78R3927 EMT-F

By:  Flores                                                       H.B. No. 1215


A BILL TO BE ENTITLED
AN ACT
relating to authorizing the Texas Lottery Commission to operate and administer keno and to allow a license to be issued under the State Lottery Act to a location that possesses certain permits issued under the Alcoholic Beverage Code. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 466.015(c), Government Code, is amended to read as follows: (c) The commission may adopt rules governing the establishment and operation of the lottery, including rules governing: (1) the type of lottery games to be conducted, including rules for conducting the game of keno; (2) the price of each ticket; (3) the number of winning tickets and amount of the prize paid on each winning ticket; (4) the frequency of the drawing or selection of a winning ticket; (5) the number and types of locations at which a ticket may be sold; (6) the method to be used in selling a ticket; (7) the use of vending machines or electronic or mechanical devices of any kind, other than machines or devices that dispense currency or coins as prizes; (8) the manner of paying a prize to the holder of a winning ticket; (9) the investigation of possible violations of this chapter or any rule adopted under this chapter; (10) the means of advertising to be used for the lottery; (11) the qualifications of vendors of lottery services or equipment; (12) the confidentiality of information relating to the operation of the lottery, including: (A) trade secrets; (B) security measures, systems, or procedures; (C) security reports; (D) bids or other information regarding the commission's contracts, if disclosure of the information would impair the commission's ability to contract for facilities, goods, or services on terms favorable to the commission; (E) personnel information unrelated to compensation, duties, qualifications, or responsibilities; and (F) information obtained by commission security officers or investigators; (13) the development and availability of a model agreement governing the division of a prize among multiple purchasers of a winning ticket purchased through a group purchase or pooling arrangement; (14) the criteria to be used in evaluating bids for contracts for lottery facilities, goods, and services; or (15) any other matter necessary or desirable as determined by the commission, to promote and ensure: (A) the integrity, security, honesty, and fairness of the operation and administration of the lottery; and (B) the convenience of players and holders of winning tickets. SECTION 2. Section 466.155(a), Government Code, is amended to read as follows: (a) After a hearing, the director shall deny an application for a license or the commission shall suspend or revoke a license if the director or commission, as applicable, finds that the applicant or sales agent: (1) is an individual who: (A) has been convicted of a felony, criminal fraud, gambling or a gambling-related offense, or a misdemeanor involving moral turpitude, if less than 10 years has elapsed since the termination of the sentence, parole, mandatory supervision, or probation served for the offense; (B) is or has been a professional gambler; (C) is married to an individual: (i) described in Paragraph (A) or (B); or (ii) who is currently delinquent in the payment of any state tax; (D) is an officer or employee of the commission or a lottery operator; or (E) is a spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of residence of a person described by Paragraph (D); (2) is not an individual, and an individual described in Subdivision (1): (A) is an officer or director of the applicant or sales agent; (B) holds more than 10 percent of the stock in the applicant or sales agent; (C) holds an equitable interest greater than 10 percent in the applicant or sales agent; (D) is a creditor of the applicant or sales agent who holds more than 10 percent of the applicant's or sales agent's outstanding debt; (E) is the owner or lessee of a business that the applicant or sales agent conducts or through which the applicant will conduct a ticket sales agency; (F) shares or will share in the profits, other than stock dividends, of the applicant or sales agent; or (G) participates in managing the affairs of the applicant or sales agent; (3) has been finally determined to be: (A) delinquent in the payment of a tax or other money collected by the comptroller, the Texas Workforce Commission, or the Texas Alcoholic Beverage Commission; (B) in default on a loan made under Chapter 52, Education Code; or (C) in default on a loan guaranteed under Chapter 57, Education Code; (4) is a person whose location for the sales agency is: (A) a location licensed for games of bingo under Chapter 2001, Occupations Code; or (B) on land that is owned by: (i) this state; or (ii) a political subdivision of this state and on which is located a public primary or secondary school, an institution of higher education, or an agency of the state; [or [(C) a location for which a person holds a wine and beer retailer's permit, mixed beverage permit, mixed beverage late hours permit, private club registration permit, or private club late hours permit issued under Chapter 25, 28, 29, 32, or 33, Alcoholic Beverage Code;] or (5) has violated this chapter or a rule adopted under this chapter. SECTION 3. (a) The Texas Lottery Commission may adopt the initial rules to implement the change in law made by this Act in the manner provided by law for the adoption of emergency rules, and may do so without finding that an imminent peril to the public health, safety, or welfare requires adoption of a rule on fewer than 30 days' notice. (b) If the commission adopts a rule under Subsection (a) of this section, this section is considered to be a requirement of state law for adoption of a rule on fewer than 30 days' notice, for purposes of Section 2001.034(a)(1), Government Code. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.