0001 1 TRANSCRIPT OF PROCEEDINGS 2 BEFORE THE 3 TEXAS LOTTERY COMMISSION 4 AUSTIN, TEXAS 5 PUBLIC COMMENT HEARING ON 16 TAC §401.308 6 (“CASH FIVE” DRAW GAME RULE) 7 8 9 10 MAY 9, 2018 11 9:30 a.m. 12 AT 13 TEXAS LOTTERY COMMISSION 14 611 East 6th Street Austin, Texas 78701 15 16 17 18 19 20 21 22 Proceedings reported by electronic sound recording; transcript prepared by Verbatim Reporting & Transcription 23 LLC. 24 25 0002 1 APPEARANCES 2 SPECIAL COUNSEL: Deanne Rienstra 3 DIRECTOR LOTTERY OPERATIONS DIVISION: Ryan S. Mindell 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0003 1 P R O C E E D I N G S 2 MS. RIENSTRA: I'm going on the record, 3 please. Good morning, the time is 9:30 a.m. on Wednesday, 4 May 9th, 2018. My name is Deanne Rienstra, and I am Special 5 Counsel for the Texas Lottery Commission. With me today is 6 Ryan Mindell, Lottery Operations Director of the Texas 7 Lottery Commission. 8 The purpose of this hearing is to receive 9 public comment on the proposed amendments to the Cash Five 10 Draw Game Rule found at 16 TAC §401.308. In addition to this 11 public comment hearing, the Commission is accepting written 12 comments by mail, email and facsimile. Written comments 13 should be submitted no later than Tuesday, May 29th, 2018. 14 This hearing notice was published in the Texas 15 Register on Friday, April 27th, 2018. 16 The purpose of the proposed amendments is to 17 change the Cash Five Game matrix, offer guaranteed fixed 18 prizes and set a liability limit for the Match Five top 19 prize. The new game matrix will change from the selection of 20 five numbers out of a field of 37 numbers, to a selection of 21 five numbers out of a field of 35 numbers. This matrix 22 change will improve the overall odds to win a prize in the 23 Cash Five game. 24 The proposed amendments also offer guaranteed 25 prizes per prize tier level for matching three or more of the 0004 1 drawn winning combination of numbers and will award a free 2 Cash Five quick pick at a $1 value for the fourth tier prize 3 level, in which a player matches two of the five numbers 4 selected in the drawing. The amendments also propose to set 5 a liability limit of $75,000 for the Match Five top prize in 6 the game. 7 The Match Five prize and the Cash Five game is 8 proposed to be a fixed amount of $25,000, unless the Match 9 Five number of winners is greater than three. Then, the 10 Match Five prize shall be paid on a parimutuel rather than 11 fixed prize basis, and the liability limit of $75,000 will be 12 divided equally by the number of Match Five winners. 13 The practice of setting a liability limit is a 14 common lottery industry practice for games that offer fixed 15 or guaranteed prizes. The cost of the ticket will remain at 16 $1 per play. 17 We have not received any witness affirmation 18 forms this morning. If anyone is here who has not turned in 19 an affirmation form, and they wish to speak, you may submit 20 that form now. 21 At this time we will take a 10-minute break 22 and then resume the hearing. Off the record at 9:33. 23 (Off record) 24 MS. RIENSTRA: Okay. We are back on the 25 record at 9:43. We still have no members of the public in 0005 1 attendance today, so I would like to thank everybody who is 2 here for attending the hearing. The time is 9:43 and we 3 stand adjourned. 4 (Adjourned and concluded at 9:43 a.m.) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0006 1 C E R T I F I C A T E 2 STATE OF TEXAS ) 3 COUNTY OF HARRIS ) 4 I, Kimberly C. McCright, Certified Vendor and 5 Notary in and for the State of Texas, do hereby certify that 6 the above-mentioned matter occurred as hereinbefore set out. 7 I FURTHER CERTIFY THAT the proceedings of such were 8 reported by me or under my supervision, later reduced to 9 typewritten form under my supervision and control and that 10 the foregoing pages are a full, true and correct 11 transcription of the original notes. 12 IN WITNESS WHEREOF, I have hereunto set my hand and 13 seal this 14th day of May, 2018. 14 15 /s/ Kimberly C. McCright Kimberly C. McCright 16 Certified Vendor and Notary Public 17 Verbatim Reporting & Transcription, LLC 1322 Space Park Drive, Suite C165 18 Houston, Texas 77058 281.724.8600 19 20 21 22 23 24 25