1-1 By: Harris of Dallas S.B. No. 550
1-2 (In the Senate - Filed March 2, 1993; March 3, 1993, read
1-3 first time and referred to Committee on State Affairs;
1-4 March 11, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; March 11, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Harris of Dallas x
1-10 Rosson x
1-11 Carriker x
1-12 Henderson x
1-13 Leedom x
1-14 Lucio x
1-15 Luna x
1-16 Nelson x
1-17 Patterson x
1-18 Shelley x
1-19 Sibley x
1-20 West x
1-21 Whitmire x
1-22 COMMITTEE SUBSTITUTE FOR S.B. No. 550 By: Harris of Dallas
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to the operation of the state lottery; creating the State
1-26 Lottery Commission.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Sections 1.02(1) and (2), State Lottery Act
1-29 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
1-30 as follows:
1-31 (1) "Commission" means the State Lottery Commission
1-32 <"Director" means the director of the division>.
1-33 (2) "Executive director" means the executive director
1-34 of the commission <"Division" means the lottery division
1-35 established in the office of the comptroller under this Act>.
1-36 SECTION 2. Sections 1.03 and 2.01, State Lottery Act
1-37 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
1-38 as follows:
1-39 Sec. 1.03. Application of Sunset Act. (a) The commission
1-40 <lottery division> is subject to Chapter 325, Government Code
1-41 (Texas Sunset Act). Unless continued in existence as provided by
1-42 that chapter, the commission <division> is abolished and this Act
1-43 expires September 1, 2003.
1-44 (b) A contract between the commission <division> and a
1-45 lottery operator under Section 2.02(g) of this Act must terminate
1-46 on or before September 1, 2004.
1-47 Sec. 2.01. EXECUTIVE DIRECTOR <Lottery Division>. (a) <A
1-48 division to administer a state lottery is created in the office of
1-49 the comptroller. The division is administered by the director.>
1-50 <(b)> The commission <comptroller> shall appoint a person to
1-51 serve as executive director <and chief executive officer of the
1-52 division subject to the comptroller's direction>. The executive
1-53 director holds office at the will of the commission <comptroller>
1-54 and is specifically exempted from the Position Classification Act
1-55 of 1961 (Article 6252-11, Vernon's Texas Civil Statutes). The
1-56 executive director is entitled to receive an annual salary in an
1-57 amount set by the commission <comptroller>. The executive director
1-58 also is entitled to reimbursement for expenses actually and
1-59 necessarily incurred in the performance of the executive director's
1-60 duties.
1-61 (b) <(c)> The executive director may create, abolish,
1-62 transfer, and consolidate bureaus and other units in the commission
1-63 <division> that are not expressly established by law as the
1-64 executive director determines to be necessary for the efficient
1-65 operation of the commission <division>.
1-66 (c) <(d)> Except as otherwise provided by law, the executive
1-67 director may appoint deputies, assistants, other officers and
1-68 employees, committees, and consultants and may prescribe their
2-1 powers and their expenses. Commission <Division> employees serve
2-2 at the will of the executive director. The executive director may
2-3 not employ any person who would be denied a license as a sales
2-4 agent under Section 3.02 of this Act. The executive director may
2-5 not employ or continue to employ any person who owns a financial
2-6 interest in a lottery sales agency or a lottery operator.
2-7 (d) <(e)> The executive director may employ or contract with
2-8 marketing representatives to promote the sale of tickets, to
2-9 encourage persons to apply to become sales agents, or to
2-10 investigate the qualifications of sales agent applicants. The
2-11 marketing representatives are exempted from the Position
2-12 Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
2-13 Statutes) and may be compensated based on a sales incentive system
2-14 to be established by the executive director.
2-15 (e) <(f)> The legislature intends that the commission
2-16 <division> be a self-supporting, revenue-raising agency of state
2-17 government. Except as provided by <Subsection (g) of this section
2-18 or by> Section 13, Chapter 6 <of H.B. No. 54>, Acts of the 72nd
2-19 Legislature, 1st Called Session, 1991, no appropriation, loan, or
2-20 other transfer of state funds may be made to the commission
2-21 <division>.
2-22 <(g) The comptroller may transfer to the division amounts
2-23 appropriated to the comptroller for purposes other than the
2-24 administration of this Act. If the comptroller proposes to
2-25 transfer amounts under this subsection, the comptroller shall
2-26 notify the Legislative Budget Board in writing of the amount of the
2-27 proposed transfer. The comptroller may not make the proposed
2-28 transfer unless the board approves it. If the board does not
2-29 approve or disapprove the proposed transfer before the 10th day
2-30 after the date that the comptroller notifies the board of the
2-31 proposed transfer, the board is considered to have approved the
2-32 transfer. If the board disapproves the proposed transfer, the
2-33 comptroller may request the governor to make a proposal for the
2-34 transfer of an appropriation as provided by Chapter 317, Government
2-35 Code.>
2-36 <(h) The comptroller shall reimburse any amount of an
2-37 appropriation transferred under Subsection (g) of this section to
2-38 the account or fund from which it was transferred. The
2-39 reimbursement must:>
2-40 <(1) be made from funds received by the comptroller
2-41 for license fees and ticket sales under this Act; and>
2-42 <(2) be made not later than the first anniversary of
2-43 the date of the transfer.>
2-44 <(i) The comptroller's authority to transfer funds to the
2-45 division under Subsection (g) of this section expires September 1,
2-46 1993. This subsection and Subsections (g) and (h) of this section
2-47 expire January 1, 1995.>
2-48 (f) <(j)> Commission <Division> employees are specifically
2-49 exempted from the Position Classification Act of 1961 (Article
2-50 6252-11, Vernon's Texas Civil Statutes). The salary of these
2-51 employees shall be set by the executive director.
2-52 (g) <(l)> The legislature intends that advertisements or
2-53 promotions sponsored by the commission <comptroller's office or the
2-54 division> for the lottery not be of a nature that unduly influences
2-55 any person to purchase a lottery ticket or number.
2-56 SECTION 3. Section 2.02, State Lottery Act (Article 179g,
2-57 Vernon's Texas Civil Statutes), is amended to read as follows:
2-58 Sec. 2.02. POWERS AND DUTIES OF EXECUTIVE <COMPTROLLER,>
2-59 DIRECTOR<,> AND COMMISSION <DIVISION>. (a) The commission
2-60 <comptroller> and executive director have broad authority and shall
2-61 exercise strict control and close supervision over all lottery
2-62 games conducted in this state to promote and ensure integrity,
2-63 security, honesty, and fairness in the operation and administration
2-64 of the lottery.
2-65 (b) The commission <comptroller> shall adopt all rules
2-66 necessary to administer this Act. The executive director may
2-67 propose rules to be adopted by the commission <comptroller>, but
2-68 the executive director's proposed rules have no effect until
2-69 adopted by the commission <comptroller>.
2-70 (c) The commission <comptroller> shall adopt rules to the
3-1 extent they are not inconsistent with the Open Meetings Act
3-2 (Article 6252-17, Vernon's Texas Civil Statutes) and the Open
3-3 Records Act (Article 6252-17a, Vernon's Texas Civil Statutes)
3-4 governing the:
3-5 (1) security for the lottery and the commission
3-6 <division>, including the development of an internal security plan;
3-7 (2) apportionment of the total revenues from the sale
3-8 of tickets and from all other sources in the amounts provided by
3-9 this Act;
3-10 (3) enforcement of prohibitions on the sale of tickets
3-11 to or by an individual younger than 18 years of age; and
3-12 (4) enforcement of prohibitions on a person playing a
3-13 lottery game or activity by telephone.
3-14 (d) The commission <comptroller> may adopt rules governing
3-15 the establishment and operation of the lottery, including rules
3-16 governing:
3-17 (1) the type of lottery games or activities to be
3-18 conducted;
3-19 (2) the price of each ticket;
3-20 (3) the number of winning tickets and amount of the
3-21 prize paid on each winning ticket;
3-22 (4) the frequency of the drawing or selection of a
3-23 winning ticket;
3-24 (5) the number and types of locations at which a
3-25 ticket may be sold;
3-26 (6) the method to be used in selling a ticket;
3-27 (7) the use of vending machines or electronic or
3-28 mechanical devices of any kind, other than machines or devices that
3-29 dispense currency or coins as prizes;
3-30 (8) the manner of paying a prize to the holder of a
3-31 winning ticket;
3-32 (9) the investigation of possible violations of this
3-33 Act or any rule adopted under this Act;
3-34 (10) the means of advertising to be used for the
3-35 lottery;
3-36 (11) the qualifications of vendors of lottery services
3-37 or equipment;
3-38 (12) the confidentiality of information relating to
3-39 the operation of the lottery, including:
3-40 (A) trade secrets;
3-41 (B) security measures, systems, or procedures;
3-42 (C) security reports;
3-43 (D) bids or other information regarding the
3-44 commission's <division's> contracts, if disclosure of the
3-45 information would impair the commission's <division's> ability to
3-46 contract for facilities, goods, or services on terms favorable to
3-47 the commission <division>;
3-48 (E) personnel information unrelated to
3-49 compensation, duties, qualifications, or responsibilities; and
3-50 (F) information obtained by commission
3-51 <division> security officers or investigators;
3-52 (13) the development and availability of a model
3-53 agreement governing the division of a prize among multiple
3-54 purchasers of a winning ticket purchased through a group purchase
3-55 or pooling arrangement;
3-56 (14) the criteria to be used in evaluating bids for
3-57 contracts for lottery facilities, goods, and services; or
3-58 (15) any other matter necessary or desirable as
3-59 determined by the commission <comptroller>, to promote and ensure:
3-60 (A) the integrity, security, honesty, and
3-61 fairness of the operation and administration of the lottery; and
3-62 (B) the convenience of players and holders of
3-63 winning tickets.
3-64 (e) If the executive director authorizes a person who is not
3-65 an employee of the commission <division> to sell tickets, the
3-66 person must be licensed as a sales agent by the commission
3-67 <division>. The executive director may establish a provisional
3-68 license or other classes of licenses necessary to regulate and
3-69 administer the quantity and type of lottery games or activities
3-70 provided at each licensed location. Each sales agent shall post a
4-1 cash bond, surety bond, letter of credit, certificate of deposit,
4-2 or other security approved by the executive director, including the
4-3 contribution of cash to a pooled bond fund established by the
4-4 executive director to protect the state from possible losses. The
4-5 amount of the security shall be determined by the executive
4-6 director and shall reflect the possible losses to the state from
4-7 the operation of the sales agent. The executive director may also
4-8 require a sales agent to maintain insurance if necessary to protect
4-9 the interests of the state. As prescribed by rule <division
4-10 rules>, each sales agent shall prominently display the license in
4-11 each place of business or activity at which the sales agent sells
4-12 tickets.
4-13 (f) The commission <comptroller> shall make an annual report
4-14 to the governor and the legislature that provides a summary of
4-15 lottery revenues, prize disbursements, and other expenses for the
4-16 fiscal year preceding the report. The report must be in the form
4-17 and reported in the time provided by the General Appropriations
4-18 Act.
4-19 (g) The executive director may contract with or employ a
4-20 person to perform a function, activity, or service in connection
4-21 with the operation of the lottery as prescribed by the executive
4-22 director. A person with whom the executive director contracts to
4-23 operate a lottery must be eligible for a sales agent license under
4-24 Section 3.02 of this Act.
4-25 (h) <A contract for independent consulting, management
4-26 services, or activities related to the establishment or
4-27 implementation of lottery operations is not subject to:>
4-28 <(1) the State Purchasing and General Services Act
4-29 (Article 601b, Vernon's Texas Civil Statutes);>
4-30 <(2) the Professional Services Procurement Act
4-31 (Article 664-4, Vernon's Texas Civil Statutes);>
4-32 <(3) Chapter 454, Acts of the 65th Legislature,
4-33 Regular Session, 1977 (Article 6252-11c, Vernon's Texas Civil
4-34 Statutes); or>
4-35 <(4) the Information Resources Management Act (Article
4-36 4413(32j), Revised Statutes).>
4-37 <(i) This subsection and Subsection (h) of this section
4-38 expire September 1, 1993.>
4-39 <(j)> Each lottery operator's and sales agent's records are
4-40 subject to audit by the commission <division, the comptroller,> and
4-41 the state auditor. For the purpose of carrying out this Act, the
4-42 executive director<, comptroller,> or state auditor may examine all
4-43 books, records, papers, or other objects that the executive
4-44 director<, comptroller,> or state auditor determines are necessary
4-45 for conducting a complete examination under this Act and may also
4-46 examine under oath any officer, director, or employee of a lottery
4-47 operator or sales agent. The executive director<, comptroller,> or
4-48 state auditor may conduct an examination at the principal office or
4-49 any other office of the lottery operator or sales agent or may
4-50 require the lottery operator or sales agent to produce the records
4-51 at the office of the commission <division, comptroller,> or state
4-52 auditor. If a sales agent refuses to permit an examination or to
4-53 answer any question authorized by this subsection, the executive
4-54 director <comptroller> may summarily suspend the license of the
4-55 sales agent under Section 3.03 of this Act until the examination is
4-56 completed as required. Section 321.013(h), Government Code, does
4-57 not apply to an audit of a lottery operator or sales agent.
4-58 (i) <(k)> The commission <comptroller> shall adopt rules
4-59 prohibiting the operation of any game using a video lottery machine
4-60 or machine. As used in this subsection "video lottery machine" or
4-61 "machine" means any electronic video game machine that, upon
4-62 insertion of cash, is available to play or simulate the play of a
4-63 video game, including but not limited to video poker, keno, and
4-64 blackjack, utilizing a video display and microprocessors in which
4-65 the player may receive free games or credits that can be redeemed
4-66 for cash, coins or tokens, or that directly dispenses cash, coins,
4-67 or tokens.
4-68 SECTION 4. Section 2.03(a), State Lottery Act (Article 179g,
4-69 Vernon's Texas Civil Statutes), is amended to read as follows:
4-70 (a) The executive director or a lottery operator may not
5-1 establish or operate a lottery game or activity in which the winner
5-2 is chosen on the basis of the outcome of a sports event.
5-3 SECTION 5. Sections 2.04(a)-(f), (h), and (k), State Lottery
5-4 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
5-5 read as follows:
5-6 (a) The executive director may establish procedures for the
5-7 purchase or lease of facilities, goods, and services and make any
5-8 purchases, leases, or contracts that are necessary for carrying out
5-9 the purposes of this Act. The procedures shall, as determined
5-10 feasible and appropriate by the executive director, promote
5-11 competition to the maximum extent possible. In all procurement
5-12 decisions, the executive director shall take into account the
5-13 particularly sensitive nature of the lottery and shall act to
5-14 promote and ensure integrity, security, honesty, and fairness in
5-15 the operation and administration of the lottery and the objective
5-16 of producing revenues for the state treasury.
5-17 (b) The executive director may not award a contract for the
5-18 purchase or lease of facilities, goods, or services related to
5-19 lottery operations to a person who would be denied a license as a
5-20 sales agent under Section 3.02 of this Act.
5-21 (c) The procurement procedures adopted by the executive
5-22 director shall, as determined feasible and appropriate by the
5-23 executive director, afford any party who is aggrieved by the terms
5-24 of a solicitation or the award of a contract an opportunity to
5-25 protest the executive director's action to the commission
5-26 <comptroller>. The protest procedures shall provide for an
5-27 expedient resolution of the protest in order to avoid substantially
5-28 delaying a solicitation or contract award that is necessary for the
5-29 timely implementation of a lottery game. A protest must be in
5-30 writing and be filed with the commission <comptroller> not later
5-31 than 72 hours after receipt of notice of the executive director's
5-32 action.
5-33 (d) A party who is aggrieved by the commission's
5-34 <comptroller's> resolution of a protest under Subsection (c) of
5-35 this section may file an action in the district court of Travis
5-36 County. The court shall give preference to hearings and trials of
5-37 actions under this section. If the party filing the action seeks
5-38 to enjoin the implementation of a solicitation or contract, the
5-39 party shall post a bond that is payable to the state if the party
5-40 does not prevail in the appeal, and is in an amount sufficient to
5-41 compensate the state for the revenue that would be lost due to the
5-42 delay in lottery operations.
5-43 (e) A contract for the acquisition or provision of
5-44 facilities, supplies, equipment, materials, or services related to
5-45 the operation of the lottery shall provide for liquidated damages
5-46 and a performance bond in an amount equal to the executive
5-47 director's best available estimate of the revenue that would be
5-48 lost if the contractor fails to meet deadlines specified in the
5-49 contract.
5-50 (f) On request of the executive director, the <State
5-51 Purchasing and> General Services Commission shall assist the
5-52 executive director in:
5-53 (1) acquiring facilities, supplies, materials,
5-54 equipment, and services under the State Purchasing and General
5-55 Services Act (Article 601b, Vernon's Texas Civil Statutes); or
5-56 (2) establishing procedures for the executive
5-57 director's accelerated acquisition of facilities, supplies,
5-58 materials, equipment, and services for the operation of the
5-59 lottery.
5-60 (h) Notwithstanding the provisions of the Public Utility
5-61 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
5-62 commission <comptroller> may negotiate rates and execute contracts
5-63 with telecommunications service providers for the interexchange
5-64 services necessary for the operation of the lottery. The
5-65 commission <comptroller> may acquire transmission facilities by
5-66 lease, purchase, or lease-purchase. The acquisition of
5-67 transmission facilities shall be done on a competitive bid basis if
5-68 possible.
5-69 (k) The commission <comptroller> shall require any person
5-70 seeking to contract for goods or services relating to the
6-1 implementation and administration of this Act to submit to
6-2 competitive bidding procedures in accordance with rules established
6-3 by the commission <comptroller>. Such procedures shall be for the
6-4 purpose of insuring fairness and integrity.
6-5 SECTION 6. Section 2.05(a), State Lottery Act (Article 179g,
6-6 Vernon's Texas Civil Statutes), is amended to read as follows:
6-7 (a) In all contracts for lottery equipment, supplies,
6-8 services, and advertising, the commission <division> and each
6-9 lottery operator shall give preference to equipment or supplies
6-10 produced in this state or services or advertising offered by
6-11 bidders from this state, the cost to the state and quality being
6-12 equal.
6-13 SECTION 7. Sections 2.06(a) and (c), State Lottery Act
6-14 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
6-15 as follows:
6-16 (a) The executive director<, the division,> and each lottery
6-17 operator shall take positive steps to:
6-18 (1) inform minority businesses of opportunities to:
6-19 (A) provide lottery equipment and supplies to
6-20 the commission <division>;
6-21 (B) provide services, including advertising, to
6-22 the commission <division> for the operation of the lottery; or
6-23 (C) obtain a license to sell lottery tickets;
6-24 (2) waive or modify bond requirements, if feasible;
6-25 (3) award contracts for lottery equipment or supplies
6-26 to minority businesses when possible;
6-27 (4) award contracts for lottery services, including
6-28 advertising, to minority businesses when possible;
6-29 (5) license minority businesses as sales agents;
6-30 (6) monitor the effectiveness of the efforts to
6-31 increase the ability of minority businesses to do business with the
6-32 commission <division>; and
6-33 (7) require all bidders or contractors, when
6-34 appropriate, to include specific plans or arrangements to utilize
6-35 subcontracts with minority businesses.
6-36 (c) The commission <comptroller> shall annually report to
6-37 the legislature and the governor on the level of minority business
6-38 participation as pertains to both the commission's <division's>
6-39 contracts and the licensure of sales agents. The report shall
6-40 include recommendations for the improvement of minority business
6-41 opportunities in lottery-related business.
6-42 SECTION 8. Sections 2.07-2.11, State Lottery Act (Article
6-43 179g, Vernon's Texas Civil Statutes), are amended to read as
6-44 follows:
6-45 Sec. 2.07. Television Contracts. If the drawing or
6-46 selection of winning tickets is televised under a contract with the
6-47 commission <division>, the contract must be awarded by competitive
6-48 bid. The commission <comptroller> shall adopt rules governing the
6-49 competitive bidding process. Money received under the contract
6-50 shall be deposited in the state lottery account established under
6-51 Section 5.02 of this Act.
6-52 Sec. 2.08. Publicity of Individuals Prohibited. A state
6-53 officer <or employee>, including a commission member or <the
6-54 comptroller,> the executive director, or an officer or employee of
6-55 the commission <comptroller's office or the division,> may not
6-56 appear in an advertisement or promotion for the lottery that is
6-57 sponsored by the commission <comptroller's office or the division>
6-58 or in a televised lottery drawing. An advertisement or promotion
6-59 for the lottery may not contain the likeness or name of a state
6-60 officer <or employee>, including a commission member or <the
6-61 comptroller,> the executive director, or an officer or employee of
6-62 the commission <comptroller's office or the division>. In
6-63 connection with providing security for the lottery, this section
6-64 shall not prohibit a security officer or investigator employed by
6-65 the commission <division> from appearing in a televised lottery
6-66 drawing or other promotion for the lottery that is sponsored by the
6-67 commission <comptroller's office or the division>. Notwithstanding
6-68 the provisions of this section, the executive director may
6-69 designate an employee of the commission <division> to participate
6-70 in a promotional event<, the purpose of which is to award a prize>.
7-1 Sec. 2.09. Audit. The executive director shall provide for
7-2 a certified public accountant to conduct an independent audit for
7-3 each fiscal year of all accounts and transactions of the lottery.
7-4 The certified public accountant may not have, as determined by the
7-5 executive director, a significant financial interest in a sales
7-6 agent, lottery vendor, or lottery operator. The certified public
7-7 accountant shall present an audit report to the executive director,
7-8 the commission <comptroller>, the governor, and the legislature not
7-9 later than April 1 of the year following the fiscal year for which
7-10 the audit was performed. The report must contain recommendations
7-11 to enhance the earnings capability of the lottery and improve the
7-12 efficiency of lottery operations. The state auditor may review the
7-13 results of and working papers related to the audit.
7-14 Sec. 2.10. Investigations. The attorney general, the
7-15 district attorney for Travis County, or the district attorney,
7-16 criminal district attorney, or county attorney performing the
7-17 duties of district attorney for the county in which the violation
7-18 or alleged violation occurred may investigate a violation or
7-19 alleged violation of this Act and of the penal laws of this state
7-20 by the commission <division> or its employees, a sales agent, a
7-21 lottery vendor, or a lottery operator.
7-22 Sec. 2.11. Enforcement. (a) The executive director
7-23 <comptroller> or designated personnel of the commission <division>
7-24 may investigate violations of this Act and violations of the rules
7-25 adopted under this Act. After conducting investigations, the
7-26 executive director <comptroller>, a person designated by the
7-27 commission <comptroller>, or any law enforcement agency may file a
7-28 complaint with the district attorney of Travis County or with the
7-29 district attorney of the county in which a violation is alleged to
7-30 have occurred.
7-31 (b) The executive director <comptroller> has the
7-32 administrative, enforcement, and collection powers provided by
7-33 Subtitle B, Title 2, Tax Code, in regard to the lottery. For
7-34 purposes of the application of Title 2 of the Tax Code:
7-35 (1)<,> the state's share of proceeds from the sale of
7-36 lottery tickets is treated as if it were a tax; and
7-37 (2) a power granted to the comptroller may be
7-38 exercised by the commission.
7-39 SECTION 9. Article 2, State Lottery Act (Article 179g,
7-40 Vernon's Texas Civil Statutes), is amended by adding Section 2.111
7-41 to read as follows:
7-42 Sec. 2.111. VENUE. Venue is proper in Travis County or any
7-43 county in which venue is proper under Chapter 13, Code of Criminal
7-44 Procedure, and its subsequent amendments for:
7-45 (1) an offense under this Act;
7-46 (2) an offense under the Penal Code, if the accused:
7-47 (A) is a lottery operator, lottery vendor, sales
7-48 agent, or employee of the division; and
7-49 (B) is alleged to have committed the offense
7-50 while engaged in lottery activities; or
7-51 (3) an offense that involves property consisting of or
7-52 including lottery tickets under Title 7 or 11, Penal Code, and its
7-53 subsequent amendments.
7-54 SECTION 10. Sections 2.12(a)-(f), State Lottery Act (Article
7-55 179g, Vernon's Texas Civil Statutes), are amended to read as
7-56 follows:
7-57 (a) The executive director shall maintain a department of
7-58 security in the commission <division>. The executive director
7-59 shall appoint a deputy to administer the department. The deputy
7-60 must be qualified by training and experience in law enforcement or
7-61 security to supervise, direct, and administer the activities of the
7-62 department.
7-63 (b) The executive director may employ security officers or
7-64 investigators as the executive director considers necessary and may
7-65 commission security officers or investigators as peace officers.
7-66 The deputy and all investigators employed by the department of
7-67 security as peace officers must meet the requirements under Chapter
7-68 415, Government Code, for employment and commission as peace
7-69 officers.
7-70 (c) A security officer or investigator employed by the
8-1 department of security or a peace officer who is working in
8-2 conjunction with the commission <comptroller> or the Department of
8-3 Public Safety in the enforcement of this Act, without a search
8-4 warrant, may search and seize a lottery vending machine, lottery
8-5 computer terminal, or other lottery equipment that is located on
8-6 premises for which a person holds a sales agent license issued
8-7 under this Act.
8-8 (d) The Department of Public Safety, at the commission's
8-9 <comptroller's> request, shall perform a full criminal background
8-10 investigation of a prospective deputy or investigator of the
8-11 department of security. The commission <comptroller> shall
8-12 reimburse the Department of Public Safety for the actual costs of
8-13 an investigation.
8-14 (e) At least once every two years, the executive director
8-15 shall employ an independent firm that is experienced in security,
8-16 including computer security and systems security, to conduct a
8-17 comprehensive study of all aspects of lottery security, including:
8-18 (1) lottery personnel security;
8-19 (2) sales agent security;
8-20 (3) lottery operator and vendor security;
8-21 (4) security against ticket counterfeiting and
8-22 alteration and other means of fraudulent winning;
8-23 (5) security of lottery drawings;
8-24 (6) lottery computer, data communications, database,
8-25 and systems security;
8-26 (7) lottery premises and warehouse security;
8-27 (8) security of distribution of tickets;
8-28 (9) security of validation and payment procedures;
8-29 (10) security involving unclaimed prizes;
8-30 (11) security aspects of each lottery game;
8-31 (12) security against the deliberate placement of
8-32 winning tickets in lottery games that involve preprinted winning
8-33 tickets by persons involved in the production, storage,
8-34 transportation, or distribution of tickets; and
8-35 (13) other security aspects of lottery operations.
8-36 (f) The executive director shall provide the commission
8-37 <comptroller> with a complete report of the security study
8-38 conducted under Subsection (e) of this section. The commission
8-39 <comptroller> shall provide the governor and the legislature,
8-40 before the convening of each regular legislative session, with a
8-41 summary of the security study that shows the overall evaluation of
8-42 the lottery's security.
8-43 SECTION 11. Sections 2.13 and 2.14, State Lottery Act
8-44 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
8-45 as follows:
8-46 Sec. 2.13. DEMOGRAPHIC STUDIES. (a) The executive director
8-47 shall, every two years, employ an independent firm experienced in
8-48 demographic analysis to conduct a demographic study of lottery
8-49 players. The study shall include the income, age, sex, race,
8-50 education, and frequency of participation of players.
8-51 (b) The executive director shall report the results of the
8-52 demographic study conducted under Subsection (a) of this section to
8-53 the commission <comptroller>, the governor, and the legislature
8-54 before the convening of each regular legislative session.
8-55 Sec. 2.14. Confidential Information. The following
8-56 information is confidential and is exempt from disclosure under the
8-57 open records law, Chapter 424, Acts of the 63rd Legislature,
8-58 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
8-59 Statutes):
8-60 (1) security plans and procedures of the commission
8-61 <division or the office of the comptroller> designed to ensure the
8-62 integrity and security of the operation of the lottery;
8-63 (2) information of a nature that is designed to ensure
8-64 the integrity and security of the selection of winning tickets or
8-65 numbers in the lottery, other than information describing the
8-66 general procedures for selecting winning tickets or numbers; and
8-67 (3) the street address and telephone number of a prize
8-68 winner, if the prize winner has not consented to the release of the
8-69 information.
8-70 SECTION 12. Section 2.15(b), State Lottery Act (Article
9-1 179g, Vernon's Texas Civil Statutes), is amended to read as
9-2 follows:
9-3 (b) An investigation report or other document submitted by
9-4 the Department of Public Safety to the commission <division>
9-5 becomes part of the investigative files of the commission
9-6 <division> and is subject to discovery by a person that is the
9-7 subject of the investigation report or other document.
9-8 SECTION 13. The State Lottery Act (Article 179g, Vernon's
9-9 Texas Civil Statutes) is amended by adding Article 2A to read as
9-10 follows:
9-11 ARTICLE 2A. STATE LOTTERY COMMISSION
9-12 Sec. 2A.01. MEMBERSHIP. (a) The State Lottery Commission
9-13 is composed of three members appointed by the governor with the
9-14 advice and consent of the senate.
9-15 (b) In making appointments to the commission, the governor
9-16 shall strive to achieve representation by all the population groups
9-17 of the state with regard to economic status, sex, race, and
9-18 ethnicity.
9-19 Sec. 2A.02. TERM OF OFFICE. Members hold office for
9-20 staggered terms of six years with one member's term expiring
9-21 February 1 of each odd-numbered year.
9-22 Sec. 2A.03. RESIDENCE REQUIREMENT. An individual is not
9-23 eligible to be a member of the commission unless the individual has
9-24 been a resident of this state for at least 10 consecutive years
9-25 immediately before appointment.
9-26 Sec. 2A.04. ELIGIBILITY. (a) An individual is not eligible
9-27 to be an appointed member of the commission if the individual:
9-28 (1) owns or controls, directly or indirectly, more
9-29 than a 10 percent interest in a business entity or other
9-30 organization regulated by the commission or receiving funds from
9-31 the commission;
9-32 (2) is employed by or participates in the management
9-33 of a business entity or other organization regulated by the
9-34 commission or receiving funds from the commission;
9-35 (3) uses or receives a substantial amount of tangible
9-36 goods, services, or funds from the commission, other than
9-37 compensation or reimbursement authorized by law for commission
9-38 membership, attendance, or expenses;
9-39 (4) is an officer, employee, or paid consultant of a
9-40 Texas trade association in the lottery business;
9-41 (5) is required to register as a lobbyist under
9-42 Chapter 305, Government Code, and its subsequent amendments because
9-43 of the person's activities for compensation on behalf of a
9-44 profession related to the operation of the commission;
9-45 (6) is married to an individual described by
9-46 Subdivisions (1)-(5);
9-47 (7) has been convicted of a felony or of any crime
9-48 involving moral turpitude; or
9-49 (8) is not a citizen of the United States.
9-50 (b) In this section, "Texas trade association" means a
9-51 nonprofit, cooperative, and voluntarily joined association of
9-52 business or professional competitors in this state designed to
9-53 assist its members and its industry or profession in dealing with
9-54 mutual business or professional problems and in promoting their
9-55 common interest.
9-56 Sec. 2A.05. PROHIBITED CONDUCT. (a) A commission member
9-57 may not:
9-58 (1) accept any employment or remuneration from a
9-59 person that has a significant financial interest in the lottery;
9-60 (2) play any lottery game conducted in this state;
9-61 (3) accept or be entitled to accept any part of the
9-62 winnings to be paid from a lottery game conducted in this state;
9-63 (4) use the member's official authority to affect the
9-64 result of an election or nomination for public office; or
9-65 (5) directly or indirectly coerce, attempt to coerce,
9-66 command, or advise a person to pay, lend, or contribute anything of
9-67 value to another person for political purposes.
9-68 (b) A commission member or former commission member or the
9-69 spouse of a commission member or former commission member may not
9-70 solicit or accept employment from a person regulated by the
10-1 commission before the second anniversary of the date on which the
10-2 commission member's service on the commission ends.
10-3 (c) In this section, "person that has a significant
10-4 financial interest in the lottery" has the meaning assigned by
10-5 Section 4.06 of this Act.
10-6 Sec. 2A.06. REMOVAL OF COMMISSION MEMBER. (a) The governor
10-7 may remove a commission member if the member:
10-8 (1) does not have at the time of appointment the
10-9 qualifications required for appointment to the commission;
10-10 (2) does not maintain during service on the commission
10-11 the qualifications required for appointment to the commission;
10-12 (3) violates a prohibition established by Section
10-13 2A.05 of this Act;
10-14 (4) cannot discharge the member's duties for a
10-15 substantial part of the term for which the member is appointed
10-16 because of illness or disability; or
10-17 (5) is absent from more than half of the regularly
10-18 scheduled commission meetings that the member is eligible to attend
10-19 during a calendar year unless the absence is excused by majority
10-20 vote of the commission.
10-21 (b) The validity of an action of the commission is not
10-22 affected by the fact that it is taken when a ground for removal of
10-23 a commission member exists.
10-24 (c) If the presiding officer has knowledge that a potential
10-25 ground for removal exists, the presiding officer shall notify the
10-26 governor.
10-27 Sec. 2A.07. COMPENSATION AND EXPENSES. (a) A commission
10-28 member is not entitled to compensation for serving on the
10-29 commission.
10-30 (b) A commission member is entitled to reimbursement for
10-31 actual and necessary expenses incurred in performing the member's
10-32 duties, subject to any applicable limitation in the General
10-33 Appropriations Act.
10-34 Sec. 2A.08. OFFICES. The commission shall maintain its
10-35 general office in the city of Austin. The commission may also
10-36 establish branch offices.
10-37 Sec. 2A.09. PRESIDING OFFICER. The governor shall designate
10-38 one member of the commission as presiding officer of the commission
10-39 to serve in that capacity at the pleasure of the governor.
10-40 Sec. 2A.10. MEETINGS. The commission shall hold at least
10-41 six regular meetings each year on dates fixed by the commission.
10-42 The commission may meet at other times at the call of the presiding
10-43 officer or as provided by commission rule.
10-44 Sec. 2A.11. POWERS AND DUTIES OF COMMISSION. The commission
10-45 shall:
10-46 (1) oversee the executive director's administration of
10-47 this Act;
10-48 (2) approve the operating budget of the commission and
10-49 the commission's request for appropriations; and
10-50 (3) appoint the members of any advisory committees to
10-51 the commission.
10-52 SECTION 14. Sections 3.01(a)-(c), (f), and (g), State
10-53 Lottery Act (Article 179g, Vernon's Texas Civil Statutes), are
10-54 amended to read as follows:
10-55 (a) The executive director shall attempt to license minority
10-56 businesses as sales agents in at least 20 percent of the licenses
10-57 issued. Implementation of this subsection must be consistent with
10-58 the rest of this section.
10-59 (b) The executive director may license as a sales agent each
10-60 person the executive director believes will best serve the public
10-61 convenience. The executive director may not issue a license to a
10-62 person to engage in business exclusively as a sales agent. A
10-63 license may not be transferred or assigned to any other person or
10-64 location.
10-65 (c) An applicant for a license under this section must apply
10-66 to the commission <division> under rules prescribed by the
10-67 commission <comptroller>, provide information necessary to
10-68 determine the applicant's eligibility for a license under Section
10-69 3.02 of this Act, and provide other information considered
10-70 necessary by the executive director <comptroller>. The applicant
11-1 must include an application fee with each application. The
11-2 executive director shall set the application fee in an amount that
11-3 is at least sufficient to cover the costs incurred by the
11-4 commission <division> and by the Department of Public Safety to
11-5 process the application. The executive director shall determine
11-6 from information provided by the Department of Public Safety the
11-7 amount required for costs incurred by the department and shall
11-8 allocate those amounts to the department at least monthly. If the
11-9 executive director denies an application for a license based on a
11-10 factor listed in Subsection (f) of this section, the executive
11-11 director shall refund one-half of the application fee to the
11-12 applicant. If the executive director denies an application based
11-13 on another factor, the executive director may not refund any part
11-14 of the application fee. Applications for licenses must be
11-15 available for public inspection during regular office hours.
11-16 (f) The commission <comptroller> shall adopt rules under
11-17 which, before issuing a license to an applicant, the executive
11-18 director shall consider:
11-19 (1) the financial responsibility and security of the
11-20 applicant and the business or activity in which the applicant is
11-21 engaged;
11-22 (2) the public accessibility of the applicant's place
11-23 of business or activity;
11-24 (3) the sufficiency of existing sales agents to serve
11-25 the public convenience;
11-26 (4) whether individuals under 18 years of age
11-27 constitute a majority of the applicant's customers or as customers
11-28 provide a majority of the applicant's sales volume;
11-29 (5) the volume of expected sales; and
11-30 (6) any other factor that the executive director
11-31 considers appropriate.
11-32 (g) The executive director may issue a license to a person
11-33 only if the executive director finds that the person's experience,
11-34 character, and general fitness are such that the person's
11-35 participation as a sales agent will not detract from the integrity,
11-36 security, honesty, and fairness of the operation of the lottery.
11-37 SECTION 15. Sections 3.02(a)-(d) and (f)-(i), State Lottery
11-38 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
11-39 read as follows:
11-40 (a) After a hearing, the executive director shall deny an
11-41 application for a license or the commission <comptroller> shall
11-42 suspend or revoke a license if the executive director or commission
11-43 <comptroller>, as applicable, finds that the applicant or sales
11-44 agent:
11-45 (1) is an individual who:
11-46 (A) has been convicted of a felony, criminal
11-47 fraud, gambling or a gambling-related offense, or a misdemeanor
11-48 involving moral turpitude, if less than 10 years has elapsed since
11-49 the termination of the sentence, parole, mandatory supervision, or
11-50 probation served for the offense;
11-51 (B) is or has been a professional gambler; <or>
11-52 (C) is married to <or related in the first
11-53 degree of consanguinity or affinity to> an individual:
11-54 (i) described in Paragraph (A) or (B) of
11-55 this subdivision; or
11-56 (ii) who is currently delinquent in the
11-57 payment of any state tax; or
11-58 (D) is an officer or employee of the commission
11-59 or a lottery operator; or
11-60 (E) is a spouse, child, brother, sister, or
11-61 parent residing as a member of the same household in the principal
11-62 place of residence of a person described by Paragraph (D) of this
11-63 subdivision;
11-64 (2) is not an individual, and an individual described
11-65 in Subdivision (1) of this subsection:
11-66 (A) is an officer or director of the applicant
11-67 or sales agent;
11-68 (B) holds more than 10 percent of the stock in
11-69 the applicant or sales agent;
11-70 (C) holds an equitable interest greater than 10
12-1 percent in the applicant or sales agent;
12-2 (D) is a creditor of the applicant or sales
12-3 agent who holds more than 10 percent of the applicant's or sales
12-4 agent's outstanding debt;
12-5 (E) is the owner or lessee of a business that
12-6 the applicant or sales agent conducts or through which the
12-7 applicant will conduct a ticket sales agency;
12-8 (F) shares or will share in the profits, other
12-9 than stock dividends, of the applicant or sales agent; or
12-10 (G) participates in managing the affairs of the
12-11 applicant or sales agent; <or>
12-12 <(H) is an employee of the applicant or sales
12-13 agent who is or will be involved in:>
12-14 <(i) selling tickets; or>
12-15 <(ii) handling money from the sale of
12-16 tickets;>
12-17 (3) is currently delinquent in the payment of any
12-18 state tax;
12-19 (4) is a person whose location for the sales agency
12-20 is:
12-21 (A) a racetrack at which wagering is authorized
12-22 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
12-23 Statutes);
12-24 (B) a location licensed for games of bingo under
12-25 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
12-26 Statutes);
12-27 (C) on land that is owned by:
12-28 (i) this state; or
12-29 (ii) a political subdivision of this
12-30 state, other than land used as a mass transportation facility that
12-31 is used by commercial carriers; or
12-32 (D) a location for which a person holds a wine
12-33 and beer retailer's permit, mixed beverage permit, mixed beverage
12-34 late hours permit, private club registration permit, or private
12-35 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
12-36 Alcoholic Beverage Code; or
12-37 (5) has violated this Act or a rule adopted under this
12-38 Act.
12-39 (b) Except as provided by Subsection (c) of this section, an
12-40 applicant or sales agent shall notify the executive director of any
12-41 change in the information in the applicant's or sales agent's most
12-42 recent application for a license or renewal of a license. The
12-43 applicant or sales agent shall notify the executive director of the
12-44 change in the information not later than the 10th day after the
12-45 date of the change.
12-46 (c) A corporate applicant or sales agent is not required to
12-47 notify the executive director under Subsection (b) of this section
12-48 of a transfer of less than 10 percent of the corporate stock unless
12-49 the transfer results in a shareholder who previously held 10
12-50 percent or less of the stock holding more than 10 percent of the
12-51 stock.
12-52 (d) If the executive director proposes to deny an
12-53 application for a license or the commission <comptroller> proposes
12-54 to suspend or revoke a license under this section, the applicant or
12-55 sales agent is entitled to written notice of the time and place of
12-56 the hearing. A notice may be served on an applicant or sales agent
12-57 personally or sent by certified or registered mail, return receipt
12-58 requested, to the person's mailing address as it appears on the
12-59 commission's <division's> records. A notice must be served or
12-60 mailed not later than the 20th day before the date of the hearing.
12-61 (f) The Administrative Procedure and Texas Register Act
12-62 (Article 6252-13a, Vernon's Texas Civil Statutes) applies to a
12-63 hearing under this section. An administrative law judge of the
12-64 State Office of Administrative Hearings shall conduct the hearing
12-65 as provided by Chapter 591, Acts of the 72nd Legislature, Regular
12-66 Session, 1991 (Article 6252-13f, Vernon's Texas Civil Statutes).
12-67 The commission may review the decision of an administrative law
12-68 judge as provided by the Administrative Procedure and Texas
12-69 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
12-70 (g) The executive director shall give an applicant or sales
13-1 agent written notice of a denial of an application or a suspension
13-2 or revocation of a license.
13-3 (h) The executive director may not issue a license to a
13-4 person who has previously had a license under this Act revoked
13-5 unless the executive director is satisfied the person will comply
13-6 with this Act and the rules adopted under this Act. The executive
13-7 director may prescribe the terms under which a suspended license
13-8 will be reissued.
13-9 (i) The executive director shall not issue a license to sell
13-10 lottery tickets to applicants who fail to certify to the executive
13-11 director the applicant's compliance with the federal Americans With
13-12 Disabilities Act.
13-13 SECTION 16. Section 3.03, State Lottery Act (Article 179g,
13-14 Vernon's Texas Civil Statutes), is amended to read as follows:
13-15 Sec. 3.03. Summary Suspension of License. (a) The
13-16 commission <comptroller> may suspend a sales agent's license
13-17 summarily without notice or hearing if the commission <comptroller>
13-18 finds that the action is necessary to maintain the integrity,
13-19 security, honesty, or fairness of the operation or administration
13-20 of the lottery or to prevent financial loss to the state and:
13-21 (1) the sales agent fails to deposit money received
13-22 from ticket sales under Section 5.01 of this Act;
13-23 (2) an event occurs that would render the sales agent
13-24 ineligible for a license under Section 3.02 of this Act;
13-25 (3) the sales agent refuses to permit the executive
13-26 director, the commission <comptroller>, or the state auditor to
13-27 examine the agent's books, records, papers, or other objects under
13-28 Section 2.02(h) <2.02(j)> of this Act; or
13-29 (4) the executive director learns the sales agent has
13-30 failed to disclose information that would, if disclosed, render the
13-31 sales agent ineligible for a license under Section 3.02 of this
13-32 Act.
13-33 (b) The commission <comptroller> may summarily suspend a
13-34 sales agent's license if proceedings for a preliminary hearing
13-35 before an administrative law judge of the State Office of
13-36 Administrative Hearings <the comptroller or the comptroller's
13-37 representative> are initiated simultaneously with the summary
13-38 suspension. The preliminary hearing shall be set for a date not
13-39 later than 10 days after the date of the summary suspension, unless
13-40 the parties agree to a later date.
13-41 (c) At the preliminary hearing, the sales agent must show
13-42 cause why the license should not remain suspended pending a final
13-43 hearing on suspension or revocation. The Administrative Procedure
13-44 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
13-45 Statutes) does not apply <to the comptroller> in the administration
13-46 and enforcement of the summary suspension of a license under this
13-47 section. The rules governing a hearing on any other license
13-48 suspension or revocation under this Act govern a final
13-49 administrative hearing under this subsection.
13-50 (d) To initiate a proceeding to summarily suspend a sales
13-51 agent's license, the commission <comptroller> must serve notice to
13-52 the sales agent informing the agent of the right to a preliminary
13-53 hearing <before the comptroller or the comptroller's
13-54 representative> and of the time and place of the preliminary
13-55 hearing. The notice must be personally served on the sales agent
13-56 or an officer, employee, or agent of the sales agent or sent by
13-57 certified or registered mail, return receipt requested, to the
13-58 sales agent's mailing address as it appears on the commission's
13-59 <division's> records. The notice must state the alleged violations
13-60 that constitute grounds for summary suspension. The suspension is
13-61 effective at the time the notice is served. If notice is served in
13-62 person, the sales agent shall immediately surrender the license to
13-63 the commission <comptroller or to the comptroller's
13-64 representative>. If notice is served by mail, the sales agent
13-65 shall immediately return the license to the commission
13-66 <comptroller>. If the sales agent uses an on-line electronic
13-67 terminal to sell tickets, the executive director or a lottery
13-68 operator on the instructions of the executive director may
13-69 terminate the connection of the terminal to the commission's
13-70 <division's> lottery computer at the time:
14-1 (1) the proceeding to summarily suspend the license is
14-2 initiated; or
14-3 (2) the division discovers the sales agent has failed
14-4 to deposit money received from ticket sales, if the sales agent's
14-5 license is being summarily suspended under Subsection (a)(1) of
14-6 this section.
14-7 SECTION 17. Section 3.05(b), State Lottery Act (Article
14-8 179g, Vernon's Texas Civil Statutes), is amended to read as
14-9 follows:
14-10 (b) If a license expires under Subsection (a) of this
14-11 section and the sales agent's successor in interest desires to
14-12 operate the sales agency, the successor shall file an application
14-13 for an extended license not later than the 30th day after the date
14-14 the license expired. The application must state the basis for the
14-15 applicant's claim to be the successor in interest to the sales
14-16 agent and must contain a certification that the applicant would be
14-17 eligible for a license under Section 3.02 of this Act. The
14-18 executive director shall permit a qualified applicant to operate
14-19 under an extended license for not more than one year or until a new
14-20 license is issued to the applicant, whichever occurs first.
14-21 SECTION 18. Section 3.06, State Lottery Act (Article 179g,
14-22 Vernon's Texas Civil Statutes), is amended to read as follows:
14-23 Sec. 3.06. ACCESS TO CRIMINAL HISTORY AND FEDERAL TAX
14-24 INFORMATION. (a) The commission <comptroller> is entitled to
14-25 conduct an investigation of and is entitled to obtain criminal
14-26 history record information maintained by the Department of Public
14-27 Safety, the Federal Bureau of Investigation Identification
14-28 Division, or another law enforcement agency to assist in the
14-29 investigation of:
14-30 (1) a sales agent or an applicant for a sales agent
14-31 license;
14-32 (2) a person required to be named in a license
14-33 application;
14-34 (3) a lottery operator or prospective lottery
14-35 operator;
14-36 (4) an employee of a lottery operator or prospective
14-37 lottery operator, if the employee is or will be directly involved
14-38 in lottery operations;
14-39 (5) a person who manufactures or distributes lottery
14-40 equipment or supplies, or a representative of a person who
14-41 manufactures or distributes lottery equipment or supplies offered
14-42 to the lottery;
14-43 (6) a person who has submitted a written bid or
14-44 proposal to the commission <division> in connection with the
14-45 procurement of goods or services by the commission <division>, if
14-46 the amount of the bid or proposal exceeds $500;
14-47 (7) an employee or other person who works for or will
14-48 work for a sales agent or an applicant for a sales agent license;
14-49 (8) a person who proposes to enter into or who has a
14-50 contract with the commission <division> to supply goods or services
14-51 to the commission <division>; or
14-52 (9) if a person described in Subdivisions (1) through
14-53 (8) of this subsection is not an individual, an individual who:
14-54 (A) is an officer or director of the person;
14-55 (B) holds more than 10 percent of the stock in
14-56 the person;
14-57 (C) holds an equitable interest greater than 10
14-58 percent in the person;
14-59 (D) is a creditor of the person who holds more
14-60 than 10 percent of the person's outstanding debt;
14-61 (E) is the owner or lessee of a business that
14-62 the person conducts or through which the person will conduct
14-63 lottery-related activities;
14-64 (F) shares or will share in the profits, other
14-65 than stock dividends, of the person;
14-66 (G) participates in managing the affairs of the
14-67 person; or
14-68 (H) is an employee of the person who is or will
14-69 be involved in:
14-70 (i) selling tickets; or
15-1 (ii) handling money from the sale of
15-2 tickets.
15-3 (b) The commission <comptroller> shall conduct an
15-4 investigation of and obtain criminal history record information
15-5 maintained by the Department of Public Safety, the Federal Bureau
15-6 of Investigation Identification Division, or another law
15-7 enforcement agency to assist in the investigation of:
15-8 (1) the executive director or a prospective executive
15-9 director <of the division>; or
15-10 (2) an employee or prospective employee of the
15-11 commission <division>.
15-12 (c) Not later than one year after the date of each renewal,
15-13 the commission <comptroller> shall obtain criminal history record
15-14 information maintained by the Department of Public Safety on a
15-15 sales agent whose license is renewed under Section 3.01(h) of this
15-16 Act.
15-17 (d) The executive director may discharge from employment an
15-18 employee of the commission <division> who fails to provide a
15-19 complete legible set of fingerprints on request. The executive
15-20 director may refuse to consider a prospective employee of the
15-21 commission <division> who fails to provide a complete legible set
15-22 of fingerprints on request.
15-23 (e) The executive director may deny an application for a
15-24 license or the commission <comptroller> may suspend or revoke a
15-25 license if the applicant or sales agent fails on request to provide
15-26 a complete legible set of fingerprints of<:>
15-27 <(1)> a person required to be named in a license
15-28 application<; or>
15-29 <(2) an employee or other person who works or will
15-30 work for the applicant or sales agent, if the person:>
15-31 <(A) is or will be involved in the sale of
15-32 tickets; or>
15-33 <(B) handles or will handle money from the sale
15-34 of tickets>.
15-35 (f) All criminal history record information received by the
15-36 executive director is privileged information and is for the
15-37 exclusive use of the executive director and employees of the
15-38 commission <division> designated by the executive director. Except
15-39 on court order or as provided by Subsection (h) of this section,
15-40 the information may not be released or otherwise disclosed to any
15-41 other person or agency.
15-42 (g) All information received by the executive director from
15-43 the Internal Revenue Service is confidential and may only be used
15-44 as provided by the contract between the comptroller and the
15-45 Internal Revenue Service under which the information was obtained.
15-46 (h) The executive director or an employee of the commission
15-47 <division> may not provide any person being investigated under this
15-48 section with a copy of the person's criminal history record
15-49 obtained from the Department of Public Safety, the Federal Bureau
15-50 of Investigation Identification Division, or another law
15-51 enforcement agency. This subsection does not prevent the executive
15-52 director from disclosing to the person the dates and places of
15-53 arrests, offenses, and dispositions contained in the criminal
15-54 history records.
15-55 (i) A person commits an offense if the person releases or
15-56 discloses information received by the commission <comptroller>
15-57 under this section except on court order or as provided by
15-58 Subsection (h) of this section. An offense under this subsection
15-59 is a Class A misdemeanor.
15-60 (j) The executive director may request the cooperation of
15-61 the Department of Public Safety to perform a background
15-62 investigation of a person listed in Subsection (a) or (b) of this
15-63 section. The executive director shall reimburse the Department of
15-64 Public Safety for the actual cost of an investigation. The
15-65 executive director may require a person who is subject to
15-66 investigation to pay all costs of the investigation and to provide
15-67 any information, including fingerprints, necessary to carry out the
15-68 investigation or facilitate access to state or federal criminal
15-69 history record information. Payments made to the executive
15-70 director under this subsection shall be deposited in the general
16-1 revenue fund and may be used to reimburse the Department of Public
16-2 Safety for the actual costs of an investigation.
16-3 (k) Unless otherwise prohibited by law, the Department of
16-4 Public Safety may retain any record or information submitted to it
16-5 under this section. The Department of Public Safety shall notify
16-6 the executive director of any change in information provided to the
16-7 executive director when the Department of Public Safety learns of
16-8 the change.
16-9 (l) The commission shall adopt rules governing the custody
16-10 and use of criminal history record information obtained under this
16-11 section. The comptroller shall adopt necessary rules governing the
16-12 custody and use of information obtained from the Internal Revenue
16-13 Service under this section.
16-14 (m) The executive director may obtain information relating
16-15 to a person's qualification for licensing, employment, or
16-16 contracting under this Act from the Internal Revenue Service under
16-17 a contract between the comptroller and the Internal Revenue Service
16-18 on:
16-19 (1) a sales agent or an applicant for a sales agent
16-20 license;
16-21 (2) an employee or prospective employee of the
16-22 commission <division>;
16-23 (3) a person required to be named in a license
16-24 application;
16-25 (4) a lottery operator or prospective lottery
16-26 operator;
16-27 (5) an employee of a lottery operator or prospective
16-28 lottery operator, if the employee is or will be directly involved
16-29 in lottery operations;
16-30 (6) a person who manufactures or distributes lottery
16-31 equipment or supplies, or a representative of a person who
16-32 manufactures or distributes lottery equipment or supplies offered
16-33 to the lottery;
16-34 (7) a person who has submitted a written bid or
16-35 proposal to the commission <division> in connection with the
16-36 procurement of goods or services by the commission <division>;
16-37 (8) an employee or other person who works for or will
16-38 work for a sales agent or an applicant for a sales agent license;
16-39 or
16-40 (9) a person who proposes to enter into or who has a
16-41 contract with the commission <division> to supply goods or services
16-42 to the commission <division>.
16-43 (n) The executive director may award a contract for lottery
16-44 supplies or services, including a contract under Section 2.02(g) of
16-45 this Act, pending the completion of any investigation authorized by
16-46 this Act. A contract awarded under this subsection must include a
16-47 provision permitting the executive director to terminate the
16-48 contract without penalty if the investigation reveals that the
16-49 person to whom the contract is awarded would not be eligible for a
16-50 sales agent license under Section 3.02 of this Act. <The
16-51 director's authority to award a contract under this subsection
16-52 expires September 1, 1993. This subsection expires January 1,
16-53 1995.>
16-54 (o) <The comptroller shall obtain criminal history record
16-55 information maintained by the Department of Public Safety on any
16-56 person receiving a temporary license under Section 3.04 of this Act
16-57 not later than one year after the date of issuance of the temporary
16-58 license. This subsection expires September 1, 1993.>
16-59 <(p)> All fingerprints submitted to the Department of Public
16-60 Safety must be on a form prescribed by the Department of Public
16-61 Safety.
16-62 SECTION 19. Section 4.01, State Lottery Act (Article 179g,
16-63 Vernon's Texas Civil Statutes), is amended to read as follows:
16-64 Sec. 4.01. Tickets. (a) The executive director shall
16-65 prescribe the form of tickets. The toll-free "800" telephone
16-66 number established by the Texas Commission on Alcohol and Drug
16-67 Abuse under Section 461.018, Health and Safety Code, must be
16-68 printed on each ticket. The overall estimated odds of winning a
16-69 prize in a given game or activity must be printed on each ticket
16-70 and prominently displayed in association with the sale of lottery
17-1 products. The estimate must be based on reasonable projections and
17-2 past experience.
17-3 (b) By purchasing a ticket in a particular lottery game or
17-4 activity, a player agrees to abide by and be bound by the
17-5 commission's <division's> rules, including the rules applicable to
17-6 the particular lottery game or activity involved. The player also
17-7 acknowledges that the determination of whether the player is a
17-8 valid winner is subject to the commission's <division's> rules and
17-9 claims procedures, including those developed for the particular
17-10 lottery game or activity involved, and subject to any validation
17-11 tests established by the commission <division> for the particular
17-12 lottery game or activity involved. If the lottery uses tickets, an
17-13 abbreviated form of the rules or a reference to the rules may
17-14 appear on the tickets.
17-15 (c) A person claiming or attempting to claim a lottery prize
17-16 or a share of a lottery prize represents that the ticket or other
17-17 item showing that the person is entitled to the prize or share was
17-18 lawfully obtained, is not stolen, forged, or altered, and has not
17-19 previously been redeemed.
17-20 SECTION 20. Section 4.02, State Lottery Act (Article 179g,
17-21 Vernon's Texas Civil Statutes), is amended to read as follows:
17-22 Sec. 4.02. Certain Sales of Tickets Prohibited. (a) A
17-23 person commits an offense if the person intentionally or knowingly
17-24 sells a ticket at a price the person knows is greater than that
17-25 fixed by the commission <division> or by the lottery operator
17-26 authorized to set that price. An offense under this subsection is
17-27 a Class A misdemeanor.
17-28 (b) Except as provided by this subsection, a person who is
17-29 not a sales agent or an employee of a sales agent commits an
17-30 offense if the person intentionally or knowingly sells a ticket.
17-31 An offense under this subsection is a felony of the third degree.
17-32 A lottery operator may sell tickets to a licensed sales agent. A
17-33 person who is not a sales agent may distribute tickets as premiums
17-34 to customers, employees, or other persons who deal with the person
17-35 if no purchase <or service> is required to entitle the recipient to
17-36 the ticket. A qualified organization as defined in Section 2,
17-37 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
17-38 added by Chapter 957, Acts of the 71st Legislature, Regular
17-39 Session, 1989), may distribute tickets as a prize in a raffle
17-40 authorized by the Charitable Raffle Enabling Act.
17-41 (c) A person commits an offense if the person sells a ticket
17-42 at a location other than the location of a sales agency. An
17-43 offense under this subsection is a Class A misdemeanor.
17-44 (d) A sales agent or an employee of a sales agent commits an
17-45 offense if the person <may not> intentionally or knowingly sells or
17-46 offers <sell or offer> to sell a ticket to an individual that the
17-47 person knows is younger than 18 years of age. An offense under
17-48 this subsection is a Class C misdemeanor.
17-49 (e) A person may not purchase <sell> a ticket or claim,
17-50 collect, or receive <pay> a lottery prize or a share of a lottery
17-51 prize if <to another person that> the person <knows> is:
17-52 (1) a member, officer, or employee of a person that
17-53 has a contract with the commission <division> to sell or lease
17-54 goods or services used in the lottery;
17-55 (2) a member, officer, or employee of a lottery
17-56 operator;
17-57 (3) an officer or employee of the commission
17-58 <comptroller>; or
17-59 (4) a spouse, child, brother, sister, or parent
17-60 residing as a member of the same household in the principal place
17-61 of residence of a person described by Subdivision (1), (2), or (3)
17-62 of this subsection.
17-63 (f) A person 18 years of age or older may purchase a ticket
17-64 to give as a gift to another person, including an individual
17-65 younger than 18 years of age.
17-66 (g) If an individual listed in Subsection (e) of this
17-67 section purchases a ticket or claims or otherwise attempts to
17-68 collect or receive a lottery prize or a share of a lottery prize or
17-69 an individual younger than 18 years of age directly purchases a
17-70 ticket, the individual is not eligible to receive a prize or share
18-1 of a prize, and the prize or share of a prize otherwise payable on
18-2 the ticket is treated as an unclaimed prize as provided by Section
18-3 5.05 of this Act.
18-4 (h) <(g)> A sales agent or an employee of a sales agent
18-5 commits an offense if the person intentionally or knowingly sells a
18-6 ticket to another person by extending credit or lending money to
18-7 the person to enable the person to purchase the ticket. An offense
18-8 under this subsection is a Class C misdemeanor.
18-9 (i) <(h)> A person commits an offense if the person
18-10 intentionally or knowingly sells <may not purchase> a ticket and:
18-11 (1) accepts <with> a food stamp coupon issued under
18-12 the food stamp program administered under Chapter 33, Human
18-13 Resources Code, as payment;
18-14 (2) accepts <with> a credit card or a debit card as a
18-15 source of payment;
18-16 (3) the sale is made over the telephone; or
18-17 (4) the sale is made by mail-order sales.
18-18 (j) <(i)> A person commits an offense if the person
18-19 intentionally or knowingly purchases <may not pay> for a ticket
18-20 with:
18-21 (1) a food stamp coupon issued under the food stamp
18-22 program administered under Chapter 33, Human Resources Code; or
18-23 (2) the proceeds of a check issued as a payment under
18-24 the Aid to Families with Dependent Children program administered
18-25 under Chapter 31, Human Resources Code.
18-26 (k) An offense under Subsection (i) or (j) of this section
18-27 is a Class C misdemeanor.
18-28 (l) A person commits an offense if, for financial gain, the
18-29 person establishes or promotes a group purchase or pooling
18-30 arrangement under which tickets are purchased on behalf of the
18-31 group or pool and any prize is divided among the members of the
18-32 group or pool, and the person intentionally or knowingly:
18-33 (1) uses any part of the funds solicited or accepted
18-34 for a purpose other than purchasing tickets on behalf of the group
18-35 or pool; or
18-36 (2) retains a share of any prize awarded as
18-37 compensation for establishing or promoting the group purchase or
18-38 pooling arrangement.
18-39 (m) An offense under Subsection (l) of this section is a
18-40 felony of the third degree.
18-41 SECTION 21. Section 4.03, State Lottery Act (Article 179g,
18-42 Vernon's Texas Civil Statutes), is amended by amending Subsection
18-43 (d) and adding Subsection (h) to read as follows:
18-44 (d) An offense under Subsection (c) of this section is a
18-45 Class A misdemeanor unless it is shown on the trial of the offense
18-46 that:
18-47 (1) the amount claimed <or attempted to be claimed> is
18-48 greater than $200 but not more than $10,000, in which event the
18-49 offense is a felony of the third degree;
18-50 (2) the amount claimed <or attempted to be claimed> is
18-51 greater than $10,000, in which event the offense is a felony of the
18-52 second degree; or
18-53 (3) the person has previously been convicted of an
18-54 offense under this section, in which event the offense is a felony
18-55 of the third degree, unless the offense is designated as a felony
18-56 of the second degree under Subdivision (2) of this subsection.
18-57 (h) In this section, "claim" includes an attempt to claim,
18-58 without regard to whether the attempt is successful.
18-59 SECTION 22. Section 4.04(b), State Lottery Act (Article
18-60 179g, Vernon's Texas Civil Statutes), is amended to read as
18-61 follows:
18-62 (b) A person commits an offense if the person knowingly
18-63 refuses to produce for inspection by the executive director,
18-64 commission <comptroller>, or state auditor a book, record, or
18-65 document required to be maintained or made by this Act or a rule
18-66 adopted under this Act.
18-67 SECTION 23. Section 4.045(a), State Lottery Act (Article
18-68 179g, Vernon's Texas Civil Statutes), is amended to read as
18-69 follows:
18-70 (a) A person commits an offense if the person intentionally
19-1 or<,> knowingly<, recklessly, or with criminal negligence> makes a
19-2 material and false, incorrect, or deceptive statement to a person
19-3 conducting an investigation or exercising discretion under this Act
19-4 or a rule adopted under this Act.
19-5 SECTION 24. Sections 4.06(a)-(e), State Lottery Act (Article
19-6 179g, Vernon's Texas Civil Statutes), are amended to read as
19-7 follows:
19-8 (a) A commission member <The comptroller, the state
19-9 treasurer>, the executive director, or an employee of the
19-10 commission <division> may not knowingly accept a gift or political
19-11 contribution from:
19-12 (1) a person that has a significant financial interest
19-13 in the lottery;
19-14 (2) a person related in the first degree of
19-15 consanguinity or affinity to a person that has a significant
19-16 financial interest in the lottery;
19-17 (3) a person that owns more than a 10 percent interest
19-18 in an entity that has a significant financial interest in the
19-19 lottery;
19-20 (4) a political committee that is directly
19-21 established, administered, or controlled, in whole or in part, by a
19-22 person that has a significant financial interest in the lottery; or
19-23 (5) a person who, within the two years preceding the
19-24 date of the gift or contribution, won a lottery prize exceeding
19-25 $600 in amount or value.
19-26 (b) A former commission member <comptroller, former state
19-27 treasurer,> or former executive director may not:
19-28 (1) for compensation, represent a person that has made
19-29 or intends to make a bid to operate the lottery before the
19-30 commission <comptroller> before the second anniversary of the date
19-31 that the person's service in office or employment with the
19-32 commission <division> ceases;
19-33 (2) represent any person or receive compensation for
19-34 services rendered on behalf of any person regarding a particular
19-35 matter in which the former officer or employee participated during
19-36 the period of service or employment with the commission <division>,
19-37 either through personal involvement or because the matter was
19-38 within the scope of the officer's or employee's official
19-39 responsibility; or
19-40 (3) for compensation, communicate directly with a
19-41 member of the legislative branch to influence legislation on behalf
19-42 of a person that has a significant financial interest in the
19-43 lottery, before the second anniversary of the date that the
19-44 person's service in office or employment with the commission
19-45 <division> ceases.
19-46 (c) A former commission member <comptroller, former state
19-47 treasurer>, former executive director, or former employee of the
19-48 commission <division> may not, before the second anniversary of the
19-49 date that the person's service in office or employment with the
19-50 commission <division> ceases, knowingly accept a gift or political
19-51 contribution from:
19-52 (1) a person that has a significant financial interest
19-53 in the lottery;
19-54 (2) a person related in the first degree of
19-55 consanguinity or affinity to a person that has a significant
19-56 financial interest in the lottery;
19-57 (3) a person that owns more than a 10 percent interest
19-58 in an entity that has a significant financial interest in the
19-59 lottery;
19-60 (4) a political committee that is directly
19-61 established, administered, or controlled, in whole or in part, by a
19-62 person that has a significant financial interest in the lottery; or
19-63 (5) a person who, within the two years preceding the
19-64 date of the gift or contribution, won a lottery prize exceeding
19-65 $600 in amount or value.
19-66 (d) A person may not knowingly make a gift or political
19-67 contribution to a commission member <the comptroller, the state
19-68 treasurer>, the executive director, or an employee of the
19-69 commission <division> if the person:
19-70 (1) has a significant financial interest in the
20-1 lottery;
20-2 (2) is related in the first degree of consanguinity or
20-3 affinity to a person that has a significant financial interest in
20-4 the lottery;
20-5 (3) owns more than a 10 percent interest in an entity
20-6 that has a significant financial interest in the lottery;
20-7 (4) is a political committee that is directly
20-8 established, administered, or controlled, in whole or in part, by a
20-9 person that has a significant financial interest in the lottery; or
20-10 (5) within the two years preceding the date of the
20-11 gift or contribution, won a lottery prize exceeding $600 in amount
20-12 or value.
20-13 (e) A person may not knowingly make a gift or political
20-14 contribution to a former commission member <comptroller, former
20-15 state treasurer>, former executive director, or former employee of
20-16 the commission <division> before the second anniversary of the date
20-17 that the person's service in office or employment with the
20-18 commission <division> ceases, if the person:
20-19 (1) has a significant financial interest in the
20-20 lottery;
20-21 (2) is related in the first degree of consanguinity or
20-22 affinity to a person that has a significant financial interest in
20-23 the lottery;
20-24 (3) owns more than a 10 percent interest in an entity
20-25 that has a significant financial interest in the lottery;
20-26 (4) is a political committee that is directly
20-27 established, administered, or controlled, in whole or in part, by a
20-28 person that has a significant financial interest in the lottery; or
20-29 (5) within the two years preceding the date of the
20-30 gift or contribution, won a lottery prize exceeding $600 in amount
20-31 or value.
20-32 SECTION 25. Article 4, State Lottery Act (Article 179g,
20-33 Vernon's Texas Civil Statutes), is amended by adding Section 4.07
20-34 to read as follows:
20-35 Sec. 4.07. AGGREGATION OF AMOUNTS INVOLVED. When amounts
20-36 are claimed, attempted to be claimed, or obtained in violation of
20-37 this Act pursuant to one scheme or continuing course of conduct,
20-38 whether from the same or several sources, the conduct may be
20-39 considered as one offense and the amounts aggregated in determining
20-40 the grade of the offense.
20-41 SECTION 26. Section 5.01, State Lottery Act (Article 179g,
20-42 Vernon's Texas Civil Statutes), is amended to read as follows:
20-43 Sec. 5.01. Delivery of Funds. (a) Except as provided by
20-44 Subsection (e) of this section, all revenue received from the sale
20-45 of tickets and all money credited to the state lottery account from
20-46 any other source shall be deposited in the state treasury through
20-47 approved state depositories on the settlement day or days
20-48 established by the executive director.
20-49 (b) The executive director may require sales agents to
20-50 establish separate electronic funds transfer accounts for the
20-51 purposes of depositing money from ticket sales, making payments to
20-52 the commission <division>, and receiving payments from the
20-53 commission <division>. The commission <comptroller> by rule shall
20-54 establish the procedures for depositing money from ticket sales
20-55 into electronic funds transfer accounts, as well as other
20-56 procedures regarding the handling of money from ticket sales. The
20-57 executive director may not permit a sales agent to make payments to
20-58 the commission <division> or a lottery operator in cash.
20-59 (c) The state treasurer, in consultation with the executive
20-60 director, shall establish procedures for the efficient
20-61 implementation and operation of an electronic funds transfer system
20-62 to meet the needs of the executive director under this Act.
20-63 (d) The executive director may require a sales agent to file
20-64 with the commission <division> reports of receipts and transactions
20-65 relating to the sale of tickets in the form and containing the
20-66 information that the executive director requires. Each sales agent
20-67 shall maintain records adequate to establish the disposition of
20-68 each ticket provided to the sales agent, the amounts of money
20-69 received for the sale of those tickets, and any prizes awarded by
20-70 the sales agent.
21-1 (e) The executive director may provide for a sales agent to
21-2 retain from the money received from the sale of tickets the amount
21-3 of prizes paid by the agent or the agent's commission, if any, and
21-4 may establish how often the agent will make settlement payments to
21-5 the treasury.
21-6 (f) The executive director may provide for a sales agent to
21-7 pay amounts received for the sale of tickets directly to an officer
21-8 or employee of the commission <division> for immediate deposit in
21-9 the state treasury.
21-10 (g) A sales agent is liable to the commission <division> for
21-11 all tickets accepted or generated by the sales agent or any
21-12 employee or agent of the sales agent, and tickets shall be deemed
21-13 to have been purchased by the sales agent unless returned to the
21-14 commission <division> within the time and manner prescribed by the
21-15 commission <division>. Money received by a sales agent from the
21-16 sales of tickets, less the amount retained for prizes paid by the
21-17 sales agent or for the agent's commission, if any, together with
21-18 any unsold tickets, shall be held in trust for the benefit of the
21-19 state before delivery to a lottery operator or the commission
21-20 <division> or electronic transfer to the state treasury, and the
21-21 sales agent is liable to the commission <division> for the full
21-22 amount of the money or unsold tickets so held. If the sales agent
21-23 is not an individual, each officer, director, or owner of the sales
21-24 agent is personally liable to the commission <division> for the
21-25 full amount of the money or unsold tickets held in trust for the
21-26 benefit of the state.
21-27 SECTION 27. Sections 5.02(b), (f), and (j), State Lottery
21-28 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
21-29 read as follows:
21-30 (b) Money in the state lottery account shall be used only
21-31 for the following purposes and shall be distributed as follows:
21-32 (1) the payment of prizes to the holders of winning
21-33 tickets;
21-34 (2) the payment of costs incurred in the operation and
21-35 administration of the lottery, including any fees received by a
21-36 lottery operator, provided that the costs incurred in a fiscal
21-37 biennium may not exceed an amount equal to 15 percent of the gross
21-38 revenue accruing from the sale of tickets in that biennium;
21-39 (3) the establishment of a pooled bond fund, lottery
21-40 prize reserve fund, unclaimed prize fund, and prize payment
21-41 account;
21-42 (4) the transfer of amounts to the state lottery
21-43 stabilization fund as provided by Subsections (c), (d), and (e) of
21-44 this section; and
21-45 (5) <(4)> the balance, after creation of a reserve
21-46 sufficient to pay the amounts needed or estimated to be needed
21-47 under <provided by> Subdivisions (1) through (3) <and (2)> of this
21-48 subsection, to be transferred to the unobligated portion of the
21-49 general revenue fund, on or before the 15th day of each month.
21-50 (f) The state treasurer periodically shall file reports with
21-51 the executive director providing information regarding the revenue
21-52 credited to the state lottery account, the investments of the money
21-53 in the account, and the distributions made from the account.
21-54 (j) Notwithstanding Subsection (b)(5) <(b)(4)> and
21-55 Subsection (d) of this section, the initial transfer of revenue
21-56 from the state lottery account to the unobligated portion of the
21-57 general revenue fund and the state lottery stabilization fund under
21-58 those subsections shall be made on the 15th day of the month
21-59 following the month in which the earlier of the following occurs:
21-60 (1) the first ticket is sold to a player under this
21-61 Act; or
21-62 (2) the executive director receives liquidated damages
21-63 or a payment under a performance bond under a contract with a
21-64 lottery operator.
21-65 SECTION 28. Section 5.02(h)(4), State Lottery Act (Article
21-66 179g, Vernon's Texas Civil Statutes), is amended to read as
21-67 follows:
21-68 (4) "Net lottery revenue" means the gross lottery
21-69 revenue minus the amounts distributed or obligated for a purpose
21-70 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
22-1 section.
22-2 SECTION 29. Sections 5.03(c)-(f) and (h)-(l), State Lottery
22-3 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
22-4 read as follows:
22-5 (c) An employee of the commission <division> and the
22-6 independent certified public accountant witnessing the drawing
22-7 shall inspect any equipment used in the drawing. The equipment
22-8 must be inspected immediately before and after the drawing. The
22-9 drawing and inspections must be recorded on video and audio tape.
22-10 (d) The executive director may authorize prizes to be paid
22-11 by warrants to be drawn on the state lottery account. If the
22-12 executive director determines that prize money is to be paid in
22-13 installments, the state treasurer shall invest funds from the state
22-14 lottery account as necessary to ensure the payment of the
22-15 installments. The investments may be in securities, annuities, or
22-16 other instruments as determined by the treasurer.
22-17 (e) Payment of a prize in an amount of $600 or more shall be
22-18 made by the executive director.
22-19 (f) The executive director may authorize a sales agent to
22-20 pay a prize in an amount less than $600 after performing procedures
22-21 to validate the winning ticket as required by the executive
22-22 director. A prize paid under this subsection is not required to be
22-23 paid by warrant on the state lottery account.
22-24 (h) A specific prize as set forth by the prize structure of
22-25 a specific lottery game or activity may not be paid more than once.
22-26 If the executive director determines that more than one claimant
22-27 has been awarded a specific unpaid prize in a specific lottery game
22-28 or activity, each claimant is entitled only to an equal share of
22-29 the prize.
22-30 (i) The executive director shall pay the cash equivalent of
22-31 a prize other than prize money if more than one person is entitled
22-32 to share the prize as provided by Subsection (h) of this section.
22-33 (j) The executive director shall deduct the amount of a
22-34 delinquent tax or other money from the winnings of a person who has
22-35 been finally determined to be:
22-36 (1) delinquent in the payment of a tax or other money
22-37 collected by the comptroller, the state treasurer, or the Texas
22-38 Alcoholic Beverage Commission;
22-39 (2) delinquent in making child support payments
22-40 administered or collected by the attorney general; <or>
22-41 (3) in default on a loan made under Chapter 52,
22-42 Education Code; or
22-43 (4) in default on a loan guaranteed under Chapter 57,
22-44 Education Code.
22-45 (k) If a person's winnings exceed a delinquency under
22-46 Subsection (j) of this section, the executive director shall pay
22-47 the balance to the person. The executive director shall transfer
22-48 the amount deducted to the appropriate agency.
22-49 (l) The attorney general, comptroller, state treasurer,
22-50 Texas Alcoholic Beverage Commission, Texas Higher Education
22-51 Coordinating Board, and Texas Guaranteed Student Loan Corporation
22-52 shall each provide the executive director with a report of persons
22-53 who have been finally determined to be delinquent in the payment of
22-54 a tax or other money collected by the agency. The commission
22-55 <comptroller> shall adopt rules regarding the form and frequency of
22-56 reports under this subsection.
22-57 SECTION 30. Sections 5.04(a)-(c), State Lottery Act (Article
22-58 179g, Vernon's Texas Civil Statutes), are amended to read as
22-59 follows:
22-60 (a) If a minor is entitled to prize money on a winning
22-61 ticket in an amount less than $600, the executive director may make
22-62 payment by delivery to an adult member of the minor's family, or to
22-63 the minor's guardian, of a warrant payable to the order of the
22-64 minor.
22-65 (b) If a minor is entitled to prize money on a winning
22-66 ticket in an amount of $600 or more, the executive director may
22-67 direct payment to the minor by depositing the amount of the prize
22-68 in any bank to the credit of an adult member of the minor's family
22-69 or of the minor's guardian as custodian for the minor.
22-70 (c) The executive director shall pay the cash equivalent of
23-1 a prize other than prize money if the person entitled to claim the
23-2 prize is a minor. Payment of the cash equivalent of a prize other
23-3 than prize money to a minor shall be made as provided by
23-4 Subsections (a) and (b) of this section.
23-5 SECTION 31. Sections 5.05(a), (b), and (d), State Lottery
23-6 Act (Article 179g, Vernon's Texas Civil Statutes), are amended to
23-7 read as follows:
23-8 (a) The commission <division> shall retain an unclaimed
23-9 prize on a winning ticket for payment or delivery to the person
23-10 entitled to the prize for 180 days after the date on which the
23-11 winner was selected. If a claim is not made for prize money on or
23-12 before the 180th day after the date on which the winner was
23-13 selected, the prize money shall be used to provide additional money
23-14 to the state lottery account for the purposes prescribed by Section
23-15 5.02(b)(1) of this Act.
23-16 (b) If a claim is not made for a prize other than prize
23-17 money on or before the 180th day after the date on which the winner
23-18 was selected, the prize shall revert to the commission <division>
23-19 for use in subsequent games.
23-20 (d) For each lottery game, after the last date on which a
23-21 prize may be claimed under Subsection (c) of this section, the
23-22 executive director shall prepare a report that shows the total
23-23 number of tickets sold and the number and amounts of prizes awarded
23-24 in the game. The report must be available for public inspection.
23-25 SECTION 32. Sections 5.06(a) and (b), State Lottery Act
23-26 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
23-27 as follows:
23-28 (a) The executive director and each lottery operator shall
23-29 determine the compensation to be paid to sales agents for the sale
23-30 of tickets as provided by this section. The compensation paid to a
23-31 sales agent may not be an amount less than five percent of the
23-32 retail price of the tickets sold plus, at the discretion of the
23-33 executive director or lottery operator supervising the game or
23-34 activity involved, an incentive bonus based on attainment of sales
23-35 volume, the redemption of winning tickets, or other objectives
23-36 specified by the executive director or lottery operator for each
23-37 type of lottery.
23-38 (b) The commission <division> or a lottery operator may run
23-39 sales agent incentive games for sales agents using the incentive
23-40 bonus amount or other amounts allocated by the executive director
23-41 as compensation for sales agents.
23-42 SECTION 33. Section 47.06(g), Penal Code, is amended to read
23-43 as follows:
23-44 (g) It is a defense to prosecution for an offense under this
23-45 section <chapter> that the conduct was authorized, directly or
23-46 indirectly, by the State Lottery Act, the Texas Lottery Commission
23-47 <lottery division in the office of the comptroller, the
23-48 comptroller>, or the executive director of the Texas Lottery
23-49 Commission <lottery division>.
23-50 SECTION 34. Section 47.14, Penal Code, is amended to read as
23-51 follows:
23-52 Sec. 47.14. State Lottery. It is a defense to prosecution
23-53 for an offense under this chapter that the conduct:
23-54 (1) consisted entirely of participation in the state
23-55 lottery authorized by the State Lottery Act; or
23-56 (2) was a necessary incident to the operation of the
23-57 state lottery and was authorized, directly or indirectly, by the
23-58 State Lottery Act<, the lottery division in the office of the
23-59 comptroller>, the Texas Lottery Commission <comptroller>, or the
23-60 executive director of the Texas Lottery Commission <lottery
23-61 division>.
23-62 SECTION 35. Section 111.0047(a), Tax Code, is amended to
23-63 read as follows:
23-64 (a) If a person fails to comply with any provision of this
23-65 title<, with any provision of the State Lottery Act,> or with a
23-66 rule of the comptroller adopted under this title <or the State
23-67 Lottery Act>, the comptroller, after a hearing, may revoke or
23-68 suspend any permit or license issued to the person.
23-69 SECTION 36. Section 111.0048(a), Tax Code, is amended to
23-70 read as follows:
24-1 (a) A new permit or license may not be issued to a former
24-2 holder of a revoked permit or license unless the comptroller is
24-3 satisfied that the person will comply with the provisions of this
24-4 title <and the State Lottery Act> and the rules of the comptroller
24-5 relating to this title <and the State Lottery Act>.
24-6 SECTION 37. Section 2(5)(A), Chapter 421, Acts of the 63rd
24-7 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
24-8 Civil Statutes), is amended to read as follows:
24-9 (A) "Appointed officer of a major state agency"
24-10 means any of the following:
24-11 (i) a member of the Public Utility
24-12 Commission of Texas;
24-13 (ii) a member of the Texas Department of
24-14 Commerce;
24-15 (iii) a member of the Texas Board of
24-16 Aviation;
24-17 (iv) a member of the Texas Air Control
24-18 Board;
24-19 (v) a member of the Texas Alcoholic
24-20 Beverage Commission;
24-21 (vi) a member of the Finance Commission of
24-22 Texas;
24-23 (vii) a member of the <State Purchasing
24-24 and> General Services Commission;
24-25 (viii) a member of the Texas Board of
24-26 Criminal Justice;
24-27 (ix) a member of the Board of Trustees of
24-28 the Employees Retirement System of Texas;
24-29 (x) a member of the State Highway and
24-30 Public Transportation Commission;
24-31 (xi) a member of the Texas Workers'
24-32 Compensation Commission;
24-33 (xii) a member of the State Board of
24-34 Insurance;
24-35 (xiii) a member of the Parks and Wildlife
24-36 Commission;
24-37 (xiv) a member of the Public Safety
24-38 Commission;
24-39 (xv) the Secretary of State;
24-40 (xvi) a member of the State Securities
24-41 Board;
24-42 (xvii) a member of the Texas Amusement
24-43 Machine Commission;
24-44 (xviii) a member of the Texas Water
24-45 Development Board;
24-46 (xix) a member of the Texas Water
24-47 Commission;
24-48 (xx) a member of the governing board of a
24-49 state senior college or university as defined by Section 61.003,
24-50 Education Code, including The University of Texas at Arlington; The
24-51 University of Texas at Austin; The University of Texas at Dallas;
24-52 The University of Texas at El Paso; The University of Texas--Pan
24-53 American; The University of Texas--Pan American--Brownsville; The
24-54 University of Texas of the Permian Basin; The University of Texas
24-55 at San Antonio; The University of Texas at Tyler; The University of
24-56 Texas Southwestern Medical Center at Dallas; The University of
24-57 Texas Medical Branch at Galveston; The University of Texas Health
24-58 Science Center at Houston; The University of Texas Health Science
24-59 Center at San Antonio; The University of Texas System Cancer
24-60 Center; The University of Texas Health Science Center at Tyler;
24-61 Texas A&M University; Texas A&M University at Galveston; Prairie
24-62 View A&M University; Tarleton State University; Corpus Christi
24-63 State University; Texas A&I University; Laredo State University;
24-64 East Texas State University; East Texas State University at
24-65 Texarkana; University of Houston; University of Houston--Clear
24-66 Lake; University of Houston--Downtown; University of
24-67 Houston--Victoria; Lamar University at Beaumont; Lamar University
24-68 at Orange; Lamar University at Port Arthur; Midwestern State
24-69 University; University of North Texas; Texas College of Osteopathic
24-70 Medicine; Stephen F. Austin State University; Texas Southern
25-1 University; Texas Tech University; Texas Tech University Health
25-2 Sciences Center; Texas Woman's University; West Texas State
25-3 University; Angelo State University; Sam Houston State University;
25-4 Southwest Texas State University; Sul Ross State University; Sul
25-5 Ross State University--Uvalde Center; Texas State Technical
25-6 Institute--Amarillo; Texas State Technical Institute--Harlingen;
25-7 Texas State Technical Institute--Sweetwater; and Texas State
25-8 Technical Institute--Waco;
25-9 (xxi) a member of the Texas Higher
25-10 Education Coordinating Board;
25-11 (xxii) a member of the Texas Employment
25-12 Commission;
25-13 (xxiii) a member of the State Banking
25-14 Board;
25-15 (xxiv) a member of the board of trustees
25-16 of the Teachers Retirement System of Texas;
25-17 (xxv) a member of the Credit Union
25-18 Commission;
25-19 (xxvi) a member of the School Land Board;
25-20 (xxvii) a member of the board of the Texas
25-21 Department of Housing and Community Affairs;
25-22 (xxviii) a member of the Texas Racing
25-23 Commission;
25-24 (xxix) a member of the State Board of
25-25 Dental Examiners;
25-26 (xxx) a member of the Texas Board of
25-27 Licensure for Nursing Home Administrators;
25-28 (xxxi) a member of the Texas State Board
25-29 of Medical Examiners;
25-30 (xxxii) a member of the Board of Pardons
25-31 and Paroles;
25-32 (xxxiii) a member of the Texas State Board
25-33 of Pharmacy;
25-34 (xxxiv) the Banking Commissioner of the
25-35 Banking Department of Texas;
25-36 (xxxv) a member of the Department of
25-37 Information Resources Governing Board;
25-38 (xxxvi) the fire fighters' pension
25-39 commissioner;
25-40 (xxxvii) a member of the Texas Motor
25-41 Vehicle Commission;
25-42 (xxxviii) the director of the Office of
25-43 Court Administration of the Texas Judicial System;
25-44 (xxxix) the chief executive of the Office
25-45 of Public Utility Counsel;
25-46 (xl) a member of the Texas Real Estate
25-47 Commission;
25-48 (xli) a member of the board of directors
25-49 and the executive director of the State Bar of Texas;
25-50 (xlii) a member of the Bond Review Board;
25-51 (xliii) a member of the Texas Board of
25-52 Health;
25-53 (xliv) a member of the Texas Board of
25-54 Mental Health and Mental Retardation;
25-55 (xlv) a member of the Texas Board on
25-56 Aging;
25-57 (xlvi) a member of the Texas Board of
25-58 Human Services;
25-59 (xlvii) a member of the Texas Funeral
25-60 Service Commission;
25-61 (xlviii) a member of the board of
25-62 directors of a river authority created under the constitution or
25-63 laws of this state;
25-64 (xlix) the executive director of the Texas
25-65 Lottery Commission <lottery division in the office of the
25-66 comptroller>; <or>
25-67 (l) the deputy in charge of the department
25-68 of security in the Texas Lottery Commission; or <lottery division
25-69 in the office of the comptroller>
25-70 (li) a member of the Texas Lottery
26-1 Commission.
26-2 SECTION 38. Section 3, Charitable Raffle Enabling Act
26-3 (Article 179f, Revised Statutes, as added by Chapter 957, Acts of
26-4 the 71st Legislature, Regular Session, 1989), is amended by
26-5 amending Subsection (g) and adding Subsection (k) to read as
26-6 follows:
26-7 (g) A prize offered or awarded at the raffle may not be
26-8 money. Except as provided by Subsection (k) of this section, the
26-9 <The> value of a prize that is offered or awarded at the raffle and
26-10 that is purchased by the organization or for which the organization
26-11 provides any consideration may not exceed $25,000.
26-12 (k) A prize may consist of one or more tickets in the state
26-13 lottery authorized by the State Lottery Act (Article 179g, Vernon's
26-14 Texas Civil Statutes), and its subsequent amendments, with a face
26-15 value of $25,000 or less, without regard to whether a prize in the
26-16 lottery game to which the ticket or tickets relate exceeds $25,000.
26-17 SECTION 39. Sections 2.04(j) and 4.06(g), State Lottery Act
26-18 (Article 179g, Vernon's Texas Civil Statutes), are repealed.
26-19 SECTION 40. (a) Except as provided by Subsection (b) of
26-20 this section, this Act takes effect September 1, 1993.
26-21 (b) Section 39 of this Act takes effect August 31, 1993.
26-22 (c) The Texas Lottery Commission is created on September 1,
26-23 1993. In making the initial appointments to the commission, the
26-24 governor shall designate one member for a term expiring in 1995,
26-25 one member for a term expiring in 1997, and one member for a term
26-26 expiring in 1999.
26-27 SECTION 41. (a) As soon as practicable, but not later than
26-28 January 1, 1994:
26-29 (1) all powers, duties, rights, and obligations of the
26-30 comptroller relating to the administration, operation, and
26-31 regulation of the state lottery are transferred to the Texas
26-32 Lottery Commission;
26-33 (2) except as provided by Subsection (b) of this
26-34 section, all assets, liabilities, personnel, equipment, data,
26-35 documents, facilities, and other items of the comptroller relating
26-36 to the administration, operation, and regulation of the state
26-37 lottery are transferred to the Texas Lottery Commission; and
26-38 (3) any appropriation to the comptroller relating to
26-39 the administration, operation, and regulation of the state lottery
26-40 is transferred to the Texas Lottery Commission.
26-41 (b) The comptroller may decide whether to transfer to the
26-42 Texas Lottery Commission:
26-43 (1) personnel who perform both duties that relate to
26-44 lottery operations and duties that do not relate to lottery
26-45 operations; and
26-46 (2) assets used both in lottery operations and
26-47 operations other than lottery operations.
26-48 (c) The officers and employees of the office of the
26-49 comptroller shall cooperate fully with the reorganization.
26-50 (d) A transfer of functions under Subsection (a) of this
26-51 section shall occur on the date specified in an interagency
26-52 contract between the Texas Lottery Commission and the comptroller.
26-53 (e) Notwithstanding the changes made by this Act to the
26-54 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes),
26-55 the comptroller retains all powers and duties relating to the
26-56 operation of the state lottery until the effective date of the
26-57 transfer under Subsection (a) of this section, and a reference in
26-58 the State Lottery Act (Article 179g, Vernon's Texas Civil Statutes)
26-59 to the Texas Lottery Commission or the executive director of the
26-60 Texas Lottery Commission is considered to be a reference to the
26-61 comptroller until that date.
26-62 SECTION 42. (a) A change in law made by this Act does not
26-63 affect:
26-64 (1) the validity of any action taken by the
26-65 comptroller or the lottery division in the office of the
26-66 comptroller under the State Lottery Act (Article 179g, Vernon's
26-67 Texas Civil Statutes) before the effective date of the change in
26-68 law; or
26-69 (2) a civil, criminal, or administrative proceeding
26-70 completed before the effective date of this Act.
27-1 (b) A change in law made by this Act does not affect the
27-2 validity of a civil, criminal, or administrative proceeding,
27-3 including licensing or rulemaking, in progress on the effective
27-4 date of the change in law. A civil, criminal, or administrative
27-5 proceeding under the State Lottery Act (Article 179g, Vernon's
27-6 Texas Civil Statutes) that is in progress on the effective date of
27-7 a transfer of functions under Section 41 of this Act continues as
27-8 if it had been initiated by the Texas Lottery Commission under the
27-9 law in effect on the effective date of the transfer.
27-10 (c) All forms, rules, and procedures adopted by the
27-11 comptroller for the administration and enforcement of the State
27-12 Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and in
27-13 effect on the effective date of a transfer of functions under
27-14 Section 41 of this Act remain in effect on or after that date as if
27-15 adopted by the Texas Lottery Commission until amended, repealed,
27-16 withdrawn, or otherwise superseded by the Texas Lottery Commission.
27-17 A license issued under the State Lottery Act (Article 179g,
27-18 Vernon's Texas Civil Statutes) and in effect on the effective date
27-19 of a transfer of functions under Section 41 of this Act remains in
27-20 effect according to its terms as if issued by the Texas Lottery
27-21 Commission until the license expires or is revoked or surrendered.
27-22 (d) A change in law made by this Act applies only to an
27-23 offense committed on or after September 1, 1993. For the purposes
27-24 of this subsection, an offense is committed before September 1,
27-25 1993, if any element of the offense occurs before that date.
27-26 (e) An offense committed before September 1, 1993, is
27-27 covered by the law in effect when the offense was committed, and
27-28 the former law is continued in effect for this purpose.
27-29 SECTION 43. The importance of this legislation and the
27-30 crowded condition of the calendars in both houses create an
27-31 emergency and an imperative public necessity that the
27-32 constitutional rule requiring bills to be read on three several
27-33 days in each house be suspended, and this rule is hereby suspended.
27-34 * * * * *
27-35 Austin,
27-36 Texas
27-37 March 11, 1993
27-38 Hon. Bob Bullock
27-39 President of the Senate
27-40 Sir:
27-41 We, your Committee on State Affairs to which was referred S.B. No.
27-42 550, have had the same under consideration, and I am instructed to
27-43 report it back to the Senate with the recommendation that it do not
27-44 pass, but that the Committee Substitute adopted in lieu thereof do
27-45 pass and be printed.
27-46 Harris of
27-47 Dallas, Chairman
27-48 * * * * *
27-49 WITNESSES
27-50 FOR AGAINST ON
27-51 ___________________________________________________________________
27-52 Name: Steve Moore x
27-53 Representing: Hurst Police Officers
27-54 City: Hurst
27-55 -------------------------------------------------------------------
27-56 Name: Jack Pinkerton x
27-57 Representing: St. Pius X High School
27-58 City: Houston
27-59 -------------------------------------------------------------------
27-60 Name: John Ashby x
27-61 Representing: Celina Volunteer Fire Dept
27-62 City: Celina
27-63 -------------------------------------------------------------------
27-64 Name: Nancy Carpenter x
27-65 Representing: Carpenter Land & Invest. Co.
27-66 City: Ft. Worth
27-67 -------------------------------------------------------------------
27-68 Name: Edwin Branom x
27-69 Representing: East Plano Bingo
27-70 City: Plano
28-1 -------------------------------------------------------------------
28-2 Name: Fred Floyd x
28-3 Representing: Sky Ryders of Texas
28-4 City: DeSoto
28-5 -------------------------------------------------------------------
28-6 Name: Robert Hughes x
28-7 Representing: Bingo Charities
28-8 City: Austin
28-9 -------------------------------------------------------------------
28-10 Name: Donald Hearon x
28-11 Representing: AMVets National Dept.
28-12 City: Irving
28-13 -------------------------------------------------------------------
28-14 Name: Michael Stanggin x
28-15 Representing: Twilight Bingo/Rockwall
28-16 Bingo
28-17 City: Rockwall
28-18 -------------------------------------------------------------------
28-19 FOR AGAINST ON
28-20 ___________________________________________________________________
28-21 Name: Jim Bruemmer x
28-22 Representing: El Paso Lupus Assn.
28-23 City: El Paso
28-24 -------------------------------------------------------------------
28-25 Name: Don Bishop x
28-26 Representing: Love Bingo-AMVets
28-27 City: Dallas
28-28 -------------------------------------------------------------------
28-29 Name: Robert Hassell x
28-30 Representing: K & B Sales, Inc.
28-31 City: Richardson
28-32 -------------------------------------------------------------------
28-33 Name: Gene Garrison x
28-34 Representing: B'Nai B'Rith and West
28-35 Tx. Bin
28-36 City: Odessa
28-37 -------------------------------------------------------------------
28-38 Name: Deborah Tucker x
28-39 Representing: Bingo is Good for Non-Profit
28-40 City: Austin
28-41 -------------------------------------------------------------------
28-42 Name: Thomas Plaut x
28-43 Representing: Tx State Comptroller
28-44 City: Austin
28-45 -------------------------------------------------------------------
28-46 Name: Randy Yarbrough x
28-47 Representing: TABC
28-48 City: Austin
28-49 -------------------------------------------------------------------
28-50 Name: Joe Galvan x
28-51 Representing: Comptroller's Office
28-52 City: Austin
28-53 -------------------------------------------------------------------
28-54 Name: Chris Cook x
28-55 Representing: Texas Performance Review
28-56 City: Austin
28-57 -------------------------------------------------------------------
28-58 Name: Diana Gonzalez x
28-59 Representing: TABC
28-60 City: Austin
28-61 -------------------------------------------------------------------
28-62 Name: JeAnne Fox x
28-63 Representing: TABC
28-64 City: Austin
28-65 -------------------------------------------------------------------
28-66 Name: John Bell x
28-67 Representing: State Treasurer
28-68 City: Austin
28-69 -------------------------------------------------------------------
28-70 Name: Brad Reynolds x
29-1 Representing: Lt. Governor's Office
29-2 City: Austin
29-3 -------------------------------------------------------------------