By: Nelson, West S.B. No. 105
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the dedication of revenue derived from the state
1-2 lottery for certain educational purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 466.355, Government Code, is amended by
1-5 amending Subsection (b) and adding Subsection (c) to read as
1-6 follows:
1-7 (b) Money in the state lottery account may be used only for
1-8 the following purposes and shall be distributed as follows:
1-9 (1) the payment of prizes to the holders of winning
1-10 tickets;
1-11 (2) the payment of costs incurred in the operation and
1-12 administration of the lottery, including any fees received by a
1-13 lottery operator, provided that the costs incurred in a fiscal
1-14 biennium may not exceed an amount equal to 15 percent of the gross
1-15 revenue accruing from the sale of tickets in that biennium;
1-16 (3) the establishment of a pooled bond fund, lottery
1-17 prize reserve fund, unclaimed prize fund, and prize payment
1-18 account; [and]
1-19 (4) the director shall adopt rules necessary to allow
1-20 a county or municipality to retain five percent of the money
1-21 collected from the sale of tickets by a sales agency located within
1-22 the revenue area of a county or municipality. The revenue area of
1-23 a county does not include the area within the boundaries of a
2-1 municipality. This subdivision takes effect September 1, 2001; and
2-2 (5) the balance, after creation of a reserve
2-3 sufficient to pay the amounts needed or estimated to be needed
2-4 under Subdivisions (1) through (4) [(3)], to be transferred on or
2-5 before the 15th day of each month as follows:
2-6 (A) the portion of the balance attributable to
2-7 the lottery game operated under Section 466.026 determined as
2-8 provided by Subsection (c) as follows:
2-9 (i) 80 percent to the Texas Higher
2-10 Education Coordinating Board for the purpose of funding tuition
2-11 grants as provided under Subchapter G, Chapter 56, Education Code;
2-12 and
2-13 (ii) 20 percent to the Texas Education
2-14 Agency to provide grants for adult literacy services. Adult
2-15 literacy services funded by this section must be operated by a
2-16 nonprofit community-based organization approved by the agency or by
2-17 an association of literacy providers jointly led by a nonprofit
2-18 community-based organization and a Texas Education Agency
2-19 consortium.
2-20 (B) the remainder of the balance to the
2-21 unobligated portion of the foundation school [general revenue]
2-22 fund[, on or before the 15th day of each month].
2-23 (c) The portion of the balance of the state lottery account
2-24 attributable to the lottery game operated under Section 466.026 for
2-25 each period for which a distribution is made under Subsection (b)
3-1 is an amount equal to the revenue from the sale of tickets to the
3-2 lottery game operated under Section 466.026 for the period less an
3-3 amount calculated by multiplying the total amount deposited to the
3-4 reserve account to pay the amounts needed or estimated to be needed
3-5 for the period under Subsections (b)(1) through (4) by a fraction,
3-6 the numerator of which is the revenue from the sale of tickets to
3-7 the lottery game operated under Section 466.026 for the period and
3-8 the denominator of which is the total revenue from the sale of
3-9 tickets to all lottery games for the period.
3-10 SECTION 2. Subchapter B, Chapter 466, Government Code, is
3-11 amended by adding Section 466.026 to read as follows:
3-12 Sec. 466.026. GAME TO FUND TEXAS HOPE EDUCATION PROGRAM.
3-13 (a) The commission shall operate a lottery game to fund the Texas
3-14 HOPE Education Program. The program consists of the Texas tuition
3-15 assistance grant program established by Subchapter G, Chapter 56,
3-16 Education Code, adult literacy services funded by this chapter, and
3-17 other educational programs as provided by law. The commission
3-18 shall operate the game as an instant-win game and shall provide for
3-19 tickets to the game to be available for sale continuously to the
3-20 extent practicable. The commission may vary the manner in which
3-21 the game is played or conducted as the commission determines
3-22 appropriate.
3-23 (b) The commission shall market and advertise the lottery
3-24 game operated under this section in a manner intended to inform the
3-25 general public that tickets to the game are available for purchase
4-1 and that the net proceeds from the game are used to fund
4-2 educational programs in this state. The commission shall consider
4-3 any recommendations made by the Texas Higher Education Coordinating
4-4 Board and the Texas Education Agency relating to the marketing and
4-5 advertising of the game.
4-6 (c) The commission shall encourage each ticket sales agent
4-7 that sells tickets to instant-win or similar types of lottery games
4-8 to sell tickets to the lottery game operated under this section.
4-9 (d) The commission may not operate, market, or advertise any
4-10 other lottery game to fund or support a specific program or
4-11 purpose.
4-12 SECTION 3. Section 481.026, Government Code, is repealed.
4-13 SECTION 4. (a) This Act takes effect September 1, 1997.
4-14 (b) The change in law made by this Act to Subsection (b),
4-15 Section 466.355, Government Code, applies only to a transfer from
4-16 the state lottery account made on or after the effective date of
4-17 this Act.
4-18 (c) The Texas Lottery Commission shall establish and begin
4-19 selling tickets to the lottery game required by Section 466.026,
4-20 Government Code, as added by this Act, not later than January 1,
4-21 1998.
4-22 (d) The Texas Higher Education Coordinating Board shall make
4-23 grants under the Texas tuition scholarship program beginning with
4-24 the 1998 fall semester.
4-25 SECTION 5. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended.