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.