Texas 2025 - 89th Regular

Texas Senate Bill SB1988 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R11183 BEE-D
2	2	By: Hall S.B. No. 1988
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the abolishment of the state lottery.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. ABOLISHMENT OF STATE LOTTERY
12	12	SECTION 1.01. Section 467.002, Government Code, is amended
13	13	to read as follows:
14	14	Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
15	15	subject to review under Chapter 325 (Texas Sunset Act). Unless
16	16	continued in existence as provided by that chapter, the commission
17	17	is abolished and this chapter[, Chapter 466 of this code,] and
18	18	Chapter 2001, Occupations Code, expire September 1, 2029.
19	19	SECTION 1.02. Sections 467.024(a) and (c), Government Code,
20	20	are amended to read as follows:
21	21	(a) An individual is not eligible to be an appointed member
22	22	of the commission if the individual:
23	23	(1) is registered, certified, or licensed by a
24	24	regulatory agency in the field of bingo [or lottery];
25	25	(2) owns or controls, directly or indirectly, more
26	26	than a 10 percent interest in a business entity or other
27	27	organization regulated by the commission or receiving funds from
28	28	the commission;
29	29	(3) is employed by or participates in the management
30	30	of a business entity or other organization regulated by or
31	31	receiving funds from the commission;
32	32	(4) uses or receives a substantial amount of tangible
33	33	goods, services, or funds from the commission, other than
34	34	compensation or reimbursement authorized by law for commission
35	35	membership, attendance, or expenses;
36	36	(5) is an officer, employee, or paid consultant of a
37	37	Texas trade association in the field of bingo [or lottery];
38	38	(6) is required to register as a lobbyist under
39	39	Chapter 305 because of the person's activities for compensation on
40	40	behalf of a profession related to the operation of the commission;
41	41	(7) is married to an individual described by
42	42	Subdivisions (2)-(6);
43	43	(8) has been convicted of a felony or of any crime
44	44	involving moral turpitude; or
45	45	(9) is not a citizen of the United States.
46	46	(c) A person may not be a commission employee employed in a
47	47	"bona fide executive, administrative, or professional capacity,"
48	48	as that phrase is used for purposes of establishing an exemption to
49	49	the overtime provisions of the federal Fair Labor Standards Act of
50	50	1938 (29 U.S.C. Section 201 et seq.), if:
51	51	(1) the person is an officer, employee, or paid
52	52	consultant of a Texas trade association in the field of bingo [or
53	53	lottery]; or
54	54	(2) the person's spouse is an officer, manager, or paid
55	55	consultant of a Texas trade association in the field of bingo [or
56	56	lottery].
57	57	SECTION 1.03. Section 467.025(a), Government Code, is
58	58	amended to read as follows:
59	59	(a) A commission member may not:
60	60	(1) accept any employment or remuneration from [:
61	61	[(A) a person that has a significant financial
62	62	interest in the lottery; or
63	63	[(B)] a bingo commercial lessor, bingo
64	64	distributor, or bingo manufacturer;
65	65	(2) play any [lottery or] bingo game conducted in this
66	66	state;
67	67	(3) accept or be entitled to accept any part of the
68	68	winnings to be paid from a [lottery or] bingo game conducted in this
69	69	state;
70	70	(4) use the member's official authority to affect the
71	71	result of an election or nomination for public office; or
72	72	(5) directly or indirectly coerce, attempt to coerce,
73	73	command, or advise a person to pay, lend, or contribute anything of
74	74	value to another person for political purposes.
75	75	SECTION 1.04. Section 467.031, Government Code, is amended
76	76	to read as follows:
77	77	Sec. 467.031. BINGO DIVISION [DIVISIONS]. The commission
78	78	shall establish a division [separate divisions] to oversee bingo
79	79	[and the state lottery].
80	80	SECTION 1.05. Section 467.035(a), Government Code, is
81	81	amended to read as follows:
82	82	(a) The commission may not employ or continue to employ a
83	83	person who owns a financial interest in [:
84	84	[(1)] a bingo commercial lessor, bingo distributor, or
85	85	bingo manufacturer[; or
86	86	[(2) a lottery sales agency or a lottery operator].
87	87	SECTION 1.06. Sections 467.101(a) and (c), Government Code,
88	88	are amended to read as follows:
89	89	(a) The commission has broad authority and shall exercise
90	90	strict control and close supervision over all activities authorized
91	91	and conducted in this state under[:
92	92	[(1)] Chapter 2001, Occupations Code[; and
93	93	[(2) Chapter 466 of this code].
94	94	(c) The commission also has the powers and duties granted
95	95	under[:
96	96	[(1)] Chapter 2001, Occupations Code[; and
97	97	[(2) Chapter 466 of this code].
98	98	SECTION 1.07. Section 467.108(a), Government Code, is
99	99	amended to read as follows:
100	100	(a) A former commission member, former executive director,
101	101	or former director may not[:
102	102	[(1) for compensation, represent a person that has
103	103	made or intends to make a bid to operate the lottery before the
104	104	commission before the second anniversary of the date that the
105	105	person's service in office or employment with the commission
106	106	ceases;
107	107	[(2)] represent any person or receive compensation for
108	108	services rendered on behalf of any person regarding a particular
109	109	matter in which the former officer or employee participated during
110	110	the period of service or employment with the commission, either
111	111	through personal involvement or because the matter was within the
112	112	scope of the officer's or employee's official responsibility[; or
113	113	[(3) for compensation communicate directly with a
114	114	member of the legislative branch to influence legislation on behalf
115	115	of a person that has a significant financial interest in the
116	116	lottery, before the second anniversary of the date that the
117	117	person's service in office or employment with the commission
118	118	ceases].
119	119	SECTION 1.08. Section 467.111(f), Government Code, is
120	120	amended to read as follows:
121	121	(f) The commission shall prepare a report on the trends and
122	122	issues identified under Subsection (e) and make the report
123	123	available to the public. The commission shall address the
124	124	identified trends and issues, including trends and issues related
125	125	to the regulation [of lottery operations under Chapter 466 and] of
126	126	bingo under Chapter 2001, Occupations Code.
127	127	SECTION 1.09. The following provisions of the Government
128	128	Code are repealed:
129	129	(1) Chapter 466;
130	130	(2) Section 467.001(9); and
131	131	(3) Sections 467.106 and 467.107.
132	132	SECTION 1.10. (a) Subject to Subsection (b) of this
133	133	section, on January 1, 2026:
134	134	(1) the lottery division of the Texas Lottery
135	135	Commission is abolished and all division powers and duties related
136	136	to lottery prize payments, penalties, enforcement provisions, and
137	137	any necessary continued operations under Chapter 466, Government
138	138	Code, as it existed immediately before the effective date of this
139	139	Act, and other law are transferred to the Texas Lottery Commission;
140	140	(2) all obligations, rights, contracts, bonds,
141	141	appropriations, records, and property of the lottery division are
142	142	transferred to the commission;
143	143	(3) a rule, policy, procedure, or decision related to
144	144	lottery prize payments, penalties, enforcement provisions, and any
145	145	necessary continued operations of the lottery division continues in
146	146	effect until superseded by a later act of the commission; and
147	147	(4) a reference in law to the lottery division means
148	148	the commission.
149	149	(b) Any lottery division funds that on January 1, 2026, are
150	150	allocated to specific lottery operations shall be deposited in the
151	151	state treasury and may be used only for Foundation School Program
152	152	purposes.
153	153	SECTION 1.11. (a) Not later than October 1, 2025, the Texas
154	154	Lottery Commission shall adopt a comprehensive transition plan for
155	155	the transfer described by Section 1.10 of this article and identify
156	156	any essential lottery division personnel necessary for the
157	157	continued payment of lottery prizes and assessment and enforcement
158	158	of penalties.
159	159	(b) This section takes effect September 1, 2025.
160	160	SECTION 1.12. (a) Notwithstanding the repeal by this Act of
161	161	Chapter 466, Government Code, that chapter as it existed
162	162	immediately before the effective date of this Act continues in
163	163	effect for the payment of lottery prizes and the assessment and
164	164	enforcement of penalties until each lottery prize and installment
165	165	prize payment is made to the lottery prize winner entitled to the
166	166	payment and each penalty assessment is finally determined as
167	167	required by that chapter and rules adopted under that chapter as
168	168	they existed immediately before the effective date of this Act.
169	169	(b) On or after the effective date of this Act, a lottery
170	170	sales agent may not sell or offer to sell a lottery ticket for a
171	171	lottery game authorized under Chapter 466, Government Code, as
172	172	repealed by this Act.
173	173	SECTION 1.13. The changes in law made by this article apply
174	174	to an offense committed on or after the effective date of this Act.
175	175	An offense committed before that date is governed by the law as it
176	176	existed on the date the offense was committed, and the former law is
177	177	continued in effect for that purpose.
178	178	ARTICLE 2. CONFORMING AMENDMENTS
179	179	SECTION 2.01. Article 2A.001, Code of Criminal Procedure,
180	180	is amended to conform to Section 2, Chapter 624 (H.B. 4372), Section
181	181	1, Chapter 870 (H.B. 3981), Section 1, Chapter 950 (S.B. 1727), and
182	182	Section 1, Chapter 984 (S.B. 2612), Acts of the 88th Legislature,
183	183	Regular Session, 2023, and further amended to read as follows:
184	184	Art. 2A.001. PEACE OFFICERS GENERALLY. The following are
185	185	peace officers:
186	186	(1) a sheriff, a sheriff's deputy, or a reserve deputy
187	187	sheriff who holds a permanent peace officer license issued under
188	188	Chapter 1701, Occupations Code;
189	189	(2) a constable, a deputy constable, or a reserve
190	190	deputy constable who holds a permanent peace officer license issued
191	191	under Chapter 1701, Occupations Code;
192	192	(3) a marshal or police officer of a municipality or a
193	193	reserve municipal police officer who holds a permanent peace
194	194	officer license issued under Chapter 1701, Occupations Code;
195	195	(4) a ranger, officer, or member of the reserve
196	196	officer corps commissioned by the Public Safety Commission and the
197	197	director of the Department of Public Safety;
198	198	(5) an investigator of a district attorney's, criminal
199	199	district attorney's, or county attorney's office;
200	200	(6) a law enforcement agent of the Texas Alcoholic
201	201	Beverage Commission;
202	202	(7) a member of an arson investigating unit
203	203	commissioned by a municipality, a county, or the state;
204	204	(8) an officer commissioned under Section 37.081 or
205	205	37.0818, Education Code, or Subchapter E, Chapter 51, Education
206	206	Code;
207	207	(9) an officer commissioned by the Texas Facilities
208	208	Commission;
209	209	(10) a law enforcement officer commissioned by the
210	210	Parks and Wildlife Commission;
211	211	(11) an officer commissioned under Chapter 23,
212	212	Transportation Code;
213	213	(12) a municipal park and recreational patrol officer
214	214	or security officer;
215	215	(13) a security officer or investigator commissioned
216	216	as a peace officer by the comptroller;
217	217	(14) an officer commissioned by a water control and
218	218	improvement district under Section 49.216, Water Code;
219	219	(15) an officer commissioned by a board of trustees
220	220	under Chapter 54, Transportation Code;
221	221	(16) an investigator commissioned by the Texas Medical
222	222	Board;
223	223	(17) an officer commissioned by:
224	224	(A) the board of managers of the Dallas County
225	225	Hospital District, the Tarrant County Hospital District, the Bexar
226	226	County Hospital District, or the El Paso County Hospital District
227	227	under Section 281.057, Health and Safety Code;
228	228	(B) the board of directors of the Ector County
229	229	Hospital District under Section 1024.117, Special District Local
230	230	Laws Code;
231	231	(C) the board of directors of the Midland County
232	232	Hospital District of Midland County, Texas, under Section 1061.121,
233	233	Special District Local Laws Code; or
234	234	(D) the board of hospital managers of the Lubbock
235	235	County Hospital District of Lubbock County, Texas, under Section
236	236	1053.113, Special District Local Laws Code;
237	237	(18) a county park ranger commissioned under
238	238	Subchapter E, Chapter 351, Local Government Code;
239	239	(19) an investigator employed by the Texas Racing
240	240	Commission;
241	241	(20) an officer commissioned under Chapter 554,
242	242	Occupations Code;
243	243	(21) an officer commissioned by the governing body of
244	244	a metropolitan rapid transit authority under Section 451.108,
245	245	Transportation Code, or a regional transportation authority under
246	246	Section 452.110, Transportation Code;
247	247	(22) an investigator commissioned by the attorney
248	248	general under Section 402.009, Government Code;
249	249	(23) [a security officer or investigator commissioned
250	250	as a peace officer under Chapter 466, Government Code;
251	251	[(24)] an officer appointed by an appellate court
252	252	under Subchapter F, Chapter 53, Government Code;
253	253	(24) [(25)] an officer commissioned by the state fire
254	254	marshal under Chapter 417, Government Code;
255	255	(25) [(26)] an investigator commissioned by the
256	256	commissioner of insurance under Section 701.104, Insurance Code;
257	257	(26) [(27)] an officer appointed by the inspector
258	258	general of [apprehension specialist or inspector general
259	259	commissioned by] the Texas Juvenile Justice Department [as an
260	260	officer] under Section 242.102 [or 243.052], Human Resources Code;
261	261	(27) [(28)] an officer appointed by the inspector
262	262	general of the Texas Department of Criminal Justice under Section
263	263	493.019, Government Code;
264	264	(28) [(29)] an investigator commissioned by the Texas
265	265	Commission on Law Enforcement under Section 1701.160, Occupations
266	266	Code;
267	267	(29) [(30)] a fire marshal or any related officer,
268	268	inspector, or investigator commissioned by a county under
269	269	Subchapter B, Chapter 352, Local Government Code;
270	270	(30) [(31)] a fire marshal or any officer, inspector,
271	271	or investigator commissioned by an emergency services district
272	272	under Chapter 775, Health and Safety Code;
273	273	(31) a fire marshal or any officer, inspector, or
274	274	investigator of a municipality who holds a permanent peace officer
275	275	license issued under Chapter 1701, Occupations Code;
276	276	(32) an officer commissioned by the State Board of
277	277	Dental Examiners under Section 254.013, Occupations Code, subject
278	278	to the limitations imposed by that section; and
279	279	(33) an Alamo complex ranger commissioned by the
280	280	General Land Office under Section 31.0515, Natural Resources Code,
281	281	subject to the limitations imposed by that section [investigator
282	282	commissioned by the Texas Juvenile Justice Department as an officer
283	283	under Section 221.011, Human Resources Code].
284	284	SECTION 2.02. Section 411.108(a-2), Government Code, is
285	285	amended to read as follows:
286	286	(a-2) Subject to Sections 411.087[, 466.201,] and
287	287	467.036(b) of this code and Section 2001.3025, Occupations Code,
288	288	and consistent with the public policy of this state, the Texas
289	289	Lottery Commission is entitled to:
290	290	(1) obtain through the Federal Bureau of Investigation
291	291	criminal history record information maintained or indexed by that
292	292	bureau that pertains to a person described by Subsection [(a) or]
293	293	(a-1); and
294	294	(2) obtain from the department or any other criminal
295	295	justice agency in this state criminal history record information
296	296	maintained by the department or that criminal justice agency that
297	297	relates to a person described by Subsection [(a) or] (a-1).
298	298	SECTION 2.03. Section 434.017(a), Government Code, is
299	299	amended to read as follows:
300	300	(a) The fund for veterans' assistance is a special fund in
301	301	the state treasury outside the general revenue fund. The fund is
302	302	composed of:
303	303	(1) money transferred to the fund at the direction of
304	304	the legislature;
305	305	(2) gifts and grants contributed to the fund;
306	306	(3) the earnings of the fund;
307	307	(4) [money transferred to the fund from proceeds of
308	308	the lottery game operated under Section 466.027 or transferred to
309	309	the fund under Section 466.408(b);
310	310	[(5)] money deposited to the credit of the fund under
311	311	Section 502.1746, Transportation Code;
312	312	(5) [(6)] money deposited to the credit of the fund
313	313	under Sections 521.008 and 522.0295, Transportation Code;
314	314	(6) [(7)] money deposited to the credit of the fund
315	315	under Section 12.007, Parks and Wildlife Code; and
316	316	(7) [(8)] money deposited to the credit of the fund
317	317	under Section 411.1741.
318	318	SECTION 2.04. Section 544.0456(c), Government Code, as
319	319	effective April 1, 2025, is amended to read as follows:
320	320	(c) On a monthly basis, the commission shall:
321	321	(1) [conduct electronic data matches with the Texas
322	322	Lottery Commission to determine whether a recipient of supplemental
323	323	nutrition assistance benefits or a recipient's household member
324	324	received reportable lottery winnings;
325	325	[(2)] use the database system developed under Section
326	326	532.0201 to:
327	327	(A) match vital statistics unit death records
328	328	with a list of individuals eligible for financial assistance or
329	329	supplemental nutrition assistance benefits; and
330	330	(B) ensure that any individual receiving
331	331	assistance under either program who is discovered to be deceased
332	332	has the individual's eligibility for assistance promptly
333	333	terminated; and
334	334	(2) [(3)] review the out-of-state electronic benefit
335	335	transfer card transactions a recipient of supplemental nutrition
336	336	assistance benefits made to determine whether those transactions
337	337	indicate a possible change in the recipient's residence.
338	338	SECTION 2.05. Section 572.003(b), Government Code, is
339	339	amended to read as follows:
340	340	(b) The term means:
341	341	(1) the banking commissioner of the Texas Department
342	342	of Banking [Banking Commissioner of The Banking Department of
343	343	Texas];
344	344	(2) the administrative director of the Office of Court
345	345	Administration of the Texas Judicial System;
346	346	(3) the chief executive of the Office of Public
347	347	Utility Counsel;
348	348	(4) the executive director of the State Bar of Texas;
349	349	(5) [the director of the lottery division of the Texas
350	350	Lottery Commission;
351	351	[(6) the deputy in charge of the department of
352	352	security in the lottery division of the Texas Lottery Commission;
353	353	[(7)] the director of the bingo division of the Texas
354	354	Lottery Commission; or
355	355	(6) [(8)] the secretary of state.
356	356	SECTION 2.06. Section 2113.102(a), Government Code, is
357	357	amended to read as follows:
358	358	(a) A state agency may not use appropriated money to
359	359	contract with a person to audit the financial records or accounts of
360	360	the agency except as provided by:
361	361	(1) Subsections (b), (c), and (d); and
362	362	(2) [Chapter 466, pertaining to the state lottery;
363	363	[(3)] Chapter 2306, pertaining to the Texas Department
364	364	of Housing and Community Affairs[; and
365	365	[(4) Chapter 361, Transportation Code, pertaining to
366	366	the Texas Turnpike Authority division of the Texas Department of
367	367	Transportation].
368	368	SECTION 2.07. Section 47.02(c), Penal Code, is amended to
369	369	read as follows:
370	370	(c) It is a defense to prosecution under this section that
371	371	the actor reasonably believed that the conduct:
372	372	(1) was permitted under Chapter 2001, Occupations
373	373	Code;
374	374	(2) was permitted under Chapter 2002, Occupations
375	375	Code;
376	376	(3) was permitted under Chapter 2004, Occupations
377	377	Code;
378	378	(4) [consisted entirely of participation in the state
379	379	lottery authorized by the State Lottery Act (Chapter 466,
380	380	Government Code);
381	381	[(5)] was permitted under Subtitle A-1, Title 13,
382	382	Occupations Code (Texas Racing Act); or
383	383	(5) [(6)] consisted entirely of participation in a
384	384	drawing for the opportunity to participate in a hunting, fishing,
385	385	or other recreational event conducted by the Parks and Wildlife
386	386	Department.
387	387	SECTION 2.08. Section 47.09(a), Penal Code, is amended to
388	388	read as follows:
389	389	(a) It is a defense to prosecution under this chapter that
390	390	the conduct[:
391	391	[(1)] was authorized under:
392	392	(1) [(A)] Chapter 2001, Occupations Code;
393	393	(2) [(B)] Chapter 2002, Occupations Code;
394	394	(3) [(C)] Chapter 2004, Occupations Code;
395	395	(4) [(D)] Subtitle A-1, Title 13, Occupations Code
396	396	(Texas Racing Act); or
397	397	(5) [(E)] Chapter 280, Finance Code[;
398	398	[(2) consisted entirely of participation in the state
399	399	lottery authorized by Chapter 466, Government Code; or
400	400	[(3) was a necessary incident to the operation of the
401	401	state lottery and was directly or indirectly authorized by:
402	402	[(A) Chapter 466, Government Code;
403	403	[(B) the lottery division of the Texas Lottery
404	404	Commission;
405	405	[(C) the Texas Lottery Commission; or
406	406	[(D) the director of the lottery division of the
407	407	Texas Lottery Commission].
408	408	SECTION 2.09. The following provisions are repealed:
409	409	(1) Section 9.406(k), Business & Commerce Code;
410	410	(2) Section 232.0021, Family Code;
411	411	(3) Section 411.108(a), Government Code;
412	412	(4) Section 467.030(b), Government Code;
413	413	(5) Section 2054.007, Government Code; and
414	414	(6) Section 2002.056(c), Occupations Code.
415	415	SECTION 2.10. The changes in law made by this article apply
416	416	to an offense committed on or after the effective date of this Act.
417	417	An offense committed before that date is governed by the law as it
418	418	existed on the date the offense was committed, and the former law is
419	419	continued in effect for that purpose.
420	420	ARTICLE 3. CONFLICT OF LAW; EFFECTIVE DATE
421	421	SECTION 3.01. To the extent of any conflict, this Act
422	422	prevails over another Act of the 89th Legislature, Regular Session,
423	423	2025, relating to nonsubstantive additions to and corrections in
424	424	enacted codes.
425	425	SECTION 3.02. This Act takes effect September 1, 2025.