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.