LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 22, 1995



 TO:     Honorable Ron Wilson, Chair            IN RE:  House Bill No. 1052
         Committee on Licensing &                       By: Wilson
         Administrative Procedures
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1052 (Relating to the sale, resale, and purchase of lottery
tickets and the validation of certain transactions involving the
sale, resale, or purchase of certain lottery tickets.) this
office has determined the following:

The bill would require the director of the Lottery Commission  to
authorize and license out-of-state sales agents to purchase and
resell lottery tickets.   The commission could adopt rules
regarding the licensing and regulation of such out-of-state
ticket agents.

The bill also provides for payment of a validated winning ticket
to a person who, prior to January 1, 1995, purchased the ticket
from certain non-authorized sales agents.  Money to pay winning
ticket holders is set aside, therefore, payment to such a ticket
holder would not result in any additional draw on state funds.

The Lottery commission would require an additional 6.5 full time
equivalents at a cost of $247,000 per year to authorize, monitor,
and regulate out-of-state retailers.  Current statute limits
Lottery Commission administrative cost to 15% of gross ticket
sales.   Additional cost associated with implementing the
provisions of the bill would not change the 15% Lottery
Commission appropriation authority.  It should be noted, however,
that any non-utilized Lottery Commission administrative
appropriation authority is returned to the General Revenue Fund
at the end of each fiscal year.   The additional cost of $247,000
would, therefore, result in an equal reduction to the amount of    




administrative allocation returned to the General Revenue Fund
which would subsequently be available for other expenditures.
 

No fiscal implication to units of local government is
anticipated.




Source:   Texas Lottery Commission
          LBB Staff: JK, DF