HARRY HUGHES, Governor

3369

Senate Bill No. 750

AN ACT concerning

State Lottery - Agent's Commission

FOR the purpose of providing for certain bonus commissions
for State lottery agents; and clarifying language.

May 27, 1980
Honorable James Clark, Jr.
President of the Senate
State House
Annapolis, Maryland 21404

Dear Mr. President:

In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed Senate Bill 750.

Senate Bill 750 increases the compensation to be
received by daily lottery sales agents by an additional one
half of one percent commission on claims paid, with a
minimum commission of 25 cents per claim paid.

Currently, pursuant to statute, a daily lottery sales
agent receives a commission of 5 percent of his annual gross
sales. Additionally, the agent receives 20 cents per claim
paid. The increased commission guaranteed under the
provisions of this bill will create a reduction in State
revenues of $644,644 in fiscal year 1981 which is projected
to grow to an approximate $942,823 revenue reduction in
fiscal year 1985.

Comparison of the lottery operations of other states
indicates that Maryland agents receive substantially higher
average net earnings. As the attached chart indicates the
average daily lottery sales agent in Maryland earns in
excess of $20,000 each year in lottery commission. One of
the concerns expressed by proponents of this legislation is
the inability to generate sufficient revenue from lottery
sales to pay claims. I am advised that the average pay out
of a daily sales agent is only 50 percent of his receipts.
However, when an agent has not collected an amount of money
to equal a large payout occasioned by the drawing of a
popular number, the Maryland State Lottery Agency currently
reimburses the agents or deposits directly into an agent's
bank account funds to cover expenditures.

Because of the high level of compensation currently
paid to the agents, the number of persons seeking to become
agents, and the many other programs worthy of scarce State