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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Texas Lottery Commission to |
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establish an Internet lottery game program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 466.002, Government Code, is amended by |
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adding Subdivision (11) to read as follows: |
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(11) "Private Internet agent" means a person that has |
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contracted with the commission to operate the Internet lottery game |
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program. |
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SECTION 2. Subchapter F, Chapter 466, Government Code, is |
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amended by adding Sections 466.257, 466.258, and 466.259 to read as |
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follows: |
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Sec. 466.257. INTERNET LOTTERY GAME PROGRAM. (a) The |
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commission shall establish and maintain an Internet lottery game |
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program that allows an eligible person to purchase lottery tickets |
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from a private Internet agent through the Internet. The commission |
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shall adopt the rules necessary to administer the program. The |
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other provisions of this chapter applicable to the sale of lottery |
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tickets apply to the sale of tickets under the program, except that |
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Section 466.152(d) does not apply to the sale of tickets by the |
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private Internet agent under this section. |
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(b) The commission shall select a private Internet agent, in |
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accordance with the standards and qualifications described in |
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Section 466.258(a), to operate a real-time and secure payment |
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option system for the Internet lottery game program. |
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(c) The commission shall offer for purchase over the |
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Internet and through an electronic distribution channel tickets for |
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each Lotto lottery game that involves a drawing and each |
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multijurisdiction lottery game offered by the commission. |
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(d) A person who purchases a ticket through the Internet |
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lottery game program shall be notified electronically of the amount |
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of any prize the person wins in connection with that ticket. A |
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prize in an amount less than $600 must be deposited directly into |
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the winner's bank account. The payment of a prize in an amount of |
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$600 or more may be made only by the director. |
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(e) The commission shall determine which games may be played |
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online and shall limit the persons authorized to purchase tickets |
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online to only eligible residents of this state in compliance with |
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the federal Unlawful Internet Gambling Enforcement Act of 2006. |
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(f) The commission by rule and in compliance with the |
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federal Unlawful Internet Gambling Enforcement Act of 2006 shall |
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develop a procedure to verify that a person is 18 years of age or |
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older before the person may establish an individual online lottery |
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account and purchase lottery tickets through the Internet lottery |
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game program. The commission shall adopt standards to prevent the |
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unauthorized use of individual online lottery accounts. |
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(g) The commission by rule may establish limitations on the |
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amount or number of monthly purchases that may be made through any |
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individual online lottery account. |
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Sec. 466.258. OPERATION OF INTERNET LOTTERY GAME PROGRAM. |
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(a) The commission shall contract with a private Internet agent to |
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offer for purchase from the private Internet agent lottery tickets |
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through the Internet. In addition to any other reasonable |
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qualifications required by the commission, the private Internet |
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agent must: |
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(1) demonstrate: |
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(A) extensive experience in handling secure |
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Internet financial transactions on a real-time basis; and |
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(B) the ability to maintain an Internet website |
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in compliance with the best industry standards related to security |
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and the protection of personal information; |
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(2) possess a demonstrable ability to create and |
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maintain an Internet website and subsites with a high volume of use |
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that meet or exceed electronic security standards in the electronic |
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payment or transfer industry such as a Statement on Auditing |
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Standards No. 70 Type II review; and |
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(3) submit to the commission a history of the agent's |
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financial accountability and compliance with generally accepted |
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accounting principles. |
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(b) The private Internet agent, with the cooperation and |
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approval of the commission, shall develop procedures to establish |
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individual online lottery accounts and unique identification |
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numbers for each player purchasing tickets from a private Internet |
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agent through the Internet and to verify the age and address of the |
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player and the payment method used by the player. |
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(c) The private Internet agent: |
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(1) may collect a reasonable transaction fee from each |
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player who establishes an individual online lottery account and |
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purchases a lottery ticket through that account; and |
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(2) is entitled to an incentive bonus for selling a |
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winning ticket as approved and provided by this chapter and |
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commission rule. |
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(d) The private Internet agent shall deliver to the |
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commission the money collected from Internet transactions for the |
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sale of a lottery ticket under the Internet lottery game program |
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within 48 hours of the agent's receipt of the money. The agent |
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shall: |
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(1) deliver to the commission records of each |
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transaction on a real-time basis or as otherwise required by the |
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commission; and |
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(2) deduct the agent's fees before delivering the |
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money to the commission. |
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(e) Notwithstanding Section 466.151(a), the private |
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Internet agent is not required to be licensed as a sales agent to |
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sell lottery tickets under the Internet lottery game program. |
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Sec. 466.259. INDIVIDUAL LOTTERY ACCOUNT. (a) A person |
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who is eligible to purchase a lottery ticket through the Internet |
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lottery game program may create a secure individual online lottery |
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account that is accessible through the Internet or by other secure |
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electronic means and may apply for an account: |
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(1) online through a commission-approved Internet |
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website by filling out the electronic application form on the |
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website; or |
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(2) through a sales agent or the private Internet |
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agent by filling out an application form in person and presenting to |
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the agent a valid Texas driver's license with a current address or |
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an official state-issued identification card. |
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(b) A sales agent or the private Internet agent shall |
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provide an application form for an individual online lottery |
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account to a person who requests an application. The sales agent or |
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private Internet agent shall verify that the person applying for |
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the account is 18 years of age or older. The agent may retain an |
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application processing fee in an amount established by commission |
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rule. |
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(c) The application form must be approved by the commission |
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or the commission's approved private Internet agent. A completed |
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application must include: |
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(1) the applicant's name, address, age, and driver's |
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license number or the number of an official state-issued |
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identification card; |
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(2) an e-mail address for the applicant; |
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(3) the last four digits of the applicant's social |
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security number; and |
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(4) any other information required by the commission |
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or the private Internet agent. |
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(d) A sales agent in accordance with commission rules shall |
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deliver to the private Internet agent through an electronic method |
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or the United States Postal Service all applications for individual |
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online lottery accounts received by the sales agent. |
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(e) The private Internet agent shall verify over the |
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Internet through a connection with the Department of Public Safety |
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the name, age, address, and driver's license number or the number of |
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an official state-issued identification card of any person applying |
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for an individual online lottery account. The department shall |
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cooperate with the commission and the private Internet agent to |
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provide the connection for purposes of this subsection. |
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(f) An individual online lottery account may not be |
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activated until the person applying for the account accesses the |
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Internet lottery game program website and follows the activation |
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and funding procedure established by the commission. Each account |
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holder must be issued electronically a unique individual online |
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lottery account access number designed to prevent other persons |
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from accessing the person's account. |
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(g) The commission shall develop a method by which a person |
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who has activated and funded an individual online lottery account |
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may purchase lottery tickets from a private Internet agent through |
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the Internet by using public or private computer terminals. |
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SECTION 3. Section 466.251(c), Government Code, is amended |
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to read as follows: |
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(c) The overall estimated odds of winning a prize in a |
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particular lottery game must be printed or displayed on each ticket |
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and prominently displayed in association with the sale of lottery |
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products. The estimate must be based on reasonable projections and |
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past experience. |
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SECTION 4. Section 466.303(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsection (b), a person who is |
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not a sales agent, [or] an employee of a sales agent, or the private |
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Internet agent commits an offense if the person intentionally or |
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knowingly sells a ticket. |
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SECTION 5. Section 466.304(a), Government Code, is amended |
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to read as follows: |
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(a) A person other than the private Internet agent commits |
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an offense if the person sells a ticket at a location other than the |
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location of a sales agency. |
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SECTION 6. Section 466.305, Government Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) Selling a ticket to another person through the |
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Internet lottery game program authorized under Section 466.257 does |
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not constitute selling a ticket by extending credit to the person |
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for purposes of Subsection (a). |
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SECTION 7. Section 466.3052(a), Government Code, is amended |
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to read as follows: |
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(a) A person commits an offense if the person intentionally |
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or knowingly sells a ticket and the person accepts anything other |
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than the following as payment for the ticket: |
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(1) United States currency; |
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(2) a negotiable instrument in the form of a check that |
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meets the requirements of Section 3.104, Business & Commerce Code; |
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(3) a debit made through a financial institution debit |
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card; |
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(4) a coupon or voucher issued by the commission for |
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purposes of purchasing a lottery ticket; [or] |
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(5) a mail order subscription on a mail order |
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subscription form authorized by the commission; or |
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(6) payment through an electronic transaction |
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authorized by the commission for the purchase of a ticket under the |
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Internet lottery game program. |
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SECTION 8. (a) The change in law made by this Act to |
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Chapter 466, Government Code, applies only to an offense committed |
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on or after the effective date of this Act. For purposes of this |
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section, an offense is committed before the effective date of this |
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Act if any element of the offense occurs before the effective date. |
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(b) An offense committed before the effective date of this |
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Act is governed by the law in effect when the offense was committed, |
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and the former law is continued in effect for that purpose. |
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SECTION 9. Not later than November 1, 2007, the Texas |
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Lottery Commission shall adopt the rules and procedures necessary |
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to implement the Internet lottery game program in accordance with |
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Chapter 466, Government Code, as amended by this Act. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |