1-1 By: Wilson (Senate Sponsor - Harris of Dallas) H.B. No. 1587
1-2 (In the Senate - Received from the House April 26, 1993;
1-3 April 27, 1993, read first time and referred to Committee on State
1-4 Affairs; May 5, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 1; May 5, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Harris of Dallas x
1-10 Rosson x
1-11 Carriker x
1-12 Henderson x
1-13 Leedom x
1-14 Lucio x
1-15 Luna x
1-16 Nelson x
1-17 Patterson x
1-18 Shelley x
1-19 Sibley x
1-20 West x
1-21 Whitmire x
1-22 COMMITTEE SUBSTITUTE FOR H.B. No. 1587 By: Harris of Dallas
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to the operation of the state lottery; creating the State
1-26 Lottery Commission.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Subtitle E, Title 4, Government Code, is amended
1-29 by adding Chapter 467 to read as follows:
1-30 CHAPTER 467. TEXAS LOTTERY COMMISSION
1-31 SUBCHAPTER A. GENERAL PROVISIONS
1-32 Sec. 467.001. DEFINITIONS. In this chapter:
1-33 (1) "Commission" means the Texas Lottery Commission.
1-34 (2) "Executive director" means the executive director
1-35 of the Texas Lottery Commission.
1-36 Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
1-37 subject to Chapter 325 (Texas Sunset Act). Unless continued in
1-38 existence as provided by that chapter, the commission is abolished
1-39 and this Act expires September 1, 2003.
1-40 (Sections 467.003-467.020 reserved for expansion
1-41 SUBCHAPTER B. COMMISSION
1-42 Sec. 467.021. MEMBERSHIP. (a) The commission is composed
1-43 of three members appointed by the governor with the advice and
1-44 consent of the senate.
1-45 (b) In making appointments to the commission, the governor
1-46 shall strive to achieve representation by all the population groups
1-47 of the state with regard to economic status, sex, race, and
1-48 ethnicity.
1-49 (c) One member must have experience in the bingo industry.
1-50 Sec. 467.022. TERM OF OFFICE. Members hold office for
1-51 staggered terms of six years with one member's term expiring
1-52 February 1 of each odd-numbered year.
1-53 Sec. 467.023. RESIDENCE REQUIREMENT. An individual is not
1-54 eligible to be a member of the commission unless the individual has
1-55 been a resident of this state for at least 10 consecutive years
1-56 immediately before appointment.
1-57 Sec. 467.024. ELIGIBILITY. (a) An individual is not
1-58 eligible to be an appointed member of the commission if the
1-59 individual:
1-60 (1) owns or controls, directly or indirectly, more
1-61 than a 10 percent interest in a business entity or other
1-62 organization regulated by the commission or receiving funds from
1-63 the commission;
1-64 (2) is employed by or participates in the management
1-65 of a business entity or other organization regulated by the
1-66 commission or receiving funds from the commission;
1-67 (3) uses or receives a substantial amount of tangible
1-68 goods, services, or funds from the commission, other than
2-1 compensation or reimbursement authorized by law for commission
2-2 membership, attendance, or expenses;
2-3 (4) is an officer, employee, or paid consultant of a
2-4 Texas trade association in the field of bingo or lottery;
2-5 (5) is required to register as a lobbyist under
2-6 Chapter 305 because of the person's activities for compensation on
2-7 behalf of a profession related to the operation of the commission;
2-8 (6) is married to an individual described by
2-9 Subdivision (1)-(5);
2-10 (7) has been convicted of a felony or of any crime
2-11 involving moral turpitude; or
2-12 (8) is not a citizen of the United States.
2-13 (b) In this section, "Texas trade association" means a
2-14 nonprofit, cooperative, and voluntarily joined association of
2-15 business or professional competitors in this state designed to
2-16 assist its members and its industry or profession in dealing with
2-17 mutual business or professional problems and in promoting their
2-18 common interest.
2-19 Sec. 467.025. PROHIBITED CONDUCT. (a) A commission member
2-20 may not:
2-21 (1) accept any employment or remuneration from:
2-22 (A) a person that has a significant financial
2-23 interest in the lottery; or
2-24 (B) a bingo commercial lessor, bingo
2-25 distributor, or bingo manufacturer;
2-26 (2) play any lottery or bingo game conducted in this
2-27 state;
2-28 (3) accept or be entitled to accept any part of the
2-29 winnings to be paid from a lottery or bingo game conducted in this
2-30 state;
2-31 (4) use the member's official authority to affect the
2-32 result of an election or nomination for public office; or
2-33 (5) directly or indirectly coerce, attempt to coerce,
2-34 command, or advise a person to pay, lend, or contribute anything of
2-35 value to another person for political purposes.
2-36 (b) A commission member or former commission member or the
2-37 spouse of a commission member or former commission member may not
2-38 solicit or accept employment from a person regulated by the
2-39 commission before the second anniversary of the date on which the
2-40 commission member's service on the commission ends.
2-41 (c) In this section, "person that has a significant
2-42 financial interest in the lottery" has the meaning assigned by
2-43 Section 4.06, State Lottery Act (Article 179g, Vernon's Texas Civil
2-44 Statutes).
2-45 Sec. 467.026. REMOVAL OF COMMISSION MEMBER. (a) The
2-46 governor may remove a commission member if the member:
2-47 (1) does not have at the time of appointment the
2-48 qualifications required for appointment to the commission;
2-49 (2) does not maintain during service on the commission
2-50 the qualifications required for appointment to the commission;
2-51 (3) violates a prohibition established by Section
2-52 467.025;
2-53 (4) cannot discharge the member's duties for a
2-54 substantial part of the term for which the member is appointed
2-55 because of illness or disability; or
2-56 (5) is absent from more than half of the regularly
2-57 scheduled commission meetings that the member is eligible to attend
2-58 during a calendar year unless the absence is excused by majority
2-59 vote of the commission.
2-60 (b) The validity of an action of the commission is not
2-61 affected by the fact that it is taken when a ground for removal of
2-62 a commission member exists.
2-63 (c) If the presiding officer has knowledge that a potential
2-64 ground for removal exists, the presiding officer shall notify the
2-65 governor.
2-66 Sec. 467.027. COMPENSATION AND EXPENSES. (a) A commission
2-67 member is not entitled to compensation for serving on the
2-68 commission.
2-69 (b) A commission member is entitled to reimbursement for
2-70 actual and necessary expenses incurred in performing the member's
3-1 duties, subject to any applicable limitation in the General
3-2 Appropriations Act.
3-3 Sec. 467.028. OFFICES. The commission shall maintain its
3-4 general office in the city of Austin. The commission may also
3-5 establish branch offices.
3-6 Sec. 467.029. PRESIDING OFFICER. The governor shall
3-7 designate one member of the commission as presiding officer of the
3-8 commission to serve in that capacity at the pleasure of the
3-9 governor.
3-10 Sec. 467.030. MEETINGS. The commission shall hold at least
3-11 six regular meetings each year on dates fixed by the commission.
3-12 The commission may meet at other times at the call of the presiding
3-13 officer or as provided by commission rule.
3-14 Sec. 467.031. DIVISIONS. The commission shall establish
3-15 separate divisions to oversee bingo and the state lottery.
3-16 Sec. 467.032. EXECUTIVE DIRECTOR. (a) The commission shall
3-17 employ an executive director to administer this chapter.
3-18 (b) The executive director holds office at the will of the
3-19 commission and is specifically exempted from the Position
3-20 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
3-21 Statutes).
3-22 (c) The executive director or an acting executive director
3-23 shall be appointed by the commission no later than November 1,
3-24 1993.
3-25 Sec. 467.033. DIVISION DIRECTORS. The executive director
3-26 shall employ a director to oversee each division. A division
3-27 director serves at the will of the executive director and is
3-28 specifically exempted from the Position Classification Act of 1961
3-29 (Article 6252-11, Vernon's Texas Civil Statutes).
3-30 Sec. 467.034. EMPLOYEES. The executive director shall
3-31 employ other personnel necessary to administer the laws under the
3-32 commission's jurisdiction. Commission employees serve at the will
3-33 of the executive director.
3-34 Sec. 467.035. RESTRICTIONS ON EMPLOYMENT. (a) The
3-35 commission may not employ or continue to employ a person who owns a
3-36 financial interest in:
3-37 (1) a bingo commercial lessor, bingo distributor, or
3-38 bingo manufacturer; or
3-39 (2) a lottery sales agency or a lottery operator.
3-40 (b) The commission may not employ or continue to employ a
3-41 person related within the second degree by affinity or third degree
3-42 by consanguinity, as determined under Article 5996h, Revised
3-43 Statutes, to a person who is subject to a disqualification
3-44 prescribed by Subsection (a).
3-45 (c) In employing the executive director and other employees,
3-46 the commission shall strive to reflect the diversity of the
3-47 population of the state as regards race, color, handicap, sex,
3-48 religion, age, and national origin.
3-49 Sec. 467.036. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
3-50 governor shall conduct an investigation of and is entitled to
3-51 obtain criminal history record information maintained by the
3-52 Department of Public Safety, the Federal Bureau of Investigation
3-53 Identification Division, or another law enforcement agency relating
3-54 to an individual the governor intends to appoint to the commission.
3-55 (b) The commission shall conduct an investigation of and is
3-56 entitled to obtain criminal history record information maintained
3-57 by the Department of Public Safety, the Federal Bureau of
3-58 Investigation Identification Division, or another law enforcement
3-59 agency relating to an individual the commission intends to employ.
3-60 (Sections 467.037-467.100 reserved for expansion
3-61 SUBCHAPTER C. POWERS AND DUTIES
3-62 Sec. 467.101. POWERS AND DUTIES OF COMMISSION. (a) The
3-63 commission has broad authority and shall exercise strict control
3-64 and close supervision over all activities authorized and conducted
3-65 in this state under:
3-66 (1) the Bingo Enabling Act (Article 179d, Vernon's
3-67 Texas Civil Statutes); and
3-68 (2) the State Lottery Act (Article 179g, Vernon's
3-69 Texas Civil Statutes).
3-70 (b) The commission shall ensure that games are conducted
4-1 fairly and in compliance with the law.
4-2 (c) The commission also has the powers and duties granted
4-3 under:
4-4 (1) the Bingo Enabling Act (Article 179d, Vernon's
4-5 Texas Civil Statutes); and
4-6 (2) the State Lottery Act (Article 179g, Vernon's
4-7 Texas Civil Statutes).
4-8 Sec. 467.102. RULES. The commission may adopt rules for the
4-9 enforcement and administration of this chapter and the laws under
4-10 the commission's jurisdiction.
4-11 Sec. 467.103. DUTIES OF EXECUTIVE DIRECTOR. (a) The
4-12 executive director shall perform all duties required by the
4-13 commission to administer this chapter and the laws under the
4-14 commission's jurisdiction. The executive director may not hold
4-15 other employment.
4-16 (b) The executive director may create, abolish, transfer,
4-17 and consolidate bureaus and other units that are part of the
4-18 commission and that are not expressly established by law as the
4-19 executive director determines to be necessary for the efficient
4-20 operation of the commission.
4-21 Sec. 467.104. RECORDS. (a) All commission records that are
4-22 not made confidential by other law are open to inspection by the
4-23 public during regular office hours.
4-24 (b) The executive director shall keep the records of the
4-25 commission.
4-26 Sec. 467.105. LEGAL REPRESENTATION. (a) The attorney
4-27 general shall designate at least one member of the attorney
4-28 general's staff to counsel and advise the commission and to
4-29 represent the commission in legal proceedings. The attorney
4-30 general shall make available to the appropriate prosecuting
4-31 attorneys any information obtained regarding a violation of a law
4-32 under the commission's jurisdiction.
4-33 (b) The attorney general may apply for injunctive or
4-34 declaratory relief to enforce a law under the commission's
4-35 jurisdiction or a rule adopted by the commission. Action by the
4-36 attorney general under this subsection does not limit the authority
4-37 of the attorney general or a prosecuting attorney to bring a
4-38 criminal proceeding.
4-39 SECTION 2. Section 1.02, State Lottery Act (Article 179g,
4-40 Vernon's Texas Civil Statutes), is amended by amending Subdivision
4-41 (2) and adding Subdivisions (9) and (10) to read as follows:
4-42 (2) "Division" means the lottery division established
4-43 by the Texas Lottery Commission under Chapter 467, Government Code,
4-44 and its subsequent amendments <in the office of the comptroller
4-45 under this Act>.
4-46 (9) "Commission" means the Texas Lottery Commission.
4-47 (10) "Executive director" means the executive director
4-48 of the Texas Lottery Commission.
4-49 SECTION 3. Article 1, State Lottery Act (Article 179g,
4-50 Vernon's Texas Civil Statutes), is amended by adding Section 1.041
4-51 to read as follows:
4-52 Sec. 1.041. DAILY ON-LINE GAME. (a) The commission shall
4-53 conduct a continuous daily on-line game with daily ticket sales.
4-54 (b) The commission shall initiate the operation of the daily
4-55 on-line game not later than April 1, 1994.
4-56 SECTION 4. Section 2.01(l), State Lottery Act (Article 179g,
4-57 Vernon's Texas Civil Statutes), is amended to read as follows:
4-58 (l) The legislature intends that advertisements or
4-59 promotions sponsored by the commission <comptroller's office> or
4-60 the division for the lottery not be of a nature that unduly
4-61 influences any person to purchase a lottery ticket or number.
4-62 SECTION 5. Section 2.02, State Lottery Act (Article 179g,
4-63 Vernon's Texas Civil Statutes), is amended to read as follows:
4-64 Sec. 2.02. POWERS AND DUTIES OF EXECUTIVE <COMPTROLLER,>
4-65 DIRECTOR<,> AND COMMISSION <DIVISION>. (a) The commission
4-66 <comptroller> and executive director have broad authority and shall
4-67 exercise strict control and close supervision over all lottery
4-68 games conducted in this state to promote and ensure integrity,
4-69 security, honesty, and fairness in the operation and administration
4-70 of the lottery.
5-1 (b) The commission <comptroller> shall adopt all rules
5-2 necessary to administer this Act. The executive director may
5-3 propose rules to be adopted by the commission <comptroller>, but
5-4 the executive director's proposed rules have no effect until
5-5 adopted by the commission <comptroller>.
5-6 (c) The commission <comptroller> shall adopt rules to the
5-7 extent they are not inconsistent with the Open Meetings Act
5-8 (Article 6252-17, Vernon's Texas Civil Statutes) and the Open
5-9 Records Act (Article 6252-17a, Vernon's Texas Civil Statutes)
5-10 governing the:
5-11 (1) security for the lottery and the commission
5-12 <division>, including the development of an internal security plan;
5-13 (2) apportionment of the total revenues from the sale
5-14 of tickets and from all other sources in the amounts provided by
5-15 this Act;
5-16 (3) enforcement of prohibitions on the sale of tickets
5-17 to or by an individual younger than 18 years of age; and
5-18 (4) enforcement of prohibitions on a person playing a
5-19 lottery game or activity by telephone.
5-20 (d) The commission <comptroller> may adopt rules governing
5-21 the establishment and operation of the lottery, including rules
5-22 governing:
5-23 (1) the type of lottery games or activities to be
5-24 conducted;
5-25 (2) the price of each ticket;
5-26 (3) the number of winning tickets and amount of the
5-27 prize paid on each winning ticket;
5-28 (4) the frequency of the drawing or selection of a
5-29 winning ticket;
5-30 (5) the number and types of locations at which a
5-31 ticket may be sold;
5-32 (6) the method to be used in selling a ticket;
5-33 (7) the use of vending machines or electronic or
5-34 mechanical devices of any kind, other than machines or devices that
5-35 dispense currency or coins as prizes;
5-36 (8) the manner of paying a prize to the holder of a
5-37 winning ticket;
5-38 (9) the investigation of possible violations of this
5-39 Act or any rule adopted under this Act;
5-40 (10) the means of advertising to be used for the
5-41 lottery;
5-42 (11) the qualifications of vendors of lottery services
5-43 or equipment;
5-44 (12) the confidentiality of information relating to
5-45 the operation of the lottery, including:
5-46 (A) trade secrets;
5-47 (B) security measures, systems, or procedures;
5-48 (C) security reports;
5-49 (D) bids or other information regarding the
5-50 commission's <division's> contracts, if disclosure of the
5-51 information would impair the commission's <division's> ability to
5-52 contract for facilities, goods, or services on terms favorable to
5-53 the commission <division>;
5-54 (E) personnel information unrelated to
5-55 compensation, duties, qualifications, or responsibilities; and
5-56 (F) information obtained by commission
5-57 <division> security officers or investigators;
5-58 (13) the development and availability of a model
5-59 agreement governing the division of a prize among multiple
5-60 purchasers of a winning ticket purchased through a group purchase
5-61 or pooling arrangement;
5-62 (14) the criteria to be used in evaluating bids for
5-63 contracts for lottery facilities, goods, and services; or
5-64 (15) any other matter necessary or desirable as
5-65 determined by the commission <comptroller>, to promote and ensure:
5-66 (A) the integrity, security, honesty, and
5-67 fairness of the operation and administration of the lottery; and
5-68 (B) the convenience of players and holders of
5-69 winning tickets.
5-70 (e) If the executive director authorizes a person who is not
6-1 an employee of the commission <division> to sell tickets, the
6-2 person must be licensed as a sales agent by the commission
6-3 <division>. The executive director may establish a provisional
6-4 license or other classes of licenses necessary to regulate and
6-5 administer the quantity and type of lottery games or activities
6-6 provided at each licensed location. Each sales agent shall post a
6-7 cash bond, surety bond, letter of credit, certificate of deposit,
6-8 or other security approved by the executive director, including the
6-9 contribution of cash to a pooled bond fund established by the
6-10 executive director to protect the state from possible losses. The
6-11 amount of the security shall be determined by the executive
6-12 director and shall reflect the possible losses to the state from
6-13 the operation of the sales agent. The executive director may also
6-14 require a sales agent to maintain insurance if necessary to protect
6-15 the interests of the state. As prescribed by rule <division
6-16 rules>, each sales agent shall prominently display the license in
6-17 each place of business or activity at which the sales agent sells
6-18 tickets.
6-19 (f) The commission <comptroller> shall make an annual report
6-20 to the governor and the legislature that provides a summary of
6-21 lottery revenues, prize disbursements, and other expenses for the
6-22 fiscal year preceding the report. The report must be in the form
6-23 and reported in the time provided by the General Appropriations
6-24 Act.
6-25 (g) The executive director may contract with or employ a
6-26 person to perform a function, activity, or service in connection
6-27 with the operation of the lottery as prescribed by the executive
6-28 director. A person with whom the executive director contracts to
6-29 operate a lottery must be eligible for a sales agent license under
6-30 Section 3.02 of this Act.
6-31 (h) <A contract for independent consulting, management
6-32 services, or activities related to the establishment or
6-33 implementation of lottery operations is not subject to:>
6-34 <(1) the State Purchasing and General Services Act
6-35 (Article 601b, Vernon's Texas Civil Statutes);>
6-36 <(2) the Professional Services Procurement Act
6-37 (Article 664-4, Vernon's Texas Civil Statutes);>
6-38 <(3) Chapter 454, Acts of the 65th Legislature,
6-39 Regular Session, 1977 (Article 6252-11c, Vernon's Texas Civil
6-40 Statutes); or>
6-41 <(4) the Information Resources Management Act (Article
6-42 4413(32j), Revised Statutes).>
6-43 <(i) This subsection and Subsection (h) of this section
6-44 expire September 1, 1993.>
6-45 <(j)> Each lottery operator's and sales agent's records are
6-46 subject to audit by the commission <division, the comptroller,> and
6-47 the state auditor. For the purpose of carrying out this Act, the
6-48 executive director<, comptroller,> or state auditor may examine all
6-49 books, records, papers, or other objects that the executive
6-50 director<, comptroller,> or state auditor determines are necessary
6-51 for conducting a complete examination under this Act and may also
6-52 examine under oath any officer, director, or employee of a lottery
6-53 operator or sales agent. The executive director<, comptroller,> or
6-54 state auditor may conduct an examination at the principal office or
6-55 any other office of the lottery operator or sales agent or may
6-56 require the lottery operator or sales agent to produce the records
6-57 at the office of the commission <division, comptroller,> or state
6-58 auditor. If a sales agent refuses to permit an examination or to
6-59 answer any question authorized by this subsection, the executive
6-60 director <comptroller> may summarily suspend the license of the
6-61 sales agent under Section 3.03 of this Act until the examination is
6-62 completed as required. Section 321.013(h), Government Code, does
6-63 not apply to an audit of a lottery operator or sales agent.
6-64 (i) <(k)> The commission <comptroller> shall adopt rules
6-65 prohibiting the operation of any game using a video lottery machine
6-66 or machine. As used in this subsection "video lottery machine" or
6-67 "machine" means any electronic video game machine that, upon
6-68 insertion of cash, is available to play or simulate the play of a
6-69 video game, including but not limited to video poker, keno, and
6-70 blackjack, utilizing a video display and microprocessors in which
7-1 the player may receive free games or credits that can be redeemed
7-2 for cash, coins or tokens, or that directly dispenses cash, coins,
7-3 or tokens.
7-4 SECTION 6. Article 2, State Lottery Act (Article 179g,
7-5 Vernon's Texas Civil Statutes), is amended by adding Section 2.021
7-6 to read as follows:
7-7 Sec. 2.021. REVIEW BY COMPTROLLER. The comptroller shall
7-8 perform an annual review of the management and operations of the
7-9 lottery and may examine such books, records, documents, things, or
7-10 persons as may be necessary for that purpose. The comptroller
7-11 shall report the results of his review to the governor, lieutenant
7-12 governor, and the speaker of the house of representatives.
7-13 SECTION 7. Section 2.03(a), State Lottery Act (Article 179g,
7-14 Vernon's Texas Civil Statutes), is amended to read as follows:
7-15 (a) The executive director or a lottery operator may not
7-16 establish or operate a lottery game or activity in which the winner
7-17 is chosen on the basis of the outcome of a sports event.
7-18 SECTION 8. Sections 2.04(a)-(f), (h), and (k), State Lottery
7-19 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
7-20 read as follows:
7-21 (a) The executive director may establish procedures for the
7-22 purchase or lease of facilities, goods, and services and make any
7-23 purchases, leases, or contracts that are necessary for carrying out
7-24 the purposes of this Act. The procedures shall, as determined
7-25 feasible and appropriate by the executive director, promote
7-26 competition to the maximum extent possible. In all procurement
7-27 decisions, the executive director shall take into account the
7-28 particularly sensitive nature of the lottery and shall act to
7-29 promote and ensure integrity, security, honesty, and fairness in
7-30 the operation and administration of the lottery and the objective
7-31 of producing revenues for the state treasury.
7-32 (b) The executive director may not award a contract for the
7-33 purchase or lease of facilities, goods, or services related to
7-34 lottery operations to a person who would be denied a license as a
7-35 sales agent under Section 3.02 of this Act.
7-36 (c) The procurement procedures adopted by the executive
7-37 director shall, as determined feasible and appropriate by the
7-38 executive director, afford any party who is aggrieved by the terms
7-39 of a solicitation or the award of a contract an opportunity to
7-40 protest the executive director's action to the commission
7-41 <comptroller>. The protest procedures shall provide for an
7-42 expedient resolution of the protest in order to avoid substantially
7-43 delaying a solicitation or contract award that is necessary for the
7-44 timely implementation of a lottery game. A protest must be in
7-45 writing and be filed with the commission <comptroller> not later
7-46 than 72 hours after receipt of notice of the executive director's
7-47 action.
7-48 (d) A party who is aggrieved by the commission's
7-49 <comptroller's> resolution of a protest under Subsection (c) of
7-50 this section may file an action in the district court of Travis
7-51 County. The court shall give preference to hearings and trials of
7-52 actions under this section. If the party filing the action seeks
7-53 to enjoin the implementation of a solicitation or contract, the
7-54 party shall post a bond that is payable to the state if the party
7-55 does not prevail in the appeal, and is in an amount sufficient to
7-56 compensate the state for the revenue that would be lost due to the
7-57 delay in lottery operations.
7-58 (e) A contract for the acquisition or provision of
7-59 facilities, supplies, equipment, materials, or services related to
7-60 the operation of the lottery shall provide for liquidated damages
7-61 and a performance bond in an amount equal to the executive
7-62 director's best available estimate of the revenue that would be
7-63 lost if the contractor fails to meet deadlines specified in the
7-64 contract.
7-65 (f) On request of the executive director, the <State
7-66 Purchasing and> General Services Commission shall assist the
7-67 executive director in:
7-68 (1) acquiring facilities, supplies, materials,
7-69 equipment, and services under the State Purchasing and General
7-70 Services Act (Article 601b, Vernon's Texas Civil Statutes); or
8-1 (2) establishing procedures for the executive
8-2 director's accelerated acquisition of facilities, supplies,
8-3 materials, equipment, and services for the operation of the
8-4 lottery.
8-5 (h) Notwithstanding the provisions of the Public Utility
8-6 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
8-7 commission <comptroller> may negotiate rates and execute contracts
8-8 with telecommunications service providers for the interexchange
8-9 services necessary for the operation of the lottery. The
8-10 commission <comptroller> may acquire transmission facilities by
8-11 lease, purchase, or lease-purchase. The acquisition of
8-12 transmission facilities shall be done on a competitive bid basis if
8-13 possible.
8-14 (k) The commission <comptroller> shall require any person
8-15 seeking to contract for goods or services relating to the
8-16 implementation and administration of this Act to submit to
8-17 competitive bidding procedures in accordance with rules established
8-18 by the commission <comptroller>. Such procedures shall be for the
8-19 purpose of insuring fairness and integrity.
8-20 SECTION 9. Section 2.05(a), State Lottery Act (Article 179g,
8-21 Vernon's Texas Civil Statutes), is amended to read as follows:
8-22 (a) In all contracts for lottery equipment, supplies,
8-23 services, and advertising, the commission <division> and each
8-24 lottery operator shall give preference to equipment or supplies
8-25 produced in this state or services or advertising offered by
8-26 bidders from this state, the cost to the state and quality being
8-27 equal.
8-28 SECTION 10. Sections 2.06(a) and (c), State Lottery Act
8-29 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
8-30 as follows:
8-31 (a) The executive director<, the division,> and each lottery
8-32 operator shall take positive steps to:
8-33 (1) inform minority businesses of opportunities to:
8-34 (A) provide lottery equipment and supplies to
8-35 the commission <division>;
8-36 (B) provide services, including advertising, to
8-37 the commission <division> for the operation of the lottery; or
8-38 (C) obtain a license to sell lottery tickets;
8-39 (2) waive or modify bond requirements, if feasible;
8-40 (3) award contracts for lottery equipment or supplies
8-41 to minority businesses when possible;
8-42 (4) award contracts for lottery services, including
8-43 advertising, to minority businesses when possible;
8-44 (5) license minority businesses as sales agents;
8-45 (6) monitor the effectiveness of the efforts to
8-46 increase the ability of minority businesses to do business with the
8-47 commission <division>; and
8-48 (7) require all bidders or contractors, when
8-49 appropriate, to include specific plans or arrangements to utilize
8-50 subcontracts with minority businesses.
8-51 (c) The commission <comptroller> shall annually report to
8-52 the legislature and the governor on the level of minority business
8-53 participation as pertains to both the commission's <division's>
8-54 contracts and the licensure of sales agents. The report shall
8-55 include recommendations for the improvement of minority business
8-56 opportunities in lottery-related business.
8-57 SECTION 11. Sections 2.07-2.11, State Lottery Act (Article
8-58 179g, Vernon's Texas Civil Statutes), are amended to read as
8-59 follows:
8-60 Sec. 2.07. Television Contracts. If the drawing or
8-61 selection of winning tickets is televised under a contract with the
8-62 commission <division>, the contract must be awarded by competitive
8-63 bid. The commission <comptroller> shall adopt rules governing the
8-64 competitive bidding process. Money received under the contract
8-65 shall be deposited in the state lottery account established under
8-66 Section 5.02 of this Act.
8-67 Sec. 2.08. Publicity of Individuals Prohibited. A state
8-68 officer <or employee>, including a commission member or <the
8-69 comptroller,> the executive director, or an officer or employee of
8-70 the commission <comptroller's office or the division,> may not
9-1 appear in an advertisement or promotion for the lottery that is
9-2 sponsored by the commission <comptroller's office or the division>
9-3 or in a televised lottery drawing. An advertisement or promotion
9-4 for the lottery may not contain the likeness or name of a state
9-5 officer <or employee>, including a commission member or <the
9-6 comptroller,> the executive director, or an officer or employee of
9-7 the commission <comptroller's office or the division>. In
9-8 connection with providing security for the lottery, this section
9-9 shall not prohibit a security officer or investigator employed by
9-10 the commission <division> from appearing in a televised lottery
9-11 drawing or other promotion for the lottery that is sponsored by the
9-12 commission <comptroller's office or the division>. Notwithstanding
9-13 the provisions of this section, the executive director may
9-14 designate an employee of the commission <division> to participate
9-15 in a promotional event<, the purpose of which is to award a prize>.
9-16 Sec. 2.09. Audit. The executive director shall provide for
9-17 a certified public accountant to conduct an independent audit for
9-18 each fiscal year of all accounts and transactions of the lottery.
9-19 The certified public accountant may not have, as determined by the
9-20 executive director, a significant financial interest in a sales
9-21 agent, lottery vendor, or lottery operator. The certified public
9-22 accountant shall present an audit report to the executive director,
9-23 the commission <comptroller>, the governor, and the legislature not
9-24 later than April 1 of the year following the fiscal year for which
9-25 the audit was performed. The report must contain recommendations
9-26 to enhance the earnings capability of the lottery and improve the
9-27 efficiency of lottery operations. The state auditor may review the
9-28 results of and working papers related to the audit.
9-29 Sec. 2.10. Investigations. The attorney general, the
9-30 district attorney for Travis County, or the district attorney,
9-31 criminal district attorney, or county attorney performing the
9-32 duties of district attorney for the county in which the violation
9-33 or alleged violation occurred may investigate a violation or
9-34 alleged violation of this Act and of the penal laws of this state
9-35 by the commission <division> or its employees, a sales agent, a
9-36 lottery vendor, or a lottery operator.
9-37 Sec. 2.11. Enforcement. (a) The executive director
9-38 <comptroller> or designated personnel of the commission <division>
9-39 may investigate violations of this Act and violations of the rules
9-40 adopted under this Act. After conducting investigations, the
9-41 executive director <comptroller>, a person designated by the
9-42 commission <comptroller>, or any law enforcement agency may file a
9-43 complaint with the district attorney of Travis County or with the
9-44 district attorney of the county in which a violation is alleged to
9-45 have occurred.
9-46 (b) The executive director <comptroller> has the
9-47 administrative, enforcement, and collection powers provided by
9-48 Subtitle B, Title 2, Tax Code, in regard to the lottery. For
9-49 purposes of the application of Title 2 of the Tax Code:
9-50 (1)<,> the state's share of proceeds from the sale of
9-51 lottery tickets is treated as if it were a tax; and
9-52 (2) a power granted to the comptroller may be
9-53 exercised by the commission.
9-54 SECTION 12. Article 2, State Lottery Act (Article 179g,
9-55 Vernon's Texas Civil Statutes), is amended by adding Section 2.111
9-56 to read as follows:
9-57 Sec. 2.111. VENUE. Venue is proper in Travis County or any
9-58 county in which venue is proper under Chapter 13, Code of Criminal
9-59 Procedure, and its subsequent amendments for:
9-60 (1) an offense under this Act;
9-61 (2) an offense under the Penal Code, if the accused:
9-62 (A) is a lottery operator, lottery vendor, sales
9-63 agent, or employee of the division; and
9-64 (B) is alleged to have committed the offense
9-65 while engaged in lottery activities; or
9-66 (3) an offense that involves property consisting of or
9-67 including lottery tickets under Title 7 or 11, Penal Code, and its
9-68 subsequent amendments.
9-69 SECTION 13. Sections 2.12(a)-(f), State Lottery Act (Article
9-70 179g, Vernon's Texas Civil Statutes), are amended to read as
10-1 follows:
10-2 (a) The executive director shall maintain a department of
10-3 security in the commission <division>. The executive director
10-4 shall appoint a deputy to administer the department. The deputy
10-5 must be qualified by training and experience in law enforcement or
10-6 security to supervise, direct, and administer the activities of the
10-7 department.
10-8 (b) The executive director may employ security officers or
10-9 investigators as the executive director considers necessary and may
10-10 commission security officers or investigators as peace officers.
10-11 The deputy and all investigators employed by the department of
10-12 security as peace officers must meet the requirements under Chapter
10-13 415, Government Code, for employment and commission as peace
10-14 officers.
10-15 (c) A security officer or investigator employed by the
10-16 department of security or a peace officer who is working in
10-17 conjunction with the commission <comptroller> or the Department of
10-18 Public Safety in the enforcement of this Act, without a search
10-19 warrant, may search and seize a lottery vending machine, lottery
10-20 computer terminal, or other lottery equipment that is located on
10-21 premises for which a person holds a sales agent license issued
10-22 under this Act.
10-23 (d) The Department of Public Safety, at the commission's
10-24 <comptroller's> request, shall perform a full criminal background
10-25 investigation of a prospective deputy or investigator of the
10-26 department of security. The commission <comptroller> shall
10-27 reimburse the Department of Public Safety for the actual costs of
10-28 an investigation.
10-29 (e) At least once every two years, the executive director
10-30 shall employ an independent firm that is experienced in security,
10-31 including computer security and systems security, to conduct a
10-32 comprehensive study of all aspects of lottery security, including:
10-33 (1) lottery personnel security;
10-34 (2) sales agent security;
10-35 (3) lottery operator and vendor security;
10-36 (4) security against ticket counterfeiting and
10-37 alteration and other means of fraudulent winning;
10-38 (5) security of lottery drawings;
10-39 (6) lottery computer, data communications, database,
10-40 and systems security;
10-41 (7) lottery premises and warehouse security;
10-42 (8) security of distribution of tickets;
10-43 (9) security of validation and payment procedures;
10-44 (10) security involving unclaimed prizes;
10-45 (11) security aspects of each lottery game;
10-46 (12) security against the deliberate placement of
10-47 winning tickets in lottery games that involve preprinted winning
10-48 tickets by persons involved in the production, storage,
10-49 transportation, or distribution of tickets; and
10-50 (13) other security aspects of lottery operations.
10-51 (f) The executive director shall provide the commission
10-52 <comptroller> with a complete report of the security study
10-53 conducted under Subsection (e) of this section. The commission
10-54 <comptroller> shall provide the governor and the legislature,
10-55 before the convening of each regular legislative session, with a
10-56 summary of the security study that shows the overall evaluation of
10-57 the lottery's security.
10-58 SECTION 14. Sections 2.13 and 2.14, State Lottery Act
10-59 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
10-60 as follows:
10-61 Sec. 2.13. DEMOGRAPHIC STUDIES. (a) The executive director
10-62 shall, every two years, employ an independent firm experienced in
10-63 demographic analysis to conduct a demographic study of lottery
10-64 players. The study shall include the income, age, sex, race,
10-65 education, and frequency of participation of players.
10-66 (b) The executive director shall report the results of the
10-67 demographic study conducted under Subsection (a) of this section to
10-68 the commission <comptroller>, the governor, and the legislature
10-69 before the convening of each regular legislative session.
10-70 Sec. 2.14. Confidential Information. The following
11-1 information is confidential and is exempt from disclosure under the
11-2 open records law, Chapter 424, Acts of the 63rd Legislature,
11-3 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
11-4 Statutes):
11-5 (1) security plans and procedures of the commission
11-6 <division or the office of the comptroller> designed to ensure the
11-7 integrity and security of the operation of the lottery;
11-8 (2) information of a nature that is designed to ensure
11-9 the integrity and security of the selection of winning tickets or
11-10 numbers in the lottery, other than information describing the
11-11 general procedures for selecting winning tickets or numbers; and
11-12 (3) the street address and telephone number of a prize
11-13 winner, if the prize winner has not consented to the release of the
11-14 information.
11-15 SECTION 15. Section 2.15(b), State Lottery Act (Article
11-16 179g, Vernon's Texas Civil Statutes), is amended to read as
11-17 follows:
11-18 (b) An investigation report or other document submitted by
11-19 the Department of Public Safety to the commission <division>
11-20 becomes part of the investigative files of the commission
11-21 <division> and is subject to discovery by a person that is the
11-22 subject of the investigation report or other document.
11-23 SECTION 16. Sections 3.01(c), (f), and (h), State Lottery
11-24 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
11-25 read as follows:
11-26 (c) An applicant for a license under this section must apply
11-27 to the division under rules prescribed by the commission
11-28 <comptroller>, provide information necessary to determine the
11-29 applicant's eligibility for a license under Section 3.02 of this
11-30 Act, and provide other information considered necessary by the
11-31 commission <comptroller>. The applicant must include an
11-32 application fee with each application. The director shall set the
11-33 application fee in an amount that is at least sufficient to cover
11-34 the costs incurred by the division and by the Department of Public
11-35 Safety to process the application. The director shall determine
11-36 from information provided by the Department of Public Safety the
11-37 amount required for costs incurred by the department and shall
11-38 allocate those amounts to the department at least monthly. If the
11-39 director denies an application for a license based on a factor
11-40 listed in Subsection (f) of this section, the director shall refund
11-41 one-half of the application fee to the applicant. If the director
11-42 denies an application based on another factor, the director may not
11-43 refund any part of the application fee. Applications for licenses
11-44 must be available for public inspection during regular office
11-45 hours.
11-46 (f) The commission <comptroller> shall adopt rules under
11-47 which, before issuing a license to an applicant, the director shall
11-48 consider:
11-49 (1) the financial responsibility and security of the
11-50 applicant and the business or activity in which the applicant is
11-51 engaged;
11-52 (2) the public accessibility of the applicant's place
11-53 of business or activity;
11-54 (3) the sufficiency of existing sales agents to serve
11-55 the public convenience;
11-56 (4) whether individuals under 18 years of age
11-57 constitute a majority of the applicant's customers or as customers
11-58 provide a majority of the applicant's sales volume;
11-59 (5) the volume of expected sales; and
11-60 (6) any other factor that the director considers
11-61 appropriate.
11-62 (h) Unless suspended or revoked, a license expires on the
11-63 date specified in the license, which may not be later than the
11-64 second anniversary of its date of issuance. The commission
11-65 <comptroller> shall adopt rules for the renewal of licenses. The
11-66 director shall set the fee for a renewal of a license in an amount
11-67 at least sufficient to cover the cost of processing the renewal. A
11-68 sales agent must file a renewal application and pay the renewal fee
11-69 before the sales agent's license expires.
11-70 SECTION 17. Sections 3.02(a), (d), and (f), State Lottery
12-1 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
12-2 read as follows:
12-3 (a) After a hearing, the director shall deny an application
12-4 for a license or the commission <comptroller> shall suspend or
12-5 revoke a license if the director or commission <comptroller>, as
12-6 applicable, finds that the applicant or sales agent:
12-7 (1) is an individual who:
12-8 (A) has been convicted of a felony, criminal
12-9 fraud, gambling or a gambling-related offense, or a misdemeanor
12-10 involving moral turpitude, if less than 10 years has elapsed since
12-11 the termination of the sentence, parole, mandatory supervision, or
12-12 probation served for the offense;
12-13 (B) is or has been a professional gambler; <or>
12-14 (C) is married to <or related in the first
12-15 degree of consanguinity or affinity to> an individual:
12-16 (i) described in Paragraph (A) or (B) of
12-17 this subdivision; or
12-18 (ii) who is currently delinquent in the
12-19 payment of any state tax; or
12-20 (D) is an officer or employee of the commission
12-21 or a lottery operator; or
12-22 (E) is a spouse, child, brother, sister, or
12-23 parent residing as a member of the same household in the principal
12-24 place of residence of a person described by Paragraph (D) of this
12-25 subdivision;
12-26 (2) is not an individual, and an individual described
12-27 in Subdivision (1) of this subsection:
12-28 (A) is an officer or director of the applicant
12-29 or sales agent;
12-30 (B) holds more than 10 percent of the stock in
12-31 the applicant or sales agent;
12-32 (C) holds an equitable interest greater than 10
12-33 percent in the applicant or sales agent;
12-34 (D) is a creditor of the applicant or sales
12-35 agent who holds more than 10 percent of the applicant's or sales
12-36 agent's outstanding debt;
12-37 (E) is the owner or lessee of a business that
12-38 the applicant or sales agent conducts or through which the
12-39 applicant will conduct a ticket sales agency;
12-40 (F) shares or will share in the profits, other
12-41 than stock dividends, of the applicant or sales agent; or
12-42 (G) participates in managing the affairs of the
12-43 applicant or sales agent; <or>
12-44 <(H) is an employee of the applicant or sales
12-45 agent who is or will be involved in:>
12-46 <(i) selling tickets; or>
12-47 <(ii) handling money from the sale of
12-48 tickets;>
12-49 (3) is currently delinquent in the payment of any
12-50 state tax;
12-51 (4) is a person whose location for the sales agency
12-52 is:
12-53 (A) a racetrack at which wagering is authorized
12-54 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
12-55 Statutes);
12-56 (B) a location licensed for games of bingo under
12-57 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
12-58 Statutes);
12-59 (C) on land that is owned by:
12-60 (i) this state; or
12-61 (ii) a political subdivision of this
12-62 state, other than land used as a mass transportation facility that
12-63 is used by commercial carriers; or
12-64 (D) a location for which a person holds a wine
12-65 and beer retailer's permit, mixed beverage permit, mixed beverage
12-66 late hours permit, private club registration permit, or private
12-67 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
12-68 Alcoholic Beverage Code; or
12-69 (5) has violated this Act or a rule adopted under this
12-70 Act.
13-1 (d) If the director proposes to deny an application for a
13-2 license or the commission <comptroller> proposes to suspend or
13-3 revoke a license under this section, the applicant or sales agent
13-4 is entitled to written notice of the time and place of the hearing.
13-5 A notice may be served on an applicant or sales agent personally or
13-6 sent by certified or registered mail, return receipt requested, to
13-7 the person's mailing address as it appears on the commission's
13-8 <division's> records. A notice must be served or mailed not later
13-9 than the 20th day before the date of the hearing.
13-10 (f) The Administrative Procedure and Texas Register Act
13-11 (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
13-12 hearing under this section. The commission shall provide for a
13-13 formal administrative hearings process.
13-14 SECTION 18. Section 3.03, State Lottery Act (Article 179g,
13-15 Vernon's Texas Civil Statutes), is amended to read as follows:
13-16 Sec. 3.03. Summary Suspension of License. (a) The
13-17 commission <comptroller> may suspend a sales agent's license
13-18 summarily without notice or hearing if the commission <comptroller>
13-19 finds that the action is necessary to maintain the integrity,
13-20 security, honesty, or fairness of the operation or administration
13-21 of the lottery or to prevent financial loss to the state and:
13-22 (1) the sales agent fails to deposit money received
13-23 from ticket sales under Section 5.01 of this Act;
13-24 (2) an event occurs that would render the sales agent
13-25 ineligible for a license under Section 3.02 of this Act;
13-26 (3) the sales agent refuses to permit the executive
13-27 director, the director, the commission <comptroller>, or the state
13-28 auditor to examine the agent's books, records, papers, or other
13-29 objects under Section 2.02(h) <2.02(j)> of this Act; or
13-30 (4) the executive director learns the sales agent has
13-31 failed to disclose information that would, if disclosed, render the
13-32 sales agent ineligible for a license under Section 3.02 of this
13-33 Act.
13-34 (b) The commission <comptroller> may summarily suspend a
13-35 sales agent's license if proceedings for a preliminary hearing
13-36 before the commission or the commission's representative <the
13-37 comptroller or the comptroller's representative> are initiated
13-38 simultaneously with the summary suspension. The preliminary
13-39 hearing shall be set for a date not later than 10 days after the
13-40 date of the summary suspension, unless the parties agree to a later
13-41 date.
13-42 (c) At the preliminary hearing, the sales agent must show
13-43 cause why the license should not remain suspended pending a final
13-44 hearing on suspension or revocation. The Administrative Procedure
13-45 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
13-46 Statutes) does not apply <to the comptroller> in the administration
13-47 and enforcement of the summary suspension of a license under this
13-48 section. The rules governing a hearing on any other license
13-49 suspension or revocation under this Act govern a final
13-50 administrative hearing under this subsection.
13-51 (d) To initiate a proceeding to summarily suspend a sales
13-52 agent's license, the commission <comptroller> must serve notice to
13-53 the sales agent informing the agent of the right to a preliminary
13-54 hearing <before the comptroller or the comptroller's
13-55 representative> and of the time and place of the preliminary
13-56 hearing. The notice must be personally served on the sales agent
13-57 or an officer, employee, or agent of the sales agent or sent by
13-58 certified or registered mail, return receipt requested, to the
13-59 sales agent's mailing address as it appears on the commission's
13-60 <division's> records. The notice must state the alleged violations
13-61 that constitute grounds for summary suspension. The suspension is
13-62 effective at the time the notice is served. If notice is served in
13-63 person, the sales agent shall immediately surrender the license to
13-64 the commission <comptroller or to the comptroller's
13-65 representative>. If notice is served by mail, the sales agent
13-66 shall immediately return the license to the commission
13-67 <comptroller>. If the sales agent uses an on-line electronic
13-68 terminal to sell tickets, the director or a lottery operator on the
13-69 instructions of the director may terminate the connection of the
13-70 terminal to the commission's <division's> lottery computer at the
14-1 time:
14-2 (1) the proceeding to summarily suspend the license is
14-3 initiated; or
14-4 (2) the division discovers the sales agent has failed
14-5 to deposit money received from ticket sales, if the sales agent's
14-6 license is being summarily suspended under Subsection (a)(1) of
14-7 this section.
14-8 SECTION 19. Section 3.06, State Lottery Act (Article 179g,
14-9 Vernon's Texas Civil Statutes), is amended to read as follows:
14-10 Sec. 3.06. ACCESS TO CRIMINAL HISTORY AND FEDERAL TAX
14-11 INFORMATION. (a) The commission <comptroller> is entitled to
14-12 conduct an investigation of and is entitled to obtain criminal
14-13 history record information maintained by the Department of Public
14-14 Safety, the Federal Bureau of Investigation Identification
14-15 Division, or another law enforcement agency to assist in the
14-16 investigation of:
14-17 (1) a sales agent or an applicant for a sales agent
14-18 license;
14-19 (2) a person required to be named in a license
14-20 application;
14-21 (3) a lottery operator or prospective lottery
14-22 operator;
14-23 (4) an employee of a lottery operator or prospective
14-24 lottery operator, if the employee is or will be directly involved
14-25 in lottery operations;
14-26 (5) a person who manufactures or distributes lottery
14-27 equipment or supplies, or a representative of a person who
14-28 manufactures or distributes lottery equipment or supplies offered
14-29 to the lottery;
14-30 (6) a person who has submitted a written bid or
14-31 proposal to the commission <division> in connection with the
14-32 procurement of goods or services by the commission <division>, if
14-33 the amount of the bid or proposal exceeds $500;
14-34 (7) an employee or other person who works for or will
14-35 work for a sales agent or an applicant for a sales agent license;
14-36 (8) a person who proposes to enter into or who has a
14-37 contract with the commission <division> to supply goods or services
14-38 to the commission <division>; or
14-39 (9) if a person described in Subdivisions (1) through
14-40 (8) of this subsection is not an individual, an individual who:
14-41 (A) is an officer or director of the person;
14-42 (B) holds more than 10 percent of the stock in
14-43 the person;
14-44 (C) holds an equitable interest greater than 10
14-45 percent in the person;
14-46 (D) is a creditor of the person who holds more
14-47 than 10 percent of the person's outstanding debt;
14-48 (E) is the owner or lessee of a business that
14-49 the person conducts or through which the person will conduct
14-50 lottery-related activities;
14-51 (F) shares or will share in the profits, other
14-52 than stock dividends, of the person;
14-53 (G) participates in managing the affairs of the
14-54 person; or
14-55 (H) is an employee of the person who is or will
14-56 be involved in:
14-57 (i) selling tickets; or
14-58 (ii) handling money from the sale of
14-59 tickets.
14-60 (b) The commission <comptroller> shall conduct an
14-61 investigation of and obtain criminal history record information
14-62 maintained by the Department of Public Safety, the Federal Bureau
14-63 of Investigation Identification Division, or another law
14-64 enforcement agency to assist in the investigation of:
14-65 (1) the executive director or a prospective executive
14-66 director <of the division>; or
14-67 (2) an employee or prospective employee of the
14-68 commission <division>.
14-69 (c) Not later than one year after the date of each renewal,
14-70 the commission <comptroller> shall obtain criminal history record
15-1 information maintained by the Department of Public Safety on a
15-2 sales agent whose license is renewed under Section 3.01(h) of this
15-3 Act.
15-4 (d) The executive director may discharge from employment an
15-5 employee of the commission <division> who fails to provide a
15-6 complete legible set of fingerprints on request. The executive
15-7 director may refuse to consider a prospective employee of the
15-8 commission <division> who fails to provide a complete legible set
15-9 of fingerprints on request.
15-10 (e) The executive director may deny an application for a
15-11 license or the commission <comptroller> may suspend or revoke a
15-12 license if the applicant or sales agent fails on request to provide
15-13 a complete legible set of fingerprints of<:>
15-14 <(1)> a person required to be named in a license
15-15 application<; or>
15-16 <(2) an employee or other person who works or will
15-17 work for the applicant or sales agent, if the person:>
15-18 <(A) is or will be involved in the sale of
15-19 tickets; or>
15-20 <(B) handles or will handle money from the sale
15-21 of tickets>.
15-22 (f) All criminal history record information received by the
15-23 executive director is privileged information and is for the
15-24 exclusive use of the executive director and employees of the
15-25 commission <division> designated by the executive director. Except
15-26 on court order or as provided by Subsection (h) of this section,
15-27 the information may not be released or otherwise disclosed to any
15-28 other person or agency.
15-29 (g) All information received by the executive director from
15-30 the Internal Revenue Service is confidential and may only be used
15-31 as provided by the contract between the comptroller and the
15-32 Internal Revenue Service under which the information was obtained.
15-33 (h) The executive director or an employee of the commission
15-34 <division> may not provide any person being investigated under this
15-35 section with a copy of the person's criminal history record
15-36 obtained from the Department of Public Safety, the Federal Bureau
15-37 of Investigation Identification Division, or another law
15-38 enforcement agency. This subsection does not prevent the executive
15-39 director from disclosing to the person the dates and places of
15-40 arrests, offenses, and dispositions contained in the criminal
15-41 history records.
15-42 (i) A person commits an offense if the person releases or
15-43 discloses information received by the commission <comptroller>
15-44 under this section except on court order or as provided by
15-45 Subsection (h) of this section. An offense under this subsection
15-46 is a Class A misdemeanor.
15-47 (j) The executive director may request the cooperation of
15-48 the Department of Public Safety to perform a background
15-49 investigation of a person listed in Subsection (a) or (b) of this
15-50 section. The executive director shall reimburse the Department of
15-51 Public Safety for the actual cost of an investigation. The
15-52 executive director may require a person who is subject to
15-53 investigation to pay all costs of the investigation and to provide
15-54 any information, including fingerprints, necessary to carry out the
15-55 investigation or facilitate access to state or federal criminal
15-56 history record information. Payments made to the executive
15-57 director under this subsection shall be deposited in the general
15-58 revenue fund and may be used to reimburse the Department of Public
15-59 Safety for the actual costs of an investigation.
15-60 (k) Unless otherwise prohibited by law, the Department of
15-61 Public Safety may retain any record or information submitted to it
15-62 under this section. The Department of Public Safety shall notify
15-63 the executive director of any change in information provided to the
15-64 executive director when the Department of Public Safety learns of
15-65 the change.
15-66 (l) The commission shall adopt rules governing the custody
15-67 and use of criminal history record information obtained under this
15-68 section. The comptroller shall adopt necessary rules governing the
15-69 custody and use of information obtained from the Internal Revenue
15-70 Service under this section.
16-1 (m) The executive director may obtain information relating
16-2 to a person's qualification for licensing, employment, or
16-3 contracting under this Act from the Internal Revenue Service under
16-4 a contract between the comptroller and the Internal Revenue Service
16-5 on:
16-6 (1) a sales agent or an applicant for a sales agent
16-7 license;
16-8 (2) an employee or prospective employee of the
16-9 commission <division>;
16-10 (3) a person required to be named in a license
16-11 application;
16-12 (4) a lottery operator or prospective lottery
16-13 operator;
16-14 (5) an employee of a lottery operator or prospective
16-15 lottery operator, if the employee is or will be directly involved
16-16 in lottery operations;
16-17 (6) a person who manufactures or distributes lottery
16-18 equipment or supplies, or a representative of a person who
16-19 manufactures or distributes lottery equipment or supplies offered
16-20 to the lottery;
16-21 (7) a person who has submitted a written bid or
16-22 proposal to the commission <division> in connection with the
16-23 procurement of goods or services by the commission <division>;
16-24 (8) an employee or other person who works for or will
16-25 work for a sales agent or an applicant for a sales agent license;
16-26 or
16-27 (9) a person who proposes to enter into or who has a
16-28 contract with the commission <division> to supply goods or services
16-29 to the commission <division>.
16-30 (n) The executive director may award a contract for lottery
16-31 supplies or services, including a contract under Section 2.02(g) of
16-32 this Act, pending the completion of any investigation authorized by
16-33 this Act. A contract awarded under this subsection must include a
16-34 provision permitting the executive director to terminate the
16-35 contract without penalty if the investigation reveals that the
16-36 person to whom the contract is awarded would not be eligible for a
16-37 sales agent license under Section 3.02 of this Act. <The
16-38 director's authority to award a contract under this subsection
16-39 expires September 1, 1993. This subsection expires January 1,
16-40 1995.>
16-41 (o) <The comptroller shall obtain criminal history record
16-42 information maintained by the Department of Public Safety on any
16-43 person receiving a temporary license under Section 3.04 of this Act
16-44 not later than one year after the date of issuance of the temporary
16-45 license. This subsection expires September 1, 1993.>
16-46 <(p)> All fingerprints submitted to the Department of Public
16-47 Safety must be on a form prescribed by the Department of Public
16-48 Safety.
16-49 SECTION 20. Section 4.01, State Lottery Act (Article 179g,
16-50 Vernon's Texas Civil Statutes), is amended to read as follows:
16-51 Sec. 4.01. Tickets. (a) The executive director shall
16-52 prescribe the form of tickets. The toll-free "800" telephone
16-53 number established by the Texas Commission on Alcohol and Drug
16-54 Abuse under Section 461.018, Health and Safety Code, must be
16-55 printed on each ticket. The overall estimated odds of winning a
16-56 prize in a given game or activity must be printed on each ticket
16-57 and prominently displayed in association with the sale of lottery
16-58 products. The estimate must be based on reasonable projections and
16-59 past experience.
16-60 (b) By purchasing a ticket in a particular lottery game or
16-61 activity, a player agrees to abide by and be bound by the
16-62 commission's <division's> rules, including the rules applicable to
16-63 the particular lottery game or activity involved. The player also
16-64 acknowledges that the determination of whether the player is a
16-65 valid winner is subject to the commission's <division's> rules and
16-66 claims procedures, including those developed for the particular
16-67 lottery game or activity involved, and subject to any validation
16-68 tests established by the commission <division> for the particular
16-69 lottery game or activity involved. If the lottery uses tickets, an
16-70 abbreviated form of the rules or a reference to the rules may
17-1 appear on the tickets.
17-2 (c) A person claiming or attempting to claim a lottery prize
17-3 or a share of a lottery prize represents that the ticket or other
17-4 item showing that the person is entitled to the prize or share was
17-5 lawfully obtained, is not stolen, forged, or altered, and has not
17-6 previously been redeemed.
17-7 SECTION 21. Section 4.02, State Lottery Act (Article 179g,
17-8 Vernon's Texas Civil Statutes), is amended to read as follows:
17-9 Sec. 4.02. Certain Sales of Tickets Prohibited. (a) A
17-10 person commits an offense if the person intentionally or knowingly
17-11 sells a ticket at a price the person knows is greater than that
17-12 fixed by the commission <division> or by the lottery operator
17-13 authorized to set that price. An offense under this subsection is
17-14 a Class A misdemeanor.
17-15 (b) Except as provided by this subsection, a person who is
17-16 not a sales agent or an employee of a sales agent commits an
17-17 offense if the person intentionally or knowingly sells a ticket.
17-18 An offense under this subsection is a felony of the third degree.
17-19 A lottery operator may sell tickets to a licensed sales agent. A
17-20 person who is not a sales agent may distribute tickets as premiums
17-21 to customers, employees, or other persons who deal with the person
17-22 if no purchase <or service> is required to entitle the recipient to
17-23 the ticket. A qualified organization as defined in Section 2,
17-24 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
17-25 added by Chapter 957, Acts of the 71st Legislature, Regular
17-26 Session, 1989), may distribute tickets as a prize in a raffle
17-27 authorized by the Charitable Raffle Enabling Act.
17-28 (c) A person commits an offense if the person sells a ticket
17-29 at a location other than the location of a sales agency. An
17-30 offense under this subsection is a Class A misdemeanor.
17-31 (d) A sales agent or an employee of a sales agent commits an
17-32 offense if the person <may not> intentionally or knowingly sells or
17-33 offers <sell or offer> to sell a ticket to an individual that the
17-34 person knows is younger than 18 years of age. An offense under
17-35 this subsection is a Class C misdemeanor.
17-36 (e) A person may not purchase <sell> a ticket or claim,
17-37 collect, or receive <pay> a lottery prize or a share of a lottery
17-38 prize if <to another person that> the person <knows> is:
17-39 (1) a member, officer, or employee of a person that
17-40 has a contract with the commission <division> to sell or lease
17-41 goods or services used in the lottery;
17-42 (2) a member, officer, or employee of a lottery
17-43 operator;
17-44 (3) an officer or employee of the commission
17-45 <comptroller>; or
17-46 (4) a spouse, child, brother, sister, or parent
17-47 residing as a member of the same household in the principal place
17-48 of residence of a person described by Subdivision (1), (2), or (3)
17-49 of this subsection.
17-50 (f) A person 18 years of age or older may purchase a ticket
17-51 to give as a gift to another person, including an individual
17-52 younger than 18 years of age.
17-53 (g) If an individual listed in Subsection (e) of this
17-54 section purchases a ticket or claims or otherwise attempts to
17-55 collect or receive a lottery prize or a share of a lottery prize or
17-56 an individual younger than 18 years of age directly purchases a
17-57 ticket, the individual is not eligible to receive a prize or share
17-58 of a prize, and the prize or share of a prize otherwise payable on
17-59 the ticket is treated as an unclaimed prize as provided by Section
17-60 5.05 of this Act.
17-61 (h) <(g)> A sales agent or an employee of a sales agent
17-62 commits an offense if the person intentionally or knowingly sells a
17-63 ticket to another person by extending credit or lending money to
17-64 the person to enable the person to purchase the ticket. An offense
17-65 under this subsection is a Class C misdemeanor.
17-66 (i) <(h)> A person commits an offense if the person
17-67 intentionally or knowingly sells <may not purchase> a ticket and:
17-68 (1) accepts <with> a food stamp coupon issued under
17-69 the food stamp program administered under Chapter 33, Human
17-70 Resources Code, as payment;
18-1 (2) accepts <with> a credit card or a debit card as a
18-2 source of payment;
18-3 (3) the sale is made over the telephone; or
18-4 (4) the sale is made by mail-order sales.
18-5 (j) <(i)> A person commits an offense if the person
18-6 intentionally or knowingly purchases <may not pay> for a ticket
18-7 with:
18-8 (1) a food stamp coupon issued under the food stamp
18-9 program administered under Chapter 33, Human Resources Code; or
18-10 (2) the proceeds of a check issued as a payment under
18-11 the Aid to Families with Dependent Children program administered
18-12 under Chapter 31, Human Resources Code.
18-13 (k) An offense under Subsection (i) or (j) of this section
18-14 is a Class C misdemeanor.
18-15 (l) A person commits an offense if, for financial gain, the
18-16 person establishes or promotes a group purchase or pooling
18-17 arrangement under which tickets are purchased on behalf of the
18-18 group or pool and any prize is divided among the members of the
18-19 group or pool, and the person intentionally or knowingly:
18-20 (1) uses any part of the funds solicited or accepted
18-21 for a purpose other than purchasing tickets on behalf of the group
18-22 or pool; or
18-23 (2) retains a share of any prize awarded as
18-24 compensation for establishing or promoting the group purchase or
18-25 pooling arrangement.
18-26 (m) An offense under Subsection (l) of this section is a
18-27 felony of the third degree.
18-28 SECTION 22. Section 4.03, State Lottery Act (Article 179g,
18-29 Vernon's Texas Civil Statutes), is amended by amending Subsection
18-30 (d) and adding Subsection (h) to read as follows:
18-31 (d) An offense under Subsection (c) of this section is a
18-32 Class A misdemeanor unless it is shown on the trial of the offense
18-33 that:
18-34 (1) the amount claimed <or attempted to be claimed> is
18-35 greater than $200 but not more than $10,000, in which event the
18-36 offense is a felony of the third degree;
18-37 (2) the amount claimed <or attempted to be claimed> is
18-38 greater than $10,000, in which event the offense is a felony of the
18-39 second degree; or
18-40 (3) the person has previously been convicted of an
18-41 offense under this section, in which event the offense is a felony
18-42 of the third degree, unless the offense is designated as a felony
18-43 of the second degree under Subdivision (2) of this subsection.
18-44 (h) In this section, "claim" includes an attempt to claim,
18-45 without regard to whether the attempt is successful.
18-46 SECTION 23. Section 4.04(b), State Lottery Act (Article
18-47 179g, Vernon's Texas Civil Statutes), is amended to read as
18-48 follows:
18-49 (b) A person commits an offense if the person knowingly
18-50 refuses to produce for inspection by the director, executive
18-51 director, commission <comptroller>, or state auditor a book,
18-52 record, or document required to be maintained or made by this Act
18-53 or a rule adopted under this Act.
18-54 SECTION 24. Section 4.045(a), State Lottery Act (Article
18-55 179g, Vernon's Texas Civil Statutes), is amended to read as
18-56 follows:
18-57 (a) A person commits an offense if the person intentionally
18-58 or<,> knowingly<, recklessly, or with criminal negligence> makes a
18-59 material and false, incorrect, or deceptive statement to a person
18-60 conducting an investigation or exercising discretion under this Act
18-61 or a rule adopted under this Act.
18-62 SECTION 25. Sections 4.06(a)-(e), State Lottery Act (Article
18-63 179g, Vernon's Texas Civil Statutes), are amended to read as
18-64 follows:
18-65 (a) A commission member <The comptroller, the state
18-66 treasurer>, the executive director, the director, or an employee of
18-67 the division may not knowingly accept a gift or political
18-68 contribution from:
18-69 (1) a person that has a significant financial interest
18-70 in the lottery;
19-1 (2) a person related in the first degree of
19-2 consanguinity or affinity to a person that has a significant
19-3 financial interest in the lottery;
19-4 (3) a person that owns more than a 10 percent interest
19-5 in an entity that has a significant financial interest in the
19-6 lottery;
19-7 (4) a political committee that is directly
19-8 established, administered, or controlled, in whole or in part, by a
19-9 person that has a significant financial interest in the lottery; or
19-10 (5) a person who, within the two years preceding the
19-11 date of the gift or contribution, won a lottery prize exceeding
19-12 $600 in amount or value.
19-13 (b) A former commission member, former executive director,
19-14 <comptroller, former state treasurer,> or former director may not:
19-15 (1) for compensation, represent a person that has made
19-16 or intends to make a bid to operate the lottery before the
19-17 commission <comptroller> before the second anniversary of the date
19-18 that the person's service in office or employment with the division
19-19 ceases;
19-20 (2) represent any person or receive compensation for
19-21 services rendered on behalf of any person regarding a particular
19-22 matter in which the former officer or employee participated during
19-23 the period of service or employment with the division, either
19-24 through personal involvement or because the matter was within the
19-25 scope of the officer's or employee's official responsibility; or
19-26 (3) for compensation, communicate directly with a
19-27 member of the legislative branch to influence legislation on behalf
19-28 of a person that has a significant financial interest in the
19-29 lottery, before the second anniversary of the date that the
19-30 person's service in office or employment with the division ceases.
19-31 (c) A former commission member <comptroller, former state
19-32 treasurer>, former executive director, former director, or former
19-33 employee of the division may not, before the second anniversary of
19-34 the date that the person's service in office or employment with the
19-35 division ceases, knowingly accept a gift or political contribution
19-36 from:
19-37 (1) a person that has a significant financial interest
19-38 in the lottery;
19-39 (2) a person related in the first degree of
19-40 consanguinity or affinity to a person that has a significant
19-41 financial interest in the lottery;
19-42 (3) a person that owns more than a 10 percent interest
19-43 in an entity that has a significant financial interest in the
19-44 lottery;
19-45 (4) a political committee that is directly
19-46 established, administered, or controlled, in whole or in part, by a
19-47 person that has a significant financial interest in the lottery; or
19-48 (5) a person who, within the two years preceding the
19-49 date of the gift or contribution, won a lottery prize exceeding
19-50 $600 in amount or value.
19-51 (d) A person may not knowingly make a gift or political
19-52 contribution to a commission member <the comptroller, the state
19-53 treasurer>, the executive director, the director, or an employee of
19-54 the division if the person:
19-55 (1) has a significant financial interest in the
19-56 lottery;
19-57 (2) is related in the first degree of consanguinity or
19-58 affinity to a person that has a significant financial interest in
19-59 the lottery;
19-60 (3) owns more than a 10 percent interest in an entity
19-61 that has a significant financial interest in the lottery;
19-62 (4) is a political committee that is directly
19-63 established, administered, or controlled, in whole or in part, by a
19-64 person that has a significant financial interest in the lottery; or
19-65 (5) within the two years preceding the date of the
19-66 gift or contribution, won a lottery prize exceeding $600 in amount
19-67 or value.
19-68 (e) A person may not knowingly make a gift or political
19-69 contribution to a former commission member <comptroller, former
19-70 state treasurer>, former executive director, former director, or
20-1 former employee of the division before the second anniversary of
20-2 the date that the person's service in office or employment with the
20-3 division ceases, if the person:
20-4 (1) has a significant financial interest in the
20-5 lottery;
20-6 (2) is related in the first degree of consanguinity or
20-7 affinity to a person that has a significant financial interest in
20-8 the lottery;
20-9 (3) owns more than a 10 percent interest in an entity
20-10 that has a significant financial interest in the lottery;
20-11 (4) is a political committee that is directly
20-12 established, administered, or controlled, in whole or in part, by a
20-13 person that has a significant financial interest in the lottery; or
20-14 (5) within the two years preceding the date of the
20-15 gift or contribution, won a lottery prize exceeding $600 in amount
20-16 or value.
20-17 SECTION 26. Article 4, State Lottery Act (Article 179g,
20-18 Vernon's Texas Civil Statutes), is amended by adding Section 4.07
20-19 to read as follows:
20-20 Sec. 4.07. AGGREGATION OF AMOUNTS INVOLVED. When amounts
20-21 are claimed, attempted to be claimed, or obtained in violation of
20-22 this Act pursuant to one scheme or continuing course of conduct,
20-23 whether from the same or several sources, the conduct may be
20-24 considered as one offense and the amounts aggregated in determining
20-25 the grade of the offense.
20-26 SECTION 27. Section 5.01(b), State Lottery Act (Article
20-27 179g, Vernon's Texas Civil Statutes), is amended to read as
20-28 follows:
20-29 (b) The director may require sales agents to establish
20-30 separate electronic funds transfer accounts for the purposes of
20-31 depositing money from ticket sales, making payments to the
20-32 division, and receiving payments from the division. The commission
20-33 <comptroller> by rule shall establish the procedures for depositing
20-34 money from ticket sales into electronic funds transfer accounts, as
20-35 well as other procedures regarding the handling of money from
20-36 ticket sales. The director may not permit a sales agent to make
20-37 payments to the division or a lottery operator in cash.
20-38 SECTION 28. Sections 5.02(b), (f), and (j), State Lottery
20-39 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
20-40 read as follows:
20-41 (b) Money in the state lottery account shall be used only
20-42 for the following purposes and shall be distributed as follows:
20-43 (1) the payment of prizes to the holders of winning
20-44 tickets;
20-45 (2) the payment of costs incurred in the operation and
20-46 administration of the lottery, including any fees received by a
20-47 lottery operator, provided that the costs incurred in a fiscal
20-48 biennium may not exceed an amount equal to 15 percent of the gross
20-49 revenue accruing from the sale of tickets in that biennium;
20-50 (3) the establishment of a pooled bond fund, lottery
20-51 prize reserve fund, unclaimed prize fund, and prize payment
20-52 account;
20-53 (4) the transfer of amounts to the state lottery
20-54 stabilization fund as provided by Subsections (c), (d), and (e) of
20-55 this section; and
20-56 (5) <(4)> the balance, after creation of a reserve
20-57 sufficient to pay the amounts needed or estimated to be needed
20-58 under <provided by> Subdivisions (1) through (3) <and (2)> of this
20-59 subsection, to be transferred to the unobligated portion of the
20-60 general revenue fund, on or before the 15th day of each month.
20-61 (f) The state treasurer periodically shall file reports with
20-62 the executive director providing information regarding the revenue
20-63 credited to the state lottery account, the investments of the money
20-64 in the account, and the distributions made from the account.
20-65 (j) Notwithstanding Subsection (b)(5) <(b)(4)> and
20-66 Subsection (d) of this section, the initial transfer of revenue
20-67 from the state lottery account to the unobligated portion of the
20-68 general revenue fund and the state lottery stabilization fund under
20-69 those subsections shall be made on the 15th day of the month
20-70 following the month in which the earlier of the following occurs:
21-1 (1) the first ticket is sold to a player under this
21-2 Act; or
21-3 (2) the executive director receives liquidated damages
21-4 or a payment under a performance bond under a contract with a
21-5 lottery operator.
21-6 SECTION 29. Section 5.02(h)(4), State Lottery Act (Article
21-7 179g, Vernon's Texas Civil Statutes), is amended to read as
21-8 follows:
21-9 (4) "Net lottery revenue" means the gross lottery
21-10 revenue minus the amounts distributed or obligated for a purpose
21-11 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
21-12 section.
21-13 SECTION 30. Sections 5.03(j) and (l), State Lottery Act
21-14 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
21-15 as follows:
21-16 (j) The executive director shall deduct the amount of a
21-17 delinquent tax or other money from the winnings of a person who has
21-18 been finally determined to be:
21-19 (1) delinquent in the payment of a tax or other money
21-20 collected by the comptroller, the state treasurer, or the Texas
21-21 Alcoholic Beverage Commission;
21-22 (2) delinquent in making child support payments
21-23 administered or collected by the attorney general; <or>
21-24 (3) in default on a loan made under Chapter 52,
21-25 Education Code; or
21-26 (4) in default on a loan guaranteed under Chapter 57,
21-27 Education Code.
21-28 (l) The attorney general, comptroller, state treasurer,
21-29 Texas Alcoholic Beverage Commission, Texas Higher Education
21-30 Coordinating Board, and Texas Guaranteed Student Loan Corporation
21-31 shall each provide the executive director with a report of persons
21-32 who have been finally determined to be delinquent in the payment of
21-33 a tax or other money collected by the agency. The commission
21-34 <comptroller> shall adopt rules regarding the form and frequency of
21-35 reports under this subsection.
21-36 SECTION 31. Section 47.06(g), Penal Code, is amended to read
21-37 as follows:
21-38 (g) It is a defense to prosecution for an offense under this
21-39 chapter that the conduct was authorized, directly or indirectly, by
21-40 the State Lottery Act, the lottery division of <in> the Texas
21-41 Lottery Commission <office of the comptroller>, the Texas Lottery
21-42 Commission <comptroller>, the executive director of the Texas
21-43 Lottery Commission, or the director of the lottery division.
21-44 SECTION 32. Section 47.14, Penal Code, is amended to read as
21-45 follows:
21-46 Sec. 47.14. STATE LOTTERY. It is a defense to prosecution
21-47 for an offense under this chapter that the conduct:
21-48 (1) consisted entirely of participation in the state
21-49 lottery authorized by the State Lottery Act; or
21-50 (2) was a necessary incident to the operation of the
21-51 state lottery and was authorized, directly or indirectly, by the
21-52 State Lottery Act, the lottery division of <in> the Texas Lottery
21-53 Commission <office of the comptroller>, the Texas Lottery
21-54 Commission <comptroller>, the executive director of the Texas
21-55 Lottery Commission, or the director of the lottery division.
21-56 SECTION 33. Section 111.0047(a), Tax Code, is amended to
21-57 read as follows:
21-58 (a) If a person fails to comply with any provision of this
21-59 title<, with any provision of the State Lottery Act,> or with a
21-60 rule of the comptroller adopted under this title <or the State
21-61 Lottery Act>, the comptroller, after a hearing, may revoke or
21-62 suspend any permit or license issued to the person.
21-63 SECTION 34. Section 111.0048(a), Tax Code, is amended to
21-64 read as follows:
21-65 (a) A new permit or license may not be issued to a former
21-66 holder of a revoked permit or license unless the comptroller is
21-67 satisfied that the person will comply with the provisions of this
21-68 title <and the State Lottery Act> and the rules of the comptroller
21-69 relating to this title <and the State Lottery Act>.
21-70 SECTION 35. Section 2(5)(A), Chapter 421, Acts of the 63rd
22-1 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
22-2 Civil Statutes), is amended to read as follows:
22-3 (A) "Appointed officer of a major state agency"
22-4 means any of the following:
22-5 (i) a member of the Public Utility
22-6 Commission of Texas;
22-7 (ii) a member of the Texas Department of
22-8 Commerce;
22-9 (iii) a member of the Texas Board of
22-10 Aviation;
22-11 (iv) a member of the Texas Air Control
22-12 Board;
22-13 (v) a member of the Texas Alcoholic
22-14 Beverage Commission;
22-15 (vi) a member of the Finance Commission of
22-16 Texas;
22-17 (vii) a member of the <State Purchasing
22-18 and> General Services Commission;
22-19 (viii) a member of the Texas Board of
22-20 Criminal Justice;
22-21 (ix) a member of the Board of Trustees of
22-22 the Employees Retirement System of Texas;
22-23 (x) a member of the State Highway and
22-24 Public Transportation Commission;
22-25 (xi) a member of the Texas Workers'
22-26 Compensation Commission;
22-27 (xii) a member of the State Board of
22-28 Insurance;
22-29 (xiii) a member of the Parks and Wildlife
22-30 Commission;
22-31 (xiv) a member of the Public Safety
22-32 Commission;
22-33 (xv) the Secretary of State;
22-34 (xvi) a member of the State Securities
22-35 Board;
22-36 (xvii) a member of the Texas Amusement
22-37 Machine Commission;
22-38 (xviii) a member of the Texas Water
22-39 Development Board;
22-40 (xix) a member of the Texas Water
22-41 Commission;
22-42 (xx) a member of the governing board of a
22-43 state senior college or university as defined by Section 61.003,
22-44 Education Code, including The University of Texas at Arlington; The
22-45 University of Texas at Austin; The University of Texas at Dallas;
22-46 The University of Texas at El Paso; The University of Texas--Pan
22-47 American; The University of Texas--Pan American--Brownsville; The
22-48 University of Texas of the Permian Basin; The University of Texas
22-49 at San Antonio; The University of Texas at Tyler; The University of
22-50 Texas Southwestern Medical Center at Dallas; The University of
22-51 Texas Medical Branch at Galveston; The University of Texas Health
22-52 Science Center at Houston; The University of Texas Health Science
22-53 Center at San Antonio; The University of Texas System Cancer
22-54 Center; The University of Texas Health Science Center at Tyler;
22-55 Texas A&M University; Texas A&M University at Galveston; Prairie
22-56 View A&M University; Tarleton State University; Corpus Christi
22-57 State University; Texas A&I University; Laredo State University;
22-58 East Texas State University; East Texas State University at
22-59 Texarkana; University of Houston; University of Houston--Clear
22-60 Lake; University of Houston--Downtown; University of
22-61 Houston--Victoria; Lamar University at Beaumont; Lamar University
22-62 at Orange; Lamar University at Port Arthur; Midwestern State
22-63 University; University of North Texas; Texas College of Osteopathic
22-64 Medicine; Stephen F. Austin State University; Texas Southern
22-65 University; Texas Tech University; Texas Tech University Health
22-66 Sciences Center; Texas Woman's University; West Texas State
22-67 University; Angelo State University; Sam Houston State University;
22-68 Southwest Texas State University; Sul Ross State University; Sul
22-69 Ross State University--Uvalde Center; Texas State Technical
22-70 Institute--Amarillo; Texas State Technical Institute--Harlingen;
23-1 Texas State Technical Institute--Sweetwater; and Texas State
23-2 Technical Institute--Waco;
23-3 (xxi) a member of the Texas Higher
23-4 Education Coordinating Board;
23-5 (xxii) a member of the Texas Employment
23-6 Commission;
23-7 (xxiii) a member of the State Banking
23-8 Board;
23-9 (xxiv) a member of the board of trustees
23-10 of the Teachers Retirement System of Texas;
23-11 (xxv) a member of the Credit Union
23-12 Commission;
23-13 (xxvi) a member of the School Land Board;
23-14 (xxvii) a member of the board of the Texas
23-15 Department of Housing and Community Affairs;
23-16 (xxviii) a member of the Texas Racing
23-17 Commission;
23-18 (xxix) a member of the State Board of
23-19 Dental Examiners;
23-20 (xxx) a member of the Texas Board of
23-21 Licensure for Nursing Home Administrators;
23-22 (xxxi) a member of the Texas State Board
23-23 of Medical Examiners;
23-24 (xxxii) a member of the Board of Pardons
23-25 and Paroles;
23-26 (xxxiii) a member of the Texas State Board
23-27 of Pharmacy;
23-28 (xxxiv) the Banking Commissioner of the
23-29 Banking Department of Texas;
23-30 (xxxv) a member of the Department of
23-31 Information Resources Governing Board;
23-32 (xxxvi) the fire fighters' pension
23-33 commissioner;
23-34 (xxxvii) a member of the Texas Motor
23-35 Vehicle Commission;
23-36 (xxxviii) the director of the Office of
23-37 Court Administration of the Texas Judicial System;
23-38 (xxxix) the chief executive of the Office
23-39 of Public Utility Counsel;
23-40 (xl) a member of the Texas Real Estate
23-41 Commission;
23-42 (xli) a member of the board of directors
23-43 and the executive director of the State Bar of Texas;
23-44 (xlii) a member of the Bond Review Board;
23-45 (xliii) a member of the Texas Board of
23-46 Health;
23-47 (xliv) a member of the Texas Board of
23-48 Mental Health and Mental Retardation;
23-49 (xlv) a member of the Texas Board on
23-50 Aging;
23-51 (xlvi) a member of the Texas Board of
23-52 Human Services;
23-53 (xlvii) a member of the Texas Funeral
23-54 Service Commission;
23-55 (xlviii) a member of the board of
23-56 directors of a river authority created under the constitution or
23-57 laws of this state;
23-58 (xlix) the director of the lottery
23-59 division of the Texas Lottery Commission <in the office of the
23-60 comptroller>; <or>
23-61 (l) the deputy in charge of the department
23-62 of security in the lottery division of the Texas Lottery
23-63 Commission;
23-64 (li) the director of the bingo division of
23-65 the Texas Lottery Commission;
23-66 (lii) the executive director of the Texas
23-67 Lottery Commission; or
23-68 (liii) a member of the Texas Lottery
23-69 Commission <in the office of the comptroller>.
23-70 SECTION 36. Section 3, Charitable Raffle Enabling Act
24-1 (Article 179f, Revised Statutes, as added by Chapter 957, Acts of
24-2 the 71st Legislature, Regular Session, 1989), is amended by
24-3 amending Subsection (g) and adding Subsection (k) to read as
24-4 follows:
24-5 (g) A prize offered or awarded at the raffle may not be
24-6 money. Except as provided by Subsection (k) of this section, the
24-7 <The> value of a prize that is offered or awarded at the raffle and
24-8 that is purchased by the organization or for which the organization
24-9 provides any consideration may not exceed $25,000.
24-10 (k) A prize may consist of one or more tickets in the state
24-11 lottery authorized by the State Lottery Act (Article 179g, Vernon's
24-12 Texas Civil Statutes), and its subsequent amendments, with a face
24-13 value of $25,000 or less, without regard to whether a prize in the
24-14 lottery game to which the ticket or tickets relate exceeds $25,000.
24-15 SECTION 37. Sections 2.01(a)-(i), 2.04(j), and 4.06(g),
24-16 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
24-17 are repealed.
24-18 SECTION 38. (a) Except as provided by Subsections (b) and
24-19 (d) of this section, this Act takes effect September 1, 1993.
24-20 (b) Except as provided by Subsection (d) of this section,
24-21 Section 37 of this Act takes effect August 31, 1993.
24-22 (c) The Texas Lottery Commission is created on September 1,
24-23 1993. In making the initial appointments to the commission, the
24-24 governor shall designate one member for a term expiring in 1995,
24-25 one member for a term expiring in 1997, and one member for a term
24-26 expiring in 1999. The initial appointments to the commission shall
24-27 be made not later than September 15, 1993.
24-28 (d) This Act takes effect only if S.B. No. 768, 73rd
24-29 Legislature, Regular Session, 1993, or H.B. No. 2771, 73rd
24-30 Legislature, Regular Session, 1993, is enacted and becomes law. If
24-31 neither S.B. No. 768, 73rd Legislature, Regular Session, 1993, nor
24-32 H.B. No. 2771, 73rd Legislature, Regular Session, 1993, is enacted
24-33 and becomes law, this Act has no effect.
24-34 SECTION 39. (a) As soon as practicable after the commission
24-35 appoints an executive director or acting executive director, but
24-36 not later than April 1, 1994:
24-37 (1) all powers, duties, rights, and obligations of the
24-38 comptroller relating to the administration, operation, and
24-39 regulation of the state lottery are transferred to the Texas
24-40 Lottery Commission;
24-41 (2) except as provided by Subsection (b) of this
24-42 section, all assets, liabilities, personnel, equipment, data,
24-43 documents, facilities, and other items of the comptroller relating
24-44 to the administration, operation, and regulation of the state
24-45 lottery are transferred to the Texas Lottery Commission; and
24-46 (3) any appropriation to the comptroller relating to
24-47 the administration, operation, and regulation of the state lottery
24-48 is transferred to the Texas Lottery Commission.
24-49 (b) The comptroller may decide whether to transfer to the
24-50 Texas Lottery Commission:
24-51 (1) personnel who perform both duties that relate to
24-52 lottery operations and duties that do not relate to lottery
24-53 operations; and
24-54 (2) assets used both in lottery operations and
24-55 operations other than lottery operations.
24-56 (c) The officers and employees of the office of the
24-57 comptroller shall cooperate fully with the reorganization.
24-58 (d) A transfer of functions under Subsection (a) of this
24-59 section shall occur on the date specified in an interagency
24-60 contract between the Texas Lottery Commission and the comptroller.
24-61 (e) Notwithstanding the changes made by this Act to the
24-62 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
24-63 the comptroller retains all powers and duties relating to the
24-64 operation of the state lottery until the effective date of the
24-65 transfer under Subsection (a) of this section, and a reference in
24-66 the State Lottery Act (Article 179g, Vernon's Texas Civil Statutes)
24-67 to the Texas Lottery Commission is considered to be a reference to
24-68 the comptroller until that date, and a reference to the director of
24-69 the lottery division of the Texas Lottery Commission is considered
24-70 to be a reference to the director of the lottery division of the
25-1 comptroller's office until that date, and to the extent necessary
25-2 for the continued administration of the state lottery, a reference
25-3 in the State Lottery Act (Article 179g, Vernon's Texas Civil
25-4 Statutes) to the executive director of the Texas Lottery Commission
25-5 is considered to be reference to the director of the lottery
25-6 division of the comptroller's office until that date.
25-7 (f) The Texas Lottery Commission, the executive director or
25-8 acting executive director, or other employees of the commission may
25-9 utilize the Austin office of the Texas Lottery Commission prior to
25-10 the transfer of functions under Subsection (a) of this section and
25-11 lawful expenses incurred by the commission prior to the transfer of
25-12 functions under Subsection (a) of this section shall be payable
25-13 from appropriations subject to transfer under that subsection.
25-14 SECTION 40. (a) A change in law made by this Act does not
25-15 affect:
25-16 (1) the validity of any action taken by the
25-17 comptroller or the lottery division in the office of the
25-18 comptroller under the State Lottery Act (Article 179g, Vernon's
25-19 Texas Civil Statutes) before the effective date of the change in
25-20 law; or
25-21 (2) a civil, criminal, or administrative proceeding
25-22 completed before the effective date of this Act.
25-23 (b) A change in law made by this Act does not affect the
25-24 validity of a civil, criminal, or administrative proceeding,
25-25 including licensing or rulemaking, in progress on the effective
25-26 date of the change in law. A civil, criminal, or administrative
25-27 proceeding under the State Lottery Act (Article 179g, Vernon's
25-28 Texas Civil Statutes) that is in progress on the effective date of
25-29 a transfer of functions under Section 39 of this Act continues as
25-30 if it had been initiated by the Texas Lottery Commission under the
25-31 law in effect on the effective date of the transfer.
25-32 (c) All forms, rules, and procedures adopted by the
25-33 comptroller for the administration and enforcement of the State
25-34 Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and in
25-35 effect on the effective date of a transfer of functions under
25-36 Section 39 of this Act remain in effect on or after that date as if
25-37 adopted by the Texas Lottery Commission until amended, repealed,
25-38 withdrawn, or otherwise superseded by the Texas Lottery Commission.
25-39 A license issued under the State Lottery Act (Article 179g,
25-40 Vernon's Texas Civil Statutes) and in effect on the effective date
25-41 of a transfer of functions under Section 39 of this Act remains in
25-42 effect according to its terms as if issued by the Texas Lottery
25-43 Commission until the license expires or is revoked or surrendered.
25-44 (d) A change in law made by this Act applies only to an
25-45 offense committed on or after September 1, 1993. For the purposes
25-46 of this subsection, an offense is committed before September 1,
25-47 1993, if any element of the offense occurs before that date.
25-48 (e) An offense committed before September 1, 1993, is
25-49 covered by the law in effect when the offense was committed, and
25-50 the former law is continued in effect for this purpose.
25-51 SECTION 41. The importance of this legislation and the
25-52 crowded condition of the calendars in both houses create an
25-53 emergency and an imperative public necessity that the
25-54 constitutional rule requiring bills to be read on three several
25-55 days in each house be suspended, and this rule is hereby suspended.
25-56 * * * * *
25-57 Austin,
25-58 Texas
25-59 May 5, 1993
25-60 Hon. Bob Bullock
25-61 President of the Senate
25-62 Sir:
25-63 We, your Committee on State Affairs to which was referred H.B. No.
25-64 1587, have had the same under consideration, and I am instructed to
25-65 report it back to the Senate with the recommendation that it do not
25-66 pass, but that the Committee Substitute adopted in lieu thereof do
25-67 pass and be printed.
25-68 Harris of
25-69 Dallas, Chairman
25-70 * * * * *
26-1 WITNESSES
26-2 FOR AGAINST ON
26-3 ___________________________________________________________________
26-4 Name: Weston Ware x
26-5 Representing: Tx Baptist Christian Life Com
26-6 City: Dallas
26-7 -------------------------------------------------------------------
26-8 Name: Dan Martin x
26-9 Representing: Texans Who Care
26-10 City: Austin
26-11 -------------------------------------------------------------------