BILL ANALYSIS

H.B. 1955

By: Thompson

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that the state lottery law contains provisions that result in a circular inconsistency as it relates to a lottery operator and the requirement that a lottery operator be eligible for a sales agent license. This inconsistency presents a conflict in instances in which businesses are willing to allow sales of lottery products on their premises, but are unwilling to provide sales support or to service lottery kiosks or self-service terminals. H.B. 1955 seeks  to resolve the inconsistency while generating an opportunity for the state to increase revenue for the foundation school fund.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1955 amends the Government Code to provide, in the requirement that a person with whom the executive director of the Texas Lottery Commission contracts to operate a lottery be eligible for a sales agent license, that the provision making certain persons ineligible for a sales agent license is inapplicable to an officer or employee of a lottery operator. The bill authorizes the executive director to contract with a lottery operator to act as a sales retailer or to license a lottery operator as a sales agent under terms, conditions, and rates and at locations approved by the executive director.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.