| 1 | 1 | | 86R4648 GCB-D |
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| 2 | 2 | | By: Powell S.B. No. 832 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to lottery game revenue for grants to public school |
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| 8 | 8 | | prekindergarten programs. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter E, Chapter 29, Education Code, is |
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| 11 | 11 | | amended by adding Section 29.1551 to read as follows: |
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| 12 | 12 | | Sec. 29.1551. FUND FOR PREKINDERGARTEN PROGRAMS. (a) The |
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| 13 | 13 | | fund for prekindergarten programs is a special fund in the state |
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| 14 | 14 | | treasury outside the general revenue fund. The fund is composed of: |
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| 15 | 15 | | (1) money transferred to the fund at the direction of |
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| 16 | 16 | | the legislature; |
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| 17 | 17 | | (2) gifts and grants contributed to the fund; |
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| 18 | 18 | | (3) the earnings of the fund; and |
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| 19 | 19 | | (4) money transferred to the fund from proceeds of the |
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| 20 | 20 | | lottery game operated under Section 466.0275, Government Code. |
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| 21 | 21 | | (b) Money in the fund may be appropriated only to the agency |
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| 22 | 22 | | to: |
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| 23 | 23 | | (1) provide grants under Section 29.155 to school |
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| 24 | 24 | | districts and open-enrollment charter schools to implement or |
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| 25 | 25 | | expand prekindergarten programs in accordance with that section; |
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| 26 | 26 | | and |
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| 27 | 27 | | (2) administer the fund. |
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| 28 | 28 | | SECTION 2. Subchapter B, Chapter 466, Government Code, is |
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| 29 | 29 | | amended by adding Section 466.0275 to read as follows: |
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| 30 | 30 | | Sec. 466.0275. PUBLIC PRE-K GAME. (a) The commission shall |
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| 31 | 31 | | operate an instant-ticket lottery game to benefit the fund for |
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| 32 | 32 | | prekindergarten programs established by Section 29.1551, Education |
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| 33 | 33 | | Code. |
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| 34 | 34 | | (b) The commission shall: |
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| 35 | 35 | | (1) determine the ticket price, payout amounts, and |
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| 36 | 36 | | manner in which the game is conducted; |
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| 37 | 37 | | (2) make tickets to the game available for sale |
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| 38 | 38 | | continuously to the extent practicable; and |
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| 39 | 39 | | (3) change the design or theme of the game regularly to |
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| 40 | 40 | | ensure the game remains competitive with other instant-ticket |
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| 41 | 41 | | lottery games offered by the commission. |
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| 42 | 42 | | (c) The commission shall market and advertise the lottery |
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| 43 | 43 | | game operated under this section in a manner intended to inform the |
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| 44 | 44 | | public that the game tickets are available for purchase and that the |
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| 45 | 45 | | game proceeds are used to fund public prekindergarten programs in |
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| 46 | 46 | | this state. The game tickets must clearly state that the game |
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| 47 | 47 | | proceeds are used to benefit the public prekindergarten students in |
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| 48 | 48 | | this state. The Texas Education Agency may make recommendations to |
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| 49 | 49 | | the Texas Lottery Commission relating to the marketing and |
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| 50 | 50 | | advertising of the game. |
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| 51 | 51 | | (d) The commission shall encourage each sales agent that |
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| 52 | 52 | | sells tickets to instant-ticket games or similar types of lottery |
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| 53 | 53 | | games to sell tickets to the game operated under this section. |
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| 54 | 54 | | SECTION 3. Section 466.355(b), Government Code, is amended |
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| 55 | 55 | | to read as follows: |
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| 56 | 56 | | (b) Money in the state lottery account may be used only for |
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| 57 | 57 | | the following purposes and shall be distributed as follows: |
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| 58 | 58 | | (1) the payment of prizes to the holders of winning |
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| 59 | 59 | | tickets; |
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| 60 | 60 | | (2) the payment of costs incurred in the operation and |
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| 61 | 61 | | administration of the lottery, including any fees received by a |
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| 62 | 62 | | lottery operator, provided that the costs incurred in a fiscal |
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| 63 | 63 | | biennium may not exceed an amount equal to 12 percent of the gross |
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| 64 | 64 | | revenue accruing from the sale of tickets in that biennium; |
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| 65 | 65 | | (3) the establishment of a pooled bond fund, lottery |
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| 66 | 66 | | prize reserve fund, unclaimed prize fund, and prize payment |
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| 67 | 67 | | account; and |
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| 68 | 68 | | (4) the balance, after creation of a reserve |
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| 69 | 69 | | sufficient to pay the amounts needed or estimated to be needed under |
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| 70 | 70 | | Subdivisions (1) through (3), to be transferred on or before the |
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| 71 | 71 | | 15th day of each month as follows: |
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| 72 | 72 | | (A) the portion of the balance attributable to |
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| 73 | 73 | | the lottery game operated under Section 466.027 to the fund for |
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| 74 | 74 | | veterans' assistance established by Section 434.017; [and] |
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| 75 | 75 | | (B) the portion of the balance attributable to |
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| 76 | 76 | | the lottery game operated under Section 466.0275 to the fund for |
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| 77 | 77 | | prekindergarten programs established by Section 29.1551, Education |
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| 78 | 78 | | Code; and |
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| 79 | 79 | | (C) the remainder to the foundation school fund. |
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| 80 | 80 | | SECTION 4. (a) Section 466.355, Government Code, as |
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| 81 | 81 | | amended by this Act, applies only to a transfer from the state |
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| 82 | 82 | | lottery account made on or after the effective date of this Act. |
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| 83 | 83 | | (b) The Texas Lottery Commission shall establish and begin |
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| 84 | 84 | | selling tickets to the lottery game as required by Section |
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| 85 | 85 | | 466.0275, Government Code, as added by this Act, not later than |
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| 86 | 86 | | March 1, 2020. |
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| 87 | 87 | | SECTION 5. This Act takes effect September 1, 2019. |
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