By: Jones, D. H.B. No. 1597
73R6209 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of video lottery games; providing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.02, State Lottery Act (Article 179g,
1-6 Vernon's Texas Civil Statutes), is amended by amending Subdivisions
1-7 (3), (6), and (7) and adding Subdivisions (9) and (10) to read as
1-8 follows:
1-9 (3) "Lottery" means the procedures operated by the
1-10 state under this Act through which prizes are awarded or
1-11 distributed by chance among persons who have paid, or
1-12 unconditionally agreed to pay, for a chance or other opportunity to
1-13 receive a prize and includes all procedures associated with the
1-14 operation of video lottery games.
1-15 (6) "Player" means a person who contributes any part
1-16 of the consideration for a ticket or for a video lottery game.
1-17 (7) "Sales agent" or "sales agency" means a person
1-18 licensed under this Act to sell lottery tickets or operate video
1-19 lottery game machines.
1-20 (9) "Video lottery game" means a single turn or
1-21 opportunity to play a video game in which the player, by chance,
1-22 may receive a voucher described in Section 5.031 of this Act.
1-23 (10) "Video lottery game machine" means any electronic
1-24 video gambling machine using a video display screen and
2-1 microprocessor that, on the making of a required payment, is
2-2 available to play or simulate the play of a video lottery game.
2-3 The term does not include any device authorized to be used in the
2-4 conducting of charitable gaming.
2-5 SECTION 2. Article 1, State Lottery Act (Article 179g,
2-6 Vernon's Texas Civil Statutes), is amended by adding Section 1.05
2-7 to read as follows:
2-8 Sec. 1.05. EXEMPTION FROM FEDERAL LAW. Video lottery game
2-9 machines operated or to be operated under this Act are exempted
2-10 from 15 U.S.C. Section 1172.
2-11 SECTION 3. Section 2.01(e), State Lottery Act (Article 179g,
2-12 Vernon's Texas Civil Statutes), is amended to read as follows:
2-13 (e) The director may employ or contract with marketing
2-14 representatives to promote the sale of tickets and the installation
2-15 of video lottery game machines, to encourage persons to apply to
2-16 become sales agents, or to investigate the qualifications of sales
2-17 agent applicants. The marketing representatives are exempted from
2-18 the Position Classification Act of 1961 (Article 6252-11, Vernon's
2-19 Texas Civil Statutes) and may be compensated based on a sales
2-20 incentive system to be established by the director.
2-21 SECTION 4. Sections 2.02(c) and (d), State Lottery Act
2-22 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
2-23 as follows:
2-24 (c) The comptroller shall adopt rules to the extent they are
2-25 not inconsistent with the Open Meetings Act (Article 6252-17,
2-26 Vernon's Texas Civil Statutes) and the Open Records Act (Article
2-27 6252-17a, Vernon's Texas Civil Statutes) governing the:
3-1 (1) security for the lottery and the division,
3-2 including the development of an internal security plan;
3-3 (2) apportionment of the total revenues from the sale
3-4 of tickets and from all other sources in the amounts provided by
3-5 this Act;
3-6 (3) enforcement of prohibitions on access to video
3-7 lottery games by and the sale of tickets to or by an individual
3-8 younger than 18 years of age; and
3-9 (4) enforcement of prohibitions on a person playing a
3-10 lottery game or activity by telephone.
3-11 (d) The comptroller may adopt rules governing the
3-12 establishment and operation of the lottery, including rules
3-13 governing:
3-14 (1) the type of lottery games or activities to be
3-15 conducted;
3-16 (2) the price of each ticket;
3-17 (3) the number of winning tickets and amount of the
3-18 prize paid on each winning ticket;
3-19 (4) the frequency of the drawing or selection of a
3-20 winning ticket;
3-21 (5) the number and types of locations at which a
3-22 ticket may be sold;
3-23 (6) the method to be used in selling a ticket;
3-24 (7) the use of vending machines, video lottery game
3-25 machines, or electronic or mechanical devices of any kind, other
3-26 than machines or devices that dispense currency or coins as prizes;
3-27 (8) the manner of paying a prize to the holder of a
4-1 winning ticket;
4-2 (9) the investigation of possible violations of this
4-3 Act or any rule adopted under this Act;
4-4 (10) the means of advertising to be used for the
4-5 lottery;
4-6 (11) the qualifications of vendors of lottery services
4-7 or equipment;
4-8 (12) the confidentiality of information relating to
4-9 the operation of the lottery, including:
4-10 (A) trade secrets;
4-11 (B) security measures, systems, or procedures;
4-12 (C) security reports;
4-13 (D) bids or other information regarding the
4-14 division's contracts, if disclosure of the information would impair
4-15 the division's ability to contract for facilities, goods, or
4-16 services on terms favorable to the division;
4-17 (E) personnel information unrelated to
4-18 compensation, duties, qualifications, or responsibilities; and
4-19 (F) information obtained by division security
4-20 officers or investigators;
4-21 (13) the development and availability of a model
4-22 agreement governing the division of a prize among multiple
4-23 purchasers of a winning ticket purchased through a group purchase
4-24 or pooling arrangement;
4-25 (14) the criteria to be used in evaluating bids for
4-26 contracts for lottery facilities, goods, and services; or
4-27 (15) any other matter necessary or desirable as
5-1 determined by the comptroller, to promote and ensure:
5-2 (A) the integrity, security, honesty, and
5-3 fairness of the operation and administration of the lottery; and
5-4 (B) the convenience of players and holders of
5-5 winning tickets.
5-6 SECTION 5. Section 3.01(d), State Lottery Act (Article 179g,
5-7 Vernon's Texas Civil Statutes), is amended to read as follows:
5-8 (d) A separate license is required for each location at
5-9 which tickets are to be sold or video lottery game machines are to
5-10 be installed. A person who desires to operate more than one
5-11 location to sell tickets or operate video lottery game machines
5-12 must submit a separate application for each location.
5-13 SECTION 6. Article 3, State Lottery Act (Article 179g,
5-14 Vernon's Texas Civil Statutes), is amended by adding Section 3.011
5-15 to read as follows:
5-16 Sec. 3.011. VIDEO LOTTERY GAME LICENSING. (a) Video
5-17 lottery machine manufacturer, distributor, operator and
5-18 establishment licenses required -- Fees. Each video lottery
5-19 machine manufacturer, distributor, operator and licensed
5-20 establishment shall be licensed by the executive director before
5-21 any video lottery machine or associated equipment is manufactured,
5-22 distributed, sold or placed for public use in this state.
5-23 (b) General Qualifications To be selected as a video lottery
5-24 machine operator, a natural person acting as a sole proprietor
5-25 shall:
5-26 (1) Be at least twenty-one years of age;
5-27 (2) Be of good character and reputation in the
6-1 community;
6-2 (3) Have sufficient financial resources to support the
6-3 activities required to place and service video lottery machines;
6-4 and
6-5 (4) Be current in payment of all taxes, interest and
6-6 penalties owed to the state of Texas excluding items under formal
6-7 dispute or appeal pursuant to applicable statutes.
6-8 (B) Persons ineligible for licensing: No
6-9 natural person may be selected as a video lottery machine operator,
6-10 who:
6-11 (1) Has been convicted of a felony in this or any
6-12 other jurisdiction, unless at least ten years have passed since
6-13 satisfactory completion of the sentence or probation imposed by the
6-14 court in each such felony;
6-15 (2) Has been found to have violated the provisions of
6-16 this chapter or any rule adopted pursuant to this chapter;
6-17 (3) Is a lottery vendor or an employee or agent of any
6-18 lottery vendor doing business with the Texas lottery;
6-19 (4) Is a member of the immediate family of an employee
6-20 of the Texas lottery or of a member of the lottery commission; or
6-21 (5) Has knowingly made a false statement of material
6-22 fact to the Texas lottery.
6-23 (C) Partnership as a video lottery machine
6-24 operator. For a partnership to be selected as a video lottery
6-25 machine operator, the partnership shall meet the requirements of
6-26 subdivisions (3) and (4) of Sec. 3.011(b) and each partner thereof
6-27 shall meet the requirements of subdivisions (1) and (2) of Section
7-1 3.011(b) and subdivisions (1) through (5) of Sec. B.0111(c).
7-2 (D) Associations or Corporations as Video
7-3 Machine Operators. For an association or corporation to be
7-4 licensed as a video lottery machine operator, the association or
7-5 corporation shall meet the requirements of subdivisions (3) and (4)
7-6 of Sec. 3.011(b) and each officer and director and each stockholder
7-7 who owns ten percent or more of the stock of such corporation or
7-8 association shall meet the requirements of subdivisions (1) and (2)
7-9 of Sec. 3.011(b) and subdivisions (1) through (5) of Sec. 3.011 of
7-10 the Act.
7-11 (E) A manufacturer cannot be licensed as an
7-12 operator.
7-13 (F) Fees The commission may establish an annual
7-14 fee for each license not to exceed the following:
7-15 (1) Video lottery machine distributor - $5,000.00
7-16 (2) Video lottery machine operator - $2,500.00 or
7-17 $100.00 per machine licensed whichever is greater.
7-18 SECTION 7. Sections 3.02(a) and (i), State Lottery Act
7-19 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
7-20 as follows:
7-21 (a) After a hearing, the director shall deny an application
7-22 for a license or the comptroller shall suspend or revoke a license
7-23 if the director or comptroller, as applicable, finds that the
7-24 applicant or sales agent:
7-25 (1) is an individual who:
7-26 (A) has been convicted of a felony, criminal
7-27 fraud, gambling or a gambling-related offense, or a misdemeanor
8-1 involving moral turpitude, if less than 10 years has elapsed since
8-2 the termination of the sentence, parole, mandatory supervision, or
8-3 probation served for the offense;
8-4 (B) is or has been a professional gambler; or
8-5 (C) is married to or related in the first degree
8-6 of consanguinity or affinity to an individual:
8-7 (i) described in Paragraph (A) or (B) of
8-8 this subdivision; or
8-9 (ii) who is currently delinquent in the
8-10 payment of any state tax;
8-11 (2) is not an individual, and an individual described
8-12 in Subdivision (1) of this subsection:
8-13 (A) is an officer or director of the applicant
8-14 or sales agent;
8-15 (B) holds more than 10 percent of the stock in
8-16 the applicant or sales agent;
8-17 (C) holds an equitable interest greater than 10
8-18 percent in the applicant or sales agent;
8-19 (D) is a creditor of the applicant or sales
8-20 agent who holds more than 10 percent of the applicant's or sales
8-21 agent's outstanding debt;
8-22 (E) is the owner or lessee of a business that
8-23 the applicant or sales agent conducts or through which the
8-24 applicant will conduct a ticket sales agency;
8-25 (F) shares or will share in the profits, other
8-26 than stock dividends, of the applicant or sales agent;
8-27 (G) participates in managing the affairs of the
9-1 applicant or sales agent; or
9-2 (H) is an employee of the applicant or sales
9-3 agent who is or will be involved in:
9-4 (i) selling tickets; or
9-5 (ii) handling money from the sale of
9-6 tickets;
9-7 (3) is currently delinquent in the payment of any
9-8 state tax;
9-9 (4) is a person whose location for the sales agency
9-10 is:
9-11 (A) a racetrack at which wagering is authorized
9-12 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
9-13 Statutes), except as provided by Section 3.011 of this Act;
9-14 (B) a location licensed for games of bingo under
9-15 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
9-16 Statutes);
9-17 (C) on land that is owned by:
9-18 (i) this state; or
9-19 (ii) a political subdivision of this
9-20 state, other than land used as a mass transportation facility that
9-21 is used by commercial carriers; or
9-22 (D) a location for which a person holds a wine
9-23 and beer retailer's permit, mixed beverage permit, mixed beverage
9-24 late hours permit, private club registration permit, or private
9-25 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
9-26 Alcoholic Beverage Code, unless the applicant is a location to
9-27 exhibit for play video lottery machines only;
10-1 (5) has violated this Act or a rule adopted under this
10-2 Act.
10-3 (i) The director shall not issue a license <to sell lottery
10-4 tickets> to applicants who fail to certify to the director the
10-5 applicant's compliance with the federal Americans With Disabilities
10-6 Act.
10-7 SECTION 8. Section 4.01, State Lottery Act (Article 179g,
10-8 Vernon's Texas Civil Statutes), is amended to read as follows:
10-9 Sec. 4.01. TICKETS AND VOUCHERS. (a) The director shall
10-10 prescribe the form of tickets and video lottery game vouchers. The
10-11 toll-free "800" telephone number established by the Texas
10-12 Commission on Alcohol and Drug Abuse under Section 461.018, Health
10-13 and Safety Code, must be printed on each ticket and on each
10-14 voucher. The overall estimated odds of winning a prize in a given
10-15 game or activity must be printed on each ticket, but not on a
10-16 voucher, and prominently displayed in association with the sale of
10-17 lottery products. The estimate must be based on reasonable
10-18 projections and past experience.
10-19 (b) By purchasing a ticket in a particular lottery game or
10-20 activity or operating a video lottery game machine, a player agrees
10-21 to abide by and be bound by the division's rules, including the
10-22 rules applicable to the particular lottery game or activity
10-23 involved. The player also acknowledges that the determination of
10-24 whether the player is a valid winner is subject to the division's
10-25 rules and claims procedures, including those developed for the
10-26 particular lottery game or activity involved, and subject to any
10-27 validation tests established by the division for the particular
11-1 lottery game or activity involved. If the lottery uses tickets, an
11-2 abbreviated form of the rules or a reference to the rules may
11-3 appear on the tickets.
11-4 SECTION 9. Article 4, State Lottery Act (Article 179g,
11-5 Vernon's Texas Civil Statutes), is amended by adding Section 4.011
11-6 to read as follows:
11-7 Sec. 4.011. VIDEO LOTTERY GAME REGULATIONS. (a) A video
11-8 lottery game machine may not:
11-9 (1) award free games in lieu of credits; or
11-10 (2) directly dispense coins, cash, tokens, or anything
11-11 else of value, except the voucher required by Section 5.031 of this
11-12 Act.
11-13 (b) A location holding a video lottery game license is
11-14 entitled to offer for play at the location no more than four video
11-15 lottery game machines. Video lottery games may be offered for play
11-16 during all normal and legal business hours of the location.
11-17 (c) Video lottery games may be placed in premises licensed
11-18 or permitted for on premise sale of alcholoic beverages and in
11-19 other locations where access to the machines is prohibited and
11-20 prevented for persons under 18 years of age.
11-21 (d) Requirements for licensed video lottery machines. Each
11-22 video lottery machine licensed under this chapter:
11-23 (1) Shall offer only games licensed by the Texas
11-24 lottery and authorized by the commission;
11-25 (2) May not have any means of manipulation that affect
11-26 the random probabilities of winning a video lottery game;
11-27 (3) Shall have one or more mechanisms that accept
12-1 coins or cash in the form of bills. The mechanisms shall be
12-2 designed to prevent obtaining credits without paying by stringing,
12-3 slamming, drilling or other means. If such attempts involve
12-4 physical tampering, the machine shall suspend itself from operation
12-5 until reset;
12-6 (4) Shall have nonresettable meters housed in any
12-7 readily accessible locked machine area that keep a permanent record
12-8 of all cash inserted into the machine, all refunds of winnings made
12-9 by the machines's printer, credits played for video lottery games
12-10 and credits won by video lottery players;
12-11 (5) Shall be capable of printing a ticket voucher
12-12 stating the value of the prize for the player at the completion of
12-13 each video lottery game; the time of the day in a twenty-four hour
12-14 format showing hours and minutes; the date; the machine serial
12-15 number; the sequential number of the ticket vouchers; and an
12-16 encrypted validation number from which the validity of the prize
12-17 may be determined;
12-18 (6) Shall have accounting software that keeps an
12-19 electronic record which includes, but is not limited to the
12-20 following: total cash inserted into the machine; the value of
12-21 winning tickets claimed by players; the total video lottery credits
12-22 played and the total video lottery credits awarded by a video
12-23 lottery game; and the payback percentage credited players of each
12-24 video lottery game;
12-25 (7) Shall be linked under a central communications
12-26 system to provide auditing program information as approved by the
12-27 commission. In no event may the communications system approved by
13-1 the commission limit participation to only one manufacturer of
13-2 video lottery machines by either the cost in implementing the
13-3 necessary program modifications to communicate or the inability to
13-4 communicate with the central communications system.
13-5 (E) Limit on amount played and awards given. A
13-6 video lottery machine may not allow more than two dollars to be
13-7 played on a game or award free games or credits in excess of the
13-8 value of one hundred twenty-five dollars per credit value of
13-9 twenty-five cents played. The payback value of one credit shall be
13-10 at least eighty percent of the value of the credit.
13-11 (F) Display of license for video lottery
13-12 machine -- Confiscation -- Violation. Each video lottery machine
13-13 shall be licensed by the director before placement or operation on
13-14 the premises of a licensed establishment. Each machine shall have
13-15 the license prominently displayed thereon. Any machine which does
13-16 not display the license required by this section is contraband and
13-17 a public nuisance subject to confiscation by any law enforcement
13-18 officer. A violation of this section is a Class A misdemeanor.
13-19 (G) Examination of video lottery
13-20 machines -- Costs paid by manufacturer -- Contract for examination.
13-21 The Texas lottery shall examine prototypes of video lottery
13-22 machines and associated equipment of manufacturers seeking a
13-23 license as required in this chapter. The Texas lottery shall
13-24 require the manufacturer seeking the examination and approval of a
13-25 video lottery machine or associated equipment to pay the
13-26 anticipated actual costs of the examination in advance and, after
13-27 the completion of the examination, shall refund overpayments or
14-1 charge and collect amounts sufficient to reimburse the Texas
14-2 lottery for underpayments of actual costs. The Texas lottery may
14-3 contract for the examination of video lottery machines and
14-4 associated equipment as required by this section.
14-5 (H) The Commission shall promulgate rules to
14-6 carry out the statutory purposes. These rules shall cover but not
14-7 be limited to the following:
14-8 (1) The mechanical and electronic specifications for
14-9 each video lottery machine.
14-10 (2) Machine security testing and inspection
14-11 procedures:
14-12 (3) Liability for machine malfunction:
14-13 (4) Machine maintenance and repair;
14-14 (5) Financial responsibility of persons licensed under
14-15 this chapter;
14-16 (6) Accounting procedures for net machine income;
14-17 (7) Licensing procedures under this chapter;
14-18 (8) The formula to determine the state's percentage of
14-19 net machine income based on varying revenue schedules; and
14-20 (9) Such other matters necessary or desirable for the
14-21 efficient or economical operation of the lottery or for the
14-22 convenience of the public.
14-23 SECTION 10. Sections 4.02(b), (c), (d), (g), (h), and (i),
14-24 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
14-25 are amended to read as follows:
14-26 (b) Except as provided by this subsection, a person who is
14-27 not a sales agent or an employee of a sales agent commits an
15-1 offense if the person intentionally or knowingly sells a ticket or
15-2 offers a video lottery game machine for play. An offense under
15-3 this subsection is a felony of the third degree. A lottery
15-4 operator may sell tickets to a licensed sales agent. A person who
15-5 is not a sales agent may distribute tickets as premiums to
15-6 customers, employees, or other persons who deal with the person if
15-7 no purchase or service is required to entitle the recipient to the
15-8 ticket.
15-9 (c) A person commits an offense if the person sells a ticket
15-10 at a location other than the location of a sales agency or offers a
15-11 video lottery game machine for play at a location other than the
15-12 licensed location. An offense under this subsection is a Class A
15-13 misdemeanor.
15-14 (d) A sales agent or an employee of a sales agent may not
15-15 intentionally or knowingly sell or offer to sell a ticket to an
15-16 individual or allow an individual to play a video lottery game if
15-17 <that> the person knows that the individual is younger than 18
15-18 years of age.
15-19 (g) A sales agent or an employee of a sales agent commits an
15-20 offense if the person intentionally or knowingly sells a ticket to
15-21 another person or allows another person to play a video lottery
15-22 game by extending credit or lending money to the person to enable
15-23 the person to purchase the ticket or play the game. An offense
15-24 under this subsection is a Class C misdemeanor.
15-25 (h) A person may not purchase a ticket or play a video
15-26 lottery game:
15-27 (1) with a food stamp coupon issued under the food
16-1 stamp program administered under Chapter 33, Human Resources Code;
16-2 (2) with a credit card or a debit card;
16-3 (3) over the telephone; or
16-4 (4) by mail-order sales.
16-5 (i) A person may not pay for a ticket or play a video
16-6 lottery game with the proceeds of a check issued as a payment under
16-7 the Aid to Families with Dependent Children program administered
16-8 under Chapter 31, Human Resources Code.
16-9 SECTION 11. Section 4.03(e), State Lottery Act (Article
16-10 179g, Vernon's Texas Civil Statutes), is amended to read as
16-11 follows:
16-12 (e) A person commits an offense if the person intentionally
16-13 or knowingly tampers with, damages, defaces, or renders inoperable
16-14 any vending machine, electronic computer terminal, video lottery
16-15 game machine, or other mechanical device used in a lottery game.
16-16 An offense under this subsection is a felony of the third degree.
16-17 SECTION 12. Sections 5.01(a), (b), (d), (e), (f), and (g),
16-18 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
16-19 are amended to read as follows:
16-20 (a) Except as provided by Subsection (e) of this section,
16-21 all revenue received from the sale of tickets, all revenue received
16-22 from video lottery games, and all money credited to the state
16-23 lottery account from any other source shall be deposited in the
16-24 state treasury through approved state depositories on the
16-25 settlement day or days established by the director.
16-26 (b) The director may require sales agents to establish
16-27 separate electronic funds transfer accounts for the purposes of
17-1 depositing money from ticket sales and video lottery games, making
17-2 payments to the division, and receiving payments from the division.
17-3 The comptroller by rule shall establish the procedures for
17-4 depositing money from ticket sales and video lottery games into
17-5 electronic funds transfer accounts, as well as other procedures
17-6 regarding the handling of money from ticket sales and video lottery
17-7 games. The director may not permit a sales agent to make payments
17-8 to the division or a lottery operator in cash.
17-9 (d) The director may require a sales agent to file with the
17-10 division reports of receipts and transactions relating to the sale
17-11 of tickets or the operation of video lottery game machines in the
17-12 form and containing the information that the director requires.
17-13 Each sales agent shall maintain records adequate to establish the
17-14 disposition of each ticket provided to the sales agent, the amounts
17-15 of money received for the sale of those tickets or the operation of
17-16 video lottery game machines, and any prizes awarded by the sales
17-17 agent.
17-18 (e) The director may provide for a sales agent to retain
17-19 from the money received from the sale of tickets or the operation
17-20 of video lottery game machines the amount of prizes paid by the
17-21 agent, <or> the agent's commission, if any, or amounts not
17-22 allocated to the state under Section 5.021 of this Act, and may
17-23 establish how often the agent will make settlement payments to the
17-24 treasury.
17-25 (f) The director may provide for a sales agent to pay
17-26 amounts received for the sale of tickets or the operation of video
17-27 lottery game machines directly to an officer or employee of the
18-1 division for immediate deposit in the state treasury.
18-2 (g) A sales agent is liable to the division for all tickets
18-3 accepted or generated by the sales agent or any employee or agent
18-4 of the sales agent, and tickets shall be deemed to have been
18-5 purchased by the sales agent unless returned to the division within
18-6 the time and manner prescribed by the division. Money received by
18-7 a sales agent from the sales of tickets or the operation of video
18-8 lottery game machines, less the amount retained for prizes paid by
18-9 the sales agent, <or> for the agent's commission, if any, or for
18-10 amounts not allocated to the state under Section 5.021 of this Act,
18-11 together with any unsold tickets, shall be held in trust for the
18-12 benefit of the state before delivery to a lottery operator or the
18-13 division or electronic transfer to the state treasury, and the
18-14 sales agent is liable to the division for the full amount of the
18-15 money or unsold tickets so held. If the sales agent is not an
18-16 individual, each officer, director, or owner of the sales agent is
18-17 personally liable to the division for the full amount of the money
18-18 or unsold tickets held in trust for the benefit of the state.
18-19 SECTION 13. Section 5.02(a), State Lottery Act (Article
18-20 179g, Vernon's Texas Civil Statutes), is amended to read as
18-21 follows:
18-22 (a) A special account in the general revenue fund to be
18-23 known as the state lottery account is established. The account
18-24 consists of all revenue received from the sale of tickets, all
18-25 revenue received from video lottery games, license and application
18-26 fees under this Act, and all money credited to the account from any
18-27 other fund or source under law. Interest earned by the state
19-1 lottery account shall be deposited in the unobligated portion of
19-2 the general revenue fund.
19-3 SECTION 14. Article 5, State Lottery Act (Article 179g,
19-4 Vernon's Texas Civil Statutes), is amended by adding Section 5.021
19-5 to read as follows:
19-6 Sec. 5.021. ALLOCATION OF VIDEO LOTTERY GAME REVENUE. (a)
19-7 Revenue derived from video lottery games, after payment of prizes,
19-8 shall be allocated as follows:
19-9 (1) 26 percent to the state lottery account;
19-10 (2) 35 percent to the licensed location at which the
19-11 video lottery games were offered for play;
19-12 (3) 35 percent to the licensed operator providing the
19-13 video lottery game machines and associated communication system to
19-14 the location;
19-15 (4) 2 percent to the county in which the location is
19-16 located; and
19-17 (5) 2 percent to;
19-18 (A) the municipality in which the location is
19-19 located; or
19-20 (B) the county in which the location is located,
19-21 in addition to the amount allocated under Subdivision (4) of this
19-22 subsection, if the location is not located in a municipality.
19-23 SECTION 15. Article 5, State Lottery Act (Article 179g,
19-24 Vernon's Texas Civil Statutes), is amended by adding Section 5.031
19-25 to read as follows:
19-26 Sec. 5.031. VIDEO LOTTERY GAME PRIZE PAYMENTS; PAYBACK
19-27 PERCENTAGE. (a) A location that holds a license under Section
20-1 3.011 of this Act shall pay in cash all credits owed to a player as
20-2 shown on a valid video lottery game voucher.
20-3 (b) A video lottery game machine must be capable of printing
20-4 a voucher showing any credits owed to a winning player at the
20-5 completion of each game.
20-6 (c) For each video lottery game machine, the comptroller
20-7 shall prescribe a reasonable return to winning players that is not
20-8 less than 70 percent of the value spent by players on that machine.
20-9 (d) Each video lottery game machine must have an electronic
20-10 accounting device that may be used to verify the winning
20-11 percentage.
20-12 SECTION 16. Section 5.07, State Lottery Act (Article 179g,
20-13 Vernon's Texas Civil Statutes), is amended to read as follows:
20-14 Sec. 5.07. EXEMPTION FROM TAXATION. (a) A political
20-15 subdivision of this state may not impose:
20-16 (1) a tax on the sale of a ticket or on a game played
20-17 on a video lottery game machine;
20-18 (2) a tax on the payment of a prize under this Act; or
20-19 (3) an ad valorem tax on tickets or on a game played
20-20 on a video lottery game machine.
20-21 (b) The receipts from the sale, use, or other consumption of
20-22 a ticket or the receipts from a video lottery game machine are
20-23 exempt from taxation under Chapter 151, Tax Code.
20-24 SECTION 17. Section 2.02(k), State Lottery Act (Article
20-25 179g, Vernon's Texas Civil Statutes), is repealed.
20-26 SECTION 18. The importance of this legislation and the
20-27 crowded condition of the calendars in both houses create an
21-1 emergency and an imperative public necessity that the
21-2 constitutional rule requiring bills to be read on three several
21-3 days in each house be suspended, and this rule is hereby suspended,
21-4 and that this Act take effect and be in force from and after its
21-5 passage, and it is so enacted.