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A BILL TO BE ENTITLED
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AN ACT
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relating to the licensing and regulation of lottery couriers by the |
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Texas Lottery Commission; requiring an occupational license; |
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authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 411.108, Government Code, is amended by |
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adding Subsection (a-3) to read as follows: |
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(a-3) The Texas Lottery Commission is entitled to obtain |
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criminal history record information as provided by Subsection (a-2) |
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that relates to a person licensed under Subchapter K, Chapter 466. |
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SECTION 2. Section 466.002, Government Code, is amended by |
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adding Subdivision (5-a) to read as follows: |
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(5-a) "Lottery courier" means a person licensed under |
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this chapter to act as an agent for a player in purchasing a ticket. |
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SECTION 3. Section 466.201(a), Government Code, is amended |
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to read as follows: |
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(a) The commission is entitled to conduct an investigation |
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of and is entitled to obtain criminal history record information |
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maintained by the Department of Public Safety, the Federal Bureau |
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of Investigation Identification Division, or another law |
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enforcement agency to assist in the investigation of: |
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(1) a sales agent or an applicant for a sales agent |
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license; |
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(2) a person required to be named in a license |
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application; |
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(3) a lottery operator or prospective lottery |
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operator; |
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(4) an employee of a lottery operator or prospective |
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lottery operator, if the employee is or will be directly involved in |
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lottery operations; |
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(5) a person who manufactures or distributes lottery |
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equipment or supplies, or a representative of a person who |
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manufactures or distributes lottery equipment or supplies offered |
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to the lottery; |
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(6) a person who has submitted a written bid or |
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proposal to the commission in connection with the procurement of |
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goods or services by the commission, if the amount of the bid or |
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proposal exceeds $500; |
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(7) an employee or other person who works for or will |
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work for a sales agent or an applicant for a sales agent license; |
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(8) a person who proposes to enter into or who has a |
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contract with the commission to supply goods or services to the |
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commission; [or] |
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(9) a lottery courier or an applicant for a lottery |
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courier license; or |
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(10) if a person described in Subdivisions (1) through |
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(9) [(8)] is not an individual, an individual who: |
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(A) is an officer or director of the person; |
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(B) holds more than 10 percent of the stock in the |
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person; |
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(C) holds an equitable interest greater than 10 |
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percent in the person; |
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(D) is a creditor of the person who holds more |
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than 10 percent of the person's outstanding debt; |
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(E) is the owner or lessee of a business that the |
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person conducts or through which the person will conduct |
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lottery-related activities; |
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(F) shares or will share in the profits, other |
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than stock dividends, of the person; |
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(G) participates in managing the affairs of the |
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person; or |
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(H) is an employee of the person who is or will be |
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involved in: |
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(i) selling tickets; or |
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(ii) handling money from the sale of |
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tickets. |
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SECTION 4. Section 466.204, Government Code, is amended to |
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read as follows: |
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Sec. 466.204. ACCESS TO INTERNAL REVENUE SERVICE |
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INFORMATION. The executive director may obtain information |
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relating to a person's qualification for licensing, employment, or |
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contracting under this chapter from the Internal Revenue Service |
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under a contract between the comptroller and the Internal Revenue |
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Service on: |
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(1) a sales agent or an applicant for a sales agent |
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license; |
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(2) an employee or prospective employee of the |
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commission; |
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(3) a person required to be named in a license |
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application; |
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(4) a lottery operator or prospective lottery |
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operator; |
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(5) an employee of a lottery operator or prospective |
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lottery operator, if the employee is or will be directly involved in |
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lottery operations; |
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(6) a person who manufactures or distributes lottery |
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equipment or supplies, or a representative of a person who |
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manufactures or distributes lottery equipment or supplies offered |
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to the lottery; |
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(7) a person who has submitted a written bid or |
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proposal to the commission in connection with the procurement of |
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goods or services by the commission; |
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(8) an employee or other person who works for or will |
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work for a sales agent or an applicant for a sales agent license; |
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[or] |
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(9) a person who proposes to enter into or who has a |
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contract with the commission to supply goods or services to the |
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commission; |
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(10) a lottery courier or an applicant for a lottery |
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courier license; or |
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(11) an employee or other person who works for or will |
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work for a lottery courier or an applicant for a lottery courier |
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license. |
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SECTION 5. Chapter 466, Government Code, is amended by |
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adding Subchapter K to read as follows: |
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SUBCHAPTER K. LICENSING AND OPERATION |
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OF LOTTERY COURIERS |
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Sec. 466.501. LICENSE REQUIRED; ISSUANCE. (a) A person may |
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not act as an agent for a player in purchasing a ticket unless the |
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person holds a lottery courier license issued under this |
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subchapter. |
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(b) The director may issue a lottery courier license only to |
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a person the director finds has the experience, character, and |
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general fitness to ensure the person's participation as a lottery |
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courier will not detract from the integrity, security, honesty, and |
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fairness of the operation of the lottery. |
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(c) As a condition to issuance of a lottery courier license, |
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a lottery courier shall implement, before offering a service as a |
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lottery courier, any independent testing required by commission |
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rule. |
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Sec. 466.502. LICENSE APPLICATION; FEE. (a) An applicant |
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for a license under this subchapter must: |
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(1) apply to the division under rules adopted by the |
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commission; and |
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(2) provide: |
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(A) information necessary to determine the |
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applicant's eligibility for a lottery courier license, including |
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whether the applicant demonstrates compliance with provisions of |
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this chapter regulating ticket purchases; and |
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(B) other information the commission considers |
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necessary. |
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(b) The applicant must include an application fee with each |
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application. The director shall set the application fee in an |
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amount at least sufficient to cover the costs incurred by the |
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commission and by the Department of Public Safety to process the |
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application. |
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Sec. 466.503. DENIAL OF APPLICATION OR SUSPENSION OR |
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REVOCATION OF LICENSE. (a) After a hearing, the director shall |
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deny an application for a lottery courier license or the commission |
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shall suspend or revoke a lottery courier license if the director or |
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commission, as applicable, finds the applicant or lottery courier: |
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(1) is an individual who: |
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(A) has been convicted of a felony, criminal |
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fraud, gambling or a gambling-related offense, or a misdemeanor |
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involving moral turpitude, if less than 10 years has elapsed since |
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the termination of the sentence, parole, mandatory supervision, or |
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probation served for the offense; |
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(B) is or has been a professional gambler; |
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(C) is married to an individual: |
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(i) described in Paragraph (A) or (B); or |
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(ii) who is currently delinquent in the |
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payment of any state tax; |
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(D) is an officer or employee of the commission |
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or a lottery operator; or |
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(E) is a spouse, child, brother, sister, or |
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parent residing as a member of the same household in the principal |
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place of residence of a person described by Paragraph (D); |
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(2) is not an individual, and an individual described |
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in Subdivision (1): |
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(A) is an officer or director of the applicant or |
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lottery courier; |
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(B) holds more than 10 percent of the stock in the |
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applicant or lottery courier; |
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(C) holds an equitable interest greater than 10 |
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percent in the applicant or lottery courier; |
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(D) is a creditor of the applicant or lottery |
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courier who holds more than 10 percent of the applicant's or lottery |
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courier's outstanding debt; |
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(E) is the owner or lessee of a business the |
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applicant or lottery courier conducts or through which the |
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applicant will conduct a lottery courier business; |
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(F) shares or will share in the profits, other |
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than stock dividends, of the applicant or lottery courier; or |
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(G) participates in managing the affairs of the |
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applicant or lottery courier; |
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(3) has been finally determined to be delinquent in |
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the payment of a tax or other money collected by the comptroller, |
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the Texas Workforce Commission, or the Texas Alcoholic Beverage |
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Commission; |
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(4) is a person whose location for the lottery courier |
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business is: |
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(A) a location licensed for games of bingo under |
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Chapter 2001, Occupations Code; |
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(B) on land owned by: |
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(i) this state; or |
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(ii) a political subdivision of this state |
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and on which is located a public primary or secondary school, an |
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institution of higher education, or a state agency; or |
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(C) a location for which a person holds a wine and |
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malt beverage retailer's permit, mixed beverage permit, mixed |
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beverage permit with a retailer late hours certificate, private |
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club registration permit, or private club registration permit with |
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a retailer late hours certificate issued under Chapter 25, 28, 29, |
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or 32, Alcoholic Beverage Code, other than a location for which a |
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person holds a wine and malt beverage retailer's permit issued |
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under Chapter 25, Alcoholic Beverage Code, that derives less than |
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30 percent of the location's gross receipts from the sale or service |
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of alcoholic beverages; or |
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(5) has violated this chapter or a rule adopted under |
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this chapter. |
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(b) If the director proposes to deny an application for a |
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license or the commission proposes to suspend or revoke a license |
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under this section, the applicant or lottery courier is entitled to |
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written notice of the time and place of the hearing. A notice may be |
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served on an applicant or lottery courier personally or sent by |
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certified or registered mail, return receipt requested, to the |
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person's mailing address as it appears on the commission's records. |
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A notice must be served or mailed not later than the 20th day before |
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the hearing date. The commission shall provide for a formal |
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administrative hearings process. |
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Sec. 466.504. PROHIBITED TRANSACTIONS. A lottery courier |
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may not open an account or accept a request for lottery courier |
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services from a person who is: |
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(1) under 18 years of age; |
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(2) an employee, officer, director, or direct or |
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indirect owner of the lottery courier; |
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(3) related within the first degree by consanguinity |
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to an employee, officer, director, or direct or indirect owner of |
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the lottery courier; or |
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(4) identified on a restricted list, as prescribed by |
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commission rule. |
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Sec. 466.505. COMPLIANCE AUDITS; ANNUAL REPORTS. (a) At |
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the sole expense of the lottery courier, the lottery courier at |
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least annually shall contract with an independent auditor the |
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commission approves for an audit of the lottery courier. On |
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completion of the audit and the auditor's determination the lottery |
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courier is in compliance with this subchapter, the auditor shall |
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issue a certification of compliance to the lottery courier. |
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(b) A lottery courier shall provide to the commission, not |
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later than the 120th day after the last day of the lottery courier's |
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fiscal year: |
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(1) the lottery courier's financial statements audited |
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in accordance with generally accepted auditing standards and a copy |
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of the certificate of compliance issued as required under |
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Subsection (a); |
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(2) an evaluation of the lottery courier's management |
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in accordance with the Standards for Attestation Engagements 18 |
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standard established by the American Institute of Certified Public |
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Accountants; and |
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(3) an anti-money laundering compliance statement on a |
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form the commission prescribes and executed by the lottery |
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courier's designated anti-money laundering compliance officer. |
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Sec. 466.506. INSURANCE. A lottery courier shall maintain, |
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with the limits, coverage requirements, and minimum insurer ratings |
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prescribed by commission rule: |
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(1) cyber liability insurance; |
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(2) errors and omissions insurance; and |
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(3) directors and officers liability insurance. |
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Sec. 466.507. RESPONSIBLE GAMING PROTECTIONS. A lottery |
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courier shall: |
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(1) maintain a self-exclusion list and provide a |
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mechanism for a player to register through the lottery courier to be |
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excluded from the lottery courier's services; |
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(2) ensure to the commission's satisfaction that any |
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player on the lottery courier's self-exclusion list is prevented |
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from requesting lottery courier services; |
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(3) establish a limit approved by the commission on |
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the number or amount of daily ticket purchases for all players using |
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the lottery courier's services; |
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(4) provide a system for an individual player to set a |
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lower personal daily ticket purchase limit; |
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(5) accept only the payment methods authorized for a |
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lottery customer purchasing a ticket directly from a sales agent; |
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and |
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(6) provide player support to respond to player |
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inquiries and disputes, as the commission prescribes. |
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Sec. 466.508. ADVERTISING AND MARKETING. A lottery courier |
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shall: |
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(1) display prominently on the lottery courier's |
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Internet website or mobile Internet application a problem gambling |
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assistance message; |
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(2) ensure the lottery courier's services are not |
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advertised to individuals who have registered for the lottery |
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courier's self-exclusion list; and |
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(3) comply with the advertising guidelines of the |
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North American Association of State and Provincial Lotteries. |
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Sec. 466.509. RULES. The commission shall adopt rules to |
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implement this subchapter, which must include rules prohibiting |
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ticket sales: |
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(1) on credit; or |
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(2) to individuals: |
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(A) under 18 years of age; or |
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(B) not physically located in this state at the |
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time of the sale. |
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SECTION 6. Not later than February 1, 2026, the Texas |
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Lottery Commission shall adopt the rules necessary to implement the |
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changes in law made by this Act. |
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SECTION 7. This Act takes effect September 1, 2025. |