Amend HB 3350 (Senate committee printing) by adding the 
following appropriately numbered SECTIONS to the bill and 
renumbering subsequent SECTIONS of the bill accordingly:
	SECTION ___.  (a)  The comptroller of public accounts, with 
the assistance of the Texas Lottery Commission, the Department of 
Information Resources, and the Department of Public Safety, shall 
conduct a study on the feasibility and viability of establishing an 
Internet lottery game program through the Texas Lottery Commission.  
The study must include an examination of the following matters 
regarding Internet lottery game transactions:
		(1)  the experience of other jurisdictions that have 
sold lottery tickets through the Internet;
		(2)  the security of those transactions;                                      
		(3)  means of verifying the age of purchasers of 
lottery tickets;           
		(4)  procedures for the sale of lottery tickets;                              
		(5)  means of verifying that all aspects of an Internet 
lottery ticket purchase occur within the State of Texas and of 
prohibiting interstate lottery transactions through the Internet;
		(6)  means of payment for lottery ticket purchases;                           
		(7)  procedures for prize claims and ticket validation;                       
		(8)  the potential impact on current lottery sales and 
sales agents;        
		(9)  the capability of an Internet lottery game system 
to interface with the current lottery operator's computer systems;
		(10)  the ability of the Texas Lottery Commission to 
develop and operate an internal system to sell lottery tickets or 
pay lottery prizes directly through the Internet;
		(11)  the availability of persons in the private sector 
capable of providing an Internet lottery game system;
		(12)  the potential fiscal impact on the foundation 
school fund;            
		(13)  compliance with all applicable state and federal 
laws; and            
		(14)  any other matter the comptroller determines 
appropriate after consultation with the Texas Lottery Commission.
	(b)  Not later than January 1, 2009, the comptroller shall 
report the results of the study conducted under this section to:
		(1)  the governor;                                                            
		(2)  the lieutenant governor;                                                 
		(3)  the speaker of the house of representatives; and                         
		(4)  the Texas Lottery Commission.                                            
	(c)  This section expires January 1, 2010.                                     
	SECTION ___.  (a)  The Texas Lottery Commission and the 
comptroller of public accounts jointly shall conduct a study on the 
feasibility of and benefits and costs to this state of assessing a 
prize fee in the amount of five percent of the amount of a lottery 
prize that exceeds $600.  The study shall consider whether 
dedication of the revenue from the prize fee to TEXAS grants awarded 
under Subchapter M, Chapter 56, Education Code, would be an 
appropriate use of the revenue to enable this state to provide TEXAS 
grants to eligible students.  The Texas Higher Education 
Coordinating Board shall provide the commission and the comptroller 
on request with information relating to the possible dedication of 
prize fee revenue to TEXAS grants.
	(b)  Not later than January 1, 2009, the Texas Lottery 
Commission shall report the results of the study conducted under 
this section to:
		(1)  the governor;                                                            
		(2)  the lieutenant governor; and                                             
		(3)  the speaker of the house of representatives.                             
	(c)  This section expires January 1, 2010.