1-1     By:  Wilson (Senate Sponsor - Armbrister)              H.B. No. 844
 1-2           (In the Senate - Received from the House April 16, 1999;
 1-3     April 19, 1999, read first time and referred to Committee on
 1-4     Finance; April 27, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 9, Nays 0;
 1-6     April 27, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 844                    By:  Truan
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the total amount of state lottery prizes that may be
1-11     awarded in a fiscal year.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 466.015(c), Government Code, is amended
1-14     to read as follows:
1-15           (c)  The commission may adopt rules governing the
1-16     establishment and operation of the lottery, including rules
1-17     governing:
1-18                 (1)  the type of lottery games to be conducted;
1-19                 (2)  the price of each ticket;
1-20                 (3)  the number of winning tickets and amount of the
1-21     prize paid on each winning ticket[, except that the total amount of
1-22     prizes awarded under this chapter may not exceed the amount
1-23     described in Subsection (d)];
1-24                 (4)  the frequency of the drawing or selection of a
1-25     winning ticket;
1-26                 (5)  the number and types of locations at which a
1-27     ticket may be sold;
1-28                 (6)  the method to be used in selling a ticket;
1-29                 (7)  the use of vending machines or electronic or
1-30     mechanical devices of any kind, other than machines or devices that
1-31     dispense currency or coins as prizes;
1-32                 (8)  the manner of paying a prize to the holder of a
1-33     winning ticket;
1-34                 (9)  the investigation of possible violations of this
1-35     chapter or any rule adopted under this chapter;
1-36                 (10)  the means of advertising to be used for the
1-37     lottery;
1-38                 (11)  the qualifications of vendors of lottery services
1-39     or equipment;
1-40                 (12)  the confidentiality of information relating to
1-41     the operation of the lottery, including:
1-42                       (A)  trade secrets;
1-43                       (B)  security measures, systems, or procedures;
1-44                       (C)  security reports;
1-45                       (D)  bids or other information regarding the
1-46     commission's contracts, if disclosure of the information would
1-47     impair the commission's ability to contract for facilities, goods,
1-48     or services on terms favorable to the commission;
1-49                       (E)  personnel information unrelated to
1-50     compensation, duties, qualifications, or responsibilities; and
1-51                       (F)  information obtained by commission security
1-52     officers or investigators;
1-53                 (13)  the development and availability of a model
1-54     agreement governing the division of a prize among multiple
1-55     purchasers of a winning ticket purchased through a group purchase
1-56     or pooling arrangement;
1-57                 (14)  the criteria to be used in evaluating bids for
1-58     contracts for lottery facilities, goods, and services; or
1-59                 (15)  any other matter necessary or desirable as
1-60     determined by the commission, to promote and ensure:
1-61                       (A)  the integrity, security, honesty, and
1-62     fairness of the operation and administration of the lottery; and
1-63                       (B)  the convenience of players and holders of
1-64     winning tickets.
 2-1           SECTION 2.  Section 466.015(d), Government Code, is amended
 2-2     to read as follows:
 2-3           (d)  The commission shall decrease its spending from its
 2-4     advertising budget of $40 million for each fiscal year by $1
 2-5     million for each one percent increase over Fiscal Year 1999 average
 2-6     prize payout.  [The total amount of lottery prizes that the
 2-7     commission may award for all lottery games in any fiscal year may
 2-8     not exceed an amount equal to the gross revenue from the sale of
 2-9     tickets in that fiscal year multiplied by the percentage amount of
2-10     lottery prizes awarded for all lottery games in fiscal year 1997 as
2-11     determined by the comptroller minus an amount equal to five percent
2-12     of gross lottery revenue for the fiscal year in which the prizes
2-13     are being awarded.]
2-14           SECTION 3.  This Act takes effect September 1, 1999.
2-15           SECTION 4.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended.
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