1-1     By:  Nelson                                            S.B. No. 105

 1-2           (In the Senate - Filed November 20, 1996; January 14, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     April 28, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 11, Nays 1; April 28, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                     By:  Wentworth, Lucio

 1-7     Amend Paragraph (4) beginning on page 1, line 41, to read as

 1-8     follows:

 1-9                 "(4)  the balance, after creation of a reserve

1-10     sufficient to pay the amounts needed or estimated to be needed

1-11     under Subdivisions (1) through (3), to be transferred on or before

1-12     the 15th day of each month as follows:

1-13                       (A)  four percent of the funds set aside for

1-14     Subdivision (1) to the credit of a special account in the general

1-15     revenue fund to be used to fund tuition assistance grants under

1-16     Subchapter G, Chapter 56, Education Code;

1-17                       (B)  one percent of the balance to the Texas

1-18     Education Agency for community-based adult literacy programs; and

1-19                       (C)  the remainder to the foundation school

1-20     [unobligated portion of the general revenue] fund[, on or before

1-21     the 15th day of each month]."

1-22                            A BILL TO BE ENTITLED

1-23                                   AN ACT

1-24     relating to the dedication of revenue derived from the state

1-25     lottery to the foundation school fund.

1-26           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-27           SECTION 1.  Subsection (b), Section 466.355, Government Code,

1-28     is amended to read as follows:

1-29           (b)  Money in the state lottery account may be used only for

1-30     the following purposes and shall be distributed as follows:

1-31                 (1)  the payment of prizes to the holders of winning

1-32     tickets;

1-33                 (2)  the payment of costs incurred in the operation and

1-34     administration of the lottery, including any fees received by a

1-35     lottery operator, provided that the costs incurred in a fiscal

1-36     biennium may not exceed an amount equal to 15 percent of the gross

1-37     revenue accruing from the sale of tickets in that biennium;

1-38                 (3)  the establishment of a pooled bond fund, lottery

1-39     prize reserve fund, unclaimed prize fund, and prize payment

1-40     account; and

1-41                 (4)  the balance, after creation of a reserve

1-42     sufficient to pay the amounts needed or estimated to be needed

1-43     under Subdivisions (1) through (3), to be transferred to the

1-44     foundation school [unobligated portion of the general revenue]

1-45     fund, on or before the 15th day of each month.

1-46           SECTION 2.  This Act takes effect September 1, 1997, and

1-47     applies only to a transfer from the state lottery account made on

1-48     or after that date.

1-49           SECTION 3.  The importance of this legislation and the

1-50     crowded condition of the calendars in both houses create an

1-51     emergency and an imperative public necessity that the

1-52     constitutional rule requiring bills to be read on three several

1-53     days in each house be suspended, and this rule is hereby suspended.

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