HB 206 — The creation of a lottery game to benefit animal welfare

90R2265 PRL-D By: Ordaz H.B. No. 206 relating to the creation of a lottery game to benefit animal welfare programs.

SECTION 1. Subchapter B, Chapter 466, Government Code, is amended by adding Section 466.0275 to read as follows: Sec. 466.0275. ANIMAL WELFARE GAME. (a) The department shall operate an instant-ticket lottery game to benefit animal welfare programs in this state. (b) The department shall: (1) determine for the lottery game operated under this section the ticket price, payout amounts, and manner of conduct; (2) continuously offer for sale to the extent practicable the game tickets; and (3) regularly change the game design or theme to ensure it remains competitive with other instant-ticket lottery games offered by the department. (c) The department 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 fund animal welfare programs in this state. The game tickets must clearly state the game proceeds are used to benefit animal welfare programs in this state. The Department of State Health Services may make recommendations to the department relating to the marketing and advertising of the game. (d) The department 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 466.027 to the fund for veterans' assistance established by Section 434.017; and (ii) Section 466.0275 to the animal friendly account established by Section 828.014, Health and Safety Code; and (B) the remainder to the foundation school fund.

SECTION 3. Section 828.014(a), Health and Safety Code, is amended to read as follows: (a) The animal friendly account is a separate account in the general revenue fund. The account is composed of: (1) money deposited to the credit of the account under former Section 502.291, Transportation Code, and under Section 504.605, Transportation Code; [ and ] (2) money transferred to the account from proceeds of the lottery game operated under Section 466.0275, Government Code; and (3) gifts, grants, donations, and legislative appropriations.

SECTION 4. (a) Section 466.355(b), 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 Department of Licensing and Regulation shall establish and begin selling tickets to the lottery game as required by Section 466.0275, Government Code, as added by this Act, not later than March 2, 2028.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2027.