1 1 BEFORE THE 2 TEXAS LOTTERY COMMISSION 3 AUSTIN, TEXAS 4 5 6 7 IN RE: ) PROPOSED AMENDMENTS TO ) 8 TEXAS LOTTERY §401.320 ALL) OR NOTHING ON-LINE GAME ) 9 RULE ) 10 11 12 PUBLIC COMMENT HEARING 13 Wednesday, July 17, 2013 14 15 16 17 BE IT REMEMBERED THAT at 11:02 a.m., on 18 Wednesday, the 17th day of July 2013, the above-entitled 19 matter came on for hearing at the Texas Lottery 20 Commission, 611 E. Sixth Street Commission Auditorium, 21 Austin, Texas, before BOB BIARD, and the following 22 proceedings were reported via machine shorthand by Lou 23 Ray, Certified Shorthand Reporter. 24 25 2 1 P R O C E E D I N G S 2 WEDNESDAY, JULY 17, 2013 3 (11:02 a.m.) 4 5 MR. BIARD: Good morning. My name is 6 Bob Biard. I'm General Counsel of the Texas Lottery 7 Commission, and to my right is Robert Tirloni, who is 8 products manager -- that's correct, right? 9 MR. TIRLONI: Right. 10 MR. BIARD: -- for the Lottery Operations 11 Division. The time is 11:02 on July 17, 2013. This is 12 a hearing to receive public comments regarding proposed 13 amendments to 16 Texas Administrative Code Section 14 401.320 relating to the All or Nothing On-Line Game 15 Rule. 16 The proposed amendments and notice of this 17 hearing was published in the June 28, 2013 issue of the 18 Texas Register at 38 Texas Register Pages 4128 and 4235, 19 and on the Texas Lottery Commission's website. 20 The Executive Directer proposed these 21 amendments pursuant to the authority set forth in Texas 22 Government Code Section 466.015(a). And this matter and 23 these amendments were discussed at the Commission's Open 24 Meeting on June 11, 2013. 25 We have received no witness affirmation 3 1 sheets. There is no one -- no person from the public in 2 attendance at this moment. 3 In case we have any late arrivals, we will 4 recess this hearing for approximately 10 minutes. We'll 5 come back on the record to see if there are any 6 comments. Thank you. 7 (Recess: 11:03 a.m. to 11:12 a.m.) 8 MR. BIARD: All right. We're back on the 9 record. It is 11:12 a.m. on July 17, 2013, and there 10 are no persons in attendance to comment on the rule. 11 I will briefly state that the purpose of 12 the proposed amendments is to establish a liability cap 13 of $5 million for the top prize in the All or Nothing 14 Game. Under the existing rule, prior to these proposed 15 amendments, the prize of the guaranteed amount of 16 $250,000, and under the proposed amendments in any 17 drawing for the number of top prize winning plays is 18 greater than 20 the top prize shall be paid on a 19 parimutuel rather than a fixed prize basis, and the 20 liability cap of $5 million will be divided equally by 21 the number of top prize winning plays. 22 I will note that the Staff plans to 23 recommend a clarifying change to the published proposed 24 text, replacing the term top prize winners where it 25 appears in Section 401.320(g)(1)(A) to top prize winning 4 1 plays. This is a change that is -- more accurately 2 reflects how the parimutuel prize will be calculated. 3 Comments to this proposed rule change may be sent to me 4 at P.O. Box 16630, Austin, Texas, 78761, or by facsimile 5 at 512.344.5189, or by email at 6 legal.input@lottery.state.tx.us through Monday, July 7 29th. 8 Having no further business, I'll adjourn 9 this hearing. Thank you. 10 (Proceedings concluded at 11:15 a.m.) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 1 C E R T I F I C A T E 2 STATE OF TEXAS ) 3 COUNTY OF TRAVIS ) 4 I, Lou Ray, Certified Shorthand Reporter 5 in and for the State of Texas, do hereby certify 6 that the above-mentioned matter occurred as 7 hereinbefore set out. 8 I FURTHER CERTIFY THAT the proceedings of 9 such were reported by me or under my supervision, 10 later reduced to typewritten form under my 11 supervision and control and that the foregoing pages 12 are a full, true, and correct transcription of the 13 original notes. 14 IN WITNESS WHEREOF, I have hereunto set my 15 hand and seal this 26th day of July 2013. 16 17 _______________________________ 18 LOU RAY Certified Shorthand Reporter 19 CSR No. 1791 - Expires 12/31/13 20 Firm Registration No. 276 Kennedy Reporting Service, Inc. 21 1016 La Posada Drive, Suite 294 Austin, Texas 78752 22 512.474.2233 23 24 Job No. 110664 25