SRC-DBM S.B. 1320 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1320
By: Ratliff
Finance
3/26/1999
As Filed


DIGEST 

Currently, the Texas Lottery Commission (commission) maintains $20 million
in a reserve account in the General Revenue Fund to cover retailers'
potential defaults.  The commission calculates the reserve amount by
assuming a worst-case scenario:  not being able to collect lottery ticket
sale revenue from its five largest retailer accounts for two consecutive
weeks.  Of the five largest state lotteries, only Texas has a current
reserve fund, and the lottery's retailer default history suggests that the
reserve amount is greatly disproportionate to the actual risk.  S.B. 1320
would limit the amount retained in the lottery pooled bond fund to $5
million with the excess being deposited to the credit of the foundation
school fund. 

PURPOSE

As proposed, S.B. 1320 limits the amount of money retained in the lottery
pooled bond fund. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.156(a), Government Code, to prohibit the
total amount retained in a pooled bond fund from exceeding $5 million. 

SECTION 2.Effective date: September 1, 1999.  Requires any amount in the
pooled bond fund in excess of $5 million on this date to be deposited to
the credit of the foundation school fund. 

SECTION 3.Emergency clause.