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78R4075 YDB-D
By: Solomons H.B. No. 794
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Lottery
Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 466.014, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) A contract between the division and a lottery operator
under Subsection (b) must contain a provision allowing the contract
to be terminated without penalty if the division is abolished.
SECTION 2. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.026 to read as follows:
Sec. 466.026. COMPREHENSIVE BUSINESS PLAN. (a) The
commission shall develop a comprehensive business plan to guide the
commission's major initiatives. The plan must at a minimum
include:
(1) a description of each commission program and
project;
(2) key management information;
(3) accurate financial data; and
(4) a detailed financial management plan.
(b) The commission shall at least annually review the
comprehensive business plan to assess the overall performance and
value of each program and project.
SECTION 3. Subchapter C, Chapter 466, Government Code, is
amended by adding Section 466.1005 to read as follows:
Sec. 466.1005. PROCUREMENTS. (a) The commission may
purchase or lease facilities, goods, and services and make any
purchases, leases, or contracts necessary for carrying out the
purposes of this chapter.
(b) The commission shall review and must approve all major
procurements as provided by commission rule. The commission by
rule shall establish a procedure to determine what constitutes a
major procurement based on the cumulative value of a contract and
other relevant factors.
(c) The commission may delegate to the executive director
the authority to approve procurements other than major
procurements.
SECTION 4. Sections 466.101(a) and (b), Government Code,
are amended to read as follows:
(a) The commission and executive director may establish
procedures for the purchase or lease of facilities, goods, and
services and make any purchases, leases, or contracts that are
necessary for carrying out the purposes of this chapter. The
procedures must, as determined feasible and appropriate by the
commission and executive director, promote competition to the
maximum extent possible.
(b) In all procurement decisions, the commission and
executive director shall take into account the particularly
sensitive nature of the lottery and shall act to promote and ensure
integrity, security, honesty, and fairness in the operation and
administration of the lottery and the objective of producing
revenues for the state treasury.
SECTION 5. Section 466.158, Government Code, is amended by
adding Subsections (d), (e), and (f) to read as follows:
(d) In making a determination whether to renew a license,
the commission shall consider the compliance history of a license
holder. The commission shall adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(e) After an opportunity for a hearing, the commission may
deny an application for renewal of a license if the applicant's
compliance history reveals conduct that is inconsistent with this
chapter or the commission's rules adopted under this chapter in the
specific areas considered by the commission in accordance with the
rules adopted under Subsection (d).
(f) The commission by rule may adopt a system under which
licenses expire on various dates during the year. For the year in
which the license expiration date is changed, the commission shall
prorate license fees on a monthly basis so that each license holder
pays only that portion of the license fee that is allocable to the
number of months during which the license is valid. On renewal of
the license on the new expiration date, the total license renewal
fee is payable.
SECTION 6. Section 467.002, Government Code, is amended to
read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to Chapter 325 (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the commission is abolished
and this chapter, Chapter 466, and Chapter 2001, Occupations Code,
expire [Act expires] September 1, 2015 [2003].
SECTION 7. Sections 467.021(a) and (b), Government Code,
are amended to read as follows:
(a) The commission is composed of five [three] members
appointed by the governor with the advice and consent of the senate.
(b) Appointments [In making appointments] to the commission
shall be made without [, the governor shall strive to achieve
representation by all the population groups of the state with]
regard to the [economic status, sex,] race, color, disability, sex,
religion, age, or national origin of the appointees [and
ethnicity].
SECTION 8. Section 467.022, Government Code, is amended to
read as follows:
Sec. 467.022. TERM OF OFFICE. Members hold office for
staggered terms of six years with the terms of either one or two
members [member's term] expiring February 1 of each odd-numbered
year.
SECTION 9. Section 467.024, Government Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), and its subsequent
amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of bingo or
lottery; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of bingo or
lottery.
(d) A person may not act as the general counsel to the
commission if the person is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission.
SECTION 10. Subchapter B, Chapter 467, Government Code, is
amended by adding Section 467.0255 to read as follows:
Sec. 467.0255. TRAINING. (a) A person who is appointed to
and qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission;
(2) the programs operated by the commission;
(3) the role and functions of the commission;
(4) the rules of the commission with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the commission;
(6) the results of the most recent formal audit of the
commission;
(7) the requirements of:
(A) the open meetings law, Chapter 551;
(B) the public information law, Chapter 552;
(C) the administrative procedure law, Chapter
2001; and
(D) other laws relating to public officials,
including conflict-of-interest laws; and
(8) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 11. Sections 467.026(a) and (c), Government Code,
are amended to read as follows:
(a) It is a ground for removal from the [The governor may
remove a] commission that a member [if the member]:
(1) does not have at the time of taking office
[appointment] the qualifications required by Sections 467.023 and
467.024 [for appointment to the commission];
(2) does not maintain during service on the commission
the qualifications required by Sections 467.023 and 467.024 [for
appointment to the commission];
(3) is ineligible for membership under [violates a
prohibition established by] Section 467.023, 467.024, or 467.025;
(4) cannot discharge the member's duties for a
substantial part of the member's term [for which the member is
appointed] because of illness or disability; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved [unless the
absence is excused] by majority vote of the commission.
(c) If the executive director [presiding officer] has
knowledge that a potential ground for removal exists, the executive
director [presiding officer] shall notify the presiding officer of
the commission of the potential ground. The presiding officer
shall then notify the governorand the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the executive director
shall notify the next highest ranking officer of the commission,
who shall then notify the governor and the attorney general that a
potential ground for removal exists.
SECTION 12. Subchapter B, Chapter 467, Government Code, is
amended by adding Sections 467.037-467.040 to read as follows:
Sec. 467.037. DIVISION OF RESPONSIBILITIES. The commission
shall develop and implement policies that clearly separate the
policymaking responsibilities of the commission and the management
responsibilities of the executive director and the staff of the
commission.
Sec. 467.038. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
(a) The executive director or the executive director's designee
shall prepare and maintain a written policy statement that
implements a program of equal employment opportunity to ensure that
all personnel decisions are made without regard to race, color,
disability, sex, religion, age, or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the commission's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human
Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Sec. 467.039. REQUIREMENTS AND STANDARDS OF CONDUCT
INFORMATION. The executive director or the executive director's
designee shall provide to members of the commission and to
commission employees, as often as necessary, information regarding
the requirements for office or employment under this chapter,
including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers
or employees.
Sec. 467.040. STATE EMPLOYEE INCENTIVE PROGRAM
INFORMATION. The executive director or the executive director's
designee shall provide to commission employees information and
training on the benefits and methods of participation in the state
employee incentive program.
SECTION 13. Subchapter C, Chapter 467, Government Code, is
amended by adding Sections 467.109-467.112 to read as follows:
Sec. 467.109. TECHNOLOGY POLICY. The commission shall
develop and implement a policy requiring the executive director and
commission employees to research and propose appropriate
technological solutions to improve the commission's ability to
perform its functions. The technological solutions must:
(1) ensure that the public is able to easily find
information about the commission on the Internet;
(2) ensure that persons who want to use the
commission's services are able to:
(A) interact with the commission through the
Internet; and
(B) access any service that can be provided
effectively through the Internet; and
(3) be cost-effective and developed through the
commission's planning processes.
Sec. 467.110. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Sec. 467.111. PUBLIC PARTICIPATION. The commission shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the jurisdiction of the commission.
Sec. 467.112. COMPLAINTS. (a) The commission shall
maintain a file on each written complaint filed with the commission
or a division of the commission. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
commission or a division of the commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the complaint.
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission's policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation.
(d) The commission shall publish procedures covering the
entire complaint process from submission to disposition.
(e) The commission by rule shall require an investigation
related to a complaint filed with the commission or a division of
the commission to be completed within a reasonable time.
(f) The commission shall analyze the complaints filed with
the board to identify any trends or issues related to certain
violations.
SECTION 14. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.0555 to read as follows:
Sec. 2001.0555. COMPLIANCE MONITORING. The commission
shall adopt rules to govern the commission's monitoring of a
license holder to determine if the license holder is in compliance
with this chapter or rules adopted under this chapter. The rules
must at a minimum address audits and inspections and other
compliance and enforcement activities.
SECTION 15. Section 2001.057, Occupations Code, is amended
by adding Subsections (h) and (i) to read as follows:
(h) The committee shall annually develop a work plan
detailing the committee's objectives and the issues to be addressed
by the committee during the year. The plan must:
(1) assess trends in the charitable bingo industry;
(2) review bingo rules to determine whether changes,
additions, or deletions are needed; and
(3) address other issues as determined by the
commission.
(i) The committee shall perform a review at the end of each
year to:
(1) assess the committee's accomplishments during the
year;
(2) identify opportunities for improving the
commission's regulation of bingo; and
(3) develop specific recommendations for commission
action.
SECTION 16. Section 2001.101, Occupations Code, is amended
to read as follows:
Sec. 2001.101. AUTHORIZED ORGANIZATION. (a) The
commission may license a person who is an authorized organization
eligible for a license to conduct bingo if the person has been in
existence for the time required by commission rule to ensure the
continuity and bona fide nature of the organization and is:
(1) a religious society [that has existed in this
state for at least eight years];
(2) a nonprofit organization:
(A) whose predominant activities are for the
support of medical research or treatment programs; and
(B) that [for at least three years]:
(i) has [must have had] a governing body or
officers elected by a vote of members or by a vote of delegates
elected by the members; or
(ii) is [must have been] affiliated with a
state or national organization organized to perform the same
purposes as the nonprofit organization;
(3) a fraternal organization;
(4) a veterans organization; or
(5) a volunteer fire department.
(b) A fraternal organization:
(1) [must have been organized in this state for at
least three years;
[(2)] must have [had during the three-year period] a
bona fide membership actively and continuously engaged as an
organization in furthering its authorized purposes; and
(2) [(3)] may not have authorized a person on behalf of
its membership, governing body, or officers to support or oppose a
particular candidate for public office by:
(A) making political speeches;
(B) passing out cards or other political
literature;
(C) writing letters;
(D) signing or circulating petitions;
(E) making campaign contributions; or
(F) soliciting votes.
SECTION 17. Section 2001.103(d), Occupations Code, is
amended to read as follows:
(d) An organization operating under a temporary license is
subject to:
(1) the taxes and fees authorized or imposed by this
chapter; [and]
(2) the standard licensing oversight of the
commission, including audits and inspections; and
(3) the other provisions of this chapter to the extent
they can be made applicable.
SECTION 18. Section 2001.152, Occupations Code, is amended
to read as follows:
Sec. 2001.152. ELIGIBILITY. [(a)] The commission may
issue a commercial lessor license [only] to[:
[(1) a licensed authorized organization that owns or
leases a premises where bingo is or will be conducted or an
association of licensed authorized organizations that jointly own
or lease premises where bingo is or will be conducted and that the
organization or association leases or offers for lease to one or
more other authorized organizations for the conduct of bingo;
[(2)] a person who leases premises on which bingo is
conducted to not more than seven [a single] licensed authorized
organizations [organization that subleases or will sublease the
premises to one or more other licensed authorized organizations for
the conduct of bingo; or
[(3) a person who leases premises for the total
control and exclusive use of only one licensed authorized
organization as that organization's primary business office].
[(b) Notwithstanding Subsection (a), a person who was a
licensed commercial lessor on June 10, 1989, whose license has been
in effect continuously since that date, and who is otherwise
eligible for the license may renew the license.]
SECTION 19. Subchapter G, Chapter 2001, Occupations Code,
is amended by adding Section 2001.3015 to read as follows:
Sec. 2001.3015. LICENSING RULES. The commission by rule
shall:
(1) establish comprehensive qualifications for a
person to be licensed or the person's license to be renewed under
this chapter;
(2) develop a standard license renewal process, from
submission to completion, for each license issued under this
chapter to ensure that a license holder continues to meet the
eligibility requirements provided by this chapter and commission
rule; and
(3) establish standards of conduct for a person
licensed under this chapter.
SECTION 20. Section 2001.351, Occupations Code, is amended
to read as follows:
Sec. 2001.351. DENIAL OF LICENSE. (a) The commission may
deny an application for a license or renewal of a license issued
under this chapter for a cause that would permit or require the
suspension or revocation of a license issued under this chapter.
(b) In making a determination whether to renew a license,
the commission shall consider the compliance history of a license
holder. The commission shall adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(c) After an opportunity for a hearing, the commission may
deny an application for renewal of a license if the applicant's
compliance history reveals conduct that is inconsistent with this
chapter or the commission's rules adopted under this chapter in the
specific areas considered by the commission in accordance with the
rules adopted under Subsection (b).
SECTION 21. Section 2001.355, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) Before temporarily suspending a license, the director
of bingo operations must follow any prehearing rules adopted by the
commission to determine if the license holder's continued operation
may constitute:
(1) an immediate threat to the health, safety, morals,
or welfare of the public; or
(2) a financial loss to this state, which includes a
license holder's failure to remit taxes under Section 2001.501 or
prize fee payments under Section 2001.502 to the commission as
required by those sections.
(d) The commission shall adopt rules to govern the temporary
suspension of a license under this section.
SECTION 22. Section 2001.406(a), Occupations Code, is
amended to read as follows:
(a) The rent charged by a licensed commercial lessor to a
licensed authorized organization to conduct bingo may not exceed
$600 for each bingo occasion conducted on the lessor's premises
[unless the organization subleases the premises to one or more
other licensed authorized organizations to conduct bingo, in which
event the rent charged by the licensed commercial lessor may not
exceed $600 for each day].
SECTION 23. Section 2001.451, Occupations Code, is amended
by adding Subsections (g) and (h) to read as follows:
(g) The commission shall adopt rules to allow a licensed
authorized organization to retain a maximum percentage of the
organization's gross receipts as operating capital in the
organization's bingo account. The gross receipts retained may not
exceed an amount established by commission rule.
(h) The commission by rule shall require a licensed
authorized organization to maintain a positive cash flow in the
organization's bingo account. The commission shall sanction an
organization that fails to comply with the rule.
SECTION 24. Sections 2001.457(a), (b), and (d), Occupations
Code, are amended to read as follows:
(a) Before the end of each quarter, a licensed authorized
organization shall disburse for charitable purposes all [an amount
not less than 35 percent] of the organization's adjusted gross
receipts from the preceding quarter, except for the amount that may
be retained as provided by Section 2001.451(g) [, less the amount of
authorized expenses not to exceed six percent of the gross
receipts].
(b) The commission shall sanction [If] a licensed
authorized organization that fails to make [meet] the disbursement
required by Subsection (a) or to make any disbursement for
charitable purposes [requirements of this section] for a quarter.
The [, the] commission in applying appropriate sanctions may
consider whether, taking into account the amount required to be
distributed during that quarter and the three preceding quarters
and the charitable distributions for each of those quarters, the
organization has distributed a total amount sufficient to have met
the disbursement requirements [35 percent requirement] for that
quarter and the three preceding quarters combined.
(d) In this section, "adjusted [:
[(1) "Adjusted] gross receipts" means gross receipts
less the total [amount of cost of goods purchased by an organization
and] prizes paid in the preceding quarter [;] and the licensed
authorized organization's reasonable and necessary expenses as
provided by Sections 2001.458 and 2001.459 and by commission rule
[(2) "Cost of goods purchased by an organization"
means the cost of bingo paper or pull-tab bingo tickets purchased by
the organization].
SECTION 25. Section 2001.458, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) In accordance with this section and Section 2001.459,
the commission by rule shall define a licensed authorized
organization's reasonable and necessary expenses under this
chapter.
SECTION 26. Subchapter M, Chapter 2001, Occupations Code,
is amended by adding Section 2001.6015 to read as follows:
Sec. 2001.6015. ADMINISTRATIVE PENALTY SCHEDULE; TIMELINE.
(a) The commission by rule shall adopt an administrative penalty
schedule to define and summarize violations of this chapter or
commission rules adopted under this chapter to ensure the amounts
of penalties imposed are appropriate to the violation.
(b) The administrative penalty schedule must:
(1) allow deviations from the schedule for mitigating
circumstances clearly established by the commission;
(2) include a list of the most common violations and
the penalty amounts assessed for those violations; and
(3) provide the penalty amount in accordance with the
seriousness or frequency of each type of violation.
(c) The commission by rule shall establish a timeline for
the resolution of a violation of this chapter or commission rules
adopted under this chapter. The rules must include:
(1) a designated period for a person licensed under
this chapter to provide proof of corrective measures taken as
required by the commission for a violation of this chapter or
commission rules; and
(2) an approach and a designated period for the
commission to subsequently monitor a person found to have committed
a significant violation of this chapter or commission rules.
SECTION 27. Section 466.003, Government Code, and Section
2001.057(b), Occupations Code, are repealed.
SECTION 28. (a) Not later than January 1, 2004, the Texas
Lottery Commission shall:
(1) adopt the rules and procedures required by Section
466.1005, Government Code, as added by this Act; and
(2) adopt the rules required by:
(A) Section 466.158(d), Government Code, as
added by this Act;
(B) Section 2001.3015, Occupations Code, as
added by this Act; and
(C) Sections 2001.101, 2001.355, 2001.451, and
2001.458, Occupations Code, as amended by this Act.
(b) Not later than September 1, 2004, the Texas Lottery
Commission shall:
(1) adopt the comprehensive business plan required by
Section 466.026, Government Code, as added by this Act;
(2) adopt the rules required by Section 2001.0555,
Occupations Code, as added by this Act; and
(3) adopt the administrative penalty schedule and
timeline required by Section 2001.6015, Occupations Code, as added
by this Act.
SECTION 29. (a) The changes in law made by this Act in the
prohibitions or qualifications applying to a member of the Texas
Lottery Commission do not affect the entitlement of a member
serving on the Texas Lottery Commission immediately before
September 1, 2003, to continue to serve and function as a member of
the Texas Lottery Commission for the remainder of the member's
term. Those changes in law apply only to a member appointed on or
after September 1, 2003.
(b) Promptly after this Act takes effect, the governor shall
appoint two additional members to the Texas Lottery Commission. In
appointing those members, the governor shall appoint one person to
a term expiring February 1, 2007, and one to a term expiring
February 1, 2009.
(c) The change in law made by this Act to Chapter 467,
Government Code, relating to the investigation of a complaint
applies only to a complaint filed with the Texas Lottery Commission
on or after September 1, 2003. A complaint filed with the
commission or a division of the commission before September 1,
2003, is governed by the law as it existed immediately before that
date, and the former law is continued in effect for that purpose.
(d) The change in law made by this Act requiring the Texas
Lottery Commission to approve a procurement applies only to a
procurement or a contract for a procurement made on or after the
effective date of this Act. A procurement or procurement contract
made before the effective date of this Act is governed by the law in
effect when the procurement or contract was made, and the former law
is continued in effect for that purpose.
(e) The changes in law made by this Act governing
eligibility of a person for a license apply only to the issuance or
renewal of a license by the Texas Lottery Commission under Chapter
466, Government Code, as amended by this Act, or Chapter 2001,
Occupations Code, as amended by this Act, on or after the effective
date of this Act. A license issued by the Texas Lottery Commission
under either of those laws before the effective date of this Act is
governed by the applicable licensing requirements in effect when
the license was last issued or renewed until the license expires or
is renewed as provided by Chapter 466, Government Code, as amended
by this Act, or Chapter 2001, Occupations Code, as amended by this
Act.
(f) The change in law made by this Act to Section 2001.457,
Occupations Code, applies to the charitable disbursements made by a
licensed authorized organization beginning with disbursements for
the second quarter of 2004. A charitable disbursement made by a
licensed authorized organization for a quarter before the second
quarter of 2004 is governed by the law in effect immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 30. This Act takes effect September 1, 2003.