3390 VETOES
Sincerely,
Harry Hughes
Governor
House Bill No. 198
AN ACT concerning
State Lottery - Compensation of Agents
FOR the purpose of increasing the compensation received by
lottery sales agents by a certain amount; and
clarifying language.
May 27, 1980
Honorable Benjamin L. Cardin
Speaker of the House of Delegates
State House
Annapolis, Maryland 21404
Dear Mr. Speaker:
In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed House Bill 198.
House Bill 198 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 commissions. 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
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