SRC-HRD S.B. 237 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 237
By: Nixon
State Affairs
01-22-97
As Filed


DIGEST 

When the lottery was first proposed, many people believed that revenue
from the lottery would be used to fund education.  Currently, excess
proceeds from lottery operations are transfered to the General Revenue
Fund.  This bill mandates that any savings resulting from the competitive
bid of a lottery contract be allocated to the School Foundation Fund to be
used to supplement education financing. 

PURPOSE

As proposed, S.B. 237 requires the money in the state lottery account to
be used only for specific purposes, including the transfer to the
foundation school fund of an amount equal to savings resulting from any
competitive bidding under Section 466.014(b), and sets forth the formula
for determining savings. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.355, Government Code, by amending Section
(b) and adding Section (c), to require the money in the state lottery
account to be transferred to the foundation school fund of an amount equal
to the savings resulting from any competitive bidding of contracts under
Section 466.014(b).  Sets forth the formula for determining savings under
Subsection (b). Makes conforming changes. 

SECTION 2.  Effective date:  September 1, 1997.

SECTION 3.  Emergency clause.