
   2-26        SECTION 5.  (a)  In addition to the changes in law made by
   2-27  this Act relating to the dedication of lottery revenue to the
    3-1  foundation school fund, this Act conforms the provisions of the
    3-2  Government Code regarding the use of lottery revenue to changes in
    3-3  law made by Sections 1 and 2, Chapter 25, and Sections 27 and 28,
    3-4  Chapter 284, Acts of the 73rd Legislature, Regular Session, 1993.
    3-5        (b)  Sections 1 and 2, Chapter 25, and Sections 27 and 28,
    3-6  Chapter 284, Acts of the 73rd Legislature, Regular Session, 1993,
    3-7  are repealed.
    3-8        (c)  To the extent of any conflict, this Act prevails over
    3-9  another Act of the 74th Legislature, Regular Session, 1995,
   3-10  relating to nonsubstantive additions to and corrections in enacted
   3-11  codes.
   3-12        (d)  In addition to amounts previously appropriated for the
   3-13  current fiscal biennium, the net revenue from each lottery game
   3-14  created under Section 466.026, Government Code, as added by this
   3-15  Act, is appropriated, for the period ending August 31, 1997, to the
   3-16  Central Education Agency for formula funding to school districts
   3-17  under Chapter 16, Education Code.
   3-18        SECTION 6.  Section 466.355, Government Code, as amended by
   3-19  this Act, applies only to revenue from the sale of a lottery ticket
   3-20  that occurs on or after the effective date of this Act.  Revenue
   3-21  from the sale of a lottery ticket that occurs before the effective
   3-22  date of this Act is governed by the law in effect on the date of
   3-23  the sale, and the former law is continued in effect for that
   3-24  purpose.
   3-25        SECTION 7.  This Act takes effect September 1, 1995.
   3-26        SECTION 8.  The importance of this legislation and the
   3-27  crowded condition of the calendars in both houses create an
    4-1  emergency and an imperative public necessity that the
    4-2  constitutional rule requiring bills to be read on three several
    4-3  days in each house be suspended, and this rule is hereby suspended.