Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Dunnam H.B. No. 3034
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reimbursement to municipalities of certain lottery
1-3 revenue.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 466.004(a), Government Code, is amended
1-6 to read as follows:
1-7 (a) Except as provided by Section 466.3515, a [A] political
1-8 subdivision of this state may not impose:
1-9 (1) a tax on the sale of a ticket;
1-10 (2) a tax on the payment of a prize under this
1-11 chapter; or
1-12 (3) an ad valorem tax on tickets.
1-13 SECTION 2. Section 466.351, Government Code, is amended to
1-14 read as follows:
1-15 Sec. 466.351. Delivery of Funds. (a) Except as provided by
1-16 Subsection (d) and Section 466.3515, all revenue received from the
1-17 sale of tickets and all money credited to the state lottery account
1-18 from any other source shall be deposited in the state treasury
1-19 through approved state depositories on the settlement day or days
1-20 established by the director.
1-21 (b) [The director may require sales agents to establish
1-22 separate electronic funds transfer accounts for the purposes of
1-23 depositing money from ticket sales, making payments to the
1-24 division, and receiving payments from the division.] The
2-1 commission by rule shall establish the procedures for depositing
2-2 money from ticket sales into electronic funds transfer accounts, as
2-3 well as other procedures regarding the handling of money from
2-4 ticket sales. The director may require sales agents to establish
2-5 separate electronic funds transfer accounts for the purposes of:
2-6 (1) depositing gross revenue from ticket sales as
2-7 required by Section 466.3515;
2-8 (2) depositing other money from ticket sales;
2-9 (3) making payments to the division; and
2-10 (4) receiving payments from the division.
2-11 (c) The director may not permit a sales agent to make
2-12 payments to the division or a lottery operator in cash.
2-13 (d) The director may provide for a sales agent to retain
2-14 from the money received from the sale of tickets the amount of
2-15 prizes paid by the agent or the agent's commission, if any, and may
2-16 establish how often the agent will make settlement payments to the
2-17 treasury. Money retained by a sales agent does not reduce the
2-18 money received by a municipality under Section 466.3515.
2-19 (e) The director may provide for a sales agent to pay
2-20 amounts received for the sale of tickets directly to an officer or
2-21 employee of the division for immediate deposit in the state
2-22 treasury.
2-23 SECTION 3. Subchapter H, Chapter 466, Government Code, is
2-24 amended by adding Sections 466.3515 and 466.3516 to read as
2-25 follows:
2-26 Sec. 466.3515. MUNICIPAL LOTTERY REVENUE. (a) The director
2-27 shall transfer to a municipality an amount equal to the sum of the
2-28 rates of sales tax imposed by the municipality under Section
2-29 321.103, Tax Code, multiplied by the amount collected from the sale
2-30 of tickets by an agency located in the municipality if the
3-1 municipality has taken the necessary actions under Section 466.3516
3-2 to enable the municipality to receive the money.
3-3 (b) The director shall determine the municipality in which
3-4 each sales agency is located.
3-5 (c) A sales agent shall report to the director a change of
3-6 location of the sales agency.
3-7 (d) A municipality shall notify the director regarding a
3-8 boundary change of the municipality.
3-9 (e) The director may transfer to the state lottery account
3-10 any revenue from tickets sold in a municipality during a period in
3-11 which the municipality fails to comply with the requirements of
3-12 this chapter or a commission rule.
3-13 (f) The commission shall adopt rules necessary for the
3-14 proper accounting and safeguarding of revenue transferred under
3-15 this section.
3-16 Sec. 466.3516. LOTTERY REVENUE OF A MUNICIPALITY. (a)
3-17 Before a municipality may receive lottery revenue as provided by
3-18 Section 466.3515, the governing body of the municipality must:
3-19 (1) provide written notice to the lottery director to
3-20 deposit, by use of electronic funds transfer, the appropriate
3-21 amount of lottery revenue into an account of the municipality;
3-22 (2) establish an electronic funds transfer account
3-23 into which the lottery director may deposit the lottery revenue;
3-24 and
3-25 (3) comply with any rule established by the Texas
3-26 Lottery Commission relating to the collection or receipt of lottery
3-27 revenue.
3-28 (b) A municipality may use lottery revenue provided under
3-29 Section 466.3515 for any public purpose.
3-30 SECTION 4. Section 466.355, Government Code, is amended to
4-1 read as follows:
4-2 Sec. 466.355. STATE LOTTERY ACCOUNT. (a) The state lottery
4-3 account is a special account in the general revenue fund. The
4-4 account consists of all revenue received from the sale of tickets
4-5 less the amount transferred to a municipality as provided by
4-6 Section 466.3515, license and application fees under this chapter,
4-7 and all money credited to the account from any other fund or source
4-8 under law. Interest earned by the state lottery account shall be
4-9 deposited in the unobligated portion of the general revenue fund.
4-10 (b) Money in the state lottery account may be used only for
4-11 the following purposes and shall be distributed as follows:
4-12 (1) the payment of prizes to the holders of winning
4-13 tickets;
4-14 (2) the payment of costs incurred in the operation and
4-15 administration of the lottery, including any fees received by a
4-16 lottery operator, provided that the costs incurred in a fiscal
4-17 biennium may not exceed an amount equal to 15 percent of the gross
4-18 revenue accruing from the sale of tickets in that biennium less the
4-19 total amount transferred in that biennium to the municipalities of
4-20 this state under Section 466.3515;
4-21 (3) the establishment of a pooled bond fund, lottery
4-22 prize reserve fund, unclaimed prize fund, and prize payment
4-23 account; and
4-24 (4) the balance, after creation of a reserve
4-25 sufficient to pay the amounts needed or estimated to be needed
4-26 under Subdivisions (1) through (3), to be transferred to the
4-27 unobligated portion of the general revenue fund, on or before the
4-28 15th day of each month.
4-29 SECTION 5. (a) This Act takes effect September 1, 1997, and
4-30 applies to a lottery ticket that is purchased on or after January
5-1 1, 1998. A lottery ticket that is purchased on or after September
5-2 1, 1997, and before January 1, 1998, is governed by the law as it
5-3 existed immediately before September 1, 1997, and that law is
5-4 continued in effect for that purpose.
5-5 (b) The Texas Lottery Commission shall establish rules
5-6 relating to the collection and distribution of lottery revenue to a
5-7 municipality, as required by this Act, not later than November 1,
5-8 1997.
5-9 SECTION 6. The importance of this legislation and the
5-10 crowded condition of the calendars in both houses create an
5-11 emergency and an imperative public necessity that the
5-12 constitutional rule requiring bills to be read on three several
5-13 days in each house be suspended, and this rule is hereby suspended.