By Ellis                                               S.B. No. 584
         76R440 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to establishing the Hope adult literacy grant program to
 1-3     be funded by revenue from a special lottery game.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 466, Government Code, is
 1-6     amended by adding Section 466.026 to read as follows:
 1-7           Sec. 466.026.  GAME TO FUND HOPE ADULT LITERACY GRANT
 1-8     PROGRAM.  (a) The commission shall operate a lottery game to fund
 1-9     the Hope adult literacy grant program established by Section 7.025,
1-10     Education Code.  The commission shall operate the game as an
1-11     instant-win game and shall provide for tickets to the game to be
1-12     available for sale continuously to the extent practicable.  The
1-13     commission may vary the manner in which the game is played or
1-14     conducted as the commission determines appropriate.
1-15           (b)  The commission shall market and advertise the lottery
1-16     game operated under this section in a manner intended to inform the
1-17     general public that tickets to the game are available for purchase
1-18     and that the net proceeds from the game are used to fund adult
1-19     literacy programs in this state.  The commission shall consider any
1-20     recommendations made by the Texas Higher Education Coordinating
1-21     Board and Texas Education Agency relating to the marketing and
1-22     advertising of the game.
1-23           (c)  The commission shall encourage each ticket sales agent
1-24     that sells tickets to instant-win or similar types of lottery games
 2-1     to sell tickets to the lottery game operated under this section.
 2-2           (d)  The commission may not operate, market, or advertise any
 2-3     other lottery game to fund or support a specific program or
 2-4     purpose.
 2-5           SECTION 2. Section 466.355, Government Code, is amended by
 2-6     amending Subsection (b) and adding Subsection (c) to read as
 2-7     follows:
 2-8           (b)  Money in the state lottery account may be used only for
 2-9     the following purposes and shall be distributed as follows:
2-10                 (1)  the payment of prizes to the holders of winning
2-11     tickets;
2-12                 (2)  the payment of costs incurred in the operation and
2-13     administration of the lottery, including any fees received by a
2-14     lottery operator, provided that the costs incurred in a fiscal
2-15     biennium may not exceed an amount equal to 12 percent of the gross
2-16     revenue accruing from the sale of tickets in that biennium;
2-17                 (3)  the establishment of a pooled bond fund, lottery
2-18     prize reserve fund, unclaimed prize fund, and prize payment
2-19     account; and
2-20                 (4)  the balance, after creation of a reserve
2-21     sufficient to pay the amounts needed or estimated to be needed
2-22     under Subdivisions (1) through (3), to be transferred on or before
2-23     the 15th day of each month as follows:
2-24                       (A)  the portion of the balance attributable to
2-25     the lottery game operated under Section 466.026 to the Hope
2-26     literacy account established by Section 7.025, Education Code; and
2-27                       (B)  the remainder to the foundation school fund
 3-1     [, on or before the 15th day of each month].
 3-2           (c)  The portion of the balance of the state lottery account
 3-3     attributable to the lottery game operated under Section 466.026 for
 3-4     each period for which a distribution is made under Subsection (b)
 3-5     is an amount equal to the revenue from the sale of tickets to the
 3-6     lottery game operated under Section 466.026 for the period less an
 3-7     amount calculated by multiplying the total amount deposited to the
 3-8     reserve account to pay the amounts needed or estimated to be needed
 3-9     for the period under Subsections (b)(1)-(3) by a fraction, the
3-10     numerator of which is the revenue from the sale of tickets to the
3-11     lottery game operated under Section 466.026 for the period and the
3-12     denominator of which is the total revenue from the sale of tickets
3-13     to all lottery games for the period.
3-14           SECTION 3. Subchapter B, Chapter 7, Education Code, is
3-15     amended by adding Section 7.025 to read as follows:
3-16           Sec. 7.025.  HOPE ADULT LITERACY GRANTS. (a) The Hope adult
3-17     literacy account is established as an account in the general
3-18     revenue fund.
3-19           (b)  The Hope adult literacy account consists of:
3-20                 (1)  money transferred to the account under Section
3-21     466.355, Government Code;
3-22                 (2)  gifts and grants made to the account;
3-23                 (3)  amounts appropriated to the account by the
3-24     legislature;
3-25                 (4)  other money the agency obtains for deposit to the
3-26     account; and
3-27                 (5)  interest earned on the money in the account.
 4-1           (c)  The agency may make grants from the interest earned on
 4-2     the money in the account to adult literacy programs that the agency
 4-3     determines will most effectively use the grant to further adult
 4-4     literacy in this state.  A grant may be made only to fund a program
 4-5     operated by a nonprofit community-based organization approved by
 4-6     the agency or by a consortium or association that includes a
 4-7     nonprofit community-based organization approved by the agency as a
 4-8     principal participant.  The agency may not distribute the principal
 4-9     of the account.
4-10           (d)  The agency shall establish an advisory committee to
4-11     assist the agency in administering this section.  The agency shall
4-12     establish the terms of the appointed members of the advisory
4-13     committee.  The advisory committee consists of nine members
4-14     selected as follows:
4-15                 (1)  one representative of the agency designated by the
4-16     commissioner;
4-17                 (2)  one representative of the Texas Workforce
4-18     Commission designated by the executive director of the commission;
4-19     and
4-20                 (3)  the following members appointed by the
4-21     commissioner:
4-22                       (A)  one representative of a statewide coalition
4-23     or association of community-based adult literacy programs, to serve
4-24     as presiding officer of the committee;
4-25                       (B)  one member representing community-based
4-26     adult literacy organizations in rural areas;
4-27                       (C)  one member representing community-based
 5-1     adult literacy organizations in urban areas;
 5-2                       (D)  two members representing different statewide
 5-3     adult literacy organizations;
 5-4                       (E)  one member representing local workforce
 5-5     development boards; and
 5-6                       (F)  one member representing the business
 5-7     community.
 5-8           (e)  The agency shall adopt rules for the awarding and
 5-9     distribution of grants under this section.
5-10           SECTION 4.  This Act takes effect September 1, 1999.
5-11           SECTION 5. (a) The change in law made to Section 466.355,
5-12     Government Code, by this Act applies only to a transfer from the
5-13     state lottery account made on or after the effective date of this
5-14     Act.
5-15           (b)  The Texas Lottery Commission shall establish and begin
5-16     selling tickets to the lottery game required by Section 466.026,
5-17     Government Code, as added by this Act, not later than January 1,
5-18     2000.
5-19           SECTION 6.  The importance of this legislation and the
5-20     crowded condition of the calendars in both houses create an
5-21     emergency and an imperative public necessity that the
5-22     constitutional rule requiring bills to be read on three several
5-23     days in each house be suspended, and this rule is hereby suspended.