1-1           By:  Nixon                                       S.B. No. 237

 1-2           (In the Senate - Filed January 17, 1997; January 21, 1997,

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

 1-4     February 24, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 11, Nays 1; February 24, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Ellis

 1-7     Amend S.B. No. 237, Section 466.355(b)(4) and (5) to read as

 1-8     follows and renumbering the existing sections accordingly:

 1-9                 (4)  the transfer to the foundation school fund of an

1-10     amount equal to 95 percent of the savings resulting from any

1-11     competitive bidding of contracts awarded under Section 466.014(b);

1-12                 (5)  the transfer to the Texas Workforce Commission for

1-13     community-based adult literacy programs of an amount equal to five

1-14     percent of the savings resulting from any competitive bidding of

1-15     contracts awarded under Section 466.014(b); and

1-16                            A BILL TO BE ENTITLED

1-17                                   AN ACT

1-18     relating to competitive bids for state lottery contracts.

1-19           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-20           SECTION 1.  Section 466.355, Government Code, is amended by

1-21     amending Subsection (b) and adding Subsection (c) to read as

1-22     follows:

1-23           (b)  Money in the state lottery account may be used only for

1-24     the following purposes and shall be distributed as follows:

1-25                 (1)  the payment of prizes to the holders of winning

1-26     tickets;

1-27                 (2)  the payment of costs incurred in the operation and

1-28     administration of the lottery, including any fees received by a

1-29     lottery operator, provided that the costs incurred in a fiscal

1-30     biennium may not exceed an amount equal to 15 percent of the gross

1-31     revenue accruing from the sale of tickets in that biennium;

1-32                 (3)  the establishment of a pooled bond fund, lottery

1-33     prize reserve fund, unclaimed prize fund, and prize payment

1-34     account; [and]

1-35                 (4)  the transfer to the foundation school fund of an

1-36     amount equal to the savings resulting from any competitive bidding

1-37     of contracts awarded under Section 466.014(b); and

1-38                 (5)  the balance, after creation of a reserve

1-39     sufficient to pay the amounts needed or estimated to be needed

1-40     under Subdivisions (1) through (4) [(3)], to be transferred to the

1-41     unobligated portion of the general revenue fund, on or before the

1-42     15th day of each month.

1-43           (c)  For the purposes of Subsection (b), the savings

1-44     resulting from competitive bidding of a contract is the difference

1-45     between the amount contracted to be paid for the functions,

1-46     activities, or services to be provided under the contract and:

1-47                 (1)  if the functions, activities, or services have

1-48     been previously obtained, the amount that would have been paid for

1-49     the same functions, activities, or services during the period

1-50     covered by the contract if those functions, activities, or services

1-51     had been obtained in the manner they were obtained immediately

1-52     before the contract goes into effect; or

1-53                 (2)  if the functions, activities, or services have not

1-54     been previously obtained, the amount that would have been paid for

1-55     those functions, activities, or services if they had been obtained

1-56     without competitive bidding.

1-57           SECTION 2.  This Act takes effect September 1, 1997.

1-58           SECTION 3.  The importance of this legislation and the

1-59     crowded condition of the calendars in both houses create an

1-60     emergency and an imperative public necessity that the

1-61     constitutional rule requiring bills to be read on three several

1-62     days in each house be suspended, and this rule is hereby suspended.