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Texas House Bill HB3201

Texas 2025 - 89th Regular

Texas House Bill HB3201 Compare Versions

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11 89R12913 BEE-F
22 By: Bucy H.B. No. 3201
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the licensing and regulation of lottery couriers by the
1010 Texas Lottery Commission; requiring an occupational license;
1111 authorizing a fee.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Section 411.108, Government Code, is amended by
1414 adding Subsection (a-3) to read as follows:
1515 (a-3) The Texas Lottery Commission is entitled to obtain
1616 criminal history record information as provided by Subsection (a-2)
1717 that relates to a person licensed under Subchapter K, Chapter 466.
1818 SECTION 2. Section 466.002, Government Code, is amended by
1919 adding Subdivision (5-a) to read as follows:
2020 (5-a) "Lottery courier" means a person licensed under
2121 this chapter to act as an agent for a player in purchasing a ticket.
2222 SECTION 3. Section 466.201(a), Government Code, is amended
2323 to read as follows:
2424 (a) The commission is entitled to conduct an investigation
2525 of and is entitled to obtain criminal history record information
2626 maintained by the Department of Public Safety, the Federal Bureau
2727 of Investigation Identification Division, or another law
2828 enforcement agency to assist in the investigation of:
2929 (1) a sales agent or an applicant for a sales agent
3030 license;
3131 (2) a person required to be named in a license
3232 application;
3333 (3) a lottery operator or prospective lottery
3434 operator;
3535 (4) an employee of a lottery operator or prospective
3636 lottery operator, if the employee is or will be directly involved in
3737 lottery operations;
3838 (5) a person who manufactures or distributes lottery
3939 equipment or supplies, or a representative of a person who
4040 manufactures or distributes lottery equipment or supplies offered
4141 to the lottery;
4242 (6) a person who has submitted a written bid or
4343 proposal to the commission in connection with the procurement of
4444 goods or services by the commission, if the amount of the bid or
4545 proposal exceeds $500;
4646 (7) an employee or other person who works for or will
4747 work for a sales agent or an applicant for a sales agent license;
4848 (8) a person who proposes to enter into or who has a
4949 contract with the commission to supply goods or services to the
5050 commission; [or]
5151 (9) a lottery courier or an applicant for a lottery
5252 courier license; or
5353 (10) if a person described in Subdivisions (1) through
5454 (9) [(8)] is not an individual, an individual who:
5555 (A) is an officer or director of the person;
5656 (B) holds more than 10 percent of the stock in the
5757 person;
5858 (C) holds an equitable interest greater than 10
5959 percent in the person;
6060 (D) is a creditor of the person who holds more
6161 than 10 percent of the person's outstanding debt;
6262 (E) is the owner or lessee of a business that the
6363 person conducts or through which the person will conduct
6464 lottery-related activities;
6565 (F) shares or will share in the profits, other
6666 than stock dividends, of the person;
6767 (G) participates in managing the affairs of the
6868 person; or
6969 (H) is an employee of the person who is or will be
7070 involved in:
7171 (i) selling tickets; or
7272 (ii) handling money from the sale of
7373 tickets.
7474 SECTION 4. Section 466.204, Government Code, is amended to
7575 read as follows:
7676 Sec. 466.204. ACCESS TO INTERNAL REVENUE SERVICE
7777 INFORMATION. The executive director may obtain information
7878 relating to a person's qualification for licensing, employment, or
7979 contracting under this chapter from the Internal Revenue Service
8080 under a contract between the comptroller and the Internal Revenue
8181 Service on:
8282 (1) a sales agent or an applicant for a sales agent
8383 license;
8484 (2) an employee or prospective employee of the
8585 commission;
8686 (3) a person required to be named in a license
8787 application;
8888 (4) a lottery operator or prospective lottery
8989 operator;
9090 (5) an employee of a lottery operator or prospective
9191 lottery operator, if the employee is or will be directly involved in
9292 lottery operations;
9393 (6) a person who manufactures or distributes lottery
9494 equipment or supplies, or a representative of a person who
9595 manufactures or distributes lottery equipment or supplies offered
9696 to the lottery;
9797 (7) a person who has submitted a written bid or
9898 proposal to the commission in connection with the procurement of
9999 goods or services by the commission;
100100 (8) an employee or other person who works for or will
101101 work for a sales agent or an applicant for a sales agent license;
102102 [or]
103103 (9) a person who proposes to enter into or who has a
104104 contract with the commission to supply goods or services to the
105105 commission;
106106 (10) a lottery courier or an applicant for a lottery
107107 courier license; or
108108 (11) an employee or other person who works for or will
109109 work for a lottery courier or an applicant for a lottery courier
110110 license.
111111 SECTION 5. Chapter 466, Government Code, is amended by
112112 adding Subchapter K to read as follows:
113113 SUBCHAPTER K. LICENSING AND OPERATION
114114 OF LOTTERY COURIERS
115115 Sec. 466.501. LICENSE REQUIRED; ISSUANCE. (a) A person may
116116 not act as an agent for a player in purchasing a ticket unless the
117117 person holds a lottery courier license issued under this
118118 subchapter.
119119 (b) The director may issue a lottery courier license only to
120120 a person the director finds has the experience, character, and
121121 general fitness to ensure the person's participation as a lottery
122122 courier will not detract from the integrity, security, honesty, and
123123 fairness of the operation of the lottery.
124124 (c) As a condition to issuance of a lottery courier license,
125125 a lottery courier shall implement, before offering a service as a
126126 lottery courier, any independent testing required by commission
127127 rule.
128128 Sec. 466.502. LICENSE APPLICATION; FEE. (a) An applicant
129129 for a license under this subchapter must:
130130 (1) apply to the division under rules adopted by the
131131 commission; and
132132 (2) provide:
133133 (A) information necessary to determine the
134134 applicant's eligibility for a lottery courier license, including
135135 whether the applicant demonstrates compliance with provisions of
136136 this chapter regulating ticket purchases; and
137137 (B) other information the commission considers
138138 necessary.
139139 (b) The applicant must include an application fee with each
140140 application. The director shall set the application fee in an
141141 amount at least sufficient to cover the costs incurred by the
142142 commission and by the Department of Public Safety to process the
143143 application.
144144 Sec. 466.503. DENIAL OF APPLICATION OR SUSPENSION OR
145145 REVOCATION OF LICENSE. (a) After a hearing, the director shall
146146 deny an application for a lottery courier license or the commission
147147 shall suspend or revoke a lottery courier license if the director or
148148 commission, as applicable, finds the applicant or lottery courier:
149149 (1) is an individual who:
150150 (A) has been convicted of a felony, criminal
151151 fraud, gambling or a gambling-related offense, or a misdemeanor
152152 involving moral turpitude, if less than 10 years has elapsed since
153153 the termination of the sentence, parole, mandatory supervision, or
154154 probation served for the offense;
155155 (B) is or has been a professional gambler;
156156 (C) is married to an individual:
157157 (i) described in Paragraph (A) or (B); or
158158 (ii) who is currently delinquent in the
159159 payment of any state tax;
160160 (D) is an officer or employee of the commission
161161 or a lottery operator; or
162162 (E) is a spouse, child, brother, sister, or
163163 parent residing as a member of the same household in the principal
164164 place of residence of a person described by Paragraph (D);
165165 (2) is not an individual, and an individual described
166166 in Subdivision (1):
167167 (A) is an officer or director of the applicant or
168168 lottery courier;
169169 (B) holds more than 10 percent of the stock in the
170170 applicant or lottery courier;
171171 (C) holds an equitable interest greater than 10
172172 percent in the applicant or lottery courier;
173173 (D) is a creditor of the applicant or lottery
174174 courier who holds more than 10 percent of the applicant's or lottery
175175 courier's outstanding debt;
176176 (E) is the owner or lessee of a business the
177177 applicant or lottery courier conducts or through which the
178178 applicant will conduct a lottery courier business;
179179 (F) shares or will share in the profits, other
180180 than stock dividends, of the applicant or lottery courier; or
181181 (G) participates in managing the affairs of the
182182 applicant or lottery courier;
183183 (3) has been finally determined to be delinquent in
184184 the payment of a tax or other money collected by the comptroller,
185185 the Texas Workforce Commission, or the Texas Alcoholic Beverage
186186 Commission;
187187 (4) is a person whose location for the lottery courier
188188 business is:
189189 (A) a location licensed for games of bingo under
190190 Chapter 2001, Occupations Code;
191191 (B) on land owned by:
192192 (i) this state; or
193193 (ii) a political subdivision of this state
194194 and on which is located a public primary or secondary school, an
195195 institution of higher education, or a state agency; or
196196 (C) a location for which a person holds a wine and
197197 malt beverage retailer's permit, mixed beverage permit, mixed
198198 beverage permit with a retailer late hours certificate, private
199199 club registration permit, or private club registration permit with
200200 a retailer late hours certificate issued under Chapter 25, 28, 29,
201201 or 32, Alcoholic Beverage Code, other than a location for which a
202202 person holds a wine and malt beverage retailer's permit issued
203203 under Chapter 25, Alcoholic Beverage Code, that derives less than
204204 30 percent of the location's gross receipts from the sale or service
205205 of alcoholic beverages; or
206206 (5) has violated this chapter or a rule adopted under
207207 this chapter.
208208 (b) If the director proposes to deny an application for a
209209 license or the commission proposes to suspend or revoke a license
210210 under this section, the applicant or lottery courier is entitled to
211211 written notice of the time and place of the hearing. A notice may be
212212 served on an applicant or lottery courier personally or sent by
213213 certified or registered mail, return receipt requested, to the
214214 person's mailing address as it appears on the commission's records.
215215 A notice must be served or mailed not later than the 20th day before
216216 the hearing date. The commission shall provide for a formal
217217 administrative hearings process.
218218 Sec. 466.504. PROHIBITED TRANSACTIONS. A lottery courier
219219 may not open an account or accept a request for lottery courier
220220 services from a person who is:
221221 (1) under 18 years of age;
222222 (2) an employee, officer, director, or direct or
223223 indirect owner of the lottery courier;
224224 (3) related within the first degree by consanguinity
225225 to an employee, officer, director, or direct or indirect owner of
226226 the lottery courier; or
227227 (4) identified on a restricted list, as prescribed by
228228 commission rule.
229229 Sec. 466.505. COMPLIANCE AUDITS; ANNUAL REPORTS. (a) At
230230 the sole expense of the lottery courier, the lottery courier at
231231 least annually shall contract with an independent auditor the
232232 commission approves for an audit of the lottery courier. On
233233 completion of the audit and the auditor's determination the lottery
234234 courier is in compliance with this subchapter, the auditor shall
235235 issue a certification of compliance to the lottery courier.
236236 (b) A lottery courier shall provide to the commission, not
237237 later than the 120th day after the last day of the lottery courier's
238238 fiscal year:
239239 (1) the lottery courier's financial statements audited
240240 in accordance with generally accepted auditing standards and a copy
241241 of the certificate of compliance issued as required under
242242 Subsection (a);
243243 (2) an evaluation of the lottery courier's management
244244 in accordance with the Standards for Attestation Engagements 18
245245 standard established by the American Institute of Certified Public
246246 Accountants; and
247247 (3) an anti-money laundering compliance statement on a
248248 form the commission prescribes and executed by the lottery
249249 courier's designated anti-money laundering compliance officer.
250250 Sec. 466.506. INSURANCE. A lottery courier shall maintain,
251251 with the limits, coverage requirements, and minimum insurer ratings
252252 prescribed by commission rule:
253253 (1) cyber liability insurance;
254254 (2) errors and omissions insurance; and
255255 (3) directors and officers liability insurance.
256256 Sec. 466.507. RESPONSIBLE GAMING PROTECTIONS. A lottery
257257 courier shall:
258258 (1) maintain a self-exclusion list and provide a
259259 mechanism for a player to register through the lottery courier to be
260260 excluded from the lottery courier's services;
261261 (2) ensure to the commission's satisfaction that any
262262 player on the lottery courier's self-exclusion list is prevented
263263 from requesting lottery courier services;
264264 (3) establish a limit approved by the commission on
265265 the number or amount of daily ticket purchases for all players using
266266 the lottery courier's services;
267267 (4) provide a system for an individual player to set a
268268 lower personal daily ticket purchase limit;
269269 (5) accept only the payment methods authorized for a
270270 lottery customer purchasing a ticket directly from a sales agent;
271271 and
272272 (6) provide player support to respond to player
273273 inquiries and disputes, as the commission prescribes.
274274 Sec. 466.508. ADVERTISING AND MARKETING. A lottery courier
275275 shall:
276276 (1) display prominently on the lottery courier's
277277 Internet website or mobile Internet application a problem gambling
278278 assistance message;
279279 (2) ensure the lottery courier's services are not
280280 advertised to individuals who have registered for the lottery
281281 courier's self-exclusion list; and
282282 (3) comply with the advertising guidelines of the
283283 North American Association of State and Provincial Lotteries.
284284 Sec. 466.509. RULES. The commission shall adopt rules to
285285 implement this subchapter, which must include rules prohibiting
286286 ticket sales:
287287 (1) on credit; or
288288 (2) to individuals:
289289 (A) under 18 years of age; or
290290 (B) not physically located in this state at the
291291 time of the sale.
292292 SECTION 6. Not later than February 1, 2026, the Texas
293293 Lottery Commission shall adopt the rules necessary to implement the
294294 changes in law made by this Act.
295295 SECTION 7. This Act takes effect September 1, 2025.