BILL ANALYSIS

C.S.H.B. 1790

By: Guillen

Licensing & Administrative Procedures

Committee Report (Substituted)

BACKGROUND AND PURPOSE

There have been calls to allow the Texas Lottery Commission to seek out sponsors and sell advertising space. It has been suggested that the extra revenue derived from such partnerships could be beneficial to both the lottery commission and the state as a whole. C.S.H.B. 1790 seeks to provide the lottery commission with that authority.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

C.S.H.B. 1790 amends the Government Code to authorize the Texas Lottery Commission to contract with one or more for-profit businesses to advertise or promote the lottery. The bill authorizes the name, trademark, logo, or other identifying brand feature of a for-profit business with which the lottery commission contracts to be included in advertisements or promotional materials for the lottery. The bill authorizes the executive director of the lottery commission to sell space for advertising on lottery equipment or products or through any medium, requires each advertisement to be approved by the executive director before space for the advertisement is sold, and requires proceeds from the sale of advertising space to be deposited into the state lottery account. The bill prohibits the executive director from approving an advertisement that promotes the sale of tobacco or alcoholic beverages or that is directed at persons younger than 18 years of age.

EFFECTIVE DATE

September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 1790 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute expands the items on which the executive director may sell space for advertising from lottery tickets to lottery equipment or products and authorizes the executive director to sell space for advertising through any medium.

The substitute includes a requirement for each advertisement to be approved by the executive director before space for the advertisement is sold. 

The substitute includes a prohibition against an advertisement that is directed at persons younger than 18 years of age.