1-1  By:  Henderson                                         S.B. No. 244
    1-2        (In the Senate - Filed February 2, 1993; February 3, 1993,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  March 22, 1993, reported favorably by the following vote:  Yeas 7,
    1-5  Nays 4; March 22, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Harris of Dallas   x                               
    1-9        Rosson             x                               
   1-10        Carriker                                       x   
   1-11        Henderson          x                               
   1-12        Leedom                     x                       
   1-13        Lucio              x                               
   1-14        Luna               x                               
   1-15        Nelson                     x                       
   1-16        Patterson          x                               
   1-17        Shelley            x                               
   1-18        Sibley                     x                       
   1-19        West                       x                       
   1-20        Whitmire                                       x   
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the regulation of video lottery games; providing
   1-24  penalties.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Section 1.02, State Lottery Act (Article 179g,
   1-27  Vernon's Texas Civil Statutes), is amended by amending Subdivisions
   1-28  (3), (6), and (7) and adding Subdivisions (9) and (10) to read as
   1-29  follows:
   1-30              (3)  "Lottery" means the procedures operated by the
   1-31  state under this Act through which prizes are awarded or
   1-32  distributed by chance among persons who have paid, or
   1-33  unconditionally agreed to pay, for a chance or other opportunity to
   1-34  receive a prize and includes all procedures associated with the
   1-35  operation of video lottery games.
   1-36              (6)  "Player" means a person who contributes any part
   1-37  of the consideration for a ticket or for a video lottery game.
   1-38              (7)  "Sales agent" or "sales agency" means a person
   1-39  licensed under this Act to sell lottery tickets or operate video
   1-40  lottery game machines.
   1-41              (9)  "Video lottery game" means a single turn or
   1-42  opportunity to play a video game in which the player, by chance,
   1-43  may receive a voucher described in Section 5.031 of this Act.
   1-44              (10)  "Video lottery game machine" means any electronic
   1-45  video gambling machine using a video display screen and
   1-46  microprocessor that, on the making of a required payment, is
   1-47  available to play or simulate the play of a video lottery game.
   1-48  The term does not include any device authorized to be used in the
   1-49  conducting of charitable gaming.
   1-50        SECTION 2.  Article 1, State Lottery Act (Article 179g,
   1-51  Vernon's Texas Civil Statutes), is amended by adding Section 1.05
   1-52  to read as follows:
   1-53        Sec. 1.05.  EXEMPTION FROM FEDERAL LAW.  Video lottery game
   1-54  machines operated or to be operated under this Act are exempted
   1-55  from 15 U.S.C. Section 1172.
   1-56        SECTION 3.  Subsection (e), Section 2.01, State Lottery Act
   1-57  (Article 179g, Vernon's Texas Civil Statutes), is amended to read
   1-58  as follows:
   1-59        (e)  The director may employ or contract with marketing
   1-60  representatives to promote the sale of tickets and the installation
   1-61  of video lottery game machines, to encourage persons to apply to
   1-62  become sales agents, or to investigate the qualifications of sales
   1-63  agent applicants.  The marketing representatives are exempted from
   1-64  the Position Classification Act of 1961 (Article 6252-11, Vernon's
   1-65  Texas Civil Statutes) and may be compensated based on a sales
   1-66  incentive system to be established by the director.
   1-67        SECTION 4.  Subsections (c) and (d), Section 2.02, State
   1-68  Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
    2-1  amended to read as follows:
    2-2        (c)  The comptroller shall adopt rules to the extent they are
    2-3  not inconsistent with the Open Meetings Act (Article 6252-17,
    2-4  Vernon's Texas Civil Statutes) and the Open Records Act (Article
    2-5  6252-17a, Vernon's Texas Civil Statutes) governing the:
    2-6              (1)  security for the lottery and the division,
    2-7  including the development of an internal security plan;
    2-8              (2)  apportionment of the total revenues from the sale
    2-9  of tickets and from all other sources in the amounts provided by
   2-10  this Act;
   2-11              (3)  enforcement of prohibitions on access to video
   2-12  lottery games by and the sale of tickets to or by an individual
   2-13  younger than 18 years of age; and
   2-14              (4)  enforcement of prohibitions on a person playing a
   2-15  lottery game or activity by telephone.
   2-16        (d)  The comptroller may adopt rules governing the
   2-17  establishment and operation of the lottery, including rules
   2-18  governing:
   2-19              (1)  the type of lottery games or activities to be
   2-20  conducted;
   2-21              (2)  the price of each ticket;
   2-22              (3)  the number of winning tickets and amount of the
   2-23  prize paid on each winning ticket;
   2-24              (4)  the frequency of the drawing or selection of a
   2-25  winning ticket;
   2-26              (5)  the number and types of locations at which a
   2-27  ticket may be sold;
   2-28              (6)  the method to be used in selling a ticket;
   2-29              (7)  the use of vending machines, video lottery game
   2-30  machines, or electronic or mechanical devices of any kind, other
   2-31  than machines or devices that dispense currency or coins as prizes;
   2-32              (8)  the manner of paying a prize to the holder of a
   2-33  winning ticket;
   2-34              (9)  the investigation of possible violations of this
   2-35  Act or any rule adopted under this Act;
   2-36              (10)  the means of advertising to be used for the
   2-37  lottery;
   2-38              (11)  the qualifications of vendors of lottery services
   2-39  or equipment;
   2-40              (12)  the confidentiality of information relating to
   2-41  the operation of the lottery, including:
   2-42                    (A)  trade secrets;
   2-43                    (B)  security measures, systems, or procedures;
   2-44                    (C)  security reports;
   2-45                    (D)  bids or other information regarding the
   2-46  division's contracts, if disclosure of the information would impair
   2-47  the division's ability to contract for facilities, goods, or
   2-48  services on terms favorable to the division;
   2-49                    (E)  personnel information unrelated to
   2-50  compensation, duties, qualifications, or responsibilities; and
   2-51                    (F)  information obtained by division security
   2-52  officers or investigators;
   2-53              (13)  the development and availability of a model
   2-54  agreement governing the division of a prize among multiple
   2-55  purchasers of a winning ticket purchased through a group purchase
   2-56  or pooling arrangement;
   2-57              (14)  the criteria to be used in evaluating bids for
   2-58  contracts for lottery facilities, goods, and services; or
   2-59              (15)  any other matter necessary or desirable as
   2-60  determined by the comptroller, to promote and ensure:
   2-61                    (A)  the integrity, security, honesty, and
   2-62  fairness of the operation and administration of the lottery; and
   2-63                    (B)  the convenience of players and holders of
   2-64  winning tickets.
   2-65        SECTION 5.  Subsection (d), Section 3.01, State Lottery Act
   2-66  (Article 179g, Vernon's Texas Civil Statutes), is amended to read
   2-67  as follows:
   2-68        (d)  A separate license is required for each location at
   2-69  which tickets are to be sold or video lottery game machines are to
   2-70  be installed.  A person who desires to operate more than one
    3-1  location to sell tickets or operate video lottery game machines
    3-2  must submit a separate application for each location.
    3-3        SECTION 6.  Article 3, State Lottery Act (Article 179g,
    3-4  Vernon's Texas Civil Statutes), is amended by adding Section 3.011
    3-5  to read as follows:
    3-6        Sec. 3.011.  VIDEO LOTTERY GAME LICENSING.    (a)  The
    3-7  director may issue a video lottery game license only to a racetrack
    3-8  that is licensed under the Texas Racing Act (Article 179e, Vernon's
    3-9  Texas Civil Statutes).
   3-10        (b)  A racetrack licensed under this section must meet the
   3-11  requirements for licensing as a sales agent of lottery tickets
   3-12  except as otherwise specifically provided by this Act.  A license
   3-13  issued under this section authorizes the operation of video lottery
   3-14  game machines only and may not be construed as a license to engage
   3-15  in any other lottery activity under this Act.
   3-16        (c)  A racetrack licensed under this section:
   3-17              (1)  shall place the video lottery game machines in an
   3-18  area where the racetrack prevents access to the machines by minors;
   3-19  and
   3-20              (2)  may offer only the video lottery games authorized
   3-21  by the director.
   3-22        (d)  A license held under this section expires immediately if
   3-23  the racetrack license held by the racetrack is suspended or
   3-24  revoked.
   3-25        (e)  A racetrack licensed under this section may install and
   3-26  operate any type or brand of video lottery game machine if the
   3-27  machine meets the requirements imposed by this Act and each
   3-28  applicable rule adopted under this Act.
   3-29        SECTION 7.  Subsections (a) and (i), Section 3.02, State
   3-30  Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
   3-31  amended to read as follows:
   3-32        (a)  After a hearing, the director shall deny an application
   3-33  for a license or the comptroller shall suspend or revoke a license
   3-34  if the director or comptroller, as applicable, finds that the
   3-35  applicant or sales agent:
   3-36              (1)  is an individual who:
   3-37                    (A)  has been convicted of a felony, criminal
   3-38  fraud, gambling or a gambling-related offense, or a misdemeanor
   3-39  involving moral turpitude, if less than 10 years has elapsed since
   3-40  the termination of the sentence, parole, mandatory supervision, or
   3-41  probation served for the offense;
   3-42                    (B)  is or has been a professional gambler; or
   3-43                    (C)  is married to or related in the first degree
   3-44  of consanguinity or affinity to an individual:
   3-45                          (i)  described in Paragraph (A) or (B) of
   3-46  this subdivision; or
   3-47                          (ii)  who is currently delinquent in the
   3-48  payment of any state tax;
   3-49              (2)  is not an individual, and an individual described
   3-50  in Subdivision (1) of this subsection:
   3-51                    (A)  is an officer or director of the applicant
   3-52  or sales agent;
   3-53                    (B)  holds more than 10 percent of the stock in
   3-54  the applicant or sales agent;
   3-55                    (C)  holds an equitable interest greater than 10
   3-56  percent in the applicant or sales agent;
   3-57                    (D)  is a creditor of the applicant or sales
   3-58  agent who holds more than 10 percent of the applicant's or sales
   3-59  agent's outstanding debt;
   3-60                    (E)  is the owner or lessee of a business that
   3-61  the applicant or sales agent conducts or through which the
   3-62  applicant will conduct a ticket sales agency;
   3-63                    (F)  shares or will share in the profits, other
   3-64  than stock dividends, of the applicant or sales agent;
   3-65                    (G)  participates in managing the affairs of the
   3-66  applicant or sales agent; or
   3-67                    (H)  is an employee of the applicant or sales
   3-68  agent who is or will be involved in:
   3-69                          (i)  selling tickets; or
   3-70                          (ii)  handling money from the sale of
    4-1  tickets;
    4-2              (3)  is currently delinquent in the payment of any
    4-3  state tax;
    4-4              (4)  is a person whose location for the sales agency
    4-5  is:
    4-6                    (A)  a racetrack at which wagering is authorized
    4-7  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
    4-8  Statutes), except as provided by Section 3.011 of this Act;
    4-9                    (B)  a location licensed for games of bingo under
   4-10  the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
   4-11  Statutes);
   4-12                    (C)  on land that is owned by:
   4-13                          (i)  this state; or
   4-14                          (ii)  a political subdivision of this
   4-15  state, other than land used as a mass transportation facility that
   4-16  is used by commercial carriers; or
   4-17                    (D)  a location for which a person holds a wine
   4-18  and beer retailer's permit, mixed beverage permit, mixed beverage
   4-19  late hours permit, private club registration permit, or private
   4-20  club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
   4-21  Alcoholic Beverage Code, unless the applicant is a racetrack
   4-22  eligible for a video lottery game license under Section 3.011 of
   4-23  this Act;
   4-24              (5)  has violated this Act or a rule adopted under this
   4-25  Act.
   4-26        (i)  The director shall not issue a license <to sell lottery
   4-27  tickets> to applicants who fail to certify to the director the
   4-28  applicant's compliance with the federal Americans With Disabilities
   4-29  Act.
   4-30        SECTION 8.  Section 4.01, State Lottery Act (Article 179g,
   4-31  Vernon's Texas Civil Statutes), is amended to read as follows:
   4-32        Sec. 4.01.  TICKETS AND VOUCHERS.  (a)  The director shall
   4-33  prescribe the form of tickets and video lottery game vouchers.  The
   4-34  toll-free "800" telephone number established by the Texas
   4-35  Commission on Alcohol and Drug Abuse under Section 461.018, Health
   4-36  and Safety Code, must be printed on each ticket and on each
   4-37  voucher.  The overall estimated odds of winning a prize in a given
   4-38  game or activity must be printed on each ticket, but not on a
   4-39  voucher, and prominently displayed in association with the sale of
   4-40  lottery products.  The estimate must be based on reasonable
   4-41  projections and past experience.
   4-42        (b)  By purchasing a ticket in a particular lottery game or
   4-43  activity or operating a video lottery game machine, a player agrees
   4-44  to abide by and be bound by the division's rules, including the
   4-45  rules applicable to the particular lottery game or activity
   4-46  involved.  The player also acknowledges that the determination of
   4-47  whether the player is a valid winner is subject to the division's
   4-48  rules and claims procedures, including those developed for the
   4-49  particular lottery game or activity involved, and subject to any
   4-50  validation tests established by the division for the particular
   4-51  lottery game or activity involved.  If the lottery uses tickets, an
   4-52  abbreviated form of the rules or a reference to the rules may
   4-53  appear on the tickets.
   4-54        SECTION 9.  Article 4, State Lottery Act (Article 179g,
   4-55  Vernon's Texas Civil Statutes), is amended by adding Section 4.011
   4-56  to read as follows:
   4-57        Sec. 4.011.  VIDEO LOTTERY GAME REGULATIONS.  (a)  A video
   4-58  lottery game machine may not:
   4-59              (1)  award free games in lieu of credits; or
   4-60              (2)  directly dispense coins, cash, tokens, or anything
   4-61  else of value, except the voucher required by Section 5.031 of this
   4-62  Act.
   4-63        (b)  A racetrack holding a video lottery game license is
   4-64  entitled to offer for play at the racetrack an unlimited number of
   4-65  video lottery game machines.  Video lottery games may be offered
   4-66  for play at the racetrack at any time and regardless of whether the
   4-67  racetrack is simultaneously conducting a live or simulcast
   4-68  pari-mutuel event.
   4-69        SECTION 10.  Subsections (b), (c), (d), (g), (h), and (i),
   4-70  Section 4.02, State Lottery Act (Article 179g, Vernon's Texas Civil
    5-1  Statutes), are amended to read as follows:
    5-2        (b)  Except as provided by this subsection, a person who is
    5-3  not a sales agent or an employee of a sales agent commits an
    5-4  offense if the person intentionally or knowingly sells a ticket or
    5-5  offers a video lottery game machine for play.  An offense under
    5-6  this subsection is a felony of the third degree.  A lottery
    5-7  operator may sell tickets to a licensed sales agent.  A person who
    5-8  is not a sales agent may distribute tickets as premiums to
    5-9  customers, employees, or other persons who deal with the person if
   5-10  no purchase or service is required to entitle the recipient to the
   5-11  ticket.
   5-12        (c)  A person commits an offense if the person sells a ticket
   5-13  at a location other than the location of a sales agency or offers a
   5-14  video lottery game machine for play at a location other than the
   5-15  licensed location.  An offense under this subsection is a Class A
   5-16  misdemeanor.
   5-17        (d)  A sales agent or an employee of a sales agent may not
   5-18  intentionally or knowingly sell or offer to sell a ticket to an
   5-19  individual or allow an individual to play a video lottery game if
   5-20  <that> the person knows that the individual is younger than 18
   5-21  years of age.
   5-22        (g)  A sales agent or an employee of a sales agent commits an
   5-23  offense if the person intentionally or knowingly sells a ticket to
   5-24  another person or allows another person to play a video lottery
   5-25  game by extending credit or lending money to the person to enable
   5-26  the person to  purchase the ticket or play the game.  An offense
   5-27  under this subsection is a Class C misdemeanor.
   5-28        (h)  A person may not purchase a ticket or play a video
   5-29  lottery game:
   5-30              (1)  with a food stamp coupon issued under the food
   5-31  stamp program administered under Chapter 33, Human Resources Code;
   5-32              (2)  with a credit card or a debit card;
   5-33              (3)  over the telephone; or
   5-34              (4)  by mail-order sales.
   5-35        (i)  A person may not pay for a ticket or play a video
   5-36  lottery game with the proceeds of a check issued as a payment under
   5-37  the Aid to Families with Dependent Children program administered
   5-38  under Chapter 31, Human Resources Code.
   5-39        SECTION 11.  Subsection (e), Section 4.03, State Lottery Act
   5-40  (Article 179g, Vernon's Texas Civil Statutes), is amended to read
   5-41  as follows:
   5-42        (e)  A person commits an offense if the person intentionally
   5-43  or knowingly tampers with, damages, defaces, or renders inoperable
   5-44  any vending machine, electronic computer terminal, video lottery
   5-45  game machine, or other mechanical device used in a lottery game.
   5-46  An offense under this subsection is a felony of the third degree.
   5-47        SECTION 12.  Subsections (a), (b), (d), (e), (f), and (g),
   5-48  Section 5.01, State Lottery Act (Article 179g, Vernon's Texas Civil
   5-49  Statutes), are amended to read as follows:
   5-50        (a)  Except as provided by Subsection (e) of this section,
   5-51  all revenue received from the sale of tickets, all revenue received
   5-52  from video lottery games, and all money credited to the state
   5-53  lottery account from any other source shall be deposited in the
   5-54  state treasury through approved state depositories on the
   5-55  settlement day or days established by the director.
   5-56        (b)  The director may require sales agents to establish
   5-57  separate electronic funds transfer accounts for the purposes of
   5-58  depositing money from ticket sales and video lottery games, making
   5-59  payments to the division, and receiving payments from the division.
   5-60  The comptroller by rule shall establish the procedures for
   5-61  depositing money from ticket sales and video lottery games into
   5-62  electronic funds transfer accounts, as well as other procedures
   5-63  regarding the handling of money from ticket sales and video lottery
   5-64  games.  The director may not permit a sales agent to make payments
   5-65  to the division or a lottery operator in cash.
   5-66        (d)  The director may require a sales agent to file with the
   5-67  division reports of receipts and transactions relating to the sale
   5-68  of tickets or the operation of video lottery game machines in the
   5-69  form and containing the information that the director requires.
   5-70  Each sales agent shall maintain records adequate to establish the
    6-1  disposition of each ticket provided to the sales agent, the amounts
    6-2  of money received for the sale of those tickets or the operation of
    6-3  video lottery game machines, and any prizes awarded by the sales
    6-4  agent.
    6-5        (e)  The director may provide for a sales agent to retain
    6-6  from the money received from the sale of tickets or the operation
    6-7  of video lottery game machines the amount of prizes paid by the
    6-8  agent, <or> the agent's commission, if any, or amounts not
    6-9  allocated to the state under Section 5.021 of this Act, and may
   6-10  establish how often the agent will make settlement payments to the
   6-11  treasury.
   6-12        (f)  The director may provide for a sales agent to pay
   6-13  amounts received for the sale of tickets or the operation of video
   6-14  lottery game machines directly to an officer or employee of the
   6-15  division for immediate deposit in the state treasury.
   6-16        (g)  A sales agent is liable to the division for all tickets
   6-17  accepted or generated by the sales agent or any employee or agent
   6-18  of the sales agent, and tickets shall be deemed to have been
   6-19  purchased by the sales agent unless returned to the division within
   6-20  the time and manner prescribed by the division.  Money received by
   6-21  a sales agent from the sales of tickets or the operation of video
   6-22  lottery game machines, less the amount retained for prizes paid by
   6-23  the sales agent, <or> for the agent's commission, if any, or for
   6-24  amounts not allocated to the state under Section 5.021 of this Act,
   6-25  together with any unsold tickets, shall be held in trust for the
   6-26  benefit of the state before delivery to a lottery operator or the
   6-27  division or electronic transfer to the state treasury, and the
   6-28  sales agent is liable to the division for the full amount of the
   6-29  money or unsold tickets so held.  If the sales agent is not an
   6-30  individual, each officer, director, or owner of the sales agent is
   6-31  personally liable to the division for the full amount of the money
   6-32  or unsold tickets held in trust for the benefit of the state.
   6-33        SECTION 13.  Subsection (a), Section 5.02, State Lottery Act
   6-34  (Article 179g, Vernon's Texas Civil Statutes), is amended to read
   6-35  as follows:
   6-36        (a)  A special account in the general revenue fund to be
   6-37  known as the state lottery account is established.  The account
   6-38  consists of all revenue received from the sale of tickets, all
   6-39  revenue received from video lottery games, license and application
   6-40  fees under this Act, and all money credited to the account from any
   6-41  other fund or source under law.  Interest earned by the state
   6-42  lottery account shall be deposited in the unobligated portion of
   6-43  the general revenue fund.
   6-44        SECTION 14.  Article 5, State Lottery Act (Article 179g,
   6-45  Vernon's Texas Civil Statutes), is amended by adding Section 5.021
   6-46  to read as follows:
   6-47        Sec. 5.021.  ALLOCATION OF VIDEO LOTTERY GAME REVENUE.
   6-48  (a)  Revenue derived from video lottery games, after payment of
   6-49  prizes, shall be allocated as follows:
   6-50              (1)  20 percent to the state lottery account;
   6-51              (2)  50 percent to the racetrack at which the video
   6-52  lottery games were offered for play;
   6-53              (3)  18 percent to the person providing the video
   6-54  lottery game machines and associated communication system to the
   6-55  racetrack;
   6-56              (4)  10 percent to:
   6-57                    (A)  the owners of kennels who are under contract
   6-58  with the racetrack under Section 10.03, Texas Racing Act (Article
   6-59  179e, Vernon's Texas Civil Statutes), if the racetrack conducts
   6-60  greyhound races; or
   6-61                    (B)  the owners of horses who are awarded any
   6-62  portion of a purse from a race conducted at the racetrack, if the
   6-63  racetrack conducts horse races;
   6-64              (5)  one percent to the county in which the racetrack
   6-65  is located; and
   6-66              (6)  one percent to:
   6-67                    (A)  the municipality in which the racetrack is
   6-68  located; or
   6-69                    (B)  the county in which the racetrack is
   6-70  located, in addition to the amount allocated under Subdivision (5)
    7-1  of this subsection, if the racetrack is not located in a
    7-2  municipality.
    7-3        (b)  If a racetrack is located in more than one county or
    7-4  more than one municipality, the amounts allocated under Subsection
    7-5  (a)(5) or (6) of this section shall be allocated among the counties
    7-6  or municipalities based on population.
    7-7        SECTION 15.  Article 5, State Lottery Act (Article 179g,
    7-8  Vernon's Texas Civil Statutes), is amended by adding Section 5.031
    7-9  to read as follows:
   7-10        Sec. 5.031.  VIDEO LOTTERY GAME PRIZE PAYMENTS; PAYBACK
   7-11  PERCENTAGE.  (a)  A racetrack that holds a license under Section
   7-12  3.011 of this Act shall pay in cash all credits owed to a player as
   7-13  shown on a valid video lottery game voucher.
   7-14        (b)  A video lottery game machine must be capable of printing
   7-15  a voucher showing any credits owed to a winning player at the
   7-16  completion of each game.
   7-17        (c)  For each video lottery game machine located at a
   7-18  racetrack, the racetrack shall prescribe a reasonable return to
   7-19  winning players that is not less than 70 percent of the value spent
   7-20  by players on that machine.
   7-21        (d)  Each video lottery game machine must have an electronic
   7-22  accounting device that may be used to verify the winning
   7-23  percentage.
   7-24        SECTION 16.  Section 5.07, State Lottery Act (Article 179g,
   7-25  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-26        Sec. 5.07.  EXEMPTION FROM TAXATION.  (a)  A political
   7-27  subdivision of this state may not impose:
   7-28              (1)  a tax on the sale of a ticket or on a game played
   7-29  on a video lottery game machine;
   7-30              (2)  a tax on the payment of a prize under this Act; or
   7-31              (3)  an ad valorem tax on tickets or on a game played
   7-32  on a video lottery game machine.
   7-33        (b)  The receipts from the sale, use, or other consumption of
   7-34  a ticket or the receipts from a video lottery game machine are
   7-35  exempt from taxation under Chapter 151, Tax Code.
   7-36        SECTION 17.  Subsection (k), Section 2.02, State Lottery Act
   7-37  (Article 179g, Vernon's Texas Civil Statutes), is repealed.
   7-38        SECTION 18.  The importance of this legislation and the
   7-39  crowded condition of the calendars in both houses create an
   7-40  emergency and an imperative public necessity that the
   7-41  constitutional rule requiring bills to be read on three several
   7-42  days in each house be suspended, and this rule is hereby suspended,
   7-43  and that this Act take effect and be in force from and after its
   7-44  passage, and it is so enacted.
   7-45                               * * * * *
   7-46                                                         Austin,
   7-47  Texas
   7-48                                                         March 22, 1993
   7-49  Hon. Bob Bullock
   7-50  President of the Senate
   7-51  Sir:
   7-52  We, your Committee on State Affairs to which was referred S.B.
   7-53  No. 244, have had the same under consideration, and I am instructed
   7-54  to report it back to the Senate with the recommendation that it do
   7-55  pass and be printed.
   7-56                                                         Harris of
   7-57  Dallas, Chairman
   7-58                               * * * * *
   7-59                               WITNESSES
   7-60                                                  FOR   AGAINST  ON
   7-61  ___________________________________________________________________
   7-62  Name:  Fausto Yturria
   7-63  Representing:  Valley Greyhound Park
   7-64  City:  Harlingen
   7-65  -------------------------------------------------------------------
   7-66  Name:  William McLaughlin                        x
   7-67  Representing:  Valley Greyhound Park
   7-68  City:  Harlingen
   7-69  -------------------------------------------------------------------
   7-70  Name:  Robert Hughes                             x
    8-1  Representing:  Amusement & Music Operators
    8-2  City:  Austin
    8-3  -------------------------------------------------------------------
    8-4  Name:  Walter Fisher                             x
    8-5  Representing:  TML
    8-6  City:  Austin
    8-7  -------------------------------------------------------------------
    8-8  Name:  Dan Martin                                        x
    8-9  Representing:  Texans Who Care
   8-10  City:  Austin
   8-11  -------------------------------------------------------------------
   8-12  Name:  Weston Ware                                       x
   8-13  Representing:  Tx Baptist Christian Life Com
   8-14  City:  Dallas
   8-15  -------------------------------------------------------------------
   8-16  Name:  Nancy Fisher                                      x
   8-17  Representing:  Lone Star Jockey Club
   8-18  City:  Dallas
   8-19  -------------------------------------------------------------------
   8-20  Name:  Robert Johnson                                    x
   8-21  Representing:  Gulf Greyhound Park
   8-22  City:  Austin
   8-23  -------------------------------------------------------------------
   8-24  Name:  Jeff Hooper                                       x
   8-25  Representing:  Tx Thoroughbreed Breeders' Ass.
   8-26  City:  Austin
   8-27  -------------------------------------------------------------------
   8-28  Name:  Pete Hale                                         x
   8-29  Representing:  Tx Quarter Horse Assoc
   8-30  City:  Austin
   8-31  -------------------------------------------------------------------
   8-32  Name:  Robert Spellings                                  x
   8-33  Representing:  Tx Thoroughbreed Assoc
   8-34  City:  Austin
   8-35  -------------------------------------------------------------------