By Haywood S.B. No. 1012
76R2161 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sharing of revenue derived from the state lottery
1-3 with counties and municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 466.002, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 466.002. Definitions. In this chapter:
1-8 (1) "Commission" means the Texas Lottery Commission.
1-9 (2) "Director" means the director of the division.
1-10 (3) "Division" means the lottery division established
1-11 by the commission under Chapter 467.
1-12 (4) "Executive director" means the executive director
1-13 of the commission.
1-14 (5) "Local government" means a county or a
1-15 municipality.
1-16 (6) "Lottery" means the procedures operated by the
1-17 state under this chapter through which prizes are awarded or
1-18 distributed by chance among persons who have paid, or
1-19 unconditionally agreed to pay, for a chance or other opportunity to
1-20 receive a prize.
1-21 (7) [(6)] "Lottery game" includes a lottery activity.
1-22 (8) [(7)] "Lottery operator" means a person selected
1-23 under Section 466.014(b) to operate a lottery.
1-24 (9) "Lottery revenue area" means:
2-1 (A) for a county, all the area of the county
2-2 except the area within the boundaries of a municipality; and
2-3 (B) for a municipality, the area within the
2-4 boundaries of the municipality and not any area in the
2-5 municipality's extraterritorial jurisdiction.
2-6 (10) "Lottery subsidiary account" means an account
2-7 that facilitates the comptroller's collection of and accounting for
2-8 the lottery revenue of a local government that is maintained by the
2-9 comptroller. If the local government imposes a sales and use tax,
2-10 the comptroller shall maintain the lottery subsidiary account for
2-11 the local government as a subsidiary account of the suspense
2-12 account used by the comptroller for collecting the sales and use
2-13 tax of the local government.
2-14 (11) [(8)] "Player" means a person who contributes any
2-15 part of the consideration for a ticket.
2-16 (12) [(9)] "Sales agent" or "sales agency" means a
2-17 person licensed under this chapter to sell tickets.
2-18 (13) [(10)] "Ticket" means any tangible evidence
2-19 issued to provide participation in a lottery game authorized by
2-20 this chapter.
2-21 SECTION 2. Section 466.351, Government Code, is amended to
2-22 read as follows:
2-23 Sec. 466.351. Delivery of Funds. (a) Except as provided by
2-24 Subsection (d) and Section 466.3515, all revenue received from the
2-25 sale of tickets and all money credited to the state lottery account
2-26 from any other source shall be deposited in the state treasury
2-27 through approved state depositories on the settlement day or days
3-1 established by the director.
3-2 (b) [The director may require sales agents to establish
3-3 separate electronic funds transfer accounts for the purposes of
3-4 depositing money from ticket sales, making payments to the
3-5 division, and receiving payments from the division.] The
3-6 commission by rule shall establish the procedures for depositing
3-7 money from ticket sales into electronic funds transfer accounts, as
3-8 well as other procedures regarding the handling of money from
3-9 ticket sales. The director may require sales agents to establish
3-10 separate electronic funds transfer accounts for the purposes of:
3-11 (1) depositing gross revenue from ticket sales as
3-12 required by Section 466.3515;
3-13 (2) depositing other money from ticket sales;
3-14 (3) making payments to the division; or
3-15 (4) receiving payments from the division.
3-16 (c) The director may not permit a sales agent to make
3-17 payments to the division or a lottery operator in cash.
3-18 (d) The director may provide for a sales agent to retain
3-19 from the money received from the sale of tickets the amount of
3-20 prizes paid by the agent or the agent's commission, if any, and may
3-21 establish how often the agent will make settlement payments to the
3-22 treasury. Money retained by a sales agent does not reduce the
3-23 money received by a local government under Section 466.3515.
3-24 (e) The director may provide for a sales agent to pay
3-25 amounts received for the sale of tickets directly to an officer or
3-26 employee of the division for immediate deposit in the state
3-27 treasury.
4-1 SECTION 3. Subchapter H, Chapter 466, Government Code, is
4-2 amended by adding Section 466.3515 to read as follows:
4-3 Sec. 466.3515. LOTTERY REVENUE FOR LOCAL GOVERNMENTS.
4-4 (a) The director shall set aside for a local government a portion
4-5 of the money collected from a sales agent for the sale of tickets
4-6 in the lottery revenue area of the local government. The portion
4-7 set aside for a local government under this subsection is:
4-8 (1) a percentage equal to the total rate, expressed as
4-9 a percentage of the purchase price, of all sales and use taxes
4-10 imposed by the local government at the beginning of the state
4-11 fiscal year in which the ticket sale occurs; or
4-12 (2) one-half of one percent if the local government
4-13 does not impose a sales and use tax.
4-14 (b) The director shall deposit the money set aside by the
4-15 director for a local government as provided by this section with
4-16 the comptroller. The comptroller shall keep the deposits in trust
4-17 in the local government's lottery subsidiary account.
4-18 (c) At the end of each state fiscal biennium, the
4-19 comptroller shall transfer to a local government all funds in the
4-20 local government's lottery subsidiary account if:
4-21 (1) the amount in the local government's lottery
4-22 subsidiary account is $500 or more; and
4-23 (2) the surplus of funds in the state treasury as
4-24 determined by the comptroller under Section 49a, Article III, Texas
4-25 Constitution, is an amount equal to or greater than twice the total
4-26 amount on deposit in all the lottery subsidiary accounts.
4-27 (d) Except as provided by Subsection (e), the comptroller
5-1 shall keep in trust the deposits of a local government if the
5-2 amount in the account is less than $500 until the end of a state
5-3 fiscal biennium when the local government otherwise qualifies for a
5-4 transfer of funds under Subsection (c).
5-5 (e) At the end of each state fiscal biennium, the
5-6 comptroller shall transfer to the state lottery account:
5-7 (1) all money on deposit in all the lottery subsidiary
5-8 accounts if the surplus in the state treasury at the end of the
5-9 biennium is less than twice the total amount on deposit in all the
5-10 lottery subsidiary accounts; or
5-11 (2) all money on deposit in a local government's
5-12 lottery subsidiary account if the local government has not
5-13 satisfied the requirements of Section 140.008, Local Government
5-14 Code, as of the end of the biennium.
5-15 (f) The director shall determine the lottery revenue area in
5-16 which each ticket sale occurs.
5-17 (g) A sales agent shall report to the director a change of
5-18 location at which the sales agent sells tickets or a change of
5-19 boundaries of a local government that may change a location at
5-20 which the sales agent sells tickets from the lottery revenue area
5-21 of one local government to the lottery revenue area of a different
5-22 local government.
5-23 (h) A local government shall notify the director regarding a
5-24 boundary change of the local government that may change the lottery
5-25 revenue area of any local government.
5-26 (i) The director may transfer to the state lottery account
5-27 any revenue from tickets sold in a lottery revenue area of a local
6-1 government during a period in which the local government fails to
6-2 comply with the requirements of this chapter or a commission rule.
6-3 (j) The comptroller shall adopt rules necessary for the
6-4 proper administration of the comptroller's duties under this
6-5 section.
6-6 SECTION 4. Section 466.355(a), Government Code, is amended
6-7 to read as follows:
6-8 (a) The state lottery account is a special account in the
6-9 general revenue fund. The account consists of all revenue received
6-10 from the sale of tickets less the amount transferred to local
6-11 governments as provided by Section 466.3515, license and
6-12 application fees under this chapter, and all money credited to the
6-13 account from any other fund or source under law. Interest earned
6-14 by the state lottery account shall be deposited in the unobligated
6-15 portion of the general revenue fund.
6-16 SECTION 5. Chapter 140, Local Government Code, is amended by
6-17 adding Section 140.008 to read as follows:
6-18 Sec. 140.008. LOTTERY REVENUE OF LOCAL GOVERNMENT.
6-19 (a) Before a county or municipality may receive lottery revenue as
6-20 provided by Section 466.3515, Government Code, the commissioners
6-21 court of the county or the governing body of the municipality must:
6-22 (1) provide written notice to the director of the
6-23 lottery division of the Texas Lottery Commission to collect and to
6-24 the comptroller to deposit, by use of electronic funds transfer,
6-25 the amount of lottery revenue that the lottery division director
6-26 determines to be appropriate into an account of the county or
6-27 municipality;
7-1 (2) establish an electronic funds transfer account
7-2 into which the comptroller may deposit the lottery revenue; and
7-3 (3) comply with any rule established by the Texas
7-4 Lottery Commission or the comptroller relating to the collection or
7-5 receipt of lottery revenue.
7-6 (b) A municipality may use lottery revenue received under
7-7 Section 466.3515, Government Code, for any public purpose.
7-8 (c) A county may use lottery revenue received under Section
7-9 466.3515, Government Code, for any public purpose for which the
7-10 general funds of the county may be used.
7-11 SECTION 6. (a) The provisions of this Act relating to the
7-12 collection and distribution of lottery revenue to local governments
7-13 take effect September 1, 2003, except that for purposes of the
7-14 transfer of money by the comptroller from a lottery subsidiary
7-15 account of the suspense account used by the comptroller for
7-16 collecting the sales and use tax for a local government, this Act
7-17 applies only to the revenue from a lottery ticket purchased on or
7-18 after January 1, 2004. Except as otherwise provided by this Act,
7-19 for purposes of collecting and distributing lottery revenue to
7-20 local governments, the revenue from a lottery ticket purchased on
7-21 or after September 1, 2003, and before January 1, 2004, is governed
7-22 by the law as it existed immediately before September 1, 2003, and
7-23 that law is continued in effect for that purpose.
7-24 (b) The Texas Lottery Commission shall establish rules
7-25 relating to the collection and distribution of lottery revenue to
7-26 local governments, as required by this Act, not later than November
7-27 1, 2003.
8-1 (c) The comptroller shall adopt rules regarding the
8-2 distribution of lottery revenue to local governments, as required
8-3 by this Act, not later than November 1, 2003.
8-4 SECTION 7. The importance of this legislation and the
8-5 crowded condition of the calendars in both houses create an
8-6 emergency and an imperative public necessity that the
8-7 constitutional rule requiring bills to be read on three several
8-8 days in each house be suspended, and this rule is hereby suspended.