Hall Bill Puts The Lottery Itself On A 2027 Sunset

The text as introduced · 13,378 words

89R29514 PRL-D

By: Hall
S.B. No. 3070

A BILL TO BE ENTITLED

AN ACT

relating to the abolishment of the Texas Lottery Commission and the

transfer of the administration of the state lottery and the

licensing and regulation of charitable bingo to the Texas

Commission of Licensing and Regulation; creating a criminal

offense.

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

SECTION 1. Section 411.093(a), Government Code, is amended

to read as follows:

(a) The Texas Department of Licensing and Regulation is

entitled to obtain criminal history record information as provided

by Subsection (b) that relates to:

(1) an applicant for or the holder of:

(A) a driver education instructor license under

Chapter 1001, Education Code;

(B) a license under Chapter 466;

(C) a license under Chapter 202, Occupations

Code;

(D) [ (C) ] a license under Chapter 401,

Occupations Code;

(E) [ (D) ] a license under Chapter 402,

Occupations Code; [ or ]

(F) a license under Chapter 2001, Occupations

Code; or

(G) [ (E) ] an instructor license or motorcycle

school license under Chapter 662, Transportation Code;

(2) a person who is:

(A) an applicant for or the holder of a license

under Chapter 91, Labor Code; or

(B) a controlling person, as defined by Chapter

91, Labor Code, of an entity described by Paragraph (A); or

(3) a person who:

(A) is an applicant for or the holder of a license

under Chapter 455, Occupations Code; or

(B) has an interest described under Section

455.1525(e), Occupations Code, in an entity described by Paragraph

(A).

SECTION 2. Section 411.467(d), Government Code, is amended

to read as follows:

(d) The department shall also send the alert to:

(1) any appropriate law enforcement agency;

(2) the Texas Department of Transportation;

(3) the Texas Department of Licensing and Regulation

[ Lottery Commission ]; and

(4) the Independent Bankers Association of Texas.

SECTION 3. Sections 466.002(1), (3), and (4), Government

Code, are amended to read as follows:

(1) "Commission" means the Texas [ Lottery ] Commission

of Licensing and Regulation .

(3) "Department" or " division [ Division ]" means the

Texas Department of Licensing and Regulation [ lottery division

established by the commission under Chapter 467 ].

(4) "Director" or " executive [ Executive ] director"

means the executive director of the department [ commission ].

SECTION 4. Subchapter A, Chapter 466, Government Code, is

amended by adding Section 466.005 to read as follows:

Sec. 466.005. LIMITED-SCOPE SUNSET REVIEW OF STATE LOTTERY.

The Sunset Advisory Commission shall conduct a limited-scope review

of the state lottery during the state fiscal biennium ending August

31, 2027, in the manner provided by Chapter 325 (Texas Sunset Act).

The review must provide an evaluation and recommendations regarding

the continuation of the state lottery. Unless continued in

existence, the state lottery is abolished and this chapter expires

September 1, 2027.

SECTION 5. The heading to Section 466.014, Government Code,

is amended to read as follows:

Sec. 466.014. POWERS AND DUTIES OF DEPARTMENT [ COMMISSION ]

AND EXECUTIVE DIRECTOR.

SECTION 6. Sections 466.014(a) and (d), Government Code,

are amended to read as follows:

(a) The department [ commission ] and executive director have

broad authority and shall exercise strict control and close

supervision over all lottery games conducted in this state to

promote and ensure integrity, security, honesty, and fairness in

the operation and administration of the lottery.

(d) A contract between the department [ division ] and a

lottery operator under Subsection (b) must contain a provision

allowing the contract to be terminated without penalty if the

department [ division ] is abolished.

SECTION 7. Section 466.015(b), Government Code, is amended

to read as follows:

(b) The commission shall adopt rules to the extent they are

not inconsistent with Chapters 551 and 552 governing the:

(1) security for the lottery and the commission,

including the development of an internal security plan;

(2) apportionment of the total revenues from the sale

of tickets and from all other sources in the amounts provided by

this chapter;

(3) enforcement of prohibitions on the sale of tickets

to or by an individual younger than 18 years of age; and

(4) enforcement of prohibitions on a person playing or

facilitating the play of a lottery game by telephone or through an

Internet application or mobile Internet application in violation of

Section 466.318 .

SECTION 8. Section 466.018, Government Code, is amended to

read as follows:

Sec. 466.018. INVESTIGATIONS. The attorney general, the

district attorney for Travis County, or the district attorney,

criminal district attorney, or county attorney performing the

duties of district attorney for the county in which the violation or

alleged violation occurred may investigate a violation or alleged

violation of this chapter and of the penal laws of this state by the

department [ commission ] or its employees, a sales agent, a lottery

vendor, or a lottery operator.

SECTION 9. Section 466.019, Government Code, is amended to

read as follows:

Sec. 466.019. ENFORCEMENT. (a) The executive director or

designated personnel of the department [ commission ] may

investigate violations of this chapter and violations of the rules

adopted under this chapter. After conducting investigations, the

executive director, a person designated by the department

[ commission ], or any law enforcement agency may file a complaint

with the district attorney of Travis County or with the district

attorney of the county in which a violation is alleged to have

occurred.

(b) The executive director has the administrative,

enforcement, and collection powers provided by Subtitle B, Title 2,

Tax Code, in regard to the lottery. For purposes of the application

of Title 2 of the Tax Code:

(1) the state's share of proceeds from the sale of

lottery tickets is treated as if it were a tax; and

(2) a power granted to the comptroller may be

exercised by the department [ commission ].

SECTION 10. Sections 466.020(a) and (d), Government Code,

are amended to read as follows:

(a) The executive director shall maintain a department of

security within the financial crimes intelligence center

established under Chapter 2312, Occupations Code [ in the

commission ]. The executive director shall appoint a deputy to

administer the department of security . The deputy must be

qualified by training and experience in law enforcement or security

to supervise, direct, and administer the activities of the

department of security .

(d) The Department of Public Safety, at the department's

[ commission's ] request, shall perform a full criminal background

investigation of a prospective deputy or investigator of the

department of security. The department [ commission ] shall

reimburse the Department of Public Safety for the actual costs of an

investigation.

SECTION 11. Section 466.022, Government Code, is amended to

read as follows:

Sec. 466.022. CONFIDENTIAL INFORMATION. (a) Except as

otherwise provided by law, all department [ commission ] records are

subject to public inspection in accordance with Chapter 552.

(b) In addition to department [ commission ] records excepted

from disclosure under Chapter 552, the following information is

confidential and is exempt from disclosure:

(1) security plans and procedures of the department

[ commission ] designed to ensure the integrity and security of the

operation of the lottery;

(2) information of a nature that is designed to ensure

the integrity and security of the selection of winning tickets or

numbers in the lottery, other than information describing the

general procedures for selecting winning tickets or numbers;

(3) the street address and telephone number of a prize

winner, if the prize winner has not consented to the release of the

information; and

(4) except as otherwise authorized by Section 466.411,

all personally identifiable information of a natural person who is:

(A) a lottery prize winner and who has chosen to

remain anonymous under Section 466.411; or

(B) an owner of a beneficial interest in a legal

entity that is a lottery prize winner and who has chosen to remain

anonymous under Section 466.411.

SECTION 12. Section 466.023(b), Government Code, is amended

to read as follows:

(b) An investigation report or other document submitted by

the Department of Public Safety to the department [ commission ]

becomes part of the investigative files of the department

[ commission ] and is subject to discovery by a person that is the

subject of the investigation report or other document.

SECTION 13. Section 466.026, Government Code, is amended to

read as follows:

Sec. 466.026. AMBER ALERT. On receipt of notice by the

Department of Public Safety that the Statewide Texas Amber Alert

Network has been activated, the department [ commission ] shall

disseminate Amber Alert information at its retail locations through

the lottery operator system.

SECTION 14. Sections 466.027(a), (b), (c), and (d),

Government Code, are amended to read as follows:

(a) The department [ commission ] shall operate an

instant-ticket lottery game to benefit the fund for veterans'

assistance established by Section 434.017.

(b) The department [ commission ] shall:

(1) determine the ticket price, payout amounts, and

manner in which the game is conducted;

(2) make tickets to the game available for sale

continuously to the extent practicable; and

(3) change the design or theme of the game regularly to

ensure that the game remains competitive with other instant-ticket

lottery games offered by the department [ commission ].

(c) The department [ commission ] shall market and advertise

the lottery game operated under this section in a manner intended to

inform the public that the game tickets are available for purchase

and that the game proceeds are used to fund veterans programs in

this state. The game tickets must clearly state that the game

proceeds are used to benefit the veterans in this state. The Texas

Veterans Commission may make recommendations to the department

[ Texas Lottery Commission ] relating to the marketing and

advertising of the game.

(d) The department [ commission ] shall encourage each sales

agent that sells tickets to instant-ticket games or similar types

of lottery games to sell tickets to the game operated under this

section.

SECTION 15. Section 466.105(b), Government Code, is amended

to read as follows:

(b) Notwithstanding the provisions of Title 2, Utilities

Code, the department [ commission ] may negotiate rates and execute

contracts with telecommunications service providers for the

interexchange services necessary for the operation of the

lottery. The department [ commission ] may acquire transmission

facilities by lease, purchase, or lease-purchase. The acquisition

of transmission facilities must be done on a competitive bid basis

if possible.

SECTION 16. Section 466.106(a), Government Code, is amended

to read as follows:

(a) In all contracts for lottery equipment, supplies,

services, and advertising, the department [ commission ] and each

lottery operator shall give preference to equipment or supplies

produced in this state or services or advertising offered by

bidders from this state, the cost to the state and quality being

equal.

SECTION 17. Sections 466.107(a) and (c), Government Code,

are amended to read as follows:

(a) The executive director and each lottery operator shall

take positive steps to:

(1) inform minority businesses of opportunities to:

(A) provide lottery equipment and supplies to the

department [ commission ];

(B) provide services, including advertising, to

the department [ commission ] for the operation of the lottery; or

(C) obtain a license to sell lottery tickets;

(2) waive or modify bond requirements, if feasible;

(3) award contracts for lottery equipment or supplies

to minority businesses when possible;

(4) award contracts for lottery services, including

advertising, to minority businesses when possible;

(5) license minority businesses as sales agents;

(6) monitor the effectiveness of the efforts to

increase the ability of minority businesses to do business with the

department [ commission ]; and

(7) require all bidders or contractors, when

appropriate, to include specific plans or arrangements to use

subcontracts with minority businesses.

(c) The department [ commission ] shall annually report to

the legislature and the governor on the level of minority business

participation as pertains to both the department's [ commission's ]

contracts and the licensing of sales agents. The report must

include recommendations for the improvement of minority business

opportunities in lottery-related business.

SECTION 18. Section 466.108, Government Code, is amended to

read as follows:

Sec. 466.108. TELEVISION CONTRACTS. If the drawing or

selection of winning tickets is televised under a contract with the

department [ commission ], the contract must be awarded by

competitive bid. The department [ commission ] shall adopt rules

governing the competitive bidding process. Money received under

the contract shall be deposited in the state lottery account

established under Section 466.355.

SECTION 19. Section 466.109, Government Code, is amended to

read as follows:

Sec. 466.109. PUBLICITY OF INDIVIDUALS PROHIBITED. (a) A

state officer, including a commission member or the executive

director, or an officer or employee of the department [ commission ],

may not appear in an advertisement or promotion for the lottery that

is sponsored by the department [ commission ] or in a televised

lottery drawing. An advertisement or promotion for the lottery may

not contain the likeness or name of a state officer, including a

commission member or the executive director, or an officer or

employee of the department [ commission ].

(b) In connection with providing security for the lottery,

this section does not prohibit a security officer or investigator

employed by the department [ commission ] from appearing in a

televised lottery drawing or other promotion for the lottery that

is sponsored by the department [ commission ].

(c) Notwithstanding this section, the executive director

may designate an employee of the department [ commission ] to

participate in a promotional event.

SECTION 20. Section 466.110, Government Code, is amended to

read as follows:

Sec. 466.110. PROHIBITED ADVERTISEMENTS. The legislature

intends that advertisements or promotions sponsored by the

department [ commission or the division ] for the lottery not be of a

nature that unduly influences any person to purchase a lottery

ticket or number.

SECTION 21. Section 466.151(a), Government Code, is amended

to read as follows:

(a) If the executive director authorizes a person who is not

an employee of the department [ commission ] to sell tickets, the

person must be licensed as a sales agent by the department

[ commission ].

SECTION 22. Sections 466.155(a), (b), (e), and (f),

Government Code, are amended to read as follows:

(a) After a hearing, the executive director shall deny an

application for a license or the department [ commission ] shall

suspend or revoke a license if the executive director or department

[ commission ], as applicable, finds that the applicant or sales

agent:

(1) is an individual who:

(A) has been convicted of a felony, criminal

fraud, gambling or a gambling-related offense, or a misdemeanor

involving moral turpitude, if less than 10 years has elapsed since

the termination of the sentence, parole, mandatory supervision, or

probation served for the offense;

(B) is or has been a professional gambler;

(C) is married to an individual:

(i) described in Paragraph (A) or (B); or

(ii) who is currently delinquent in the

payment of any state tax;

(D) is an officer or employee of the department

[ commission ] or a lottery operator; or

(E) is a spouse, child, brother, sister, or

parent residing as a member of the same household in the principal

place of residence of a person described by Paragraph (D);

(2) is not an individual, and an individual described

in Subdivision (1):

(A) is an officer or director of the applicant or

sales agent;

(B) holds more than 10 percent of the stock in the

applicant or sales agent;

(C) holds an equitable interest greater than 10

percent in the applicant or sales agent;

(D) is a creditor of the applicant or sales agent

who holds more than 10 percent of the applicant's or sales agent's

outstanding debt;

(E) is the owner or lessee of a business that the

applicant or sales agent conducts or through which the applicant

will conduct a ticket sales agency;

(F) shares or will share in the profits, other

than stock dividends, of the applicant or sales agent; or

(G) participates in managing the affairs of the

applicant or sales agent;

(3) has been finally determined to be delinquent in

the payment of a tax or other money collected by the comptroller,

the Texas Workforce Commission, or the Texas Alcoholic Beverage

Commission;

(4) is a person whose location for the sales agency is:

(A) a location licensed for games of bingo under

Chapter 2001, Occupations Code;

(B) on land that is owned by:

(i) this state; or

(ii) a political subdivision of this state

and on which is located a public primary or secondary school, an

institution of higher education, or an agency of the state; or

(C) a location for which a person holds a wine and

malt beverage retailer's permit, mixed beverage permit, mixed

beverage permit with a retailer late hours certificate, private

club registration permit, or private club registration permit with

a retailer late hours certificate issued under Chapter 25, 28, 29,

or 32, Alcoholic Beverage Code, other than a location for which a

person holds a wine and malt beverage retailer's permit issued

under Chapter 25, Alcoholic Beverage Code, that derives less than

30 percent of the location's gross receipts from the sale or service

of alcoholic beverages; or

(5) has violated this chapter or a rule adopted under

this chapter.

(b) If the executive director proposes to deny an

application for a license or the department [ commission ] proposes

to suspend or revoke a license under this section, the applicant or

sales agent is entitled to written notice of the time and place of

the hearing. A notice may be served on an applicant or sales agent

personally or sent by certified or registered mail, return receipt

requested, to the person's mailing address as it appears on the

department's [ commission's ] records. A notice must be served or

mailed not later than the 20th day before the date of the hearing.

The department [ commission ] shall provide for a formal

administrative hearings process.

(e) The executive director may not issue a license to a

person who has previously had a license under this chapter revoked

unless the executive director is satisfied the person will comply

with this chapter and the rules adopted under this chapter. The

executive director may prescribe the terms under which a suspended

license will be reissued.

(f) The executive director may not issue a license to an

applicant who fails to certify to the executive director the

applicant's compliance with the federal Americans with

Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).

SECTION 23. Sections 466.160(a), (b), and (d), Government

Code, are amended to read as follows:

(a) The department [ commission ] may suspend a sales agent's

license summarily without notice or hearing if the department

[ commission ] finds that the action is necessary to maintain the

integrity, security, honesty, or fairness of the operation or

administration of the lottery or to prevent financial loss to the

state and:

(1) the sales agent fails to deposit money received

from ticket sales under Section 466.351;

(2) an event occurs that would render the sales agent

ineligible for a license under Section 466.155;

(3) the sales agent refuses to permit the executive

director, the department [ director, the commission ], or the state

auditor to examine the agent's books, records, papers, or other

objects under Section 466.017(b); or

(4) the executive director learns the sales agent has

failed to disclose information that would, if disclosed, render the

sales agent ineligible for a license under Section 466.155.

(b) The department [ commission ] may summarily suspend a

sales agent's license if proceedings for a preliminary hearing

before the State Office of Administrative Hearings are initiated

simultaneously with the summary suspension. The preliminary

hearing shall be set for a date not later than 10 days after the date

of the summary suspension, unless the parties agree to a later date.

(d) To initiate a proceeding to summarily suspend a sales

agent's license, the department [ commission ] must serve notice to

the sales agent informing the agent of the right to a preliminary

hearing and of the time and place of the preliminary hearing. The

notice must be personally served on the sales agent or an officer,

employee, or agent of the sales agent or sent by certified or

registered mail, return receipt requested, to the sales agent's

mailing address as it appears on the department's [ commission's ]

records. The notice must state the alleged violations that

constitute grounds for summary suspension. The suspension is

effective at the time the notice is served. If notice is served in

person, the sales agent shall immediately surrender the license to

the department [ commission ]. If notice is served by mail, the sales

agent shall immediately return the license to the department

[ commission ]. If the sales agent uses an on-line electronic

terminal to sell tickets, the executive director or a lottery

operator on the instructions of the executive director may

terminate the connection of the terminal to the department's

[ commission's ] lottery computer at the time:

(1) the proceeding to summarily suspend the license is

initiated; or

(2) the department [ division ] discovers the sales

agent has failed to deposit money received from ticket sales, if the

sales agent's license is being summarily suspended under Subsection

(a)(1).

SECTION 24. Sections 466.161(b) and (c), Government Code,

are amended to read as follows:

(b) This section does not waive any immunity of the

department [ commission ] or this state.

(c) This section does not create a cause of action against

this state, the department [ commission ], a department [ commission ]

employee, or a sales agent.

SECTION 25. Section 466.201, Government Code, is amended to

read as follows:

Sec. 466.201. ACCESS TO CRIMINAL HISTORY RECORD

INFORMATION. (a) The department [ commission ] is entitled to

conduct an investigation of and is entitled to obtain criminal

history record information maintained by the Department of Public

Safety, the Federal Bureau of Investigation Identification

Division, or another law enforcement agency to assist in the

investigation of:

(1) a sales agent or an applicant for a sales agent

license;

(2) a person required to be named in a license

application;

(3) a lottery operator or prospective lottery

operator;

(4) an employee of a lottery operator or prospective

lottery operator, if the employee is or will be directly involved in

lottery operations;

(5) a person who manufactures or distributes lottery

equipment or supplies, or a representative of a person who

manufactures or distributes lottery equipment or supplies offered

to the lottery;

(6) a person who has submitted a written bid or

proposal to the department [ commission ] in connection with the

procurement of goods or services by the department [ commission ], if

the amount of the bid or proposal exceeds $500;

(7) an employee or other person who works for or will

work for a sales agent or an applicant for a sales agent license;

(8) a person who proposes to enter into or who has a

contract with the department [ commission ] to supply goods or

services to the department [ commission ]; or

(9) if a person described in Subdivisions (1) through

(8) is not an individual, an individual who:

(A) is an officer or director of the person;

(B) holds more than 10 percent of the stock in the

person;

(C) holds an equitable interest greater than 10

percent in the person;

(D) is a creditor of the person who holds more

than 10 percent of the person's outstanding debt;

(E) is the owner or lessee of a business that the

person conducts or through which the person will conduct

lottery-related activities;

(F) shares or will share in the profits, other

than stock dividends, of the person;

(G) participates in managing the affairs of the

person; or

(H) is an employee of the person who is or will be

involved in:

(i) selling tickets; or

(ii) handling money from the sale of

tickets.

(b) The department [ commission ] shall conduct an

investigation of and obtain criminal history record information

maintained by the Department of Public Safety, the Federal Bureau

of Investigation Identification Division, or another law

enforcement agency to assist in the investigation of:

(1) the executive director or a prospective executive

director; or

(2) an employee or prospective employee of the

department [ commission ].

(c) Not later than the first anniversary after the date of

each renewal, the department [ commission ] shall obtain criminal

history record information maintained by the Department of Public

Safety on a sales agent whose license is renewed under Section

466.158.

SECTION 26. Section 466.202, Government Code, is amended to

read as follows:

Sec. 466.202. FINGERPRINTS. (a) The executive director

may discharge from employment an employee of the department

[ commission ] who fails to provide a complete legible set of

fingerprints on request. The executive director may refuse to

consider a prospective employee of the department [ commission ] who

fails to provide a complete legible set of fingerprints on request.

(b) The executive director may deny an application for a

license or the department [ commission ] may suspend or revoke a

license if the applicant or sales agent fails on request to provide

a complete legible set of fingerprints of a person required to be

named in a license application.

SECTION 27. Sections 466.203(a) and (c), Government Code,

are amended to read as follows:

(a) The executive director may request the cooperation of

the Department of Public Safety to perform a background

investigation of a person listed in Section 466.201(a) or (b). The

executive director shall reimburse the Department of Public Safety

[ department ] for the actual cost of an investigation.

(c) Unless otherwise prohibited by law, the Department of

Public Safety may retain any record or information submitted to it

under this section. The Department of Public Safety [ department ]

shall notify the executive director of any change in information

provided to the executive director when the Department of Public

Safety [ department ] learns of the change.

SECTION 28. Section 466.204, Government Code, is amended to

read as follows:

Sec. 466.204. ACCESS TO INTERNAL REVENUE SERVICE

INFORMATION. The executive director may obtain information

relating to a person's qualification for licensing, employment, or

contracting under this chapter from the Internal Revenue Service

under a contract between the comptroller and the Internal Revenue

Service on:

(1) a sales agent or an applicant for a sales agent

license;

(2) an employee or prospective employee of the

department [ commission ];

(3) a person required to be named in a license

application;

(4) a lottery operator or prospective lottery

operator;

(5) an employee of a lottery operator or prospective

lottery operator, if the employee is or will be directly involved in

lottery operations;

(6) a person who manufactures or distributes lottery

equipment or supplies, or a representative of a person who

manufactures or distributes lottery equipment or supplies offered

to the lottery;

(7) a person who has submitted a written bid or

proposal to the department [ commission ] in connection with the

procurement of goods or services by the department [ commission ];

(8) an employee or other person who works for or will

work for a sales agent or an applicant for a sales agent license; or

(9) a person who proposes to enter into or who has a

contract with the department [ commission ] to supply goods or

services to the department [ commission ].

SECTION 29. Section 466.254, Government Code, is amended to

read as follows:

Sec. 466.254. PURCHASE OF TICKET BY OR PAYMENT OF PRIZE TO

CERTAIN PERSONS. A person may not purchase a ticket or claim,

collect, or receive a lottery prize or a share of a lottery prize if

the person is:

(1) a member, officer, or employee of a person that has

a contract with the department [ commission ] to sell or lease goods

or services used in the operation of the lottery, and the member,

officer, or employee is directly involved in selling or leasing the

goods or performing the services that are the subject of the

contract with the department [ commission ];

(2) a member, officer, or employee of a lottery

operator;

(3) an officer or employee of the department

[ commission ]; or

(4) a spouse, child, brother, sister, or parent

residing as a member of the same household in the principal place of

residence of a person described by Subdivision (1), (2), or (3).

SECTION 30. Subchapter F, Chapter 466, Government Code, is

amended by adding Section 466.255 to read as follows:

Sec. 466.255. LIMITATION ON NUMBER OF LOTTERY TICKETS PER

TRANSACTION. A person may not sell to one individual more than 100

lottery tickets in a single transaction.

SECTION 31. Section 466.302(a), Government Code, is amended

to read as follows:

(a) A person commits an offense if the person intentionally

or knowingly sells a ticket at a price the person knows is greater

than that fixed by the department [ commission ] or by the lottery

operator authorized to set that price.

SECTION 32. Sections 466.3051(a) and (d), Government Code,

are 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.

(d) It is a defense to the application of Subsection (b)

that the individual younger than 18 years of age is participating in

an inspection or investigation on behalf of the department

[ commission ] or other appropriate governmental entity regarding

compliance with this section.

SECTION 33. Section 466.3052(a), Government Code, is

amended to read as follows:

(a) A person commits an offense if the person intentionally

or knowingly sells a ticket and the person accepts anything other

than the following as payment for the ticket:

(1) United States currency;

(2) a negotiable instrument in the form of a check that

meets the requirements of Section 3.104, Business & Commerce Code;

(3) a debit made through a financial institution debit

card;

(4) a coupon or voucher issued by the department

[ commission ] for purposes of purchasing a lottery ticket; or

(5) a mail order subscription on a mail order

subscription form authorized by the department [ commission ].

SECTION 34. Section 466.311(b), Government Code, is amended

to read as follows:

(b) A person commits an offense if the person knowingly

refuses to produce for inspection by the [ director, ] executive

director, department [ commission ], or state auditor a book, record,

or document required to be maintained or made by this chapter or a

rule adopted under this chapter.

SECTION 35. Subchapter G, Chapter 466, Government Code, is

amended by adding Section 466.318 to read as follows:

Sec. 466.318. PLAY OR FACILITATING PLAY BY TELEPHONE OR BY

INTERNET OR MOBILE INTERNET APPLICATION. (a) A person may not by

telephone or through an Internet application or mobile Internet

application:

(1) purchase or order the purchase of a ticket for a

lottery game; or

(2) for compensation:

(A) accept an order for a ticket for a lottery

game from a player;

(B) sell a ticket for a lottery game to a player;

or

(C) arrange:

(i) to purchase a ticket on behalf of a

person playing a lottery game; or

(ii) for another person to purchase a

ticket on behalf of a person playing a lottery game.

(b) A person commits an offense if the person violates this

section.

(c) An offense under Subsection (a)(1) is a Class C

misdemeanor.

(d) An offense under Subsection (a)(2) is a Class A

misdemeanor.

SECTION 36. Sections 466.408(a), (c), and (f), Government

Code, are amended to read as follows:

(a) The department [ division ] shall retain an unclaimed

prize on a winning ticket for payment or delivery to the person

entitled to the prize for 180 days after the date on which the

winner was selected.

(c) If a claim is not made for a prize other than prize money

on or before the 180th day after the date on which the winner was

selected, the prize shall revert to the department [ division ] for

use in subsequent games.

(f) The department [ commission ] may deduct money paid to an

eligible person under Subsection (e) from prize money that would

otherwise be deposited under Subsection (b).

SECTION 37. Sections 466.410(a), (b), (d), (f), (g), and

(j), Government Code, are amended to read as follows:

(a) A person may assign, in whole or in part, the right to

receive prize payments that are paid by the department [ commission ]

in installments over time if the assignment is made to a person

designated by an order of a district court of Travis County, except

that a person may not assign the right to receive prize payments if

the person is subject to a child support order and is delinquent in

making support payments under that order.

(b) A district court shall issue an order approving a

voluntary assignment and directing the department [ commission ] to

direct prize payments in whole or in part to the assignee if:

(1) a copy of the petition for the order and copies of

all notices of any hearing in the matter have been served on the

executive director not later than 20 days prior to any hearing or

entry of any order. The department [ commission ] may intervene in a

proceeding to protect the interests of the department [ commission ]

but shall not be considered an indispensable or necessary party. A

petition filed under this section shall include in the caption the

prize winner's name as it appears on the lottery claim form;

(2) the assignment is in writing, executed by the

assignor and assignee (or designated agent), and by its terms

subject to the laws of this state; and

(3) the assignor provides a sworn and notarized

affidavit stating that the assignor:

(A) is of sound mind, over 18 years of age, is in

full command of the person's faculties, and is not acting under

duress;

(B) is not delinquent in payment of child support

under a court or administrative order issued in this state or

another state;

(C) has been advised regarding the assignment by

independent legal counsel and has had the opportunity to receive

independent financial and tax advice concerning the effects of the

assignment;

(D) understands that the assignor will not

receive the prize payments, or portions of the prize payments, for

the assigned years;

(E) understands and agrees that with regard to

the assigned payments, the state, the department [ commission ], and

its officials and employees will have no further liability or

responsibility to make the assigned payments to the assignor;

(F) has been provided a one-page written

disclosure statement stating, in boldfaced type, 14 points or

larger:

(i) the payments being assigned, by amounts

and payment dates;

(ii) the purchase price being paid, if any;

(iii) if a purchase price is paid, the rate

of discount to the present value of the prize, assuming daily

compounding and funding on the contract date; and

(iv) the amount, if any, of any origination

or closing fees that will be charged to the assignor; and

(G) was advised in writing, at the time the

assignment was signed, that the assignor had the right to cancel

without any further obligation not later than the third business

day after the date the assignment was signed.

(d) With respect to any given prize, the order shall also

recite and identify all prior assignments by amount of or fraction

of payment assigned, the identity of the assignee, and the date(s)

of payment(s) assigned. A court order obtained pursuant to this

section, together with all such prior orders, shall not require the

department [ commission ] to divide any single prize payment among

more than three different persons.

(f) A certified copy of a court order granted under this

section shall be delivered to the department [ commission ] and such

order must be provided to the department [ commission ] no later than

20 days prior to the date upon which the first assigned payment is

to be paid to the assignee. Within 20 days of receipt of the court

order, the department [ commission ] shall acknowledge in writing to

both the assignor and the assignee its receipt of said court order.

Unless the department [ commission ] provides written notice to the

assignor and assignee that the department [ commission ] cannot

comply with the court order, the department [ commission ] shall

thereafter make the prize payments in accordance with the court

order.

(g) The department [ commission ] shall establish and collect

a reasonable fee to defray any administrative expenses associated

with an assignment made under this section, including the cost to

the department [ commission ] of any processing fee imposed by a

private annuity provider. The department [ commission ] shall

establish the amount of the fee to reflect the direct and indirect

costs associated with processing the assignment.

(j) After receiving a letter or ruling from the Internal

Revenue Service or a published decision of a court as provided by

Subsection (i)(1) or (2), the executive director shall immediately

file a copy of the letter, ruling, or published decision with the

secretary of state. When the executive director files a copy of the

letter, ruling, or published decision with the secretary of state,

an assignor is ineligible to assign a prize under this section, and

the department [ commission ] shall not make any payment to an

assignee pursuant to a court order entered after the date of such

letter or ruling.

SECTION 38. Sections 466.411(b) and (d), Government Code,

are amended to read as follows:

(b) The department [ commission ] may release or disclose the

personally identifiable information of a natural person who is a

lottery prize winner if the person chooses to have the prize paid in

periodic installments. The department [ commission ] may only

disclose the information on or after the 30th day after the date the

person claims the lottery prize if the person chooses to remain

anonymous under Subsection (a).

(d) This section does not prohibit release of a natural

person prize winner's city or county of residence or prevent the

department [ commission ] from releasing the person's personally

identifiable information to the Health and Human Services

Commission or as necessary to comply with Section 466.407 or

466.4075.

SECTION 39. Section 466.451, Government Code, is amended to

read as follows:

Sec. 466.451. MULTIJURISDICTION AGREEMENT AUTHORIZED. The

department [ commission ] may enter into a written agreement with the

appropriate officials of one or more other states or other

jurisdictions, including foreign countries, to participate in the

operation, marketing, and promotion of a multijurisdiction lottery

game or games. The commission may adopt rules relating to a

multijurisdiction lottery game or games.

SECTION 40. Section 466.452(b), Government Code, is amended

to read as follows:

(b) The department [ commission ] may deposit a portion of the

revenue received from the sale of multijurisdiction lottery game

tickets in this state into a fund shared with other parties to an

agreement under this subchapter for the payment of prizes awarded

in multijurisdiction lottery games in which the department

[ commission ] participates. The department [ commission ] may retain

that revenue in the fund for as long as necessary to pay prizes

claimed during the period designated for claiming a prize in the

multijurisdiction lottery game.

SECTION 41. Section 466.453, Government Code, is amended to

read as follows:

Sec. 466.453. PAYMENT OF COSTS AUTHORIZED. The department

[ commission ] may share in the payment of costs associated with

participating in multijurisdiction lottery games.

SECTION 42. Section 544.0456(c), Government Code, is

amended to read as follows:

(c) On a monthly basis, the commission shall:

(1) conduct electronic data matches with the Texas

Department of Licensing and Regulation [ Lottery Commission ] to

determine whether a recipient of supplemental nutrition assistance

benefits or a recipient's household member received reportable

lottery winnings;

(2) use the database system developed under Section

532.0201 to:

(A) match vital statistics unit death records

with a list of individuals eligible for financial assistance or

supplemental nutrition assistance benefits; and

(B) ensure that any individual receiving

assistance under either program who is discovered to be deceased

has the individual's eligibility for assistance promptly

terminated; and

(3) review the out-of-state electronic benefit

transfer card transactions a recipient of supplemental nutrition

assistance benefits made to determine whether those transactions

indicate a possible change in the recipient's residence.

SECTION 43. Sections 572.003(b) and (c), Government Code,

are amended to read as follows:

(b) The term means:

(1) the banking commissioner [ Banking Commissioner ]

of the Texas [ The Banking ] Department of Banking [ Texas ];

(2) the administrative director of the Office of Court

Administration of the Texas Judicial System;

(3) the chief executive of the Office of Public

Utility Counsel;

(4) the executive director of the State Bar of Texas;

(5) [ the director of the lottery division of the Texas

Lottery Commission;

[ (6) the deputy in charge of the department of

security in the lottery division of the Texas Lottery Commission;

[ (7) ] the executive director of the [ bingo division of

the ] Texas Department of Licensing and Regulation [ Lottery

Commission ]; or

(6) [ (8) ] the secretary of state.

(c) The term means a member of:

(1) the Public Utility Commission of Texas;

(2) the Texas Commission on Environmental Quality;

(3) the Texas Alcoholic Beverage Commission;

(4) the Finance Commission of Texas;

(5) the Texas Facilities Commission;

(6) the Texas Board of Criminal Justice;

(7) the board of trustees of the Employees Retirement

System of Texas;

(8) the Texas Transportation Commission;

(9) the Texas Department of Insurance;

(10) the Parks and Wildlife Commission;

(11) the Public Safety Commission;

(12) the Texas Ethics Commission;

(13) the State Securities Board;

(14) the Texas Water Development Board;

(15) the governing board of a public senior college or

university as defined by Section 61.003, Education Code, or of The

University of Texas Southwestern Medical Center, The University of

Texas Medical Branch at Galveston, The University of Texas Health

Science Center at Houston, The University of Texas Health Science

Center at San Antonio, The University of Texas M. D. Anderson Cancer

Center, The University of Texas Health Science Center at Tyler,

University of North Texas Health Science Center at Fort Worth,

Texas Tech University Health Sciences Center, Texas State Technical

College--Harlingen, Texas State Technical College--Marshall, Texas

State Technical College--Sweetwater, or Texas State Technical

College--Waco;

(16) the Texas Higher Education Coordinating Board;

(17) the Texas Workforce Commission;

(18) the board of trustees of the Teacher Retirement

System of Texas;

(19) the Credit Union Commission;

(20) the School Land Board;

(21) the board of the Texas Department of Housing and

Community Affairs;

(22) the Texas Racing Commission;

(23) the State Board of Dental Examiners;

(24) the Texas Medical Board;

(25) the Board of Pardons and Paroles;

(26) the Texas State Board of Pharmacy;

(27) the Department of Information Resources

governing board;

(28) the board of the Texas Department of Motor

Vehicles;

(29) the Texas Real Estate Commission;

(30) the board of directors of the State Bar of Texas;

(31) the Bond Review Board;

(32) the Health and Human Services Commission;

(33) the Texas Funeral Service Commission;

(34) the board of directors of a river authority

created under the Texas Constitution or a statute of this state; or

(35) [ the Texas Lottery Commission; or

[ (36) ] the Cancer Prevention and Research Institute of

Texas.

SECTION 44. Sections 467.001(3), (4), (5), (6), (7), (8),

(9), (10), and (11), Government Code, are transferred to Section

51.001, Occupations Code, redesignated as Sections 51.001(1-b),

(2-a), (2-b), (4-a), (4-b), (4-c), (4-d), (4-e), and (4-f),

Occupations Code, and amended to read as follows:

(1-b) [ (3) ] "Communicate directly with" has the

meaning assigned by Section 305.002, Government Code.

(2-a) [ (4) ] "Gift" includes a gratuity, trip, meal, or

other thing of value for which the recipient does not compensate the

person making the gift and that is not conferred on account of

kinship or a personal, professional, or business relationship

independent of the official status of the recipient.

(2-b) [ (5) ] "Legislation" has the meaning assigned by

Section 305.002 , Government Code .

(4-a) [ (6) ] "Member of the legislative branch" has the

meaning assigned by Section 305.002 , Government Code .

(4-b) [ (7) ] "Participated" means to have taken action

as an officer or employee through decision, approval, disapproval,

recommendation, giving advice, or similar action.

(4-c) [ (8) ] "Particular matter" includes an

investigation, an application, a request for a ruling or

determination, a license proceeding, rulemaking, a contract, a

controversy, a claim, a charge, an accusation, an arrest, or a

judicial or other proceeding.

(4-d) [ (9) ] "Person that has a significant financial

interest in the lottery" means:

(A) a person or a board member, officer, trustee,

or general partner of a person that manufactures, distributes,

sells, or produces lottery equipment, supplies, services, or

advertising;

(B) an employee of a person that manufactures,

distributes, sells, or produces lottery equipment, supplies,

services, or advertising and that employee is directly involved in

the manufacturing, distribution, selling, or production of lottery

equipment, supplies, services, or advertising;

(C) a person or a board member, officer, trustee,

or general partner of a person that has made a bid to operate the

lottery in the preceding two years or that intends to make a bid to

operate the lottery or an employee of the person if the employee is

directly involved in making the bid; or

(D) a sales agent.

(4-e) [ (10) ] "Political committee" has the meaning

assigned by Section 251.001, Election Code.

(4-f) [ (11) ] "Political contribution" has the meaning

assigned by Section 251.001, Election Code.

SECTION 45. Section 51.002, Occupations Code, is amended to

read as follows:

Sec. 51.002. APPLICATION OF SUNSET ACT. The Texas

Commission of Licensing and Regulation and the Texas Department of

Licensing and Regulation are subject to Chapter 325, Government

Code (Texas Sunset Act). Unless continued in existence as provided

by that chapter, the commission and the department are abolished

and Chapter 2001 of this code expires September 1, 2033.

SECTION 46. Section 51.053, Occupations Code, is amended by

adding Subsection (b-1) to read as follows:

(b-1) In addition to the eligibility requirements provided

by Subsection (b), a person is not eligible for appointment as a

member of the commission if the person:

(1) has been convicted of a felony or of any crime

involving moral turpitude; or

(2) is not a citizen of the United States.

SECTION 47. Section 467.025, Government Code, is

transferred to Subchapter B, Chapter 51, Occupations Code,

redesignated as Section 51.061, Occupations Code, and amended to

read as follows:

Sec. 51.061 [ 467.025 ]. PROHIBITED CONDUCT. (a) A

commission member may not:

(1) accept any employment or remuneration from:

(A) a person that has a significant financial

interest in the lottery; or

(B) a bingo commercial lessor, bingo

distributor, or bingo manufacturer;

(2) play any lottery or bingo game conducted in this

state;

(3) accept or be entitled to accept any part of the

winnings to be paid from a lottery or bingo game conducted in this

state;

(4) use the member's official authority to affect the

result of an election or nomination for public office; or

(5) directly or indirectly coerce, attempt to coerce,

command, or advise a person to pay, lend, or contribute anything of

value to another person for political purposes.

(b) A commission member or former commission member or the

spouse of a commission member or former commission member may not

solicit or accept employment from a person regulated by the

commission before the second anniversary of the date on which the

commission member's service on the commission ends.

SECTION 48. Section 467.036, Government Code, is

transferred to Subchapter B, Chapter 51, Occupations Code,

redesignated as Section 51.062, Occupations Code, and amended to

read as follows:

Sec. 51.062 [ 467.036 ]. ACCESS TO CRIMINAL HISTORY

RECORDS. (a) The governor shall conduct an investigation of and

is entitled to obtain criminal history record information

maintained by the Department of Public Safety, the Federal Bureau

of Investigation Identification Division, or another law

enforcement agency relating to an individual the governor intends

to appoint to the commission.

(b) The commission shall conduct an investigation of and is

entitled to obtain criminal history record information maintained

by the Department of Public Safety, the Federal Bureau of

Investigation Identification Division, or another law enforcement

agency relating to an individual the commission intends to employ.

SECTION 49. Section 467.101, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.2011, Occupations Code, and amended to

read as follows:

Sec. 51.2011 [ 467.101 ]. POWERS AND DUTIES OF COMMISSION

REGARDING STATE LOTTERY AND BINGO REGULATION . (a) The commission

has broad authority and shall exercise strict control and close

supervision over all activities authorized and conducted in this

state under:

(1) Chapter 2001 [ , Occupations Code ]; and

(2) Chapter 466 , Government Code [ of this code ].

(b) The commission shall ensure that games are conducted

fairly and in compliance with the law.

(c) The commission also has the powers and duties granted

under:

(1) Chapter 2001 [ , Occupations Code ]; and

(2) Chapter 466 , Government Code [ of this code ].

SECTION 50. Section 467.104, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.212, Occupations Code, and amended to

read as follows:

Sec. 51.212 [ 467.104 ]. LOTTERY AND BINGO PROGRAM RECORDS.

(a) Except as otherwise provided by law, all commission records

relating to the state lottery under Chapter 466, Government Code,

and the regulation of charitable bingo under Chapter 2001 are

subject to public inspection in accordance with Chapter 552 ,

Government Code .

(b) The executive director shall keep the records described

by Subsection (a) [ of the commission ].

SECTION 51. Section 467.105, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.213, Occupations Code, and amended to

read as follows:

Sec. 51.213 [ 467.105 ]. LEGAL REPRESENTATION. (a) The

attorney general shall designate at least one member of the

attorney general's staff to counsel and advise the commission and

to represent the commission in legal proceedings. The attorney

general shall make available to the appropriate prosecuting

attorneys any information obtained regarding a violation of a law

under the commission's jurisdiction.

(b) The attorney general may apply for injunctive or

declaratory relief to enforce a law under the commission's

jurisdiction or a rule adopted by the commission. Action by the

attorney general under this subsection does not limit the authority

of the attorney general or a prosecuting attorney to bring a

criminal proceeding.

SECTION 52. Section 467.106, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.214, Occupations Code, and amended to

read as follows:

Sec. 51.214 [ 467.106 ]. GIFT OR POLITICAL CONTRIBUTION TO

OFFICER OR EMPLOYEE. (a) A commission member, the executive

director, or an employee of the department [ commission ] may not

intentionally or knowingly accept a gift or political contribution

from:

(1) a person that has a significant financial interest

in the lottery;

(2) a person related in the first degree of

consanguinity or affinity to a person that has a significant

financial interest in the lottery;

(3) a person that owns more than a 10 percent interest

in an entity that has a significant financial interest in the

lottery;

(4) a political committee that is directly

established, administered, or controlled, in whole or in part, by a

person that has a significant financial interest in the lottery; or

(5) a person who, within the two years preceding the

date of the gift or contribution, won a lottery prize exceeding $600

in amount or value.

(b) A person may not make a gift or political contribution

to a person known by the actor to be a commission member, the

executive director, or an employee of the department [ commission ],

if the actor:

(1) has a significant financial interest in the

lottery;

(2) is related in the first degree of consanguinity or

affinity to a person that has a significant financial interest in

the lottery;

(3) owns more than a 10 percent interest in an entity

that has a significant financial interest in the lottery;

(4) is a political committee that is directly

established, administered, or controlled, in whole or in part, by a

person that has a significant financial interest in the lottery; or

(5) within the two years preceding the date of the gift

or contribution, won a lottery prize exceeding $600 in amount or

value.

(c) A person commits an offense if the person violates this

section. An offense under this section is a Class A misdemeanor.

SECTION 53. Section 467.107, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.215, Occupations Code, and amended to

read as follows:

Sec. 51.215 [ 467.107 ]. GIFT OR POLITICAL CONTRIBUTION TO

FORMER OFFICER OR EMPLOYEE. (a) A former commission member,

former executive director, or former employee of the department

[ commission ] may not, before the second anniversary of the date

that the person's service in office or employment with the

department [ commission ] ceases, intentionally or knowingly accept

a gift or political contribution from:

(1) a person that has a significant financial interest

in the lottery;

(2) a person related in the first degree of

consanguinity or affinity to a person that has a significant

financial interest in the lottery;

(3) a person that owns more than a 10 percent interest

in an entity that has a significant financial interest in the

lottery;

(4) a political committee that is directly

established, administered, or controlled, in whole or in part, by a

person that has a significant financial interest in the lottery; or

(5) a person who, within the two years preceding the

date of the gift or contribution, won a lottery prize exceeding $600

in amount or value.

(b) A person may not make a gift or political contribution

to a person known by the actor to be a former commission member,

former executive director, or former employee of the department

[ commission ], if the actor:

(1) has a significant financial interest in the

lottery;

(2) is related in the first degree of consanguinity or

affinity to a person that has a significant financial interest in

the lottery;

(3) owns more than a 10 percent interest in an entity

that has a significant financial interest in the lottery;

(4) is a political committee that is directly

established, administered, or controlled, in whole or in part, by a

person that has a significant financial interest in the lottery; or

(5) within the two years preceding the date of the gift

or contribution, won a lottery prize exceeding $600 in amount or

value.

(c) A person commits an offense if the person violates this

section. An offense under this section is a Class A misdemeanor.

SECTION 54. Section 467.108, Government Code, is

transferred to Subchapter D, Chapter 51, Occupations Code,

redesignated as Section 51.216, Occupations Code, and amended to

read as follows:

Sec. 51.216 [ 467.108 ]. REPRESENTATION BY FORMER OFFICER

OR EMPLOYEE. (a) A former commission member or [ , ] former

executive director [ , or former director ] may not:

(1) for compensation, represent a person that has made

or intends to make a bid to operate the lottery before the

department [ commission ] before the second anniversary of the date

that the person's service in office or employment with the

department [ commission ] ceases;

(2) represent any person or receive compensation for

services rendered on behalf of any person regarding a particular

matter in which the former officer or employee participated during

the period of service or employment with the department

[ commission ], either through personal involvement or because the

matter was within the scope of the officer's or employee's official

responsibility; or

(3) for compensation communicate directly with a

member of the legislative branch to influence legislation on behalf

of a person that has a significant financial interest in the

lottery, before the second anniversary of the date that the

person's service in office or employment with the department

[ commission ] ceases.

(b) A person commits an offense if the person violates this

section. An offense under this section is a Class A misdemeanor.

SECTION 55. Subchapter D, Chapter 51, Occupations Code, is

amended by adding Sections 51.217 and 51.218 to read as follows:

Sec. 51.217. 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 and department 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 and department

on the advisory committee's activities;

(4) annually brief the commission and department on

advancements and challenges in this state's lottery industry; and

(5) perform other duties as determined by the

commission or department.

(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 comments on

issues the advisory committee considers.

(f) The lottery advisory committee shall meet quarterly or

at the commission's or department's request.

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

lottery advisory committee from discussing any lottery-related

topic.

Sec. 51.218. ANNUAL REPORT. (a) The department 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 department's major lottery initiatives that contains:

(A) specific goals for the department; and

(B) an evaluation of:

(i) the department's overall performance on

lottery operations;

(ii) the effectiveness of specific lottery

programs and initiatives;

(iii) the efficiency of the department's

lottery 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 department's lottery and bingo

jurisdiction identified:

(A) in complaints submitted under Section 51.252

as analyzed to identify the trends and issues by alleged violation

type and to evaluate the effectiveness of the department's

enforcement process; and

(B) through an inspection, audit, or other means

of regulating lottery operations under Chapter 466, Government

Code, and bingo under Chapter 2001;

(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;

(B) the total amount reported by licensed

authorized organizations of net proceeds from bingo operations

under Chapter 2001; 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 department 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 56. Section 2001.002, Occupations Code, is amended

by amending Subdivisions (8) and (25-a) and adding Subdivisions

(8-a) and (10) to read as follows:

(8) "Commission" means the Texas [ Lottery ] Commission

of Licensing and Regulation .

(8-a) "Department" means the Texas Department of

Licensing and Regulation.

(10) "Executive director" means the executive

director of the department.

(25-a) "Regular license" means a license to conduct

bingo issued by the department [ commission ] under Subchapter C that

is not a temporary license.

SECTION 57. Section 2001.003, Occupations Code, is amended

to read as follows:

Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND

BINGO PRIZE FEES. It is the intent of the legislature that the

funding necessary for the administration of this chapter by the

department [ commission ] be collected by the department

[ commission ] from commercial lessor, manufacturer, and distributor

license fees and money paid to the department [ commission ] by bingo

players as bingo prize fees.

SECTION 58. The heading to Subchapter B, Chapter 2001,

Occupations Code, is amended to read as follows:

SUBCHAPTER B. DEPARTMENT [ COMMISSION ] POWERS AND DUTIES

SECTION 59. Subchapter B, Chapter 2001, Occupations Code,

is amended by adding Section 2001.0501 to read as follows:

Sec. 2001.0501. ALLOCATION OF POWERS AND DUTIES. A power

granted or duty assigned to the commission under this chapter is a

power or duty of the executive director, the department, or the

commission, as established by commission rule.

SECTION 60. Section 2001.053, Occupations Code, is amended

to read as follows:

Sec. 2001.053. OFFICERS AND INVESTIGATORS. The department

[ commission ] may employ officers or investigators the department

[ commission ] considers necessary to administer this chapter.

SECTION 61. Sections 2001.056(b), (c), (d), and (e),

Occupations Code, are amended to read as follows:

(b) A license holder may not use or distribute a bingo card

unless the card has been approved by the department [ commission ].

(c) The department [ commission ] may set the price or adopt a

schedule of prices for the sale or provision of bingo cards by a

licensed authorized organization.

(d) A licensed authorized organization may not sell or

provide a bingo card at a price other than a price authorized by the

department [ commission ] or a schedule adopted by the department

[ commission ].

(e) The commission by rule may require a licensed authorized

organization to notify the department [ commission ] of the price for

bingo cards the organization will use for one or more reporting

periods.

SECTION 62. 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 and department 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 and department

on the committee's activities; [ and ]

(4) annually brief the commission and department on

advancements and challenges in this state's bingo industry; and

(5) perform other duties as determined by the

commission or department .

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

or at the commission's or department'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 63. Section 2001.058, Occupations Code, is amended

to read as follows:

Sec. 2001.058. PUBLIC INFORMATION. (a) The department

[ commission ] shall provide to any person on request a printed copy

of this chapter and the rules applicable to the enforcement of this

chapter.

(b) The department [ commission ] may charge a reasonable

amount for a copy provided under this section.

SECTION 64. Sections 2001.059(b) and (f), Occupations Code,

are 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.

(f) The commission may delegate all or part of the authority

and procedures for issuing advisory opinions under this section to

an employee of the department [ commission ].

SECTION 65. 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 66. Section 2001.557, Occupations Code, is amended

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

follows:

(a) The department [ commission ], its officers or agents, or

a state, municipal, or county peace officer may enter and inspect

the contents of premises where:

(1) bingo is being conducted or intended to be

conducted; or

(2) equipment used or intended for use in bingo is

found.

(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 67. Sections 2001.560(c), (c-1), (c-2), and (e),

Occupations Code, are amended to read as follows:

(c) The department [ commission ] or a person authorized in

writing by the department [ commission ] may examine the books,

papers, records, equipment, and place of business of a license

holder and may investigate the character of the license holder's

business to verify the accuracy of a return, statement, or report

made, or, if no return is made by the license holder, to ascertain

and determine the amount required to be paid.

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

auditing license holders. The department [ 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.

(c-2) The department [ bingo division ] shall provide to the

commission a copy of the auditing plan developed under Subsection

(c-1).

(e) If the department [ commission ] determines that a person

is not complying with this chapter, the department [ commission ]

shall notify the attorney general and the governing body of the

appropriate political subdivision.

SECTION 68. Subchapter B, Chapter 2312, Occupations Code,

is amended by adding Section 2312.0545 to read as follows:

Sec. 2312.0545. CENTER'S DEPARTMENT OF SECURITY. (a) The

center shall maintain a department of security within the center as

required by Section 466.020, Government Code.

(b) The center's department of security may identify and

respond to criminal activity related to financial crimes associated

with the state lottery and charitable bingo.

SECTION 69. Section 47.09(a), Penal Code, is amended to

read as follows:

(a) It is a defense to prosecution under this chapter that

the conduct:

(1) was authorized under:

(A) Chapter 2001, Occupations Code;

(B) Chapter 2002, Occupations Code;

(C) Chapter 2004, Occupations Code;

(D) Subtitle A-1, Title 13, Occupations Code

(Texas Racing Act); or

(E) Chapter 280, Finance Code;

(2) consisted entirely of participation in the state

lottery authorized by Chapter 466, Government Code; or

(3) was a necessary incident to the operation of the

state lottery and was directly or indirectly authorized by:

(A) Chapter 466, Government Code;

(B) [ the lottery division of the Texas Lottery

Commission;

[ (C) ] the Texas Department of Licensing and

Regulation [ Lottery Commission ]; or

(C) [ (D) ] the executive director of [ the lottery

division of ] the Texas Department of Licensing and Regulation

[ Lottery Commission ].

SECTION 70. Section 721.003(a), Transportation Code, is

amended to read as follows:

(a) The governing bodies of the following state agencies or

divisions by rule may exempt from the requirements of Section

721.002 a motor vehicle that is under the control and custody of the

agency or division:

(1) Texas Commission on Fire Protection;

(2) Texas State Board of Pharmacy;

(3) Department of State Health Services [ and

Department of Aging and Disability Services ];

(4) Department of Public Safety of the State of Texas;

(5) Texas Department of Criminal Justice;

(6) Board of Pardons and Paroles;

(7) Parks and Wildlife Department;

(8) Railroad Commission of Texas;

(9) Texas Alcoholic Beverage Commission;

(10) Texas Department of Banking;

(11) Department of Savings and Mortgage Lending;

(12) Texas Juvenile Justice Department;

(13) Texas Commission on Environmental Quality;

(14) Texas Department of Licensing and Regulation

[ Lottery Commission ];

(15) the office of the attorney general;

(16) Texas Department of Insurance;

(17) Texas Military Department; and

(18) an agency that receives an appropriation under an

article of the General Appropriations Act that appropriates money

to the legislature.

SECTION 71. The following provisions are repealed:

(1) Section 232.0021, Family Code;

(2) Section 411.108, Government Code;

(3) Section 466.012, Government Code;

(4) Section 466.016, Government Code;

(5) Section 466.028, Government Code;

(6) Sections 467.001(1) and (2), Government Code;

(7) the heading to Section 467.001, Government Code;

(8) Section 467.002, Government Code;

(9) Section 467.021, Government Code;

(10) Section 467.022, Government Code;

(11) Section 467.023, Government Code;

(12) Section 467.024, Government Code;

(13) Section 467.0255, Government Code;

(14) Section 467.026, Government Code;

(15) Section 467.027, Government Code;

(16) Section 467.028, Government Code;

(17) Section 467.029, Government Code;

(18) Section 467.030, Government Code;

(19) Section 467.031, Government Code;

(20) Section 467.032, Government Code;

(21) Section 467.033, Government Code;

(22) Section 467.034, Government Code;

(23) Section 467.035, Government Code;

(24) Section 467.037, Government Code;

(25) Section 467.102, Government Code;

(26) Section 467.103, Government Code;

(27) Section 467.109, Government Code;

(28) Section 467.110, Government Code;

(29) Section 467.111, Government Code;

(30) the headings to Subchapters A, B, and C, Chapter

467, Government Code;

(31) the heading to Chapter 467, Government Code;

(32) Section 2001.051, Occupations Code;

(33) Section 2001.052, Occupations Code;

(34) Section 2001.060, Occupations Code;

(35) Section 2001.061, Occupations Code;

(36) Section 2001.307, Occupations Code; and

(37) Section 721.003(e), Transportation Code.

SECTION 72. (a) On September 1, 2025:

(1) all functions and activities performed by the

Texas Lottery Commission relating to the state lottery under

Chapter 466, Government Code, and the regulation of bingo

operations under Chapter 2001, Occupations Code, immediately

before that date are transferred to the Texas Commission of

Licensing and Regulation or the Texas Department of Licensing and

Regulation, as applicable;

(2) a rule, policy, procedure, decision, or form

adopted by the Texas Lottery Commission relating to Chapter 466 or

467, Government Code, or Chapter 2001, Occupations Code, is a rule,

policy, procedure, decision, or form of the Texas Commission of

Licensing and Regulation or the Texas Department of Licensing and

Regulation, as applicable, and remains in effect until amended or

repealed by that commission or department unless the rule, policy,

procedure, decision, or form conflicts with the changes in law made

by this Act;

(3) unless the context clearly indicates otherwise, a

reference to the Texas Lottery Commission in a law or

administrative rule that relates to Chapter 466 or 467, Government

Code, or Chapter 2001, Occupations Code, means the Texas Commission

of Licensing and Regulation or the Texas Department of Licensing

and Regulation, as applicable;

(4) a complaint, investigation, or other proceeding

before the Texas Lottery Commission that is related to Chapter 466

or 467, Government Code, or Chapter 2001, Occupations Code, is

transferred without change in status to the Texas Department of

Licensing and Regulation, and the Texas Department of Licensing and

Regulation assumes, as appropriate and without a change in status,

the position of the Texas Lottery Commission in an action or

proceeding to which the Texas Lottery Commission is a party;

(5) a license, permit, certification, or registration

in effect that was issued by the Texas Lottery Commission under

Chapter 466 or 467, Government Code, or Chapter 2001, Occupations

Code, is continued in effect as a license, permit, certification,

or registration of the Texas Department of Licensing and

Regulation;

(6) all money, contracts, leases, property, and

obligations of the Texas Lottery Commission relating to Chapter 466

or 467, Government Code, or Chapter 2001, Occupations Code, are

transferred to the Texas Department of Licensing and Regulation;

and

(7) the unexpended and unobligated balance of any

money appropriated by the legislature for the Texas Lottery

Commission related to Chapter 466 or 467, Government Code, or

Chapter 2001, Occupations Code, is transferred to the Texas

Department of Licensing and Regulation.

(b) On September 1, 2025, all full-time equivalent employee

positions at the Texas Lottery Commission that primarily concern

the administration, auditing, accounting, enforcement, or other

direct and indirect support of Chapter 466 or 467, Government Code,

or Chapter 2001, Occupations Code, become positions at the Texas

Department of Licensing and Regulation. When filling the

positions, the Texas Department of Licensing and Regulation shall

give first consideration to an applicant who, as of August 31, 2025,

was an employee at the Texas Lottery Commission primarily involved

in administering or enforcing Chapter 466 or 467, Government Code,

or Chapter 2001, Occupations Code.

(c) On and after September 1, 2025, the Texas Lottery

Commission shall grant the Texas Department of Licensing and

Regulation inquiry-only security access to:

(1) all licensing, enforcement, and examination

software or computer systems used by the Texas Lottery Commission

in administering or enforcing Chapter 466 or 467, Government Code,

or Chapter 2001, Occupations Code; and

(2) the uniform statewide accounting system, the state

property accounting system, the uniform statewide payroll system,

and the human resources information system for the Texas Lottery

Commission.

(d) On and after September 1, 2025, the Texas Lottery

Commission may agree with the Texas Department of Licensing and

Regulation to transfer any property of the Texas Lottery Commission

to the Texas Department of Licensing and Regulation to implement

the transfers required by this Act.

(e) The Texas Department of Licensing and Regulation and the

Texas Lottery Commission shall coordinate implementation of this

section. The Texas Lottery Commission shall cooperate with the

Texas Department of Licensing and Regulation in transferring all

data and records necessary to implement the transfers required by

this Act.

(f) Not later than December 1, 2025, the Texas Lottery

Commission and the Texas Department of Licensing and Regulation

shall develop and enter into a memorandum of understanding

regarding the transfers required by this Act. The memorandum must

include a transition plan with a timetable and specific steps and

deadlines required to complete the transfer.

(g) Not later than December 1, 2025, a manufacturer of bingo

equipment or supplies that submitted to the Texas Lottery

Commission a bond as required under Section 2001.204, Occupations

Code, before September 1, 2025, that is in effect on the effective

date of this Act must amend the bond to name the Texas Department of

Licensing and Regulation as the payee for the bond.

SECTION 73. The changes in law made by this Act to Chapter

2001, Occupations Code, apply only to a tax or fee charged on or

after September 1, 2025. A tax or fee charged before September 1,

2025, is governed by the law in effect immediately before that date,

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

SECTION 74. (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 75. Not later than December 1, 2025, the Texas

Commission of Licensing and Regulation shall:

(1) appoint members to the lottery advisory committee

and adopt rules to govern the operations of the committee as

required by Section 51.217, Occupations Code, as added by this Act;

(2) appoint members to the bingo advisory committee

and adopt rules to govern the operations of the committee as

required by Section 2001.057, Occupations Code, as amended by this

Act; and

(3) adopt rules necessary to implement this Act.

SECTION 76. Not later than December 1, 2026, the Texas

Department of Licensing and Regulation shall submit to the Sunset

Advisory Commission and each standing committee of the legislature

with primary jurisdiction over the state lottery or regulation of

charitable bingo any legislative recommendations necessary to

improve the lottery or charitable bingo.

SECTION 77. This Act takes effect September 1, 2025.