0001
 1                 TRANSCRIPT OF PROCEEDINGS
 2                         BEFORE THE
 3                  TEXAS LOTTERY COMMISSION
 4                       AUSTIN, TEXAS
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 6   16 TEXAS ADMINISTRATIVE CODE §
                                  §
 7   §402.406, 402.705, 402.100_ _§
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 9           PUBLIC COMMENT HEARING ON RULEMAKINGS
10                WEDNESDAY, FEBRUARY 6, 2008
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12                  BE IT REMEMBERED THAT on Wednesday, the
13   6th day of February 2008, the above-entitled public
14   comment hearing was held from 9:32 a.m. to 9:38 a.m.,
15   at the Offices of the Texas Lottery Commission, 611
16   East 6th Street, Austin, Texas  78701, before SANDRA
17   JOSEPH, ASSISTANT GENERAL COUNSEL.  The following
18   proceedings were reported via machine shorthand by
19   Aloma J. Kennedy, a Certified Shorthand Reporter of
20   the State of Texas, and the following proceedings were
21   had:
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0002
 1                        APPEARANCES
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 3   ASSISTANT GENERAL COUNSEL:
               Ms. Sandra Joseph
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 5   BINGO OPERATIONS DIVISION DIRECTOR:
               Mr. Phil Sanderson
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0003
 1                   P R O C E E D I N G S
 2                WEDNESDAY, FEBRUARY 6, 2008
 3                        (9:32 a.m.)
 4                  MS. JOSEPH:  All right.  I would like
 5   to call the hearing to order, please.
 6                  My name is Sandra Joseph, Assistant
 7   General Counsel.  With me is Mr. Phil Sanderson,
 8   Director of the Bingo Operations Division.
 9                  We're here this morning to receive
10   public comments on three proposed rulemakings.  Those
11   are the repeal of Section 402.406 relating to
12   exemptions from licensing requirements, the repeal of
13   Section 402.705 relating to compliance review, and
14   proposed amendments to Section 402.100 relating to
15   definitions.
16                  At this time I would like to ask anyone
17   who plans to offer testimony or public comment to be
18   sworn.  If you would raise your right hand.
19                  (Witnesses sworn by Ms. Joseph)
20                  MS. JOSEPH:  And two persons answered
21   affirmatively.
22                  All right.  At this time I have one
23   witness affirmation form.  If anyone else would like
24   to offer comments, I would appreciate your filling out
25   a form and handing it to me.
0004
 1                  Mr. Bresnen, would you like to offer
 2   your comments?
 3       COMMENTS ON BEHALF OF THE BINGO INTEREST GROUP
 4                  MR. BRESNEN:  Thank you.  My name is
 5   Steve Bresnen.  I'm here on behalf of the Bingo
 6   Interest Group.
 7                  Are we doing all three rules together?
 8                  MS. JOSEPH:  We can.
 9                  MR. BRESNEN:  Okay.  If that's okay
10   with you, I'll just do them all at once.
11                  We are here -- we have no position on
12   the rule that repeals the exemptions that relate to
13   senior citizens.
14                  The rule about compliance audits, we
15   understand that that is a clean-up, based on a rules
16   review, and that just basically leaves in place the
17   compliance audit rules that were done earlier, which
18   we supported, and that this is redundant material, so
19   we would support that repeal.  That would be 402.705.
20                  Have I got the number right, Phil?
21                  MS. JOSEPH:  Yes, you do.
22                  MR. BRESNEN:  Okay.  And then finally I
23   would like to say just a little bit more about the
24   proposal to amend the definitions sections of the
25   rules and speak in support of 402.100.
0005
 1                  The Bingo Interest Group has always
 2   been in support of doing the maximum that we can for
 3   bingo, within the existing statutory and
 4   constitutional provisions.  Any product that we can
 5   get into Texas that's available in other states to
 6   give the charities a wider variety of things to do
 7   with their players is obviously helpful to bingo.
 8   Some places may choose to use the same old stuff but
 9   other places want new and interesting products.  And
10   we need the widest variety of offerings to be able to
11   be able to bring those into the marketplace.
12                  As we understand it, the current
13   definition has some limitations in it that require an
14   electronic card face to be different from paper faces
15   that could be sold in Texas, and we see no reason for
16   the distinction.  So eliminating things that have no
17   reasonable basis is a good thing in our view.
18                  It has been related to me that there
19   may be some concern with striking the last sentence in
20   what is currently 402.100, Subsection (6), the last
21   sentence, which says that a card-minding device shall
22   not be a video lottery machine as defined by provision
23   of House Bill 3021 from the 1995 regular session.
24                  That particular provision of the law is
25   self-enforcing.  You-all could not authorize that
0006
 1   anyway, pursuant to that statute, it's my opinion.  I
 2   think there's at least a question under the Attorney
 3   General's opinion with respect to electronic bingo
 4   that even the Legislature couldn't authorize video
 5   lottery machine as defined in House Bill 3021.  Now,
 6   I'm only remarking that he said that.  I don't want
 7   anybody to put me on record saying that I support that
 8   opinion or agree with it at all.  And, in fact, we may
 9   at some point in time want to challenge that opinion.
10                  But, nonetheless, I don't think
11   striking that from the statute -- from the rule has
12   any legal effect, because the statute remains in
13   effect.  So cleaning this up to make it clear that
14   whatever paper products can be sold -- the same thing
15   can be duplicated in an electronic format -- we think
16   is in the interest of bingo overall, and we would like
17   to see that done.
18                  I would be happy to answer any
19   questions.
20                  MS. JOSEPH:  Do you have any questions,
21   Mr. Sanderson?
22                  MR. BRESNEN:  I would say one more
23   quick thing; and that is, I appreciate the petitioners
24   for bringing this forward.  We need all good eyes
25   reading these rules and seeing things that don't need
0007
 1   to be there.
 2                  I'm sorry, Phil.  I will be happy to
 3   answer any questions.
 4                  MR. SANDERSON:  That's fine.  I have no
 5   questions.
 6                  MR. BRESNEN:  Okay.  Great!
 7                  MS. JOSEPH:  Thank you, Mr. Bresnen.
 8                  I have no other appearance slips at
 9   this point.  Is there anyone else who would like to
10   offer comments on any of these proposed rulemakings?
11                  Seeing no one, it is now 9:38, and this
12   hearing is adjourned.  Thank you.
13                  (Hearing adjourned:  9:38 a.m.)
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0008
 1                   C E R T I F I C A T E
 2   STATE OF TEXAS    )
 3   COUNTY OF TRAVIS  )
 4                  I, Aloma J. Kennedy, a Certified
 5   Shorthand Reporter in and for the State of Texas, do
 6   hereby certify that the above-mentioned matter
 7   occurred as hereinbefore set out.
 8                  I FURTHER CERTIFY THAT the proceedings
 9   of such were reported by me or under my supervision,
10   later reduced to typewritten form under my supervision
11   and control and that the foregoing pages are a full,
12   true and correct transcription of the original notes.
13                 IN WITNESS WHEREOF, I have hereunto set
14   my hand and seal this 20th day of February 2008.
15   
16   
                           ________________________________
17                         Aloma J. Kennedy
                           Certified Shorthand Reporter
18                         CSR No. 494 - Expires 12/31/08
19                         Firm Certification No. 276
                           Kennedy Reporting Service, Inc.
20                         Cambridge Tower
                           1801 Lavaca Street, Suite 115
21                         Austin, Texas  78701
                           512.474.2233
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