H.B. No. 1587
1-1 AN ACT
1-2 relating to the operation of the state lottery; creating the State
1-3 Lottery Commission; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 4, Government Code, is amended
1-6 by adding Chapter 467 to read as follows:
1-7 CHAPTER 467. TEXAS LOTTERY COMMISSION
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 467.001. DEFINITIONS. In this chapter:
1-10 (1) "Commission" means the Texas Lottery Commission.
1-11 (2) "Executive director" means the executive director
1-12 of the Texas Lottery Commission.
1-13 Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
1-14 subject to Chapter 325 (Texas Sunset Act). Unless continued in
1-15 existence as provided by that chapter, the commission is abolished
1-16 and this Act expires September 1, 2003.
1-17 (Sections 467.003-467.020 reserved for expansion
1-18 SUBCHAPTER B. COMMISSION
1-19 Sec. 467.021. MEMBERSHIP. (a) The commission is composed
1-20 of three members appointed by the governor with the advice and
1-21 consent of the senate.
1-22 (b) In making appointments to the commission, the governor
1-23 shall strive to achieve representation by all the population groups
1-24 of the state with regard to economic status, sex, race, and
2-1 ethnicity.
2-2 (c) One member must have experience in the bingo industry.
2-3 Sec. 467.022. TERM OF OFFICE. Members hold office for
2-4 staggered terms of six years with one member's term expiring
2-5 February 1 of each odd-numbered year.
2-6 Sec. 467.023. RESIDENCE REQUIREMENT. An individual is not
2-7 eligible to be a member of the commission unless the individual has
2-8 been a resident of this state for at least 10 consecutive years
2-9 immediately before appointment.
2-10 Sec. 467.024. ELIGIBILITY. (a) An individual is not
2-11 eligible to be an appointed member of the commission if the
2-12 individual:
2-13 (1) owns or controls, directly or indirectly, more
2-14 than a 10 percent interest in a business entity or other
2-15 organization regulated by the commission or receiving funds from
2-16 the commission;
2-17 (2) is employed by or participates in the management
2-18 of a business entity or other organization regulated by the
2-19 commission or receiving funds from the commission;
2-20 (3) uses or receives a substantial amount of tangible
2-21 goods, services, or funds from the commission, other than
2-22 compensation or reimbursement authorized by law for commission
2-23 membership, attendance, or expenses;
2-24 (4) is an officer, employee, or paid consultant of a
2-25 Texas trade association in the field of bingo or lottery;
2-26 (5) is required to register as a lobbyist under
2-27 Chapter 305 because of the person's activities for compensation on
3-1 behalf of a profession related to the operation of the commission;
3-2 (6) is married to an individual described by
3-3 Subdivision (1)-(5);
3-4 (7) has been convicted of a felony or of any crime
3-5 involving moral turpitude; or
3-6 (8) is not a citizen of the United States.
3-7 (b) In this section, "Texas trade association" means a
3-8 nonprofit, cooperative, and voluntarily joined association of
3-9 business or professional competitors in this state designed to
3-10 assist its members and its industry or profession in dealing with
3-11 mutual business or professional problems and in promoting their
3-12 common interest.
3-13 Sec. 467.025. PROHIBITED CONDUCT. (a) A commission member
3-14 may not:
3-15 (1) accept any employment or remuneration from:
3-16 (A) a person that has a significant financial
3-17 interest in the lottery; or
3-18 (B) a bingo commercial lessor, bingo
3-19 distributor, or bingo manufacturer;
3-20 (2) play any lottery or bingo game conducted in this
3-21 state;
3-22 (3) accept or be entitled to accept any part of the
3-23 winnings to be paid from a lottery or bingo game conducted in this
3-24 state;
3-25 (4) use the member's official authority to affect the
3-26 result of an election or nomination for public office; or
3-27 (5) directly or indirectly coerce, attempt to coerce,
4-1 command, or advise a person to pay, lend, or contribute anything of
4-2 value to another person for political purposes.
4-3 (b) A commission member or former commission member or the
4-4 spouse of a commission member or former commission member may not
4-5 solicit or accept employment from a person regulated by the
4-6 commission before the second anniversary of the date on which the
4-7 commission member's service on the commission ends.
4-8 (c) In this section, "person that has a significant
4-9 financial interest in the lottery" has the meaning assigned by
4-10 Section 4.06, State Lottery Act (Article 179g, Vernon's Texas Civil
4-11 Statutes).
4-12 Sec. 467.026. REMOVAL OF COMMISSION MEMBER. (a) The
4-13 governor may remove a commission member if the member:
4-14 (1) does not have at the time of appointment the
4-15 qualifications required for appointment to the commission;
4-16 (2) does not maintain during service on the commission
4-17 the qualifications required for appointment to the commission;
4-18 (3) violates a prohibition established by Section
4-19 467.025;
4-20 (4) cannot discharge the member's duties for a
4-21 substantial part of the term for which the member is appointed
4-22 because of illness or disability; or
4-23 (5) is absent from more than half of the regularly
4-24 scheduled commission meetings that the member is eligible to attend
4-25 during a calendar year unless the absence is excused by majority
4-26 vote of the commission.
4-27 (b) The validity of an action of the commission is not
5-1 affected by the fact that it is taken when a ground for removal of
5-2 a commission member exists.
5-3 (c) If the presiding officer has knowledge that a potential
5-4 ground for removal exists, the presiding officer shall notify the
5-5 governor.
5-6 Sec. 467.027. COMPENSATION AND EXPENSES. (a) A commission
5-7 member is not entitled to compensation for serving on the
5-8 commission.
5-9 (b) A commission member is entitled to reimbursement for
5-10 actual and necessary expenses incurred in performing the member's
5-11 duties, subject to any applicable limitation in the General
5-12 Appropriations Act.
5-13 Sec. 467.028. OFFICES. The commission shall maintain its
5-14 general office in the city of Austin. The commission may also
5-15 establish branch offices.
5-16 Sec. 467.029. PRESIDING OFFICER. The governor shall
5-17 designate one member of the commission as presiding officer of the
5-18 commission to serve in that capacity at the pleasure of the
5-19 governor.
5-20 Sec. 467.030. MEETINGS. The commission shall hold at least
5-21 six regular meetings each year on dates fixed by the commission.
5-22 The commission may meet at other times at the call of the presiding
5-23 officer or as provided by commission rule.
5-24 Sec. 467.031. DIVISIONS. The commission shall establish
5-25 separate divisions to oversee bingo and the state lottery.
5-26 Sec. 467.032. EXECUTIVE DIRECTOR. (a) The commission shall
5-27 employ an executive director to administer this chapter.
6-1 (b) The executive director holds office at the will of the
6-2 commission and is specifically exempted from the Position
6-3 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
6-4 Statutes).
6-5 (c) The executive director or an acting executive director
6-6 shall be appointed by the commission no later than November 1,
6-7 1993.
6-8 Sec. 467.033. DIVISION DIRECTORS. The executive director
6-9 shall employ a director to oversee each division. A division
6-10 director serves at the will of the executive director and is
6-11 specifically exempted from the Position Classification Act of 1961
6-12 (Article 6252-11, Vernon's Texas Civil Statutes).
6-13 Sec. 467.034. EMPLOYEES. The executive director shall
6-14 employ other personnel necessary to administer the laws under the
6-15 commission's jurisdiction. Commission employees serve at the will
6-16 of the executive director.
6-17 Sec. 467.035. RESTRICTIONS ON EMPLOYMENT. (a) The
6-18 commission may not employ or continue to employ a person who owns a
6-19 financial interest in:
6-20 (1) a bingo commercial lessor, bingo distributor, or
6-21 bingo manufacturer; or
6-22 (2) a lottery sales agency or a lottery operator.
6-23 (b) The commission may not employ or continue to employ a
6-24 person who is a spouse, child, brother, sister, or parent residing
6-25 as a member of the same household in the principal place of
6-26 residence of a person who is subject to a disqualification
6-27 prescribed by Subsection (a).
7-1 (c) In employing the executive director and other employees,
7-2 the commission shall strive to reflect the diversity of the
7-3 population of the state as regards race, color, handicap, sex,
7-4 religion, age, and national origin.
7-5 Sec. 467.036. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
7-6 governor shall conduct an investigation of and is entitled to
7-7 obtain criminal history record information maintained by the
7-8 Department of Public Safety, the Federal Bureau of Investigation
7-9 Identification Division, or another law enforcement agency relating
7-10 to an individual the governor intends to appoint to the commission.
7-11 (b) The commission shall conduct an investigation of and is
7-12 entitled to obtain criminal history record information maintained
7-13 by the Department of Public Safety, the Federal Bureau of
7-14 Investigation Identification Division, or another law enforcement
7-15 agency relating to an individual the commission intends to employ.
7-16 (Sections 467.037-467.100 reserved for expansion
7-17 SUBCHAPTER C. POWERS AND DUTIES
7-18 Sec. 467.101. POWERS AND DUTIES OF COMMISSION. (a) The
7-19 commission has broad authority and shall exercise strict control
7-20 and close supervision over all activities authorized and conducted
7-21 in this state under:
7-22 (1) the Bingo Enabling Act (Article 179d, Vernon's
7-23 Texas Civil Statutes); and
7-24 (2) the State Lottery Act (Article 179g, Vernon's
7-25 Texas Civil Statutes).
7-26 (b) The commission shall ensure that games are conducted
7-27 fairly and in compliance with the law.
8-1 (c) The commission also has the powers and duties granted
8-2 under:
8-3 (1) the Bingo Enabling Act (Article 179d, Vernon's
8-4 Texas Civil Statutes); and
8-5 (2) the State Lottery Act (Article 179g, Vernon's
8-6 Texas Civil Statutes).
8-7 Sec. 467.102. RULES. The commission may adopt rules for the
8-8 enforcement and administration of this chapter and the laws under
8-9 the commission's jurisdiction.
8-10 Sec. 467.103. DUTIES OF EXECUTIVE DIRECTOR. (a) The
8-11 executive director shall perform all duties required by the
8-12 commission to administer this chapter and the laws under the
8-13 commission's jurisdiction. The executive director may not hold
8-14 other employment.
8-15 (b) The executive director may create, abolish, transfer,
8-16 and consolidate bureaus and other units that are part of the
8-17 commission and that are not expressly established by law as the
8-18 executive director determines to be necessary for the efficient
8-19 operation of the commission.
8-20 Sec. 467.104. RECORDS. (a) All commission records that are
8-21 not made confidential by other law are open to inspection by the
8-22 public during regular office hours.
8-23 (b) The executive director shall keep the records of the
8-24 commission.
8-25 Sec. 467.105. LEGAL REPRESENTATION. (a) The attorney
8-26 general shall designate at least one member of the attorney
8-27 general's staff to counsel and advise the commission and to
9-1 represent the commission in legal proceedings. The attorney
9-2 general shall make available to the appropriate prosecuting
9-3 attorneys any information obtained regarding a violation of a law
9-4 under the commission's jurisdiction.
9-5 (b) The attorney general may apply for injunctive or
9-6 declaratory relief to enforce a law under the commission's
9-7 jurisdiction or a rule adopted by the commission. Action by the
9-8 attorney general under this subsection does not limit the authority
9-9 of the attorney general or a prosecuting attorney to bring a
9-10 criminal proceeding.
9-11 SECTION 2. Section 1.02, State Lottery Act (Article 179g,
9-12 Vernon's Texas Civil Statutes), is amended by amending Subdivision
9-13 (2) and adding Subdivisions (9) and (10) to read as follows:
9-14 (2) "Division" means the lottery division established
9-15 by the Texas Lottery Commission under Chapter 467, Government Code,
9-16 and its subsequent amendments <in the office of the comptroller
9-17 under this Act>.
9-18 (9) "Commission" means the Texas Lottery Commission.
9-19 (10) "Executive director" means the executive director
9-20 of the Texas Lottery Commission.
9-21 SECTION 3. Section 2.01(l), State Lottery Act (Article 179g,
9-22 Vernon's Texas Civil Statutes), is amended to read as follows:
9-23 (l) The legislature intends that advertisements or
9-24 promotions sponsored by the commission <comptroller's office> or
9-25 the division for the lottery not be of a nature that unduly
9-26 influences any person to purchase a lottery ticket or number.
9-27 SECTION 4. Section 2.02, State Lottery Act (Article 179g,
10-1 Vernon's Texas Civil Statutes), is amended to read as follows:
10-2 Sec. 2.02. POWERS AND DUTIES OF EXECUTIVE <COMPTROLLER,>
10-3 DIRECTOR<,> AND COMMISSION <DIVISION>. (a) The commission
10-4 <comptroller> and executive director have broad authority and shall
10-5 exercise strict control and close supervision over all lottery
10-6 games conducted in this state to promote and ensure integrity,
10-7 security, honesty, and fairness in the operation and administration
10-8 of the lottery.
10-9 (b) The commission <comptroller> shall adopt all rules
10-10 necessary to administer this Act. The executive director may
10-11 propose rules to be adopted by the commission <comptroller>, but
10-12 the executive director's proposed rules have no effect until
10-13 adopted by the commission <comptroller>.
10-14 (c) The commission <comptroller> shall adopt rules to the
10-15 extent they are not inconsistent with the Open Meetings Act
10-16 (Article 6252-17, Vernon's Texas Civil Statutes) and the Open
10-17 Records Act (Article 6252-17a, Vernon's Texas Civil Statutes)
10-18 governing the:
10-19 (1) security for the lottery and the commission
10-20 <division>, including the development of an internal security plan;
10-21 (2) apportionment of the total revenues from the sale
10-22 of tickets and from all other sources in the amounts provided by
10-23 this Act;
10-24 (3) enforcement of prohibitions on the sale of tickets
10-25 to or by an individual younger than 18 years of age; and
10-26 (4) enforcement of prohibitions on a person playing a
10-27 lottery game or activity by telephone.
11-1 (d) The commission <comptroller> may adopt rules governing
11-2 the establishment and operation of the lottery, including rules
11-3 governing:
11-4 (1) the type of lottery games or activities to be
11-5 conducted;
11-6 (2) the price of each ticket;
11-7 (3) the number of winning tickets and amount of the
11-8 prize paid on each winning ticket;
11-9 (4) the frequency of the drawing or selection of a
11-10 winning ticket;
11-11 (5) the number and types of locations at which a
11-12 ticket may be sold;
11-13 (6) the method to be used in selling a ticket;
11-14 (7) the use of vending machines or electronic or
11-15 mechanical devices of any kind, other than machines or devices that
11-16 dispense currency or coins as prizes;
11-17 (8) the manner of paying a prize to the holder of a
11-18 winning ticket;
11-19 (9) the investigation of possible violations of this
11-20 Act or any rule adopted under this Act;
11-21 (10) the means of advertising to be used for the
11-22 lottery;
11-23 (11) the qualifications of vendors of lottery services
11-24 or equipment;
11-25 (12) the confidentiality of information relating to
11-26 the operation of the lottery, including:
11-27 (A) trade secrets;
12-1 (B) security measures, systems, or procedures;
12-2 (C) security reports;
12-3 (D) bids or other information regarding the
12-4 commission's <division's> contracts, if disclosure of the
12-5 information would impair the commission's <division's> ability to
12-6 contract for facilities, goods, or services on terms favorable to
12-7 the commission <division>;
12-8 (E) personnel information unrelated to
12-9 compensation, duties, qualifications, or responsibilities; and
12-10 (F) information obtained by commission
12-11 <division> security officers or investigators;
12-12 (13) the development and availability of a model
12-13 agreement governing the division of a prize among multiple
12-14 purchasers of a winning ticket purchased through a group purchase
12-15 or pooling arrangement;
12-16 (14) the criteria to be used in evaluating bids for
12-17 contracts for lottery facilities, goods, and services; or
12-18 (15) any other matter necessary or desirable as
12-19 determined by the commission <comptroller>, to promote and ensure:
12-20 (A) the integrity, security, honesty, and
12-21 fairness of the operation and administration of the lottery; and
12-22 (B) the convenience of players and holders of
12-23 winning tickets.
12-24 (e) If the executive director authorizes a person who is not
12-25 an employee of the commission <division> to sell tickets, the
12-26 person must be licensed as a sales agent by the commission
12-27 <division>. The executive director may establish a provisional
13-1 license or other classes of licenses necessary to regulate and
13-2 administer the quantity and type of lottery games or activities
13-3 provided at each licensed location. Each sales agent shall post a
13-4 cash bond, surety bond, letter of credit, certificate of deposit,
13-5 or other security approved by the executive director, including the
13-6 contribution of cash to a pooled bond fund established by the
13-7 executive director to protect the state from possible losses. The
13-8 amount of the security shall be determined by the executive
13-9 director and shall reflect the possible losses to the state from
13-10 the operation of the sales agent. The executive director may also
13-11 require a sales agent to maintain insurance if necessary to protect
13-12 the interests of the state. As prescribed by rule <division
13-13 rules>, each sales agent shall prominently display the license in
13-14 each place of business or activity at which the sales agent sells
13-15 tickets.
13-16 (f) The commission <comptroller> shall make an annual report
13-17 to the governor and the legislature that provides a summary of
13-18 lottery revenues, prize disbursements, and other expenses for the
13-19 fiscal year preceding the report. The report must be in the form
13-20 and reported in the time provided by the General Appropriations
13-21 Act.
13-22 (g) The executive director may contract with or employ a
13-23 person to perform a function, activity, or service in connection
13-24 with the operation of the lottery as prescribed by the executive
13-25 director. A person with whom the executive director contracts to
13-26 operate a lottery must be eligible for a sales agent license under
13-27 Section 3.02 of this Act.
14-1 (h) <A contract for independent consulting, management
14-2 services, or activities related to the establishment or
14-3 implementation of lottery operations is not subject to:>
14-4 <(1) the State Purchasing and General Services Act
14-5 (Article 601b, Vernon's Texas Civil Statutes);>
14-6 <(2) the Professional Services Procurement Act
14-7 (Article 664-4, Vernon's Texas Civil Statutes);>
14-8 <(3) Chapter 454, Acts of the 65th Legislature,
14-9 Regular Session, 1977 (Article 6252-11c, Vernon's Texas Civil
14-10 Statutes); or>
14-11 <(4) the Information Resources Management Act (Article
14-12 4413(32j), Revised Statutes).>
14-13 <(i) This subsection and Subsection (h) of this section
14-14 expire September 1, 1993.>
14-15 <(j)> Each lottery operator's and sales agent's records are
14-16 subject to audit by the commission <division, the comptroller,> and
14-17 the state auditor. For the purpose of carrying out this Act, the
14-18 executive director<, comptroller,> or state auditor may examine all
14-19 books, records, papers, or other objects that the executive
14-20 director<, comptroller,> or state auditor determines are necessary
14-21 for conducting a complete examination under this Act and may also
14-22 examine under oath any officer, director, or employee of a lottery
14-23 operator or sales agent. The executive director<, comptroller,> or
14-24 state auditor may conduct an examination at the principal office or
14-25 any other office of the lottery operator or sales agent or may
14-26 require the lottery operator or sales agent to produce the records
14-27 at the office of the commission <division, comptroller,> or state
15-1 auditor. If a sales agent refuses to permit an examination or to
15-2 answer any question authorized by this subsection, the executive
15-3 director <comptroller> may summarily suspend the license of the
15-4 sales agent under Section 3.03 of this Act until the examination is
15-5 completed as required. Section 321.013(h), Government Code, does
15-6 not apply to an audit of a lottery operator or sales agent.
15-7 (i) <(k)> The commission <comptroller> shall adopt rules
15-8 prohibiting the operation of any game using a video lottery machine
15-9 or machine. As used in this subsection "video lottery machine" or
15-10 "machine" means any electronic video game machine that, upon
15-11 insertion of cash, is available to play or simulate the play of a
15-12 video game, including but not limited to video poker, keno, and
15-13 blackjack, utilizing a video display and microprocessors in which
15-14 the player may receive free games or credits that can be redeemed
15-15 for cash, coins or tokens, or that directly dispenses cash, coins,
15-16 or tokens.
15-17 SECTION 5. Article 2, State Lottery Act (Article 179g,
15-18 Vernon's Texas Civil Statutes), is amended by adding Section 2.021
15-19 to read as follows:
15-20 Sec. 2.021. REVIEW BY COMPTROLLER. The comptroller shall
15-21 perform an annual review of the management and operations of the
15-22 lottery and may examine such books, records, documents, things, or
15-23 persons as may be necessary for that purpose. The comptroller
15-24 shall report the results of his review to the governor, lieutenant
15-25 governor, and the speaker of the house of representatives.
15-26 SECTION 6. Section 2.03(a), State Lottery Act (Article 179g,
15-27 Vernon's Texas Civil Statutes), is amended to read as follows:
16-1 (a) The executive director or a lottery operator may not
16-2 establish or operate a lottery game or activity in which the winner
16-3 is chosen on the basis of the outcome of a sports event.
16-4 SECTION 7. Sections 2.04(a)-(f), (h), and (k), State Lottery
16-5 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
16-6 read as follows:
16-7 (a) The executive director may establish procedures for the
16-8 purchase or lease of facilities, goods, and services and make any
16-9 purchases, leases, or contracts that are necessary for carrying out
16-10 the purposes of this Act. The procedures shall, as determined
16-11 feasible and appropriate by the executive director, promote
16-12 competition to the maximum extent possible. In all procurement
16-13 decisions, the executive director shall take into account the
16-14 particularly sensitive nature of the lottery and shall act to
16-15 promote and ensure integrity, security, honesty, and fairness in
16-16 the operation and administration of the lottery and the objective
16-17 of producing revenues for the state treasury.
16-18 (b) The executive director may not award a contract for the
16-19 purchase or lease of facilities, goods, or services related to
16-20 lottery operations to a person who would be denied a license as a
16-21 sales agent under Section 3.02 of this Act.
16-22 (c) The procurement procedures adopted by the executive
16-23 director shall, as determined feasible and appropriate by the
16-24 executive director, afford any party who is aggrieved by the terms
16-25 of a solicitation or the award of a contract an opportunity to
16-26 protest the executive director's action to the commission
16-27 <comptroller>. The protest procedures shall provide for an
17-1 expedient resolution of the protest in order to avoid substantially
17-2 delaying a solicitation or contract award that is necessary for the
17-3 timely implementation of a lottery game. A protest must be in
17-4 writing and be filed with the commission <comptroller> not later
17-5 than 72 hours after receipt of notice of the executive director's
17-6 action.
17-7 (d) A party who is aggrieved by the commission's
17-8 <comptroller's> resolution of a protest under Subsection (c) of
17-9 this section may file an action in the district court of Travis
17-10 County. The court shall give preference to hearings and trials of
17-11 actions under this section. If the party filing the action seeks
17-12 to enjoin the implementation of a solicitation or contract, the
17-13 party shall post a bond that is payable to the state if the party
17-14 does not prevail in the appeal, and is in an amount sufficient to
17-15 compensate the state for the revenue that would be lost due to the
17-16 delay in lottery operations.
17-17 (e) A contract for the acquisition or provision of
17-18 facilities, supplies, equipment, materials, or services related to
17-19 the operation of the lottery shall provide for liquidated damages
17-20 and a performance bond in an amount equal to the executive
17-21 director's best available estimate of the revenue that would be
17-22 lost if the contractor fails to meet deadlines specified in the
17-23 contract.
17-24 (f) On request of the executive director, the <State
17-25 Purchasing and> General Services Commission shall assist the
17-26 executive director in:
17-27 (1) acquiring facilities, supplies, materials,
18-1 equipment, and services under the State Purchasing and General
18-2 Services Act (Article 601b, Vernon's Texas Civil Statutes); or
18-3 (2) establishing procedures for the executive
18-4 director's accelerated acquisition of facilities, supplies,
18-5 materials, equipment, and services for the operation of the
18-6 lottery.
18-7 (h) Notwithstanding the provisions of the Public Utility
18-8 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
18-9 commission <comptroller> may negotiate rates and execute contracts
18-10 with telecommunications service providers for the interexchange
18-11 services necessary for the operation of the lottery. The
18-12 commission <comptroller> may acquire transmission facilities by
18-13 lease, purchase, or lease-purchase. The acquisition of
18-14 transmission facilities shall be done on a competitive bid basis if
18-15 possible.
18-16 (k) The commission <comptroller> shall require any person
18-17 seeking to contract for goods or services relating to the
18-18 implementation and administration of this Act to submit to
18-19 competitive bidding procedures in accordance with rules established
18-20 by the commission <comptroller>. Such procedures shall be for the
18-21 purpose of insuring fairness and integrity.
18-22 SECTION 8. Section 2.05(a), State Lottery Act (Article 179g,
18-23 Vernon's Texas Civil Statutes), is amended to read as follows:
18-24 (a) In all contracts for lottery equipment, supplies,
18-25 services, and advertising, the commission <division> and each
18-26 lottery operator shall give preference to equipment or supplies
18-27 produced in this state or services or advertising offered by
19-1 bidders from this state, the cost to the state and quality being
19-2 equal.
19-3 SECTION 9. Sections 2.06(a) and (c), State Lottery Act
19-4 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
19-5 as follows:
19-6 (a) The executive director<, the division,> and each lottery
19-7 operator shall take positive steps to:
19-8 (1) inform minority businesses of opportunities to:
19-9 (A) provide lottery equipment and supplies to
19-10 the commission <division>;
19-11 (B) provide services, including advertising, to
19-12 the commission <division> for the operation of the lottery; or
19-13 (C) obtain a license to sell lottery tickets;
19-14 (2) waive or modify bond requirements, if feasible;
19-15 (3) award contracts for lottery equipment or supplies
19-16 to minority businesses when possible;
19-17 (4) award contracts for lottery services, including
19-18 advertising, to minority businesses when possible;
19-19 (5) license minority businesses as sales agents;
19-20 (6) monitor the effectiveness of the efforts to
19-21 increase the ability of minority businesses to do business with the
19-22 commission <division>; and
19-23 (7) require all bidders or contractors, when
19-24 appropriate, to include specific plans or arrangements to utilize
19-25 subcontracts with minority businesses.
19-26 (c) The commission <comptroller> shall annually report to
19-27 the legislature and the governor on the level of minority business
20-1 participation as pertains to both the commission's <division's>
20-2 contracts and the licensure of sales agents. The report shall
20-3 include recommendations for the improvement of minority business
20-4 opportunities in lottery-related business.
20-5 SECTION 10. Sections 2.07-2.11, State Lottery Act (Article
20-6 179g, Vernon's Texas Civil Statutes), are amended to read as
20-7 follows:
20-8 Sec. 2.07. Television Contracts. If the drawing or
20-9 selection of winning tickets is televised under a contract with the
20-10 commission <division>, the contract must be awarded by competitive
20-11 bid. The commission <comptroller> shall adopt rules governing the
20-12 competitive bidding process. Money received under the contract
20-13 shall be deposited in the state lottery account established under
20-14 Section 5.02 of this Act.
20-15 Sec. 2.08. Publicity of Individuals Prohibited. A state
20-16 officer <or employee>, including a commission member or <the
20-17 comptroller,> the executive director, or an officer or employee of
20-18 the commission <comptroller's office or the division,> may not
20-19 appear in an advertisement or promotion for the lottery that is
20-20 sponsored by the commission <comptroller's office or the division>
20-21 or in a televised lottery drawing. An advertisement or promotion
20-22 for the lottery may not contain the likeness or name of a state
20-23 officer <or employee>, including a commission member or <the
20-24 comptroller,> the executive director, or an officer or employee of
20-25 the commission <comptroller's office or the division>. In
20-26 connection with providing security for the lottery, this section
20-27 shall not prohibit a security officer or investigator employed by
21-1 the commission <division> from appearing in a televised lottery
21-2 drawing or other promotion for the lottery that is sponsored by the
21-3 commission <comptroller's office or the division>. Notwithstanding
21-4 the provisions of this section, the executive director may
21-5 designate an employee of the commission <division> to participate
21-6 in a promotional event<, the purpose of which is to award a prize>.
21-7 Sec. 2.09. Audit. The executive director shall provide for
21-8 a certified public accountant to conduct an independent audit for
21-9 each fiscal year of all accounts and transactions of the lottery.
21-10 The certified public accountant may not have, as determined by the
21-11 executive director, a significant financial interest in a sales
21-12 agent, lottery vendor, or lottery operator. The certified public
21-13 accountant shall present an audit report to the executive director,
21-14 the commission <comptroller>, the governor, and the legislature not
21-15 later than April 1 of the year following the fiscal year for which
21-16 the audit was performed. The report must contain recommendations
21-17 to enhance the earnings capability of the lottery and improve the
21-18 efficiency of lottery operations. The state auditor may review the
21-19 results of and working papers related to the audit.
21-20 Sec. 2.10. Investigations. The attorney general, the
21-21 district attorney for Travis County, or the district attorney,
21-22 criminal district attorney, or county attorney performing the
21-23 duties of district attorney for the county in which the violation
21-24 or alleged violation occurred may investigate a violation or
21-25 alleged violation of this Act and of the penal laws of this state
21-26 by the commission <division> or its employees, a sales agent, a
21-27 lottery vendor, or a lottery operator.
22-1 Sec. 2.11. Enforcement. (a) The executive director
22-2 <comptroller> or designated personnel of the commission <division>
22-3 may investigate violations of this Act and violations of the rules
22-4 adopted under this Act. After conducting investigations, the
22-5 executive director <comptroller>, a person designated by the
22-6 commission <comptroller>, or any law enforcement agency may file a
22-7 complaint with the district attorney of Travis County or with the
22-8 district attorney of the county in which a violation is alleged to
22-9 have occurred.
22-10 (b) The executive director <comptroller> has the
22-11 administrative, enforcement, and collection powers provided by
22-12 Subtitle B, Title 2, Tax Code, in regard to the lottery. For
22-13 purposes of the application of Title 2 of the Tax Code:
22-14 (1)<,> the state's share of proceeds from the sale of
22-15 lottery tickets is treated as if it were a tax; and
22-16 (2) a power granted to the comptroller may be
22-17 exercised by the commission.
22-18 SECTION 11. Article 2, State Lottery Act (Article 179g,
22-19 Vernon's Texas Civil Statutes), is amended by adding Section 2.111
22-20 to read as follows:
22-21 Sec. 2.111. VENUE. Venue is proper in Travis County or any
22-22 county in which venue is proper under Chapter 13, Code of Criminal
22-23 Procedure, and its subsequent amendments for:
22-24 (1) an offense under this Act;
22-25 (2) an offense under the Penal Code, if the accused:
22-26 (A) is a lottery operator, lottery vendor, sales
22-27 agent, or employee of the division; and
23-1 (B) is alleged to have committed the offense
23-2 while engaged in lottery activities; or
23-3 (3) an offense that involves property consisting of or
23-4 including lottery tickets under Title 7 or 11, Penal Code, and its
23-5 subsequent amendments.
23-6 SECTION 12. Sections 2.12(a)-(f), State Lottery Act (Article
23-7 179g, Vernon's Texas Civil Statutes), are amended to read as
23-8 follows:
23-9 (a) The executive director shall maintain a department of
23-10 security in the commission <division>. The executive director
23-11 shall appoint a deputy to administer the department. The deputy
23-12 must be qualified by training and experience in law enforcement or
23-13 security to supervise, direct, and administer the activities of the
23-14 department.
23-15 (b) The executive director may employ security officers or
23-16 investigators as the executive director considers necessary and may
23-17 commission security officers or investigators as peace officers.
23-18 The deputy and all investigators employed by the department of
23-19 security as peace officers must meet the requirements under Chapter
23-20 415, Government Code, for employment and commission as peace
23-21 officers.
23-22 (c) A security officer or investigator employed by the
23-23 department of security or a peace officer who is working in
23-24 conjunction with the commission <comptroller> or the Department of
23-25 Public Safety in the enforcement of this Act, without a search
23-26 warrant, may search and seize a lottery vending machine, lottery
23-27 computer terminal, or other lottery equipment that is located on
24-1 premises for which a person holds a sales agent license issued
24-2 under this Act.
24-3 (d) The Department of Public Safety, at the commission's
24-4 <comptroller's> request, shall perform a full criminal background
24-5 investigation of a prospective deputy or investigator of the
24-6 department of security. The commission <comptroller> shall
24-7 reimburse the Department of Public Safety for the actual costs of
24-8 an investigation.
24-9 (e) At least once every two years, the executive director
24-10 shall employ an independent firm that is experienced in security,
24-11 including computer security and systems security, to conduct a
24-12 comprehensive study of all aspects of lottery security, including:
24-13 (1) lottery personnel security;
24-14 (2) sales agent security;
24-15 (3) lottery operator and vendor security;
24-16 (4) security against ticket counterfeiting and
24-17 alteration and other means of fraudulent winning;
24-18 (5) security of lottery drawings;
24-19 (6) lottery computer, data communications, database,
24-20 and systems security;
24-21 (7) lottery premises and warehouse security;
24-22 (8) security of distribution of tickets;
24-23 (9) security of validation and payment procedures;
24-24 (10) security involving unclaimed prizes;
24-25 (11) security aspects of each lottery game;
24-26 (12) security against the deliberate placement of
24-27 winning tickets in lottery games that involve preprinted winning
25-1 tickets by persons involved in the production, storage,
25-2 transportation, or distribution of tickets; and
25-3 (13) other security aspects of lottery operations.
25-4 (f) The executive director shall provide the commission
25-5 <comptroller> with a complete report of the security study
25-6 conducted under Subsection (e) of this section. The commission
25-7 <comptroller> shall provide the governor and the legislature,
25-8 before the convening of each regular legislative session, with a
25-9 summary of the security study that shows the overall evaluation of
25-10 the lottery's security.
25-11 SECTION 13. Sections 2.13 and 2.14, State Lottery Act
25-12 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
25-13 as follows:
25-14 Sec. 2.13. DEMOGRAPHIC STUDIES. (a) The executive director
25-15 shall, every two years, employ an independent firm experienced in
25-16 demographic analysis to conduct a demographic study of lottery
25-17 players. The study shall include the income, age, sex, race,
25-18 education, and frequency of participation of players.
25-19 (b) The executive director shall report the results of the
25-20 demographic study conducted under Subsection (a) of this section to
25-21 the commission <comptroller>, the governor, and the legislature
25-22 before the convening of each regular legislative session.
25-23 Sec. 2.14. Confidential Information. The following
25-24 information is confidential and is exempt from disclosure under the
25-25 open records law, Chapter 424, Acts of the 63rd Legislature,
25-26 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
25-27 Statutes):
26-1 (1) security plans and procedures of the commission
26-2 <division or the office of the comptroller> designed to ensure the
26-3 integrity and security of the operation of the lottery;
26-4 (2) information of a nature that is designed to ensure
26-5 the integrity and security of the selection of winning tickets or
26-6 numbers in the lottery, other than information describing the
26-7 general procedures for selecting winning tickets or numbers; and
26-8 (3) the street address and telephone number of a prize
26-9 winner, if the prize winner has not consented to the release of the
26-10 information.
26-11 SECTION 14. Section 2.15(b), State Lottery Act (Article
26-12 179g, Vernon's Texas Civil Statutes), is amended to read as
26-13 follows:
26-14 (b) An investigation report or other document submitted by
26-15 the Department of Public Safety to the commission <division>
26-16 becomes part of the investigative files of the commission
26-17 <division> and is subject to discovery by a person that is the
26-18 subject of the investigation report or other document.
26-19 SECTION 15. Sections 3.01(c), (f), and (h), State Lottery
26-20 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
26-21 read as follows:
26-22 (c) An applicant for a license under this section must apply
26-23 to the division under rules prescribed by the commission
26-24 <comptroller>, provide information necessary to determine the
26-25 applicant's eligibility for a license under Section 3.02 of this
26-26 Act, and provide other information considered necessary by the
26-27 commission <comptroller>. The applicant must include an
27-1 application fee with each application. The director shall set the
27-2 application fee in an amount that is at least sufficient to cover
27-3 the costs incurred by the division and by the Department of Public
27-4 Safety to process the application. The director shall determine
27-5 from information provided by the Department of Public Safety the
27-6 amount required for costs incurred by the department and shall
27-7 allocate those amounts to the department at least monthly. If the
27-8 director denies an application for a license based on a factor
27-9 listed in Subsection (f) of this section, the director shall refund
27-10 one-half of the application fee to the applicant. If the director
27-11 denies an application based on another factor, the director may not
27-12 refund any part of the application fee. Applications for licenses
27-13 must be available for public inspection during regular office
27-14 hours.
27-15 (f) The commission <comptroller> shall adopt rules under
27-16 which, before issuing a license to an applicant, the director shall
27-17 consider:
27-18 (1) the financial responsibility and security of the
27-19 applicant and the business or activity in which the applicant is
27-20 engaged;
27-21 (2) the public accessibility of the applicant's place
27-22 of business or activity;
27-23 (3) the sufficiency of existing sales agents to serve
27-24 the public convenience;
27-25 (4) whether individuals under 18 years of age
27-26 constitute a majority of the applicant's customers or as customers
27-27 provide a majority of the applicant's sales volume;
28-1 (5) the volume of expected sales; and
28-2 (6) any other factor that the director considers
28-3 appropriate.
28-4 (h) Unless suspended or revoked, a license expires on the
28-5 date specified in the license, which may not be later than the
28-6 second anniversary of its date of issuance. The commission
28-7 <comptroller> shall adopt rules for the renewal of licenses. The
28-8 director shall set the fee for a renewal of a license in an amount
28-9 at least sufficient to cover the cost of processing the renewal. A
28-10 sales agent must file a renewal application and pay the renewal fee
28-11 before the sales agent's license expires.
28-12 SECTION 16. Sections 3.02(a), (d), and (f), State Lottery
28-13 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
28-14 read as follows:
28-15 (a) After a hearing, the director shall deny an application
28-16 for a license or the commission <comptroller> shall suspend or
28-17 revoke a license if the director or commission <comptroller>, as
28-18 applicable, finds that the applicant or sales agent:
28-19 (1) is an individual who:
28-20 (A) has been convicted of a felony, criminal
28-21 fraud, gambling or a gambling-related offense, or a misdemeanor
28-22 involving moral turpitude, if less than 10 years has elapsed since
28-23 the termination of the sentence, parole, mandatory supervision, or
28-24 probation served for the offense;
28-25 (B) is or has been a professional gambler; <or>
28-26 (C) is married to <or related in the first
28-27 degree of consanguinity or affinity to> an individual:
29-1 (i) described in Paragraph (A) or (B) of
29-2 this subdivision; or
29-3 (ii) who is currently delinquent in the
29-4 payment of any state tax; or
29-5 (D) is an officer or employee of the commission
29-6 or a lottery operator; or
29-7 (E) is a spouse, child, brother, sister, or
29-8 parent residing as a member of the same household in the principal
29-9 place of residence of a person described by Paragraph (D) of this
29-10 subdivision;
29-11 (2) is not an individual, and an individual described
29-12 in Subdivision (1) of this subsection:
29-13 (A) is an officer or director of the applicant
29-14 or sales agent;
29-15 (B) holds more than 10 percent of the stock in
29-16 the applicant or sales agent;
29-17 (C) holds an equitable interest greater than 10
29-18 percent in the applicant or sales agent;
29-19 (D) is a creditor of the applicant or sales
29-20 agent who holds more than 10 percent of the applicant's or sales
29-21 agent's outstanding debt;
29-22 (E) is the owner or lessee of a business that
29-23 the applicant or sales agent conducts or through which the
29-24 applicant will conduct a ticket sales agency;
29-25 (F) shares or will share in the profits, other
29-26 than stock dividends, of the applicant or sales agent; or
29-27 (G) participates in managing the affairs of the
30-1 applicant or sales agent; <or>
30-2 <(H) is an employee of the applicant or sales
30-3 agent who is or will be involved in:>
30-4 <(i) selling tickets; or>
30-5 <(ii) handling money from the sale of
30-6 tickets;>
30-7 (3) is currently delinquent in the payment of any
30-8 state tax;
30-9 (4) is a person whose location for the sales agency
30-10 is:
30-11 (A) a racetrack at which wagering is authorized
30-12 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
30-13 Statutes);
30-14 (B) a location licensed for games of bingo under
30-15 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
30-16 Statutes);
30-17 (C) on land that is owned by:
30-18 (i) this state; or
30-19 (ii) a political subdivision of this
30-20 state, other than land used as a mass transportation facility that
30-21 is used by commercial carriers; or
30-22 (D) a location for which a person holds a wine
30-23 and beer retailer's permit, mixed beverage permit, mixed beverage
30-24 late hours permit, private club registration permit, or private
30-25 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
30-26 Alcoholic Beverage Code; or
30-27 (5) has violated this Act or a rule adopted under this
31-1 Act.
31-2 (d) If the director proposes to deny an application for a
31-3 license or the commission <comptroller> proposes to suspend or
31-4 revoke a license under this section, the applicant or sales agent
31-5 is entitled to written notice of the time and place of the hearing.
31-6 A notice may be served on an applicant or sales agent personally or
31-7 sent by certified or registered mail, return receipt requested, to
31-8 the person's mailing address as it appears on the commission's
31-9 <division's> records. A notice must be served or mailed not later
31-10 than the 20th day before the date of the hearing.
31-11 (f) The Administrative Procedure and Texas Register Act
31-12 (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
31-13 hearing under this section. The commission shall provide for a
31-14 formal administrative hearings process.
31-15 SECTION 17. Section 3.03, State Lottery Act (Article 179g,
31-16 Vernon's Texas Civil Statutes), is amended to read as follows:
31-17 Sec. 3.03. Summary Suspension of License. (a) The
31-18 commission <comptroller> may suspend a sales agent's license
31-19 summarily without notice or hearing if the commission <comptroller>
31-20 finds that the action is necessary to maintain the integrity,
31-21 security, honesty, or fairness of the operation or administration
31-22 of the lottery or to prevent financial loss to the state and:
31-23 (1) the sales agent fails to deposit money received
31-24 from ticket sales under Section 5.01 of this Act;
31-25 (2) an event occurs that would render the sales agent
31-26 ineligible for a license under Section 3.02 of this Act;
31-27 (3) the sales agent refuses to permit the executive
32-1 director, the director, the commission <comptroller>, or the state
32-2 auditor to examine the agent's books, records, papers, or other
32-3 objects under Section 2.02(h) <2.02(j)> of this Act; or
32-4 (4) the executive director learns the sales agent has
32-5 failed to disclose information that would, if disclosed, render the
32-6 sales agent ineligible for a license under Section 3.02 of this
32-7 Act.
32-8 (b) The commission <comptroller> may summarily suspend a
32-9 sales agent's license if proceedings for a preliminary hearing
32-10 before the commission or the commission's representative <the
32-11 comptroller or the comptroller's representative> are initiated
32-12 simultaneously with the summary suspension. The preliminary
32-13 hearing shall be set for a date not later than 10 days after the
32-14 date of the summary suspension, unless the parties agree to a later
32-15 date.
32-16 (c) At the preliminary hearing, the sales agent must show
32-17 cause why the license should not remain suspended pending a final
32-18 hearing on suspension or revocation. The Administrative Procedure
32-19 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
32-20 Statutes) does not apply <to the comptroller> in the administration
32-21 and enforcement of the summary suspension of a license under this
32-22 section. The rules governing a hearing on any other license
32-23 suspension or revocation under this Act govern a final
32-24 administrative hearing under this subsection.
32-25 (d) To initiate a proceeding to summarily suspend a sales
32-26 agent's license, the commission <comptroller> must serve notice to
32-27 the sales agent informing the agent of the right to a preliminary
33-1 hearing <before the comptroller or the comptroller's
33-2 representative> and of the time and place of the preliminary
33-3 hearing. The notice must be personally served on the sales agent
33-4 or an officer, employee, or agent of the sales agent or sent by
33-5 certified or registered mail, return receipt requested, to the
33-6 sales agent's mailing address as it appears on the commission's
33-7 <division's> records. The notice must state the alleged violations
33-8 that constitute grounds for summary suspension. The suspension is
33-9 effective at the time the notice is served. If notice is served in
33-10 person, the sales agent shall immediately surrender the license to
33-11 the commission <comptroller or to the comptroller's
33-12 representative>. If notice is served by mail, the sales agent
33-13 shall immediately return the license to the commission
33-14 <comptroller>. If the sales agent uses an on-line electronic
33-15 terminal to sell tickets, the director or a lottery operator on the
33-16 instructions of the director may terminate the connection of the
33-17 terminal to the commission's <division's> lottery computer at the
33-18 time:
33-19 (1) the proceeding to summarily suspend the license is
33-20 initiated; or
33-21 (2) the division discovers the sales agent has failed
33-22 to deposit money received from ticket sales, if the sales agent's
33-23 license is being summarily suspended under Subsection (a)(1) of
33-24 this section.
33-25 SECTION 18. Section 3.06, State Lottery Act (Article 179g,
33-26 Vernon's Texas Civil Statutes), is amended to read as follows:
33-27 Sec. 3.06. ACCESS TO CRIMINAL HISTORY AND FEDERAL TAX
34-1 INFORMATION. (a) The commission <comptroller> is entitled to
34-2 conduct an investigation of and is entitled to obtain criminal
34-3 history record information maintained by the Department of Public
34-4 Safety, the Federal Bureau of Investigation Identification
34-5 Division, or another law enforcement agency to assist in the
34-6 investigation of:
34-7 (1) a sales agent or an applicant for a sales agent
34-8 license;
34-9 (2) a person required to be named in a license
34-10 application;
34-11 (3) a lottery operator or prospective lottery
34-12 operator;
34-13 (4) an employee of a lottery operator or prospective
34-14 lottery operator, if the employee is or will be directly involved
34-15 in lottery operations;
34-16 (5) a person who manufactures or distributes lottery
34-17 equipment or supplies, or a representative of a person who
34-18 manufactures or distributes lottery equipment or supplies offered
34-19 to the lottery;
34-20 (6) a person who has submitted a written bid or
34-21 proposal to the commission <division> in connection with the
34-22 procurement of goods or services by the commission <division>, if
34-23 the amount of the bid or proposal exceeds $500;
34-24 (7) an employee or other person who works for or will
34-25 work for a sales agent or an applicant for a sales agent license;
34-26 (8) a person who proposes to enter into or who has a
34-27 contract with the commission <division> to supply goods or services
35-1 to the commission <division>; or
35-2 (9) if a person described in Subdivisions (1) through
35-3 (8) of this subsection is not an individual, an individual who:
35-4 (A) is an officer or director of the person;
35-5 (B) holds more than 10 percent of the stock in
35-6 the person;
35-7 (C) holds an equitable interest greater than 10
35-8 percent in the person;
35-9 (D) is a creditor of the person who holds more
35-10 than 10 percent of the person's outstanding debt;
35-11 (E) is the owner or lessee of a business that
35-12 the person conducts or through which the person will conduct
35-13 lottery-related activities;
35-14 (F) shares or will share in the profits, other
35-15 than stock dividends, of the person;
35-16 (G) participates in managing the affairs of the
35-17 person; or
35-18 (H) is an employee of the person who is or will
35-19 be involved in:
35-20 (i) selling tickets; or
35-21 (ii) handling money from the sale of
35-22 tickets.
35-23 (b) The commission <comptroller> shall conduct an
35-24 investigation of and obtain criminal history record information
35-25 maintained by the Department of Public Safety, the Federal Bureau
35-26 of Investigation Identification Division, or another law
35-27 enforcement agency to assist in the investigation of:
36-1 (1) the executive director or a prospective executive
36-2 director <of the division>; or
36-3 (2) an employee or prospective employee of the
36-4 commission <division>.
36-5 (c) Not later than one year after the date of each renewal,
36-6 the commission <comptroller> shall obtain criminal history record
36-7 information maintained by the Department of Public Safety on a
36-8 sales agent whose license is renewed under Section 3.01(h) of this
36-9 Act.
36-10 (d) The executive director may discharge from employment an
36-11 employee of the commission <division> who fails to provide a
36-12 complete legible set of fingerprints on request. The executive
36-13 director may refuse to consider a prospective employee of the
36-14 commission <division> who fails to provide a complete legible set
36-15 of fingerprints on request.
36-16 (e) The executive director may deny an application for a
36-17 license or the commission <comptroller> may suspend or revoke a
36-18 license if the applicant or sales agent fails on request to provide
36-19 a complete legible set of fingerprints of<:>
36-20 <(1)> a person required to be named in a license
36-21 application<; or>
36-22 <(2) an employee or other person who works or will
36-23 work for the applicant or sales agent, if the person:>
36-24 <(A) is or will be involved in the sale of
36-25 tickets; or>
36-26 <(B) handles or will handle money from the sale
36-27 of tickets>.
37-1 (f) All criminal history record information received by the
37-2 executive director is privileged information and is for the
37-3 exclusive use of the executive director and employees of the
37-4 commission <division> designated by the executive director. Except
37-5 on court order or as provided by Subsection (h) of this section,
37-6 the information may not be released or otherwise disclosed to any
37-7 other person or agency.
37-8 (g) All information received by the executive director from
37-9 the Internal Revenue Service is confidential and may only be used
37-10 as provided by the contract between the comptroller and the
37-11 Internal Revenue Service under which the information was obtained.
37-12 (h) The executive director or an employee of the commission
37-13 <division> may not provide any person being investigated under this
37-14 section with a copy of the person's criminal history record
37-15 obtained from the Department of Public Safety, the Federal Bureau
37-16 of Investigation Identification Division, or another law
37-17 enforcement agency. This subsection does not prevent the executive
37-18 director from disclosing to the person the dates and places of
37-19 arrests, offenses, and dispositions contained in the criminal
37-20 history records.
37-21 (i) A person commits an offense if the person releases or
37-22 discloses information received by the commission <comptroller>
37-23 under this section except on court order or as provided by
37-24 Subsection (h) of this section. An offense under this subsection
37-25 is a Class A misdemeanor.
37-26 (j) The executive director may request the cooperation of
37-27 the Department of Public Safety to perform a background
38-1 investigation of a person listed in Subsection (a) or (b) of this
38-2 section. The executive director shall reimburse the Department of
38-3 Public Safety for the actual cost of an investigation. The
38-4 executive director may require a person who is subject to
38-5 investigation to pay all costs of the investigation and to provide
38-6 any information, including fingerprints, necessary to carry out the
38-7 investigation or facilitate access to state or federal criminal
38-8 history record information. Payments made to the executive
38-9 director under this subsection shall be deposited in the general
38-10 revenue fund and may be used to reimburse the Department of Public
38-11 Safety for the actual costs of an investigation.
38-12 (k) Unless otherwise prohibited by law, the Department of
38-13 Public Safety may retain any record or information submitted to it
38-14 under this section. The Department of Public Safety shall notify
38-15 the executive director of any change in information provided to the
38-16 executive director when the Department of Public Safety learns of
38-17 the change.
38-18 (l) The commission shall adopt rules governing the custody
38-19 and use of criminal history record information obtained under this
38-20 section. The comptroller shall adopt necessary rules governing the
38-21 custody and use of information obtained from the Internal Revenue
38-22 Service under this section.
38-23 (m) The executive director may obtain information relating
38-24 to a person's qualification for licensing, employment, or
38-25 contracting under this Act from the Internal Revenue Service under
38-26 a contract between the comptroller and the Internal Revenue Service
38-27 on:
39-1 (1) a sales agent or an applicant for a sales agent
39-2 license;
39-3 (2) an employee or prospective employee of the
39-4 commission <division>;
39-5 (3) a person required to be named in a license
39-6 application;
39-7 (4) a lottery operator or prospective lottery
39-8 operator;
39-9 (5) an employee of a lottery operator or prospective
39-10 lottery operator, if the employee is or will be directly involved
39-11 in lottery operations;
39-12 (6) a person who manufactures or distributes lottery
39-13 equipment or supplies, or a representative of a person who
39-14 manufactures or distributes lottery equipment or supplies offered
39-15 to the lottery;
39-16 (7) a person who has submitted a written bid or
39-17 proposal to the commission <division> in connection with the
39-18 procurement of goods or services by the commission <division>;
39-19 (8) an employee or other person who works for or will
39-20 work for a sales agent or an applicant for a sales agent license;
39-21 or
39-22 (9) a person who proposes to enter into or who has a
39-23 contract with the commission <division> to supply goods or services
39-24 to the commission <division>.
39-25 (n) The executive director may award a contract for lottery
39-26 supplies or services, including a contract under Section 2.02(g) of
39-27 this Act, pending the completion of any investigation authorized by
40-1 this Act. A contract awarded under this subsection must include a
40-2 provision permitting the executive director to terminate the
40-3 contract without penalty if the investigation reveals that the
40-4 person to whom the contract is awarded would not be eligible for a
40-5 sales agent license under Section 3.02 of this Act. <The
40-6 director's authority to award a contract under this subsection
40-7 expires September 1, 1993. This subsection expires January 1,
40-8 1995.>
40-9 (o) <The comptroller shall obtain criminal history record
40-10 information maintained by the Department of Public Safety on any
40-11 person receiving a temporary license under Section 3.04 of this Act
40-12 not later than one year after the date of issuance of the temporary
40-13 license. This subsection expires September 1, 1993.>
40-14 <(p)> All fingerprints submitted to the Department of Public
40-15 Safety must be on a form prescribed by the Department of Public
40-16 Safety.
40-17 SECTION 19. Section 4.01, State Lottery Act (Article 179g,
40-18 Vernon's Texas Civil Statutes), is amended to read as follows:
40-19 Sec. 4.01. Tickets. (a) The executive director shall
40-20 prescribe the form of tickets. The toll-free "800" telephone
40-21 number established by the Texas Commission on Alcohol and Drug
40-22 Abuse under Section 461.018, Health and Safety Code, must be
40-23 printed on each ticket. The overall estimated odds of winning a
40-24 prize in a given game or activity must be printed on each ticket
40-25 and prominently displayed in association with the sale of lottery
40-26 products. The estimate must be based on reasonable projections and
40-27 past experience.
41-1 (b) By purchasing a ticket in a particular lottery game or
41-2 activity, a player agrees to abide by and be bound by the
41-3 commission's <division's> rules, including the rules applicable to
41-4 the particular lottery game or activity involved. The player also
41-5 acknowledges that the determination of whether the player is a
41-6 valid winner is subject to the commission's <division's> rules and
41-7 claims procedures, including those developed for the particular
41-8 lottery game or activity involved, and subject to any validation
41-9 tests established by the commission <division> for the particular
41-10 lottery game or activity involved. If the lottery uses tickets, an
41-11 abbreviated form of the rules or a reference to the rules may
41-12 appear on the tickets.
41-13 (c) A person claiming or attempting to claim a lottery prize
41-14 or a share of a lottery prize represents that the ticket or other
41-15 item showing that the person is entitled to the prize or share was
41-16 lawfully obtained, is not stolen, forged, or altered, and has not
41-17 previously been redeemed.
41-18 SECTION 20. Section 4.02, State Lottery Act (Article 179g,
41-19 Vernon's Texas Civil Statutes), is amended to read as follows:
41-20 Sec. 4.02. Certain Sales of Tickets Prohibited. (a) A
41-21 person commits an offense if the person intentionally or knowingly
41-22 sells a ticket at a price the person knows is greater than that
41-23 fixed by the commission <division> or by the lottery operator
41-24 authorized to set that price. An offense under this subsection is
41-25 a Class A misdemeanor.
41-26 (b) Except as provided by this subsection, a person who is
41-27 not a sales agent or an employee of a sales agent commits an
42-1 offense if the person intentionally or knowingly sells a ticket.
42-2 An offense under this subsection is a felony of the third degree.
42-3 A lottery operator may sell tickets to a licensed sales agent. A
42-4 person who is not a sales agent may distribute tickets as premiums
42-5 to customers, employees, or other persons who deal with the person
42-6 if no purchase <or service> is required to entitle the recipient to
42-7 the ticket. A qualified organization as defined in Section 2,
42-8 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
42-9 added by Chapter 957, Acts of the 71st Legislature, Regular
42-10 Session, 1989), may distribute tickets as a prize in a raffle
42-11 authorized by the Charitable Raffle Enabling Act.
42-12 (c) A person commits an offense if the person sells a ticket
42-13 at a location other than the location of a sales agency. An
42-14 offense under this subsection is a Class A misdemeanor.
42-15 (d) A sales agent or an employee of a sales agent commits an
42-16 offense if the person <may not> intentionally or knowingly sells or
42-17 offers <sell or offer> to sell a ticket to an individual that the
42-18 person knows is younger than 18 years of age. An offense under
42-19 this subsection is a Class C misdemeanor.
42-20 (e) A person may not purchase <sell> a ticket or claim,
42-21 collect, or receive <pay> a lottery prize or a share of a lottery
42-22 prize if <to another person that> the person <knows> is:
42-23 (1) a member, officer, or employee of a person that
42-24 has a contract with the commission <division> to sell or lease
42-25 goods or services used in the lottery;
42-26 (2) a member, officer, or employee of a lottery
42-27 operator;
43-1 (3) an officer or employee of the commission
43-2 <comptroller>; or
43-3 (4) a spouse, child, brother, sister, or parent
43-4 residing as a member of the same household in the principal place
43-5 of residence of a person described by Subdivision (1), (2), or (3)
43-6 of this subsection.
43-7 (f) A person 18 years of age or older may purchase a ticket
43-8 to give as a gift to another person, including an individual
43-9 younger than 18 years of age.
43-10 (g) If an individual listed in Subsection (e) of this
43-11 section purchases a ticket or claims or otherwise attempts to
43-12 collect or receive a lottery prize or a share of a lottery prize or
43-13 an individual younger than 18 years of age directly purchases a
43-14 ticket, the individual is not eligible to receive a prize or share
43-15 of a prize, and the prize or share of a prize otherwise payable on
43-16 the ticket is treated as an unclaimed prize as provided by Section
43-17 5.05 of this Act.
43-18 (h) <(g)> A sales agent or an employee of a sales agent
43-19 commits an offense if the person intentionally or knowingly sells a
43-20 ticket to another person by extending credit or lending money to
43-21 the person to enable the person to purchase the ticket. An offense
43-22 under this subsection is a Class C misdemeanor.
43-23 (i) <(h)> A person commits an offense if the person
43-24 intentionally or knowingly sells <may not purchase> a ticket and:
43-25 (1) accepts <with> a food stamp coupon issued under
43-26 the food stamp program administered under Chapter 33, Human
43-27 Resources Code, as payment;
44-1 (2) accepts <with> a credit card or a debit card as a
44-2 source of payment;
44-3 (3) the sale is made over the telephone; or
44-4 (4) the sale is made by mail-order sales.
44-5 (j) <(i)> A person commits an offense if the person
44-6 intentionally or knowingly purchases <may not pay> for a ticket
44-7 with:
44-8 (1) a food stamp coupon issued under the food stamp
44-9 program administered under Chapter 33, Human Resources Code; or
44-10 (2) the proceeds of a check issued as a payment under
44-11 the Aid to Families with Dependent Children program administered
44-12 under Chapter 31, Human Resources Code.
44-13 (k) An offense under Subsection (i) or (j) of this section
44-14 is a Class C misdemeanor.
44-15 (l) A person commits an offense if, for financial gain, the
44-16 person establishes or promotes a group purchase or pooling
44-17 arrangement under which tickets are purchased on behalf of the
44-18 group or pool and any prize is divided among the members of the
44-19 group or pool, and the person intentionally or knowingly:
44-20 (1) uses any part of the funds solicited or accepted
44-21 for a purpose other than purchasing tickets on behalf of the group
44-22 or pool; or
44-23 (2) retains a share of any prize awarded as
44-24 compensation for establishing or promoting the group purchase or
44-25 pooling arrangement.
44-26 (m) An offense under Subsection (l) of this section is a
44-27 felony of the third degree.
45-1 SECTION 21. Section 4.03, State Lottery Act (Article 179g,
45-2 Vernon's Texas Civil Statutes), is amended by amending Subsection
45-3 (d) and adding Subsection (h) to read as follows:
45-4 (d) An offense under Subsection (c) of this section is a
45-5 Class A misdemeanor unless it is shown on the trial of the offense
45-6 that:
45-7 (1) the amount claimed <or attempted to be claimed> is
45-8 greater than $200 but not more than $10,000, in which event the
45-9 offense is a felony of the third degree;
45-10 (2) the amount claimed <or attempted to be claimed> is
45-11 greater than $10,000, in which event the offense is a felony of the
45-12 second degree; or
45-13 (3) the person has previously been convicted of an
45-14 offense under this section, in which event the offense is a felony
45-15 of the third degree, unless the offense is designated as a felony
45-16 of the second degree under Subdivision (2) of this subsection.
45-17 (h) In this section, "claim" includes an attempt to claim,
45-18 without regard to whether the attempt is successful.
45-19 SECTION 22. Section 4.04(b), State Lottery Act (Article
45-20 179g, Vernon's Texas Civil Statutes), is amended to read as
45-21 follows:
45-22 (b) A person commits an offense if the person knowingly
45-23 refuses to produce for inspection by the director, executive
45-24 director, commission <comptroller>, or state auditor a book,
45-25 record, or document required to be maintained or made by this Act
45-26 or a rule adopted under this Act.
45-27 SECTION 23. Section 4.045(a), State Lottery Act (Article
46-1 179g, Vernon's Texas Civil Statutes), is amended to read as
46-2 follows:
46-3 (a) A person commits an offense if the person intentionally
46-4 or<,> knowingly<, recklessly, or with criminal negligence> makes a
46-5 material and false, incorrect, or deceptive statement to a person
46-6 conducting an investigation or exercising discretion under this Act
46-7 or a rule adopted under this Act.
46-8 SECTION 24. Sections 4.06(a)-(e), State Lottery Act (Article
46-9 179g, Vernon's Texas Civil Statutes), are amended to read as
46-10 follows:
46-11 (a) A commission member <The comptroller, the state
46-12 treasurer>, the executive director, the director, or an employee of
46-13 the division may not knowingly accept a gift or political
46-14 contribution from:
46-15 (1) a person that has a significant financial interest
46-16 in the lottery;
46-17 (2) a person related in the first degree of
46-18 consanguinity or affinity to a person that has a significant
46-19 financial interest in the lottery;
46-20 (3) a person that owns more than a 10 percent interest
46-21 in an entity that has a significant financial interest in the
46-22 lottery;
46-23 (4) a political committee that is directly
46-24 established, administered, or controlled, in whole or in part, by a
46-25 person that has a significant financial interest in the lottery; or
46-26 (5) a person who, within the two years preceding the
46-27 date of the gift or contribution, won a lottery prize exceeding
47-1 $600 in amount or value.
47-2 (b) A former commission member, former executive director,
47-3 <comptroller, former state treasurer,> or former director may not:
47-4 (1) for compensation, represent a person that has made
47-5 or intends to make a bid to operate the lottery before the
47-6 commission <comptroller> before the second anniversary of the date
47-7 that the person's service in office or employment with the division
47-8 ceases;
47-9 (2) represent any person or receive compensation for
47-10 services rendered on behalf of any person regarding a particular
47-11 matter in which the former officer or employee participated during
47-12 the period of service or employment with the division, either
47-13 through personal involvement or because the matter was within the
47-14 scope of the officer's or employee's official responsibility; or
47-15 (3) for compensation, communicate directly with a
47-16 member of the legislative branch to influence legislation on behalf
47-17 of a person that has a significant financial interest in the
47-18 lottery, before the second anniversary of the date that the
47-19 person's service in office or employment with the division ceases.
47-20 (c) A former commission member <comptroller, former state
47-21 treasurer>, former executive director, former director, or former
47-22 employee of the division may not, before the second anniversary of
47-23 the date that the person's service in office or employment with the
47-24 division ceases, knowingly accept a gift or political contribution
47-25 from:
47-26 (1) a person that has a significant financial interest
47-27 in the lottery;
48-1 (2) a person related in the first degree of
48-2 consanguinity or affinity to a person that has a significant
48-3 financial interest in the lottery;
48-4 (3) a person that owns more than a 10 percent interest
48-5 in an entity that has a significant financial interest in the
48-6 lottery;
48-7 (4) a political committee that is directly
48-8 established, administered, or controlled, in whole or in part, by a
48-9 person that has a significant financial interest in the lottery; or
48-10 (5) a person who, within the two years preceding the
48-11 date of the gift or contribution, won a lottery prize exceeding
48-12 $600 in amount or value.
48-13 (d) A person may not knowingly make a gift or political
48-14 contribution to a commission member <the comptroller, the state
48-15 treasurer>, the executive director, the director, or an employee of
48-16 the division if the person:
48-17 (1) has a significant financial interest in the
48-18 lottery;
48-19 (2) is related in the first degree of consanguinity or
48-20 affinity to a person that has a significant financial interest in
48-21 the lottery;
48-22 (3) owns more than a 10 percent interest in an entity
48-23 that has a significant financial interest in the lottery;
48-24 (4) is a political committee that is directly
48-25 established, administered, or controlled, in whole or in part, by a
48-26 person that has a significant financial interest in the lottery; or
48-27 (5) within the two years preceding the date of the
49-1 gift or contribution, won a lottery prize exceeding $600 in amount
49-2 or value.
49-3 (e) A person may not knowingly make a gift or political
49-4 contribution to a former commission member <comptroller, former
49-5 state treasurer>, former executive director, former director, or
49-6 former employee of the division before the second anniversary of
49-7 the date that the person's service in office or employment with the
49-8 division ceases, if the person:
49-9 (1) has a significant financial interest in the
49-10 lottery;
49-11 (2) is related in the first degree of consanguinity or
49-12 affinity to a person that has a significant financial interest in
49-13 the lottery;
49-14 (3) owns more than a 10 percent interest in an entity
49-15 that has a significant financial interest in the lottery;
49-16 (4) is a political committee that is directly
49-17 established, administered, or controlled, in whole or in part, by a
49-18 person that has a significant financial interest in the lottery; or
49-19 (5) within the two years preceding the date of the
49-20 gift or contribution, won a lottery prize exceeding $600 in amount
49-21 or value.
49-22 SECTION 25. Article 4, State Lottery Act (Article 179g,
49-23 Vernon's Texas Civil Statutes), is amended by adding Section 4.07
49-24 to read as follows:
49-25 Sec. 4.07. AGGREGATION OF AMOUNTS INVOLVED. When amounts
49-26 are claimed, attempted to be claimed, or obtained in violation of
49-27 this Act pursuant to one scheme or continuing course of conduct,
50-1 whether from the same or several sources, the conduct may be
50-2 considered as one offense and the amounts aggregated in determining
50-3 the grade of the offense.
50-4 SECTION 26. Section 5.01(b), State Lottery Act (Article
50-5 179g, Vernon's Texas Civil Statutes), is amended to read as
50-6 follows:
50-7 (b) The director may require sales agents to establish
50-8 separate electronic funds transfer accounts for the purposes of
50-9 depositing money from ticket sales, making payments to the
50-10 division, and receiving payments from the division. The commission
50-11 <comptroller> by rule shall establish the procedures for depositing
50-12 money from ticket sales into electronic funds transfer accounts, as
50-13 well as other procedures regarding the handling of money from
50-14 ticket sales. The director may not permit a sales agent to make
50-15 payments to the division or a lottery operator in cash.
50-16 SECTION 27. Sections 5.02(b), (f), and (j), State Lottery
50-17 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
50-18 read as follows:
50-19 (b) Money in the state lottery account shall be used only
50-20 for the following purposes and shall be distributed as follows:
50-21 (1) the payment of prizes to the holders of winning
50-22 tickets;
50-23 (2) the payment of costs incurred in the operation and
50-24 administration of the lottery, including any fees received by a
50-25 lottery operator, provided that the costs incurred in a fiscal
50-26 biennium may not exceed an amount equal to 15 percent of the gross
50-27 revenue accruing from the sale of tickets in that biennium;
51-1 (3) the establishment of a pooled bond fund, lottery
51-2 prize reserve fund, unclaimed prize fund, and prize payment
51-3 account;
51-4 (4) the transfer of amounts to the state lottery
51-5 stabilization fund as provided by Subsections (c), (d), and (e) of
51-6 this section; and
51-7 (5) <(4)> the balance, after creation of a reserve
51-8 sufficient to pay the amounts needed or estimated to be needed
51-9 under <provided by> Subdivisions (1) through (3) <and (2)> of this
51-10 subsection, to be transferred to the unobligated portion of the
51-11 general revenue fund, on or before the 15th day of each month.
51-12 (f) The state treasurer periodically shall file reports with
51-13 the executive director providing information regarding the revenue
51-14 credited to the state lottery account, the investments of the money
51-15 in the account, and the distributions made from the account.
51-16 (j) Notwithstanding Subsection (b)(5) <(b)(4)> and
51-17 Subsection (d) of this section, the initial transfer of revenue
51-18 from the state lottery account to the unobligated portion of the
51-19 general revenue fund and the state lottery stabilization fund under
51-20 those subsections shall be made on the 15th day of the month
51-21 following the month in which the earlier of the following occurs:
51-22 (1) the first ticket is sold to a player under this
51-23 Act; or
51-24 (2) the executive director receives liquidated damages
51-25 or a payment under a performance bond under a contract with a
51-26 lottery operator.
51-27 SECTION 28. Section 5.02(h)(4), State Lottery Act (Article
52-1 179g, Vernon's Texas Civil Statutes), is amended to read as
52-2 follows:
52-3 (4) "Net lottery revenue" means the gross lottery
52-4 revenue minus the amounts distributed or obligated for a purpose
52-5 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
52-6 section.
52-7 SECTION 29. Sections 5.03(j) and (l), State Lottery Act
52-8 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
52-9 as follows:
52-10 (j) The executive director shall deduct the amount of a
52-11 delinquent tax or other money from the winnings of a person who has
52-12 been finally determined to be:
52-13 (1) delinquent in the payment of a tax or other money
52-14 collected by the comptroller, the state treasurer, or the Texas
52-15 Alcoholic Beverage Commission;
52-16 (2) delinquent in making child support payments
52-17 administered or collected by the attorney general; <or>
52-18 (3) in default on a loan made under Chapter 52,
52-19 Education Code; or
52-20 (4) in default on a loan guaranteed under Chapter 57,
52-21 Education Code.
52-22 (l) The attorney general, comptroller, state treasurer,
52-23 Texas Alcoholic Beverage Commission, Texas Higher Education
52-24 Coordinating Board, and Texas Guaranteed Student Loan Corporation
52-25 shall each provide the executive director with a report of persons
52-26 who have been finally determined to be delinquent in the payment of
52-27 a tax or other money collected by the agency. The commission
53-1 <comptroller> shall adopt rules regarding the form and frequency of
53-2 reports under this subsection.
53-3 SECTION 30. Section 47.06(g), Penal Code, is amended to read
53-4 as follows:
53-5 (g) It is a defense to prosecution for an offense under this
53-6 chapter that the conduct was authorized, directly or indirectly, by
53-7 the State Lottery Act, the lottery division of <in> the Texas
53-8 Lottery Commission <office of the comptroller>, the Texas Lottery
53-9 Commission <comptroller>, the executive director of the Texas
53-10 Lottery Commission, or the director of the lottery division.
53-11 SECTION 31. Section 47.14, Penal Code, is amended to read as
53-12 follows:
53-13 Sec. 47.14. STATE LOTTERY. It is a defense to prosecution
53-14 for an offense under this chapter that the conduct:
53-15 (1) consisted entirely of participation in the state
53-16 lottery authorized by the State Lottery Act; or
53-17 (2) was a necessary incident to the operation of the
53-18 state lottery and was authorized, directly or indirectly, by the
53-19 State Lottery Act, the lottery division of <in> the Texas Lottery
53-20 Commission <office of the comptroller>, the Texas Lottery
53-21 Commission <comptroller>, the executive director of the Texas
53-22 Lottery Commission, or the director of the lottery division.
53-23 SECTION 32. Section 111.0047(a), Tax Code, is amended to
53-24 read as follows:
53-25 (a) If a person fails to comply with any provision of this
53-26 title<, with any provision of the State Lottery Act,> or with a
53-27 rule of the comptroller adopted under this title <or the State
54-1 Lottery Act>, the comptroller, after a hearing, may revoke or
54-2 suspend any permit or license issued to the person.
54-3 SECTION 33. Section 111.0048(a), Tax Code, is amended to
54-4 read as follows:
54-5 (a) A new permit or license may not be issued to a former
54-6 holder of a revoked permit or license unless the comptroller is
54-7 satisfied that the person will comply with the provisions of this
54-8 title <and the State Lottery Act> and the rules of the comptroller
54-9 relating to this title <and the State Lottery Act>.
54-10 SECTION 34. Section 2(5)(A), Chapter 421, Acts of the 63rd
54-11 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
54-12 Civil Statutes), is amended to read as follows:
54-13 (A) "Appointed officer of a major state agency"
54-14 means any of the following:
54-15 (i) a member of the Public Utility
54-16 Commission of Texas;
54-17 (ii) a member of the Texas Department of
54-18 Commerce;
54-19 (iii) a member of the Texas Board of
54-20 Aviation;
54-21 (iv) a member of the Texas Air Control
54-22 Board;
54-23 (v) a member of the Texas Alcoholic
54-24 Beverage Commission;
54-25 (vi) a member of the Finance Commission of
54-26 Texas;
54-27 (vii) a member of the <State Purchasing
55-1 and> General Services Commission;
55-2 (viii) a member of the Texas Board of
55-3 Criminal Justice;
55-4 (ix) a member of the Board of Trustees of
55-5 the Employees Retirement System of Texas;
55-6 (x) a member of the State Highway and
55-7 Public Transportation Commission;
55-8 (xi) a member of the Texas Workers'
55-9 Compensation Commission;
55-10 (xii) a member of the State Board of
55-11 Insurance;
55-12 (xiii) a member of the Parks and Wildlife
55-13 Commission;
55-14 (xiv) a member of the Public Safety
55-15 Commission;
55-16 (xv) the Secretary of State;
55-17 (xvi) a member of the State Securities
55-18 Board;
55-19 (xvii) a member of the Texas Amusement
55-20 Machine Commission;
55-21 (xviii) a member of the Texas Water
55-22 Development Board;
55-23 (xix) a member of the Texas Water
55-24 Commission;
55-25 (xx) a member of the governing board of a
55-26 state senior college or university as defined by Section 61.003,
55-27 Education Code, including The University of Texas at Arlington; The
56-1 University of Texas at Austin; The University of Texas at Dallas;
56-2 The University of Texas at El Paso; The University of Texas--Pan
56-3 American; The University of Texas--Pan American--Brownsville; The
56-4 University of Texas of the Permian Basin; The University of Texas
56-5 at San Antonio; The University of Texas at Tyler; The University of
56-6 Texas Southwestern Medical Center at Dallas; The University of
56-7 Texas Medical Branch at Galveston; The University of Texas Health
56-8 Science Center at Houston; The University of Texas Health Science
56-9 Center at San Antonio; The University of Texas System Cancer
56-10 Center; The University of Texas Health Science Center at Tyler;
56-11 Texas A&M University; Texas A&M University at Galveston; Prairie
56-12 View A&M University; Tarleton State University; Corpus Christi
56-13 State University; Texas A&I University; Laredo State University;
56-14 East Texas State University; East Texas State University at
56-15 Texarkana; University of Houston; University of Houston--Clear
56-16 Lake; University of Houston--Downtown; University of
56-17 Houston--Victoria; Lamar University at Beaumont; Lamar University
56-18 at Orange; Lamar University at Port Arthur; Midwestern State
56-19 University; University of North Texas; Texas College of Osteopathic
56-20 Medicine; Stephen F. Austin State University; Texas Southern
56-21 University; Texas Tech University; Texas Tech University Health
56-22 Sciences Center; Texas Woman's University; West Texas State
56-23 University; Angelo State University; Sam Houston State University;
56-24 Southwest Texas State University; Sul Ross State University; Sul
56-25 Ross State University--Uvalde Center; Texas State Technical
56-26 Institute--Amarillo; Texas State Technical Institute--Harlingen;
56-27 Texas State Technical Institute--Sweetwater; and Texas State
57-1 Technical Institute--Waco;
57-2 (xxi) a member of the Texas Higher
57-3 Education Coordinating Board;
57-4 (xxii) a member of the Texas Employment
57-5 Commission;
57-6 (xxiii) a member of the State Banking
57-7 Board;
57-8 (xxiv) a member of the board of trustees
57-9 of the Teachers Retirement System of Texas;
57-10 (xxv) a member of the Credit Union
57-11 Commission;
57-12 (xxvi) a member of the School Land Board;
57-13 (xxvii) a member of the board of the Texas
57-14 Department of Housing and Community Affairs;
57-15 (xxviii) a member of the Texas Racing
57-16 Commission;
57-17 (xxix) a member of the State Board of
57-18 Dental Examiners;
57-19 (xxx) a member of the Texas Board of
57-20 Licensure for Nursing Home Administrators;
57-21 (xxxi) a member of the Texas State Board
57-22 of Medical Examiners;
57-23 (xxxii) a member of the Board of Pardons
57-24 and Paroles;
57-25 (xxxiii) a member of the Texas State Board
57-26 of Pharmacy;
57-27 (xxxiv) the Banking Commissioner of the
58-1 Banking Department of Texas;
58-2 (xxxv) a member of the Department of
58-3 Information Resources Governing Board;
58-4 (xxxvi) the fire fighters' pension
58-5 commissioner;
58-6 (xxxvii) a member of the Texas Motor
58-7 Vehicle Commission;
58-8 (xxxviii) the director of the Office of
58-9 Court Administration of the Texas Judicial System;
58-10 (xxxix) the chief executive of the Office
58-11 of Public Utility Counsel;
58-12 (xl) a member of the Texas Real Estate
58-13 Commission;
58-14 (xli) a member of the board of directors
58-15 and the executive director of the State Bar of Texas;
58-16 (xlii) a member of the Bond Review Board;
58-17 (xliii) a member of the Texas Board of
58-18 Health;
58-19 (xliv) a member of the Texas Board of
58-20 Mental Health and Mental Retardation;
58-21 (xlv) a member of the Texas Board on
58-22 Aging;
58-23 (xlvi) a member of the Texas Board of
58-24 Human Services;
58-25 (xlvii) a member of the Texas Funeral
58-26 Service Commission;
58-27 (xlviii) a member of the board of
59-1 directors of a river authority created under the constitution or
59-2 laws of this state;
59-3 (xlix) the director of the lottery
59-4 division of the Texas Lottery Commission <in the office of the
59-5 comptroller>; <or>
59-6 (l) the deputy in charge of the department
59-7 of security in the lottery division of the Texas Lottery
59-8 Commission;
59-9 (li) the director of the bingo division of
59-10 the Texas Lottery Commission;
59-11 (lii) the executive director of the Texas
59-12 Lottery Commission; or
59-13 (liii) a member of the Texas Lottery
59-14 Commission <in the office of the comptroller>.
59-15 SECTION 35. Section 3, Charitable Raffle Enabling Act
59-16 (Article 179f, Revised Statutes, as added by Chapter 957, Acts of
59-17 the 71st Legislature, Regular Session, 1989), is amended by
59-18 amending Subsection (g) and adding Subsection (k) to read as
59-19 follows:
59-20 (g) A prize offered or awarded at the raffle may not be
59-21 money. Except as provided by Subsection (k) of this section, the
59-22 <The> value of a prize that is offered or awarded at the raffle and
59-23 that is purchased by the organization or for which the organization
59-24 provides any consideration may not exceed $25,000.
59-25 (k) A prize may consist of one or more tickets in the state
59-26 lottery authorized by the State Lottery Act (Article 179g, Vernon's
59-27 Texas Civil Statutes), and its subsequent amendments, with a face
60-1 value of $25,000 or less, without regard to whether a prize in the
60-2 lottery game to which the ticket or tickets relate exceeds $25,000.
60-3 SECTION 36. Sections 2.01(a)-(i), 2.04(j), and 4.06(g),
60-4 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
60-5 are repealed.
60-6 SECTION 37. (a) Except as provided by Subsections (b) and
60-7 (d) of this section, this Act takes effect September 1, 1993.
60-8 (b) Except as provided by Subsection (d) of this section,
60-9 Section 36 of this Act takes effect August 31, 1993.
60-10 (c) The Texas Lottery Commission is created on September 1,
60-11 1993. In making the initial appointments to the commission, the
60-12 governor shall designate one member for a term expiring in 1995,
60-13 one member for a term expiring in 1997, and one member for a term
60-14 expiring in 1999. The initial appointments to the commission shall
60-15 be made not later than September 15, 1993.
60-16 (d) This Act takes effect only if S.B. No. 768, 73rd
60-17 Legislature, Regular Session, 1993, or H.B. No. 2771, 73rd
60-18 Legislature, Regular Session, 1993, is enacted and becomes law. If
60-19 neither S.B. No. 768, 73rd Legislature, Regular Session, 1993, nor
60-20 H.B. No. 2771, 73rd Legislature, Regular Session, 1993, is enacted
60-21 and becomes law, this Act has no effect.
60-22 SECTION 38. (a) As soon as practicable after the commission
60-23 appoints an executive director or acting executive director, but
60-24 not later than April 1, 1994:
60-25 (1) all powers, duties, rights, and obligations of the
60-26 comptroller relating to the administration, operation, and
60-27 regulation of the state lottery are transferred to the Texas
61-1 Lottery Commission;
61-2 (2) except as provided by Subsection (b) of this
61-3 section, all assets, liabilities, personnel, equipment, data,
61-4 documents, facilities, and other items of the comptroller relating
61-5 to the administration, operation, and regulation of the state
61-6 lottery are transferred to the Texas Lottery Commission; and
61-7 (3) any appropriation to the comptroller relating to
61-8 the administration, operation, and regulation of the state lottery
61-9 is transferred to the Texas Lottery Commission.
61-10 (b) The comptroller may decide whether to transfer to the
61-11 Texas Lottery Commission:
61-12 (1) personnel who perform both duties that relate to
61-13 lottery operations and duties that do not relate to lottery
61-14 operations; and
61-15 (2) assets used both in lottery operations and
61-16 operations other than lottery operations.
61-17 (c) The officers and employees of the office of the
61-18 comptroller shall cooperate fully with the reorganization.
61-19 (d) A transfer of functions under Subsection (a) of this
61-20 section shall occur on the date specified in an interagency
61-21 contract between the Texas Lottery Commission and the comptroller.
61-22 (e) Notwithstanding the changes made by this Act to the
61-23 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
61-24 the comptroller retains all powers and duties relating to the
61-25 operation of the state lottery until the effective date of the
61-26 transfer under Subsection (a) of this section, and a reference in
61-27 the State Lottery Act (Article 179g, Vernon's Texas Civil Statutes)
62-1 to the Texas Lottery Commission is considered to be a reference to
62-2 the comptroller until that date, but the comptroller shall not be
62-3 considered a member of the commission, and a reference to the
62-4 director of the lottery division of the Texas Lottery Commission is
62-5 considered to be a reference to the director of the lottery
62-6 division of the comptroller's office until that date, and to the
62-7 extent necessary for the continued administration of the state
62-8 lottery, a reference in the State Lottery Act (Article 179g,
62-9 Vernon's Texas Civil Statutes) to the executive director of the
62-10 Texas Lottery Commission is considered to be reference to the
62-11 director of the lottery division of the comptroller's office until
62-12 that date.
62-13 (f) The Texas Lottery Commission, the executive director or
62-14 acting executive director, or other employees of the commission may
62-15 utilize the Austin office of the Texas Lottery prior to the
62-16 transfer of functions under Subsection (a) of this section and
62-17 lawful expenses incurred by the commission prior to the transfer of
62-18 functions under Subsection (a) of this section shall be payable
62-19 from appropriations subject to transfer under that subsection.
62-20 SECTION 39. (a) A change in law made by this Act does not
62-21 affect:
62-22 (1) the validity of any action taken by the
62-23 comptroller or the lottery division in the office of the
62-24 comptroller under the State Lottery Act (Article 179g, Vernon's
62-25 Texas Civil Statutes) before the effective date of the change in
62-26 law; or
62-27 (2) a civil, criminal, or administrative proceeding
63-1 completed before the effective date of this Act.
63-2 (b) A change in law made by this Act does not affect the
63-3 validity of a civil, criminal, or administrative proceeding,
63-4 including licensing or rulemaking, in progress on the effective
63-5 date of the change in law. A civil, criminal, or administrative
63-6 proceeding under the State Lottery Act (Article 179g, Vernon's
63-7 Texas Civil Statutes) that is in progress on the effective date of
63-8 a transfer of functions under Section 38 of this Act continues as
63-9 if it had been initiated by the Texas Lottery Commission under the
63-10 law in effect on the effective date of the transfer.
63-11 (c) All forms, rules, and procedures adopted by the
63-12 comptroller for the administration and enforcement of the State
63-13 Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and in
63-14 effect on the effective date of a transfer of functions under
63-15 Section 38 of this Act remain in effect on or after that date as if
63-16 adopted by the Texas Lottery Commission until amended, repealed,
63-17 withdrawn, or otherwise superseded by the Texas Lottery Commission.
63-18 A license issued under the State Lottery Act (Article 179g,
63-19 Vernon's Texas Civil Statutes) and in effect on the effective date
63-20 of a transfer of functions under Section 38 of this Act remains in
63-21 effect according to its terms as if issued by the Texas Lottery
63-22 Commission until the license expires or is revoked or surrendered.
63-23 (d) A change in law made by this Act applies only to an
63-24 offense committed on or after September 1, 1993. For the purposes
63-25 of this subsection, an offense is committed before September 1,
63-26 1993, if any element of the offense occurs before that date.
63-27 (e) An offense committed before September 1, 1993, is
64-1 covered by the law in effect when the offense was committed, and
64-2 the former law is continued in effect for this purpose.
64-3 SECTION 40. The importance of this legislation and the
64-4 crowded condition of the calendars in both houses create an
64-5 emergency and an imperative public necessity that the
64-6 constitutional rule requiring bills to be read on three several
64-7 days in each house be suspended, and this rule is hereby suspended.