Hull Bill Keeps The Lottery Commission Alive Until 2037

The text as introduced · 2,527 words

89R5125 PRL-D

By: Hull
H.B. No. 1505

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas Lottery

Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 466.3051(a), Government Code, is amended

to read as follows:

(a) A sales agent or an employee of a sales agent commits an

offense if with criminal negligence the person [ intentionally or

knowingly ] sells or offers to sell a ticket to an individual that

the person knows is younger than 18 years of age.

SECTION 2. Section 467.002, Government Code, is amended to

read as follows:

Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is

subject to review under Chapter 325 (Texas Sunset Act). Unless

continued in existence as provided by that chapter, the commission

is abolished [ and this chapter, Chapter 466 of this code, and

Chapter 2001, Occupations Code, expire ] September 1, 2037 [ 2025 ].

SECTION 3. Subchapter A, Chapter 467, Government Code, is

amended by adding Section 467.003 to read as follows:

Sec. 467.003. LIMITED-SCOPE SUNSET REVIEW OF COMMISSION.

(a) Separate from the review of the commission required under

Section 467.002, the commission is subject to a limited-scope

review under Chapter 325 (Texas Sunset Act) of the commission's

compliance with the statutory changes enacted by the 89th

Legislature and the management actions adopted by the Sunset

Advisory Commission as part of its review of state agencies

scheduled to be abolished in 2025. The limited-scope review

required under this section must be completed before the regular

session of the 91st Legislature is convened.

(b) This section expires September 1, 2029.

SECTION 4. Section 467.0255, Government Code, is amended by

amending Subsection (b) and adding Subsection (d) to read as

follows:

(b) The training program must provide the person with

information regarding:

(1) the law governing [ legislation that created the ]

commission operations ;

(2) the programs, functions, rules, and budget of the

commission;

(3) the scope of and limitations on the rulemaking

authority of the commission;

(4) the results of the most recent formal audit of the

commission;

(5) [ (4) ] the requirements of :

(A) laws relating to open meetings, public

information, administrative procedure, and disclosing conflicts of

interest; and

(B) other laws applicable to members of a state

policy-making body in performing their duties; and

(6) [ (5) ] any applicable ethics policies adopted by

the commission or the Texas Ethics Commission.

(d) The executive director shall create a training manual

that includes the information required by Subsection (b). The

executive director shall distribute a copy of the training manual

annually to each member of the commission. Each member of the

commission shall sign and submit to the executive director a

statement acknowledging the member received and has reviewed the

training manual.

SECTION 5. Section 467.033, Government Code, is amended to

read as follows:

Sec. 467.033. DIVISION DIRECTORS. (a) The executive

director shall employ a lottery director to oversee the lottery

[ each ] division. The lottery [ A division ] director serves at the

will of the executive director and is specifically exempted from

Chapter 654.

(b) The commission shall employ a bingo director to oversee

the bingo division as described by Section 2001.052, Occupations

Code. The bingo director serves at the will of the commission and

is specifically exempted from Chapter 654.

SECTION 6. Section 467.101, Government Code, is amended by

adding Subsections (d), (e), and (f) to read as follows:

(d) The commission shall establish subcommittees of the

commission to improve opportunities for commission members to

engage commission personnel and oversee policy development. The

subcommittees at a minimum must include:

(1) an audit subcommittee;

(2) a legal subcommittee; and

(3) a planning subcommittee.

(e) The commission by rule shall establish a formal

procedure for:

(1) resolving questions regarding the commission's

statutory and rulemaking authority; and

(2) addressing the commission's approach to statutory

ambiguity.

(f) The procedure established under Subsection (e) must at a

minimum provide a process for the commission to:

(1) request an opinion from the attorney general; and

(2) present questions regarding the commission's

statutory and rulemaking authority to the legislature through the

report required under Section 467.113.

SECTION 7. Subchapter C, Chapter 467, Government Code, is

amended by adding Sections 467.112 and 467.113 to read as follows:

Sec. 467.112. LOTTERY ADVISORY COMMITTEE. (a) The

commission shall establish a lottery advisory committee to provide

external expertise on the lottery. The commission shall appoint to

the advisory committee members who represent a balance of

interests, including representatives of:

(1) the public;

(2) licensed sales agents;

(3) interest groups with divergent viewpoints on the

lottery and lottery operations; and

(4) entities associated with or benefiting from the

lottery's contributions to this state.

(b) A lottery advisory committee member serves at the

pleasure of the commission.

(c) A lottery advisory committee member is not entitled to

receive compensation for serving as a member. A member is entitled

to reimbursement for reasonable expenses incurred in performing

duties as a member.

(d) The lottery advisory committee shall:

(1) advise the commission on the needs and problems of

this state's lottery industry;

(2) comment on proposed lottery rules during

development and before final adoption unless an emergency requires

immediate action by the commission;

(3) annually report to the commission on the advisory

committee's activities;

(4) annually brief the commission on advancements and

challenges in this state's lottery industry; and

(5) perform other duties as determined by the

commission.

(e) The commission shall adopt rules to govern the lottery

advisory committee, including rules on:

(1) member composition, appointment procedures, and

terms;

(2) quorum requirements for advisory committee

meetings;

(3) additional representation requirements for and

qualifications of advisory committee members, including experience

or geographic location;

(4) any necessary training requirements for advisory

committee members; and

(5) the method for the public to provide to the

commission comments on issues the advisory committee considers.

(f) The lottery advisory committee shall meet quarterly or

at the commission's request.

(g) The commission may not adopt a rule that restricts the

lottery advisory committee from discussing any lottery-related

topic.

Sec. 467.113. ANNUAL REPORT. (a) The commission annually

shall submit a report to the governor and the legislature that:

(1) includes a summary of lottery revenue, prize

disbursements, and other expenses for the state fiscal year

preceding the report;

(2) includes a comprehensive business plan to guide

the commission's major initiatives that contains:

(A) specific goals for the commission; and

(B) an evaluation of:

(i) the commission's overall performance;

(ii) the effectiveness of specific

commission programs and initiatives;

(iii) the efficiency of commission

operations;

(iv) the amount of lottery revenue

generated for state purposes other than the payment of prizes; and

(v) the factors affecting the amount of

lottery revenue received and disbursed, including ticket sales and

administrative efficiency;

(3) addresses the trends and issues related to

violations of state laws under the commission's jurisdiction

identified in complaints under Section 467.111(e) and identified

through an inspection, audit, or other means, including the

regulation of lottery operations under Chapter 466 and of bingo

under Chapter 2001, Occupations Code;

(4) includes for the preceding calendar year

charitable bingo information on:

(A) the total amount reported by licensed

authorized organizations of adjusted gross receipts from bingo

operations under Chapter 2001, Occupations Code;

(B) the total amount reported by licensed

authorized organizations of net proceeds from bingo operations

under Chapter 2001, Occupations Code; and

(C) a comparison of the amounts reported under

Paragraphs (A) and (B), including the percentage the net proceeds

represents compared to the adjusted gross receipts; and

(5) provides biennial recommendations to the

legislature on emerging trends, technological advancements,

regulatory developments, and market dynamics affecting the lottery

and bingo industries.

(b) For purposes of Subsection (a)(4):

(1) the term "adjusted gross receipts" means the

amount remaining after deducting prizes paid but excluding prize

fees collected from bingo players; and

(2) the commission shall determine the total amount of

net proceeds in a manner that does not reduce gross receipts by the

amount of rent paid for the rental of bingo premises by a licensed

authorized organization to another licensed authorized

organization if the other organization pays rent for the premises

to a licensed commercial lessor.

SECTION 8. Section 2001.052, Occupations Code, is amended

by amending Subsection (b) and adding Subsection (c) to read as

follows:

(b) The director of bingo operations shall administer the

bingo division under the direction of the executive director of the

commission.

(c) At each regular commission meeting, the director of

bingo operations shall report to the commission on bingo operations

and regulation.

SECTION 9. Section 2001.057, Occupations Code, is amended

by amending Subsections (a), (e), (f), and (g) and adding

Subsection (h) to read as follows:

(a) The commission shall [ may ] appoint a bingo advisory

committee consisting of nine members. The commission shall appoint

members representing a balance of interests including

representatives of:

(1) the public;

(2) charities that operate bingo games; and

(3) commercial and charity lessors that participate in

the bingo industry.

(e) The bingo advisory committee shall [ may ]:

(1) advise the commission on the needs and problems of

the state's bingo industry;

(2) comment on rules involving bingo during their

development and before final adoption unless an emergency requires

immediate action by the commission;

(3) report annually to the commission on the

committee's activities; [ and ]

(4) annually brief the commission on advancements and

challenges in this state's bingo industry; and

(5) perform other duties as determined by the

commission.

(f) The bingo advisory committee shall [ may ] meet quarterly

or at the commission's request.

(g) The commission shall [ may ] adopt rules :

(1) to govern the operations of the bingo advisory

committee ; and

(2) to prohibit the committee's involvement in

committee member selection .

(h) The commission may not adopt a rule that prohibits or

restricts the bingo advisory committee from discussing any

bingo-related topic. This subsection may not be construed to

require action by the commission on each item submitted by the

committee or otherwise alter the commission's decision-making

authority.

SECTION 10. Section 2001.059(b), Occupations Code, is

amended to read as follows:

(b) The commission shall respond to a request under

Subsection (a) not later than the later of the second commission

meeting or the 60th day after the date a request is received, unless

the commission determines that the request does not contain

sufficient facts to provide an answer on which the requestor may

rely. In that event, the commission shall request additional

information from the requestor not later than the 10th day after the

date the request is received. If the commission requests

additional information, the commission shall respond to the request

not later than the later of the second commission meeting or the

60th day after the date additional information is received pursuant

to the request for additional information.

SECTION 11. Section 2001.152, Occupations Code, is amended

by amending Subsection (b) and adding Subsection (c) to read as

follows:

(b) Notwithstanding Subsection (a) and subject to

Subsection (c) , a person who was a licensed commercial lessor on

June 10, 1989, whose license has been in effect continuously since

that date, and who is otherwise eligible for the license may renew

the license.

(c) The commission may place an administrative hold on the

license of a licensed commercial lessor described by Subsection (b)

for a period the commission determines not to exceed 10 years. If

the administrative hold on the license remains on the last day of

that period:

(1) the commission shall remove the administrative

hold; and

(2) the lessor is not eligible to renew the license as

a continuous license holder under Subsection (b).

SECTION 12. Section 2001.557, Occupations Code, is amended

by adding Subsection (c) to read as follows:

(c) In developing and implementing a policy or procedure

under Subsection (b), the commission shall consult with the bingo

advisory committee established under Section 2001.057 to

collaboratively define and implement specific fiscal

accountability criteria for inspections of premises.

SECTION 13. Section 2001.560(c-1), Occupations Code, is

amended to read as follows:

(c-1) The commission by rule shall develop a policy for

auditing license holders. The bingo division shall use audit risk

analysis procedures established by the commission to:

(1) annually identify the [ which ] license holders

[ are ] most at risk of violating this chapter or rules adopted under

this chapter , including consideration of license holder compliance

history in the identification ; and

(2) develop a plan for auditing the identified license

holders that includes:

(A) a schedule for the audits of the identified

license holders;

(B) procedures to annually update the plan based

on successive risk analyses; and

(C) a completion date for each audit that is not

later than the fifth anniversary of the date the license holder was

identified as a candidate for audit.

SECTION 14. The following provisions are repealed:

(1) Section 466.016, Government Code;

(2) Section 466.028, Government Code;

(3) Section 467.111(f), Government Code;

(4) Section 2001.059(f), Occupations Code; and

(5) Section 2001.060, Occupations Code.

SECTION 15. (a) Except as provided by Subsection (b) of

this section, Section 467.0255, Government Code, as amended by this

Act, applies to a member of the Texas Lottery Commission appointed

before, on, or after the effective date of this Act.

(b) A member of the Texas Lottery Commission who, before the

effective date of this Act, completed the training program required

by Section 467.0255, Government Code, as that law existed before

the effective date of this Act, is only required to complete

additional training on the subjects added by this Act to the

training program required by Section 467.0255, Government Code. A

member described by this subsection may not vote, deliberate, or be

counted as a member in attendance at a meeting of the Texas Lottery

Commission held on or after December 1, 2025, until the member

completes the additional training.

SECTION 16. (a) The change in law made by this Act applies

only to an offense committed on or after the effective date of this

Act. An offense committed before the effective date of this Act is

governed by the law in effect on the date the offense was committed,

and the former law is continued in effect for that purpose. For

purposes of this section, an offense was committed before the

effective date of this Act if any element of the offense occurred

before that date.

(b) Section 2001.152, Occupations Code, as amended by this

Act, applies to a license placed on an administrative hold on or

after the effective date of this Act.

SECTION 17. As soon as practicable after the effective date

of this Act, the Texas Lottery Commission shall:

(1) establish audit, legal, and planning

subcommittees as required by Section 467.101(d), Government Code,

as added by this Act;

(2) appoint members to the lottery advisory committee

and adopt rules to govern the operations of the committee as

required by Section 467.112, Government Code, as added by this Act;

and

(3) adopt rules necessary to implement this Act.

SECTION 18. This Act takes effect September 1, 2025.