By: Harris, Ike S.B. No. 550
73R4202 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment and operation of the Texas Gaming
1-3 Commission, the regulation of bingo, and the operation of the state
1-4 lottery; providing penalties; imposing taxes.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle E, Title 4, Government Code, is amended
1-7 by adding Chapter 467 to read as follows:
1-8 CHAPTER 467. TEXAS GAMING COMMISSION
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 467.001. DEFINITIONS. In this chapter:
1-11 (1) "Commission" means the Texas Gaming Commission.
1-12 (2) "Executive director" means the executive director
1-13 of the Texas Gaming Commission.
1-14 Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
1-15 subject to Chapter 325 (Texas Sunset Act). Unless continued in
1-16 existence as provided by that chapter, the commission is abolished
1-17 and this Act expires September 1, 2003.
1-18 (Sections 467.003-467.020 reserved for expansion
1-19 SUBCHAPTER B. COMMISSION
1-20 Sec. 467.021. MEMBERSHIP. (a) The commission is composed
1-21 of three members appointed by the governor with the advice and
1-22 consent of the senate.
1-23 (b) In making appointments to the commission, the governor
1-24 shall strive to achieve representation by all the population groups
2-1 of the state with regard to economic status, sex, race, and
2-2 ethnicity.
2-3 (c) One member must have experience in the bingo industry.
2-4 Sec. 467.022. TERM OF OFFICE. Members hold office for
2-5 staggered terms of six years with one member's term expiring
2-6 February 1 of each odd-numbered year.
2-7 Sec. 467.023. RESIDENCE REQUIREMENT. An individual is not
2-8 eligible to be a member of the commission unless the individual has
2-9 been a resident of this state for at least 10 consecutive years
2-10 immediately before appointment.
2-11 Sec. 467.024. ELIGIBILITY. (a) An individual is not
2-12 eligible to be an appointed member of the commission if the
2-13 individual:
2-14 (1) owns or controls, directly or indirectly, more
2-15 than a 10 percent interest in a business entity or other
2-16 organization regulated by the commission or receiving funds from
2-17 the commission;
2-18 (2) is employed by or participates in the management
2-19 of a business entity or other organization regulated by the
2-20 commission or receiving funds from the commission;
2-21 (3) uses or receives a substantial amount of tangible
2-22 goods, services, or funds from the commission, other than
2-23 compensation or reimbursement authorized by law for commission
2-24 membership, attendance, or expenses;
2-25 (4) is an officer, employee, or paid consultant of a
2-26 Texas trade association in the field of bingo or lottery;
2-27 (5) is required to register as a lobbyist under
3-1 Chapter 305 because of the person's activities for compensation on
3-2 behalf of a profession related to the operation of the commission;
3-3 (6) is married to an individual described by
3-4 Subdivision (1)-(5);
3-5 (7) has been convicted of a felony or of any crime
3-6 involving moral turpitude; or
3-7 (8) is not a citizen of the United States.
3-8 (b) In this section, "Texas trade association" means a
3-9 nonprofit, cooperative, and voluntarily joined association of
3-10 business or professional competitors in this state designed to
3-11 assist its members and its industry or profession in dealing with
3-12 mutual business or professional problems and in promoting their
3-13 common interest.
3-14 Sec. 467.025. PROHIBITED CONDUCT. (a) A commission member
3-15 may not:
3-16 (1) accept any employment or remuneration from:
3-17 (A) a person that has a significant financial
3-18 interest in the lottery; or
3-19 (B) a bingo commercial lessor, bingo
3-20 distributor, or bingo manufacturer;
3-21 (2) play any lottery or bingo game conducted in this
3-22 state;
3-23 (3) accept or be entitled to accept any part of the
3-24 winnings to be paid from a lottery or bingo game conducted in this
3-25 state;
3-26 (4) use the member's official authority to affect the
3-27 result of an election or nomination for public office; or
4-1 (5) directly or indirectly coerce, attempt to coerce,
4-2 command, or advise a person to pay, lend, or contribute anything of
4-3 value to another person for political purposes.
4-4 (b) A commission member or former commission member or the
4-5 spouse of a commission member or former commission member may not
4-6 solicit or accept employment from a person regulated by the
4-7 commission before the second anniversary of the date on which the
4-8 commission member's service on the commission ends.
4-9 (c) In this section, "person that has a significant
4-10 financial interest in the lottery" has the meaning assigned by
4-11 Section 4.06, State Lottery Act (Article 179g, Vernon's Texas Civil
4-12 Statutes).
4-13 Sec. 467.026. REMOVAL OF COMMISSION MEMBER. (a) The
4-14 governor may remove a commission member if the member:
4-15 (1) does not have at the time of appointment the
4-16 qualifications required for appointment to the commission;
4-17 (2) does not maintain during service on the commission
4-18 the qualifications required for appointment to the commission;
4-19 (3) violates a prohibition established by Section
4-20 467.025;
4-21 (4) cannot discharge the member's duties for a
4-22 substantial part of the term for which the member is appointed
4-23 because of illness or disability; or
4-24 (5) is absent from more than half of the regularly
4-25 scheduled commission meetings that the member is eligible to attend
4-26 during a calendar year unless the absence is excused by majority
4-27 vote of the commission.
5-1 (b) The validity of an action of the commission is not
5-2 affected by the fact that it is taken when a ground for removal of
5-3 a commission member exists.
5-4 (c) If the presiding officer has knowledge that a potential
5-5 ground for removal exists, the presiding officer shall notify the
5-6 governor.
5-7 Sec. 467.027. COMPENSATION AND EXPENSES. (a) A commission
5-8 member is not entitled to compensation for serving on the
5-9 commission.
5-10 (b) A commission member is entitled to reimbursement for
5-11 actual and necessary expenses incurred in performing the member's
5-12 duties, subject to any applicable limitation in the General
5-13 Appropriations Act.
5-14 Sec. 467.028. OFFICES. The commission shall maintain its
5-15 general office in the city of Austin. The commission may also
5-16 establish branch offices.
5-17 Sec. 467.029. PRESIDING OFFICER. The governor shall
5-18 designate one member of the commission as presiding officer of the
5-19 commission to serve in that capacity at the pleasure of the
5-20 governor.
5-21 Sec. 467.030. MEETINGS. The commission shall hold at least
5-22 six regular meetings each year on dates fixed by the commission.
5-23 The commission may meet at other times at the call of the presiding
5-24 officer or as provided by commission rule.
5-25 Sec. 467.031. DIVISIONS. The commission shall establish
5-26 separate divisions to oversee bingo and the state lottery.
5-27 Sec. 467.032. EXECUTIVE DIRECTOR. (a) The commission shall
6-1 employ an executive director to administer this chapter.
6-2 (b) The executive director holds office at the will of the
6-3 commission and is specifically exempted from the Position
6-4 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
6-5 Statutes).
6-6 Sec. 467.033. DIVISION DIRECTORS. The executive director
6-7 shall employ a director to oversee each division. A division
6-8 director serves at the will of the executive director.
6-9 Sec. 467.034. EMPLOYEES. The executive director shall
6-10 employ other personnel necessary to administer the laws under the
6-11 commission's jurisdiction. Commission employees serve at the will
6-12 of the executive director.
6-13 Sec. 467.035. RESTRICTIONS ON EMPLOYMENT. (a) The
6-14 commission may not employ or continue to employ a person who owns a
6-15 financial interest in:
6-16 (1) a bingo commercial lessor, bingo distributor, or
6-17 bingo manufacturer; or
6-18 (2) a lottery sales agency or a lottery operator.
6-19 (b) The commission may not employ or continue to employ a
6-20 person related within the second degree by affinity or third degree
6-21 by consanguinity, as determined under Article 5996h, Revised
6-22 Statutes, to a person who is subject to a disqualification
6-23 prescribed by Subsection (a).
6-24 (c) In employing the executive director and other employees,
6-25 the commission shall strive to reflect the diversity of the
6-26 population of the state as regards race, color, handicap, sex,
6-27 religion, age, and national origin.
7-1 Sec. 467.036. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
7-2 governor shall conduct an investigation of and is entitled to
7-3 obtain criminal history record information maintained by the
7-4 Department of Public Safety, the Federal Bureau of Investigation
7-5 Identification Division, or another law enforcement agency relating
7-6 to an individual the governor intends to appoint to the commission.
7-7 (b) The commission shall conduct an investigation of and is
7-8 entitled to obtain criminal history record information maintained
7-9 by the Department of Public Safety, the Federal Bureau of
7-10 Investigation Identification Division, or another law enforcement
7-11 agency relating to an individual the commission intends to employ.
7-12 (Sections 467.037-467.100 reserved for expansion
7-13 SUBCHAPTER C. POWERS AND DUTIES
7-14 Sec. 467.101. POWERS AND DUTIES OF COMMISSION. (a) The
7-15 commission has broad authority and shall exercise strict control
7-16 and close supervision over all activities authorized and conducted
7-17 in this state under:
7-18 (1) the Bingo Enabling Act (Article 179d, Vernon's
7-19 Texas Civil Statutes); and
7-20 (2) the State Lottery Act (Article 179g, Vernon's
7-21 Texas Civil Statutes).
7-22 (b) The commission shall ensure that games are conducted
7-23 fairly and in compliance with the law.
7-24 (c) The commission also has the powers and duties granted
7-25 under:
7-26 (1) the Bingo Enabling Act (Article 179d, Vernon's
7-27 Texas Civil Statutes); and
8-1 (2) the State Lottery Act (Article 179g, Vernon's
8-2 Texas Civil Statutes).
8-3 Sec. 467.102. RULES. The commission may adopt rules for the
8-4 enforcement and administration of this chapter and the laws under
8-5 the commission's jurisdiction.
8-6 Sec. 467.103. DUTIES OF EXECUTIVE DIRECTOR. (a) The
8-7 executive director shall perform all duties required by the
8-8 commission to administer this chapter and the laws under the
8-9 commission's jurisdiction. The executive director may not hold
8-10 other employment.
8-11 (b) The executive director may create, abolish, transfer,
8-12 and consolidate bureaus and other units that are part of the
8-13 commission and that are not expressly established by law as the
8-14 executive director determines to be necessary for the efficient
8-15 operation of the commission.
8-16 Sec. 467.104. RECORDS. (a) All commission records that are
8-17 not made confidential by other law are open to inspection by the
8-18 public during regular office hours.
8-19 (b) The executive director shall keep the records of the
8-20 commission.
8-21 Sec. 467.105. LEGAL REPRESENTATION. (a) The attorney
8-22 general shall designate at least one member of the attorney
8-23 general's staff to counsel and advise the commission and to
8-24 represent the commission in legal proceedings. The attorney
8-25 general shall make available to the appropriate prosecuting
8-26 attorneys any information obtained regarding a violation of a law
8-27 under the commission's jurisdiction.
9-1 (b) The attorney general may apply for injunctive or
9-2 declaratory relief to enforce a law under the commission's
9-3 jurisdiction or a rule adopted by the commission. Action by the
9-4 attorney general under this subsection does not limit the authority
9-5 of the attorney general or a prosecuting attorney to bring a
9-6 criminal proceeding.
9-7 Sec. 467.106. ADMINISTRATIVE HEARINGS. An administrative
9-8 hearing on a matter within the commission's jurisdiction shall be
9-9 before an administrative law judge of the State Office of
9-10 Administrative Hearings as provided in Chapter 591, Acts of the
9-11 72nd Legislature, Regular Session, 1991 (Article 6252-13f, Vernon's
9-12 Texas Civil Statutes). The commission may review the decision of
9-13 an administrative law judge as provided by the Administrative
9-14 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
9-15 Civil Statutes).
9-16 SECTION 2. Section 2(10), Bingo Enabling Act (Article 179d,
9-17 Vernon's Texas Civil Statutes), is amended to read as follows:
9-18 (10) "Net proceeds" means:
9-19 (A) in relation to the gross receipts from one
9-20 or more occasions of bingo, the amount that remains after deducting
9-21 the reasonable sums necessarily and actually expended for
9-22 advertising, security, repairs to premises and equipment, bingo
9-23 supplies and equipment, prizes, stated rental, or mortgage and
9-24 insurance expenses, if any, bookkeeping or accounting services,
9-25 fees for personnel as permitted under Subsection (c) of Section 19
9-26 of this Act, janitorial services and utility supplies and services,
9-27 if any, license fees, and the fee on prizes imposed by Section 19b
10-1 of this Act <gross receipts tax>; and
10-2 (B) in relation to the gross rent or other
10-3 consideration received by an organization licensed to conduct bingo
10-4 for the use of its premises, fixtures, or equipment by another
10-5 licensee, the amount that remains after deducting the reasonable
10-6 sums necessarily and actually expended for janitorial services and
10-7 utility supplies directly attributable to the use of the premises,
10-8 fixtures, or equipment, if any.
10-9 SECTION 3. Section 2(20), Bingo Enabling Act (Article 179d,
10-10 Vernon's Texas Civil Statutes), is amended to read as follows:
10-11 (20) "Commission" means the Texas Gaming <Alcoholic
10-12 Beverage> Commission.
10-13 SECTION 4. Section 11(f), Bingo Enabling Act (Article 179d,
10-14 Vernon's Texas Civil Statutes), is amended to read as follows:
10-15 (f) A series of prizes offered or awarded on any one bingo
10-16 occasion for bingo games other than instant bingo may not aggregate
10-17 more than $2,500. <A series of prizes offered or awarded on any
10-18 one bingo occasion for games of instant bingo may not aggregate
10-19 more than $1,500.>
10-20 SECTION 5. Section 12(d), Bingo Enabling Act (Article 179d,
10-21 Vernon's Texas Civil Statutes), is amended to read as follows:
10-22 (d) An authorized organization may receive a temporary
10-23 license for the conduct of bingo games on filing with the
10-24 commission an application, on a form prescribed by the commission,
10-25 accompanied by a $25 license fee. A temporary license is valid for
10-26 four hours during any one day. An organization may receive no more
10-27 than six temporary licenses in a calendar year. An organization
11-1 operating under a temporary license is subject to the taxes and
11-2 fees <gross receipts tax authorized or> imposed by this Act and the
11-3 other provisions of this Act to the extent they can be made
11-4 applicable.
11-5 SECTION 6. Section 13(c), Bingo Enabling Act (Article 179d,
11-6 Vernon's Texas Civil Statutes), is amended to read as follows:
11-7 (c) The commission shall issue to an applicant a license for
11-8 the conduct of bingo, or a license renewal, on payment of a license
11-9 fee in accordance with Subdivision (1) of Subsection (d) of this
11-10 section, if the commission determines that:
11-11 (1) the member or members of the applicant designated
11-12 in the application to conduct bingo are active members of the
11-13 applicant;
11-14 (2) no person under whose name the game or games of
11-15 bingo will be conducted, and no person who will work at the
11-16 proposed bingo games, has been convicted of a felony, gambling
11-17 offense, criminal fraud, or a crime of moral turpitude for which
11-18 less than 10 years have elapsed since termination of any sentence,
11-19 parole, mandatory supervision, or probation served for the offense;
11-20 (3) the games are to be conducted in accordance with
11-21 this Act;
11-22 (4) the proceeds of the games are to be disposed of as
11-23 provided by this Act;
11-24 (5) <no prize will be offered or given in excess of
11-25 the limits set by Section 11(e) of this Act in any single game and
11-26 that the aggregate of all prizes offered and given in all of the
11-27 games conducted on a single occasion under the license will not
12-1 exceed the limits set by Section 11(f) of this Act;>
12-2 <(6)> the applicant has made and can demonstrate
12-3 significant progress toward the accomplishment of the purposes of
12-4 the organization during the 12-month period preceding the date of
12-5 application for a license or license renewal; and
12-6 (6) <(7)> all persons who will conduct, promote, or
12-7 administer the proposed bingo games are active, bona fide members
12-8 of the applicant organization and all other persons who will assist
12-9 in conducting, promoting, or administering the proposed bingo games
12-10 are persons authorized to do so by Section 19 of this Act.
12-11 SECTION 7. The Bingo Enabling Act (Article 179d, Vernon's
12-12 Texas Civil Statutes) is amended by adding Section 13f to read as
12-13 follows:
12-14 Sec. 13f. ACCESS TO INTERNAL REVENUE SERVICE INFORMATION.
12-15 (a) The commission may obtain information relating to a person's
12-16 qualification for licensing under this Act from the Internal
12-17 Revenue Service under a contract between the comptroller and the
12-18 Internal Revenue Service on:
12-19 (1) an operator or an applicant to act as an operator
12-20 of bingo occasions; or
12-21 (2) an applicant for a license to act or a person who
12-22 holds a license to act as a commercial lessor.
12-23 (b) All information received by the commission from the
12-24 Internal Revenue Service is confidential and may only be used as
12-25 provided by the contract between the comptroller and the Internal
12-26 Revenue Service under which the information was obtained.
12-27 (c) A person commits an offense if the person releases or
13-1 discloses any information obtained under this section except on
13-2 court order. An offense under this subsection is a Class A
13-3 misdemeanor.
13-4 (d) The comptroller shall adopt rules governing the custody
13-5 and use of information obtained under this section.
13-6 SECTION 8. Section 16(e), Bingo Enabling Act (Article 179d,
13-7 Vernon's Texas Civil Statutes), is amended to read as follows:
13-8 (e) After a hearing, the <The> commission may suspend or
13-9 revoke any license issued under this Act for failure to comply with
13-10 this Act or a rule adopted by the commission under this Act, or for
13-11 any reason that would allow or require the commission to refuse to
13-12 issue or renew a license of the same class. An administrative law
13-13 judge shall conduct the hearing as provided by Section 467.106,
13-14 Government Code. The commission may summarily suspend a license
13-15 issued under this Act for failure to comply with this Act or a rule
13-16 adopted by the commission under this Act if the commission
13-17 determines that the licensee's continued operation may constitute
13-18 an immediate threat to the health, safety, morals, or welfare of
13-19 the public. The Administrative Procedure and Texas Register Act
13-20 (Article 6252-13a, Vernon's Texas Civil Statutes) does not apply to
13-21 the commission in the enforcement and administration of a summary
13-22 suspension under this section.
13-23 SECTION 9. Section 19a(k), Bingo Enabling Act (Article 179d,
13-24 Vernon's Texas Civil Statutes), is amended to read as follows:
13-25 (k) Before the end of each quarter, each licensed authorized
13-26 organization shall disburse for charitable purposes an amount not
13-27 less than 35 percent of the organization's adjusted gross receipts
14-1 from the last preceding quarter, less the amount of any credits
14-2 allowed by rule for <bingo gross receipts taxes and> authorized
14-3 expenses. For purposes of this subsection, adjusted gross receipts
14-4 means gross receipts plus any consideration received from the
14-5 rental of premises for bingo by the authorized organization, less
14-6 the amount of prizes paid in the preceding quarter. If a licensed
14-7 authorized organization fails to meet the requirements of this
14-8 subsection for a quarter, the commission in applying appropriate
14-9 sanctions may consider whether, taking into account the amount
14-10 required to be distributed during that quarter and the three
14-11 preceding quarters and the charitable distributions for each of
14-12 those quarters, the organization has distributed a total amount
14-13 sufficient to have met the 35 percent requirement for that quarter
14-14 and the three preceding quarters combined.
14-15 SECTION 10. Sections 19b(b) and (c), Bingo Enabling Act
14-16 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
14-17 as follows:
14-18 (b) The fee imposed by this section is five <three> percent
14-19 of the amount or value of the prize.
14-20 (c) A licensed authorized organization shall report and
14-21 remit the fee imposed by this section at the same time and in the
14-22 same manner as the gross rentals <receipts> tax under Section 20 of
14-23 this Act.
14-24 SECTION 11. The Bingo Enabling Act (Article 179d, Vernon's
14-25 Texas Civil Statutes) is amended by adding Section 19c to read as
14-26 follows:
14-27 Sec. 19c. LOCAL SHARE OF FEE ON PRIZES. (a) A county or
15-1 municipality that imposed a gross receipts tax on the conduct of
15-2 bingo games as of January 1, 1993, is entitled to a share of the
15-3 fee imposed by Section 19b of this Act.
15-4 (b) Except as provided by Subsection (d) of this section, a
15-5 county to which this section applies is entitled to 50 percent of
15-6 the fee collected under Section 19b of this Act on a prize awarded
15-7 at a bingo game conducted in the county.
15-8 (c) Except as provided by Subsection (d) of this section, a
15-9 municipality to which this section applies is entitled to 50
15-10 percent of the fee collected under Section 19b of this Act on a
15-11 prize awarded at a bingo game conducted in the municipality.
15-12 (d) If a county and municipality are both entitled to a
15-13 share of the fee imposed by Section 19b of this Act:
15-14 (1) the county is entitled to 25 percent of the fee
15-15 collected under Section 19b of this Act on a prize awarded at a
15-16 bingo game conducted in the county; and
15-17 (2) the municipality is entitled to 25 percent of the
15-18 fee collected under Section 19b of this Act on a prize awarded at a
15-19 bingo game conducted in the municipality.
15-20 SECTION 12. Section 20, Bingo Enabling Act (Article 179d,
15-21 Vernon's Texas Civil Statutes), is amended to read as follows:
15-22 Sec. 20. REPORTING AND DUE DATE OF TAXES AND FEES. The
15-23 taxes and fees authorized or imposed by this Act are due and
15-24 payable by the licensee or any person conducting bingo games
15-25 without a license to the state treasurer quarterly on or before the
15-26 15th day of the month succeeding each calendar quarter. The report
15-27 must be filed under oath on forms prescribed by the commission.
16-1 SECTION 13. Section 26, Bingo Enabling Act (Article 179d,
16-2 Vernon's Texas Civil Statutes), is amended to read as follows:
16-3 Sec. 26. TRANSMITTALS, REFUNDS, AND COLLECTIONS. (a) The
16-4 revenue collected from the fee on prizes imposed by Section 19b of
16-5 this Act and sent to the state shall be deposited to the credit of
16-6 a special account in the general revenue fund.
16-7 (b) The commission shall determine the total amount of
16-8 revenue deposited in the account from prizes awarded at bingo games
16-9 in each county and each municipality entitled to a share under
16-10 Section 19c of this Act.
16-11 (c) Quarterly, the commission shall send to each county and
16-12 municipality entitled under Section 19c of this Act to a share of
16-13 the fee on prizes the county's or municipality's share as
16-14 determined under Sections 19c(b)-(d) of this Act.
16-15 (d) The commission shall transfer any remaining amounts in
16-16 the account to a nondedicated account in the general revenue fund.
16-17 (e) Each jurisdiction's share of the fee on prizes <all
16-18 gross receipts taxes> collected under <Section 3 of> this Act <by
16-19 the commission> shall be transmitted to the treasurer or the
16-20 officer of the jurisdiction performing the functions of that office
16-21 by the commission payable to the jurisdiction <periodically as
16-22 promptly as feasible. Transmittals required under this Act shall
16-23 be made at least twice in each state fiscal year>. The funds so
16-24 transmitted may be used by the jurisdiction for any purpose for
16-25 which the general funds of the jurisdiction may be used.
16-26 <(b) Before transmitting funds under Subsection (a) of this
16-27 section, the commission shall deduct two percent of the sum
17-1 collected from each jurisdiction during such period and shall
17-2 deposit the funds in the state treasury to the credit of a special
17-3 fund to be known as the bingo enforcement fund. The fund may be
17-4 used only for the administration and enforcement of this Act.>
17-5 (f) <(c)> The commission is authorized to retain in the
17-6 suspense account of any jurisdiction a portion of the
17-7 jurisdiction's share of the fee on prizes <tax> collected under
17-8 this Act. The balance so retained in the suspense account may not
17-9 exceed five percent of the amount remitted to the jurisdiction.
17-10 The commission is authorized to make refunds from the suspense
17-11 account of any jurisdiction for overpayments made to such accounts
17-12 and to redeem dishonored checks and drafts deposited to the credit
17-13 of the suspense account of the jurisdiction.
17-14 (g) <(d)> When any jurisdiction entitled to a share of the
17-15 fee on prizes prohibits the conduct of bingo as provided by
17-16 Sections 4-9 of this Act <imposes the gross receipts tax and
17-17 thereafter abolishes the tax>, the commission may retain in the
17-18 suspense account of the jurisdiction for one year five percent of
17-19 the final remittance to each such jurisdiction at the time of
17-20 termination of collection of the tax in the jurisdiction to cover
17-21 possible refunds for overpayment of the tax and to redeem
17-22 dishonored checks and drafts deposited to the credit of the
17-23 account. After one year has elapsed after the effective date of
17-24 the prohibition of bingo <abolition of the tax> in the
17-25 jurisdiction, the commission shall remit the balance in the account
17-26 to the jurisdiction and close the account.
17-27 (h) <(e)> Interest earned on all fees on prizes <taxes>
18-1 collected by the commission under this Act before distribution to
18-2 the local jurisdiction, including interest earned from the suspense
18-3 accounts retained under this section, shall be credited to the
18-4 General Revenue Fund.
18-5 SECTION 14. Sections 31, 32, and 33, Bingo Enabling Act
18-6 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
18-7 as follows:
18-8 Sec. 31. Determination if no Return Made. If any licensee
18-9 fails to make a required return, or if any person conducts bingo
18-10 without a license, the commission shall make an estimate of the
18-11 prizes awarded at each occasion of bingo <gross receipts of the
18-12 licensee or person conducting bingo without a license> or of the
18-13 gross rentals received by a licensee for the rental of premises on
18-14 which bingo is conducted. The estimate shall be made for the
18-15 period in respect to which the licensee or other person failed to
18-16 make a return and shall be based on any information covering any
18-17 period that is in the possession of the commission or may come into
18-18 the possession of the commission. On the basis of this estimate,
18-19 the commission shall compute and determine the amount required to
18-20 be paid to the state, adding to the sum a penalty of 10 percent of
18-21 the amount. One or more determinations may be made for one or more
18-22 periods.
18-23 Sec. 32. Jeopardy Determination. (a) If the commission
18-24 believes that the collection of any gross rental tax or fee on
18-25 prizes or any amount of tax or fee on prizes required to be
18-26 remitted to the state or the amount of any determination will be
18-27 jeopardized by delay, the commission shall make a determination of
19-1 the tax or fee on prizes or amount of tax or fee on prizes required
19-2 to be collected, noting that fact upon the determination. The
19-3 amount determined is due and payable immediately.
19-4 (b) If the amount specified in the determination is not paid
19-5 within 20 days after service of notice thereof on the licensee
19-6 against whom the determination is made, the amount becomes final at
19-7 the expiration of the 20 days unless a petition for redetermination
19-8 is filed within the 20 days. A delinquency penalty of 10 percent
19-9 of the tax or fee on prizes or amount of the tax or fee on prizes
19-10 and interest at the rate of 10 percent a year shall attach to the
19-11 amount of the tax or fee on prizes or the amount of the tax or fee
19-12 on prizes required to be collected.
19-13 Sec. 33. Application of Tax Laws. Subtitle B, Title 2, Tax
19-14 Code, applies to the administration, collection, and enforcement of
19-15 the gross rentals tax <taxes authorized or> imposed under Section
19-16 2B of this Act and the fee on prizes imposed under Section 19b of
19-17 this Act except as modified by this Act. In applying the
19-18 provisions <For purposes of the application> of that subtitle to
19-19 the gross rentals tax <taxes authorized or> imposed under Section
19-20 2B of this Act and the fee on prizes imposed under Section 19b of
19-21 this Act only, the fee on prizes is treated as if it were a tax and
19-22 the powers and duties assigned to the comptroller under that
19-23 subtitle are assigned to the commission.
19-24 SECTION 15. Sections 37(a), (b), and (c), Bingo Enabling Act
19-25 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
19-26 as follows:
19-27 (a) At any time within three years after a person is
20-1 delinquent in the payment of any amount of required gross rentals
20-2 tax or fee on prizes due, the commission may collect the amount as
20-3 provided by this section.
20-4 (b) The commission shall seize any property, real or
20-5 personal, of the person and sell the property, or a sufficient part
20-6 of it, at public auction to pay the amount due with any interest or
20-7 penalties on account of the seizure and sale. Any seizure made to
20-8 collect the gross rentals <a> tax or the fee on prizes due shall be
20-9 only of property of the licensee not exempt from execution under
20-10 the laws of this state.
20-11 (c) Notice of the sale and the time and place of the sale
20-12 shall be given to the delinquent person in writing at least 20 days
20-13 before the date set for the sale as provided by this subsection.
20-14 The notice shall be enclosed in an envelope addressed to the
20-15 person<, in case of a sale for limited sales tax due,> at his last
20-16 known address or place of business<, and in case of a sale for use
20-17 taxes due, at his last known residence or place of business in this
20-18 state>. It shall be deposited in the United States mail, postage
20-19 prepaid. The notice shall also be published for at least 10 days
20-20 before the date set for the sale in a newspaper of general
20-21 circulation published in the county in which the property seized is
20-22 to be sold. If there is no newspaper of general circulation in the
20-23 county, notice shall be posted in three public places in the county
20-24 at least 20 days before the date set for the sale. The notice
20-25 shall contain a description of the property to be sold, a statement
20-26 of the amount due, including interest, penalties, and costs, the
20-27 name of the delinquent, and the further statement that unless the
21-1 amount due, interest, penalties, and costs are paid on or before
21-2 the time fixed in the notice for the sale, the property, or so much
21-3 of it as may be necessary, will be sold in accordance with the law
21-4 and the notice.
21-5 SECTION 16. Section 38, Bingo Enabling Act (Article 179d,
21-6 Vernon's Texas Civil Statutes), is amended to read as follows:
21-7 Sec. 38. Bonds or Securities. (a) Each licensee under this
21-8 Act shall furnish to the commission a cash bond, a bond from a
21-9 surety company chartered or authorized to do business in this
21-10 state, certificates of deposit, certificates of savings or U.S.
21-11 treasury bonds or, subject to the discretion and approval of the
21-12 commission, an assignment of negotiable stocks or bonds, or such
21-13 other security as the commission may deem sufficient to secure the
21-14 payment of required tax on gross rentals or fee on prizes <taxes>
21-15 under this Act. The commission shall fix the amount of the bond or
21-16 security in each case, taking into consideration the amount of
21-17 money that has or is expected to become due from the licensee under
21-18 this Act. The amount of the bond or security required by the
21-19 commission may not exceed three times the amount of the licensee's
21-20 average quarterly reports.
21-21 (b) On failure to pay the gross rentals tax or the fee on
21-22 prizes <taxes> imposed under this Act, the commission may notify
21-23 both the licensee and any surety of the delinquency by jeopardy or
21-24 deficiency determination. If payment is not made when due, the
21-25 commission may forfeit the bond or security or any part thereof.
21-26 (c) If the licensee ceases to conduct bingo games and
21-27 relinquishes his license, the commission shall authorize the
22-1 release of all bonds and security on a determination that no
22-2 amounts of gross rentals tax or fee on prizes remain due and
22-3 payable under this Act.
22-4 SECTION 17. Section 1.02, State Lottery Act (Article 179g,
22-5 Vernon's Texas Civil Statutes), is amended by amending Subdivision
22-6 (2) and adding Subdivisions (9) and (10) to read as follows:
22-7 (2) "Division" means the lottery division established
22-8 by the Texas Gaming Commission under Chapter 467, Government Code,
22-9 and its subsequent amendments <in the office of the comptroller
22-10 under this Act>.
22-11 (9) "Commission" means the Texas Gaming Commission.
22-12 (10) "Executive director" means the executive director
22-13 of the Texas Gaming Commission.
22-14 SECTION 18. Section 2.01(l), State Lottery Act (Article
22-15 179g, Vernon's Texas Civil Statutes), is amended to read as
22-16 follows:
22-17 (l) The legislature intends that advertisements or
22-18 promotions sponsored by the commission <comptroller's office> or
22-19 the division for the lottery not be of a nature that unduly
22-20 influences any person to purchase a lottery ticket or number.
22-21 SECTION 19. Sections 2.02(a)-(f), (j), and (k), State
22-22 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
22-23 amended to read as follows:
22-24 (a) The commission <comptroller> and director have broad
22-25 authority and shall exercise strict control and close supervision
22-26 over all lottery games conducted in this state to promote and
22-27 ensure integrity, security, honesty, and fairness in the operation
23-1 and administration of the lottery.
23-2 (b) The commission <comptroller> shall adopt all rules
23-3 necessary to administer this Act. The director may propose rules
23-4 to be adopted by the commission <comptroller>, but the director's
23-5 proposed rules have no effect until adopted by the commission
23-6 <comptroller>.
23-7 (c) The commission <comptroller> shall adopt rules to the
23-8 extent they are not inconsistent with the Open Meetings Act
23-9 (Article 6252-17, Vernon's Texas Civil Statutes) and the Open
23-10 Records Act (Article 6252-17a, Vernon's Texas Civil Statutes)
23-11 governing the:
23-12 (1) security for the lottery and the division,
23-13 including the development of an internal security plan;
23-14 (2) apportionment of the total revenues from the sale
23-15 of tickets and from all other sources in the amounts provided by
23-16 this Act;
23-17 (3) enforcement of prohibitions on the sale of tickets
23-18 to or by an individual younger than 18 years of age; and
23-19 (4) enforcement of prohibitions on a person playing a
23-20 lottery game or activity by telephone.
23-21 (d) The commission <comptroller> may adopt rules governing
23-22 the establishment and operation of the lottery, including rules
23-23 governing:
23-24 (1) the type of lottery games or activities to be
23-25 conducted;
23-26 (2) the price of each ticket;
23-27 (3) the number of winning tickets and amount of the
24-1 prize paid on each winning ticket;
24-2 (4) the frequency of the drawing or selection of a
24-3 winning ticket;
24-4 (5) the number and types of locations at which a
24-5 ticket may be sold;
24-6 (6) the method to be used in selling a ticket;
24-7 (7) the use of vending machines or electronic or
24-8 mechanical devices of any kind, other than machines or devices that
24-9 dispense currency or coins as prizes;
24-10 (8) the manner of paying a prize to the holder of a
24-11 winning ticket;
24-12 (9) the investigation of possible violations of this
24-13 Act or any rule adopted under this Act;
24-14 (10) the means of advertising to be used for the
24-15 lottery;
24-16 (11) the qualifications of vendors of lottery services
24-17 or equipment;
24-18 (12) the confidentiality of information relating to
24-19 the operation of the lottery, including:
24-20 (A) trade secrets;
24-21 (B) security measures, systems, or procedures;
24-22 (C) security reports;
24-23 (D) bids or other information regarding the
24-24 division's contracts, if disclosure of the information would impair
24-25 the division's ability to contract for facilities, goods, or
24-26 services on terms favorable to the division;
24-27 (E) personnel information unrelated to
25-1 compensation, duties, qualifications, or responsibilities; and
25-2 (F) information obtained by division security
25-3 officers or investigators;
25-4 (13) the development and availability of a model
25-5 agreement governing the division of a prize among multiple
25-6 purchasers of a winning ticket purchased through a group purchase
25-7 or pooling arrangement;
25-8 (14) the criteria to be used in evaluating bids for
25-9 contracts for lottery facilities, goods, and services; or
25-10 (15) any other matter necessary or desirable as
25-11 determined by the commission <comptroller>, to promote and ensure:
25-12 (A) the integrity, security, honesty, and
25-13 fairness of the operation and administration of the lottery; and
25-14 (B) the convenience of players and holders of
25-15 winning tickets.
25-16 (e) If the director authorizes a person who is not an
25-17 employee of the division to sell tickets, the person must be
25-18 licensed as a sales agent by the division. The director may
25-19 establish a provisional license or other classes of licenses
25-20 necessary to regulate and administer the quantity and type of
25-21 lottery games or activities provided at each licensed location.
25-22 Each sales agent shall post a cash bond, surety bond, letter of
25-23 credit, certificate of deposit, or other security approved by the
25-24 director, including the contribution of cash to a pooled bond fund
25-25 established by the director to protect the state from possible
25-26 losses. The amount of the security shall be determined by the
25-27 director and shall reflect the possible losses to the state from
26-1 the operation of the sales agent. The director may also require a
26-2 sales agent to maintain insurance if necessary to protect the
26-3 interests of the state. As prescribed by division rules, each
26-4 sales agent shall prominently display the license in each place of
26-5 business or activity at which the sales agent sells tickets.
26-6 (f) The commission <comptroller> shall make an annual report
26-7 to the governor and the legislature that provides a summary of
26-8 lottery revenues, prize disbursements, and other expenses for the
26-9 fiscal year preceding the report. The report must be in the form
26-10 and reported in the time provided by the General Appropriations
26-11 Act.
26-12 (j) Each lottery operator's and sales agent's records are
26-13 subject to audit by the division, the commission <comptroller>, and
26-14 the state auditor. For the purpose of carrying out this Act, the
26-15 director, executive director, commission <comptroller>, or state
26-16 auditor may examine all books, records, papers, or other objects
26-17 that the director, executive director, commission <comptroller>, or
26-18 state auditor determines are necessary for conducting a complete
26-19 examination under this Act and may also examine under oath any
26-20 officer, director, or employee of a lottery operator or sales
26-21 agent. The director, executive director, commission <comptroller>,
26-22 or state auditor may conduct an examination at the principal office
26-23 or any other office of the lottery operator or sales agent or may
26-24 require the lottery operator or sales agent to produce the records
26-25 at the office of the division, executive director, commission
26-26 <comptroller>, or state auditor. If a sales agent refuses to
26-27 permit an examination or to answer any question authorized by this
27-1 subsection, the commission <comptroller> may summarily suspend the
27-2 license of the sales agent under Section 3.03 of this Act until the
27-3 examination is completed as required. Section 321.013(h),
27-4 Government Code, does not apply to an audit of a lottery operator
27-5 or sales agent.
27-6 (k) The commission <comptroller> shall adopt rules
27-7 prohibiting the operation of any game using a video lottery machine
27-8 or machine. As used in this subsection "video lottery machine" or
27-9 "machine" means any electronic video game machine that, upon
27-10 insertion of cash, is available to play or simulate the play of a
27-11 video game, including but not limited to video poker, keno, and
27-12 blackjack, utilizing a video display and microprocessors in which
27-13 the player may receive free games or credits that can be redeemed
27-14 for cash, coins or tokens, or that directly dispenses cash, coins,
27-15 or tokens.
27-16 SECTION 20. Sections 2.04(c), (d), (h), and (k), State
27-17 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
27-18 amended to read as follows:
27-19 (c) The procurement procedures adopted by the director
27-20 shall, as determined feasible and appropriate by the director,
27-21 afford any party who is aggrieved by the terms of a solicitation or
27-22 the award of a contract an opportunity to protest the director's
27-23 action to the commission <comptroller>. The protest procedures
27-24 shall provide for an expedient resolution of the protest in order
27-25 to avoid substantially delaying a solicitation or contract award
27-26 that is necessary for the timely implementation of a lottery game.
27-27 A protest must be in writing and be filed with the commission
28-1 <comptroller> not later than 72 hours after receipt of notice of
28-2 the director's action.
28-3 (d) A party who is aggrieved by the commission's
28-4 <comptroller's> resolution of a protest under Subsection (c) of
28-5 this section may file an action in the district court of Travis
28-6 County. The court shall give preference to hearings and trials of
28-7 actions under this section. If the party filing the action seeks
28-8 to enjoin the implementation of a solicitation or contract, the
28-9 party shall post a bond that is payable to the state if the party
28-10 does not prevail in the appeal, and is in an amount sufficient to
28-11 compensate the state for the revenue that would be lost due to the
28-12 delay in lottery operations.
28-13 (h) Notwithstanding the provisions of the Public Utility
28-14 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
28-15 commission <comptroller> may negotiate rates and execute contracts
28-16 with telecommunications service providers for the interexchange
28-17 services necessary for the operation of the lottery. The
28-18 commission <comptroller> may acquire transmission facilities by
28-19 lease, purchase, or lease-purchase. The acquisition of
28-20 transmission facilities shall be done on a competitive bid basis if
28-21 possible.
28-22 (k) The commission <comptroller> shall require any person
28-23 seeking to contract for goods or services relating to the
28-24 implementation and administration of this Act to submit to
28-25 competitive bidding procedures in accordance with rules established
28-26 by the commission <comptroller>. Such procedures shall be for the
28-27 purpose of insuring fairness and integrity.
29-1 SECTION 21. Section 2.06(c), State Lottery Act (Article
29-2 179g, Vernon's Texas Civil Statutes), is amended to read as
29-3 follows:
29-4 (c) The commission <comptroller> shall annually report to
29-5 the legislature and the governor on the level of minority business
29-6 participation as pertains to both the division's contracts and the
29-7 licensure of sales agents. The report shall include
29-8 recommendations for the improvement of minority business
29-9 opportunities in lottery-related business.
29-10 SECTION 22. Sections 2.07, 2.08, 2.09, and 2.11, State
29-11 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
29-12 amended to read as follows:
29-13 Sec. 2.07. Television Contracts. If the drawing or
29-14 selection of winning tickets is televised under a contract with the
29-15 division, the contract must be awarded by competitive bid. The
29-16 commission <comptroller> shall adopt rules governing the
29-17 competitive bidding process. Money received under the contract
29-18 shall be deposited in the state lottery account established under
29-19 Section 5.02 of this Act.
29-20 Sec. 2.08. Publicity of Individuals Prohibited. A state
29-21 officer, a commission member, the executive director <or employee,
29-22 including the comptroller>, the director, or an officer or employee
29-23 of the commission <comptroller's office> or the division<,> may not
29-24 appear in an advertisement or promotion for the lottery that is
29-25 sponsored by the commission <comptroller's office> or the division
29-26 or in a televised lottery drawing. An advertisement or promotion
29-27 for the lottery may not contain the likeness or name of a state
30-1 officer, a commission member, the executive director <or employee,
30-2 including the comptroller>, the director, or an officer or employee
30-3 of the commission <comptroller's office> or the division. In
30-4 connection with providing security for the lottery, this section
30-5 shall not prohibit a security officer or investigator employed by
30-6 the division from appearing in a televised lottery drawing or other
30-7 promotion for the lottery that is sponsored by the commission
30-8 <comptroller's office> or the division. Notwithstanding the
30-9 provisions of this section, the director may designate an employee
30-10 of the division to participate in a promotional event<, the purpose
30-11 of which is to award a prize>.
30-12 Sec. 2.09. Audit. The director shall provide for a
30-13 certified public accountant to conduct an independent audit for
30-14 each fiscal year of all accounts and transactions of the lottery.
30-15 The certified public accountant may not have, as determined by the
30-16 director, a significant financial interest in a sales agent,
30-17 lottery vendor, or lottery operator. The certified public
30-18 accountant shall present an audit report to the director, the
30-19 executive director, the commission <comptroller>, the governor, and
30-20 the legislature not later than April 1 of the year following the
30-21 fiscal year for which the audit was performed. The report must
30-22 contain recommendations to enhance the earnings capability of the
30-23 lottery and improve the efficiency of lottery operations. The
30-24 state auditor may review the results of and working papers related
30-25 to the audit.
30-26 Sec. 2.11. Enforcement. (a) The commission <comptroller>
30-27 or designated personnel of the division may investigate violations
31-1 of this Act and violations of the rules adopted under this Act.
31-2 After conducting investigations, the commission <comptroller>, a
31-3 person designated by the commission <comptroller>, or any law
31-4 enforcement agency may file a complaint with the district attorney
31-5 of Travis County or with the district attorney of the county in
31-6 which a violation is alleged to have occurred.
31-7 (b) The commission <comptroller> has the administrative,
31-8 enforcement, and collection powers provided by Subtitle B, Title 2,
31-9 Tax Code, in regard to the lottery. For purposes of the
31-10 application of Title 2 of the Tax Code:
31-11 (1)<,> the state's share of proceeds from the sale of
31-12 lottery tickets is treated as if it were a tax; and
31-13 (2) a power granted to the comptroller may be
31-14 exercised by the commission.
31-15 SECTION 23. Article 2, State Lottery Act (Article 179g,
31-16 Vernon's Texas Civil Statutes), is amended by adding Section 2.111
31-17 to read as follows:
31-18 Sec. 2.111. VENUE. Venue is proper in Travis County or any
31-19 county in which venue is proper under Chapter 13, Code of Criminal
31-20 Procedure, and its subsequent amendments for:
31-21 (1) an offense under this Act;
31-22 (2) an offense under the Penal Code, if the accused:
31-23 (A) is a lottery operator, lottery vendor, sales
31-24 agent, or employee of the division; and
31-25 (B) is alleged to have committed the offense
31-26 while engaged in lottery activities; or
31-27 (3) an offense that involves property consisting of or
32-1 including lottery tickets under Title 7 or 11, Penal Code, and its
32-2 subsequent amendments.
32-3 SECTION 24. Sections 2.12(c), (d), and (f), State Lottery
32-4 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
32-5 read as follows:
32-6 (c) A security officer or investigator employed by the
32-7 department of security or a peace officer who is working in
32-8 conjunction with the commission <comptroller> or the Department of
32-9 Public Safety in the enforcement of this Act, without a search
32-10 warrant, may search and seize a lottery vending machine, lottery
32-11 computer terminal, or other lottery equipment that is located on
32-12 premises for which a person holds a sales agent license issued
32-13 under this Act.
32-14 (d) The Department of Public Safety, at the commission's
32-15 <comptroller's> request, shall perform a full criminal background
32-16 investigation of a prospective deputy or investigator of the
32-17 department of security. The commission <comptroller> shall
32-18 reimburse the Department of Public Safety for the actual costs of
32-19 an investigation.
32-20 (f) The director shall provide the commission and the
32-21 executive director <comptroller> with a complete report of the
32-22 security study conducted under Subsection (e) of this section. The
32-23 commission <comptroller> shall provide the governor and the
32-24 legislature, before the convening of each regular legislative
32-25 session, with a summary of the security study that shows the
32-26 overall evaluation of the lottery's security.
32-27 SECTION 25. Sections 2.13 and 2.14, State Lottery Act
33-1 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
33-2 as follows:
33-3 Sec. 2.13. DEMOGRAPHIC STUDIES. (a) The director shall,
33-4 every two years, employ an independent firm experienced in
33-5 demographic analysis to conduct a demographic study of lottery
33-6 players. The study shall include the income, age, sex, race,
33-7 education, and frequency of participation of players.
33-8 (b) The director shall report the results of the demographic
33-9 study conducted under Subsection (a) of this section to the
33-10 executive director, the commission <comptroller>, the governor, and
33-11 the legislature before the convening of each regular legislative
33-12 session.
33-13 Sec. 2.14. Confidential Information. The following
33-14 information is confidential and is exempt from disclosure under the
33-15 open records law, Chapter 424, Acts of the 63rd Legislature,
33-16 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
33-17 Statutes):
33-18 (1) security plans and procedures of the division or
33-19 the commission <office of the comptroller> designed to ensure the
33-20 integrity and security of the operation of the lottery;
33-21 (2) information of a nature that is designed to ensure
33-22 the integrity and security of the selection of winning tickets or
33-23 numbers in the lottery, other than information describing the
33-24 general procedures for selecting winning tickets or numbers; and
33-25 (3) the street address and telephone number of a prize
33-26 winner, if the prize winner has not consented to the release of the
33-27 information.
34-1 SECTION 26. Sections 3.01(c), (f), and (h), State Lottery
34-2 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
34-3 read as follows:
34-4 (c) An applicant for a license under this section must apply
34-5 to the division under rules prescribed by the commission
34-6 <comptroller>, provide information necessary to determine the
34-7 applicant's eligibility for a license under Section 3.02 of this
34-8 Act, and provide other information considered necessary by the
34-9 commission <comptroller>. The applicant must include an
34-10 application fee with each application. The director shall set the
34-11 application fee in an amount that is at least sufficient to cover
34-12 the costs incurred by the division and by the Department of Public
34-13 Safety to process the application. The director shall determine
34-14 from information provided by the Department of Public Safety the
34-15 amount required for costs incurred by the department and shall
34-16 allocate those amounts to the department at least monthly. If the
34-17 director denies an application for a license based on a factor
34-18 listed in Subsection (f) of this section, the director shall refund
34-19 one-half of the application fee to the applicant. If the director
34-20 denies an application based on another factor, the director may not
34-21 refund any part of the application fee. Applications for licenses
34-22 must be available for public inspection during regular office
34-23 hours.
34-24 (f) The commission <comptroller> shall adopt rules under
34-25 which, before issuing a license to an applicant, the director shall
34-26 consider:
34-27 (1) the financial responsibility and security of the
35-1 applicant and the business or activity in which the applicant is
35-2 engaged;
35-3 (2) the public accessibility of the applicant's place
35-4 of business or activity;
35-5 (3) the sufficiency of existing sales agents to serve
35-6 the public convenience;
35-7 (4) whether individuals under 18 years of age
35-8 constitute a majority of the applicant's customers or as customers
35-9 provide a majority of the applicant's sales volume;
35-10 (5) the volume of expected sales; and
35-11 (6) any other factor that the director considers
35-12 appropriate.
35-13 (h) Unless suspended or revoked, a license expires on the
35-14 date specified in the license, which may not be later than the
35-15 second anniversary of its date of issuance. The commission
35-16 <comptroller> shall adopt rules for the renewal of licenses. The
35-17 director shall set the fee for a renewal of a license in an amount
35-18 at least sufficient to cover the cost of processing the renewal. A
35-19 sales agent must file a renewal application and pay the renewal fee
35-20 before the sales agent's license expires.
35-21 SECTION 27. Sections 3.02(a), (d), and (f), State Lottery
35-22 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
35-23 read as follows:
35-24 (a) After a hearing, the director shall deny an application
35-25 for a license or the commission <comptroller> shall suspend or
35-26 revoke a license if the director or commission <comptroller>, as
35-27 applicable, finds that the applicant or sales agent:
36-1 (1) is an individual who:
36-2 (A) has been convicted of a felony, criminal
36-3 fraud, gambling or a gambling-related offense, or a misdemeanor
36-4 involving moral turpitude, if less than 10 years has elapsed since
36-5 the termination of the sentence, parole, mandatory supervision, or
36-6 probation served for the offense;
36-7 (B) is or has been a professional gambler; <or>
36-8 (C) is married to <or related in the first
36-9 degree of consanguinity or affinity to> an individual:
36-10 (i) described in Paragraph (A) or (B) of
36-11 this subdivision; or
36-12 (ii) who is currently delinquent in the
36-13 payment of any state tax;
36-14 (D) is an officer or employee of the commission,
36-15 the division, or a lottery operator; or
36-16 (E) is a spouse, child, brother, sister, or
36-17 parent residing as a member of the same household in the principal
36-18 place of residence of a person described by Paragraph (D) of this
36-19 subdivision;
36-20 (2) is not an individual, and an individual described
36-21 in Subdivision (1) of this subsection:
36-22 (A) is an officer or director of the applicant
36-23 or sales agent;
36-24 (B) holds more than 10 percent of the stock in
36-25 the applicant or sales agent;
36-26 (C) holds an equitable interest greater than 10
36-27 percent in the applicant or sales agent;
37-1 (D) is a creditor of the applicant or sales
37-2 agent who holds more than 10 percent of the applicant's or sales
37-3 agent's outstanding debt;
37-4 (E) is the owner or lessee of a business that
37-5 the applicant or sales agent conducts or through which the
37-6 applicant will conduct a ticket sales agency;
37-7 (F) shares or will share in the profits, other
37-8 than stock dividends, of the applicant or sales agent; or
37-9 (G) participates in managing the affairs of the
37-10 applicant or sales agent; <or>
37-11 <(H) is an employee of the applicant or sales
37-12 agent who is or will be involved in:>
37-13 <(i) selling tickets; or>
37-14 <(ii) handling money from the sale of
37-15 tickets;>
37-16 (3) is currently delinquent in the payment of any
37-17 state tax;
37-18 (4) is a person whose location for the sales agency
37-19 is:
37-20 (A) a racetrack at which wagering is authorized
37-21 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
37-22 Statutes);
37-23 (B) a location licensed for games of bingo under
37-24 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
37-25 Statutes);
37-26 (C) on land that is owned by:
37-27 (i) this state; or
38-1 (ii) a political subdivision of this
38-2 state, other than land used as a mass transportation facility that
38-3 is used by commercial carriers; or
38-4 (D) a location for which a person holds a wine
38-5 and beer retailer's permit, mixed beverage permit, mixed beverage
38-6 late hours permit, private club registration permit, or private
38-7 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
38-8 Alcoholic Beverage Code;
38-9 (5) has violated this Act or a rule adopted under this
38-10 Act.
38-11 (d) If the director proposes to deny an application for a
38-12 license or the commission <comptroller> proposes to suspend or
38-13 revoke a license under this section, the applicant or sales agent
38-14 is entitled to written notice of the time and place of the hearing.
38-15 A notice may be served on an applicant or sales agent personally or
38-16 sent by certified or registered mail, return receipt requested, to
38-17 the person's mailing address as it appears on the division's
38-18 records. A notice must be served or mailed not later than the 20th
38-19 day before the date of the hearing.
38-20 (f) The Administrative Procedure and Texas Register Act
38-21 (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
38-22 hearing under this section. An administrative law judge shall
38-23 conduct the hearing as provided by Section 467.106, Government
38-24 Code.
38-25 SECTION 28. Section 3.03, State Lottery Act (Article 179g,
38-26 Vernon's Texas Civil Statutes), is amended to read as follows:
38-27 Sec. 3.03. Summary Suspension of License. (a) The
39-1 commission <comptroller> may suspend a sales agent's license
39-2 summarily without notice or hearing if the commission <comptroller>
39-3 finds that the action is necessary to maintain the integrity,
39-4 security, honesty, or fairness of the operation or administration
39-5 of the lottery or to prevent financial loss to the state and:
39-6 (1) the sales agent fails to deposit money received
39-7 from ticket sales under Section 5.01 of this Act;
39-8 (2) an event occurs that would render the sales agent
39-9 ineligible for a license under Section 3.02 of this Act;
39-10 (3) the sales agent refuses to permit the director,
39-11 the executive director, the commission <comptroller>, or the state
39-12 auditor to examine the agent's books, records, papers, or other
39-13 objects under Section 2.02(j) of this Act; or
39-14 (4) the director learns the sales agent has failed to
39-15 disclose information that would, if disclosed, render the sales
39-16 agent ineligible for a license under Section 3.02 of this Act.
39-17 (b) The commission <comptroller> may summarily suspend a
39-18 sales agent's license if proceedings for a preliminary hearing
39-19 before an administrative law judge as provided by Section 467.106,
39-20 Government Code <the comptroller or the comptroller's
39-21 representative> are initiated simultaneously with the summary
39-22 suspension. The preliminary hearing shall be set for a date not
39-23 later than 10 days after the date of the summary suspension, unless
39-24 the parties agree to a later date.
39-25 (c) At the preliminary hearing, the sales agent must show
39-26 cause why the license should not remain suspended pending a final
39-27 hearing on suspension or revocation. The Administrative Procedure
40-1 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
40-2 Statutes) does not apply <to the comptroller> in the administration
40-3 and enforcement of the summary suspension of a license under this
40-4 section. The rules governing a hearing on any other license
40-5 suspension or revocation under this Act govern a final
40-6 administrative hearing under this subsection.
40-7 (d) To initiate a proceeding to summarily suspend a sales
40-8 agent's license, the commission <comptroller> must serve notice to
40-9 the sales agent informing the agent of the right to a preliminary
40-10 hearing <before the comptroller or the comptroller's
40-11 representative> and of the time and place of the preliminary
40-12 hearing. The notice must be personally served on the sales agent
40-13 or an officer, employee, or agent of the sales agent or sent by
40-14 certified or registered mail, return receipt requested, to the
40-15 sales agent's mailing address as it appears on the division's
40-16 records. The notice must state the alleged violations that
40-17 constitute grounds for summary suspension. The suspension is
40-18 effective at the time the notice is served. If notice is served in
40-19 person, the sales agent shall immediately surrender the license to
40-20 the commission <comptroller or to the comptroller's>
40-21 representative. If notice is served by mail, the sales agent shall
40-22 immediately return the license to the commission <comptroller>.
40-23 If the sales agent uses an on-line electronic terminal to sell
40-24 tickets, the director or a lottery operator on the instructions of
40-25 the director may terminate the connection of the terminal to the
40-26 division's lottery computer at the time:
40-27 (1) the proceeding to summarily suspend the license is
41-1 initiated; or
41-2 (2) the division discovers the sales agent has failed
41-3 to deposit money received from ticket sales, if the sales agent's
41-4 license is being summarily suspended under Subsection (a)(1) of
41-5 this section.
41-6 SECTION 29. Sections 3.06(a)-(c), (e), (i), (l), and (n),
41-7 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
41-8 are amended to read as follows:
41-9 (a) The commission <comptroller> is entitled to conduct an
41-10 investigation of and is entitled to obtain criminal history record
41-11 information maintained by the Department of Public Safety, the
41-12 Federal Bureau of Investigation Identification Division, or another
41-13 law enforcement agency to assist in the investigation of:
41-14 (1) a sales agent or an applicant for a sales agent
41-15 license;
41-16 (2) a person required to be named in a license
41-17 application;
41-18 (3) a lottery operator or prospective lottery
41-19 operator;
41-20 (4) an employee of a lottery operator or prospective
41-21 lottery operator, if the employee is or will be directly involved
41-22 in lottery operations;
41-23 (5) a person who manufactures or distributes lottery
41-24 equipment or supplies, or a representative of a person who
41-25 manufactures or distributes lottery equipment or supplies offered
41-26 to the lottery;
41-27 (6) a person who has submitted a written bid or
42-1 proposal to the division in connection with the procurement of
42-2 goods or services by the division, if the amount of the bid or
42-3 proposal exceeds $500;
42-4 (7) an employee or other person who works for or will
42-5 work for a sales agent or an applicant for a sales agent license;
42-6 (8) a person who proposes to enter into or who has a
42-7 contract with the division to supply goods or services to the
42-8 division; or
42-9 (9) if a person described in Subdivisions (1) through
42-10 (8) of this subsection is not an individual, an individual who:
42-11 (A) is an officer or director of the person;
42-12 (B) holds more than 10 percent of the stock in
42-13 the person;
42-14 (C) holds an equitable interest greater than 10
42-15 percent in the person;
42-16 (D) is a creditor of the person who holds more
42-17 than 10 percent of the person's outstanding debt;
42-18 (E) is the owner or lessee of a business that
42-19 the person conducts or through which the person will conduct
42-20 lottery-related activities;
42-21 (F) shares or will share in the profits, other
42-22 than stock dividends, of the person;
42-23 (G) participates in managing the affairs of the
42-24 person; or
42-25 (H) is an employee of the person who is or will
42-26 be involved in:
42-27 (i) selling tickets; or
43-1 (ii) handling money from the sale of
43-2 tickets.
43-3 (b) The commission <comptroller> shall conduct an
43-4 investigation of and obtain criminal history record information
43-5 maintained by the Department of Public Safety, the Federal Bureau
43-6 of Investigation Identification Division, or another law
43-7 enforcement agency to assist in the investigation of:
43-8 (1) the director or a prospective director of the
43-9 division; or
43-10 (2) an employee or prospective employee of the
43-11 division.
43-12 (c) Not later than one year after the date of each renewal,
43-13 the commission <comptroller> shall obtain criminal history record
43-14 information maintained by the Department of Public Safety on a
43-15 sales agent whose license is renewed under Section 3.01(h) of this
43-16 Act.
43-17 (e) The director may deny an application for a license or
43-18 the commission <comptroller> may suspend or revoke a license if the
43-19 applicant or sales agent fails on request to provide a complete
43-20 legible set of fingerprints of<:>
43-21 <(1)> a person required to be named in a license
43-22 application<; or>
43-23 <(2) an employee or other person who works or will
43-24 work for the applicant or sales agent, if the person:>
43-25 <(A) is or will be involved in the sale of
43-26 tickets; or>
43-27 <(B) handles or will handle money from the sale
44-1 of tickets>.
44-2 (i) A person commits an offense if the person releases or
44-3 discloses information received by the commission <comptroller>
44-4 under this section except on court order or as provided by
44-5 Subsection (h) of this section. An offense under this subsection
44-6 is a Class A misdemeanor.
44-7 (l) The commission shall adopt rules governing the custody
44-8 and use of criminal history record information obtained under this
44-9 section. The comptroller shall adopt necessary rules governing the
44-10 custody and use of information obtained from the Internal Revenue
44-11 Service under this section.
44-12 (n) The director may award a contract for lottery supplies
44-13 or services, including a contract under Section 2.02(g) of this
44-14 Act, pending the completion of any investigation authorized by this
44-15 Act. A contract awarded under this subsection must include a
44-16 provision permitting the director to terminate the contract without
44-17 penalty if the investigation reveals that the person to whom the
44-18 contract is awarded would not be eligible for a sales agent license
44-19 under Section 3.02 of this Act. <The director's authority to award
44-20 a contract under this subsection expires September 1, 1993. This
44-21 subsection expires January 1, 1995.>
44-22 SECTION 30. Section 4.01, State Lottery Act (Article 179g,
44-23 Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
44-24 to read as follows:
44-25 (c) A person claiming or attempting to claim a lottery prize
44-26 or a share of a lottery prize represents that the ticket or other
44-27 item showing that the person is entitled to the prize or share was
45-1 lawfully obtained, is not stolen, forged, or altered, and has not
45-2 previously been redeemed.
45-3 SECTION 31. Section 4.02, State Lottery Act (Article 179g,
45-4 Vernon's Texas Civil Statutes), is amended to read as follows:
45-5 Sec. 4.02. Certain Sales of Tickets Prohibited. (a) A
45-6 person commits an offense if the person intentionally or knowingly
45-7 sells a ticket at a price the person knows is greater than that
45-8 fixed by the division or by the lottery operator authorized to set
45-9 that price. An offense under this subsection is a Class A
45-10 misdemeanor.
45-11 (b) Except as provided by this subsection, a person who is
45-12 not a sales agent or an employee of a sales agent commits an
45-13 offense if the person intentionally or knowingly sells a ticket.
45-14 An offense under this subsection is a felony of the third degree.
45-15 A lottery operator may sell tickets to a licensed sales agent. A
45-16 person who is not a sales agent may distribute tickets as premiums
45-17 to customers, employees, or other persons who deal with the person
45-18 if no purchase <or service> is required to entitle the recipient to
45-19 the ticket. A qualified organization as defined in Section 2,
45-20 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
45-21 added by Chapter 957, Acts of the 71st Legislature, Regular
45-22 Session, 1989), may distribute tickets as a prize in a raffle
45-23 authorized by the Charitable Raffle Enabling Act.
45-24 (c) A person commits an offense if the person sells a ticket
45-25 at a location other than the location of a sales agency. An
45-26 offense under this subsection is a Class A misdemeanor.
45-27 (d) A sales agent or an employee of a sales agent commits an
46-1 offense if the person <may not> intentionally or knowingly sells or
46-2 offers <sell or offer> to sell a ticket to an individual that the
46-3 person knows is younger than 18 years of age. An offense under
46-4 this subsection is a Class C misdemeanor.
46-5 (e) A person may not purchase <sell> a ticket or claim,
46-6 collect, or receive <pay> a lottery prize or a share of a lottery
46-7 prize if <to another person that> the person <knows> is:
46-8 (1) a member, officer, or employee of a person that
46-9 has a contract with the division to sell or lease goods or services
46-10 used in the lottery;
46-11 (2) a member, officer, or employee of a lottery
46-12 operator;
46-13 (3) an officer or employee of the commission
46-14 <comptroller>; or
46-15 (4) a spouse, child, brother, sister, or parent
46-16 residing as a member of the same household in the principal place
46-17 of residence of a person described by Subdivision (1), (2), or (3)
46-18 of this subsection.
46-19 (f) A person 18 years of age or older may purchase a ticket
46-20 to give as a gift to another person, including an individual
46-21 younger than 18 years of age.
46-22 (g) If an individual listed in Subsection (e) of this
46-23 section purchases a ticket or claims or otherwise attempts to
46-24 collect or receive a lottery prize or a share of a lottery prize or
46-25 an individual younger than 18 years of age directly purchases a
46-26 ticket, the individual is not eligible to receive a prize or share
46-27 of a prize, and the prize or share of a prize otherwise payable on
47-1 the ticket is treated as an unclaimed prize as provided by Section
47-2 5.05 of this Act.
47-3 (h) <(g)> A sales agent or an employee of a sales agent
47-4 commits an offense if the person intentionally or knowingly sells a
47-5 ticket to another person by extending credit or lending money to
47-6 the person to enable the person to purchase the ticket. An offense
47-7 under this subsection is a Class C misdemeanor.
47-8 (i) <(h)> A person commits an offense if the person
47-9 intentionally or knowingly sells <may not purchase> a ticket and:
47-10 (1) accepts <with> a food stamp coupon issued under
47-11 the food stamp program administered under Chapter 33, Human
47-12 Resources Code, as payment;
47-13 (2) accepts <with> a credit card or a debit card as a
47-14 source of payment;
47-15 (3) the sale is made over the telephone; or
47-16 (4) the sale is made by mail-order sales.
47-17 (j) <(i)> A person commits an offense if the person
47-18 intentionally or knowingly purchases <may not pay> for a ticket
47-19 with:
47-20 (1) a food stamp coupon issued under the food stamp
47-21 program administered under Chapter 33, Human Resources Code; or
47-22 (2) the proceeds of a check issued as a payment under
47-23 the Aid to Families with Dependent Children program administered
47-24 under Chapter 31, Human Resources Code.
47-25 (k) An offense under Subsection (i) or (j) of this section
47-26 is a Class C misdemeanor.
47-27 (l) A person commits an offense if, for financial gain, the
48-1 person establishes or promotes a group purchase or pooling
48-2 arrangement under which tickets are purchased on behalf of the
48-3 group or pool and any prize is divided among the members of the
48-4 group or pool, and the person intentionally or knowingly:
48-5 (1) uses any part of the funds solicited or accepted
48-6 for a purpose other than purchasing tickets on behalf of the group
48-7 or pool; or
48-8 (2) retains a share of any prize awarded as
48-9 compensation for establishing or promoting the group purchase or
48-10 pooling arrangement.
48-11 (m) An offense under Subsection (l) of this section is a
48-12 felony of the third degree.
48-13 SECTION 32. Section 4.03, State Lottery Act (Article 179g,
48-14 Vernon's Texas Civil Statutes), is amended by amending Subsection
48-15 (d) and adding Subsection (h) to read as follows:
48-16 (d) An offense under Subsection (c) of this section is a
48-17 Class A misdemeanor unless it is shown on the trial of the offense
48-18 that:
48-19 (1) the amount claimed <or attempted to be claimed> is
48-20 greater than $200 but not more than $10,000, in which event the
48-21 offense is a felony of the third degree;
48-22 (2) the amount claimed <or attempted to be claimed> is
48-23 greater than $10,000, in which event the offense is a felony of the
48-24 second degree; or
48-25 (3) the person has previously been convicted of an
48-26 offense under this section, in which event the offense is a felony
48-27 of the third degree, unless the offense is designated as a felony
49-1 of the second degree under Subdivision (2) of this subsection.
49-2 (h) In this section, "claim" includes an attempt to claim,
49-3 without regard to whether the attempt is successful.
49-4 SECTION 33. Section 4.04(b), State Lottery Act (Article
49-5 179g, Vernon's Texas Civil Statutes), is amended to read as
49-6 follows:
49-7 (b) A person commits an offense if the person knowingly
49-8 refuses to produce for inspection by the director, executive
49-9 director, commission <comptroller>, or state auditor a book,
49-10 record, or document required to be maintained or made by this Act
49-11 or a rule adopted under this Act.
49-12 SECTION 34. Section 4.045(a), State Lottery Act (Article
49-13 179g, Vernon's Texas Civil Statutes), is amended to read as
49-14 follows:
49-15 (a) A person commits an offense if the person intentionally
49-16 or<,> knowingly<, recklessly, or with criminal negligence> makes a
49-17 material and false, incorrect, or deceptive statement to a person
49-18 conducting an investigation or exercising discretion under this Act
49-19 or a rule adopted under this Act.
49-20 SECTION 35. Sections 4.06(a)-(e) and (g), State Lottery Act
49-21 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
49-22 as follows:
49-23 (a) A commission member <The comptroller>, the state
49-24 treasurer, the executive director, the director, or an employee of
49-25 the division may not knowingly accept a gift or political
49-26 contribution from:
49-27 (1) a person that has a significant financial interest
50-1 in the lottery;
50-2 (2) a person related in the first degree of
50-3 consanguinity or affinity to a person that has a significant
50-4 financial interest in the lottery;
50-5 (3) a person that owns more than a 10 percent interest
50-6 in an entity that has a significant financial interest in the
50-7 lottery;
50-8 (4) a political committee that is directly
50-9 established, administered, or controlled, in whole or in part, by a
50-10 person that has a significant financial interest in the lottery; or
50-11 (5) a person who, within the two years preceding the
50-12 date of the gift or contribution, won a lottery prize exceeding
50-13 $600 in amount or value.
50-14 (b) A former commission member <comptroller>, former state
50-15 treasurer, former executive director, or former director may not:
50-16 (1) for compensation, represent a person that has made
50-17 or intends to make a bid to operate the lottery before the
50-18 commission <comptroller> before the second anniversary of the date
50-19 that the person's service in office or employment with the division
50-20 ceases;
50-21 (2) represent any person or receive compensation for
50-22 services rendered on behalf of any person regarding a particular
50-23 matter in which the former officer or employee participated during
50-24 the period of service or employment with the division, either
50-25 through personal involvement or because the matter was within the
50-26 scope of the officer's or employee's official responsibility; or
50-27 (3) for compensation, communicate directly with a
51-1 member of the legislative branch to influence legislation on behalf
51-2 of a person that has a significant financial interest in the
51-3 lottery, before the second anniversary of the date that the
51-4 person's service in office or employment with the division ceases.
51-5 (c) A former commission member <comptroller>, former state
51-6 treasurer, former executive director, former director, or former
51-7 employee of the division may not, before the second anniversary of
51-8 the date that the person's service in office or employment with the
51-9 division ceases, knowingly accept a gift or political contribution
51-10 from:
51-11 (1) a person that has a significant financial interest
51-12 in the lottery;
51-13 (2) a person related in the first degree of
51-14 consanguinity or affinity to a person that has a significant
51-15 financial interest in the lottery;
51-16 (3) a person that owns more than a 10 percent interest
51-17 in an entity that has a significant financial interest in the
51-18 lottery;
51-19 (4) a political committee that is directly
51-20 established, administered, or controlled, in whole or in part, by a
51-21 person that has a significant financial interest in the lottery; or
51-22 (5) a person who, within the two years preceding the
51-23 date of the gift or contribution, won a lottery prize exceeding
51-24 $600 in amount or value.
51-25 (d) A person may not knowingly make a gift or political
51-26 contribution to a commission member <the comptroller>, the state
51-27 treasurer, the executive director, the director, or an employee of
52-1 the division if the person:
52-2 (1) has a significant financial interest in the
52-3 lottery;
52-4 (2) is related in the first degree of consanguinity or
52-5 affinity to a person that has a significant financial interest in
52-6 the lottery;
52-7 (3) owns more than a 10 percent interest in an entity
52-8 that has a significant financial interest in the lottery;
52-9 (4) is a political committee that is directly
52-10 established, administered, or controlled, in whole or in part, by a
52-11 person that has a significant financial interest in the lottery; or
52-12 (5) within the two years preceding the date of the
52-13 gift or contribution, won a lottery prize exceeding $600 in amount
52-14 or value.
52-15 (e) A person may not knowingly make a gift or political
52-16 contribution to a former commission member <comptroller>, former
52-17 state treasurer, former executive director, former director, or
52-18 former employee of the division before the second anniversary of
52-19 the date that the person's service in office or employment with the
52-20 division ceases, if the person:
52-21 (1) has a significant financial interest in the
52-22 lottery;
52-23 (2) is related in the first degree of consanguinity or
52-24 affinity to a person that has a significant financial interest in
52-25 the lottery;
52-26 (3) owns more than a 10 percent interest in an entity
52-27 that has a significant financial interest in the lottery;
53-1 (4) is a political committee that is directly
53-2 established, administered, or controlled, in whole or in part, by a
53-3 person that has a significant financial interest in the lottery; or
53-4 (5) within the two years preceding the date of the
53-5 gift or contribution, won a lottery prize exceeding $600 in amount
53-6 or value.
53-7 (g) Subsections (b) and (c) of this section do not apply to
53-8 a <former comptroller or> former state treasurer who left office on
53-9 or before August 10, 1991 <the date of the final approval by the
53-10 legislature of the joint resolution proposing a constitutional
53-11 amendment authorizing the state to conduct a lottery>. Subsection
53-12 (e) of this section does not apply to a person who makes a gift or
53-13 political contribution to a <former comptroller or> former state
53-14 treasurer if the <former comptroller or> former state treasurer
53-15 left office on or before August 10, 1991 <the date of the final
53-16 approval by the legislature of the joint resolution proposing a
53-17 constitutional amendment authorizing the state to conduct a
53-18 lottery>.
53-19 SECTION 36. Article 4, State Lottery Act (Article 179g,
53-20 Vernon's Texas Civil Statutes), is amended by adding Section 4.07
53-21 to read as follows:
53-22 Sec. 4.07. AGGREGATION OF AMOUNTS INVOLVED. When amounts
53-23 are claimed, attempted to be claimed, or obtained in violation of
53-24 this Act pursuant to one scheme or continuing course of conduct,
53-25 whether from the same or several sources, the conduct may be
53-26 considered as one offense and the amounts aggregated in determining
53-27 the grade of the offense.
54-1 SECTION 37. Section 5.01(b), State Lottery Act (Article
54-2 179g, Vernon's Texas Civil Statutes), is amended to read as
54-3 follows:
54-4 (b) The director may require sales agents to establish
54-5 separate electronic funds transfer accounts for the purposes of
54-6 depositing money from ticket sales, making payments to the
54-7 division, and receiving payments from the division. The commission
54-8 <comptroller> by rule shall establish the procedures for depositing
54-9 money from ticket sales into electronic funds transfer accounts, as
54-10 well as other procedures regarding the handling of money from
54-11 ticket sales. The director may not permit a sales agent to make
54-12 payments to the division or a lottery operator in cash.
54-13 SECTION 38. Section 5.02(b), State Lottery Act (Article
54-14 179g, Vernon's Texas Civil Statutes), is amended to read as
54-15 follows:
54-16 (b) Money in the state lottery account shall be used only
54-17 for the following purposes and shall be distributed as follows:
54-18 (1) the payment of prizes to the holders of winning
54-19 tickets;
54-20 (2) the payment of costs incurred in the operation and
54-21 administration of the lottery, including any fees received by a
54-22 lottery operator, provided that the costs incurred in a fiscal
54-23 biennium may not exceed an amount equal to 15 percent of the gross
54-24 revenue accruing from the sale of tickets in that biennium;
54-25 (3) the establishment of a pooled bond fund, lottery
54-26 prize reserve fund, unclaimed prize fund, and prize payment
54-27 account;
55-1 (4) the transfer of amounts to the state lottery
55-2 stabilization fund as provided by Subsections (c), (d), and (e) of
55-3 this section; and
55-4 (5) <(4)> the balance, after creation of a reserve
55-5 sufficient to pay the amounts needed or estimated to be needed
55-6 under <provided by> Subdivisions (1) through (3) <and (2)> of this
55-7 subsection, to be transferred to the unobligated portion of the
55-8 general revenue fund, on or before the 15th day of each month.
55-9 SECTION 39. Section 5.02(h)(4), State Lottery Act (Article
55-10 179g, Vernon's Texas Civil Statutes), is amended to read as
55-11 follows:
55-12 (4) "Net lottery revenue" means the gross lottery
55-13 revenue minus the amounts distributed or obligated for a purpose
55-14 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
55-15 section.
55-16 SECTION 40. Sections 5.03(j) and (l), State Lottery Act
55-17 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
55-18 as follows:
55-19 (j) The director shall deduct the amount of a delinquent tax
55-20 or other money from the winnings of a person who has been finally
55-21 determined to be:
55-22 (1) delinquent in the payment of a tax or other money
55-23 collected by the comptroller, the state treasurer, or the Texas
55-24 Alcoholic Beverage Commission;
55-25 (2) delinquent in making child support payments
55-26 administered or collected by the attorney general; <or>
55-27 (3) in default on a loan made under Chapter 52,
56-1 Education Code; or
56-2 (4) in default on a loan guaranteed under Chapter 57,
56-3 Education Code.
56-4 (l) The attorney general, comptroller, state treasurer,
56-5 Texas Alcoholic Beverage Commission, Texas Higher Education
56-6 Coordinating Board, and Texas Guaranteed Student Loan Corporation
56-7 shall each provide the director with a report of persons who have
56-8 been finally determined to be delinquent in the payment of a tax or
56-9 other money collected by the agency. The commission <comptroller>
56-10 shall adopt rules regarding the form and frequency of reports under
56-11 this subsection.
56-12 SECTION 41. Section 47.06(g), Penal Code, is amended to read
56-13 as follows:
56-14 (g) It is a defense to prosecution for an offense under this
56-15 chapter that the conduct was authorized, directly or indirectly, by
56-16 the State Lottery Act, the lottery division of <in> the Texas
56-17 Gaming Commission <office of the comptroller>, the Texas Gaming
56-18 Commission <comptroller>, or the director of the lottery division.
56-19 SECTION 42. Section 47.14, Penal Code, is amended to read as
56-20 follows:
56-21 Sec. 47.14. State Lottery. It is a defense to prosecution
56-22 for an offense under this chapter that the conduct:
56-23 (1) consisted entirely of participation in the state
56-24 lottery authorized by the State Lottery Act; or
56-25 (2) was a necessary incident to the operation of the
56-26 state lottery and was authorized, directly or indirectly, by the
56-27 State Lottery Act, the lottery division of <in> the Texas Gaming
57-1 Commission <office of the comptroller>, the Texas Gaming Commission
57-2 <comptroller>, or the director of the lottery division.
57-3 SECTION 43. Section 111.0047(a), Tax Code, is amended to
57-4 read as follows:
57-5 (a) If a person fails to comply with any provision of this
57-6 title<, with any provision of the State Lottery Act,> or with a
57-7 rule of the comptroller adopted under this title <or the State
57-8 Lottery Act>, the comptroller, after a hearing, may revoke or
57-9 suspend any permit or license issued to the person.
57-10 SECTION 44. Section 111.0048(a), Tax Code, is amended to
57-11 read as follows:
57-12 (a) A new permit or license may not be issued to a former
57-13 holder of a revoked permit or license unless the comptroller is
57-14 satisfied that the person will comply with the provisions of this
57-15 title <and the State Lottery Act> and the rules of the comptroller
57-16 relating to this title <and the State Lottery Act>.
57-17 SECTION 45. Section 112.058, Tax Code, is amended by adding
57-18 Subsection (f) to read as follows:
57-19 (f) All protest payments of taxes imposed by and collected
57-20 for the state under the Bingo Enabling Act (Article 179d, Vernon's
57-21 Texas Civil Statutes) that become due on or after September 1,
57-22 1993, are governed by Subchapter J, Chapter 403, Government Code.
57-23 SECTION 46. Section 2(5)(A), Chapter 421, Acts of the 63rd
57-24 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
57-25 Civil Statutes), is amended to read as follows:
57-26 (A) "Appointed officer of a major state agency"
57-27 means any of the following:
58-1 (i) a member of the Public Utility
58-2 Commission of Texas;
58-3 (ii) a member of the Texas Department of
58-4 Commerce;
58-5 (iii) a member of the Texas Board of
58-6 Aviation;
58-7 (iv) a member of the Texas Air Control
58-8 Board;
58-9 (v) a member of the Texas Alcoholic
58-10 Beverage Commission;
58-11 (vi) a member of the Finance Commission of
58-12 Texas;
58-13 (vii) a member of the <State Purchasing
58-14 and> General Services Commission;
58-15 (viii) a member of the Texas Board of
58-16 Criminal Justice;
58-17 (ix) a member of the Board of Trustees of
58-18 the Employees Retirement System of Texas;
58-19 (x) a member of the State Highway and
58-20 Public Transportation Commission;
58-21 (xi) a member of the Texas Workers'
58-22 Compensation Commission;
58-23 (xii) a member of the State Board of
58-24 Insurance;
58-25 (xiii) a member of the Parks and Wildlife
58-26 Commission;
58-27 (xiv) a member of the Public Safety
59-1 Commission;
59-2 (xv) the Secretary of State;
59-3 (xvi) a member of the State Securities
59-4 Board;
59-5 (xvii) a member of the Texas Amusement
59-6 Machine Commission;
59-7 (xviii) a member of the Texas Water
59-8 Development Board;
59-9 (xix) a member of the Texas Water
59-10 Commission;
59-11 (xx) a member of the governing board of a
59-12 state senior college or university as defined by Section 61.003,
59-13 Education Code, including The University of Texas at Arlington; The
59-14 University of Texas at Austin; The University of Texas at Dallas;
59-15 The University of Texas at El Paso; The University of Texas--Pan
59-16 American; The University of Texas--Pan American--Brownsville; The
59-17 University of Texas of the Permian Basin; The University of Texas
59-18 at San Antonio; The University of Texas at Tyler; The University of
59-19 Texas Southwestern Medical Center at Dallas; The University of
59-20 Texas Medical Branch at Galveston; The University of Texas Health
59-21 Science Center at Houston; The University of Texas Health Science
59-22 Center at San Antonio; The University of Texas System Cancer
59-23 Center; The University of Texas Health Science Center at Tyler;
59-24 Texas A&M University; Texas A&M University at Galveston; Prairie
59-25 View A&M University; Tarleton State University; Corpus Christi
59-26 State University; Texas A&I University; Laredo State University;
59-27 East Texas State University; East Texas State University at
60-1 Texarkana; University of Houston; University of Houston--Clear
60-2 Lake; University of Houston--Downtown; University of
60-3 Houston--Victoria; Lamar University at Beaumont; Lamar University
60-4 at Orange; Lamar University at Port Arthur; Midwestern State
60-5 University; University of North Texas; Texas College of Osteopathic
60-6 Medicine; Stephen F. Austin State University; Texas Southern
60-7 University; Texas Tech University; Texas Tech University Health
60-8 Sciences Center; Texas Woman's University; West Texas State
60-9 University; Angelo State University; Sam Houston State University;
60-10 Southwest Texas State University; Sul Ross State University; Sul
60-11 Ross State University--Uvalde Center; Texas State Technical
60-12 Institute--Amarillo; Texas State Technical Institute--Harlingen;
60-13 Texas State Technical Institute--Sweetwater; and Texas State
60-14 Technical Institute--Waco;
60-15 (xxi) a member of the Texas Higher
60-16 Education Coordinating Board;
60-17 (xxii) a member of the Texas Employment
60-18 Commission;
60-19 (xxiii) a member of the State Banking
60-20 Board;
60-21 (xxiv) a member of the board of trustees
60-22 of the Teachers Retirement System of Texas;
60-23 (xxv) a member of the Credit Union
60-24 Commission;
60-25 (xxvi) a member of the School Land Board;
60-26 (xxvii) a member of the board of the Texas
60-27 Department of Housing and Community Affairs;
61-1 (xxviii) a member of the Texas Racing
61-2 Commission;
61-3 (xxix) a member of the State Board of
61-4 Dental Examiners;
61-5 (xxx) a member of the Texas Board of
61-6 Licensure for Nursing Home Administrators;
61-7 (xxxi) a member of the Texas State Board
61-8 of Medical Examiners;
61-9 (xxxii) a member of the Board of Pardons
61-10 and Paroles;
61-11 (xxxiii) a member of the Texas State Board
61-12 of Pharmacy;
61-13 (xxxiv) the Banking Commissioner of the
61-14 Banking Department of Texas;
61-15 (xxxv) a member of the Department of
61-16 Information Resources Governing Board;
61-17 (xxxvi) the fire fighters' pension
61-18 commissioner;
61-19 (xxxvii) a member of the Texas Motor
61-20 Vehicle Commission;
61-21 (xxxviii) the director of the Office of
61-22 Court Administration of the Texas Judicial System;
61-23 (xxxix) the chief executive of the Office
61-24 of Public Utility Counsel;
61-25 (xl) a member of the Texas Real Estate
61-26 Commission;
61-27 (xli) a member of the board of directors
62-1 and the executive director of the State Bar of Texas;
62-2 (xlii) a member of the Bond Review Board;
62-3 (xliii) a member of the Texas Board of
62-4 Health;
62-5 (xliv) a member of the Texas Board of
62-6 Mental Health and Mental Retardation;
62-7 (xlv) a member of the Texas Board on
62-8 Aging;
62-9 (xlvi) a member of the Texas Board of
62-10 Human Services;
62-11 (xlvii) a member of the Texas Funeral
62-12 Service Commission;
62-13 (xlviii) a member of the board of
62-14 directors of a river authority created under the constitution or
62-15 laws of this state;
62-16 (xlix) the director of the lottery
62-17 division of the Texas Gaming Commission <in the office of the
62-18 comptroller>; <or>
62-19 (l) the deputy in charge of the department
62-20 of security in the lottery division of the Texas Gaming Commission
62-21 <in the office of the comptroller>;
62-22 (li) the director of the bingo division of
62-23 the Texas Gaming Commission;
62-24 (lii) the executive director of the Texas
62-25 Gaming Commission; or
62-26 (liii) a member of the Texas Gaming
62-27 Commission.
63-1 SECTION 47. Section 3, Charitable Raffle Enabling Act
63-2 (Article 179f, Revised Statutes, as added by Chapter 957, Acts of
63-3 the 71st Legislature, Regular Session, 1989), is amended by
63-4 amending Subsection (g) and adding Subsection (k) to read as
63-5 follows:
63-6 (g) A prize offered or awarded at the raffle may not be
63-7 money. Except as provided by Subsection (k) of this section, the
63-8 <The> value of a prize that is offered or awarded at the raffle and
63-9 that is purchased by the organization or for which the organization
63-10 provides any consideration may not exceed $25,000.
63-11 (k) A prize may consist of one or more tickets in the state
63-12 lottery authorized by the State Lottery Act (Article 179g, Vernon's
63-13 Texas Civil Statutes), and its subsequent amendments, with a face
63-14 value of $25,000 or less, without regard to whether a prize in the
63-15 lottery game to which the ticket or tickets relate exceeds $25,000.
63-16 SECTION 48. (a) Sections 2A, 3, 4(b), 11(p) and (q), 16(a),
63-17 21, and 22, Bingo Enabling Act (Article 179d, Vernon's Texas Civil
63-18 Statutes), are repealed.
63-19 (b) Sections 2.01(a)-(i), State Lottery Act (Article 179g,
63-20 Vernon's Texas Civil Statutes), are repealed.
63-21 (c) Section 2.04(j), State Lottery Act (Article 179g,
63-22 Vernon's Texas Civil Statutes), is repealed.
63-23 SECTION 49. (a) Except as provided by Subsection (b) of
63-24 this section, this Act takes effect September 1, 1993.
63-25 (b) Section 48(c) of this Act takes effect August 31, 1993.
63-26 (c) The Texas Gaming Commission is created on September 1,
63-27 1993. In making the initial appointments to the commission, the
64-1 governor shall designate one member for a term expiring in 1995,
64-2 one member for a term expiring in 1997, and one member for a term
64-3 expiring in 1999.
64-4 SECTION 50. (a) As soon as practicable, but not later than
64-5 January 1, 1994:
64-6 (1) all powers, duties, rights, and obligations of the
64-7 Texas Alcoholic Beverage Commission relating to the administration
64-8 and regulation of bingo are transferred to the Texas Gaming
64-9 Commission;
64-10 (2) except as provided by Subsection (b) of this
64-11 section, all assets, liabilities, personnel, equipment, data,
64-12 documents, facilities, and other items of the Texas Alcoholic
64-13 Beverage Commission relating to the administration and regulation
64-14 of bingo are transferred to the Texas Gaming Commission;
64-15 (3) any appropriation to the Texas Alcoholic Beverage
64-16 Commission relating to the administration and regulation of bingo
64-17 is transferred to the Texas Gaming Commission;
64-18 (4) all powers, duties, rights, and obligations of the
64-19 comptroller relating to the administration, operation, and
64-20 regulation of the state lottery are transferred to the Texas Gaming
64-21 Commission;
64-22 (5) except as provided by Subsection (c) of this
64-23 section, all assets, liabilities, personnel, equipment, data,
64-24 documents, facilities, and other items of the comptroller relating
64-25 to the administration, operation, and regulation of the state
64-26 lottery are transferred to the Texas Gaming Commission; and
64-27 (6) any appropriation to the comptroller relating to
65-1 the administration, operation, and regulation of the state lottery
65-2 is transferred to the Texas Gaming Commission.
65-3 (b) The Texas Alcoholic Beverage Commission may decide
65-4 whether to transfer to the Texas Gaming Commission:
65-5 (1) personnel who perform both duties that relate to
65-6 bingo regulation and duties that do not relate to bingo regulation;
65-7 and
65-8 (2) assets used both in bingo regulation and
65-9 activities other than bingo regulation.
65-10 (c) The comptroller may decide whether to transfer to the
65-11 Texas Gaming Commission:
65-12 (1) personnel who perform both duties that relate to
65-13 lottery operations and duties that do not relate to lottery
65-14 operations; and
65-15 (2) assets used both in lottery operations and
65-16 operations other than lottery operations.
65-17 (d) The officers and employees of the Texas Alcoholic
65-18 Beverage Commission and the office of the comptroller shall
65-19 cooperate fully with the reorganization.
65-20 (e) A transfer of functions under Subsection (a) of this
65-21 section shall occur on the date specified in an interagency
65-22 contract between the Texas Gaming Commission and the Texas
65-23 Alcoholic Beverage Commission or the comptroller, as applicable.
65-24 (f) Notwithstanding the changes made by this Act to the
65-25 Bingo Enabling Act (Article 179d, Vernon's Texas Civil Statutes),
65-26 the Texas Alcoholic Beverage Commission retains all powers and
65-27 duties relating to the regulation of bingo until the effective date
66-1 of the transfer under Subsection (a) of this section, and a
66-2 reference in the Bingo Enabling Act (Article 179d, Vernon's Texas
66-3 Civil Statutes) to the Texas Gaming Commission is considered to be
66-4 a reference to the Texas Alcoholic Beverage Commission until that
66-5 date.
66-6 (g) Notwithstanding the changes made by this Act to the
66-7 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
66-8 the comptroller retains all powers and duties relating to the
66-9 operation of the state lottery until the effective date of the
66-10 transfer under Subsection (a) of this section, and a reference in
66-11 the State Lottery Act (Article 179g, Vernon's Texas Civil Statutes)
66-12 to the Texas Gaming Commission is considered to be a reference to
66-13 the comptroller until that date.
66-14 SECTION 51. (a) A change in law made by this Act does not
66-15 affect:
66-16 (1) the validity of any action taken by the Texas
66-17 Alcoholic Beverage Commission under the Bingo Enabling Act (Article
66-18 179d, Vernon's Texas Civil Statutes) before the effective date of
66-19 the change in law;
66-20 (2) the validity of any action taken by the
66-21 comptroller or the lottery division in the office of the
66-22 comptroller under the State Lottery Act (Article 179g, Vernon's
66-23 Texas Civil Statutes) before the effective date of the change in
66-24 law; or
66-25 (3) a civil, criminal, or administrative proceeding
66-26 completed before the effective date of this Act.
66-27 (b) A change in law made by this Act does not affect the
67-1 validity of a civil, criminal, or administrative proceeding,
67-2 including licensing or rulemaking, in progress on the effective
67-3 date of the change in law. A civil, criminal, or administrative
67-4 proceeding under the Bingo Enabling Act (Article 179d, Vernon's
67-5 Texas Civil Statutes) or the State Lottery Act (Article 179g,
67-6 Vernon's Texas Civil Statutes) that is in progress on the effective
67-7 date of a transfer of functions under Section 50 of this Act
67-8 continues as if it had been initiated by the Texas Gaming
67-9 Commission under the law in effect on the effective date of the
67-10 transfer.
67-11 (c) All forms, rules, and procedures adopted by the Texas
67-12 Alcoholic Beverage Commission for the administration and
67-13 enforcement of the Bingo Enabling Act (Article 179d, Vernon's Texas
67-14 Civil Statutes) or by the comptroller for the administration and
67-15 enforcement of the State Lottery Act (Article 179g, Vernon's Texas
67-16 Civil Statutes) and in effect on the effective date of a transfer
67-17 of functions under Section 50 of this Act remain in effect on or
67-18 after that date as if adopted by the Texas Gaming Commission until
67-19 amended, repealed, withdrawn, or otherwise superseded by the Texas
67-20 Gaming Commission. A license issued under the Bingo Enabling Act
67-21 (Article 179d, Vernon's Texas Civil Statutes) or the State Lottery
67-22 Act (Article 179g, Vernon's Texas Civil Statutes) and in effect on
67-23 the effective date of a transfer of functions under Section 50 of
67-24 this Act remains in effect according to its terms as if issued by
67-25 the Texas Gaming Commission until the license expires or is revoked
67-26 or surrendered.
67-27 (d) The change in law made by this Act does not affect taxes
68-1 imposed under the Bingo Enabling Act (Article 179d, Vernon's Texas
68-2 Civil Statutes) before the effective date of this Act, and the law
68-3 in effect before the effective date of this Act is continued in
68-4 effect for purposes of the liability for and collection and
68-5 allocation of those taxes.
68-6 (e) A change in law made by this Act applies only to an
68-7 offense committed on or after September 1, 1993. For the purposes
68-8 of this subsection, an offense is committed before September 1,
68-9 1993, if any element of the offense occurs before that date.
68-10 (f) An offense committed before September 1, 1993, is
68-11 covered by the law in effect when the offense was committed, and
68-12 the former law is continued in effect for this purpose.
68-13 SECTION 52. The importance of this legislation and the
68-14 crowded condition of the calendars in both houses create an
68-15 emergency and an imperative public necessity that the
68-16 constitutional rule requiring bills to be read on three several
68-17 days in each house be suspended, and this rule is hereby suspended.