bill for a scratch-off lottery game funding child care

The text as introduced · 907 words

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.