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.