BILL ANALYSIS H.B. 1052 By: Wilson February 22, 1995 Committee Report (Unamended) BACKGROUND Under current law the lottery commission may not authorize and license out-of-state sales agents to allow the citizens of other states to play the Texas Lottery. This has the unintended effect of allowing only those who reside in states that border Texas an opportunity to play one of the most successful lotteries in the world. A number of factors have led to an increased interest by people in areas of the country that do not border the state, and there are very few mechanisms that allow these interested persons to participate in the Texas Lottery. PURPOSE To authorize and license out-of-state sales agents to purchase and resell tickets. Also, would allow the state to honor a ticket that was bought by a person in good faith from someone who represented that a ticket could be legally purchased. RULEMAKING AUTHORITY It is the opinion of the committee that this bill delegates additional rulemaking authority in SECTION 1 (c) to the Texas Lottery Commission for the application for a license or the conduct of a license holder, regulating the activities of out-of-state sales agents, including reporting requirements or maximum fees that may be charged. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D, Chapter 466, Government Code, by adding Section 466.1515. Allows the executive director to authorize and license out-of-state sales agents to purchase and resell tickets. States permitted activities and grants rulemaking authority to the commission for regulation of conduct and permitted activities of an out-of-state sales agent. SECTION 2. Amends Subchapter G, Chapter 466, Government Code, by adding Section 466.3045. Defense to Certain Prosecutions. SECTION 3. Amends Subchapter I, Chapter 466, Government Code, by adding Section 466.409. Titles section of the bill as the "Texas Our Word is Our Bond Act." Applies to a person who purchased a lottery ticket before January 1, 1995 who acted in good faith, purchasing a ticket from a person who represented that a ticket could be legally purchased. Directs the director of the commission to pay a person who presents a validated winning lottery ticket. Also, clarifies legislative intent regarding purchase of lottery tickets. SECTION 4. Change in law applies only to offenses committed on or after effective date of this act. SECTION 5. Emergency Clause. SUMMARY OF COMMITTEE ACTION H.B. 1052 was heard in a Public Hearing on February 22, 1995. The Chair recognized the following person who registered in favor of the bill: Mr. Dale Ossip Johnson, Attorney, representing Mr. Scott Wenner, Riverside, New Jersey. No one testified against the bill. Rep. Jones moved that the full committee adopt H.B. 1052 and that it be reported favorably to the full House with the recommendation that it do pass and be printed. The motion prevailed by the following vote: AYES (6), NAYS (1), PNV (2), ABSENT (0).