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78R5603 YDB-D

By:  Homer                                                        H.B. No. 1242



A BILL TO BE ENTITLED

AN ACT

relating to insurance for lottery sales agents and contractors to 
cover the theft or loss of certain lottery tickets.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 466, Government Code, is 
amended by adding Section 466.026 to read as follows:
	Sec. 466.026.  INSURANCE. (a) The commission shall provide 
insurance to cover the theft or other loss of scratch-off or other 
instant-win tickets that were in the possession of a sales agent or 
a person who contracts with the commission to produce, store, 
distribute, transport, or sell the tickets in this state.  The 
commission may purchase insurance for this purpose or may 
self-insure against the loss.
	(b)  The commission may apply insurance under Subsection (a) 
to other tickets, supplies, or equipment as the commission 
determines appropriate.
	(c)  The commission may charge a fee to a sales agent or other 
person described by Subsection (a) in an amount necessary and 
proper to cover the cost of providing insurance under this section.
	(d)  The commission shall inform a sales agent or other 
person described by Subsection (a) about the coverage and the 
amount of the fee for the coverage.
	(e)  A sales agent or other person described by Subsection 
(a) is not liable to the commission for the theft or loss of 
scratch-off or other instant-win tickets if the commission fails to 
maintain insurance required by this section.
	(f)  Subsection (e) does not apply to a sales agent or other 
person who fails to pay the fee for insurance under this section.
	(g)  Subsection (e) does not apply before March 1, 2004.  
This subsection expires January 1, 2005.
	SECTION 2.  Not later than March 1, 2004, the Texas Lottery 
Commission shall adopt the rules and procedures necessary to 
purchase or otherwise provide insurance coverage under Section 
466.026, Government Code, as added by this Act.
	SECTION 3.  This Act takes effect September 1, 2003.