89R3256 BEE-D By: Menéndez S.B. No. 171 A BILL TO BE ENTITLED AN ACT relating to the creation of a lottery game to benefit the child-care services program administered by the Texas Workforce Commission. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 466, Government Code, is amended by adding Section 466.0265 to read as follows: Sec. 466.0265. GAME SUPPORTING TEXAS WORKFORCE COMMISSION CHILD-CARE SERVICES PROGRAM. (a) The commission shall operate an instant-ticket lottery game to benefit the child-care services program administered by the Texas Workforce Commission. (b) The commission shall: (1) determine the ticket price, payout amounts, and manner in which the game is conducted; (2) to the extent practicable, continuously make available for sale tickets to the game; and (3) change the design or theme of the game regularly to ensure the game remains competitive with other instant-ticket lottery games the commission offers. (c) The commission shall market and advertise the lottery game operated under this section in a manner intended to inform the public the game tickets are available for purchase and the game proceeds are used to fund the child-care services program administered by the Texas Workforce Commission. The game tickets must clearly state the game proceeds are used to benefit the child-care services program administered by the Texas Workforce Commission. The Texas Workforce Commission may submit recommendations to the Texas Lottery 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: (i) Section 466.0265 to the general revenue fund for appropriation only to fund the child-care services program administered by the Texas Workforce Commission; and (ii) Section 466.027 to the fund for veterans' assistance established by Section 434.017; and (B) the remainder to the foundation school fund. SECTION 3. Section 466.408(b), Government Code, is amended to read as follows: (b) If a claim is not made for prize money on or before the 180th day after the date on which the winner was selected, the prize money shall be used in the following order of priority: (1) subject to legislative appropriation, not more than $20 million in prize money each year may be deposited to the Department of State Health Services state-owned multicategorical teaching hospital account, which is an account in the general revenue fund, or appropriated from that account to provide indigent health care services as specified in Chapter 61, Health and Safety Code; (2) not more than $5 million in prize money each year may be appropriated to the Health and Human Services Commission and shall be used to support the provision of inpatient hospital services in hospitals located in the 15 counties that comprise the Texas-Mexico border area, with payment for those services to be not less than the amount established under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) cost reimbursement methodology for the hospital providing the services; (3) [the remaining amount,] not more than [to exceed] $5 million in prize money in each state fiscal year less any amount deposited in the fund in that year attributable to the lottery game operated under Section 466.027[,] shall be deposited to the fund for veterans' assistance; [and] (4) the remaining amount, not to exceed $5 million in prize money in each state fiscal year less any amount deposited to the general revenue fund under Section 466.355(b)(4)(A)(i) in that year attributable to the lottery game operated under Section 466.0265, shall be deposited to the general revenue fund for appropriation only to fund the child-care services program administered by the Texas Workforce Commission; and (5) all prize money subject to this section and not deposited or appropriated in accordance with Subdivision (1), (2), [or] (3), or (4) shall be deposited to the credit of the foundation school fund. SECTION 4. (a) Section 466.355, Government Code, as amended 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 466.0265, Government Code, as added by this Act, not later than March 2, 2026. SECTION 5. This Act takes effect September 1, 2025.