HBA-GUM S.B. 1320 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1320 By: Ratliff Public Education 4/19/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Lottery Commission (commission) maintains $20 million in a reserve account in the General Revenue Fund to cover retailers' potential defaults. The lottery's retailer default history suggests that the reserve amount is disproportionate to the actual risk. S.B. 1320 limits the amount retained in the lottery pooled bond fund to $5 million and requires the excess to be deposited to the credit of the foundation school fund on September 1, 1999. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 466.156(a), Government Code, to prohibit the total amount retained in a pooled bond fund established under this subsection (relating to the Texas Lottery pooled bond fund) from exceeding $5 million. SECTION 2. Effective date: September 1, 1999. Requires that any amount in the pooled bond fund established under Section 466.156 (Bond; Insurance), Government Code, in excess of the maximum amount allowed to be retained in the fund under Subsection (a) of that section as amended by this Act, is to be deposited to the credit of the foundation school fund on the effective date of this Act. SECTION 3. Emergency clause.