SRC-VRA H.B. 1241 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1241
78R12207 EBy: Homer (Janek)
Government Organization
5/12/2003
Engrossed


DIGEST AND PURPOSE 

Currently a retailer bears the risk of loss for all lottery tickets
received.  In the case of stolen tickets in a confirmed status "with
validations," the retailer is charged the full amount of the pack, less
the commission.  H.B. 1241 addresses this concern by adding to the list of
criteria for which bond or insurance can be purchased, losses due to
bankruptcy, theft, or loss of lottery tickets, supplies, or equipment. 

RULEMAKING AUTHORITY

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 466.156, Government Code, as follows:

(a) Adds new language to include the losses of a sales agent due to
bankruptcy, theft, or loss of lottery tickets, supplies, or equipment to
the requirement that each sales agent post a cash bond, surety bond,
letter of credit, certificate of deposit and/or other security approved by
the executive director.  Adds new language requiring all losses to the
state resulting from the agent's loss to be paid by the bond fund and
prohibiting the executive director  from charging an agent for a loss
reimbursed from the bond fund. 

(b) Authorizes the executive director to require a sales agent to maintain
insurance to protect the state's interests if the sales agent has not
complied with the requirements in Subsection (a). 

SECTION 2.  Effective date:  September 1, 2003.