By: Bonnen H.B. No. 3973
 
 
A BILL TO BE ENTITLED
AN ACT
relating to authorizing a long-term concession agreement for
operation of the lottery and establishing three trust funds to
receive the revenue resulting from the long-term concession
agreement.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 466.002, Government Code is amended to
read as follows:
             (2)  "Concession agreement" means an agreement between
the state and private entity that authorizes the private entity to
operate and maintain the lottery on behalf of the state and retain
the revenues derived from the operation and maintenance of the
lottery.
             (3[2])  "Director" means the director of the division.
             (4[3])  "Division" means the lottery division
established by the commission under Chapter 467.
             (5[4])  "Executive director" means the executive
director of the commission.
             (6[5])  "Lottery" means the procedures operated by the
state under this chapter through which prizes are awarded or
distributed by chance among persons who have paid, or
unconditionally agreed to pay, for a chance or other opportunity to
receive a prize.
             (7[6])  "Lottery game" includes a lottery activity.
             (8[7])  "Lottery operator" means a person selected
under Section 466.014(b) to operate a lottery.
             (9[8])  "Player" means a person who contributes any
part of the consideration for a ticket.
             (10[9])  "Sales agent" or "sales agency" means a person
licensed under this chapter to sell tickets.
             (11[10])  "Ticket" means any tangible evidence issued
to provide participation in a lottery game authorized by this
chapter.
       SECTION 2.  Section 466.014, Government Code is amended by
adding Subsection (d) to read as follows:
       (d)  The commission may, in the exercise of authority granted
under Subsections (b) and (c) of this Section, execute a long-term
concession agreement for operation of the lottery.
       SECTION 3.  Section 466.0141, Government Code, is added to
read as follows:
       The commission shall be advised by the Governor and
Legislative Budget Board in the development of a long-term
concession agreement authorized by Section 466.014(d).  Any
agreement must provide:
             (1)  At least $  billion cash to be received by the
state not later than the third day after the date the concession
agreement is executed;
             (2)  The term in years of the concession;
             (3)  Exclusivity of games to be operated;
             (4)  Approval process for technological developments;
             (5)  Background requirements for concession owners and
operators;
             (6)  Advertising and marketing terms;
             (7)  Treatment of unclaimed prizes; and
             (8)  Reversion terms.
       SECTION 4.  Section 466.015(a), Government Code, is amended
to read as follows:
       (a)  The commission shall adopt all rules necessary to
administer this chapter. If the commission executes a long-term
concession agreement as authorized under Section 466.014(d), then
the commission shall adopt rules necessary to administer the
concession agreement.  If the commission adopts rules necessary to
administer the concession agreement, then the commission shall
abate existing rules that conflict with the long-term concession
agreement. The executive director may propose rules to be adopted
by the commission, but the executive director's proposed rules have
no effect until adopted by the commission.
       SECTION 5.  Section 466.0161(a), Government Code, is amended
to read as follows:
       (a)  Annually, the comptroller [shall review the management
and operations of the lottery. The comptroller] may examine
persons, tangible objects, books, records, documents, or things[,
or persons] of the commission [as necessary for that purpose].
       SECTION 6.  Section 466.101(c),  Government Code, is
amended to read as follows:
       (c)  The procurement procedures adopted by the executive
director must, as determined feasible and appropriate by the
executive director, afford any party who is aggrieved by the terms
of a solicitation or the award of a contract, other than a contract
awarded under Section 466.014(d), an opportunity to protest the
executive director's action to the commission. The protest
procedures must provide for an expedient resolution of the protest
in order to avoid substantially delaying a solicitation or contract
award that is necessary for the timely implementation of a lottery
game. A protest must be in writing and be filed with the commission
not later than 72 hours after receipt of notice of the executive
director's action.
       SECTION 7.  Section 466.351(a), Government Code, is amended
to read as follows:
       Sec. 466.351.  DELIVERY OF FUND.  (a)  Except as provided by
Subsection (d), all revenue received from the sale of tickets,
except revenue received from the sale of tickets after the
execution of a long-term concession agreement authorized under
Section 466.014(d), and all money credited to the state lottery
account from any other source shall be deposited in the state
treasury through approved state depositories on the settlement day
or days established by the director.
       SECTION 8.  Section 466.351, Government Code, is amended by
adding Subsections (f), (g) and (h) to read as follows:
       (f)  Revenue resulting from a concession agreement
authorized under Section 466.014(d) shall be deposited into three
trust funds established to receive the revenue in the following
ratios:
             (1)  $2.7 billion into the Uninsured Partnership Trust
Fund;
             (2)  $3 billion into the Texas Cancer Research
Initiative Trust Fund; and
             (3)  all remaining revenue into the Texas Public
Education Trust Fund.
       (g)  Appropriations from the earnings of the trust funds
established by Section 466.351(f) are subject to ratification under
Section 317.002(a), Government Code.
       (h)  All revenue resulting from a concession agreement
authorized under Section 466.014(d) received later than the third
day after the concession agreement is executed shall be deposited
in the unobligated portion of the general revenue fund.
       SECTION 9.  Section 466.355(a), Government Code, is amended
to read as follows:
       Sec. 466.355.  STATE LOTTERY ACCOUNT.  (a)  The state
lottery account is a special account in the general revenue fund.
Excluding revenue received pursuant to a long-term concession
agreement authorized under Section 466.014(d), t[T]he account
consists of all revenue received from the sale of tickets, license
and application fees under this chapter, and all money credited to
the account from any other fund or source under law. Interest
earned by the state lottery account shall be deposited in the
unobligated portion of the general revenue fund.
       SECTION 10.  This Act takes effect immediately if it
receives a vote of two-thirds of the member elected to each house,
as provided by Section 39, Article III, Texas Constitution.  If it
does not receive the necessary votes for immediate effect, if takes
effect September 1, 2007.