| 1 | 1 | | 89R12518 BEE-D |
|---|
| 2 | 2 | | By: Hall S.B. No. 1990 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to the operation and administration of the state lottery |
|---|
| 10 | 10 | | and repeal of the prohibition on imposing taxes on lottery tickets |
|---|
| 11 | 11 | | or prizes. |
|---|
| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 13 | 13 | | SECTION 1. Section 466.015(c), Government Code, is amended |
|---|
| 14 | 14 | | to read as follows: |
|---|
| 15 | 15 | | (c) The commission may adopt rules governing the |
|---|
| 16 | 16 | | establishment and operation of the lottery, including rules |
|---|
| 17 | 17 | | governing: |
|---|
| 18 | 18 | | (1) the type of lottery games to be conducted; |
|---|
| 19 | 19 | | (2) subject to Section 466.251(d), the price of each |
|---|
| 20 | 20 | | ticket; |
|---|
| 21 | 21 | | (3) the number of winning tickets and amount of the |
|---|
| 22 | 22 | | prize paid on each winning ticket; |
|---|
| 23 | 23 | | (4) the frequency of the drawing or selection of a |
|---|
| 24 | 24 | | winning ticket; |
|---|
| 25 | 25 | | (5) the number and types of locations at which a ticket |
|---|
| 26 | 26 | | may be sold; |
|---|
| 27 | 27 | | (6) the method to be used in selling a ticket; |
|---|
| 28 | 28 | | (7) the use of vending machines or electronic or |
|---|
| 29 | 29 | | mechanical devices of any kind, other than machines or devices that |
|---|
| 30 | 30 | | dispense currency or coins as prizes; |
|---|
| 31 | 31 | | (8) the manner of paying a prize to the holder of a |
|---|
| 32 | 32 | | winning ticket; |
|---|
| 33 | 33 | | (9) the investigation of possible violations of this |
|---|
| 34 | 34 | | chapter or any rule adopted under this chapter; |
|---|
| 35 | 35 | | (10) the means of advertising to be used for the |
|---|
| 36 | 36 | | lottery; |
|---|
| 37 | 37 | | (11) the qualifications of vendors of lottery services |
|---|
| 38 | 38 | | or equipment; |
|---|
| 39 | 39 | | (12) the confidentiality of information relating to |
|---|
| 40 | 40 | | the operation of the lottery, including: |
|---|
| 41 | 41 | | (A) trade secrets; |
|---|
| 42 | 42 | | (B) security measures, systems, or procedures; |
|---|
| 43 | 43 | | (C) security reports; |
|---|
| 44 | 44 | | (D) bids or other information regarding the |
|---|
| 45 | 45 | | commission's contracts, if disclosure of the information would |
|---|
| 46 | 46 | | impair the commission's ability to contract for facilities, goods, |
|---|
| 47 | 47 | | or services on terms favorable to the commission; |
|---|
| 48 | 48 | | (E) personnel information unrelated to |
|---|
| 49 | 49 | | compensation, duties, qualifications, or responsibilities; and |
|---|
| 50 | 50 | | (F) information obtained by commission security |
|---|
| 51 | 51 | | officers or investigators; |
|---|
| 52 | 52 | | (13) the development and availability of a model |
|---|
| 53 | 53 | | agreement governing the division of a prize among multiple |
|---|
| 54 | 54 | | purchasers of a winning ticket purchased through a group purchase |
|---|
| 55 | 55 | | or pooling arrangement; |
|---|
| 56 | 56 | | (14) the criteria to be used in evaluating bids for |
|---|
| 57 | 57 | | contracts for lottery facilities, goods, and services; or |
|---|
| 58 | 58 | | (15) any other matter necessary or desirable as |
|---|
| 59 | 59 | | determined by the commission, to promote and ensure: |
|---|
| 60 | 60 | | (A) the integrity, security, honesty, and |
|---|
| 61 | 61 | | fairness of the operation and administration of the lottery; and |
|---|
| 62 | 62 | | (B) the convenience of players and holders of |
|---|
| 63 | 63 | | winning tickets. |
|---|
| 64 | 64 | | SECTION 2. Section 466.027(b), Government Code, is amended |
|---|
| 65 | 65 | | to read as follows: |
|---|
| 66 | 66 | | (b) The commission shall: |
|---|
| 67 | 67 | | (1) determine the ticket price subject to Section |
|---|
| 68 | 68 | | 466.251(d), payout amounts, and manner in which the game is |
|---|
| 69 | 69 | | conducted; |
|---|
| 70 | 70 | | (2) make tickets to the game available for sale |
|---|
| 71 | 71 | | continuously to the extent practicable; and |
|---|
| 72 | 72 | | (3) change the design or theme of the game regularly to |
|---|
| 73 | 73 | | ensure that the game remains competitive with other instant-ticket |
|---|
| 74 | 74 | | lottery games offered by the commission. |
|---|
| 75 | 75 | | SECTION 3. Section 466.155(a), Government Code, is amended |
|---|
| 76 | 76 | | to read as follows: |
|---|
| 77 | 77 | | (a) After a hearing, the director shall deny an application |
|---|
| 78 | 78 | | for a license or the commission shall suspend or revoke a license if |
|---|
| 79 | 79 | | the director or commission, as applicable, finds that the applicant |
|---|
| 80 | 80 | | or sales agent: |
|---|
| 81 | 81 | | (1) is an individual who: |
|---|
| 82 | 82 | | (A) has been convicted of a felony, criminal |
|---|
| 83 | 83 | | fraud, gambling or a gambling-related offense, or a misdemeanor |
|---|
| 84 | 84 | | involving moral turpitude, if less than 10 years has elapsed since |
|---|
| 85 | 85 | | the termination of the sentence, parole, mandatory supervision, or |
|---|
| 86 | 86 | | probation served for the offense; |
|---|
| 87 | 87 | | (B) is or has been a professional gambler; |
|---|
| 88 | 88 | | (C) is married to an individual: |
|---|
| 89 | 89 | | (i) described in Paragraph (A) or (B); or |
|---|
| 90 | 90 | | (ii) who is currently delinquent in the |
|---|
| 91 | 91 | | payment of any state tax; |
|---|
| 92 | 92 | | (D) is an officer or employee of the commission |
|---|
| 93 | 93 | | or a lottery operator; or |
|---|
| 94 | 94 | | (E) is a spouse, child, brother, sister, or |
|---|
| 95 | 95 | | parent residing as a member of the same household in the principal |
|---|
| 96 | 96 | | place of residence of a person described by Paragraph (D); |
|---|
| 97 | 97 | | (2) is not an individual, and an individual described |
|---|
| 98 | 98 | | in Subdivision (1): |
|---|
| 99 | 99 | | (A) is an officer or director of the applicant or |
|---|
| 100 | 100 | | sales agent; |
|---|
| 101 | 101 | | (B) holds more than 10 percent of the stock in the |
|---|
| 102 | 102 | | applicant or sales agent; |
|---|
| 103 | 103 | | (C) holds an equitable interest greater than 10 |
|---|
| 104 | 104 | | percent in the applicant or sales agent; |
|---|
| 105 | 105 | | (D) is a creditor of the applicant or sales agent |
|---|
| 106 | 106 | | who holds more than 10 percent of the applicant's or sales agent's |
|---|
| 107 | 107 | | outstanding debt; |
|---|
| 108 | 108 | | (E) is the owner or lessee of a business that the |
|---|
| 109 | 109 | | applicant or sales agent conducts or through which the applicant |
|---|
| 110 | 110 | | will conduct a ticket sales agency; |
|---|
| 111 | 111 | | (F) shares or will share in the profits, other |
|---|
| 112 | 112 | | than stock dividends, of the applicant or sales agent; or |
|---|
| 113 | 113 | | (G) participates in managing the affairs of the |
|---|
| 114 | 114 | | applicant or sales agent; |
|---|
| 115 | 115 | | (3) has been finally determined to be delinquent in |
|---|
| 116 | 116 | | the payment of a tax or other money collected by the comptroller, |
|---|
| 117 | 117 | | the Texas Workforce Commission, or the Texas Alcoholic Beverage |
|---|
| 118 | 118 | | Commission; |
|---|
| 119 | 119 | | (4) is a person whose location for the sales agency is: |
|---|
| 120 | 120 | | (A) a location licensed for games of bingo under |
|---|
| 121 | 121 | | Chapter 2001, Occupations Code; |
|---|
| 122 | 122 | | (B) on land that is owned by: |
|---|
| 123 | 123 | | (i) this state; or |
|---|
| 124 | 124 | | (ii) a political subdivision of this state |
|---|
| 125 | 125 | | and on which is located a public primary or secondary school, an |
|---|
| 126 | 126 | | institution of higher education, or an agency of the state; [or] |
|---|
| 127 | 127 | | (C) a location for which a person holds a wine and |
|---|
| 128 | 128 | | malt beverage retailer's permit, mixed beverage permit, mixed |
|---|
| 129 | 129 | | beverage permit with a retailer late hours certificate, private |
|---|
| 130 | 130 | | club registration permit, or private club registration permit with |
|---|
| 131 | 131 | | a retailer late hours certificate issued under Chapter 25, 28, 29, |
|---|
| 132 | 132 | | or 32, Alcoholic Beverage Code, other than a location for which a |
|---|
| 133 | 133 | | person holds a wine and malt beverage retailer's permit issued |
|---|
| 134 | 134 | | under Chapter 25, Alcoholic Beverage Code, that derives less than |
|---|
| 135 | 135 | | 30 percent of the location's gross receipts from the sale or service |
|---|
| 136 | 136 | | of alcoholic beverages; or |
|---|
| 137 | 137 | | (D) a location within 800 feet of the campus of a |
|---|
| 138 | 138 | | church or a public, private, or open-enrollment charter school; or |
|---|
| 139 | 139 | | (5) has violated this chapter or a rule adopted under |
|---|
| 140 | 140 | | this chapter. |
|---|
| 141 | 141 | | SECTION 4. Section 466.251, Government Code, is amended by |
|---|
| 142 | 142 | | adding Subsection (d) to read as follows: |
|---|
| 143 | 143 | | (d) The commission or lottery operator may not set a retail |
|---|
| 144 | 144 | | price for an instant-ticket lottery game in an amount greater than |
|---|
| 145 | 145 | | $20 per ticket. |
|---|
| 146 | 146 | | SECTION 5. Subchapter F, Chapter 266, Government Code, is |
|---|
| 147 | 147 | | amended by adding Section 466.257 to read as follows: |
|---|
| 148 | 148 | | Sec. 466.257. PROHIBITED VENDING MACHINE SALES. A ticket |
|---|
| 149 | 149 | | may not be sold through a ticket dispensing machine that dispenses |
|---|
| 150 | 150 | | lottery tickets without the assistance of a sales agent's |
|---|
| 151 | 151 | | personnel. |
|---|
| 152 | 152 | | SECTION 6. Section 466.355, Government Code, is amended by |
|---|
| 153 | 153 | | adding Subsection (d) to read as follows: |
|---|
| 154 | 154 | | (d) Notwithstanding any other provision of this section, |
|---|
| 155 | 155 | | not less than 40 percent of the total revenue received from the sale |
|---|
| 156 | 156 | | of tickets and license and application fees under this chapter |
|---|
| 157 | 157 | | shall be deposited to the credit of: |
|---|
| 158 | 158 | | (1) the foundation school fund; and |
|---|
| 159 | 159 | | (2) the fund for veterans' assistance established by |
|---|
| 160 | 160 | | Section 434.017. |
|---|
| 161 | 161 | | SECTION 7. Section 466.004, Government Code, is repealed. |
|---|
| 162 | 162 | | SECTION 8. As soon as practicable after the effective date |
|---|
| 163 | 163 | | of this Act, the Texas Lottery Commission shall adopt, modify, or |
|---|
| 164 | 164 | | repeal rules as necessary to implement the changes in law made by |
|---|
| 165 | 165 | | this Act. |
|---|
| 166 | 166 | | SECTION 9. Section 466.155(a), Government Code, as amended |
|---|
| 167 | 167 | | by this Act, applies only to a sales agent license issued or renewed |
|---|
| 168 | 168 | | on or after September 1, 2025. |
|---|
| 169 | 169 | | SECTION 10. Section 466.355, Government Code, as amended by |
|---|
| 170 | 170 | | this Act, applies only to a transfer from the state lottery account |
|---|
| 171 | 171 | | made on or after the effective date of this Act. |
|---|
| 172 | 172 | | SECTION 11. This Act takes effect September 1, 2025. |
|---|