By: Nixon S.B. No. 237
A BILL TO BE ENTITLED
AN ACT
1-1 relating to competitive bids for state lottery contracts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 466.355, Government Code, is amended by
1-4 amending Subsection (b) and adding Subsection (c) to read as
1-5 follows:
1-6 (b) Money in the state lottery account may be used only for
1-7 the following purposes and shall be distributed as follows:
1-8 (1) the payment of prizes to the holders of winning
1-9 tickets;
1-10 (2) the payment of costs incurred in the operation and
1-11 administration of the lottery, including any fees received by a
1-12 lottery operator, provided that the costs incurred in a fiscal
1-13 biennium may not exceed an amount equal to 15 percent of the gross
1-14 revenue accruing from the sale of tickets in that biennium;
1-15 (3) the establishment of a pooled bond fund, lottery
1-16 prize reserve fund, unclaimed prize fund, and prize payment
1-17 account; [and]
1-18 (4) the transfer to the foundation school fund of an
1-19 amount equal to 95 percent of the savings resulting from any
1-20 competitive bidding of contracts awarded under Section 466.014(b);
1-21 (5) the transfer to the Texas Workforce Commission for
1-22 community-based adult literacy programs of an amount equal to five
1-23 percent of the savings resulting from any competitive bidding of
2-1 contracts awarded under Section 466.014(b); and
2-2 (6) 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 (5) [(3)], to be transferred to the
2-5 unobligated portion of the general revenue fund, on or before the
2-6 15th day of each month.
2-7 (c) For the purposes of Subsection (b), the savings
2-8 resulting from competitive bidding of a contract is the difference
2-9 between the amount contracted to be paid for the functions,
2-10 activities, or services to be provided under the contract and if
2-11 the functions, activities, or services have been previously
2-12 obtained, the amount that would have been paid for the same
2-13 functions, activities, or services during the period covered by the
2-14 contract if those functions, activities, or services had been
2-15 obtained in the manner they were obtained immediately before the
2-16 contract goes into effect.
2-17 SECTION 2. This Act takes effect September 1, 1997.
2-18 SECTION 3. The importance of this legislation and the
2-19 crowded condition of the calendars in both houses create an
2-20 emergency and an imperative public necessity that the
2-21 constitutional rule requiring bills to be read on three several
2-22 days in each house be suspended, and this rule is hereby suspended.