By Pitts                                                H.B. No. 47
         76R269 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to unclaimed lottery prizes.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 466.355(b), Government Code, is amended
 1-5     to read as follows:
 1-6           (b)  Money in the state lottery account may be used only for
 1-7     the following purposes and shall be distributed as follows:
 1-8                 (1)  the payment of prizes to the holders of winning
 1-9     tickets;
1-10                 (2)  the payment of unclaimed prize money to the
1-11     general revenue fund as provided by Section 466.408;
1-12                 (3) [(2)]  the payment of costs incurred in the
1-13     operation and administration of the lottery, including any fees
1-14     received by a lottery operator, provided that the costs incurred in
1-15     a fiscal biennium may not exceed an amount equal to 12 percent of
1-16     the gross revenue accruing from the sale of tickets in that
1-17     biennium;
1-18                 (4) [(3)]  the establishment of a pooled bond fund,
1-19     lottery prize reserve fund, unclaimed prize fund, and prize payment
1-20     account; and
1-21                 (5) [(4)]  the balance, after creation of a reserve
1-22     sufficient to pay the amounts needed or estimated to be needed
1-23     under Subdivisions (1) through (4) [(3)], to be transferred to the
1-24     foundation school fund, on or before the 15th day of each month.
 2-1           SECTION 2.  Sections 466.408(b) and (c), Government Code, are
 2-2     amended to read as follows:
 2-3           (b)  If a claim is not made for prize money on or before the
 2-4     180th day after the date on which the winner was selected, the
 2-5     prize money shall be deposited in the unobligated portion of the
 2-6     general revenue fund [used to provide additional money to the
 2-7     state lottery account for the purposes prescribed by Section
 2-8     466.355(b)(1)].
 2-9           (c)  If a claim is not made for a prize other than prize
2-10     money on or before the 180th day after the date on which the winner
2-11     was selected, the prize shall be sold at the end of the fiscal year
2-12     by competitive bid or auction under the provisions of Subchapter D,
2-13     Chapter 2175, and, notwithstanding Section 2175.185(a), the
2-14     proceeds shall be deposited in the unobligated portion of the
2-15     general revenue fund [the prize shall revert to the division for
2-16     use in subsequent games].
2-17           SECTION 3.  This Act takes effect September 1, 1999, and
2-18     applies only to a prize for which the winner is selected on or
2-19     after September 1, 1999.  A prize for which the winner was selected
2-20     before September 1, 1999, is governed by the law as it existed
2-21     immediately before the effective date of this Act, and that law is
2-22     continued in effect for that purpose.
2-23           SECTION 4.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
2-26     constitutional rule requiring bills to be read on three several
2-27     days in each house be suspended, and this rule is hereby suspended.