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.