By: Wilson H.B. No. 1587
73R6024 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the state lottery; creating the State
1-3 Lottery Commission.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 1.02(1) and (2), State Lottery Act
1-6 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
1-7 as follows:
1-8 (1) "Commission" means the State Lottery Commission
1-9 <"Director" means the director of the division>.
1-10 (2) "Executive director" means the executive director
1-11 of the commission <"Division" means the lottery division
1-12 established in the office of the comptroller under this Act>.
1-13 SECTION 2. Sections 1.03 and 2.01, State Lottery Act
1-14 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
1-15 as follows:
1-16 Sec. 1.03. Application of Sunset Act. (a) The commission
1-17 <lottery division> is subject to Chapter 325, Government Code
1-18 (Texas Sunset Act). Unless continued in existence as provided by
1-19 that chapter, the commission <division> is abolished and this Act
1-20 expires September 1, 2003.
1-21 (b) A contract between the commission <division> and a
1-22 lottery operator under Section 2.02(g) of this Act must terminate
1-23 on or before September 1, 2004.
1-24 Sec. 2.01. EXECUTIVE DIRECTOR <Lottery Division>. (a) <A
2-1 division to administer a state lottery is created in the office of
2-2 the comptroller. The division is administered by the director.>
2-3 <(b)> The governor <comptroller> shall appoint a person to
2-4 serve as executive director with the advice and consent of the
2-5 senate <and chief executive officer of the division subject to the
2-6 comptroller's direction>. The executive director holds office for
2-7 a term concurrent with that <at the will> of the governor
2-8 <comptroller> and is specifically exempted from the Position
2-9 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
2-10 Statutes). The executive director is entitled to receive an annual
2-11 salary in an amount set by the commission <comptroller>. The
2-12 executive director also is entitled to reimbursement for expenses
2-13 actually and necessarily incurred in the performance of the
2-14 executive director's duties.
2-15 (b) <(c)> The executive director may create, abolish,
2-16 transfer, and consolidate bureaus and other units in the commission
2-17 <division> that are not expressly established by law as the
2-18 executive director determines to be necessary for the efficient
2-19 operation of the commission <division>.
2-20 (c) <(d)> Except as otherwise provided by law, the executive
2-21 director may appoint <deputies, assistants, other officers and>
2-22 employees, committees, and consultants and may prescribe their
2-23 powers and their expenses. Commission <Division> employees serve
2-24 at the will of the executive director. The executive director may
2-25 not employ any person who would be denied a license as a sales
2-26 agent under Section 3.02 of this Act. The executive director may
2-27 not employ or continue to employ any person who owns a financial
3-1 interest in a lottery sales agency or a lottery operator. The
3-2 executive director may not employ more than 100 full-time
3-3 employees.
3-4 (d) <(e)> The executive director may employ or contract with
3-5 marketing representatives to promote the sale of tickets, to
3-6 encourage persons to apply to become sales agents, or to
3-7 investigate the qualifications of sales agent applicants. The
3-8 marketing representatives are exempted from the Position
3-9 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
3-10 Statutes) and may be compensated based on a sales incentive system
3-11 to be established by the executive director.
3-12 (e) <(f)> The legislature intends that the commission
3-13 <division> be a self-supporting, revenue-raising agency of state
3-14 government. Except as provided by <Subsection (g) of this section
3-15 or by> Section 13, Chapter 6 <of H.B. No. 54>, Acts of the 72nd
3-16 Legislature, 1st Called Session, 1991, no appropriation, loan, or
3-17 other transfer of state funds may be made to the commission
3-18 <division>.
3-19 <(g) The comptroller may transfer to the division amounts
3-20 appropriated to the comptroller for purposes other than the
3-21 administration of this Act. If the comptroller proposes to
3-22 transfer amounts under this subsection, the comptroller shall
3-23 notify the Legislative Budget Board in writing of the amount of the
3-24 proposed transfer. The comptroller may not make the proposed
3-25 transfer unless the board approves it. If the board does not
3-26 approve or disapprove the proposed transfer before the 10th day
3-27 after the date that the comptroller notifies the board of the
4-1 proposed transfer, the board is considered to have approved the
4-2 transfer. If the board disapproves the proposed transfer, the
4-3 comptroller may request the governor to make a proposal for the
4-4 transfer of an appropriation as provided by Chapter 317, Government
4-5 Code.>
4-6 <(h) The comptroller shall reimburse any amount of an
4-7 appropriation transferred under Subsection (g) of this section to
4-8 the account or fund from which it was transferred. The
4-9 reimbursement must:>
4-10 <(1) be made from funds received by the comptroller
4-11 for license fees and ticket sales under this Act; and>
4-12 <(2) be made not later than the first anniversary of
4-13 the date of the transfer.>
4-14 <(i) The comptroller's authority to transfer funds to the
4-15 division under Subsection (g) of this section expires September 1,
4-16 1993. This subsection and Subsections (g) and (h) of this section
4-17 expire January 1, 1995.>
4-18 (f) <(j)> Commission <Division> employees are specifically
4-19 exempted from the Position Classification Act of 1961 (Article
4-20 6252-11, Vernon's Texas Civil Statutes). The salary of these
4-21 employees shall be set by the executive director.
4-22 (g) <(l)> The legislature intends that advertisements or
4-23 promotions sponsored by the commission <comptroller's office or the
4-24 division> for the lottery not be of a nature that unduly influences
4-25 any person to purchase a lottery ticket or number.
4-26 SECTION 3. Section 2.02, State Lottery Act (Article 179g,
4-27 Vernon's Texas Civil Statutes), is amended to read as follows:
5-1 Sec. 2.02. POWERS AND DUTIES OF EXECUTIVE <COMPTROLLER,>
5-2 DIRECTOR<,> AND COMMISSION <DIVISION>. (a) The commission
5-3 <comptroller> and executive director have broad authority and shall
5-4 exercise strict control and close supervision over all lottery
5-5 games conducted in this state to promote and ensure integrity,
5-6 security, honesty, and fairness in the operation and administration
5-7 of the lottery.
5-8 (b) The executive director <comptroller> shall adopt all
5-9 rules necessary to administer this Act. <The director may propose
5-10 rules to be adopted by the comptroller, but the director's proposed
5-11 rules have no effect until adopted by the comptroller.>
5-12 (c) The executive director <comptroller> shall adopt rules
5-13 to the extent they are not inconsistent with the Open Meetings Act
5-14 (Article 6252-17, Vernon's Texas Civil Statutes) and the Open
5-15 Records Act (Article 6252-17a, Vernon's Texas Civil Statutes)
5-16 governing the:
5-17 (1) security for the lottery and the commission
5-18 <division>, including the development of an internal security plan;
5-19 (2) apportionment of the total revenues from the sale
5-20 of tickets and from all other sources in the amounts provided by
5-21 this Act;
5-22 (3) enforcement of prohibitions on the sale of tickets
5-23 to or by an individual younger than 18 years of age; and
5-24 (4) enforcement of prohibitions on a person playing a
5-25 lottery game or activity by telephone.
5-26 (d) The executive director <comptroller> may adopt rules
5-27 governing the establishment and operation of the lottery, including
6-1 rules governing:
6-2 (1) the type of lottery games or activities to be
6-3 conducted;
6-4 (2) the price of each ticket;
6-5 (3) the number of winning tickets and amount of the
6-6 prize paid on each winning ticket;
6-7 (4) the frequency of the drawing or selection of a
6-8 winning ticket;
6-9 (5) the number and types of locations at which a
6-10 ticket may be sold;
6-11 (6) the method to be used in selling a ticket;
6-12 (7) the use of vending machines or electronic or
6-13 mechanical devices of any kind, other than machines or devices that
6-14 dispense currency or coins as prizes;
6-15 (8) the manner of paying a prize to the holder of a
6-16 winning ticket;
6-17 (9) the investigation of possible violations of this
6-18 Act or any rule adopted under this Act;
6-19 (10) the means of advertising to be used for the
6-20 lottery;
6-21 (11) the qualifications of vendors of lottery services
6-22 or equipment;
6-23 (12) the confidentiality of information relating to
6-24 the operation of the lottery, including:
6-25 (A) trade secrets;
6-26 (B) security measures, systems, or procedures;
6-27 (C) security reports;
7-1 (D) bids or other information regarding the
7-2 commission's <division's> contracts, if disclosure of the
7-3 information would impair the commission's <division's> ability to
7-4 contract for facilities, goods, or services on terms favorable to
7-5 the commission <division>;
7-6 (E) personnel information unrelated to
7-7 compensation, duties, qualifications, or responsibilities; and
7-8 (F) information obtained by commission
7-9 <division> security officers or investigators;
7-10 (13) the development and availability of a model
7-11 agreement governing the division of a prize among multiple
7-12 purchasers of a winning ticket purchased through a group purchase
7-13 or pooling arrangement;
7-14 (14) the criteria to be used in evaluating bids for
7-15 contracts for lottery facilities, goods, and services; or
7-16 (15) any other matter necessary or desirable as
7-17 determined by the executive director <comptroller>, to promote and
7-18 ensure:
7-19 (A) the integrity, security, honesty, and
7-20 fairness of the operation and administration of the lottery; and
7-21 (B) the convenience of players and holders of
7-22 winning tickets.
7-23 (e) If the executive director authorizes a person who is not
7-24 an employee of the commission <division> to sell tickets, the
7-25 person must be licensed as a sales agent by the commission
7-26 <division>. The executive director may establish classes of
7-27 licenses necessary to regulate and administer the quantity and type
8-1 of lottery games or activities provided at each licensed location.
8-2 Each sales agent shall post a cash bond, surety bond, letter of
8-3 credit, certificate of deposit, or other security approved by the
8-4 executive director, including the contribution of cash to a pooled
8-5 bond fund established by the executive director to protect the
8-6 state from possible losses. The amount of the security shall be
8-7 determined by the executive director and shall reflect the possible
8-8 losses to the state from the operation of the sales agent. The
8-9 executive director may also require a sales agent to maintain
8-10 insurance if necessary to protect the interests of the state. As
8-11 prescribed by rule <division rules>, each sales agent shall
8-12 prominently display the license in each place of business or
8-13 activity at which the sales agent sells tickets.
8-14 (f) The commission <comptroller> shall make an annual report
8-15 to the governor and the legislature that provides a summary of
8-16 lottery revenues, prize disbursements, and other expenses for the
8-17 fiscal year preceding the report. The report must be in the form
8-18 and reported in the time provided by the General Appropriations
8-19 Act.
8-20 (g) The executive director may contract with or employ a
8-21 person to perform a function, activity, or service in connection
8-22 with the operation of the lottery as prescribed by the executive
8-23 director. A person with whom the executive director contracts to
8-24 operate a lottery must be eligible for a sales agent license under
8-25 Section 3.02 of this Act.
8-26 (h) <A contract for independent consulting, management
8-27 services, or activities related to the establishment or
9-1 implementation of lottery operations is not subject to:>
9-2 <(1) the State Purchasing and General Services Act
9-3 (Article 601b, Vernon's Texas Civil Statutes);>
9-4 <(2) the Professional Services Procurement Act
9-5 (Article 664-4, Vernon's Texas Civil Statutes);>
9-6 <(3) Chapter 454, Acts of the 65th Legislature,
9-7 Regular Session, 1977 (Article 6252-11c, Vernon's Texas Civil
9-8 Statutes); or>
9-9 <(4) the Information Resources Management Act (Article
9-10 4413(32j), Revised Statutes).>
9-11 <(i) This subsection and Subsection (h) of this section
9-12 expire September 1, 1993.>
9-13 <(j)> Each lottery operator's and sales agent's records are
9-14 subject to audit by the commission <division, the comptroller,> and
9-15 the state auditor. For the purpose of carrying out this Act, the
9-16 executive director<, comptroller,> or state auditor may examine all
9-17 books, records, papers, or other objects that the executive
9-18 director<, comptroller,> or state auditor determines are necessary
9-19 for conducting a complete examination under this Act and may also
9-20 examine under oath any officer, director, or employee of a lottery
9-21 operator or sales agent. The executive director<, comptroller,> or
9-22 state auditor may conduct an examination at the principal office or
9-23 any other office of the lottery operator or sales agent or may
9-24 require the lottery operator or sales agent to produce the records
9-25 at the office of the commission <division, comptroller,> or state
9-26 auditor. If a sales agent refuses to permit an examination or to
9-27 answer any question authorized by this subsection, the executive
10-1 director <comptroller> may summarily suspend the license of the
10-2 sales agent under Section 3.03 of this Act until the examination is
10-3 completed as required. Section 321.013(h), Government Code, does
10-4 not apply to an audit of a lottery operator or sales agent.
10-5 (i) <(k)> The executive director <comptroller> shall adopt
10-6 rules prohibiting the operation of any game using a video lottery
10-7 machine or machine. As used in this subsection "video lottery
10-8 machine" or "machine" means any electronic video game machine that,
10-9 upon insertion of cash, is available to play or simulate the play
10-10 of a video game, including but not limited to video poker, keno,
10-11 and blackjack, utilizing a video display and microprocessors in
10-12 which the player may receive free games or credits that can be
10-13 redeemed for cash, coins or tokens, or that directly dispenses
10-14 cash, coins, or tokens.
10-15 SECTION 4. Section 2.03(a), State Lottery Act (Article 179g,
10-16 Vernon's Texas Civil Statutes), is amended to read as follows:
10-17 (a) The executive director or a lottery operator may not
10-18 establish or operate a lottery game or activity in which the winner
10-19 is chosen on the basis of the outcome of a sports event.
10-20 SECTION 5. Sections 2.04(a)-(f), (h), and (k), State Lottery
10-21 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
10-22 read as follows:
10-23 (a) The executive director may establish procedures for the
10-24 purchase or lease of facilities, goods, and services and make any
10-25 purchases, leases, or contracts that are necessary for carrying out
10-26 the purposes of this Act. The procedures shall, as determined
10-27 feasible and appropriate by the executive director, promote
11-1 competition to the maximum extent possible. In all procurement
11-2 decisions, the executive director shall take into account the
11-3 particularly sensitive nature of the lottery and shall act to
11-4 promote and ensure integrity, security, honesty, and fairness in
11-5 the operation and administration of the lottery and the objective
11-6 of producing revenues for the state treasury.
11-7 (b) The executive director may not award a contract for the
11-8 purchase or lease of facilities, goods, or services related to
11-9 lottery operations to a person who would be denied a license as a
11-10 sales agent under Section 3.02 of this Act.
11-11 (c) The procurement procedures adopted by the executive
11-12 director shall, as determined feasible and appropriate by the
11-13 executive director, afford any party who is aggrieved by the terms
11-14 of a solicitation or the award of a contract an opportunity to
11-15 protest the executive director's action to the executive director
11-16 <comptroller>. The protest procedures shall provide for an
11-17 expedient resolution of the protest in order to avoid substantially
11-18 delaying a solicitation or contract award that is necessary for the
11-19 timely implementation of a lottery game. A protest must be in
11-20 writing and be filed with the executive director <comptroller> not
11-21 later than 72 hours after receipt of notice of the executive
11-22 director's action.
11-23 (d) A party who is aggrieved by the executive director's
11-24 <comptroller's> resolution of a protest under Subsection (c) of
11-25 this section may file an action in the district court of Travis
11-26 County. The court shall give preference to hearings and trials of
11-27 actions under this section. If the party filing the action seeks
12-1 to enjoin the implementation of a solicitation or contract, the
12-2 party shall post a bond that is payable to the state if the party
12-3 does not prevail in the appeal, and is in an amount sufficient to
12-4 compensate the state for the revenue that would be lost due to the
12-5 delay in lottery operations.
12-6 (e) A contract for the acquisition or provision of
12-7 facilities, supplies, equipment, materials, or services related to
12-8 the operation of the lottery shall provide for liquidated damages
12-9 and a performance bond in an amount equal to the executive
12-10 director's best available estimate of the revenue that would be
12-11 lost if the contractor fails to meet deadlines specified in the
12-12 contract.
12-13 (f) On request of the executive director, the <State
12-14 Purchasing and> General Services Commission shall assist the
12-15 executive director in:
12-16 (1) acquiring facilities, supplies, materials,
12-17 equipment, and services under the State Purchasing and General
12-18 Services Act (Article 601b, Vernon's Texas Civil Statutes); or
12-19 (2) establishing procedures for the executive
12-20 director's accelerated acquisition of facilities, supplies,
12-21 materials, equipment, and services for the operation of the
12-22 lottery.
12-23 (h) Notwithstanding the provisions of the Public Utility
12-24 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
12-25 executive director <comptroller> may negotiate rates and execute
12-26 contracts with telecommunications service providers for the
12-27 interexchange services necessary for the operation of the lottery.
13-1 The executive director <comptroller> may acquire transmission
13-2 facilities by lease, purchase, or lease-purchase. The acquisition
13-3 of transmission facilities shall be done on a competitive bid basis
13-4 if possible.
13-5 (k) The executive director <comptroller> shall require any
13-6 person seeking to contract for goods or services relating to the
13-7 implementation and administration of this Act to submit to
13-8 competitive bidding procedures in accordance with rules established
13-9 by the executive director <comptroller>. Such procedures shall be
13-10 for the purpose of insuring fairness and integrity.
13-11 SECTION 6. Section 2.05(a), State Lottery Act (Article 179g,
13-12 Vernon's Texas Civil Statutes), is amended to read as follows:
13-13 (a) In all contracts for lottery equipment, supplies,
13-14 services, and advertising, the commission <division> and each
13-15 lottery operator shall give preference to equipment or supplies
13-16 produced in this state or services or advertising offered by
13-17 bidders from this state, the cost to the state and quality being
13-18 equal.
13-19 SECTION 7. Sections 2.06(a) and (c), State Lottery Act
13-20 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
13-21 as follows:
13-22 (a) The executive director<, the division,> and each lottery
13-23 operator shall take positive steps to:
13-24 (1) inform minority businesses of opportunities to:
13-25 (A) provide lottery equipment and supplies to
13-26 the commission <division>;
13-27 (B) provide services, including advertising, to
14-1 the commission <division> for the operation of the lottery; or
14-2 (C) obtain a license to sell lottery tickets;
14-3 (2) waive or modify bond requirements, if feasible;
14-4 (3) award contracts for lottery equipment or supplies
14-5 to minority businesses when possible;
14-6 (4) award contracts for lottery services, including
14-7 advertising, to minority businesses when possible;
14-8 (5) license minority businesses as sales agents;
14-9 (6) monitor the effectiveness of the efforts to
14-10 increase the ability of minority businesses to do business with the
14-11 commission <division>; and
14-12 (7) require all bidders or contractors, when
14-13 appropriate, to include specific plans or arrangements to utilize
14-14 subcontracts with minority businesses.
14-15 (c) The commission <comptroller> shall annually report to
14-16 the legislature and the governor on the level of minority business
14-17 participation as pertains to both the commission's <division's>
14-18 contracts and the licensure of sales agents. The report shall
14-19 include recommendations for the improvement of minority business
14-20 opportunities in lottery-related business.
14-21 SECTION 8. Sections 2.07-2.11, State Lottery Act (Article
14-22 179g, Vernon's Texas Civil Statutes), are amended to read as
14-23 follows:
14-24 Sec. 2.07. Television Contracts. The executive director may
14-25 adopt rules governing the televised drawing or selection of
14-26 tickets. If the drawing or selection of winning tickets is
14-27 televised under a contract with the commission <division>, the
15-1 contract must be awarded by competitive bid. <The comptroller
15-2 shall adopt rules governing the competitive bidding process.>
15-3 Money received under the contract shall be deposited in the state
15-4 lottery account established under Section 5.02 of this Act.
15-5 Sec. 2.08. Publicity of Individuals Prohibited. A state
15-6 officer <or employee>, including a commission member or <the
15-7 comptroller,> the executive director, or an <officer or> employee
15-8 of the commission <comptroller's office or the division,> may not
15-9 appear in a paid <an> advertisement or promotion for the lottery
15-10 that is sponsored by the commission <comptroller's office or the
15-11 division> or in a televised lottery drawing. A paid <An>
15-12 advertisement <or promotion> for the lottery may not contain the
15-13 likeness or name of a state officer <or employee>, including a
15-14 commission member or <the comptroller,> the executive director, or
15-15 an <officer or> employee of the commission <comptroller's office or
15-16 the division>. In connection with providing security for the
15-17 lottery, this section shall not prohibit a security officer, <or>
15-18 investigator, or other person employed by the commission <division>
15-19 from appearing in a televised lottery drawing or other promotion
15-20 for the lottery that is sponsored by the commission <comptroller's
15-21 office or the division>. Notwithstanding the provisions of this
15-22 section, the executive director may designate an employee of the
15-23 commission <division> to participate in a promotional event, the
15-24 purpose of which is to award a prize.
15-25 Sec. 2.09. Audit. The executive director shall provide for
15-26 a certified public accountant to conduct an independent audit for
15-27 each fiscal year of all accounts and transactions of the lottery.
16-1 The certified public accountant may not have, as determined by the
16-2 executive director, a significant financial interest in a sales
16-3 agent, lottery vendor, or lottery operator. The certified public
16-4 accountant shall present an audit report to the executive director,
16-5 the commission <comptroller>, the governor, and the legislature not
16-6 later than April 1 of the year following the fiscal year for which
16-7 the audit was performed. The report must contain recommendations
16-8 to enhance the earnings capability of the lottery and improve the
16-9 efficiency of lottery operations. The state auditor may review the
16-10 results of and working papers related to the audit.
16-11 Sec. 2.10. Investigations. The attorney general, the
16-12 district attorney for Travis County, or the district attorney,
16-13 criminal district attorney, or county attorney performing the
16-14 duties of district attorney for the county in which the violation
16-15 or alleged violation occurred may investigate a violation or
16-16 alleged violation of this Act and of the penal laws of this state
16-17 by the commission <division> or its employees, a sales agent, a
16-18 lottery vendor, or a lottery operator.
16-19 Sec. 2.11. Enforcement. (a) The executive director
16-20 <comptroller> or designated personnel of the commission <division>
16-21 may investigate violations of this Act and violations of the rules
16-22 adopted under this Act. After conducting investigations, the
16-23 executive director <comptroller>, a person designated by the
16-24 commission <comptroller>, or any law enforcement agency may file a
16-25 complaint with the district attorney of Travis County or with the
16-26 district attorney of the county in which a violation is alleged to
16-27 have occurred.
17-1 (b) The executive director <comptroller> has the
17-2 administrative, enforcement, and collection powers provided by
17-3 Subtitle B, Title 2, Tax Code, in regard to the lottery. For
17-4 purposes of the application of Title 2 of the Tax Code:
17-5 (1)<,> the state's share of proceeds from the sale of
17-6 lottery tickets is treated as if it were a tax; and
17-7 (2) a power granted to the comptroller may be
17-8 exercised by the executive director.
17-9 SECTION 9. Sections 2.12(a)-(f), State Lottery Act (Article
17-10 179g, Vernon's Texas Civil Statutes), are amended to read as
17-11 follows:
17-12 (a) The executive director shall maintain a department of
17-13 security in the commission <division>. The executive director
17-14 shall appoint a deputy to administer the department. The deputy
17-15 must be qualified by training and experience in law enforcement or
17-16 security to supervise, direct, and administer the activities of the
17-17 department.
17-18 (b) The executive director may employ security officers or
17-19 investigators as the executive director considers necessary and may
17-20 commission security officers or investigators as peace officers.
17-21 The deputy and all investigators employed by the department of
17-22 security as peace officers must meet the requirements under Chapter
17-23 415, Government Code, for employment and commission as peace
17-24 officers.
17-25 (c) A security officer or investigator employed by the
17-26 department of security or a peace officer who is working in
17-27 conjunction with the commission <comptroller> or the Department of
18-1 Public Safety in the enforcement of this Act, without a search
18-2 warrant, may search and seize a lottery vending machine, lottery
18-3 computer terminal, or other lottery equipment that is located on
18-4 premises for which a person holds a sales agent license issued
18-5 under this Act.
18-6 (d) The Department of Public Safety, at the executive
18-7 director's <comptroller's> request, shall perform a full criminal
18-8 background investigation of a prospective deputy or investigator of
18-9 the department of security. The commission <comptroller> shall
18-10 reimburse the Department of Public Safety for the actual costs of
18-11 an investigation.
18-12 (e) At least once every two years, the executive director
18-13 shall employ an independent firm that is experienced in security,
18-14 including computer security and systems security, to conduct a
18-15 comprehensive study of all aspects of lottery security, including:
18-16 (1) lottery personnel security;
18-17 (2) sales agent security;
18-18 (3) lottery operator and vendor security;
18-19 (4) security against ticket counterfeiting and
18-20 alteration and other means of fraudulent winning;
18-21 (5) security of lottery drawings;
18-22 (6) lottery computer, data communications, database,
18-23 and systems security;
18-24 (7) lottery premises and warehouse security;
18-25 (8) security of distribution of tickets;
18-26 (9) security of validation and payment procedures;
18-27 (10) security involving unclaimed prizes;
19-1 (11) security aspects of each lottery game;
19-2 (12) security against the deliberate placement of
19-3 winning tickets in lottery games that involve preprinted winning
19-4 tickets by persons involved in the production, storage,
19-5 transportation, or distribution of tickets; and
19-6 (13) other security aspects of lottery operations.
19-7 (f) The executive director shall provide the commission
19-8 <comptroller> with a complete report of the security study
19-9 conducted under Subsection (e) of this section. The commission
19-10 <comptroller> shall provide the governor and the legislature,
19-11 before the convening of each regular legislative session, with a
19-12 summary of the security study that shows the overall evaluation of
19-13 the lottery's security.
19-14 SECTION 10. Sections 2.13 and 2.14, State Lottery Act
19-15 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
19-16 as follows:
19-17 Sec. 2.13. DEMOGRAPHIC STUDIES. (a) The executive director
19-18 shall, every two years, employ an independent firm experienced in
19-19 demographic analysis to conduct a demographic study of lottery
19-20 players. The study shall include the income, age, sex, education,
19-21 and frequency of participation of players.
19-22 (b) The executive director shall report the results of the
19-23 demographic study conducted under Subsection (a) of this section to
19-24 the commission <comptroller>, the governor, and the legislature
19-25 before the convening of each regular legislative session.
19-26 Sec. 2.14. Confidential Information. The following
19-27 information is confidential and is exempt from disclosure under the
20-1 open records law, Chapter 424, Acts of the 63rd Legislature,
20-2 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
20-3 Statutes):
20-4 (1) security plans and procedures of the commission
20-5 <division or the office of the comptroller> designed to ensure the
20-6 integrity and security of the operation of the lottery;
20-7 (2) information of a nature that is designed to ensure
20-8 the integrity and security of the selection of winning tickets or
20-9 numbers in the lottery, other than information describing the
20-10 general procedures for selecting winning tickets or numbers; and
20-11 (3) the street address and telephone number of a prize
20-12 winner, if the prize winner has not consented to the release of the
20-13 information.
20-14 SECTION 11. Section 2.15(b), State Lottery Act (Article
20-15 179g, Vernon's Texas Civil Statutes), is amended to read as
20-16 follows:
20-17 (b) An investigation report or other document submitted by
20-18 the Department of Public Safety to the commission <division>
20-19 becomes part of the investigative files of the commission
20-20 <division> and is subject to discovery by a person that is the
20-21 subject of the investigation report or other document.
20-22 SECTION 12. The State Lottery Act (Article 179g, Vernon's
20-23 Texas Civil Statutes) is amended by adding Section 2.16 to read as
20-24 follows:
20-25 Sec. 2.16. ADMINISTRATIVE HEARINGS. (a) The general
20-26 counsel of the commission shall conduct an initial administrative
20-27 hearing under this Act.
21-1 (b) A person aggrieved by a decision of the general counsel
21-2 may appeal to the executive director in accordance with rules
21-3 adopted by the executive director.
21-4 (c) A person aggrieved by a decision of the executive
21-5 director may appeal to an administrative law judge as provided by
21-6 Chapter 591, Acts of the 72nd Legislature, Regular Session, 1991
21-7 (Article 6252-13f, Vernon's Texas Civil Statutes), and its
21-8 subsequent amendments.
21-9 (d) A person aggrieved by the decision of an administrative
21-10 law judge may appeal to a court of competent jurisdiction as
21-11 provided by the Administrative Procedure and Texas Register Act
21-12 (Article 6252-13a, Vernon's Texas Civil Statutes) and its
21-13 subsequent amendments.
21-14 SECTION 13. The State Lottery Act (Article 179g, Vernon's
21-15 Texas Civil Statutes) is amended by adding Article 2A to read as
21-16 follows:
21-17 ARTICLE 2A. STATE LOTTERY COMMISSION
21-18 Sec. 2A.01. MEMBERSHIP. (a) The State Lottery Commission
21-19 is composed of three members appointed by the governor with the
21-20 advice and consent of the senate.
21-21 (b) In making appointments to the commission, the governor
21-22 shall strive to achieve representation by all the population groups
21-23 of the state with regard to economic status, sex, race, and
21-24 ethnicity.
21-25 Sec. 2A.02. TERM OF OFFICE. Members hold office for
21-26 staggered terms of six years with one member's term expiring
21-27 February 1 of each odd-numbered year.
22-1 Sec. 2A.03. RESIDENCE REQUIREMENT. An individual is not
22-2 eligible to be a member of the commission unless the individual has
22-3 been a resident of this state for at least 10 consecutive years
22-4 immediately before appointment.
22-5 Sec. 2A.04. ELIGIBILITY. (a) An individual is not eligible
22-6 to be an appointed member of the commission if the individual:
22-7 (1) owns or controls, directly or indirectly, more
22-8 than a 10 percent interest in a business entity or other
22-9 organization regulated by the commission or receiving funds from
22-10 the commission;
22-11 (2) is employed by or participates in the management
22-12 of a business entity or other organization regulated by the
22-13 commission or receiving funds from the commission;
22-14 (3) uses or receives a substantial amount of tangible
22-15 goods, services, or funds from the commission, other than
22-16 compensation or reimbursement authorized by law for commission
22-17 membership, attendance, or expenses;
22-18 (4) is an officer, employee, or paid consultant of a
22-19 Texas trade association in the lottery business;
22-20 (5) is required to register as a lobbyist under
22-21 Chapter 305, Government Code, and its subsequent amendments because
22-22 of the person's activities for compensation on behalf of a
22-23 profession related to the operation of the commission;
22-24 (6) is married to an individual described by
22-25 Subdivisions (1)-(5);
22-26 (7) has been convicted of a felony or of any crime
22-27 involving moral turpitude; or
23-1 (8) is not a citizen of the United States.
23-2 (b) In this section, "Texas trade association" means a
23-3 nonprofit, cooperative, and voluntarily joined association of
23-4 business or professional competitors in this state designed to
23-5 assist its members and its industry or profession in dealing with
23-6 mutual business or professional problems and in promoting their
23-7 common interest.
23-8 Sec. 2A.05. PROHIBITED CONDUCT. (a) A commission member
23-9 may not:
23-10 (1) accept any employment or remuneration from a
23-11 person that has a significant financial interest in the lottery;
23-12 (2) play any lottery game conducted in this state;
23-13 (3) accept or be entitled to accept any part of the
23-14 winnings to be paid from a lottery game conducted in this state;
23-15 (4) use the member's official authority to affect the
23-16 result of an election or nomination for public office; or
23-17 (5) directly or indirectly coerce, attempt to coerce,
23-18 command, or advise a person to pay, lend, or contribute anything of
23-19 value to another person for political purposes.
23-20 (b) A commission member or former commission member or the
23-21 spouse of a commission member or former commission member may not
23-22 solicit or accept employment from a person regulated by the
23-23 commission before the second anniversary of the date on which the
23-24 commission member's service on the commission ends.
23-25 (c) In this section, "person that has a significant
23-26 financial interest in the lottery" has the meaning assigned by
23-27 Section 4.06 of this Act.
24-1 Sec. 2A.06. REMOVAL OF COMMISSION MEMBER. (a) The governor
24-2 may remove a commission member if the member:
24-3 (1) does not have at the time of appointment the
24-4 qualifications required for appointment to the commission;
24-5 (2) does not maintain during service on the commission
24-6 the qualifications required for appointment to the commission;
24-7 (3) violates a prohibition established by Section
24-8 2A.05 of this Act;
24-9 (4) cannot discharge the member's duties for a
24-10 substantial part of the term for which the member is appointed
24-11 because of illness or disability; or
24-12 (5) is absent from more than half of the regularly
24-13 scheduled commission meetings that the member is eligible to attend
24-14 during a calendar year unless the absence is excused by majority
24-15 vote of the commission.
24-16 (b) The validity of an action of the commission is not
24-17 affected by the fact that it is taken when a ground for removal of
24-18 a commission member exists.
24-19 (c) If the presiding officer has knowledge that a potential
24-20 ground for removal exists, the presiding officer shall notify the
24-21 governor.
24-22 Sec. 2A.07. COMPENSATION AND EXPENSES. (a) A commission
24-23 member is not entitled to compensation for serving on the
24-24 commission.
24-25 (b) A commission member is entitled to reimbursement for
24-26 actual and necessary expenses incurred in performing the member's
24-27 duties, subject to any applicable limitation in the General
25-1 Appropriations Act.
25-2 Sec. 2A.08. OFFICES. The commission shall maintain its
25-3 general office in the city of Austin. The commission may also
25-4 establish branch offices.
25-5 Sec. 2A.09. PRESIDING OFFICER. The governor shall designate
25-6 one member of the commission as presiding officer of the commission
25-7 to serve in that capacity at the pleasure of the governor.
25-8 Sec. 2A.10. MEETINGS. The commission shall hold at least
25-9 four regular meetings each year on dates fixed by the commission.
25-10 The commission may meet at other times at the call of the presiding
25-11 officer or as provided by commission rule.
25-12 Sec. 2A.11. POWERS AND DUTIES OF COMMISSION. The commission
25-13 shall:
25-14 (1) oversee the executive director's administration of
25-15 this Act;
25-16 (2) approve the operating budget of the commission and
25-17 the commission's request for appropriations; and
25-18 (3) appoint the members of any advisory committees to
25-19 the commission.
25-20 SECTION 14. Sections 3.01(a)-(c), (f), and (g), State
25-21 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
25-22 amended to read as follows:
25-23 (a) The executive director shall attempt to license minority
25-24 businesses as sales agents in at least 20 percent of the licenses
25-25 issued. Implementation of this subsection must be consistent with
25-26 the rest of this section.
25-27 (b) The executive director may license as a sales agent each
26-1 person the executive director believes will best serve the public
26-2 convenience. The executive director may not issue a license to a
26-3 person to engage in business exclusively as a sales agent. A
26-4 license may not be transferred or assigned to any other person or
26-5 location.
26-6 (c) An applicant for a license under this section must apply
26-7 to the commission <division> under rules prescribed by the
26-8 executive director <comptroller>, provide information necessary to
26-9 determine the applicant's eligibility for a license under Section
26-10 3.02 of this Act, and provide other information considered
26-11 necessary by the executive director <comptroller>. The applicant
26-12 must include an application fee with each application. The
26-13 executive director shall set the application fee in an amount that
26-14 is at least sufficient to cover the costs incurred by the
26-15 commission <division> and by the Department of Public Safety to
26-16 process the application. The executive director shall determine
26-17 from information provided by the Department of Public Safety the
26-18 amount required for costs incurred by the department and shall
26-19 allocate those amounts to the department at least monthly. If the
26-20 executive director denies an application for a license based on a
26-21 factor listed in Subsection (f) of this section, the executive
26-22 director shall refund one-half of the application fee to the
26-23 applicant. If the executive director denies an application based
26-24 on another factor, the executive director may not refund any part
26-25 of the application fee. Applications for licenses must be
26-26 available for public inspection during regular office hours.
26-27 (f) The executive director <comptroller> shall adopt rules
27-1 under which, before issuing a license to an applicant, the
27-2 executive director shall consider:
27-3 (1) the financial responsibility and security of the
27-4 applicant and the business or activity in which the applicant is
27-5 engaged;
27-6 (2) the public accessibility of the applicant's place
27-7 of business or activity;
27-8 (3) the sufficiency of existing sales agents to serve
27-9 the public convenience;
27-10 (4) whether individuals under 18 years of age
27-11 constitute a majority of the applicant's customers or as customers
27-12 provide a majority of the applicant's sales volume;
27-13 (5) the volume of expected sales; and
27-14 (6) any other factor that the executive director
27-15 considers appropriate.
27-16 (g) The executive director may issue a license to a person
27-17 only if the executive director finds that the person's experience,
27-18 character, and general fitness are such that the person's
27-19 participation as a sales agent will not detract from the integrity,
27-20 security, honesty, and fairness of the operation of the lottery.
27-21 SECTION 15. Sections 3.02(a)-(d) and (f)-(i), State Lottery
27-22 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
27-23 read as follows:
27-24 (a) After a hearing, the executive director shall deny an
27-25 application for a license or <the comptroller shall> suspend or
27-26 revoke a license if the executive director <or comptroller, as
27-27 applicable,> finds that the applicant or sales agent:
28-1 (1) is an individual who:
28-2 (A) has been convicted of a felony, criminal
28-3 fraud, gambling or a gambling-related offense, or a misdemeanor
28-4 involving moral turpitude, if less than 10 years has elapsed since
28-5 the termination of the sentence, parole, mandatory supervision, or
28-6 probation served for the offense;
28-7 (B) is or has been a professional gambler; or
28-8 (C) is married to or related in the first degree
28-9 of consanguinity or affinity to an individual:
28-10 (i) described in Paragraph (A) or (B) of
28-11 this subdivision; or
28-12 (ii) who is currently delinquent in the
28-13 payment of any state tax;
28-14 (2) is not an individual, and an individual described
28-15 in Subdivision (1) of this subsection:
28-16 (A) is an officer or director of the applicant
28-17 or sales agent;
28-18 (B) holds more than 10 percent of the stock in
28-19 the applicant or sales agent;
28-20 (C) holds an equitable interest greater than 10
28-21 percent in the applicant or sales agent;
28-22 (D) is a creditor of the applicant or sales
28-23 agent who holds more than 10 percent of the applicant's or sales
28-24 agent's outstanding debt;
28-25 (E) is the owner or lessee of a business that
28-26 the applicant or sales agent conducts or through which the
28-27 applicant will conduct a ticket sales agency;
29-1 (F) shares or will share in the profits, other
29-2 than stock dividends, of the applicant or sales agent;
29-3 (G) participates in managing the affairs of the
29-4 applicant or sales agent; or
29-5 (H) is an employee of the applicant or sales
29-6 agent who is or will be involved in:
29-7 (i) selling tickets; or
29-8 (ii) handling money from the sale of
29-9 tickets;
29-10 (3) is currently delinquent in the payment of any
29-11 state tax;
29-12 (4) is a person whose location for the sales agency
29-13 is:
29-14 (A) a racetrack at which wagering is authorized
29-15 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
29-16 Statutes); or
29-17 (B) a location licensed for games of bingo under
29-18 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
29-19 Statutes); or
29-20 <(C) on land that is owned by:>
29-21 <(i) this state; or>
29-22 <(ii) a political subdivision of this
29-23 state, other than land used as a mass transportation facility that
29-24 is used by commercial carriers; or>
29-25 <(D) a location for which a person holds a wine
29-26 and beer retailer's permit, mixed beverage permit, mixed beverage
29-27 late hours permit, private club registration permit, or private
30-1 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
30-2 Alcoholic Beverage Code;>
30-3 (5) has violated this Act or a rule adopted under this
30-4 Act.
30-5 (b) Except as provided by Subsection (c) of this section, an
30-6 applicant or sales agent shall notify the executive director of any
30-7 change in the information in the applicant's or sales agent's most
30-8 recent application for a license or renewal of a license. The
30-9 applicant or sales agent shall notify the executive director of the
30-10 change in the information not later than the 10th day after the
30-11 date of the change.
30-12 (c) A corporate applicant or sales agent is not required to
30-13 notify the executive director under Subsection (b) of this section
30-14 of a transfer of less than 10 percent of the corporate stock unless
30-15 the transfer results in a shareholder who previously held 10
30-16 percent or less of the stock holding more than 10 percent of the
30-17 stock.
30-18 (d) If the executive director proposes to deny an
30-19 application for a license or <the comptroller proposes to> suspend
30-20 or revoke a license under this section, the applicant or sales
30-21 agent is entitled to written notice of the time and place of the
30-22 hearing. A notice may be served on an applicant or sales agent
30-23 personally or sent by certified or registered mail, return receipt
30-24 requested, to the person's mailing address as it appears on the
30-25 commission's <division's> records. A notice must be served or
30-26 mailed not later than the 20th day before the date of the hearing.
30-27 (f) The Administrative Procedure and Texas Register Act
31-1 (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
31-2 hearing under this section. The general counsel of the commission
31-3 shall conduct the hearing as provided by Section 2.16 of this Act.
31-4 (g) The executive director shall give an applicant or sales
31-5 agent written notice of a denial of an application or a suspension
31-6 or revocation of a license.
31-7 (h) The executive director may not issue a license to a
31-8 person who has previously had a license under this Act revoked
31-9 unless the executive director is satisfied the person will comply
31-10 with this Act and the rules adopted under this Act. The executive
31-11 director may prescribe the terms under which a suspended license
31-12 will be reissued.
31-13 (i) The executive director shall not issue a license to sell
31-14 lottery tickets to applicants who fail to certify to the executive
31-15 director the applicant's compliance with the federal Americans With
31-16 Disabilities Act.
31-17 SECTION 16. Section 3.03, State Lottery Act (Article 179g,
31-18 Vernon's Texas Civil Statutes), is amended to read as follows:
31-19 Sec. 3.03. Summary Suspension of License. (a) The
31-20 executive director <comptroller> may suspend a sales agent's
31-21 license summarily without notice or hearing if the executive
31-22 director <comptroller> finds that the action is necessary to
31-23 maintain the integrity, security, honesty, or fairness of the
31-24 operation or administration of the lottery or to prevent financial
31-25 loss to the state and:
31-26 (1) the sales agent fails to deposit money received
31-27 from ticket sales under Section 5.01 of this Act;
32-1 (2) an event occurs that would render the sales agent
32-2 ineligible for a license under Section 3.02 of this Act;
32-3 (3) the sales agent refuses to permit the executive
32-4 director<, the comptroller,> or the state auditor to examine the
32-5 agent's books, records, papers, or other objects under Section
32-6 2.02(h) <2.02(j)> of this Act; or
32-7 (4) the executive director learns the sales agent has
32-8 failed to disclose information that would, if disclosed, render the
32-9 sales agent ineligible for a license under Section 3.02 of this
32-10 Act.
32-11 (b) The executive director <comptroller> may summarily
32-12 suspend a sales agent's license if proceedings for a preliminary
32-13 hearing before the general counsel of the commission as provided by
32-14 Section 2.16 of this Act <the comptroller or the comptroller's
32-15 representative> are initiated simultaneously with the summary
32-16 suspension. The preliminary hearing shall be set for a date not
32-17 later than 10 days after the date of the summary suspension, unless
32-18 the parties agree to a later date.
32-19 (c) At the preliminary hearing, the sales agent must show
32-20 cause why the license should not remain suspended pending a final
32-21 hearing on suspension or revocation. The Administrative Procedure
32-22 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
32-23 Statutes) does not apply <to the comptroller> in the administration
32-24 and enforcement of the summary suspension of a license under this
32-25 section. The rules governing a hearing on any other license
32-26 suspension or revocation under this Act govern a final
32-27 administrative hearing under this subsection.
33-1 (d) To initiate a proceeding to summarily suspend a sales
33-2 agent's license, the executive director <comptroller> must serve
33-3 notice to the sales agent informing the agent of the right to a
33-4 preliminary hearing <before the comptroller or the comptroller's
33-5 representative> and of the time and place of the preliminary
33-6 hearing. The notice must be personally served on the sales agent
33-7 or an officer, employee, or agent of the sales agent or sent by
33-8 certified or registered mail, return receipt requested, to the
33-9 sales agent's mailing address as it appears on the commission's
33-10 <division's> records. The notice must state the alleged violations
33-11 that constitute grounds for summary suspension. The suspension is
33-12 effective at the time the notice is served. If notice is served in
33-13 person, the sales agent shall immediately surrender the license to
33-14 the commission's <comptroller or to the comptroller's>
33-15 representative. If notice is served by mail, the sales agent shall
33-16 immediately return the license to the commission <comptroller>. If
33-17 the sales agent uses an on-line electronic terminal to sell
33-18 tickets, the executive director or a lottery operator on the
33-19 instructions of the executive director may terminate the connection
33-20 of the terminal to the commission's <division's> lottery computer
33-21 at the time the proceeding to summarily suspend the license is
33-22 initiated.
33-23 SECTION 17. Section 3.05(b), State Lottery Act (Article
33-24 179g, Vernon's Texas Civil Statutes), is amended to read as
33-25 follows:
33-26 (b) If a license expires under Subsection (a) of this
33-27 section and the sales agent's successor in interest desires to
34-1 operate the sales agency, the successor shall file an application
34-2 for an extended license not later than the 30th day after the date
34-3 the license expired. The application must state the basis for the
34-4 applicant's claim to be the successor in interest to the sales
34-5 agent and must contain a certification that the applicant would be
34-6 eligible for a license under Section 3.02 of this Act. The
34-7 executive director shall permit a qualified applicant to operate
34-8 under an extended license for not more than one year or until a new
34-9 license is issued to the applicant, whichever occurs first.
34-10 SECTION 18. Section 3.06, State Lottery Act (Article 179g,
34-11 Vernon's Texas Civil Statutes), is amended to read as follows:
34-12 Sec. 3.06. ACCESS TO CRIMINAL HISTORY AND FEDERAL TAX
34-13 INFORMATION. (a) The executive director <comptroller> is entitled
34-14 to conduct an investigation of and is entitled to obtain criminal
34-15 history record information maintained by the Department of Public
34-16 Safety, the Federal Bureau of Investigation Identification
34-17 Division, or another law enforcement agency to assist in the
34-18 investigation of:
34-19 (1) a sales agent or an applicant for a sales agent
34-20 license;
34-21 (2) a person required to be named in a license
34-22 application;
34-23 (3) a lottery operator or prospective lottery
34-24 operator;
34-25 (4) an employee of a lottery operator or prospective
34-26 lottery operator, if the employee is or will be directly involved
34-27 in lottery operations;
35-1 (5) a person who manufactures or distributes lottery
35-2 equipment or supplies, or a representative of a person who
35-3 manufactures or distributes lottery equipment or supplies offered
35-4 to the lottery;
35-5 (6) a person who has submitted a written bid or
35-6 proposal to the commission <division> in connection with the
35-7 procurement of goods or services by the commission <division>, if
35-8 the amount of the bid or proposal exceeds $500;
35-9 (7) an employee or other person who works for or will
35-10 work for a sales agent or an applicant for a sales agent license;
35-11 (8) a person who proposes to enter into or who has a
35-12 contract with the commission <division> to supply goods or services
35-13 to the commission <division>; or
35-14 (9) if a person described in Subdivisions (1) through
35-15 (8) of this subsection is not an individual, an individual who:
35-16 (A) is an officer or director of the person;
35-17 (B) holds more than 10 percent of the stock in
35-18 the person;
35-19 (C) holds an equitable interest greater than 10
35-20 percent in the person;
35-21 (D) is a creditor of the person who holds more
35-22 than 10 percent of the person's outstanding debt;
35-23 (E) is the owner or lessee of a business that
35-24 the person conducts or through which the person will conduct
35-25 lottery-related activities;
35-26 (F) shares or will share in the profits, other
35-27 than stock dividends, of the person;
36-1 (G) participates in managing the affairs of the
36-2 person; or
36-3 (H) is an employee of the person who is or will
36-4 be involved in:
36-5 (i) selling tickets; or
36-6 (ii) handling money from the sale of
36-7 tickets.
36-8 (b) The executive director <comptroller> shall conduct an
36-9 investigation of and obtain criminal history record information
36-10 maintained by the Department of Public Safety, the Federal Bureau
36-11 of Investigation Identification Division, or another law
36-12 enforcement agency to assist in the investigation of<:>
36-13 <(1) the director or a prospective director of the
36-14 division; or>
36-15 <(2)> an employee or prospective employee of the
36-16 commission <division>.
36-17 (c) <Not later than one year after the date of each renewal,
36-18 the comptroller shall obtain criminal history record information
36-19 maintained by the Department of Public Safety on a sales agent
36-20 whose license is renewed under Section 3.01(h) of this Act.>
36-21 <(d)> The executive director may discharge from employment
36-22 an employee of the commission <division> who fails to provide a
36-23 complete legible set of fingerprints on request. The executive
36-24 director may refuse to consider a prospective employee of the
36-25 commission <division> who fails to provide a complete legible set
36-26 of fingerprints on request.
36-27 (d) <(e)> The executive director may deny an application for
37-1 a license or <the comptroller may> suspend or revoke a license if
37-2 the applicant or sales agent fails on request to provide a complete
37-3 legible set of fingerprints of:
37-4 (1) a person required to be named in a license
37-5 application; or
37-6 (2) an employee or other person who works or will work
37-7 for the applicant or sales agent, if the person:
37-8 (A) is or will be involved in the sale of
37-9 tickets; or
37-10 (B) handles or will handle money from the sale
37-11 of tickets.
37-12 (e) <(f)> All criminal history record information received
37-13 by the executive director is privileged information and is for the
37-14 exclusive use of the executive director and employees of the
37-15 commission <division> designated by the executive director. Except
37-16 on court order or as provided by Subsection (h) of this section,
37-17 the information may not be released or otherwise disclosed to any
37-18 other person or agency.
37-19 (f) <(g)> All information received by the executive director
37-20 from the Internal Revenue Service is confidential and may only be
37-21 used as provided by the contract between the comptroller and the
37-22 Internal Revenue Service under which the information was obtained.
37-23 (g) <(h)> The executive director or an employee of the
37-24 commission <division> may not provide any person being investigated
37-25 under this section with a copy of the person's criminal history
37-26 record obtained from the Department of Public Safety, the Federal
37-27 Bureau of Investigation Identification Division, or another law
38-1 enforcement agency. This subsection does not prevent the executive
38-2 director from disclosing to the person the dates and places of
38-3 arrests, offenses, and dispositions contained in the criminal
38-4 history records.
38-5 (h) <(i)> A person commits an offense if the person releases
38-6 or discloses information received by the executive director
38-7 <comptroller> under this section except on court order or as
38-8 provided by Subsection (g) <(h)> of this section. An offense under
38-9 this subsection is a Class A misdemeanor.
38-10 (i) <(j)> The executive director may request the cooperation
38-11 of the Department of Public Safety to perform a background
38-12 investigation of a person listed in Subsection (a) or (b) of this
38-13 section. The executive director shall reimburse the Department of
38-14 Public Safety for the actual cost of an investigation. The
38-15 executive director may require a person who is subject to
38-16 investigation to pay all costs of the investigation and to provide
38-17 any information, including fingerprints, necessary to carry out the
38-18 investigation or facilitate access to state or federal criminal
38-19 history record information. Payments made to the executive
38-20 director under this subsection shall be deposited in the general
38-21 revenue fund and may be used to reimburse the Department of Public
38-22 Safety for the actual costs of an investigation.
38-23 (j) <(k)> Unless otherwise prohibited by law, the Department
38-24 of Public Safety may retain any record or information submitted to
38-25 it under this section. The Department of Public Safety shall
38-26 notify the executive director of any change in information provided
38-27 to the executive director when the Department of Public Safety
39-1 learns of the change.
39-2 (k) <(l)> The executive director shall adopt rules governing
39-3 the custody and use of criminal history record information obtained
39-4 under this section. The comptroller shall adopt necessary rules
39-5 governing the custody and use of information obtained from the
39-6 Internal Revenue Service under this section.
39-7 (l) <(m)> The executive director may obtain information
39-8 relating to a person's qualification for licensing, employment, or
39-9 contracting under this Act from the Internal Revenue Service under
39-10 a contract between the comptroller and the Internal Revenue Service
39-11 on:
39-12 (1) a sales agent or an applicant for a sales agent
39-13 license;
39-14 (2) an employee or prospective employee of the
39-15 commission <division>;
39-16 (3) a person required to be named in a license
39-17 application;
39-18 (4) a lottery operator or prospective lottery
39-19 operator;
39-20 (5) an employee of a lottery operator or prospective
39-21 lottery operator, if the employee is or will be directly involved
39-22 in lottery operations;
39-23 (6) a person who manufactures or distributes lottery
39-24 equipment or supplies, or a representative of a person who
39-25 manufactures or distributes lottery equipment or supplies offered
39-26 to the lottery;
39-27 (7) a person who has submitted a written bid or
40-1 proposal to the commission <division> in connection with the
40-2 procurement of goods or services by the commission <division>;
40-3 (8) an employee or other person who works for or will
40-4 work for a sales agent or an applicant for a sales agent license;
40-5 or
40-6 (9) a person who proposes to enter into or who has a
40-7 contract with the commission <division> to supply goods or services
40-8 to the commission <division>.
40-9 (m) <(n)> The executive director may award a contract for
40-10 lottery supplies or services, including a contract under Section
40-11 2.02(g) of this Act, pending the completion of any investigation
40-12 authorized by this Act. A contract awarded under this subsection
40-13 must include a provision permitting the executive director to
40-14 terminate the contract without penalty if the investigation reveals
40-15 that the person to whom the contract is awarded would not be
40-16 eligible for a sales agent license under Section 3.02 of this Act.
40-17 The executive director's authority to award a contract under this
40-18 subsection expires September 1, 1993. This subsection expires
40-19 January 1, 1995.
40-20 <(o) The comptroller shall obtain criminal history record
40-21 information maintained by the Department of Public Safety on any
40-22 person receiving a temporary license under Section 3.04 of this Act
40-23 not later than one year after the date of issuance of the temporary
40-24 license. This subsection expires September 1, 1993.>
40-25 (n) <(p)> All fingerprints submitted to the Department of
40-26 Public Safety must be on a form prescribed by the Department of
40-27 Public Safety.
41-1 (o) The governor shall conduct an investigation of and
41-2 obtain criminal history record information maintained by the
41-3 Department of Public Safety, the Federal Bureau of Investigation
41-4 Identification Division, or another law enforcement agency to
41-5 assist in the investigation of the executive director or a
41-6 prospective executive director.
41-7 SECTION 19. Section 4.01, State Lottery Act (Article 179g,
41-8 Vernon's Texas Civil Statutes), is amended to read as follows:
41-9 Sec. 4.01. Tickets. (a) The executive director shall
41-10 prescribe the form of tickets. The toll-free "800" telephone
41-11 number established by the Texas Commission on Alcohol and Drug
41-12 Abuse under Section 461.018, Health and Safety Code, must be
41-13 printed on each ticket. The overall estimated odds of winning a
41-14 prize in a given game or activity must be printed on each ticket
41-15 and prominently displayed in association with the sale of lottery
41-16 products. The estimate must be based on reasonable projections and
41-17 past experience.
41-18 (b) By purchasing a ticket in a particular lottery game or
41-19 activity, a player agrees to abide by and be bound by the executive
41-20 director's <division's> rules, including the rules applicable to
41-21 the particular lottery game or activity involved. The player also
41-22 acknowledges that the determination of whether the player is a
41-23 valid winner is subject to the executive director's <division's>
41-24 rules and claims procedures, including those developed for the
41-25 particular lottery game or activity involved, and subject to any
41-26 validation tests established by the executive director <division>
41-27 for the particular lottery game or activity involved. If the
42-1 lottery uses tickets, an abbreviated form of the rules or a
42-2 reference to the rules may appear on the tickets.
42-3 SECTION 20. Sections 4.02(a) and (e), State Lottery Act
42-4 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
42-5 as follows:
42-6 (a) A person commits an offense if the person intentionally
42-7 or knowingly sells a ticket at a price the person knows is greater
42-8 than that fixed by the executive director <division> or by the
42-9 lottery operator authorized to set that price. An offense under
42-10 this subsection is a Class A misdemeanor.
42-11 (e) A person may not sell a ticket or pay a lottery prize to
42-12 another person that the person knows is:
42-13 (1) <a member, officer, or employee of a person that
42-14 has a contract with the division to sell or lease goods or services
42-15 used in the lottery;>
42-16 <(2)> a member, officer, or employee of a lottery
42-17 operator;
42-18 (2) <(3)> an officer or employee of the commission
42-19 <comptroller>; or
42-20 (3) <(4)> a spouse, child, brother, sister, or parent
42-21 residing as a member of the same household in the principal place
42-22 of residence of a person described by Subdivision (1) or<,> (2)<,
42-23 or (3)> of this subsection.
42-24 SECTION 21. Section 4.04(b), State Lottery Act (Article
42-25 179g, Vernon's Texas Civil Statutes), is amended to read as
42-26 follows:
42-27 (b) A person commits an offense if the person knowingly
43-1 refuses to produce for inspection by the executive director<,
43-2 comptroller,> or state auditor a book, record, or document required
43-3 to be maintained or made by this Act or a rule adopted under this
43-4 Act.
43-5 SECTION 22. Sections 4.06(a)-(e), State Lottery Act (Article
43-6 179g, Vernon's Texas Civil Statutes), are amended to read as
43-7 follows:
43-8 (a) A state officer, a commission member <The comptroller,
43-9 the state treasurer>, the executive director, or an employee of the
43-10 commission <division> may not knowingly accept a <gift or>
43-11 political contribution from:
43-12 (1) a person that has a significant financial interest
43-13 in the lottery;
43-14 (2) a person related in the first degree of
43-15 consanguinity or affinity to a person that has a significant
43-16 financial interest in the lottery;
43-17 (3) a person that owns more than a 10 percent interest
43-18 in an entity that has a significant financial interest in the
43-19 lottery;
43-20 (4) a political committee that is directly
43-21 established, administered, or controlled, in whole or in part, by a
43-22 person that has a significant financial interest in the lottery; or
43-23 (5) a person who, within the two years preceding the
43-24 date of the <gift or> contribution, won a lottery prize exceeding
43-25 $600 in amount or value.
43-26 (b) A former commission member <comptroller>, former state
43-27 treasurer, <or> former executive director, or former commission
44-1 employee may not:
44-2 (1) for compensation, represent a person that has made
44-3 or intends to make a bid to operate the lottery before the
44-4 commission <comptroller> before the second anniversary of the date
44-5 that the person's service in office or employment with the
44-6 commission <division> ceases;
44-7 (2) represent any person or receive compensation for
44-8 services rendered on behalf of any person regarding a particular
44-9 matter in which the former officer or employee participated during
44-10 the period of service or employment with the commission <division>,
44-11 either through personal involvement or because the matter was
44-12 within the scope of the officer's or employee's official
44-13 responsibility; or
44-14 (3) for compensation, communicate directly with a
44-15 member of the legislative branch to influence legislation on behalf
44-16 of a person that has a significant financial interest in the
44-17 lottery, before the second anniversary of the date that the
44-18 person's service in office or employment with the commission
44-19 <division> ceases.
44-20 (c) A former commission member <comptroller>, former state
44-21 treasurer, former executive director, or former employee of the
44-22 commission <division> may not, before the second anniversary of the
44-23 date that the person's service in office or employment with the
44-24 commission <division> ceases, knowingly accept a <gift or>
44-25 political contribution from:
44-26 (1) a person that has a significant financial interest
44-27 in the lottery;
45-1 (2) a person related in the first degree of
45-2 consanguinity or affinity to a person that has a significant
45-3 financial interest in the lottery;
45-4 (3) a person that owns more than a 10 percent interest
45-5 in an entity that has a significant financial interest in the
45-6 lottery;
45-7 (4) a political committee that is directly
45-8 established, administered, or controlled, in whole or in part, by a
45-9 person that has a significant financial interest in the lottery; or
45-10 (5) a person who, within the two years preceding the
45-11 date of the <gift or> contribution, won a lottery prize exceeding
45-12 $600 in amount or value.
45-13 (d) A person may not knowingly make a <gift or> political
45-14 contribution to a commission member <the comptroller>, the state
45-15 treasurer, the executive director, or an employee of the commission
45-16 <division> if the person:
45-17 (1) has a significant financial interest in the
45-18 lottery;
45-19 (2) is related in the first degree of consanguinity or
45-20 affinity to a person that has a significant financial interest in
45-21 the lottery;
45-22 (3) owns more than a 10 percent interest in an entity
45-23 that has a significant financial interest in the lottery;
45-24 (4) is a political committee that is directly
45-25 established, administered, or controlled, in whole or in part, by a
45-26 person that has a significant financial interest in the lottery; or
45-27 (5) within the two years preceding the date of the
46-1 <gift or> contribution, won a lottery prize exceeding $600 in
46-2 amount or value.
46-3 (e) A person may not knowingly make a <gift or> political
46-4 contribution to a former commission member <comptroller>, former
46-5 state treasurer, former executive director, or former employee of
46-6 the commission <division> before the second anniversary of the date
46-7 that the person's service in office or employment with the
46-8 commission <division> ceases, if the person:
46-9 (1) has a significant financial interest in the
46-10 lottery;
46-11 (2) is related in the first degree of consanguinity or
46-12 affinity to a person that has a significant financial interest in
46-13 the lottery;
46-14 (3) owns more than a 10 percent interest in an entity
46-15 that has a significant financial interest in the lottery;
46-16 (4) is a political committee that is directly
46-17 established, administered, or controlled, in whole or in part, by a
46-18 person that has a significant financial interest in the lottery; or
46-19 (5) within the two years preceding the date of the
46-20 <gift or> contribution, won a lottery prize exceeding $600 in
46-21 amount or value.
46-22 SECTION 23. Section 5.01, State Lottery Act (Article 179g,
46-23 Vernon's Texas Civil Statutes), is amended to read as follows:
46-24 Sec. 5.01. Delivery of Funds. (a) Except as provided by
46-25 Subsection (e) of this section, all revenue received from the sale
46-26 of tickets and all money credited to the state lottery account from
46-27 any other source shall be deposited in the state treasury through
47-1 approved state depositories on the settlement day or days
47-2 established by the executive director.
47-3 (b) The executive director may require sales agents to
47-4 establish separate electronic funds transfer accounts for the
47-5 purposes of depositing money from ticket sales, making payments to
47-6 the commission <division>, and receiving payments from the
47-7 commission <division>. The executive director <comptroller> by
47-8 rule shall establish the procedures for depositing money from
47-9 ticket sales into electronic funds transfer accounts, as well as
47-10 other procedures regarding the handling of money from ticket sales.
47-11 The executive director may not permit a sales agent to make
47-12 payments to the commission <division> or a lottery operator in
47-13 cash.
47-14 (c) The state treasurer, in consultation with the executive
47-15 director, shall establish procedures for the efficient
47-16 implementation and operation of an electronic funds transfer system
47-17 to meet the needs of the executive director under this Act.
47-18 (d) The executive director may require a sales agent to file
47-19 with the commission <division> reports of receipts and transactions
47-20 relating to the sale of tickets in the form and containing the
47-21 information that the executive director requires. Each sales agent
47-22 shall maintain records adequate to establish the disposition of
47-23 each ticket provided to the sales agent, the amounts of money
47-24 received for the sale of those tickets, and any prizes awarded by
47-25 the sales agent.
47-26 (e) The executive director may provide for a sales agent to
47-27 retain from the money received from the sale of tickets the amount
48-1 of prizes paid by the agent or the agent's commission, if any, and
48-2 may establish how often the agent will make settlement payments to
48-3 the treasury.
48-4 (f) The executive director may provide for a sales agent to
48-5 pay amounts received for the sale of tickets directly to an officer
48-6 or employee of the commission <division> for immediate deposit in
48-7 the state treasury.
48-8 (g) A sales agent is liable to the commission <division> for
48-9 all tickets accepted or generated by the sales agent or any
48-10 employee or agent of the sales agent, and tickets shall be deemed
48-11 to have been purchased by the sales agent unless returned to the
48-12 commission <division> within the time and manner prescribed by the
48-13 executive director <division>. Money received by a sales agent
48-14 from the sales of tickets, less the amount retained for prizes paid
48-15 by the sales agent or for the agent's commission, if any, together
48-16 with any unsold tickets, shall be held in trust for the benefit of
48-17 the state before delivery to a lottery operator or the commission
48-18 <division> or electronic transfer to the state treasury, and the
48-19 sales agent is liable to the commission <division> for the full
48-20 amount of the money or unsold tickets so held. If the sales agent
48-21 is not an individual, each officer, director, or owner of the sales
48-22 agent is personally liable to the commission <division> for the
48-23 full amount of the money or unsold tickets held in trust for the
48-24 benefit of the state.
48-25 SECTION 24. Sections 5.02(a), (b), (f), and (j), State
48-26 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
48-27 amended to read as follows:
49-1 (a) A special account in the general revenue fund to be
49-2 known as the state lottery account is established. The account
49-3 consists of all revenue received from the sale of tickets, license
49-4 and application fees under this Act, and all money credited to the
49-5 account from any other fund or source under law. The comptroller
49-6 shall administer the account as directed by the executive director.
49-7 Interest earned by the state lottery account shall be deposited in
49-8 the unobligated portion of the general revenue fund.
49-9 (b) Money in the state lottery account shall be used only
49-10 for the following purposes and shall be distributed as follows:
49-11 (1) the payment of prizes to the holders of winning
49-12 tickets;
49-13 (2) the payment of costs incurred in the operation and
49-14 administration of the lottery, including any fees received by a
49-15 lottery operator, provided that the costs incurred in a fiscal
49-16 biennium may not exceed an amount equal to 15 percent of the gross
49-17 revenue accruing from the sale of tickets in that biennium;
49-18 (3) the establishment of a pooled bond fund, lottery
49-19 prize reserve fund, unclaimed prize fund, and prize payment
49-20 account;
49-21 (4) the transfer of amounts to the state lottery
49-22 stabilization fund as provided by Subsections (c), (d), and (e) of
49-23 this section; and
49-24 (5) <(4)> the balance, after creation of a reserve
49-25 sufficient to pay the amounts needed or estimated to be needed
49-26 under <provided by> Subdivisions (1) through (3) <and (2)> of this
49-27 subsection, to be transferred to the unobligated portion of the
50-1 general revenue fund, on or before the 15th day of each month.
50-2 (f) The state treasurer periodically shall file reports with
50-3 the executive director providing information regarding the revenue
50-4 credited to the state lottery account, the investments of the money
50-5 in the account, and the distributions made from the account.
50-6 (j) Notwithstanding Subsection (b)(5) <(b)(4)> and
50-7 Subsection (d) of this section, the initial transfer of revenue
50-8 from the state lottery account to the unobligated portion of the
50-9 general revenue fund and the state lottery stabilization fund under
50-10 those subsections shall be made on the 15th day of the month
50-11 following the month in which the earlier of the following occurs:
50-12 (1) the first ticket is sold to a player under this
50-13 Act; or
50-14 (2) the executive director receives liquidated damages
50-15 or a payment under a performance bond under a contract with a
50-16 lottery operator.
50-17 SECTION 25. Section 5.02(h)(4), State Lottery Act (Article
50-18 179g, Vernon's Texas Civil Statutes), is amended to read as
50-19 follows:
50-20 (4) "Net lottery revenue" means the gross lottery
50-21 revenue minus the amounts distributed or obligated for a purpose
50-22 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
50-23 section.
50-24 SECTION 26. Sections 5.03(c)-(f) and (h)-(l), State Lottery
50-25 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
50-26 read as follows:
50-27 (c) An employee of the commission <division> and the
51-1 independent certified public accountant witnessing the drawing
51-2 shall inspect any equipment used in the drawing. The equipment
51-3 must be inspected immediately before and after the drawing. The
51-4 drawing and inspections must be recorded on video and audio tape.
51-5 (d) The executive director may authorize prizes to be paid
51-6 by warrants to be drawn on the state lottery account. If the
51-7 executive director determines that prize money is to be paid in
51-8 installments, the state treasurer shall invest funds from the state
51-9 lottery account as necessary to ensure the payment of the
51-10 installments. The investments may be in securities, annuities, or
51-11 other instruments as determined by the treasurer.
51-12 (e) Payment of a prize in an amount of $600 or more shall be
51-13 made by the executive director.
51-14 (f) The executive director may authorize a sales agent to
51-15 pay a prize in an amount less than $600 after performing procedures
51-16 to validate the winning ticket as required by the executive
51-17 director. A prize paid under this subsection is not required to be
51-18 paid by warrant on the state lottery account.
51-19 (h) A specific prize as set forth by the prize structure of
51-20 a specific lottery game or activity may not be paid more than once.
51-21 If the executive director determines that more than one claimant
51-22 has been awarded a specific unpaid prize in a specific lottery game
51-23 or activity, each claimant is entitled only to an equal share of
51-24 the prize.
51-25 (i) The executive director shall pay the cash equivalent of
51-26 a prize other than prize money if more than one person is entitled
51-27 to share the prize as provided by Subsection (h) of this section.
52-1 (j) The executive director shall deduct the amount of a
52-2 delinquent tax or other money from the winnings of a person who has
52-3 been finally determined to be:
52-4 (1) delinquent in the payment of a tax or other money
52-5 collected by the comptroller, the state treasurer, or the Texas
52-6 Alcoholic Beverage Commission;
52-7 (2) delinquent in making child support payments
52-8 administered or collected by the attorney general; or
52-9 (3) in default on a loan guaranteed under Chapter 57,
52-10 Education Code.
52-11 (k) If a person's winnings exceed a delinquency under
52-12 Subsection (j) of this section, the executive director shall pay
52-13 the balance to the person. The executive director shall transfer
52-14 the amount deducted to the appropriate agency.
52-15 (l) The attorney general, comptroller, state treasurer,
52-16 Texas Alcoholic Beverage Commission, and Texas Guaranteed Student
52-17 Loan Corporation shall each provide the executive director with a
52-18 report of persons who have been finally determined to be delinquent
52-19 in the payment of a tax or other money collected by the agency.
52-20 The executive director <comptroller> shall adopt rules regarding
52-21 the form and frequency of reports under this subsection.
52-22 SECTION 27. Sections 5.04(a)-(c), State Lottery Act (Article
52-23 179g, Vernon's Texas Civil Statutes), are amended to read as
52-24 follows:
52-25 (a) If a minor is entitled to prize money on a winning
52-26 ticket in an amount less than $600, the executive director may make
52-27 payment by delivery to an adult member of the minor's family, or to
53-1 the minor's guardian, of a warrant payable to the order of the
53-2 minor.
53-3 (b) If a minor is entitled to prize money on a winning
53-4 ticket in an amount of $600 or more, the executive director may
53-5 direct payment to the minor by depositing the amount of the prize
53-6 in any bank to the credit of an adult member of the minor's family
53-7 or of the minor's guardian as custodian for the minor.
53-8 (c) The executive director shall pay the cash equivalent of
53-9 a prize other than prize money if the person entitled to claim the
53-10 prize is a minor. Payment of the cash equivalent of a prize other
53-11 than prize money to a minor shall be made as provided by
53-12 Subsections (a) and (b) of this section.
53-13 SECTION 28. Sections 5.05(a), (b), and (d), State Lottery
53-14 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
53-15 read as follows:
53-16 (a) The executive director <division> shall retain an
53-17 unclaimed prize on a winning ticket for payment or delivery to the
53-18 person entitled to the prize for 180 days after the date on which
53-19 the winner was selected. If a claim is not made for prize money on
53-20 or before the 180th day after the date on which the winner was
53-21 selected, the prize money shall be used to provide additional money
53-22 to the state lottery account for the purposes prescribed by Section
53-23 5.02(b)(1) of this Act.
53-24 (b) If a claim is not made for a prize other than prize
53-25 money on or before the 180th day after the date on which the winner
53-26 was selected, the prize shall revert to the commission <division>
53-27 for use in subsequent games.
54-1 (d) For each lottery game, after the last date on which a
54-2 prize may be claimed under Subsection (c) of this section, the
54-3 executive director shall prepare a report that shows the total
54-4 number of tickets sold and the number and amounts of prizes awarded
54-5 in the game. The report must be available for public inspection.
54-6 SECTION 29. Sections 5.06(a) and (b), State Lottery Act
54-7 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
54-8 as follows:
54-9 (a) The executive director and each lottery operator shall
54-10 determine the compensation to be paid to sales agents for the sale
54-11 of tickets as provided by this section. The compensation paid to a
54-12 sales agent may not be an amount less than five percent of the
54-13 retail price of the tickets sold plus, at the discretion of the
54-14 executive director or lottery operator supervising the game or
54-15 activity involved, an incentive bonus based on attainment of sales
54-16 volume, the redemption of winning tickets, or other objectives
54-17 specified by the executive director or lottery operator for each
54-18 type of lottery.
54-19 (b) The executive director <division> or a lottery operator
54-20 may run sales agent incentive games for sales agents using the
54-21 incentive bonus amount or other amounts allocated by the executive
54-22 director as compensation for sales agents.
54-23 SECTION 30. Section 47.06(g), Penal Code, is amended to read
54-24 as follows:
54-25 (g) It is a defense to prosecution for an offense under this
54-26 section <chapter> that the conduct was authorized, directly or
54-27 indirectly, by the State Lottery Act<, the lottery division in the
55-1 office of the comptroller, the comptroller, or the director of the
55-2 lottery division>.
55-3 SECTION 31. Section 47.14, Penal Code, is amended to read as
55-4 follows:
55-5 Sec. 47.14. State Lottery. It is a defense to prosecution
55-6 for an offense under this chapter that the conduct:
55-7 (1) consisted entirely of participation in the state
55-8 lottery authorized by the State Lottery Act; or
55-9 (2) was a necessary incident to the operation of the
55-10 state lottery and was authorized, directly or indirectly, by the
55-11 State Lottery Act<, the lottery division in the office of the
55-12 comptroller>, the Texas Lottery Commission <comptroller>, or the
55-13 executive director of the Texas Lottery Commission <lottery
55-14 division>.
55-15 SECTION 32. Section 111.0047(a), Tax Code, is amended to
55-16 read as follows:
55-17 (a) If a person fails to comply with any provision of this
55-18 title<, with any provision of the State Lottery Act,> or with a
55-19 rule of the comptroller adopted under this title <or the State
55-20 Lottery Act>, the comptroller, after a hearing, may revoke or
55-21 suspend any permit or license issued to the person.
55-22 SECTION 33. Section 111.0048(a), Tax Code, is amended to
55-23 read as follows:
55-24 (a) A new permit or license may not be issued to a former
55-25 holder of a revoked permit or license unless the comptroller is
55-26 satisfied that the person will comply with the provisions of this
55-27 title <and the State Lottery Act> and the rules of the comptroller
56-1 relating to this title <and the State Lottery Act>.
56-2 SECTION 34. Section 2(5)(A), Chapter 421, Acts of the 63rd
56-3 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
56-4 Civil Statutes), is amended to read as follows:
56-5 (A) "Appointed officer of a major state agency"
56-6 means any of the following:
56-7 (i) a member of the Public Utility
56-8 Commission of Texas;
56-9 (ii) a member of the Texas Department of
56-10 Commerce;
56-11 (iii) a member of the Texas Board of
56-12 Aviation;
56-13 (iv) a member of the Texas Air Control
56-14 Board;
56-15 (v) a member of the Texas Alcoholic
56-16 Beverage Commission;
56-17 (vi) a member of the Finance Commission of
56-18 Texas;
56-19 (vii) a member of the <State Purchasing
56-20 and> General Services Commission;
56-21 (viii) a member of the Texas Board of
56-22 Criminal Justice;
56-23 (ix) a member of the Board of Trustees of
56-24 the Employees Retirement System of Texas;
56-25 (x) a member of the State Highway and
56-26 Public Transportation Commission;
56-27 (xi) a member of the Texas Workers'
57-1 Compensation Commission;
57-2 (xii) a member of the State Board of
57-3 Insurance;
57-4 (xiii) a member of the Parks and Wildlife
57-5 Commission;
57-6 (xiv) a member of the Public Safety
57-7 Commission;
57-8 (xv) the Secretary of State;
57-9 (xvi) a member of the State Securities
57-10 Board;
57-11 (xvii) a member of the Texas Amusement
57-12 Machine Commission;
57-13 (xviii) a member of the Texas Water
57-14 Development Board;
57-15 (xix) a member of the Texas Water
57-16 Commission;
57-17 (xx) a member of the governing board of a
57-18 state senior college or university as defined by Section 61.003,
57-19 Education Code, including The University of Texas at Arlington; The
57-20 University of Texas at Austin; The University of Texas at Dallas;
57-21 The University of Texas at El Paso; The University of Texas--Pan
57-22 American; The University of Texas--Pan American--Brownsville; The
57-23 University of Texas of the Permian Basin; The University of Texas
57-24 at San Antonio; The University of Texas at Tyler; The University of
57-25 Texas Southwestern Medical Center at Dallas; The University of
57-26 Texas Medical Branch at Galveston; The University of Texas Health
57-27 Science Center at Houston; The University of Texas Health Science
58-1 Center at San Antonio; The University of Texas System Cancer
58-2 Center; The University of Texas Health Science Center at Tyler;
58-3 Texas A&M University; Texas A&M University at Galveston; Prairie
58-4 View A&M University; Tarleton State University; Corpus Christi
58-5 State University; Texas A&I University; Laredo State University;
58-6 East Texas State University; East Texas State University at
58-7 Texarkana; University of Houston; University of Houston--Clear
58-8 Lake; University of Houston--Downtown; University of
58-9 Houston--Victoria; Lamar University at Beaumont; Lamar University
58-10 at Orange; Lamar University at Port Arthur; Midwestern State
58-11 University; University of North Texas; Texas College of Osteopathic
58-12 Medicine; Stephen F. Austin State University; Texas Southern
58-13 University; Texas Tech University; Texas Tech University Health
58-14 Sciences Center; Texas Woman's University; West Texas State
58-15 University; Angelo State University; Sam Houston State University;
58-16 Southwest Texas State University; Sul Ross State University; Sul
58-17 Ross State University--Uvalde Center; Texas State Technical
58-18 Institute--Amarillo; Texas State Technical Institute--Harlingen;
58-19 Texas State Technical Institute--Sweetwater; and Texas State
58-20 Technical Institute--Waco;
58-21 (xxi) a member of the Texas Higher
58-22 Education Coordinating Board;
58-23 (xxii) a member of the Texas Employment
58-24 Commission;
58-25 (xxiii) a member of the State Banking
58-26 Board;
58-27 (xxiv) a member of the board of trustees
59-1 of the Teachers Retirement System of Texas;
59-2 (xxv) a member of the Credit Union
59-3 Commission;
59-4 (xxvi) a member of the School Land Board;
59-5 (xxvii) a member of the board of the Texas
59-6 Department of Housing and Community Affairs;
59-7 (xxviii) a member of the Texas Racing
59-8 Commission;
59-9 (xxix) a member of the State Board of
59-10 Dental Examiners;
59-11 (xxx) a member of the Texas Board of
59-12 Licensure for Nursing Home Administrators;
59-13 (xxxi) a member of the Texas State Board
59-14 of Medical Examiners;
59-15 (xxxii) a member of the Board of Pardons
59-16 and Paroles;
59-17 (xxxiii) a member of the Texas State Board
59-18 of Pharmacy;
59-19 (xxxiv) the Banking Commissioner of the
59-20 Banking Department of Texas;
59-21 (xxxv) a member of the Department of
59-22 Information Resources Governing Board;
59-23 (xxxvi) the fire fighters' pension
59-24 commissioner;
59-25 (xxxvii) a member of the Texas Motor
59-26 Vehicle Commission;
59-27 (xxxviii) the director of the Office of
60-1 Court Administration of the Texas Judicial System;
60-2 (xxxix) the chief executive of the Office
60-3 of Public Utility Counsel;
60-4 (xl) a member of the Texas Real Estate
60-5 Commission;
60-6 (xli) a member of the board of directors
60-7 and the executive director of the State Bar of Texas;
60-8 (xlii) a member of the Bond Review Board;
60-9 (xliii) a member of the Texas Board of
60-10 Health;
60-11 (xliv) a member of the Texas Board of
60-12 Mental Health and Mental Retardation;
60-13 (xlv) a member of the Texas Board on
60-14 Aging;
60-15 (xlvi) a member of the Texas Board of
60-16 Human Services;
60-17 (xlvii) a member of the Texas Funeral
60-18 Service Commission;
60-19 (xlviii) a member of the board of
60-20 directors of a river authority created under the constitution or
60-21 laws of this state;
60-22 (xlix) the executive director of the Texas
60-23 Lottery Commission <lottery division in the office of the
60-24 comptroller>; or
60-25 (l) a member of the Texas Lottery
60-26 Commission <the deputy in charge of the department of security in
60-27 the lottery division in the office of the comptroller>.
61-1 SECTION 35. Sections 3.01(h) and 4.06(g) and (h)(2), State
61-2 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
61-3 repealed.
61-4 SECTION 36. (a) This Act takes effect September 1, 1993.
61-5 (b) The Texas Lottery Commission is created on September 1,
61-6 1993. In making the initial appointments to the commission, the
61-7 governor shall designate one member for a term expiring in 1995,
61-8 one member for a term expiring in 1997, and one member for a term
61-9 expiring in 1999.
61-10 SECTION 37. (a) As soon as practicable, but not later than
61-11 January 1, 1994:
61-12 (1) all powers, duties, rights, and obligations of the
61-13 comptroller relating to the administration, operation, and
61-14 regulation of the state lottery are transferred to the Texas
61-15 Lottery Commission;
61-16 (2) except as provided by Subsection (b) of this
61-17 section, all assets, liabilities, personnel, equipment, data,
61-18 documents, facilities, and other items of the comptroller relating
61-19 to the administration, operation, and regulation of the state
61-20 lottery are transferred to the Texas Lottery Commission; and
61-21 (3) any appropriation to the comptroller relating to
61-22 the administration, operation, and regulation of the state lottery
61-23 is transferred to the Texas Lottery Commission.
61-24 (b) The comptroller may decide whether to transfer to the
61-25 Texas Lottery Commission:
61-26 (1) personnel who perform both duties that relate to
61-27 lottery operations and duties that do not relate to lottery
62-1 operations; and
62-2 (2) assets used both in lottery operations and
62-3 operations other than lottery operations.
62-4 (c) The officers and employees of the office of the
62-5 comptroller shall cooperate fully with the reorganization.
62-6 (d) A transfer of functions under Subsection (a) of this
62-7 section shall occur on the date specified in an interagency
62-8 contract between the Texas Lottery Commission and the comptroller.
62-9 (e) Notwithstanding the changes made by this Act to the
62-10 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
62-11 the comptroller retains all powers and duties relating to the
62-12 operation of the state lottery until the effective date of the
62-13 transfer under Subsection (a) of this section, and a reference in
62-14 the State Lottery Act (Article 179g, Vernon's Texas Civil Statutes)
62-15 to the Texas Lottery Commission or the executive director of the
62-16 Texas Lottery Commission is considered to be a reference to the
62-17 comptroller until that date.
62-18 SECTION 38. (a) A change in law made by this Act does not
62-19 affect:
62-20 (1) the validity of any action taken by the
62-21 comptroller or the lottery division in the office of the
62-22 comptroller under the State Lottery Act (Article 179g, Vernon's
62-23 Texas Civil Statutes) before the effective date of the change in
62-24 law; or
62-25 (2) a civil, criminal, or administrative proceeding
62-26 completed before the effective date of this Act.
62-27 (b) A change in law made by this Act does not affect the
63-1 validity of a civil, criminal, or administrative proceeding,
63-2 including licensing or rulemaking, in progress on the effective
63-3 date of the change in law. A civil, criminal, or administrative
63-4 proceeding under the State Lottery Act (Article 179g, Vernon's
63-5 Texas Civil Statutes) that is in progress on the effective date of
63-6 a transfer of functions under Section 37 of this Act continues as
63-7 if it had been initiated by the Texas Lottery Commission under the
63-8 law in effect on the effective date of the transfer.
63-9 (c) All forms, rules, and procedures adopted by the
63-10 comptroller for the administration and enforcement of the State
63-11 Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and in
63-12 effect on the effective date of a transfer of functions under
63-13 Section 37 of this Act remain in effect on or after that date as if
63-14 adopted by the Texas Lottery Commission until amended, repealed,
63-15 withdrawn, or otherwise superseded by the Texas Lottery Commission.
63-16 A license issued under the State Lottery Act (Article 179g,
63-17 Vernon's Texas Civil Statutes) and in effect on the effective date
63-18 of a transfer of functions under Section 37 of this Act remains in
63-19 effect according to its terms as if issued by the Texas Lottery
63-20 Commission until the license expires or is revoked or surrendered.
63-21 (d) A change in law made by this Act applies only to an
63-22 offense committed on or after September 1, 1993. For the purposes
63-23 of this subsection, an offense is committed before September 1,
63-24 1993, if any element of the offense occurs before that date.
63-25 (e) An offense committed before September 1, 1993, is
63-26 covered by the law in effect when the offense was committed, and
63-27 the former law is continued in effect for this purpose.
64-1 SECTION 39. The importance of this legislation and the
64-2 crowded condition of the calendars in both houses create an
64-3 emergency and an imperative public necessity that the
64-4 constitutional rule requiring bills to be read on three several
64-5 days in each house be suspended, and this rule is hereby suspended.