Texas 2025 - 89th Regular

Texas Senate Bill SB2402 Compare Versions

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

Old	New	Differences
1	1	89R5125 PRL-D
2	2	By: Middleton, et al. S.B. No. 2402
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the continuation and functions of the Texas Lottery
10	10	Commission.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 466.3051(a), Government Code, is amended
13	13	to read as follows:
14	14	(a) A sales agent or an employee of a sales agent commits an
15	15	offense if with criminal negligence the person [intentionally or
16	16	knowingly] sells or offers to sell a ticket to an individual that
17	17	the person knows is younger than 18 years of age.
18	18	SECTION 2. Section 467.002, Government Code, is amended to
19	19	read as follows:
20	20	Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
21	21	subject to review under Chapter 325 (Texas Sunset Act). Unless
22	22	continued in existence as provided by that chapter, the commission
23	23	is abolished [and this chapter, Chapter 466 of this code, and
24	24	Chapter 2001, Occupations Code, expire] September 1, 2037 [2025].
25	25	SECTION 3. Subchapter A, Chapter 467, Government Code, is
26	26	amended by adding Section 467.003 to read as follows:
27	27	Sec. 467.003. LIMITED-SCOPE SUNSET REVIEW OF COMMISSION.
28	28	(a) Separate from the review of the commission required under
29	29	Section 467.002, the commission is subject to a limited-scope
30	30	review under Chapter 325 (Texas Sunset Act) of the commission's
31	31	compliance with the statutory changes enacted by the 89th
32	32	Legislature and the management actions adopted by the Sunset
33	33	Advisory Commission as part of its review of state agencies
34	34	scheduled to be abolished in 2025. The limited-scope review
35	35	required under this section must be completed before the regular
36	36	session of the 91st Legislature is convened.
37	37	(b) This section expires September 1, 2029.
38	38	SECTION 4. Section 467.0255, Government Code, is amended by
39	39	amending Subsection (b) and adding Subsection (d) to read as
40	40	follows:
41	41	(b) The training program must provide the person with
42	42	information regarding:
43	43	(1) the law governing [legislation that created the]
44	44	commission operations;
45	45	(2) the programs, functions, rules, and budget of the
46	46	commission;
47	47	(3) the scope of and limitations on the rulemaking
48	48	authority of the commission;
49	49	(4) the results of the most recent formal audit of the
50	50	commission;
51	51	(5) [(4)] the requirements of:
52	52	(A) laws relating to open meetings, public
53	53	information, administrative procedure, and disclosing conflicts of
54	54	interest; and
55	55	(B) other laws applicable to members of a state
56	56	policy-making body in performing their duties; and
57	57	(6) [(5)] any applicable ethics policies adopted by
58	58	the commission or the Texas Ethics Commission.
59	59	(d) The executive director shall create a training manual
60	60	that includes the information required by Subsection (b). The
61	61	executive director shall distribute a copy of the training manual
62	62	annually to each member of the commission. Each member of the
63	63	commission shall sign and submit to the executive director a
64	64	statement acknowledging the member received and has reviewed the
65	65	training manual.
66	66	SECTION 5. Section 467.033, Government Code, is amended to
67	67	read as follows:
68	68	Sec. 467.033. DIVISION DIRECTORS. (a) The executive
69	69	director shall employ a lottery director to oversee the lottery
70	70	[each] division. The lottery [A division] director serves at the
71	71	will of the executive director and is specifically exempted from
72	72	Chapter 654.
73	73	(b) The commission shall employ a bingo director to oversee
74	74	the bingo division as described by Section 2001.052, Occupations
75	75	Code. The bingo director serves at the will of the commission and
76	76	is specifically exempted from Chapter 654.
77	77	SECTION 6. Section 467.101, Government Code, is amended by
78	78	adding Subsections (d), (e), and (f) to read as follows:
79	79	(d) The commission shall establish subcommittees of the
80	80	commission to improve opportunities for commission members to
81	81	engage commission personnel and oversee policy development. The
82	82	subcommittees at a minimum must include:
83	83	(1) an audit subcommittee;
84	84	(2) a legal subcommittee; and
85	85	(3) a planning subcommittee.
86	86	(e) The commission by rule shall establish a formal
87	87	procedure for:
88	88	(1) resolving questions regarding the commission's
89	89	statutory and rulemaking authority; and
90	90	(2) addressing the commission's approach to statutory
91	91	ambiguity.
92	92	(f) The procedure established under Subsection (e) must at a
93	93	minimum provide a process for the commission to:
94	94	(1) request an opinion from the attorney general; and
95	95	(2) present questions regarding the commission's
96	96	statutory and rulemaking authority to the legislature through the
97	97	report required under Section 467.113.
98	98	SECTION 7. Subchapter C, Chapter 467, Government Code, is
99	99	amended by adding Sections 467.112 and 467.113 to read as follows:
100	100	Sec. 467.112. LOTTERY ADVISORY COMMITTEE. (a) The
101	101	commission shall establish a lottery advisory committee to provide
102	102	external expertise on the lottery. The commission shall appoint to
103	103	the advisory committee members who represent a balance of
104	104	interests, including representatives of:
105	105	(1) the public;
106	106	(2) licensed sales agents;
107	107	(3) interest groups with divergent viewpoints on the
108	108	lottery and lottery operations; and
109	109	(4) entities associated with or benefiting from the
110	110	lottery's contributions to this state.
111	111	(b) A lottery advisory committee member serves at the
112	112	pleasure of the commission.
113	113	(c) A lottery advisory committee member is not entitled to
114	114	receive compensation for serving as a member. A member is entitled
115	115	to reimbursement for reasonable expenses incurred in performing
116	116	duties as a member.
117	117	(d) The lottery advisory committee shall:
118	118	(1) advise the commission on the needs and problems of
119	119	this state's lottery industry;
120	120	(2) comment on proposed lottery rules during
121	121	development and before final adoption unless an emergency requires
122	122	immediate action by the commission;
123	123	(3) annually report to the commission on the advisory
124	124	committee's activities;
125	125	(4) annually brief the commission on advancements and
126	126	challenges in this state's lottery industry; and
127	127	(5) perform other duties as determined by the
128	128	commission.
129	129	(e) The commission shall adopt rules to govern the lottery
130	130	advisory committee, including rules on:
131	131	(1) member composition, appointment procedures, and
132	132	terms;
133	133	(2) quorum requirements for advisory committee
134	134	meetings;
135	135	(3) additional representation requirements for and
136	136	qualifications of advisory committee members, including experience
137	137	or geographic location;
138	138	(4) any necessary training requirements for advisory
139	139	committee members; and
140	140	(5) the method for the public to provide to the
141	141	commission comments on issues the advisory committee considers.
142	142	(f) The lottery advisory committee shall meet quarterly or
143	143	at the commission's request.
144	144	(g) The commission may not adopt a rule that restricts the
145	145	lottery advisory committee from discussing any lottery-related
146	146	topic.
147	147	Sec. 467.113. ANNUAL REPORT. (a) The commission annually
148	148	shall submit a report to the governor and the legislature that:
149	149	(1) includes a summary of lottery revenue, prize
150	150	disbursements, and other expenses for the state fiscal year
151	151	preceding the report;
152	152	(2) includes a comprehensive business plan to guide
153	153	the commission's major initiatives that contains:
154	154	(A) specific goals for the commission; and
155	155	(B) an evaluation of:
156	156	(i) the commission's overall performance;
157	157	(ii) the effectiveness of specific
158	158	commission programs and initiatives;
159	159	(iii) the efficiency of commission
160	160	operations;
161	161	(iv) the amount of lottery revenue
162	162	generated for state purposes other than the payment of prizes; and
163	163	(v) the factors affecting the amount of
164	164	lottery revenue received and disbursed, including ticket sales and
165	165	administrative efficiency;
166	166	(3) addresses the trends and issues related to
167	167	violations of state laws under the commission's jurisdiction
168	168	identified in complaints under Section 467.111(e) and identified
169	169	through an inspection, audit, or other means, including the
170	170	regulation of lottery operations under Chapter 466 and of bingo
171	171	under Chapter 2001, Occupations Code;
172	172	(4) includes for the preceding calendar year
173	173	charitable bingo information on:
174	174	(A) the total amount reported by licensed
175	175	authorized organizations of adjusted gross receipts from bingo
176	176	operations under Chapter 2001, Occupations Code;
177	177	(B) the total amount reported by licensed
178	178	authorized organizations of net proceeds from bingo operations
179	179	under Chapter 2001, Occupations Code; and
180	180	(C) a comparison of the amounts reported under
181	181	Paragraphs (A) and (B), including the percentage the net proceeds
182	182	represents compared to the adjusted gross receipts; and
183	183	(5) provides biennial recommendations to the
184	184	legislature on emerging trends, technological advancements,
185	185	regulatory developments, and market dynamics affecting the lottery
186	186	and bingo industries.
187	187	(b) For purposes of Subsection (a)(4):
188	188	(1) the term "adjusted gross receipts" means the
189	189	amount remaining after deducting prizes paid but excluding prize
190	190	fees collected from bingo players; and
191	191	(2) the commission shall determine the total amount of
192	192	net proceeds in a manner that does not reduce gross receipts by the
193	193	amount of rent paid for the rental of bingo premises by a licensed
194	194	authorized organization to another licensed authorized
195	195	organization if the other organization pays rent for the premises
196	196	to a licensed commercial lessor.
197	197	SECTION 8. Section 2001.052, Occupations Code, is amended
198	198	by amending Subsection (b) and adding Subsection (c) to read as
199	199	follows:
200	200	(b) The director of bingo operations shall administer the
201	201	bingo division under the direction of the executive director of the
202	202	commission.
203	203	(c) At each regular commission meeting, the director of
204	204	bingo operations shall report to the commission on bingo operations
205	205	and regulation.
206	206	SECTION 9. Section 2001.057, Occupations Code, is amended
207	207	by amending Subsections (a), (e), (f), and (g) and adding
208	208	Subsection (h) to read as follows:
209	209	(a) The commission shall [may] appoint a bingo advisory
210	210	committee consisting of nine members. The commission shall appoint
211	211	members representing a balance of interests including
212	212	representatives of:
213	213	(1) the public;
214	214	(2) charities that operate bingo games; and
215	215	(3) commercial and charity lessors that participate in
216	216	the bingo industry.
217	217	(e) The bingo advisory committee shall [may]:
218	218	(1) advise the commission on the needs and problems of
219	219	the state's bingo industry;
220	220	(2) comment on rules involving bingo during their
221	221	development and before final adoption unless an emergency requires
222	222	immediate action by the commission;
223	223	(3) report annually to the commission on the
224	224	committee's activities; [and]
225	225	(4) annually brief the commission on advancements and
226	226	challenges in this state's bingo industry; and
227	227	(5) perform other duties as determined by the
228	228	commission.
229	229	(f) The bingo advisory committee shall [may] meet quarterly
230	230	or at the commission's request.
231	231	(g) The commission shall [may] adopt rules:
232	232	(1) to govern the operations of the bingo advisory
233	233	committee; and
234	234	(2) to prohibit the committee's involvement in
235	235	committee member selection.
236	236	(h) The commission may not adopt a rule that prohibits or
237	237	restricts the bingo advisory committee from discussing any
238	238	bingo-related topic. This subsection may not be construed to
239	239	require action by the commission on each item submitted by the
240	240	committee or otherwise alter the commission's decision-making
241	241	authority.
242	242	SECTION 10. Section 2001.059(b), Occupations Code, is
243	243	amended to read as follows:
244	244	(b) The commission shall respond to a request under
245	245	Subsection (a) not later than the later of the second commission
246	246	meeting or the 60th day after the date a request is received, unless
247	247	the commission determines that the request does not contain
248	248	sufficient facts to provide an answer on which the requestor may
249	249	rely. In that event, the commission shall request additional
250	250	information from the requestor not later than the 10th day after the
251	251	date the request is received. If the commission requests
252	252	additional information, the commission shall respond to the request
253	253	not later than the later of the second commission meeting or the
254	254	60th day after the date additional information is received pursuant
255	255	to the request for additional information.
256	256	SECTION 11. Section 2001.152, Occupations Code, is amended
257	257	by amending Subsection (b) and adding Subsection (c) to read as
258	258	follows:
259	259	(b) Notwithstanding Subsection (a) and subject to
260	260	Subsection (c), a person who was a licensed commercial lessor on
261	261	June 10, 1989, whose license has been in effect continuously since
262	262	that date, and who is otherwise eligible for the license may renew
263	263	the license.
264	264	(c) The commission may place an administrative hold on the
265	265	license of a licensed commercial lessor described by Subsection (b)
266	266	for a period the commission determines not to exceed 10 years. If
267	267	the administrative hold on the license remains on the last day of
268	268	that period:
269	269	(1) the commission shall remove the administrative
270	270	hold; and
271	271	(2) the lessor is not eligible to renew the license as
272	272	a continuous license holder under Subsection (b).
273	273	SECTION 12. Section 2001.557, Occupations Code, is amended
274	274	by adding Subsection (c) to read as follows:
275	275	(c) In developing and implementing a policy or procedure
276	276	under Subsection (b), the commission shall consult with the bingo
277	277	advisory committee established under Section 2001.057 to
278	278	collaboratively define and implement specific fiscal
279	279	accountability criteria for inspections of premises.
280	280	SECTION 13. Section 2001.560(c-1), Occupations Code, is
281	281	amended to read as follows:
282	282	(c-1) The commission by rule shall develop a policy for
283	283	auditing license holders. The bingo division shall use audit risk
284	284	analysis procedures established by the commission to:
285	285	(1) annually identify the [which] license holders
286	286	[are] most at risk of violating this chapter or rules adopted under
287	287	this chapter, including consideration of license holder compliance
288	288	history in the identification; and
289	289	(2) develop a plan for auditing the identified license
290	290	holders that includes:
291	291	(A) a schedule for the audits of the identified
292	292	license holders;
293	293	(B) procedures to annually update the plan based
294	294	on successive risk analyses; and
295	295	(C) a completion date for each audit that is not
296	296	later than the fifth anniversary of the date the license holder was
297	297	identified as a candidate for audit.
298	298	SECTION 14. The following provisions are repealed:
299	299	(1) Section 466.016, Government Code;
300	300	(2) Section 466.028, Government Code;
301	301	(3) Section 467.111(f), Government Code;
302	302	(4) Section 2001.059(f), Occupations Code; and
303	303	(5) Section 2001.060, Occupations Code.
304	304	SECTION 15. (a) Except as provided by Subsection (b) of
305	305	this section, Section 467.0255, Government Code, as amended by this
306	306	Act, applies to a member of the Texas Lottery Commission appointed
307	307	before, on, or after the effective date of this Act.
308	308	(b) A member of the Texas Lottery Commission who, before the
309	309	effective date of this Act, completed the training program required
310	310	by Section 467.0255, Government Code, as that law existed before
311	311	the effective date of this Act, is only required to complete
312	312	additional training on the subjects added by this Act to the
313	313	training program required by Section 467.0255, Government Code. A
314	314	member described by this subsection may not vote, deliberate, or be
315	315	counted as a member in attendance at a meeting of the Texas Lottery
316	316	Commission held on or after December 1, 2025, until the member
317	317	completes the additional training.
318	318	SECTION 16. (a) The change in law made by this Act applies
319	319	only to an offense committed on or after the effective date of this
320	320	Act. An offense committed before the effective date of this Act is
321	321	governed by the law in effect on the date the offense was committed,
322	322	and the former law is continued in effect for that purpose. For
323	323	purposes of this section, an offense was committed before the
324	324	effective date of this Act if any element of the offense occurred
325	325	before that date.
326	326	(b) Section 2001.152, Occupations Code, as amended by this
327	327	Act, applies to a license placed on an administrative hold on or
328	328	after the effective date of this Act.
329	329	SECTION 17. As soon as practicable after the effective date
330	330	of this Act, the Texas Lottery Commission shall:
331	331	(1) establish audit, legal, and planning
332	332	subcommittees as required by Section 467.101(d), Government Code,
333	333	as added by this Act;
334	334	(2) appoint members to the lottery advisory committee
335	335	and adopt rules to govern the operations of the committee as
336	336	required by Section 467.112, Government Code, as added by this Act;
337	337	and
338	338	(3) adopt rules necessary to implement this Act.
339	339	SECTION 18. This Act takes effect September 1, 2025.