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


Senate Research CenterS.B. 237
By: Nixon
State Affairs
2-19-97
Committee Report (Amended)


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 transferred to the General Revenue
Fund.  This bill mandates that most of the 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 95 percent of savings
resulting from any competitive bidding under Section 466.014(b).  This
bill requires that five percent of the savings to be transferred to the
Texas Workforce Commission for community-based adult literacy programs.
In addition, S.B. 327 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 95 percent of the savings resulting from any competitive bidding of
contracts awarded under Section 466.014(b).  Requires the money in the
state lottery account to be transferred to the Texas Workforce Commission
for community-based adult literacy programs of an amount equal to five
percent of the savings resulting from any competitive bidding of contracts
awarded 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.

SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Section 466.355, Government Code, to require money in
the state lottery account to be transferred to the foundation school fund
of an amount equal to 95 percent of the savings resulting from any
competitive bidding of contracts awarded under Section 466.014(b).
Requires the transfer of an amount equal to five percent of the savings to
be transferred to the Texas Workforce Commission for community-based adult
literacy programs.