1-1                                   AN ACT
 1-2     relating to the total amount of state lottery prizes that may be
 1-3     awarded in a fiscal year.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 466.015(c), Government Code, is amended
 1-6     to read as follows:
 1-7           (c)  The commission may adopt rules governing the
 1-8     establishment and operation of the lottery, including rules
 1-9     governing:
1-10                 (1)  the type of lottery games to be conducted;
1-11                 (2)  the price of each ticket;
1-12                 (3)  the number of winning tickets and amount of the
1-13     prize paid on each winning ticket[, except that the total amount of
1-14     prizes awarded under this chapter may not exceed the amount
1-15     described in Subsection (d)];
1-16                 (4)  the frequency of the drawing or selection of a
1-17     winning ticket;
1-18                 (5)  the number and types of locations at which a
1-19     ticket may be sold;
1-20                 (6)  the method to be used in selling a ticket;
1-21                 (7)  the use of vending machines or electronic or
1-22     mechanical devices of any kind, other than machines or devices that
1-23     dispense currency or coins as prizes;
1-24                 (8)  the manner of paying a prize to the holder of a
 2-1     winning ticket;
 2-2                 (9)  the investigation of possible violations of this
 2-3     chapter or any rule adopted under this chapter;
 2-4                 (10)  the means of advertising to be used for the
 2-5     lottery;
 2-6                 (11)  the qualifications of vendors of lottery services
 2-7     or equipment;
 2-8                 (12)  the confidentiality of information relating to
 2-9     the operation of the lottery, including:
2-10                       (A)  trade secrets;
2-11                       (B)  security measures, systems, or procedures;
2-12                       (C)  security reports;
2-13                       (D)  bids or other information regarding the
2-14     commission's contracts, if disclosure of the information would
2-15     impair the commission's ability to contract for facilities, goods,
2-16     or services on terms favorable to the commission;
2-17                       (E)  personnel information unrelated to
2-18     compensation, duties, qualifications, or responsibilities; and
2-19                       (F)  information obtained by commission security
2-20     officers or investigators;
2-21                 (13)  the development and availability of a model
2-22     agreement governing the division of a prize among multiple
2-23     purchasers of a winning ticket purchased through a group purchase
2-24     or pooling arrangement;
2-25                 (14)  the criteria to be used in evaluating bids for
2-26     contracts for lottery facilities, goods, and services; or
2-27                 (15)  any other matter necessary or desirable as
 3-1     determined by the commission, to promote and ensure:
 3-2                       (A)  the integrity, security, honesty, and
 3-3     fairness of the operation and administration of the lottery; and
 3-4                       (B)  the convenience of players and holders of
 3-5     winning tickets.
 3-6           SECTION 2.  Section 466.015, Government Code, is amended by
 3-7     amending Subsection (d) and adding Subsection (e) to read as
 3-8     follows:
 3-9           (d)  If the [The] total amount of lottery prizes awarded by
3-10     [that] the commission [may award for all lottery games] in any
3-11     state fiscal year after the fiscal year ending August 31, 2000,
3-12     exceeds [may not exceed] an amount equal to 52 percent of the gross
3-13     revenue from the sale of tickets in that fiscal year [multiplied by
3-14     the percentage amount of lottery prizes awarded for all lottery
3-15     games in fiscal year 1997] as determined by the comptroller,  the
3-16     advertising budget for the lottery in the next state fiscal year
3-17     may not exceed an amount equal to $40 million less $1 million for
3-18     each full percent by which the total amount of lottery prizes
3-19     awarded by the commission in the preceding fiscal year exceeds an
3-20     amount equal to 52 percent of the gross revenue from the sale of
3-21     tickets in that preceding fiscal year as determined by the
3-22     comptroller [minus an amount equal to five percent of gross lottery
3-23     revenue for the fiscal year in which the prizes are being awarded].
3-24           (e)  If the total amount of the lottery prizes awarded by the
3-25     commission in the state fiscal year ending August 31, 2000, exceeds
3-26     an amount equal to 57 percent of the gross revenue from the sale of
3-27     tickets in that fiscal year as determined by the comptroller, the
 4-1     advertising budget for the lottery in the state fiscal year ending
 4-2     August 31, 2001, may not exceed an amount equal to $40 million less
 4-3     $1 million for each full percent by which the total amount of
 4-4     lottery prizes awarded by the commission in the fiscal year ending
 4-5     August 31, 2000, exceeds an amount equal to 57 percent of the gross
 4-6     revenue from the sale of tickets in that fiscal year as determined
 4-7     by the comptroller.  This subsection expires January 1, 2002.
 4-8           SECTION 3.  The importance of this legislation and the
 4-9     crowded condition of the calendars in both houses create an
4-10     emergency and an imperative public necessity that the
4-11     constitutional rule requiring bills to be read on three several
4-12     days in each house be suspended, and this rule is hereby suspended,
4-13     and that this Act take effect and be in force from and after its
4-14     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 844 was passed by the House on April
         15, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 844 on May 6, 1999, and requested the
         appointment of a conference committee to consider the differences
         between the two houses; and that the House adopted the conference
         committee report on H.B. No. 844 on May 30, 1999, by the following
         vote:  Yeas 138, Nays 2, 3 present, not voting; and that the House
         adopted H.C.R. No. 320 authorizing certain corrections in H.B. No.
         844 on May 31, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 844 was passed by the Senate, with
         amendments, on May 3, 1999, by the following vote:  Yeas 30, Nays
         0; at the request of the House, the Senate appointed a conference
         committee to consider the differences between the two houses; and
         that the Senate adopted the conference committee report on H.B. No.
         844 on May 30, 1999, by the following vote:  Yeas 30, Nays 0; and
         that the Senate adopted H.C.R. No. 320 authorizing certain
         corrections in H.B. No. 844 on May 31, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor