79R2219 YDB-D
By: Homer H.B. No. 396
A BILL TO BE ENTITLED
AN ACT
relating to protecting the state from losses incurred by a lottery
sales agent.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 466.156, Government Code, is amended to
read as follows:
Sec. 466.156. BOND; INSURANCE. (a) Each sales agent shall
post security to protect the state from possible losses, including
losses of a sales agent that result from bankruptcy, theft, or loss
of lottery tickets, supplies, or equipment. The security may be
provided through a cash bond, surety bond, letter of credit,
certificate of deposit, or other security approved by the executive
director, including the contribution of cash to a pooled bond fund
established by the executive director, or through a combination of
those measures [to protect the state from possible losses]. The
amount of the security shall be determined by the executive
director and must reflect the possible losses to the state from the
operation of the sales agent. The total amount retained in a pooled
bond fund established under this subsection may not exceed $5
million. The executive director shall reimburse the state from the
bond fund for losses not otherwise covered by insurance or other
security that result from a sales agent's loss covered by this
section. The executive director may not charge a sales agent for a
loss reimbursed from the bond fund.
(b) The executive director may [also] require a sales agent
to maintain insurance [if necessary] to protect the interests of
the state if the sales agent has not complied with the requirements
of Subsection (a).
SECTION 2. The change in law made by this Act does not apply
to a loss incurred by a lottery sales agent before the effective
date of this Act.
SECTION 3. This Act takes effect November 1, 2005.