Amend SB 105 by adding new sections appropriately numbered to
read as follows:
      SECTION ____.  Section 466.355, Government Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
      (b)  Money in the state lottery account may be used only for
the following purposes and shall be distributed as follows:
            (1)  the payment of prizes to the holders of winning
tickets;
            (2)  the payment of costs incurred in the operation and
administration of the lottery, including any fees received by a
lottery operator, provided that the costs incurred in a fiscal
biennium may not exceed an amount equal to 15 percent of the gross
revenue accruing from the sale of tickets in that biennium;
            (3)  the establishment of a pooled bond fund, lottery
prize reserve fund, unclaimed prize fund, and prize payment
account; and
            (4)  the balance, after creation of a reserve
sufficient to pay the amounts needed or estimated to be needed
under Subdivisions (1) through (3), to be transferred on or before
the 15th day of each month as follows:
                  (A)  the portion of the balance attributable to
the lottery game operated under Section 466.026 determined as
provided by Subsection (c) as follows:
                        (i)  80 percent to the Texas Higher
Education Coordinating Board for the purpose of funding tuition
grants as provided under Subchapter G, Chapter 56, Education Code;
and
                        (ii)  20 percent to the Texas Education
Agency to provide grants for adult literacy services.  Adult
literacy services funded by this section must be operated by a
nonprofit community-based organization approved by the agency or by
an association of literacy providers jointly led by a nonprofit
community-based organization and a Texas Education Agency
consortium.
                  (B)  the remainder of the balance to the
unobligated portion of the foundation school <general revenue>
fund<, on or before the 15th day of each month>.
      (c)  The portion of the balance of the state lottery account
attributable to the lottery game operated under Section 466.026 for
each period for which a distribution is made under Subsection (b)
is an amount equal to the revenue from the sale of tickets to the
lottery game operated under Section 466.026 for the period less an
amount calculated by multiplying the total amount deposited to the
reserve account to pay the amounts needed or estimated to be needed
for the period under Subsections (b)(1) through (3) by a fraction,
the numerator of which is the revenue from the sale of tickets to
the lottery game operated under Section 466.026 for the period and
the denominator of which is the total revenue from the sale of
tickets to all lottery games for the period.
      SECTION ____.  Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.026 to read as follows:
      Sec. 466.026.  GAME TO FUND TEXAS HOPE EDUCATION PROGRAM.
(a)  The commission shall operate a lottery game to fund the Texas
HOPE Education Program.  The program consists of the Texas Tuition
Assistance Grant Program established by Subchapter G, Chapter 56,
Education Code, adult literacy services funded by this Act, and
other educational programs as provided by law.  The commission
shall operate the game as an instant-win game and shall provide for
tickets to the game to be available for sale continuously to the
extent practicable.  The commission may vary the manner in which
the game is played or conducted as the commission determines
appropriate.
      (b)  The commission shall market and advertise the lottery
game operated under this section in a manner intended to inform the
general public that tickets to the game are available for purchase
and that the net proceeds from the game are used to fund
educational programs in this state.  The commission shall consider
any recommendations made by the Texas Higher Education Coordinating
Board and the Texas Education Agency relating to the marketing and
advertising of the game.
      (c)  The commission shall encourage each ticket sales agent
that sells tickets to instant-win or similar types of lottery games
to sell tickets to the lottery game operated under this section.
      (d)  The commission may not operate, market, or advertise any
other lottery game to fund or support a specific program or
purpose.
      SECTION ____.  Section 481.026, Government Code, is repealed.
      SECTION ____.  (a)  This Act takes effect September 1, 1997.
      (b)  The change in law made by this Act to Section
466.355(b), Government Code, applies only to a transfer from the
state lottery account made on or after the effective date of this
Act.
      (c)  The Texas Lottery Commission shall establish and begin
selling tickets to the lottery game required by Section 466.026,
Government Code, as added by this Act, not later than January 1,
1998.
      (d)  The Texas Higher Education Coordinating Board shall make
grants under the Texas Tuition Scholarship Program beginning with
the 1998 fall semester.
ELLIS
WENTWORTH
WEST