Hagenbuch Bill Bans State Lottery Ads, Keeps Selling Tickets

The text as introduced · 1,270 words

90R4715 ADM-D

By: Hagenbuch, Hall
S.B. No. 162

A BILL TO BE ENTITLED

AN ACT

relating to a prohibition on the Texas Department of Licensing and

Regulation advertising, marketing, or promoting the state lottery.

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

SECTION 1. Section 466.015(c), Government Code, is amended

to read as follows:

(c) The commission may adopt rules governing the

establishment and operation of the lottery, including rules

governing:

(1) the type of lottery games to be conducted;

(2) the price of each ticket;

(3) the number of winning tickets and amount of the

prize paid on each winning ticket;

(4) the frequency of the drawing or selection of a

winning ticket;

(5) the number and types of locations at which a ticket

may be sold;

(6) the method to be used in selling a ticket;

(7) the use of vending machines or electronic or

mechanical devices of any kind, other than machines or devices that

dispense currency or coins as prizes;

(8) the manner of paying a prize to the holder of a

winning ticket;

(9) the investigation of possible violations of this

chapter or any rule adopted under this chapter;

(10) [ the means of advertising to be used for the

lottery;

[ (11) ] the qualifications of vendors of lottery

services or equipment;

(11) [ (12) ] the confidentiality of information

relating to the operation of the lottery, including:

(A) trade secrets;

(B) security measures, systems, or procedures;

(C) security reports;

(D) bids or other information regarding the

commission's contracts, if disclosure of the information would

impair the commission's ability to contract for facilities, goods,

or services on terms favorable to the commission;

(E) personnel information unrelated to

compensation, duties, qualifications, or responsibilities; and

(F) information obtained by commission security

officers or investigators;

(12) [ (13) ] the development and availability of a

model agreement governing the division of a prize among multiple

purchasers of a winning ticket purchased through a group purchase

or pooling arrangement;

(13) [ (14) ] the criteria to be used in evaluating bids

for contracts for lottery facilities, goods, and services; or

(14) [ (15) ] any other matter necessary or desirable as

determined by the commission, to promote and ensure:

(A) the integrity, security, honesty, and

fairness of the operation and administration of the lottery; and

(B) the convenience of players and holders of

winning tickets.

SECTION 2. Section 466.027(c), Government Code, is amended

to read as follows:

(c) [ The department 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

relating to the marketing and advertising of the game. ]

SECTION 3. Section 466.103, Government Code, is amended to

read as follows:

Sec. 466.103. PROHIBITED CONTRACTS. The [ (a) Except as

provided by Subsection (b), the ] executive director may not award a

contract for the purchase or lease of facilities, goods, or

services related to lottery operations to a person who would be

denied a license as a sales agent under Section 466.155.

[ (b) Subsection (a) does not prohibit the executive

director from awarding a contract for the purpose of conducting a

promotional event to a person who would be denied a license as a

sales agent under Section 466.155(a)(4)(C) but not under any other

provision of Section 466.155. ]

SECTION 4. Section 466.106, Government Code, is amended to

read as follows:

Sec. 466.106. PREFERENCE FOR TEXAS BUSINESSES. (a) In

all contracts for lottery equipment, supplies, and services, [ and

advertising, ] the department 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.

(b) If equipment or supplies produced in this state or

services [ or advertising ] offered by a bidder from this state are

not equal in cost and quality, then equipment or supplies produced

in another state or services [ or advertising ] offered by a bidder

from another state shall be given preference over foreign

equipment, supplies, or services[ , or advertising ].

SECTION 5. Section 466.107(a), Government Code, is 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;

(B) provide services[ , including advertising, ]

to the department 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; and

(7) require all bidders or contractors, when

appropriate, to include specific plans or arrangements to use

subcontracts with minority businesses.

SECTION 6. Section 466.110, Government Code, is amended to

read as follows:

Sec. 466.110. PROHIBITED LOTTERY ADVERTISEMENTS ,

MARKETING, AND PROMOTION . The [ legislature intends that

advertisements or promotions sponsored by the ] department may not

advertise, market, or promote the lottery or a lottery game or

otherwise attempt to influence [ for the lottery not be of a nature

that unduly influences ] any person to purchase a lottery ticket or

number.

SECTION 7. Section 466.451, Government Code, is amended to

read as follows:

Sec. 466.451. MULTIJURISDICTION AGREEMENT AUTHORIZED. The

department 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 department may not participate in the advertisement,

marketing, or promotion of a multijurisdiction lottery game or

games. The commission may adopt rules relating to a

multijurisdiction lottery game or games.

SECTION 8. Section 51.001(4-d), Occupations Code, is

amended to read as follows:

(4-d) "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, or services[ , or

advertising ];

(B) an employee of a person that manufactures,

distributes, sells, or produces lottery equipment, supplies, or

services[ , or advertising ] and that employee is directly involved

in the manufacturing, distribution, selling, or production of

lottery equipment, supplies, or 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.

SECTION 9. Section 466.109, Government Code, is repealed.

SECTION 10. The changes in law made by this Act apply only

to an advertisement, marketing program, or promotion contracted

for, printed, or otherwise visually or orally communicated on or

after the effective date of this Act.

SECTION 11. This Act takes effect September 1, 2027.