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).