By Haywood S.B. No. 76
75R1453 MWV-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the dedication of certain lottery revenue for the use
1-3 of local governments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 466.002, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 466.002. Definitions. In this chapter:
1-8 (1) "Commission" means the Texas Lottery Commission.
1-9 (2) "Director" means the director of the division.
1-10 (3) "Division" means the lottery division established
1-11 by the commission under Chapter 467.
1-12 (4) "Executive director" means the executive director
1-13 of the commission.
1-14 (5) "Local government" means a county or a
1-15 municipality.
1-16 (6) "Lottery" means the procedures operated by the
1-17 state under this chapter through which prizes are awarded or
1-18 distributed by chance among persons who have paid, or
1-19 unconditionally agreed to pay, for a chance or other opportunity to
1-20 receive a prize.
1-21 (7) [(6)] "Lottery game" includes a lottery activity.
1-22 (8) [(7)] "Lottery operator" means a person selected
1-23 under Section 466.014(b) to operate a lottery.
1-24 (9) "Lottery revenue area" means:
2-1 (A) for a county, all the area of the county
2-2 except the area within the boundaries of a municipality; and
2-3 (B) for a municipality, the area within the
2-4 boundaries of the municipality, and does not include any area in
2-5 the municipality's extraterritorial jurisdiction.
2-6 (10) [(8)] "Player" means a person who contributes any
2-7 part of the consideration for a ticket.
2-8 (11) [(9)] "Sales agent" or "sales agency" means a
2-9 person licensed under this chapter to sell tickets.
2-10 (12) [(10)] "Ticket" means any tangible evidence
2-11 issued to provide participation in a lottery game authorized by
2-12 this chapter.
2-13 SECTION 2. Section 466.004, Government Code, is amended by
2-14 adding Subsection (c) to read as follows:
2-15 (c) Revenue received by a local government as provided by
2-16 Section 466.351 is not tax revenue.
2-17 SECTION 3. Section 466.351, Government Code, is amended to
2-18 read as follows:
2-19 Sec. 466.351. Delivery of Funds. (a) Except as provided by
2-20 Subsection (d) and Section 466.3515, all revenue received from the
2-21 sale of tickets and all money credited to the state lottery account
2-22 from any other source shall be deposited in the state treasury
2-23 through approved state depositories on the settlement day or days
2-24 established by the director.
2-25 (b) [The director may require sales agents to establish
2-26 separate electronic funds transfer accounts for the purposes of
2-27 depositing money from ticket sales, making payments to the
3-1 division, and receiving payments from the division.] The
3-2 commission by rule shall establish the procedures for depositing
3-3 money from ticket sales into electronic funds transfer accounts, as
3-4 well as other procedures regarding the handling of money from
3-5 ticket sales. The director may require sales agents to establish
3-6 separate electronic funds transfer accounts for the purposes of:
3-7 (1) depositing gross revenue from ticket sales as
3-8 required by Section 466.3515;
3-9 (2) depositing other money from ticket sales;
3-10 (3) making payments to the division; and
3-11 (4) receiving payments from the division.
3-12 (c) The director may not permit a sales agent to make
3-13 payments to the division or a lottery operator in cash.
3-14 (d) The director may provide for a sales agent to retain
3-15 from the money received from the sale of tickets the amount of
3-16 prizes paid by the agent or the agent's commission, if any, and may
3-17 establish how often the agent will make settlement payments to the
3-18 treasury. Money retained by a sales agent does not reduce the
3-19 money received by a local government under Section 466.3515.
3-20 (e) The director may provide for a sales agent to pay
3-21 amounts received for the sale of tickets directly to an officer or
3-22 employee of the division for immediate deposit in the state
3-23 treasury.
3-24 SECTION 4. Subchapter H, Chapter 466, Government Code, is
3-25 amended by adding Section 466.3515 to read as follows:
3-26 Sec. 466.3515. LOTTERY REVENUE AREA. (a) The director
3-27 shall transfer to a local government five percent of the money
4-1 collected from the sale of tickets by an agency located in the
4-2 lottery revenue area of the local government if the local
4-3 government has taken the necessary actions under Section 140.008,
4-4 Local Government Code, to enable the local government to receive
4-5 the money.
4-6 (b) The director shall determine the lottery revenue area in
4-7 which each sales agency is located.
4-8 (c) A sales agent shall report to the director a change of
4-9 location of the sales agency or a change of boundaries of a local
4-10 government that may cause the sales agency to change its location
4-11 from the lottery revenue area of one local government to the
4-12 lottery revenue area of a different local government.
4-13 (d) A local government shall notify the director regarding a
4-14 boundary change of the local government that may cause the lottery
4-15 revenue area of any local government to change.
4-16 (e) The director may transfer to the state lottery account
4-17 any revenue from tickets sold in a lottery revenue area of a local
4-18 government during a period in which the local government fails to
4-19 comply with the requirements of this chapter or a commission rule.
4-20 (f) The commission shall adopt rules necessary for the
4-21 proper accounting and safeguarding of revenue transferred under
4-22 this section.
4-23 SECTION 5. Section 466.355(a), Government Code, is amended
4-24 to read as follows:
4-25 (a) The state lottery account is a special account in the
4-26 general revenue fund. The account consists of all revenue received
4-27 from the sale of tickets less the amount transferred to local
5-1 governments as provided by Section 466.3515, license and
5-2 application fees under this chapter, and all money credited to the
5-3 account from any other fund or source under law. Interest earned
5-4 by the state lottery account shall be deposited in the unobligated
5-5 portion of the general revenue fund.
5-6 SECTION 6. Chapter 140, Local Government Code, is amended by
5-7 adding Section 140.008 to read as follows:
5-8 Sec. 140.008. LOTTERY REVENUE OF A LOCAL GOVERNMENT. (a)
5-9 Before a county or municipality may receive lottery revenue as
5-10 provided by Section 466.3515, Government Code, the commissioners
5-11 court of the county or the governing body of the municipality must:
5-12 (1) provide written notice to the lottery director to
5-13 deposit, by use of electronic funds transfer, the appropriate
5-14 amount of lottery revenue into an account of the county or
5-15 municipality;
5-16 (2) establish an electronic funds transfer account
5-17 into which the lottery director may deposit the lottery revenue;
5-18 and
5-19 (3) comply with any rule established by the Texas
5-20 Lottery Commission relating to the collection or receipt of lottery
5-21 revenue.
5-22 (b) A municipality may use lottery revenue provided under
5-23 Section 466.3515, Government Code, for any public purpose.
5-24 (c) A county may use lottery revenue provided under Section
5-25 466.3515, Government Code, for any public purpose for which the
5-26 general funds of the county may be used.
5-27 SECTION 7. (a) This Act takes effect September 1, 1997, and
6-1 applies to a lottery ticket that is purchased on or after January
6-2 1, 1998. A lottery ticket that is purchased on or after September
6-3 1, 1997, and before January 1, 1998, is governed by the law as it
6-4 existed immediately before September 1, 1997, and that law is
6-5 continued in effect for that purpose.
6-6 (b) The Texas Lottery Commission shall establish rules
6-7 relating to the collection and distribution of lottery revenue to
6-8 local governments, as required by this Act, not later than November
6-9 1, 1997.
6-10 SECTION 8. The importance of this legislation and the
6-11 crowded condition of the calendars in both houses create an
6-12 emergency and an imperative public necessity that the
6-13 constitutional rule requiring bills to be read on three several
6-14 days in each house be suspended, and this rule is hereby suspended.