By: Hall S.B. No. 3070
(In the Senate - Filed May 12, 2025; May 12, 2025, read
first time and referred to Committee on State Affairs;
May 15, 2025, reported favorably by the following vote: Yeas 10,
Nays 0; May 15, 2025, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of the Texas Lottery Commission and the
transfer of the administration of the state lottery and the
licensing and regulation of charitable bingo to the Texas
Commission of Licensing and Regulation; creating a criminal
offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 411.093(a), Government Code, is amended
to read as follows:
(a) The Texas Department of Licensing and Regulation is
entitled to obtain criminal history record information as provided
by Subsection (b) that relates to:
(1) an applicant for or the holder of:
(A) a driver education instructor license under
Chapter 1001, Education Code;
(B) a license under Chapter 466;
(C) a license under Chapter 202, Occupations
Code;
(D) [(C)] a license under Chapter 401,
Occupations Code;
(E) [(D)] a license under Chapter 402,
Occupations Code; [or]
(F) a license under Chapter 2001, Occupations
Code; or
(G) [(E)] an instructor license or motorcycle
school license under Chapter 662, Transportation Code;
(2) a person who is:
(A) an applicant for or the holder of a license
under Chapter 91, Labor Code; or
(B) a controlling person, as defined by Chapter
91, Labor Code, of an entity described by Paragraph (A); or
(3) a person who:
(A) is an applicant for or the holder of a license
under Chapter 455, Occupations Code; or
(B) has an interest described under Section
455.1525(e), Occupations Code, in an entity described by Paragraph
(A).
SECTION 2. Section 411.467(d), Government Code, is amended
to read as follows:
(d) The department shall also send the alert to:
(1) any appropriate law enforcement agency;
(2) the Texas Department of Transportation;
(3) the Texas Department of Licensing and Regulation
[Lottery Commission]; and
(4) the Independent Bankers Association of Texas.
SECTION 3. Sections 466.002(1), (3), and (4), Government
Code, are amended to read as follows:
(1) "Commission" means the Texas [Lottery] Commission
of Licensing and Regulation.
(3) "Department" or "division [Division]" means the
Texas Department of Licensing and Regulation [lottery division
established by the commission under Chapter 467].
(4) "Director" or "executive [Executive] director"
means the executive director of the department [commission].
SECTION 4. Subchapter A, Chapter 466, Government Code, is
amended by adding Section 466.005 to read as follows:
Sec. 466.005. LIMITED-SCOPE SUNSET REVIEW OF STATE LOTTERY.
The Sunset Advisory Commission shall conduct a limited-scope review
of the state lottery during the state fiscal biennium ending August
31, 2027, in the manner provided by Chapter 325 (Texas Sunset Act).
The review must provide an evaluation and recommendations regarding
the continuation of the state lottery. Unless continued in
existence, the state lottery is abolished and this chapter expires
September 1, 2027.
SECTION 5. The heading to Section 466.014, Government Code,
is amended to read as follows:
Sec. 466.014. POWERS AND DUTIES OF DEPARTMENT [COMMISSION]
AND EXECUTIVE DIRECTOR.
SECTION 6. Sections 466.014(a) and (d), Government Code,
are amended to read as follows:
(a) The department [commission] and executive director have
broad authority and shall exercise strict control and close
supervision over all lottery games conducted in this state to
promote and ensure integrity, security, honesty, and fairness in
the operation and administration of the lottery.
(d) A contract between the department [division] and a
lottery operator under Subsection (b) must contain a provision
allowing the contract to be terminated without penalty if the
department [division] is abolished.
SECTION 7. Section 466.015(b), Government Code, is amended
to read as follows:
(b) The commission shall adopt rules to the extent they are
not inconsistent with Chapters 551 and 552 governing the:
(1) security for the lottery and the commission,
including the development of an internal security plan;
(2) apportionment of the total revenues from the sale
of tickets and from all other sources in the amounts provided by
this chapter;
(3) enforcement of prohibitions on the sale of tickets
to or by an individual younger than 18 years of age; and
(4) enforcement of prohibitions on a person playing or
facilitating the play of a lottery game by telephone or through an
Internet application or mobile Internet application in violation of
Section 466.318.
SECTION 8. Section 466.018, Government Code, is amended to
read as follows:
Sec. 466.018. INVESTIGATIONS. The attorney general, the
district attorney for Travis County, or the district attorney,
criminal district attorney, or county attorney performing the
duties of district attorney for the county in which the violation or
alleged violation occurred may investigate a violation or alleged
violation of this chapter and of the penal laws of this state by the
department [commission] or its employees, a sales agent, a lottery
vendor, or a lottery operator.
SECTION 9. Section 466.019, Government Code, is amended to
read as follows:
Sec. 466.019. ENFORCEMENT. (a) The executive director or
designated personnel of the department [commission] may
investigate violations of this chapter and violations of the rules
adopted under this chapter. After conducting investigations, the
executive director, a person designated by the department
[commission], or any law enforcement agency may file a complaint
with the district attorney of Travis County or with the district
attorney of the county in which a violation is alleged to have
occurred.
(b) The executive director has the administrative,
enforcement, and collection powers provided by Subtitle B, Title 2,
Tax Code, in regard to the lottery. For purposes of the application
of Title 2 of the Tax Code:
(1) the state's share of proceeds from the sale of
lottery tickets is treated as if it were a tax; and
(2) a power granted to the comptroller may be
exercised by the department [commission].
SECTION 10. Sections 466.020(a) and (d), Government Code,
are amended to read as follows:
(a) The executive director shall maintain a department of
security within the financial crimes intelligence center
established under Chapter 2312, Occupations Code [in the
commission]. The executive director shall appoint a deputy to
administer the department of security. The deputy must be
qualified by training and experience in law enforcement or security
to supervise, direct, and administer the activities of the
department of security.
(d) The Department of Public Safety, at the department's
[commission's] request, shall perform a full criminal background
investigation of a prospective deputy or investigator of the
department of security. The department [commission] shall
reimburse the Department of Public Safety for the actual costs of an
investigation.
SECTION 11. Section 466.022, Government Code, is amended to
read as follows:
Sec. 466.022. CONFIDENTIAL INFORMATION. (a) Except as
otherwise provided by law, all department [commission] records are
subject to public inspection in accordance with Chapter 552.
(b) In addition to department [commission] records excepted
from disclosure under Chapter 552, the following information is
confidential and is exempt from disclosure:
(1) security plans and procedures of the department
[commission] designed to ensure the integrity and security of the
operation of the lottery;
(2) information of a nature that is designed to ensure
the integrity and security of the selection of winning tickets or
numbers in the lottery, other than information describing the
general procedures for selecting winning tickets or numbers;
(3) the street address and telephone number of a prize
winner, if the prize winner has not consented to the release of the
information; and
(4) except as otherwise authorized by Section 466.411,
all personally identifiable information of a natural person who is:
(A) a lottery prize winner and who has chosen to
remain anonymous under Section 466.411; or
(B) an owner of a beneficial interest in a legal
entity that is a lottery prize winner and who has chosen to remain
anonymous under Section 466.411.
SECTION 12. Section 466.023(b), Government Code, is amended
to read as follows:
(b) An investigation report or other document submitted by
the Department of Public Safety to the department [commission]
becomes part of the investigative files of the department
[commission] and is subject to discovery by a person that is the
subject of the investigation report or other document.
SECTION 13. Section 466.026, Government Code, is amended to
read as follows:
Sec. 466.026. AMBER ALERT. On receipt of notice by the
Department of Public Safety that the Statewide Texas Amber Alert
Network has been activated, the department [commission] shall
disseminate Amber Alert information at its retail locations through
the lottery operator system.
SECTION 14. Sections 466.027(a), (b), (c), and (d),
Government Code, are amended to read as follows:
(a) The department [commission] shall operate an
instant-ticket lottery game to benefit the fund for veterans'
assistance established by Section 434.017.
(b) The department [commission] shall:
(1) determine the ticket price, payout amounts, and
manner in which the game is conducted;
(2) make tickets to the game available for sale
continuously to the extent practicable; and
(3) change the design or theme of the game regularly to
ensure that the game remains competitive with other instant-ticket
lottery games offered by the department [commission].
(c) The department [commission] shall market and advertise
the lottery game operated under this section in a manner intended to
inform the public that the game tickets are available for purchase
and that the game proceeds are used to fund veterans programs in
this state. The game tickets must clearly state that the game
proceeds are used to benefit the veterans in this state. The Texas
Veterans Commission may make recommendations to the department
[Texas Lottery Commission] relating to the marketing and
advertising of the game.
(d) The department [commission] shall encourage each sales
agent that sells tickets to instant-ticket games or similar types
of lottery games to sell tickets to the game operated under this
section.
SECTION 15. Section 466.105(b), Government Code, is amended
to read as follows:
(b) Notwithstanding the provisions of Title 2, Utilities
Code, the department [commission] may negotiate rates and execute
contracts with telecommunications service providers for the
interexchange services necessary for the operation of the
lottery. The department [commission] may acquire transmission
facilities by lease, purchase, or lease-purchase. The acquisition
of transmission facilities must be done on a competitive bid basis
if possible.
SECTION 16. Section 466.106(a), Government Code, is amended
to read as follows:
(a) In all contracts for lottery equipment, supplies,
services, and advertising, the department [commission] and each
lottery operator shall give preference to equipment or supplies
produced in this state or services or advertising offered by
bidders from this state, the cost to the state and quality being
equal.
SECTION 17. Sections 466.107(a) and (c), Government Code,
are amended to read as follows:
(a) The executive director and each lottery operator shall
take positive steps to:
(1) inform minority businesses of opportunities to:
(A) provide lottery equipment and supplies to the
department [commission];
(B) provide services, including advertising, to
the department [commission] for the operation of the lottery; or
(C) obtain a license to sell lottery tickets;
(2) waive or modify bond requirements, if feasible;
(3) award contracts for lottery equipment or supplies
to minority businesses when possible;
(4) award contracts for lottery services, including
advertising, to minority businesses when possible;
(5) license minority businesses as sales agents;
(6) monitor the effectiveness of the efforts to
increase the ability of minority businesses to do business with the
department [commission]; and
(7) require all bidders or contractors, when
appropriate, to include specific plans or arrangements to use
subcontracts with minority businesses.
(c) The department [commission] shall annually report to
the legislature and the governor on the level of minority business
participation as pertains to both the department's [commission's]
contracts and the licensing of sales agents. The report must
include recommendations for the improvement of minority business
opportunities in lottery-related business.
SECTION 18. Section 466.108, Government Code, is amended to
read as follows:
Sec. 466.108. TELEVISION CONTRACTS. If the drawing or
selection of winning tickets is televised under a contract with the
department [commission], the contract must be awarded by
competitive bid. The department [commission] shall adopt rules
governing the competitive bidding process. Money received under
the contract shall be deposited in the state lottery account
established under Section 466.355.
SECTION 19. Section 466.109, Government Code, is amended to
read as follows:
Sec. 466.109. PUBLICITY OF INDIVIDUALS PROHIBITED. (a) A
state officer, including a commission member or the executive
director, or an officer or employee of the department [commission],
may not appear in an advertisement or promotion for the lottery that
is sponsored by the department [commission] or in a televised
lottery drawing. An advertisement or promotion for the lottery may
not contain the likeness or name of a state officer, including a
commission member or the executive director, or an officer or
employee of the department [commission].
(b) In connection with providing security for the lottery,
this section does not prohibit a security officer or investigator
employed by the department [commission] from appearing in a
televised lottery drawing or other promotion for the lottery that
is sponsored by the department [commission].
(c) Notwithstanding this section, the executive director
may designate an employee of the department [commission] to
participate in a promotional event.
SECTION 20. Section 466.110, Government Code, is amended to
read as follows:
Sec. 466.110. PROHIBITED ADVERTISEMENTS. The legislature
intends that advertisements or promotions sponsored by the
department [commission or the division] for the lottery not be of a
nature that unduly influences any person to purchase a lottery
ticket or number.
SECTION 21. Section 466.151(a), Government Code, is amended
to read as follows:
(a) If the executive director authorizes a person who is not
an employee of the department [commission] to sell tickets, the
person must be licensed as a sales agent by the department
[commission].
SECTION 22. Sections 466.155(a), (b), (e), and (f),
Government Code, are amended to read as follows:
(a) After a hearing, the executive director shall deny an
application for a license or the department [commission] shall
suspend or revoke a license if the executive director or department
[commission], as applicable, finds that the applicant or sales
agent:
(1) is an individual who:
(A) has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor
involving moral turpitude, if less than 10 years has elapsed since
the termination of the sentence, parole, mandatory supervision, or
probation served for the offense;
(B) is or has been a professional gambler;
(C) is married to an individual:
(i) described in Paragraph (A) or (B); or
(ii) who is currently delinquent in the
payment of any state tax;
(D) is an officer or employee of the department
[commission] or a lottery operator; or
(E) is a spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
place of residence of a person described by Paragraph (D);
(2) is not an individual, and an individual described
in Subdivision (1):
(A) is an officer or director of the applicant or
sales agent;
(B) holds more than 10 percent of the stock in the
applicant or sales agent;
(C) holds an equitable interest greater than 10
percent in the applicant or sales agent;
(D) is a creditor of the applicant or sales agent
who holds more than 10 percent of the applicant's or sales agent's
outstanding debt;
(E) is the owner or lessee of a business that the
applicant or sales agent conducts or through which the applicant
will conduct a ticket sales agency;
(F) shares or will share in the profits, other
than stock dividends, of the applicant or sales agent; or
(G) participates in managing the affairs of the
applicant or sales agent;
(3) has been finally determined to be delinquent in
the payment of a tax or other money collected by the comptroller,
the Texas Workforce Commission, or the Texas Alcoholic Beverage
Commission;
(4) is a person whose location for the sales agency is:
(A) a location licensed for games of bingo under
Chapter 2001, Occupations Code;
(B) on land that is owned by:
(i) this state; or
(ii) a political subdivision of this state
and on which is located a public primary or secondary school, an
institution of higher education, or an agency of the state; or
(C) a location for which a person holds a wine and
malt beverage retailer's permit, mixed beverage permit, mixed
beverage permit with a retailer late hours certificate, private
club registration permit, or private club registration permit with
a retailer late hours certificate issued under Chapter 25, 28, 29,
or 32, Alcoholic Beverage Code, other than a location for which a
person holds a wine and malt beverage retailer's permit issued
under Chapter 25, Alcoholic Beverage Code, that derives less than
30 percent of the location's gross receipts from the sale or service
of alcoholic beverages; or
(5) has violated this chapter or a rule adopted under
this chapter.
(b) If the executive director proposes to deny an
application for a license or the department [commission] proposes
to suspend or revoke a license under this section, the applicant or
sales agent is entitled to written notice of the time and place of
the hearing. A notice may be served on an applicant or sales agent
personally or sent by certified or registered mail, return receipt
requested, to the person's mailing address as it appears on the
department's [commission's] records. A notice must be served or
mailed not later than the 20th day before the date of the hearing.
The department [commission] shall provide for a formal
administrative hearings process.
(e) The executive director may not issue a license to a
person who has previously had a license under this chapter revoked
unless the executive director is satisfied the person will comply
with this chapter and the rules adopted under this chapter. The
executive director may prescribe the terms under which a suspended
license will be reissued.
(f) The executive director may not issue a license to an
applicant who fails to certify to the executive director the
applicant's compliance with the federal Americans with
Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).
SECTION 23. Sections 466.160(a), (b), and (d), Government
Code, are amended to read as follows:
(a) The department [commission] may suspend a sales agent's
license summarily without notice or hearing if the department
[commission] finds that the action is necessary to maintain the
integrity, security, honesty, or fairness of the operation or
administration of the lottery or to prevent financial loss to the
state and:
(1) the sales agent fails to deposit money received
from ticket sales under Section 466.351;
(2) an event occurs that would render the sales agent
ineligible for a license under Section 466.155;
(3) the sales agent refuses to permit the executive
director, the department [director, the commission], or the state
auditor to examine the agent's books, records, papers, or other
objects under Section 466.017(b); or
(4) the executive director learns the sales agent has
failed to disclose information that would, if disclosed, render the
sales agent ineligible for a license under Section 466.155.
(b) The department [commission] may summarily suspend a
sales agent's license if proceedings for a preliminary hearing
before the State Office of Administrative Hearings are initiated
simultaneously with the summary suspension. The preliminary
hearing shall be set for a date not later than 10 days after the date
of the summary suspension, unless the parties agree to a later date.
(d) To initiate a proceeding to summarily suspend a sales
agent's license, the department [commission] must serve notice to
the sales agent informing the agent of the right to a preliminary
hearing and of the time and place of the preliminary hearing. The
notice must be personally served on the sales agent or an officer,
employee, or agent of the sales agent or sent by certified or
registered mail, return receipt requested, to the sales agent's
mailing address as it appears on the department's [commission's]
records. The notice must state the alleged violations that
constitute grounds for summary suspension. The suspension is
effective at the time the notice is served. If notice is served in
person, the sales agent shall immediately surrender the license to
the department [commission]. If notice is served by mail, the sales
agent shall immediately return the license to the department
[commission]. If the sales agent uses an on-line electronic
terminal to sell tickets, the executive director or a lottery
operator on the instructions of the executive director may
terminate the connection of the terminal to the department's
[commission's] lottery computer at the time:
(1) the proceeding to summarily suspend the license is
initiated; or
(2) the department [division] discovers the sales
agent has failed to deposit money received from ticket sales, if the
sales agent's license is being summarily suspended under Subsection
(a)(1).
SECTION 24. Sections 466.161(b) and (c), Government Code,
are amended to read as follows:
(b) This section does not waive any immunity of the
department [commission] or this state.
(c) This section does not create a cause of action against
this state, the department [commission], a department [commission]
employee, or a sales agent.
SECTION 25. Section 466.201, Government Code, is amended to
read as follows:
Sec. 466.201. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION. (a) The department [commission] is entitled to
conduct an investigation of and is entitled to obtain criminal
history record information maintained by the Department of Public
Safety, the Federal Bureau of Investigation Identification
Division, or another law enforcement agency to assist in the
investigation of:
(1) a sales agent or an applicant for a sales agent
license;
(2) a person required to be named in a license
application;
(3) a lottery operator or prospective lottery
operator;
(4) an employee of a lottery operator or prospective
lottery operator, if the employee is or will be directly involved in
lottery operations;
(5) a person who manufactures or distributes lottery
equipment or supplies, or a representative of a person who
manufactures or distributes lottery equipment or supplies offered
to the lottery;
(6) a person who has submitted a written bid or
proposal to the department [commission] in connection with the
procurement of goods or services by the department [commission], if
the amount of the bid or proposal exceeds $500;
(7) an employee or other person who works for or will
work for a sales agent or an applicant for a sales agent license;
(8) a person who proposes to enter into or who has a
contract with the department [commission] to supply goods or
services to the department [commission]; or
(9) if a person described in Subdivisions (1) through
(8) is not an individual, an individual who:
(A) is an officer or director of the person;
(B) holds more than 10 percent of the stock in the
person;
(C) holds an equitable interest greater than 10
percent in the person;
(D) is a creditor of the person who holds more
than 10 percent of the person's outstanding debt;
(E) is the owner or lessee of a business that the
person conducts or through which the person will conduct
lottery-related activities;
(F) shares or will share in the profits, other
than stock dividends, of the person;
(G) participates in managing the affairs of the
person; or
(H) is an employee of the person who is or will be
involved in:
(i) selling tickets; or
(ii) handling money from the sale of
tickets.
(b) The department [commission] shall conduct an
investigation of and obtain criminal history record information
maintained by the Department of Public Safety, the Federal Bureau
of Investigation Identification Division, or another law
enforcement agency to assist in the investigation of:
(1) the executive director or a prospective executive
director; or
(2) an employee or prospective employee of the
department [commission].
(c) Not later than the first anniversary after the date of
each renewal, the department [commission] shall obtain criminal
history record information maintained by the Department of Public
Safety on a sales agent whose license is renewed under Section
466.158.
SECTION 26. Section 466.202, Government Code, is amended to
read as follows:
Sec. 466.202. FINGERPRINTS. (a) The executive director
may discharge from employment an employee of the department
[commission] who fails to provide a complete legible set of
fingerprints on request. The executive director may refuse to
consider a prospective employee of the department [commission] who
fails to provide a complete legible set of fingerprints on request.
(b) The executive director may deny an application for a
license or the department [commission] may suspend or revoke a
license if the applicant or sales agent fails on request to provide
a complete legible set of fingerprints of a person required to be
named in a license application.
SECTION 27. Sections 466.203(a) and (c), Government Code,
are amended to read as follows:
(a) The executive director may request the cooperation of
the Department of Public Safety to perform a background
investigation of a person listed in Section 466.201(a) or (b). The
executive director shall reimburse the Department of Public Safety
[department] for the actual cost of an investigation.
(c) Unless otherwise prohibited by law, the Department of
Public Safety may retain any record or information submitted to it
under this section. The Department of Public Safety [department]
shall notify the executive director of any change in information
provided to the executive director when the Department of Public
Safety [department] learns of the change.
SECTION 28. Section 466.204, Government Code, is amended to
read as follows:
Sec. 466.204. ACCESS TO INTERNAL REVENUE SERVICE
INFORMATION. The executive director may obtain information
relating to a person's qualification for licensing, employment, or
contracting under this chapter from the Internal Revenue Service
under a contract between the comptroller and the Internal Revenue
Service on:
(1) a sales agent or an applicant for a sales agent
license;
(2) an employee or prospective employee of the
department [commission];
(3) a person required to be named in a license
application;
(4) a lottery operator or prospective lottery
operator;
(5) an employee of a lottery operator or prospective
lottery operator, if the employee is or will be directly involved in
lottery operations;
(6) a person who manufactures or distributes lottery
equipment or supplies, or a representative of a person who
manufactures or distributes lottery equipment or supplies offered
to the lottery;
(7) a person who has submitted a written bid or
proposal to the department [commission] in connection with the
procurement of goods or services by the department [commission];
(8) an employee or other person who works for or will
work for a sales agent or an applicant for a sales agent license; or
(9) a person who proposes to enter into or who has a
contract with the department [commission] to supply goods or
services to the department [commission].
SECTION 29. Section 466.254, Government Code, is amended to
read as follows:
Sec. 466.254. PURCHASE OF TICKET BY OR PAYMENT OF PRIZE TO
CERTAIN PERSONS. A person may not purchase a ticket or claim,
collect, or receive a lottery prize or a share of a lottery prize if
the person is:
(1) a member, officer, or employee of a person that has
a contract with the department [commission] to sell or lease goods
or services used in the operation of the lottery, and the member,
officer, or employee is directly involved in selling or leasing the
goods or performing the services that are the subject of the
contract with the department [commission];
(2) a member, officer, or employee of a lottery
operator;
(3) an officer or employee of the department
[commission]; or
(4) a spouse, child, brother, sister, or parent
residing as a member of the same household in the principal place of
residence of a person described by Subdivision (1), (2), or (3).
SECTION 30. Subchapter F, Chapter 466, Government Code, is
amended by adding Section 466.255 to read as follows:
Sec. 466.255. LIMITATION ON NUMBER OF LOTTERY TICKETS PER
TRANSACTION. A person may not sell to one individual more than 100
lottery tickets in a single transaction.
SECTION 31. Section 466.302(a), Government Code, is amended
to read as follows:
(a) A person commits an offense if the person intentionally
or knowingly sells a ticket at a price the person knows is greater
than that fixed by the department [commission] or by the lottery
operator authorized to set that price.
SECTION 32. Sections 466.3051(a) and (d), Government Code,
are amended to read as follows:
(a) A sales agent or an employee of a sales agent commits an
offense if with criminal negligence the person [intentionally or
knowingly] sells or offers to sell a ticket to an individual that
the person knows is younger than 18 years of age.
(d) It is a defense to the application of Subsection (b)
that the individual younger than 18 years of age is participating in
an inspection or investigation on behalf of the department
[commission] or other appropriate governmental entity regarding
compliance with this section.
SECTION 33. Section 466.3052(a), Government Code, is
amended to read as follows:
(a) A person commits an offense if the person intentionally
or knowingly sells a ticket and the person accepts anything other
than the following as payment for the ticket:
(1) United States currency;
(2) a negotiable instrument in the form of a check that
meets the requirements of Section 3.104, Business & Commerce Code;
(3) a debit made through a financial institution debit
card;
(4) a coupon or voucher issued by the department
[commission] for purposes of purchasing a lottery ticket; or
(5) a mail order subscription on a mail order
subscription form authorized by the department [commission].
SECTION 34. Section 466.311(b), Government Code, is amended
to read as follows:
(b) A person commits an offense if the person knowingly
refuses to produce for inspection by the [director,] executive
director, department [commission], or state auditor a book, record,
or document required to be maintained or made by this chapter or a
rule adopted under this chapter.
SECTION 35. Subchapter G, Chapter 466, Government Code, is
amended by adding Section 466.318 to read as follows:
Sec. 466.318. PLAY OR FACILITATING PLAY BY TELEPHONE OR BY
INTERNET OR MOBILE INTERNET APPLICATION. (a) A person may not by
telephone or through an Internet application or mobile Internet
application:
(1) purchase or order the purchase of a ticket for a
lottery game; or
(2) for compensation:
(A) accept an order for a ticket for a lottery
game from a player;
(B) sell a ticket for a lottery game to a player;
or
(C) arrange:
(i) to purchase a ticket on behalf of a
person playing a lottery game; or
(ii) for another person to purchase a
ticket on behalf of a person playing a lottery game.
(b) A person commits an offense if the person violates this
section.
(c) An offense under Subsection (a)(1) is a Class C
misdemeanor.
(d) An offense under Subsection (a)(2) is a Class A
misdemeanor.
SECTION 36. Sections 466.408(a), (c), and (f), Government
Code, are amended to read as follows:
(a) The department [division] shall retain an unclaimed
prize on a winning ticket for payment or delivery to the person
entitled to the prize for 180 days after the date on which the
winner was selected.
(c) If a claim is not made for a prize other than prize money
on or before the 180th day after the date on which the winner was
selected, the prize shall revert to the department [division] for
use in subsequent games.
(f) The department [commission] may deduct money paid to an
eligible person under Subsection (e) from prize money that would
otherwise be deposited under Subsection (b).
SECTION 37. Sections 466.410(a), (b), (d), (f), (g), and
(j), Government Code, are amended to read as follows:
(a) A person may assign, in whole or in part, the right to
receive prize payments that are paid by the department [commission]
in installments over time if the assignment is made to a person
designated by an order of a district court of Travis County, except
that a person may not assign the right to receive prize payments if
the person is subject to a child support order and is delinquent in
making support payments under that order.
(b) A district court shall issue an order approving a
voluntary assignment and directing the department [commission] to
direct prize payments in whole or in part to the assignee if:
(1) a copy of the petition for the order and copies of
all notices of any hearing in the matter have been served on the
executive director not later than 20 days prior to any hearing or
entry of any order. The department [commission] may intervene in a
proceeding to protect the interests of the department [commission]
but shall not be considered an indispensable or necessary party. A
petition filed under this section shall include in the caption the
prize winner's name as it appears on the lottery claim form;
(2) the assignment is in writing, executed by the
assignor and assignee (or designated agent), and by its terms
subject to the laws of this state; and
(3) the assignor provides a sworn and notarized
affidavit stating that the assignor:
(A) is of sound mind, over 18 years of age, is in
full command of the person's faculties, and is not acting under
duress;
(B) is not delinquent in payment of child support
under a court or administrative order issued in this state or
another state;
(C) has been advised regarding the assignment by
independent legal counsel and has had the opportunity to receive
independent financial and tax advice concerning the effects of the
assignment;
(D) understands that the assignor will not
receive the prize payments, or portions of the prize payments, for
the assigned years;
(E) understands and agrees that with regard to
the assigned payments, the state, the department [commission], and
its officials and employees will have no further liability or
responsibility to make the assigned payments to the assignor;
(F) has been provided a one-page written
disclosure statement stating, in boldfaced type, 14 points or
larger:
(i) the payments being assigned, by amounts
and payment dates;
(ii) the purchase price being paid, if any;
(iii) if a purchase price is paid, the rate
of discount to the present value of the prize, assuming daily
compounding and funding on the contract date; and
(iv) the amount, if any, of any origination
or closing fees that will be charged to the assignor; and
(G) was advised in writing, at the time the
assignment was signed, that the assignor had the right to cancel
without any further obligation not later than the third business
day after the date the assignment was signed.
(d) With respect to any given prize, the order shall also
recite and identify all prior assignments by amount of or fraction
of payment assigned, the identity of the assignee, and the date(s)
of payment(s) assigned. A court order obtained pursuant to this
section, together with all such prior orders, shall not require the
department [commission] to divide any single prize payment among
more than three different persons.
(f) A certified copy of a court order granted under this
section shall be delivered to the department [commission] and such
order must be provided to the department [commission] no later than
20 days prior to the date upon which the first assigned payment is
to be paid to the assignee. Within 20 days of receipt of the court
order, the department [commission] shall acknowledge in writing to
both the assignor and the assignee its receipt of said court order.
Unless the department [commission] provides written notice to the
assignor and assignee that the department [commission] cannot
comply with the court order, the department [commission] shall
thereafter make the prize payments in accordance with the court
order.
(g) The department [commission] shall establish and collect
a reasonable fee to defray any administrative expenses associated
with an assignment made under this section, including the cost to
the department [commission] of any processing fee imposed by a
private annuity provider. The department [commission] shall
establish the amount of the fee to reflect the direct and indirect
costs associated with processing the assignment.
(j) After receiving a letter or ruling from the Internal
Revenue Service or a published decision of a court as provided by
Subsection (i)(1) or (2), the executive director shall immediately
file a copy of the letter, ruling, or published decision with the
secretary of state. When the executive director files a copy of the
letter, ruling, or published decision with the secretary of state,
an assignor is ineligible to assign a prize under this section, and
the department [commission] shall not make any payment to an
assignee pursuant to a court order entered after the date of such
letter or ruling.
SECTION 38. Sections 466.411(b) and (d), Government Code,
are amended to read as follows:
(b) The department [commission] may release or disclose the
personally identifiable information of a natural person who is a
lottery prize winner if the person chooses to have the prize paid in
periodic installments. The department [commission] may only
disclose the information on or after the 30th day after the date the
person claims the lottery prize if the person chooses to remain
anonymous under Subsection (a).
(d) This section does not prohibit release of a natural
person prize winner's city or county of residence or prevent the
department [commission] from releasing the person's personally
identifiable information to the Health and Human Services
Commission or as necessary to comply with Section 466.407 or
466.4075.
SECTION 39. Section 466.451, Government Code, is amended to
read as follows:
Sec. 466.451. MULTIJURISDICTION AGREEMENT AUTHORIZED. The
department [commission] may enter into a written agreement with the
appropriate officials of one or more other states or other
jurisdictions, including foreign countries, to participate in the
operation, marketing, and promotion of a multijurisdiction lottery
game or games. The commission may adopt rules relating to a
multijurisdiction lottery game or games.
SECTION 40. Section 466.452(b), Government Code, is amended
to read as follows:
(b) The department [commission] may deposit a portion of the
revenue received from the sale of multijurisdiction lottery game
tickets in this state into a fund shared with other parties to an
agreement under this subchapter for the payment of prizes awarded
in multijurisdiction lottery games in which the department
[commission] participates. The department [commission] may retain
that revenue in the fund for as long as necessary to pay prizes
claimed during the period designated for claiming a prize in the
multijurisdiction lottery game.
SECTION 41. Section 466.453, Government Code, is amended to
read as follows:
Sec. 466.453. PAYMENT OF COSTS AUTHORIZED. The department
[commission] may share in the payment of costs associated with
participating in multijurisdiction lottery games.
SECTION 42. Section 544.0456(c), Government Code, is
amended to read as follows:
(c) On a monthly basis, the commission shall:
(1) conduct electronic data matches with the Texas
Department of Licensing and Regulation [Lottery Commission] to
determine whether a recipient of supplemental nutrition assistance
benefits or a recipient's household member received reportable
lottery winnings;
(2) use the database system developed under Section
532.0201 to:
(A) match vital statistics unit death records
with a list of individuals eligible for financial assistance or
supplemental nutrition assistance benefits; and
(B) ensure that any individual receiving
assistance under either program who is discovered to be deceased
has the individual's eligibility for assistance promptly
terminated; and
(3) review the out-of-state electronic benefit
transfer card transactions a recipient of supplemental nutrition
assistance benefits made to determine whether those transactions
indicate a possible change in the recipient's residence.
SECTION 43. Sections 572.003(b) and (c), Government Code,
are amended to read as follows:
(b) The term means:
(1) the banking commissioner [Banking Commissioner]
of the Texas [The Banking] Department of Banking [Texas];
(2) the administrative director of the Office of Court
Administration of the Texas Judicial System;
(3) the chief executive of the Office of Public
Utility Counsel;
(4) the executive director of the State Bar of Texas;
(5) [the director of the lottery division of the Texas
Lottery Commission;
[(6) the deputy in charge of the department of
security in the lottery division of the Texas Lottery Commission;
[(7)] the executive director of the [bingo division of
the] Texas Department of Licensing and Regulation [Lottery
Commission]; or
(6) [(8)] the secretary of state.
(c) The term means a member of:
(1) the Public Utility Commission of Texas;
(2) the Texas Commission on Environmental Quality;
(3) the Texas Alcoholic Beverage Commission;
(4) the Finance Commission of Texas;
(5) the Texas Facilities Commission;
(6) the Texas Board of Criminal Justice;
(7) the board of trustees of the Employees Retirement
System of Texas;
(8) the Texas Transportation Commission;
(9) the Texas Department of Insurance;
(10) the Parks and Wildlife Commission;
(11) the Public Safety Commission;
(12) the Texas Ethics Commission;
(13) the State Securities Board;
(14) the Texas Water Development Board;
(15) the governing board of a public senior college or
university as defined by Section 61.003, Education Code, or of The
University of Texas Southwestern Medical Center, The University of
Texas Medical Branch at Galveston, The University of Texas Health
Science Center at Houston, The University of Texas Health Science
Center at San Antonio, The University of Texas M. D. Anderson Cancer
Center, The University of Texas Health Science Center at Tyler,
University of North Texas Health Science Center at Fort Worth,
Texas Tech University Health Sciences Center, Texas State Technical
College--Harlingen, Texas State Technical College--Marshall, Texas
State Technical College--Sweetwater, or Texas State Technical
College--Waco;
(16) the Texas Higher Education Coordinating Board;
(17) the Texas Workforce Commission;
(18) the board of trustees of the Teacher Retirement
System of Texas;
(19) the Credit Union Commission;
(20) the School Land Board;
(21) the board of the Texas Department of Housing and
Community Affairs;
(22) the Texas Racing Commission;
(23) the State Board of Dental Examiners;
(24) the Texas Medical Board;
(25) the Board of Pardons and Paroles;
(26) the Texas State Board of Pharmacy;
(27) the Department of Information Resources
governing board;
(28) the board of the Texas Department of Motor
Vehicles;
(29) the Texas Real Estate Commission;
(30) the board of directors of the State Bar of Texas;
(31) the Bond Review Board;
(32) the Health and Human Services Commission;
(33) the Texas Funeral Service Commission;
(34) the board of directors of a river authority
created under the Texas Constitution or a statute of this state; or
(35) [the Texas Lottery Commission; or
[(36)] the Cancer Prevention and Research Institute of
Texas.
SECTION 44. Sections 467.001(3), (4), (5), (6), (7), (8),
(9), (10), and (11), Government Code, are transferred to Section
51.001, Occupations Code, redesignated as Sections 51.001(1-b),
(2-a), (2-b), (4-a), (4-b), (4-c), (4-d), (4-e), and (4-f),
Occupations Code, and amended to read as follows:
(1-b) [(3)] "Communicate directly with" has the
meaning assigned by Section 305.002, Government Code.
(2-a) [(4)] "Gift" includes a gratuity, trip, meal, or
other thing of value for which the recipient does not compensate the
person making the gift and that is not conferred on account of
kinship or a personal, professional, or business relationship
independent of the official status of the recipient.
(2-b) [(5)] "Legislation" has the meaning assigned by
Section 305.002, Government Code.
(4-a) [(6)] "Member of the legislative branch" has the
meaning assigned by Section 305.002, Government Code.
(4-b) [(7)] "Participated" means to have taken action
as an officer or employee through decision, approval, disapproval,
recommendation, giving advice, or similar action.
(4-c) [(8)] "Particular matter" includes an
investigation, an application, a request for a ruling or
determination, a license proceeding, rulemaking, a contract, a
controversy, a claim, a charge, an accusation, an arrest, or a
judicial or other proceeding.
(4-d) [(9)] "Person that has a significant financial
interest in the lottery" means:
(A) a person or a board member, officer, trustee,
or general partner of a person that manufactures, distributes,
sells, or produces lottery equipment, supplies, services, or
advertising;
(B) an employee of a person that manufactures,
distributes, sells, or produces lottery equipment, supplies,
services, or advertising and that employee is directly involved in
the manufacturing, distribution, selling, or production of lottery
equipment, supplies, services, or advertising;
(C) a person or a board member, officer, trustee,
or general partner of a person that has made a bid to operate the
lottery in the preceding two years or that intends to make a bid to
operate the lottery or an employee of the person if the employee is
directly involved in making the bid; or
(D) a sales agent.
(4-e) [(10)] "Political committee" has the meaning
assigned by Section 251.001, Election Code.
(4-f) [(11)] "Political contribution" has the meaning
assigned by Section 251.001, Election Code.
SECTION 45. Section 51.002, Occupations Code, is amended to
read as follows:
Sec. 51.002. APPLICATION OF SUNSET ACT. The Texas
Commission of Licensing and Regulation and the Texas Department of
Licensing and Regulation are subject to Chapter 325, Government
Code (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the commission and the department are abolished
and Chapter 2001 of this code expires September 1, 2033.
SECTION 46. Section 51.053, Occupations Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) In addition to the eligibility requirements provided
by Subsection (b), a person is not eligible for appointment as a
member of the commission if the person:
(1) has been convicted of a felony or of any crime
involving moral turpitude; or
(2) is not a citizen of the United States.
SECTION 47. Section 467.025, Government Code, is
transferred to Subchapter B, Chapter 51, Occupations Code,
redesignated as Section 51.061, Occupations Code, and amended to
read as follows:
Sec. 51.061 [467.025]. PROHIBITED CONDUCT. (a) A
commission member may not:
(1) accept any employment or remuneration from:
(A) a person that has a significant financial
interest in the lottery; or
(B) a bingo commercial lessor, bingo
distributor, or bingo manufacturer;
(2) play any lottery or bingo game conducted in this
state;
(3) accept or be entitled to accept any part of the
winnings to be paid from a lottery or bingo game conducted in this
state;
(4) use the member's official authority to affect the
result of an election or nomination for public office; or
(5) directly or indirectly coerce, attempt to coerce,
command, or advise a person to pay, lend, or contribute anything of
value to another person for political purposes.
(b) A commission member or former commission member or the
spouse of a commission member or former commission member may not
solicit or accept employment from a person regulated by the
commission before the second anniversary of the date on which the
commission member's service on the commission ends.
SECTION 48. Section 467.036, Government Code, is
transferred to Subchapter B, Chapter 51, Occupations Code,
redesignated as Section 51.062, Occupations Code, and amended to
read as follows:
Sec. 51.062 [467.036]. ACCESS TO CRIMINAL HISTORY
RECORDS. (a) The governor shall conduct an investigation of and
is entitled to obtain criminal history record information
maintained by the Department of Public Safety, the Federal Bureau
of Investigation Identification Division, or another law
enforcement agency relating to an individual the governor intends
to appoint to the commission.
(b) The commission shall conduct an investigation of and is
entitled to obtain criminal history record information maintained
by the Department of Public Safety, the Federal Bureau of
Investigation Identification Division, or another law enforcement
agency relating to an individual the commission intends to employ.
SECTION 49. Section 467.101, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.2011, Occupations Code, and amended to
read as follows:
Sec. 51.2011 [467.101]. POWERS AND DUTIES OF COMMISSION
REGARDING STATE LOTTERY AND BINGO REGULATION. (a) The commission
has broad authority and shall exercise strict control and close
supervision over all activities authorized and conducted in this
state under:
(1) Chapter 2001[, Occupations Code]; and
(2) Chapter 466, Government Code [of this code].
(b) The commission shall ensure that games are conducted
fairly and in compliance with the law.
(c) The commission also has the powers and duties granted
under:
(1) Chapter 2001 [, Occupations Code]; and
(2) Chapter 466, Government Code [of this code].
SECTION 50. Section 467.104, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.212, Occupations Code, and amended to
read as follows:
Sec. 51.212 [467.104]. LOTTERY AND BINGO PROGRAM RECORDS.
(a) Except as otherwise provided by law, all commission records
relating to the state lottery under Chapter 466, Government Code,
and the regulation of charitable bingo under Chapter 2001 are
subject to public inspection in accordance with Chapter 552,
Government Code.
(b) The executive director shall keep the records described
by Subsection (a) [of the commission].
SECTION 51. Section 467.105, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.213, Occupations Code, and amended to
read as follows:
Sec. 51.213 [467.105]. LEGAL REPRESENTATION. (a) The
attorney general shall designate at least one member of the
attorney general's staff to counsel and advise the commission and
to represent the commission in legal proceedings. The attorney
general shall make available to the appropriate prosecuting
attorneys any information obtained regarding a violation of a law
under the commission's jurisdiction.
(b) The attorney general may apply for injunctive or
declaratory relief to enforce a law under the commission's
jurisdiction or a rule adopted by the commission. Action by the
attorney general under this subsection does not limit the authority
of the attorney general or a prosecuting attorney to bring a
criminal proceeding.
SECTION 52. Section 467.106, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.214, Occupations Code, and amended to
read as follows:
Sec. 51.214 [467.106]. GIFT OR POLITICAL CONTRIBUTION TO
OFFICER OR EMPLOYEE. (a) A commission member, the executive
director, or an employee of the department [commission] may not
intentionally or knowingly accept a gift or political contribution
from:
(1) a person that has a significant financial interest
in the lottery;
(2) a person related in the first degree of
consanguinity or affinity to a person that has a significant
financial interest in the lottery;
(3) a person that owns more than a 10 percent interest
in an entity that has a significant financial interest in the
lottery;
(4) a political committee that is directly
established, administered, or controlled, in whole or in part, by a
person that has a significant financial interest in the lottery; or
(5) a person who, within the two years preceding the
date of the gift or contribution, won a lottery prize exceeding $600
in amount or value.
(b) A person may not make a gift or political contribution
to a person known by the actor to be a commission member, the
executive director, or an employee of the department [commission],
if the actor:
(1) has a significant financial interest in the
lottery;
(2) is related in the first degree of consanguinity or
affinity to a person that has a significant financial interest in
the lottery;
(3) owns more than a 10 percent interest in an entity
that has a significant financial interest in the lottery;
(4) is a political committee that is directly
established, administered, or controlled, in whole or in part, by a
person that has a significant financial interest in the lottery; or
(5) within the two years preceding the date of the gift
or contribution, won a lottery prize exceeding $600 in amount or
value.
(c) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
SECTION 53. Section 467.107, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.215, Occupations Code, and amended to
read as follows:
Sec. 51.215 [467.107]. GIFT OR POLITICAL CONTRIBUTION TO
FORMER OFFICER OR EMPLOYEE. (a) A former commission member,
former executive director, or former employee of the department
[commission] may not, before the second anniversary of the date
that the person's service in office or employment with the
department [commission] ceases, intentionally or knowingly accept
a gift or political contribution from:
(1) a person that has a significant financial interest
in the lottery;
(2) a person related in the first degree of
consanguinity or affinity to a person that has a significant
financial interest in the lottery;
(3) a person that owns more than a 10 percent interest
in an entity that has a significant financial interest in the
lottery;
(4) a political committee that is directly
established, administered, or controlled, in whole or in part, by a
person that has a significant financial interest in the lottery; or
(5) a person who, within the two years preceding the
date of the gift or contribution, won a lottery prize exceeding $600
in amount or value.
(b) A person may not make a gift or political contribution
to a person known by the actor to be a former commission member,
former executive director, or former employee of the department
[commission], if the actor:
(1) has a significant financial interest in the
lottery;
(2) is related in the first degree of consanguinity or
affinity to a person that has a significant financial interest in
the lottery;
(3) owns more than a 10 percent interest in an entity
that has a significant financial interest in the lottery;
(4) is a political committee that is directly
established, administered, or controlled, in whole or in part, by a
person that has a significant financial interest in the lottery; or
(5) within the two years preceding the date of the gift
or contribution, won a lottery prize exceeding $600 in amount or
value.
(c) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
SECTION 54. Section 467.108, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.216, Occupations Code, and amended to
read as follows:
Sec. 51.216 [467.108]. REPRESENTATION BY FORMER OFFICER
OR EMPLOYEE. (a) A former commission member or[,] former
executive director[, or former director] may not:
(1) for compensation, represent a person that has made
or intends to make a bid to operate the lottery before the
department [commission] before the second anniversary of the date
that the person's service in office or employment with the
department [commission] ceases;
(2) represent any person or receive compensation for
services rendered on behalf of any person regarding a particular
matter in which the former officer or employee participated during
the period of service or employment with the department
[commission], either through personal involvement or because the
matter was within the scope of the officer's or employee's official
responsibility; or
(3) for compensation communicate directly with a
member of the legislative branch to influence legislation on behalf
of a person that has a significant financial interest in the
lottery, before the second anniversary of the date that the
person's service in office or employment with the department
[commission] ceases.
(b) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
SECTION 55. Subchapter D, Chapter 51, Occupations Code, is
amended by adding Sections 51.217 and 51.218 to read as follows:
Sec. 51.217. LOTTERY ADVISORY COMMITTEE. (a) The
commission shall establish a lottery advisory committee to provide
external expertise on the lottery. The commission shall appoint to
the advisory committee members who represent a balance of
interests, including representatives of:
(1) the public;
(2) licensed sales agents;
(3) interest groups with divergent viewpoints on the
lottery and lottery operations; and
(4) entities associated with or benefiting from the
lottery's contributions to this state.
(b) A lottery advisory committee member serves at the
pleasure of the commission.
(c) A lottery advisory committee member is not entitled to
receive compensation for serving as a member. A member is entitled
to reimbursement for reasonable expenses incurred in performing
duties as a member.
(d) The lottery advisory committee shall:
(1) advise the commission and department on the needs
and problems of this state's lottery industry;
(2) comment on proposed lottery rules during
development and before final adoption unless an emergency requires
immediate action by the commission;
(3) annually report to the commission and department
on the advisory committee's activities;
(4) annually brief the commission and department on
advancements and challenges in this state's lottery industry; and
(5) perform other duties as determined by the
commission or department.
(e) The commission shall adopt rules to govern the lottery
advisory committee, including rules on:
(1) member composition, appointment procedures, and
terms;
(2) quorum requirements for advisory committee
meetings;
(3) additional representation requirements for and
qualifications of advisory committee members, including experience
or geographic location;
(4) any necessary training requirements for advisory
committee members; and
(5) the method for the public to provide comments on
issues the advisory committee considers.
(f) The lottery advisory committee shall meet quarterly or
at the commission's or department's request.
(g) The commission may not adopt a rule that restricts the
lottery advisory committee from discussing any lottery-related
topic.
Sec. 51.218. ANNUAL REPORT. (a) The department annually
shall submit a report to the governor and the legislature that:
(1) includes a summary of lottery revenue, prize
disbursements, and other expenses for the state fiscal year
preceding the report;
(2) includes a comprehensive business plan to guide
the department's major lottery initiatives that contains:
(A) specific goals for the department; and
(B) an evaluation of:
(i) the department's overall performance on
lottery operations;
(ii) the effectiveness of specific lottery
programs and initiatives;
(iii) the efficiency of the department's
lottery operations;
(iv) the amount of lottery revenue
generated for state purposes other than the payment of prizes; and
(v) the factors affecting the amount of
lottery revenue received and disbursed, including ticket sales and
administrative efficiency;
(3) addresses the trends and issues related to
violations of state laws under the department's lottery and bingo
jurisdiction identified:
(A) in complaints submitted under Section 51.252
as analyzed to identify the trends and issues by alleged violation
type and to evaluate the effectiveness of the department's
enforcement process; and
(B) through an inspection, audit, or other means
of regulating lottery operations under Chapter 466, Government
Code, and bingo under Chapter 2001;
(4) includes for the preceding calendar year
charitable bingo information on:
(A) the total amount reported by licensed
authorized organizations of adjusted gross receipts from bingo
operations under Chapter 2001;
(B) the total amount reported by licensed
authorized organizations of net proceeds from bingo operations
under Chapter 2001; and
(C) a comparison of the amounts reported under
Paragraphs (A) and (B), including the percentage the net proceeds
represents compared to the adjusted gross receipts; and
(5) provides biennial recommendations to the
legislature on emerging trends, technological advancements,
regulatory developments, and market dynamics affecting the lottery
and bingo industries.
(b) For purposes of Subsection (a)(4):
(1) the term "adjusted gross receipts" means the
amount remaining after deducting prizes paid but excluding prize
fees collected from bingo players; and
(2) the department shall determine the total amount of
net proceeds in a manner that does not reduce gross receipts by the
amount of rent paid for the rental of bingo premises by a licensed
authorized organization to another licensed authorized
organization if the other organization pays rent for the premises
to a licensed commercial lessor.
SECTION 56. Section 2001.002, Occupations Code, is amended
by amending Subdivisions (8) and (25-a) and adding Subdivisions
(8-a) and (10) to read as follows:
(8) "Commission" means the Texas [Lottery] Commission
of Licensing and Regulation.
(8-a) "Department" means the Texas Department of
Licensing and Regulation.
(10) "Executive director" means the executive
director of the department.
(25-a) "Regular license" means a license to conduct
bingo issued by the department [commission] under Subchapter C that
is not a temporary license.
SECTION 57. Section 2001.003, Occupations Code, is amended
to read as follows:
Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND
BINGO PRIZE FEES. It is the intent of the legislature that the
funding necessary for the administration of this chapter by the
department [commission] be collected by the department
[commission] from commercial lessor, manufacturer, and distributor
license fees and money paid to the department [commission] by bingo
players as bingo prize fees.
SECTION 58. The heading to Subchapter B, Chapter 2001,
Occupations Code, is amended to read as follows:
SUBCHAPTER B. DEPARTMENT [COMMISSION] POWERS AND DUTIES
SECTION 59. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.0501 to read as follows:
Sec. 2001.0501. ALLOCATION OF POWERS AND DUTIES. A power
granted or duty assigned to the commission under this chapter is a
power or duty of the executive director, the department, or the
commission, as established by commission rule.
SECTION 60. Section 2001.053, Occupations Code, is amended
to read as follows:
Sec. 2001.053. OFFICERS AND INVESTIGATORS. The department
[commission] may employ officers or investigators the department
[commission] considers necessary to administer this chapter.
SECTION 61. Sections 2001.056(b), (c), (d), and (e),
Occupations Code, are amended to read as follows:
(b) A license holder may not use or distribute a bingo card
unless the card has been approved by the department [commission].
(c) The department [commission] may set the price or adopt a
schedule of prices for the sale or provision of bingo cards by a
licensed authorized organization.
(d) A licensed authorized organization may not sell or
provide a bingo card at a price other than a price authorized by the
department [commission] or a schedule adopted by the department
[commission].
(e) The commission by rule may require a licensed authorized
organization to notify the department [commission] of the price for
bingo cards the organization will use for one or more reporting
periods.
SECTION 62. Section 2001.057, Occupations Code, is amended
by amending Subsections (a), (e), (f), and (g) and adding
Subsection (h) to read as follows:
(a) The commission shall [may] appoint a bingo advisory
committee consisting of nine members. The commission shall appoint
members representing a balance of interests including
representatives of:
(1) the public;
(2) charities that operate bingo games; and
(3) commercial and charity lessors that participate in
the bingo industry.
(e) The bingo advisory committee shall [may]:
(1) advise the commission and department on the needs
and problems of the state's bingo industry;
(2) comment on rules involving bingo during their
development and before final adoption unless an emergency requires
immediate action by the commission;
(3) report annually to the commission and department
on the committee's activities; [and]
(4) annually brief the commission and department on
advancements and challenges in this state's bingo industry; and
(5) perform other duties as determined by the
commission or department.
(f) The bingo advisory committee shall [may] meet quarterly
or at the commission's or department's request.
(g) The commission shall [may] adopt rules:
(1) to govern the operations of the bingo advisory
committee; and
(2) to prohibit the committee's involvement in
committee member selection.
(h) The commission may not adopt a rule that prohibits or
restricts the bingo advisory committee from discussing any
bingo-related topic. This subsection may not be construed to
require action by the commission on each item submitted by the
committee or otherwise alter the commission's decision-making
authority.
SECTION 63. Section 2001.058, Occupations Code, is amended
to read as follows:
Sec. 2001.058. PUBLIC INFORMATION. (a) The department
[commission] shall provide to any person on request a printed copy
of this chapter and the rules applicable to the enforcement of this
chapter.
(b) The department [commission] may charge a reasonable
amount for a copy provided under this section.
SECTION 64. Sections 2001.059(b) and (f), Occupations Code,
are amended to read as follows:
(b) The commission shall respond to a request under
Subsection (a) not later than the later of the second commission
meeting or the 60th day after the date a request is received, unless
the commission determines that the request does not contain
sufficient facts to provide an answer on which the requestor may
rely. In that event, the commission shall request additional
information from the requestor not later than the 10th day after the
date the request is received. If the commission requests
additional information, the commission shall respond to the request
not later than the later of the second commission meeting or the
60th day after the date additional information is received pursuant
to the request for additional information.
(f) The commission may delegate all or part of the authority
and procedures for issuing advisory opinions under this section to
an employee of the department [commission].
SECTION 65. Section 2001.152, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Notwithstanding Subsection (a) and subject to
Subsection (c), a person who was a licensed commercial lessor on
June 10, 1989, whose license has been in effect continuously since
that date, and who is otherwise eligible for the license may renew
the license.
(c) The commission may place an administrative hold on the
license of a licensed commercial lessor described by Subsection (b)
for a period the commission determines not to exceed 10 years. If
the administrative hold on the license remains on the last day of
that period:
(1) the commission shall remove the administrative
hold; and
(2) the lessor is not eligible to renew the license as
a continuous license holder under Subsection (b).
SECTION 66. Section 2001.557, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The department [commission], its officers or agents, or
a state, municipal, or county peace officer may enter and inspect
the contents of premises where:
(1) bingo is being conducted or intended to be
conducted; or
(2) equipment used or intended for use in bingo is
found.
(c) In developing and implementing a policy or procedure
under Subsection (b), the commission shall consult with the bingo
advisory committee established under Section 2001.057 to
collaboratively define and implement specific fiscal
accountability criteria for inspections of premises.
SECTION 67. Sections 2001.560(c), (c-1), (c-2), and (e),
Occupations Code, are amended to read as follows:
(c) The department [commission] or a person authorized in
writing by the department [commission] may examine the books,
papers, records, equipment, and place of business of a license
holder and may investigate the character of the license holder's
business to verify the accuracy of a return, statement, or report
made, or, if no return is made by the license holder, to ascertain
and determine the amount required to be paid.
(c-1) The commission by rule shall develop a policy for
auditing license holders. The department [bingo division] shall
use audit risk analysis procedures established by the commission
to:
(1) annually identify the [which] license holders
[are] most at risk of violating this chapter or rules adopted under
this chapter, including consideration of license holder compliance
history in the identification; and
(2) develop a plan for auditing the identified license
holders that includes:
(A) a schedule for the audits of the identified
license holders;
(B) procedures to annually update the plan based
on successive risk analyses; and
(C) a completion date for each audit that is not
later than the fifth anniversary of the date the license holder was
identified as a candidate for audit.
(c-2) The department [bingo division] shall provide to the
commission a copy of the auditing plan developed under Subsection
(c-1).
(e) If the department [commission] determines that a person
is not complying with this chapter, the department [commission]
shall notify the attorney general and the governing body of the
appropriate political subdivision.
SECTION 68. Subchapter B, Chapter 2312, Occupations Code,
is amended by adding Section 2312.0545 to read as follows:
Sec. 2312.0545. CENTER'S DEPARTMENT OF SECURITY. (a) The
center shall maintain a department of security within the center as
required by Section 466.020, Government Code.
(b) The center's department of security may identify and
respond to criminal activity related to financial crimes associated
with the state lottery and charitable bingo.
SECTION 69. Section 47.09(a), Penal Code, is amended to
read as follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code;
(C) Chapter 2004, Occupations Code;
(D) Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act); or
(E) Chapter 280, Finance Code;
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) [the lottery division of the Texas Lottery
Commission;
[(C)] the Texas Department of Licensing and
Regulation [Lottery Commission]; or
(C) [(D)] the executive director of [the lottery
division of] the Texas Department of Licensing and Regulation
[Lottery Commission].
SECTION 70. Section 721.003(a), Transportation Code, is
amended to read as follows:
(a) The governing bodies of the following state agencies or
divisions by rule may exempt from the requirements of Section
721.002 a motor vehicle that is under the control and custody of the
agency or division:
(1) Texas Commission on Fire Protection;
(2) Texas State Board of Pharmacy;
(3) Department of State Health Services [and
Department of Aging and Disability Services];
(4) Department of Public Safety of the State of Texas;
(5) Texas Department of Criminal Justice;
(6) Board of Pardons and Paroles;
(7) Parks and Wildlife Department;
(8) Railroad Commission of Texas;
(9) Texas Alcoholic Beverage Commission;
(10) Texas Department of Banking;
(11) Department of Savings and Mortgage Lending;
(12) Texas Juvenile Justice Department;
(13) Texas Commission on Environmental Quality;
(14) Texas Department of Licensing and Regulation
[Lottery Commission];
(15) the office of the attorney general;
(16) Texas Department of Insurance;
(17) Texas Military Department; and
(18) an agency that receives an appropriation under an
article of the General Appropriations Act that appropriates money
to the legislature.
SECTION 71. The following provisions are repealed:
(1) Section 232.0021, Family Code;
(2) Section 411.108, Government Code;
(3) Section 466.012, Government Code;
(4) Section 466.016, Government Code;
(5) Section 466.028, Government Code;
(6) Sections 467.001(1) and (2), Government Code;
(7) the heading to Section 467.001, Government Code;
(8) Section 467.002, Government Code;
(9) Section 467.021, Government Code;
(10) Section 467.022, Government Code;
(11) Section 467.023, Government Code;
(12) Section 467.024, Government Code;
(13) Section 467.0255, Government Code;
(14) Section 467.026, Government Code;
(15) Section 467.027, Government Code;
(16) Section 467.028, Government Code;
(17) Section 467.029, Government Code;
(18) Section 467.030, Government Code;
(19) Section 467.031, Government Code;
(20) Section 467.032, Government Code;
(21) Section 467.033, Government Code;
(22) Section 467.034, Government Code;
(23) Section 467.035, Government Code;
(24) Section 467.037, Government Code;
(25) Section 467.102, Government Code;
(26) Section 467.103, Government Code;
(27) Section 467.109, Government Code;
(28) Section 467.110, Government Code;
(29) Section 467.111, Government Code;
(30) the headings to Subchapters A, B, and C, Chapter
467, Government Code;
(31) the heading to Chapter 467, Government Code;
(32) Section 2001.051, Occupations Code;
(33) Section 2001.052, Occupations Code;
(34) Section 2001.060, Occupations Code;
(35) Section 2001.061, Occupations Code;
(36) Section 2001.307, Occupations Code; and
(37) Section 721.003(e), Transportation Code.
SECTION 72. (a) On September 1, 2025:
(1) all functions and activities performed by the
Texas Lottery Commission relating to the state lottery under
Chapter 466, Government Code, and the regulation of bingo
operations under Chapter 2001, Occupations Code, immediately
before that date are transferred to the Texas Commission of
Licensing and Regulation or the Texas Department of Licensing and
Regulation, as applicable;
(2) a rule, policy, procedure, decision, or form
adopted by the Texas Lottery Commission relating to Chapter 466 or
467, Government Code, or Chapter 2001, Occupations Code, is a rule,
policy, procedure, decision, or form of the Texas Commission of
Licensing and Regulation or the Texas Department of Licensing and
Regulation, as applicable, and remains in effect until amended or
repealed by that commission or department unless the rule, policy,
procedure, decision, or form conflicts with the changes in law made
by this Act;
(3) unless the context clearly indicates otherwise, a
reference to the Texas Lottery Commission in a law or
administrative rule that relates to Chapter 466 or 467, Government
Code, or Chapter 2001, Occupations Code, means the Texas Commission
of Licensing and Regulation or the Texas Department of Licensing
and Regulation, as applicable;
(4) a complaint, investigation, or other proceeding
before the Texas Lottery Commission that is related to Chapter 466
or 467, Government Code, or Chapter 2001, Occupations Code, is
transferred without change in status to the Texas Department of
Licensing and Regulation, and the Texas Department of Licensing and
Regulation assumes, as appropriate and without a change in status,
the position of the Texas Lottery Commission in an action or
proceeding to which the Texas Lottery Commission is a party;
(5) a license, permit, certification, or registration
in effect that was issued by the Texas Lottery Commission under
Chapter 466 or 467, Government Code, or Chapter 2001, Occupations
Code, is continued in effect as a license, permit, certification,
or registration of the Texas Department of Licensing and
Regulation;
(6) all money, contracts, leases, property, and
obligations of the Texas Lottery Commission relating to Chapter 466
or 467, Government Code, or Chapter 2001, Occupations Code, are
transferred to the Texas Department of Licensing and Regulation;
and
(7) the unexpended and unobligated balance of any
money appropriated by the legislature for the Texas Lottery
Commission related to Chapter 466 or 467, Government Code, or
Chapter 2001, Occupations Code, is transferred to the Texas
Department of Licensing and Regulation.
(b) On September 1, 2025, all full-time equivalent employee
positions at the Texas Lottery Commission that primarily concern
the administration, auditing, accounting, enforcement, or other
direct and indirect support of Chapter 466 or 467, Government Code,
or Chapter 2001, Occupations Code, become positions at the Texas
Department of Licensing and Regulation. When filling the
positions, the Texas Department of Licensing and Regulation shall
give first consideration to an applicant who, as of August 31, 2025,
was an employee at the Texas Lottery Commission primarily involved
in administering or enforcing Chapter 466 or 467, Government Code,
or Chapter 2001, Occupations Code.
(c) On and after September 1, 2025, the Texas Lottery
Commission shall grant the Texas Department of Licensing and
Regulation inquiry-only security access to:
(1) all licensing, enforcement, and examination
software or computer systems used by the Texas Lottery Commission
in administering or enforcing Chapter 466 or 467, Government Code,
or Chapter 2001, Occupations Code; and
(2) the uniform statewide accounting system, the state
property accounting system, the uniform statewide payroll system,
and the human resources information system for the Texas Lottery
Commission.
(d) On and after September 1, 2025, the Texas Lottery
Commission may agree with the Texas Department of Licensing and
Regulation to transfer any property of the Texas Lottery Commission
to the Texas Department of Licensing and Regulation to implement
the transfers required by this Act.
(e) The Texas Department of Licensing and Regulation and the
Texas Lottery Commission shall coordinate implementation of this
section. The Texas Lottery Commission shall cooperate with the
Texas Department of Licensing and Regulation in transferring all
data and records necessary to implement the transfers required by
this Act.
(f) Not later than December 1, 2025, the Texas Lottery
Commission and the Texas Department of Licensing and Regulation
shall develop and enter into a memorandum of understanding
regarding the transfers required by this Act. The memorandum must
include a transition plan with a timetable and specific steps and
deadlines required to complete the transfer.
(g) Not later than December 1, 2025, a manufacturer of bingo
equipment or supplies that submitted to the Texas Lottery
Commission a bond as required under Section 2001.204, Occupations
Code, before September 1, 2025, that is in effect on the effective
date of this Act must amend the bond to name the Texas Department of
Licensing and Regulation as the payee for the bond.
SECTION 73. The changes in law made by this Act to Chapter
2001, Occupations Code, apply only to a tax or fee charged on or
after September 1, 2025. A tax or fee charged before September 1,
2025, is governed by the law in effect immediately before that date,
and the former law is continued in effect for that purpose.
SECTION 74. (a) The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act. An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
(b) Section 2001.152, Occupations Code, as amended by this
Act, applies to a license placed on an administrative hold on or
after the effective date of this Act.
SECTION 75. Not later than December 1, 2025, the Texas
Commission of Licensing and Regulation shall:
(1) appoint members to the lottery advisory committee
and adopt rules to govern the operations of the committee as
required by Section 51.217, Occupations Code, as added by this Act;
(2) appoint members to the bingo advisory committee
and adopt rules to govern the operations of the committee as
required by Section 2001.057, Occupations Code, as amended by this
Act; and
(3) adopt rules necessary to implement this Act.
SECTION 76. Not later than December 1, 2026, the Texas
Department of Licensing and Regulation shall submit to the Sunset
Advisory Commission and each standing committee of the legislature
with primary jurisdiction over the state lottery or regulation of
charitable bingo any legislative recommendations necessary to
improve the lottery or charitable bingo.
SECTION 77. This Act takes effect September 1, 2025.
* * * * *