By: Harris of Dallas S.B. No. 1090
A BILL TO BE ENTITLED
AN ACT
1-1 relating to operation of the Texas Lottery; providing penalties.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2.02(e), State Lottery Act (Article 179g,
1-4 Vernon's Texas Civil Statutes), is amended to read as follows:
1-5 (e) If the director authorizes a person who is not an
1-6 employee of the division to sell tickets, the person must be
1-7 licensed as a sales agent by the division. The director may
1-8 establish a provisional license or other classes of licenses
1-9 necessary to regulate and administer the quantity and type of
1-10 lottery games or activities provided at each licensed location.
1-11 Each sales agent shall post a cash bond, surety bond, letter of
1-12 credit, certificate of deposit, or other security approved by the
1-13 director, including the contribution of cash to a pooled bond fund
1-14 established by the director to protect the state from possible
1-15 losses. The amount of the security shall be determined by the
1-16 director and shall reflect the possible losses to the state from
1-17 the operation of the sales agents <agent>. The director may also
1-18 require a sales agent to maintain insurance if necessary to protect
1-19 the interests of the state. As prescribed by division rules, each
1-20 sales agent shall prominently display the license in each place of
1-21 business or activity at which the sales agent sells tickets.
1-22 SECTION 2. Section 2.04(j), State Lottery Act (Article 179g,
1-23 Vernon's Texas Civil Statutes), is repealed.
2-1 SECTION 3. Section 2.08, State Lottery Act (Article 179g,
2-2 Vernon's Texas Civil Statutes), is amended to read as follows:
2-3 Sec. 2.08. Publicity of Individuals Prohibited. A state
2-4 officer, a commission member, the executive director <or employee,
2-5 including> the <comptroller>, the director, or an officer or
2-6 employee of the commission <comptroller's office> or the division,
2-7 may not appear in an advertisement or promotion for the lottery
2-8 that is sponsored by the commission <comptroller's office> or the
2-9 division or in a televised lottery drawing. An advertisement or
2-10 promotion for the lottery may not contain the likeness or name of a
2-11 state officer, a commission member, the executive director <or
2-12 employee, including> the <comptroller>, the director, or an officer
2-13 or employee of the commission <comptroller's office> or the
2-14 division. In connection with providing security for the lottery,
2-15 this section shall not prohibit a security officer or investigator
2-16 employed by the division from appearing in a televised lottery
2-17 drawing or other promotion for the lottery that is sponsored by the
2-18 commission <comptroller's office> or the division. Notwithstanding
2-19 the provisions of this section, the director may designate
2-20 appropriate employees <an employee> of the division to participate
2-21 in a promotional event<, the purpose of which is to award a prize>.
2-22 SECTION 4. Article 2, State Lottery Act (Article 179g,
2-23 Vernon's Texas Civil Statutes), is amended by adding Section 2.115
2-24 to read as follows:
2-25 Sec. 2.115. VENUE. (a) An offense under this Act may be
3-1 prosecuted in a court of competent jurisdiction in Travis County or
3-2 in a county in which prosecution is authorized under the Code of
3-3 Criminal Procedure.
3-4 (b) A lottery operator, lottery vendor, sales agent, or
3-5 division employee who violates a provision of the Penal Code while
3-6 engaged in lottery activities may be prosecuted in a court of
3-7 competent jurisdiction in Travis County or in a county in which
3-8 prosecution is authorized under the Code of Criminal Procedure.
3-9 (c) An offense under Chapters 28, 29, 30, 31, 32, 33, or 71
3-10 of the Penal Code, in which the property involved consisted of or
3-11 included Texas Lottery tickets, may be prosecuted in a court of
3-12 competent jurisdiction in Travis County or in a county in which
3-13 prosecution is authorized under the Code of Criminal Procedure.
3-14 SECTION 5. Section 2.13(a), State Lottery Act (Article 179g,
3-15 Vernon's Texas Civil Statutes), is amended to read as follows:
3-16 (a) The director shall, every two years, employ an
3-17 independent firm experienced in demographic analysis to conduct a
3-18 demographic study of lottery players. The study shall include the
3-19 income, age, sex, race, education, and frequency of participation
3-20 of players.
3-21 SECTION 6. Section 3.02(a), State Lottery Act (Article 179g,
3-22 Vernon's Texas Civil Statutes), is amended to read as follows:
3-23 (a) After a hearing, the director shall deny an application
3-24 for a license or the commission <comptroller> shall suspend or
3-25 revoke a license if the director or commission <comptroller>, as
4-1 applicable, finds that the applicant or sales agent:
4-2 (1) is an individual who:
4-3 (A) has been convicted of a felony, criminal
4-4 fraud, gambling or gambling-related offense, or misdemeanor
4-5 involving moral turpitude, if less than 10 years has elapsed since
4-6 the termination of the sentence, parole, mandatory supervision, or
4-7 probation served for the offense;
4-8 (B) is or has been a professional gambler; <or>
4-9 (C) is married to <or related in the first
4-10 degree of consanguinity or affinity to> an individual:
4-11 (i) described in Paragraph (A) or (B) of
4-12 this subdivision; or
4-13 (ii) who is currently delinquent in the
4-14 payment of any state tax;
4-15 (D) is an officer or employee of the commission,
4-16 division, or a lottery operator; or
4-17 (E) is a spouse, child, brother, sister, or
4-18 parent residing as a member of the same household in the principal
4-19 place of residence of a person described by Paragraph (D) of this
4-20 subdivision;
4-21 (2) is not an individual, and an individual described
4-22 in Subdivision (1) of this subsection:
4-23 (A) is an officer or director of the applicant
4-24 or sales agent;
4-25 (B) holds more than 10 percent of the stock in
5-1 the applicant or sales agent;
5-2 (C) holds an equitable interest greater than 10
5-3 percent in the applicant or sales agent;
5-4 (D) is a creditor of the applicant or sales
5-5 agent who holds more than 10 percent of the applicant's or sales
5-6 agent's outstanding debt;
5-7 (E) is the owner or lessee of a business that
5-8 the applicant or sales agent conducts or through which the
5-9 applicant will conduct a ticket sales agency;
5-10 (F) shares or will share in the profits, other
5-11 than stock dividends, of the applicant or sales agent; or
5-12 (G) participates in managing the affairs of the
5-13 applicant or sales agent; <or>
5-14 <(H) is an employee of the applicant or sales
5-15 agent who is or will be involved in:>
5-16 <(i) selling tickets; or>
5-17 <(ii) handling money from the sale of
5-18 tickets;>
5-19 (3) is currently delinquent in the payment of any
5-20 state tax;
5-21 (4) is a person whose location for the sales agency
5-22 is:
5-23 (A) a racetrack at which wagering is authorized
5-24 under the Texas Racing Act (Article 179e, Vernon's Texas Civil
5-25 Statutes);
6-1 (B) a location licensed for games of bingo under
6-2 the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
6-3 Statutes);
6-4 (C) on land that is owned by:
6-5 (i) this state; or
6-6 (ii) a political subdivision of this
6-7 state, other than land used as a mass transportation facility that
6-8 is used by commercial carriers; or
6-9 (D) a location for which a person holds a wine
6-10 and beer retailer's permit, mixed beverage permit, mixed beverage
6-11 late hours permit, private club registration permit, or private
6-12 club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
6-13 Alcoholic Beverage Code;
6-14 (5) has violated this Act or a rule adopted under this
6-15 Act.
6-16 SECTION 7. Section 3.03(d), State Lottery Act (Article 179g,
6-17 Vernon's Texas Civil Statutes), is amended to read as follows:
6-18 (d) To initiate a proceeding to summarily suspend a sales
6-19 agent's license, the commission <comptroller> must serve notice to
6-20 the sales agent informing the agent of the right to a preliminary
6-21 hearing before the commission <comptroller or the comptroller's
6-22 representative> and of the time and place of the preliminary
6-23 hearing. The notice must be personally served on the sales agent
6-24 or an officer, employee, or agent of the sales agent or sent by
6-25 certified or registered mail, return receipt requested, to the
7-1 sales agent's mailing address as it appears on the division's
7-2 records. The notice must state the alleged violations that
7-3 constitute the grounds for summary suspension. The suspension is
7-4 effective at the time the notice is served. If notice is served in
7-5 person, the sales agent shall immediately surrender the license to
7-6 the commission <comptroller or to the comptroller's
7-7 representative>. If notice is served by mail, the sales agent
7-8 shall immediately return the license to the commission
7-9 <comptroller>. If the sales agent uses an on-line electronic
7-10 terminal to sell tickets, the director or a lottery operator on the
7-11 instructions of the director may terminate the connection of the
7-12 terminal to the division's lottery computer at the time the
7-13 proceeding to summarily suspend the license is initiated; except
7-14 that, in the case of a sales agent who is being summarily suspended
7-15 under Subsection (a)(1) of this section, the director or a lottery
7-16 operator on the instructions of the director may terminate the
7-17 connection of the sales agent's terminal to the division's lottery
7-18 computer at the time the division discovers that the sales agent
7-19 has failed to deposit money received from ticket sales.
7-20 SECTION 8. Sections 3.06(e) and (n), State Lottery Act
7-21 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
7-22 as follows:
7-23 (e) The director may deny an application for a license or
7-24 the commission <comptroller> may suspend or revoke a license if the
7-25 applicant or sales agent fails on request to provide a complete
8-1 legible set of fingerprints of<:>
8-2 <(1)> a person required to be named in a license
8-3 application<; or>
8-4 <(2) an employee or other person who works or will
8-5 work for the applicant or sales agent, if the person:>
8-6 <(A) is or will be involved in the sale of
8-7 tickets; or>
8-8 <(B) handles or will handle money from the sale
8-9 of tickets>.
8-10 (n) The director may award a contract for lottery supplies
8-11 or services, including a contract under Section 2.02(g) of this
8-12 Act, pending the completion of any investigation authorized by this
8-13 Act. A contract awarded under this subsection must include a
8-14 provision permitting the director to terminate the contract without
8-15 penalty if the investigation reveals that the person to whom the
8-16 contract is awarded would not be eligible for a sales agent license
8-17 under Section 3.02 of this Act. <The director's authority to award
8-18 a contract under this subsection expires September 1, 1993. This
8-19 subsection expires January 1, 1995.>
8-20 SECTION 9. Section 4.01, State Lottery Act (Article 179g,
8-21 Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
8-22 to read as follows:
8-23 (c) A person claiming or attempting to claim a lottery prize
8-24 or a share of a lottery prize represents that the ticket or other
8-25 item showing the person to be entitled to such a prize was obtained
9-1 through lawful means and that the ticket or item is not stolen,
9-2 forged, altered, or previously redeemed.
9-3 SECTION 10. Section 4.02, State Lottery Act (Article 179g,
9-4 Vernon's Texas Civil Statutes), is amended to read as follows:
9-5 Sec. 4.02. Certain Sales of Tickets Prohibited. (a) A
9-6 person commits an offense if the person intentionally or knowingly
9-7 sells a ticket at a price the person knows is greater than that
9-8 fixed by the division or by the lottery operator authorized to set
9-9 that price. An offense under this subsection is a Class A
9-10 misdemeanor.
9-11 (b) Except as provided by this subsection, a person who is
9-12 not a sales agent or an employee of a sales agent commits an
9-13 offense if the person intentionally or knowingly sells a ticket.
9-14 An offense under this subsection is a felony of the third degree.
9-15 A lottery operator may sell tickets to a licensed sales agent. A
9-16 person who is not a sales agent may distribute tickets as premiums
9-17 to customers, employees, or other persons who deal with the person
9-18 if no purchase <or service> is required to entitle the recipient to
9-19 the ticket. A qualified organization as defined in section 2(a),
9-20 Charitable Raffle Enabling Act (Article 179f, Vernon's Texas Civil
9-21 Statutes), may distribute tickets as a prize in a raffle authorized
9-22 by the Charitable Raffle Enabling Act.
9-23 (c) A person commits an offense if the person sells a ticket
9-24 at a location other than the location of a sales agency. An
9-25 offense under this subsection is a Class A misdemeanor.
10-1 (d) A sales agent or an employee of a sales agent commits an
10-2 offense if that person <may not> intentionally or knowingly sells
10-3 or offers <sell or> offer to sell a ticket to an individual that
10-4 the person knows is younger than 18 years of age. An offense under
10-5 this Subsection is a Class C misdemeanor.
10-6 (e) The following persons may not purchase <A person may not
10-7 sell> a ticket or claim, collect, or otherwise receive <pay> a
10-8 lottery prize or a share of a lottery prize <to another person that
10-9 the person knows is>:
10-10 (1) a member, officer, or employee of a person that
10-11 has a contract with the division to sell or lease goods or services
10-12 used in the lottery;
10-13 (2) a member, officer, or employee of a lottery
10-14 operator;
10-15 (3) an officer or employee of the commission
10-16 <comptroller>; or
10-17 (4) a spouse, child, brother, sister, or parent
10-18 residing as a member of the same household in the principal place
10-19 of residence of a person described by Subdivision (1), (2), or (3)
10-20 of this subsection.
10-21 (f) A person 18 years of age or older may purchase a ticket
10-22 to give as a gift to another person, including an individual
10-23 younger than 18 years of age. If an individual younger than 18
10-24 years of age directly purchases a ticket or if an individual listed
10-25 in Subsections (e)(1), (e)(2), (e)(3), or (e)(4) of this section
11-1 purchases a ticket or attempts to claim, collect, or otherwise
11-2 receive a lottery prize or a share of a lottery prize, the
11-3 individual is not eligible to receive a prize or share of a prize,
11-4 and the prize or share of a prize otherwise payable on the ticket
11-5 is treated as an unclaimed prize as provided by Section 5.05 of
11-6 this Act.
11-7 (g) A sales agent or an employee of a sales agent commits an
11-8 offense if the person intentionally or knowingly sells a ticket to
11-9 another person by extending credit or lending money to the person
11-10 to enable the person to purchase the ticket. An offense under this
11-11 subsection is a Class C misdemeanor.
11-12 (h) A person commits an offense if the person <may not
11-13 purchase> intentionally or knowingly sells a ticket and:
11-14 (1) accepts <with> a food stamp coupon issued under
11-15 the food stamp program administered under Chapter 33, Human
11-16 Resources Code as payment;
11-17 (2) accepts <with> a credit card or a debit card as a
11-18 source of payment;
11-19 (3) the sale is made over the telephone; or
11-20 (4) the sale is made by mail-order sales.
11-21 (i) A person commits an offense if that person purchases
11-22 <may not pay for> a ticket with a food stamp coupon issued under
11-23 the food stamp program under Chapter 33, Human Resources Code, or
11-24 from the proceeds of a check issued as a payment under the Aid to
11-25 Families with Dependent Children program administered under Chapter
12-1 31, Human Resources Code.
12-2 (j) An offense under subsection (h) or (i) of this section
12-3 is a Class C misdemeanor.
12-4 (k) A person commits an offense if, for financial gain, the
12-5 person establishes or promotes a group purchase or pooling
12-6 arrangement under which tickets are purchased and any prizes are
12-7 divided among multiple purchasers of a winning ticket, and that
12-8 person intentionally or knowingly:
12-9 (1) uses any part of the funds solicited for other
12-10 than the purchase of tickets on behalf of the group or pool; or
12-11 (2) retains a share of any prize awarded as
12-12 compensation for establishing or promoting the group purchase or
12-13 pooling arrangement.
12-14 (l) An offense under subsection (k) of this section is a
12-15 felony of the third degree.
12-16 SECTION 11. Section 4.03(d), State Lottery Act (Article
12-17 179g, Vernon's Texas Civil Statutes), is amended to read as
12-18 follows:
12-19 (d) In this section, "claim" means any attempt, successful
12-20 or unsuccessful, to claim a lottery prize. An offense under
12-21 Subsection (c) of this section is a Class A misdemeanor unless it
12-22 is shown on the trial of the offense that:
12-23 (1) the amount claimed <or attempted to be claimed> is
12-24 greater than $200 but not more than $10,000, in which event the
12-25 offense is a felony of the third degree;
13-1 (2) the amount claimed <or attempted to be claimed> is
13-2 greater than $10,000, in which event the offense is a felony of the
13-3 second degree; or
13-4 (3) the person has previously been convicted of an
13-5 offense under this section, in which event the offense is a felony
13-6 of the third degree, unless the offense is designated as a felony
13-7 of the second degree under Subdivision (2) of this subsection.
13-8 SECTION 12. Section 4.045(a), State Lottery Act (Article
13-9 179g, Vernon's Texas Civil Statutes), is amended to read as
13-10 follows:
13-11 (a) A person commits an offense if the person intentionally
13-12 or<,> knowingly<, recklessly, or with criminal negligence> makes a
13-13 material and false, incorrect, or deceptive statement to a person
13-14 conducting an investigation or exercising discretion under this Act
13-15 of a rule adopted under this Act.
13-16 SECTION 13. Article 4, State Lottery Act (Article 179g,
13-17 Vernon's Texas Civil Statutes), is amended by adding Section 4.07
13-18 to read as follows:
13-19 Sec. 4.07. AGGREGATION OF OFFENSES. When amounts are
13-20 claimed, attempted to be claimed, or otherwise obtained in
13-21 violation of this Act pursuant to one scheme or continuing course
13-22 of conduct, whether from the same or several sources, the conduct
13-23 may be considered as one offense and the amounts aggregated in
13-24 determining the grade of the offense.
13-25 SECTION 14. Sections 5.02(b), (h) and (j), State Lottery Act
14-1 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
14-2 as follows:
14-3 (b) Money in the state lottery account shall be used only
14-4 for the following purposes and shall be distributed as follows:
14-5 (1) the payment of prizes to the holders of winning
14-6 tickets;
14-7 (2) the payment of costs incurred in the operation and
14-8 administration of the lottery, including any fees received by a
14-9 lottery operator, provided that the costs incurred in a fiscal
14-10 biennium may not exceed an amount equal to 15 percent of the gross
14-11 revenue accruing from the sale of tickets in that biennium;
14-12 (3) the establishment of a pooled bond fund, lottery
14-13 prize reserve fund, unclaimed prize fund, and prize payment
14-14 account;
14-15 (4) the transfer of amounts to the state lottery
14-16 stabilization fund as provided by Subsection (c), (d), and (e) of
14-17 this section; and
14-18 (5) <(4)> the balance, after creation of a reserve
14-19 sufficient to pay the amounts needed or estimated to be needed
14-20 under <provided by> Subdivisions (1), (2), and (3) <(2)> of this
14-21 subsection, to be transferred to the unobligated portion of the
14-22 general revenue fund, on or before the 15th day of each month.
14-23 (h) In this section:
14-24 (1) "Annual estimate of net lottery revenue" means the
14-25 estimated amount of net lottery revenue for a fiscal year, as
15-1 determined by the comptroller for purposes of the biennial revenue
15-2 estimate required by Article III, Section 49a, of the Texas
15-3 Constitution.
15-4 (2) "Gross lottery revenue" means the sum of:
15-5 (A) the gross revenue from the sale of tickets;
15-6 and
15-7 (B) license and application fees collected under
15-8 this Act.
15-9 (3) "Monthly estimate of net lottery revenue" means an
15-10 amount equal to one-twelfth the annual estimate of net lottery
15-11 revenue for the fiscal year that includes the month for which the
15-12 monthly estimate is made.
15-13 (4) "Net lottery revenue" means the gross lottery
15-14 revenue minus the amounts distributed or obligated for a purpose
15-15 described by Subsections (b)(1) through (b)(3) <and (b)(2)> of this
15-16 section.
15-17 (j) Notwithstanding Subsection (b)(5) <(b)(4)> and
15-18 Subsection (d) of this section, the initial transfer of revenue
15-19 from the state lottery account to the unobligated portion of the
15-20 general revenue fund and the state lottery stabilization fund under
15-21 those subsections shall be made on the 15th day of the month
15-22 following the month in which the earlier of the following occurs:
15-23 (1) the first ticket is sold to a player under this
15-24 Act; or
15-25 (2) the director receives liquidated damages or a
16-1 payment under a performance bond under a contract with a lottery
16-2 operator.
16-3 SECTION 15. Sections 5.03(j) and (l), State Lottery Act
16-4 (Article 179g, Vernon's Texas Civil Statutes), are amended to read
16-5 as follows:
16-6 (j) The director shall deduct the amount of a delinquent tax
16-7 or other money from the winnings of a person who has been finally
16-8 determined to be:
16-9 (1) delinquent in the payment of a tax or other money
16-10 collected by the comptroller, the state treasurer, or the Texas
16-11 Alcoholic Beverage Commission;
16-12 (2) delinquent in making child support payments
16-13 administered or collected by the attorney general; <or>
16-14 (3) in default on a loan guaranteed under Chapter 57,
16-15 Education Code; or
16-16 (4) in default on a loan made under Chapter 52,
16-17 Education Code.
16-18 (l) The attorney general, comptroller, state treasurer,
16-19 Texas Alcoholic Beverage Commission, Texas Higher Education
16-20 Coordinating Board, and Texas Guaranteed Student Loan Corporation
16-21 shall each provide the director with a report of persons who have
16-22 been finally determined to be delinquent in the payment of a tax or
16-23 other money collected by the agency. The commission <comptroller>
16-24 shall adopt rules regarding the form and frequency of reports under
16-25 this subsection.
17-1 SECTION 16. This Act takes effect January 1, 1994.
17-2 SECTION 17. The importance of this legislation and the
17-3 crowded condition of the calendars in both houses create an
17-4 emergency and an imperative public necessity that the
17-5 constitutional rule requiring bills to be read on three several
17-6 days in each house be suspended, and this rule is hereby suspended,
17-7 and that this Act take effect and be in force according to its
17-8 terms, and it is so enacted.