BILL ANALYSIS

 

 

Senate Research Center                                                                                                     H.B. 3350

80R10292 JPL-F                                                                                                    By: Geren (West)

                                                                                                                                       State Affairs

                                                                                                                                              5/7/2007

                                                                                                                                           Engrossed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Currently, the Texas Lottery Commission (commission) is funded from two distinct funding sources.  The operation and administration of the state lottery is funded from the general revenue dedicated lottery account (account) and charitable bingo is funded from the General Revenue Fund.  However, certain bingo indirect overhead and administrative expenses of the commission are being expensed to lottery strategies identified in the General Appropriations Act and paid from the proceeds of lottery sales, or the account, as opposed to being expensed to bingo strategies and paid from the General Revenue Fund.  

 

To provide clarity regarding this funding mechanism, the commission included a rider in its fiscal year 2008 legislative appropriations request to provide for the funding of those certain expenses through the sale of lottery tickets.  Further clarification may be necessary to define the commission's use of money toward those expenses. 

 

H.B. 3350 authorizes the expenditure of money in the state lottery account for costs incurred in the administration of the entire commission, including the regulation of bingo.  This bill additionally authorizes the use of funds in the state lottery account for the payment of fees to a lottery operator. 

 

RULEMAKING AUTHORITY

 

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

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Section 466.355(b), Government Code, to authorize the use of money in the state lottery account for payment of costs incurred in the operation and administration of the Texas Lottery Commission, rather than the lottery, including any fees paid to, rather than received by, a lottery operator. 

 

SECTION 2.  Effective date: September 1, 2007.