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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation and functions of the Texas Lottery |
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Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 466.3051(a), Government Code, is amended |
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to read as follows: |
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(a) A sales agent or an employee of a sales agent commits an |
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offense if with criminal negligence the person [intentionally or |
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knowingly] sells or offers to sell a ticket to an individual that |
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the person knows is younger than 18 years of age. |
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SECTION 2. Section 467.002, Government Code, is amended to |
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read as follows: |
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Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is |
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subject to review under Chapter 325 (Texas Sunset Act). Unless |
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continued in existence as provided by that chapter, the commission |
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is abolished [and this chapter, Chapter 466 of this code, and |
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Chapter 2001, Occupations Code, expire] September 1, 2037 [2025]. |
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SECTION 3. Subchapter A, Chapter 467, Government Code, is |
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amended by adding Section 467.003 to read as follows: |
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Sec. 467.003. LIMITED-SCOPE SUNSET REVIEW OF COMMISSION. |
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(a) Separate from the review of the commission required under |
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Section 467.002, the commission is subject to a limited-scope |
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review under Chapter 325 (Texas Sunset Act) of the commission's |
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compliance with the statutory changes enacted by the 89th |
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Legislature and the management actions adopted by the Sunset |
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Advisory Commission as part of its review of state agencies |
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scheduled to be abolished in 2025. The limited-scope review |
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required under this section must be completed before the regular |
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session of the 91st Legislature is convened. |
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(b) This section expires September 1, 2029. |
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SECTION 4. Section 467.0255, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (d) to read as |
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follows: |
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(b) The training program must provide the person with |
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information regarding: |
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(1) the law governing [legislation that created the] |
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commission operations; |
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(2) the programs, functions, rules, and budget of the |
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commission; |
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(3) the scope of and limitations on the rulemaking |
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authority of the commission; |
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(4) the results of the most recent formal audit of the |
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commission; |
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(5) [(4)] the requirements of: |
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(A) laws relating to open meetings, public |
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information, administrative procedure, and disclosing conflicts of |
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interest; and |
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(B) other laws applicable to members of a state |
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policy-making body in performing their duties; and |
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(6) [(5)] any applicable ethics policies adopted by |
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the commission or the Texas Ethics Commission. |
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(d) The executive director shall create a training manual |
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that includes the information required by Subsection (b). The |
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executive director shall distribute a copy of the training manual |
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annually to each member of the commission. Each member of the |
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commission shall sign and submit to the executive director a |
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statement acknowledging the member received and has reviewed the |
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training manual. |
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SECTION 5. Section 467.033, Government Code, is amended to |
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read as follows: |
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Sec. 467.033. DIVISION DIRECTORS. (a) The executive |
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director shall employ a lottery director to oversee the lottery |
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[each] division. The lottery [A division] director serves at the |
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will of the executive director and is specifically exempted from |
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Chapter 654. |
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(b) The commission shall employ a bingo director to oversee |
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the bingo division as described by Section 2001.052, Occupations |
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Code. The bingo director serves at the will of the commission and |
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is specifically exempted from Chapter 654. |
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SECTION 6. Section 467.101, Government Code, is amended by |
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adding Subsections (d), (e), and (f) to read as follows: |
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(d) The commission shall establish subcommittees of the |
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commission to improve opportunities for commission members to |
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engage commission personnel and oversee policy development. The |
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subcommittees at a minimum must include: |
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(1) an audit subcommittee; |
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(2) a legal subcommittee; and |
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(3) a planning subcommittee. |
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(e) The commission by rule shall establish a formal |
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procedure for: |
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(1) resolving questions regarding the commission's |
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statutory and rulemaking authority; and |
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(2) addressing the commission's approach to statutory |
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ambiguity. |
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(f) The procedure established under Subsection (e) must at a |
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minimum provide a process for the commission to: |
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(1) request an opinion from the attorney general; and |
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(2) present questions regarding the commission's |
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statutory and rulemaking authority to the legislature through the |
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report required under Section 467.113. |
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SECTION 7. Subchapter C, Chapter 467, Government Code, is |
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amended by adding Sections 467.112 and 467.113 to read as follows: |
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Sec. 467.112. LOTTERY ADVISORY COMMITTEE. (a) The |
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commission shall establish a lottery advisory committee to provide |
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external expertise on the lottery. The commission shall appoint to |
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the advisory committee members who represent a balance of |
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interests, including representatives of: |
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(1) the public; |
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(2) licensed sales agents; |
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(3) interest groups with divergent viewpoints on the |
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lottery and lottery operations; and |
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(4) entities associated with or benefiting from the |
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lottery's contributions to this state. |
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(b) A lottery advisory committee member serves at the |
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pleasure of the commission. |
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(c) A lottery advisory committee member is not entitled to |
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receive compensation for serving as a member. A member is entitled |
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to reimbursement for reasonable expenses incurred in performing |
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duties as a member. |
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(d) The lottery advisory committee shall: |
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(1) advise the commission on the needs and problems of |
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this state's lottery industry; |
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(2) comment on proposed lottery rules during |
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development and before final adoption unless an emergency requires |
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immediate action by the commission; |
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(3) annually report to the commission on the advisory |
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committee's activities; |
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(4) annually brief the commission on advancements and |
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challenges in this state's lottery industry; and |
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(5) perform other duties as determined by the |
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commission. |
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(e) The commission shall adopt rules to govern the lottery |
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advisory committee, including rules on: |
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(1) member composition, appointment procedures, and |
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terms; |
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(2) quorum requirements for advisory committee |
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meetings; |
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(3) additional representation requirements for and |
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qualifications of advisory committee members, including experience |
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or geographic location; |
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(4) any necessary training requirements for advisory |
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committee members; and |
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(5) the method for the public to provide to the |
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commission comments on issues the advisory committee considers. |
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(f) The lottery advisory committee shall meet quarterly or |
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at the commission's request. |
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(g) The commission may not adopt a rule that restricts the |
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lottery advisory committee from discussing any lottery-related |
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topic. |
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Sec. 467.113. ANNUAL REPORT. (a) The commission annually |
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shall submit a report to the governor and the legislature that: |
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(1) includes a summary of lottery revenue, prize |
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disbursements, and other expenses for the state fiscal year |
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preceding the report; |
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(2) includes a comprehensive business plan to guide |
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the commission's major initiatives that contains: |
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(A) specific goals for the commission; and |
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(B) an evaluation of: |
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(i) the commission's overall performance; |
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(ii) the effectiveness of specific |
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commission programs and initiatives; |
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(iii) the efficiency of commission |
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operations; |
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(iv) the amount of lottery revenue |
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generated for state purposes other than the payment of prizes; and |
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(v) the factors affecting the amount of |
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lottery revenue received and disbursed, including ticket sales and |
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administrative efficiency; |
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(3) addresses the trends and issues related to |
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violations of state laws under the commission's jurisdiction |
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identified in complaints under Section 467.111(e) and identified |
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through an inspection, audit, or other means, including the |
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regulation of lottery operations under Chapter 466 and of bingo |
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under Chapter 2001, Occupations Code; |
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(4) includes for the preceding calendar year |
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charitable bingo information on: |
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(A) the total amount reported by licensed |
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authorized organizations of adjusted gross receipts from bingo |
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operations under Chapter 2001, Occupations Code; |
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(B) the total amount reported by licensed |
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authorized organizations of net proceeds from bingo operations |
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under Chapter 2001, Occupations Code; and |
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(C) a comparison of the amounts reported under |
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Paragraphs (A) and (B), including the percentage the net proceeds |
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represents compared to the adjusted gross receipts; and |
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(5) provides biennial recommendations to the |
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legislature on emerging trends, technological advancements, |
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regulatory developments, and market dynamics affecting the lottery |
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and bingo industries. |
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(b) For purposes of Subsection (a)(4): |
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(1) the term "adjusted gross receipts" means the |
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amount remaining after deducting prizes paid but excluding prize |
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fees collected from bingo players; and |
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(2) the commission shall determine the total amount of |
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net proceeds in a manner that does not reduce gross receipts by the |
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amount of rent paid for the rental of bingo premises by a licensed |
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authorized organization to another licensed authorized |
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organization if the other organization pays rent for the premises |
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to a licensed commercial lessor. |
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SECTION 8. Section 2001.052, Occupations Code, is amended |
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by amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) The director of bingo operations shall administer the |
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bingo division under the direction of the executive director of the |
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commission. |
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(c) At each regular commission meeting, the director of |
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bingo operations shall report to the commission on bingo operations |
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and regulation. |
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SECTION 9. Section 2001.057, Occupations Code, is amended |
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by amending Subsections (a), (e), (f), and (g) and adding |
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Subsection (h) to read as follows: |
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(a) The commission shall [may] appoint a bingo advisory |
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committee consisting of nine members. The commission shall appoint |
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members representing a balance of interests including |
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representatives of: |
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(1) the public; |
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(2) charities that operate bingo games; and |
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(3) commercial and charity lessors that participate in |
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the bingo industry. |
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(e) The bingo advisory committee shall [may]: |
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(1) advise the commission on the needs and problems of |
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the state's bingo industry; |
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(2) comment on rules involving bingo during their |
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development and before final adoption unless an emergency requires |
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immediate action by the commission; |
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(3) report annually to the commission on the |
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committee's activities; [and] |
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(4) annually brief the commission on advancements and |
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challenges in this state's bingo industry; and |
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(5) perform other duties as determined by the |
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commission. |
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(f) The bingo advisory committee shall [may] meet quarterly |
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or at the commission's request. |
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(g) The commission shall [may] adopt rules: |
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(1) to govern the operations of the bingo advisory |
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committee; and |
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(2) to prohibit the committee's involvement in |
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committee member selection. |
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(h) The commission may not adopt a rule that prohibits or |
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restricts the bingo advisory committee from discussing any |
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bingo-related topic. This subsection may not be construed to |
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require action by the commission on each item submitted by the |
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committee or otherwise alter the commission's decision-making |
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authority. |
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SECTION 10. Section 2001.059(b), Occupations Code, is |
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amended to read as follows: |
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(b) The commission shall respond to a request under |
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Subsection (a) not later than the later of the second commission |
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meeting or the 60th day after the date a request is received, unless |
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the commission determines that the request does not contain |
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sufficient facts to provide an answer on which the requestor may |
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rely. In that event, the commission shall request additional |
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information from the requestor not later than the 10th day after the |
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date the request is received. If the commission requests |
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additional information, the commission shall respond to the request |
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not later than the later of the second commission meeting or the |
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60th day after the date additional information is received pursuant |
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to the request for additional information. |
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SECTION 11. Section 2001.152, Occupations Code, is amended |
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by amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) Notwithstanding Subsection (a) and subject to |
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Subsection (c), a person who was a licensed commercial lessor on |
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June 10, 1989, whose license has been in effect continuously since |
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that date, and who is otherwise eligible for the license may renew |
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the license. |
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(c) The commission may place an administrative hold on the |
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license of a licensed commercial lessor described by Subsection (b) |
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for a period the commission determines not to exceed 10 years. If |
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the administrative hold on the license remains on the last day of |
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that period: |
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(1) the commission shall remove the administrative |
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hold; and |
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(2) the lessor is not eligible to renew the license as |
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a continuous license holder under Subsection (b). |
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SECTION 12. Section 2001.557, Occupations Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) In developing and implementing a policy or procedure |
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under Subsection (b), the commission shall consult with the bingo |
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advisory committee established under Section 2001.057 to |
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collaboratively define and implement specific fiscal |
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accountability criteria for inspections of premises. |
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SECTION 13. Section 2001.560(c-1), Occupations Code, is |
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amended to read as follows: |
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(c-1) The commission by rule shall develop a policy for |
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auditing license holders. The bingo division shall use audit risk |
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analysis procedures established by the commission to: |
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(1) annually identify the [which] license holders |
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[are] most at risk of violating this chapter or rules adopted under |
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this chapter, including consideration of license holder compliance |
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history in the identification; and |
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(2) develop a plan for auditing the identified license |
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holders that includes: |
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(A) a schedule for the audits of the identified |
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license holders; |
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(B) procedures to annually update the plan based |
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on successive risk analyses; and |
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(C) a completion date for each audit that is not |
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later than the fifth anniversary of the date the license holder was |
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identified as a candidate for audit. |
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SECTION 14. The following provisions are repealed: |
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(1) Section 466.016, Government Code; |
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(2) Section 466.028, Government Code; |
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(3) Section 467.111(f), Government Code; |
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(4) Section 2001.059(f), Occupations Code; and |
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(5) Section 2001.060, Occupations Code. |
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SECTION 15. (a) Except as provided by Subsection (b) of |
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this section, Section 467.0255, Government Code, as amended by this |
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Act, applies to a member of the Texas Lottery Commission appointed |
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before, on, or after the effective date of this Act. |
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(b) A member of the Texas Lottery Commission who, before the |
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effective date of this Act, completed the training program required |
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by Section 467.0255, Government Code, as that law existed before |
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the effective date of this Act, is only required to complete |
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additional training on the subjects added by this Act to the |
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training program required by Section 467.0255, Government Code. A |
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member described by this subsection may not vote, deliberate, or be |
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counted as a member in attendance at a meeting of the Texas Lottery |
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Commission held on or after December 1, 2025, until the member |
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completes the additional training. |
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SECTION 16. (a) The change in law made by this Act applies |
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only to an offense committed on or after the effective date of this |
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Act. An offense committed before the effective date of this Act is |
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governed by the law in effect on the date the offense was committed, |
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and the former law is continued in effect for that purpose. For |
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purposes of this section, an offense was committed before the |
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effective date of this Act if any element of the offense occurred |
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before that date. |
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(b) Section 2001.152, Occupations Code, as amended by this |
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Act, applies to a license placed on an administrative hold on or |
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after the effective date of this Act. |
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SECTION 17. As soon as practicable after the effective date |
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of this Act, the Texas Lottery Commission shall: |
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(1) establish audit, legal, and planning |
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subcommittees as required by Section 467.101(d), Government Code, |
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as added by this Act; |
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(2) appoint members to the lottery advisory committee |
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and adopt rules to govern the operations of the committee as |
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required by Section 467.112, Government Code, as added by this Act; |
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and |
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(3) adopt rules necessary to implement this Act. |
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SECTION 18. This Act takes effect September 1, 2025. |