By Wentworth                                    S.B. No. 1093

      75R7735 JSA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of state lottery revenue to fund the Texas

 1-3     tuition assistance grant program.


 1-5           SECTION 1.  Section 56.108, Education Code, is amended to

 1-6     read as follows:

 1-7           Sec. 56.108.  FUNDING.  (a)  Texas tuition assistance grants

 1-8     are payable from:

 1-9                 (1)  state lottery revenues dedicated for that purpose

1-10     by Section 466.355, Government Code;

1-11                 (2)  gifts and grants; and

1-12                 (3)  other funds appropriated by the legislature for

1-13     that purpose.

1-14           (b)  The coordinating board may accept gifts and grants from

1-15     any public or private source for the purposes of this subchapter.

1-16           [(b)  Texas tuition assistance grants are payable from gifts,

1-17     grants, and funds appropriated by the legislature.]

1-18           SECTION 2.  Section 466.355(b), Government Code, is amended

1-19     to read as follows:

1-20           (b)  Money in the state lottery account may be used only for

1-21     the following purposes and shall be distributed as follows:

1-22                 (1)  the payment of prizes to the holders of winning

1-23     tickets;

1-24                 (2)  the payment of costs incurred in the operation and

 2-1     administration of the lottery, including any fees received by a

 2-2     lottery operator, provided that the costs incurred in a fiscal

 2-3     biennium may not exceed an amount equal to 15 percent of the gross

 2-4     revenue accruing from the sale of tickets in that biennium;

 2-5                 (3)  the establishment of a pooled bond fund, lottery

 2-6     prize reserve fund, unclaimed prize fund, and prize payment

 2-7     account; and

 2-8                 (4)  the balance, after creation of a reserve

 2-9     sufficient to pay the amounts needed or estimated to be needed

2-10     under Subdivisions (1) through (3), to be transferred on or before

2-11     the 15th day of each month as follows:

2-12                       (A)  five percent to the credit of a special

2-13     account in the general revenue fund to be used to fund tuition

2-14     assistance grants under Subchapter G, Chapter 55, Education Code;

2-15     and

2-16                       (B)  the remainder to the unobligated portion of

2-17     the general revenue fund[, on or before the 15th day of  each

2-18     month].

2-19           SECTION 3.  (a) This Act takes effect September 1, 1997.

2-20           (b)  State lottery revenue shall be transferred to the

2-21     special account for funding tuition assistance grants beginning

2-22     with the transfers made under Section 466.355(b), Government Code,

2-23     as amended by this Act, in the month in which this Act takes

2-24     effect.

2-25           SECTION 4.  The importance of this legislation and the

2-26     crowded condition of the calendars in both houses create an

2-27     emergency and an imperative public necessity that the

 3-1     constitutional rule requiring bills to be read on three several

 3-2     days in each house be suspended, and this rule is hereby suspended.