By Wentworth                                           S.B. No. 506
       74R5164 MWV-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the dedication of net lottery revenues to the
    1-3  foundation school fund and general revenue fund.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 466.355(b), Government Code, is amended
    1-6  to read as follows:
    1-7        (b)  Money in the state lottery account may be used only for
    1-8  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 establishment of a pooled bond fund, lottery
   1-17  prize reserve fund, unclaimed prize fund, and prize payment account
   1-18  <transfer of amounts to the state lottery stabilization fund as
   1-19  provided by Section 466.356>; and
   1-20              (4)  the  balance, after creation of a reserve
   1-21  sufficient to pay the amounts needed or estimated to be needed
   1-22  under <provided by> Subdivisions (1) through (3) <and (2)>, to be
   1-23  transferred on or before the 15th day of each month as follows:
   1-24                    (A)  20 percent of the balance to the unobligated
    2-1  portion of the general revenue fund; and
    2-2                    (B)  80 percent of the balance to the foundation
    2-3  school fund <, on or before the 15th day of each month>.
    2-4        SECTION 2.  Section 466.356, Government Code, is repealed.
    2-5        SECTION 3.  (a)  In addition to the changes in law made by
    2-6  this Act relating to the dedication of lottery revenue to the
    2-7  foundation school fund, this Act conforms the Government Code
    2-8  provisions regarding the use of lottery revenue to the changes in
    2-9  law made by Sections 1 and 2 of Chapter 25 and Section 27 of
   2-10  Chapter 284, Acts of the 73rd Legislature, Regular Session, 1993.
   2-11        (b)  Sections 1 and 2 of Chapter 25 and Section 27 of Chapter
   2-12  284, Acts of the 73rd Legislature, Regular Session, 1993, are
   2-13  repealed.
   2-14        (c)  To the extent of any conflict, this Act prevails over
   2-15  another Act of the 74th Legislature, Regular Session, 1995,
   2-16  relating to nonsubstantive additions to and corrections in enacted
   2-17  codes.
   2-18        SECTION 4.  This Act takes effect September 1, 1995.
   2-19        SECTION 5.  Section 466.355(b), Government Code, as amended
   2-20  by this Act, applies only to revenue from the sale of a lottery
   2-21  ticket that occurs on or after the effective date of this Act.
   2-22  Revenue from the sale of a lottery ticket that occurs before the
   2-23  effective date of this Act is governed by the law in effect on the
   2-24  date of the sale, and the former law is continued in effect for
   2-25  that purpose.
   2-26        SECTION 6.  The importance of this legislation and the
   2-27  crowded condition of the calendars in both houses create an
    3-1  emergency and an imperative public necessity that the
    3-2  constitutional rule requiring bills to be read on three several
    3-3  days in each house be suspended, and this rule is hereby suspended.