By Nixon S.B. No. 237
75R1330 BEM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to competitive bids for state lottery contracts.
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;
1-19 (4) the transfer to the foundation school fund of an
1-20 amount equal to the savings resulting from any competitive bidding
1-21 of contracts awarded under Section 466.014(b); and
1-22 (5) [(4)] the balance, after creation of a reserve
1-23 sufficient to pay the amounts needed or estimated to be needed
1-24 under Subdivisions (1) through (4) [(3)], to be transferred to the
2-1 unobligated portion of the general revenue fund, on or before the
2-2 15th day of each month.
2-3 (c) For the purposes of Subsection (b), the savings
2-4 resulting from competitive bidding of a contract is the difference
2-5 between the amount contracted to be paid for the functions,
2-6 activities, or services to be provided under the contract and:
2-7 (1) if the functions, activities, or services have
2-8 been previously obtained, the amount that would have been paid for
2-9 the same functions, activities, or services during the period
2-10 covered by the contract if those functions, activities, or services
2-11 had been obtained in the manner they were obtained immediately
2-12 before the contract goes into effect; or
2-13 (2) if the functions, activities, or services have not
2-14 been previously obtained, the amount that would have been paid for
2-15 those functions, activities, or services if they had been obtained
2-16 without competitive bidding.
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.