80R6568 BEF-F

By: Van de Putte S.B. No. 770

A BILL TO BE ENTITLED

AN ACT

relating to the creation of a lottery game to benefit the permanent fund for veterans' assistance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 466, Government Code, is amended by adding Section 466.027 to read as follows:

Sec. 466.027. VETERANS ASSISTANCE GAME. (a) The commission shall operate an instant-ticket lottery game to benefit the permanent fund for veterans' assistance established by Section 403.108.

(b) The commission shall:

(1) determine the ticket price, payout amounts, and manner in which the game is conducted;

(2) make tickets to the game available for sale continuously to the extent practicable; and

(3) change the design or theme of the game regularly to ensure that the game remains competitive with other instant-ticket lottery games offered by the commission.

(c) The commission shall market and advertise the lottery game operated under this section in a manner intended to inform the general public that the game tickets are available for purchase and that the game proceeds are used to fund veterans programs in this state. The game tickets must clearly state that the game proceeds are used to benefit the veterans in this state. The Texas Veterans Commission may make recommendations to the commission relating to the marketing and advertising of the game.

(d) The commission shall encourage each sales agent that sells tickets to instant-ticket games or similar types of lottery games to sell tickets to the game operated under this section.

SECTION 2. Section 466.355(b), Government Code, is amended to read as follows:

(b) Money in the state lottery account may be used only for the following purposes and shall be distributed as follows:

(1) the payment of prizes to the holders of winning tickets;

(2) the payment of costs incurred in the operation and administration of the lottery, including any fees received by a lottery operator, provided that the costs incurred in a fiscal biennium may not exceed an amount equal to 12 percent of the gross revenue accruing from the sale of tickets in that biennium;

(3) the establishment of a pooled bond fund, lottery prize reserve fund, unclaimed prize fund, and prize payment account; and

(4) the balance, after creation of a reserve sufficient to pay the amounts needed or estimated to be needed under Subdivisions (1) through (3), to be transferred on or before the 15th day of each month as follows:

(A) the portion of the balance attributable to the lottery game operated under Section 466.027 to the permanent fund for veterans' assistance established by Section 403.108; and

(B) the remainder to the foundation school fund [, on or before the 15th day of each month].

SECTION 3. Section 403.108(a), Government Code, is amended to read as follows:

(a) The permanent fund for veterans' assistance is a special fund in the state treasury outside the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund; [and]

(3) the available earnings of the fund determined in accordance with Section 403.1068; and

(4) money transferred to the fund from the proceeds of the lottery game operated under Section 466.027.

SECTION 4. (a) The change in law made to Section 466.355, Government Code, by this Act applies only to a transfer from the state lottery account made on or after the effective date of this Act.

(b) The Texas Lottery Commission shall establish and begin selling tickets to the lottery game as required by Section 466.027, Government Code, as added by this Act, not later than March 2, 2008.

SECTION 5. This Act takes effect September 1, 2007.