NDT C.S.H.B. 2676 75(R)BILL ANALYSIS


LICENSING & ADMINISTRATIVE PROCEDURES
C.S.H.B. 2676
By: Burnam
4-17-97
Committee Report (Substituted)



BACKGROUND 

Currently Sec. 466.251 of the Government Code states that the lottery
commission shall print the toll-free "800" number established by the Texas
Commissioner of Alcohol and Drug Abuse under Section 461.018, Health and
Safety Code, on each lottery ticket.  Sec. 466.110 of the Government Code
further states that advertisements by the lottery commission not be of a
nature that unduly influences any person to purchase a lottery ticket or
number.  The number is not required on any advertisements sponsored by the
lottery commission. 

The lottery commission uses a significant amount of television and other
media to advertise the lottery.  However, only about one percent of the
persons utilizing the "800" cite mass media as the source of their
referral. 

PURPOSE

H.B. 2676 would require all advertisements sponsored by the lottery
commission to display the toll-free "800" telephone number established by
TCADA under Section 461.018, Health and Safety Code. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.110, Government Code, by retitling the
section to "Advertisements" instead of "Prohibited Advertisements."  It
also creates Subsection (a) clarifying that an advertisement or promotion
sponsored by the lottery commission or division of the lottery must
include the toll-free "800" telephone number established by the Texas
Commission on Alcohol and Drug Abuse under Section 461.018, Health and
Safety Code, and in the manner described by this section for the form of
the advertisement or promotion. 

 (b) exempts advertisements or promotions at sporting or athletic events,
including buttons, pins, or other premium merchandise. 

 (c) states that radio and television advertisements of 30 seconds or more
include the tollfree "800" telephone number established by the Texas
Commission on Alcohol and Drug Abuse under Section 461.018, Health and
Safety Code, in a clear and conspicuous manner for an adequate period. 
 
 (d) states that printed advertisements or promotions, excluding
billboards or other signs, include the toll-free "800" telephone number
established by the Texas Commission on Alcohol and Drug Abuse under
Section 461.018, Health and Safety Code, in a clear and conspicuos manner. 

 (e) requires the commission to televise the toll-free "800" telephone
number established by the Texas Commission on Alcohol and Drug Abuse under
Section 461.018, Health and Safety  Code, in a clear and conspicuous
manner as a term of a contract to televise the drawing or selection of a
winning ticket. 

 (f) exempts promotions and other communications between the commission or
the division and a sales agent. 
SECTION 2.   (a) Effective Date:  September 1, 1997. 
  
  (b) states that Section 466.110(d), Government Code, as added by this
Act, only applies to an advertisement or promotion contracted for or
printed on or after the effective date of this Act. Exempts advertisements
or promotions contracted or printed before the effective date of this Act. 

SECTION 3.   Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute returns to language in current law with regard to "unduly
influence" making it the intent of the legislature that advertisements or
promotions sponsored by the commission not be of a nature that unduly
influences any person to purchase a lottery ticket or number, rather than
requiring that advertisement may not unduly influence any person to
purchase a lottery ticket or number. 

The substitute exempts advertisements or promotions at sporting or
athletic events or to buttons, pins, or other premium merchandise.  In
addition, the substitute exempts televised or radio broadcast
advertisements or promotions of less than 30 seconds, requiring those 30
seconds and over to display  the toll-free "800" telephone number
established by the Texas Commission on Alcohol and Drug Abuse under
Section 461.018, Health and Safety Code, in a clear and conspicuous manner
and for an adequate period. 

The substitute also requires printed material or promotions to include the
toll-free "800" telephone number established by the Texas Commission on
Alcohol and Drug Abuse under Section 461.018, Health and Safety Code, in a
clear and conspicuous manner, excluding billboards or other signs. 

In addition, the substitute requires the commission to include the
toll-free "800" telephone number established by the Texas Commission on
Alcohol and Drug Abuse under Section 461.018, Health and Safety Code, in a
clear and conspicuous manner as a term of contract to televise the drawing
or selection of a winning ticket. 

Furthermore, promotions or other communications between the commission and
a sales agent are not required to include the "800" number. 

Finally, the substitute grandfathers advertisements or promotions
contracted for or printed on or after the effecive date of this Act.