CHAPTER 466. STATE LOTTERY
GOVERNMENT CODE
TITLE 4. EXECUTIVE BRANCH
SUBTITLE E. OTHER EXECUTIVE AGENCIES AND PROGRAMS
CHAPTER 466. STATE LOTTERY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 466.001. SHORT TITLE. This chapter may be cited as the
State Lottery Act.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993.
Sec. 466.002. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Lottery Commission.
(2) "Director" means the director of the division.
(3) "Division" means the lottery division established by the
commission under Chapter 467.
(4) "Executive director" means the executive director of the
commission.
(5) "Lottery" means the procedures operated by the state under
this chapter through which prizes are awarded or distributed by
chance among persons who have paid, or unconditionally agreed to
pay, for a chance or other opportunity to receive a prize.
(6) "Lottery game" includes a lottery activity.
(7) "Lottery operator" means a person selected under Section
466.014(b) to operate a lottery.
(8) "Player" means a person who contributes any part of the
consideration for a ticket.
(9) "Sales agent" or "sales agency" means a person licensed
under this chapter to sell tickets.
(10) "Ticket" means any tangible evidence issued to provide
participation in a lottery game authorized by this chapter.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.01,
eff. Sept. 1, 1995.
Sec. 466.003. APPLICATION OF SUNSET ACT. (a) The lottery
division is subject to Chapter 325 (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the division
is abolished and this chapter expires September 1, 2005. In the
review of the lottery division by the Sunset Advisory Commission,
as required by this section, the sunset commission shall limit
its review to the appropriateness of recommendations made by the
sunset commission to the 78th Legislature. In the Sunset Advisory
Commission's report to the 79th Legislature, the sunset
commission may include any recommendations it considers
appropriate.
(b) A contract between the division and a lottery operator under
Section 466.014(b) must contain a provision allowing the contract
to be terminated without penalty should the division be
abolished.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1999, 76th Leg., ch. 587, Sec. 1, eff.
June 18, 1999; Acts 2003, 78th Leg., ch. 1112, Sec. 1.03(b), eff.
Sept. 1, 2003.
Sec. 466.004. EXEMPTION FROM TAXATION. (a) A political
subdivision of this state may not impose:
(1) a tax on the sale of a ticket;
(2) a tax on the payment of a prize under this chapter; or
(3) an ad valorem tax on tickets.
(b) The receipts from the sale, use, or other consumption of a
ticket are exempt from taxation under Chapter 151, Tax Code.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993.
SUBCHAPTER B. ADMINISTRATION
Sec. 466.012. DIVISION EMPLOYEES. Division employees are
specifically exempted from Chapter 654. The director shall set
the salaries of these employees.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.02,
eff. Sept. 1, 1995.
Sec. 466.014. POWERS AND DUTIES OF COMMISSION AND EXECUTIVE
DIRECTOR. (a) The 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.
(b) The executive director may contract with or employ a person
to perform a function, activity, or service in connection with
the operation of the lottery as prescribed by the executive
director. A person with whom the executive director contracts to
operate a lottery must be eligible for a sales agent license
under Section 466.155.
(c) The executive director may award a contract for lottery
supplies or services, including a contract under Subsection (b),
pending the completion of any investigation authorized by this
chapter. A contract awarded under this subsection must include a
provision permitting the executive director to terminate the
contract without penalty if the investigation reveals that the
person to whom the contract is awarded would not be eligible for
a sales agent license under Section 466.155.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.03,
eff. Sept. 1, 1995.
Sec. 466.015. RULES. (a) The commission shall adopt all rules
necessary to administer this chapter. The executive director may
propose rules to be adopted by the commission, but the executive
director's proposed rules have no effect until adopted by the
commission.
(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 a lottery
game by telephone.
(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;
(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;
(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;
(14) the criteria to be used in evaluating bids for contracts
for lottery facilities, goods, and services; or
(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.
(d) Repealed by Acts 2009, 81st Leg., R.S., Ch. 74, Sec. 1, eff.
May 20, 2009.
(e) Expired.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(83),
(94), 6.04, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 592,
Sec. 3.01, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1353,
Sec. 1, 2, eff. June 19, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
74, Sec. 1, eff. May 20, 2009.
Sec. 466.016. ANNUAL REPORT. The commission shall make an
annual report to the governor and the legislature that provides a
summary of lottery revenues, prize disbursements, and other
expenses for the fiscal year preceding the report. The report
must be in the form and reported in the time provided by the
General Appropriations Act.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.04,
eff. Sept. 1, 1995.
Sec. 466.0161. REVIEW BY COMPTROLLER. (a) Annually, the
comptroller shall review the management and operations of the
lottery. The comptroller may examine books, records, documents,
things, or persons as necessary for that purpose.
(b) The comptroller shall report the results of the review to
the governor, the lieutenant governor, and the speaker of the
house of representatives.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 6.05, eff. Sept. 1,
1995.
Sec. 466.017. AUDITS. (a) The executive director shall provide
for a certified public accountant to conduct an independent audit
for each fiscal year of all accounts and transactions of the
lottery. The certified public accountant may not have, as
determined by the executive director, a significant financial
interest in a sales agent, lottery vendor, or lottery operator.
The certified public accountant shall present an audit report to
the executive director, the commission, the governor, the
comptroller, and the legislature not later than the 30th day
after the submission date for the annual financial report
required by the General Appropriations Act. The report must
contain recommendations to enhance the earnings capability of the
lottery and improve the efficiency of lottery operations. The
state auditor may review the results of and working papers
related to the audit.
(b) Each lottery operator's and sales agent's records are
subject to audit by the commission and the state auditor. For the
purpose of carrying out this chapter, the executive director or
state auditor may examine all books, records, papers, or other
objects that the executive director or state auditor determines
are necessary for conducting a complete examination under this
chapter and may also examine under oath any officer, director, or
employee of a lottery operator or sales agent. The executive
director or state auditor may conduct an examination at the
principal office or any other office of the lottery operator or
sales agent or may require the lottery operator or sales agent to
produce the records at the office of the commission or state
auditor. If a sales agent refuses to permit an examination or to
answer any question authorized by this subsection, the executive
director may summarily suspend the license of the sales agent
under Section 466.160 until the examination is completed as
required. Section 321.013(h) does not apply to an audit of a
lottery operator or sales agent.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.06,
eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1035, Sec. 66, eff.
Sept. 1, 1997.
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 commission or its employees, a sales agent, a
lottery vendor, or a lottery operator.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.07,
eff. Sept. 1, 1995.
Sec. 466.019. ENFORCEMENT. (a) The executive director or
designated personnel of the 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 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
commission.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03, eff. Aug. 30,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.07, eff.
Sept. 1, 1995.
Sec. 466.020. SECURITY. (a) The executive director shall
maintain a department of security in the commission. The
executive director shall appoint a deputy to administer the
department. The deputy must be qualified by training and
experience in law enforcement or security to supervise, direct,
and administer the activities of the department.
(b) The executive director may employ security officers or
investigators as the executive director considers necessary and
may commission security officers or investigators as peace
officers. The deputy and all investigators employed by the
department of security as peace officers must meet the
requirements under Chapter 415 for employment and commission as
peace officers.
(c) A security officer or investigator employed by the
department of security or a peace officer who is working in
conjunction with the commission or the Department of Public
Safety in the enforcement of this chapter, without a search
warrant, may search and seize a lottery vending machine, lottery
computer terminal, or other lottery equipment that is located on
premises for which a person holds a sales agent license issued
under this chapter.
(d) The Department of Public Safety, at the commission's
request, shall perform a full criminal background investigation
of a prospective deputy or investigator of the department of
security. The commission shall reimburse the Department of Public
Safety for the actual costs of an investigation.
(e) At least once every two years, the executive director shall
employ an independent firm that is experienced in security,
including computer security and systems security, to conduct a
comprehensive study of all aspects of lottery security,
including:
(1) lottery personnel security;
(2) sales agent security;
(3) lottery operator and vendor security;
(4) security against ticket counterfeiting and alteration and
other means of fraudulent winning;
(5) security of lottery drawings;
(6) lottery computer, data communications, database, and systems
security;
(7) lottery premises and warehouse security;
(8) security of distribution of tickets;
(9) security of validation and payment procedures;
(10) security involving unclaimed prizes;
(11) security aspects of each lottery game;
(12) security against the deliberate placement of winning
tickets in lottery games that involve preprinted winning tickets
by persons involved in the production, storage, transportation,
or distribution of tickets; and
(13) other security aspects of lottery operations.
(f) The executive director shall provide the commission with a
complete report of the security study conducted under Subsection
(e). The commission shall provide the governor and the
legislature, before the convening of each regular legislative
session, with a summary of the security study that shows the
overall evaluation of the lottery's security.
(g) Expired.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.08,
eff. Sept. 1, 1995.
Sec. 466.021. DEMOGRAPHIC STUDIES. (a) The executive director
shall, every two years, employ an independent firm experienced in
demographic analysis to conduct a demographic study of lottery
players. The study must include the income, age, sex, race,
education, and frequency of participation of players.
(b) The executive director shall report the results of the
demographic study conducted under Subsection (a) to the
commission, the governor, and the legislature before the
convening of each regular legislative session.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.09,
eff. Sept. 1, 1995.
Sec. 466.022. CONFIDENTIAL INFORMATION. (a) Except as
otherwise provided by law, all commission records are subject to
public inspection in accordance with Chapter 552.
(b) In addition to 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 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; and
(3) the street address and telephone number of a prize winner,
if the prize winner has not consented to the release of the
information.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(94),
6.09, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 792, Sec. 1,
eff. Sept. 1, 1997.
Sec. 466.023. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a) Except
as otherwise provided by this chapter, all files, records,
information, compilations, documents, photographs, reports,
summaries, and reviews of information and related matters
collected, retained, or compiled by the Department of Public
Safety in the discharge of its duties under this chapter are
confidential and are not subject to public disclosure. Each of
those items is subject to discovery by a person that is the
subject of the item.
(b) An investigation report or other document submitted by the
Department of Public Safety to the commission becomes part of the
investigative files of the commission and is subject to discovery
by a person that is the subject of the investigation report or
other document.
(c) Information that is in the form available to the public is
not privileged or confidential under this section and is subject
to public disclosure.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.10,
eff. Sept. 1, 1995.
Sec. 466.024. PROHIBITED GAMES. (a) The executive director or
a lottery operator may not establish or operate a lottery game in
which the winner is chosen on the basis of the outcome of a
sports event.
(b) The commission shall adopt rules prohibiting the operation
of any game using a video lottery machine or machine.
(c) In this section:
(1) "Sports event" means a football, basketball, baseball, or
similar game, or a horse or dog race on which pari-mutuel
wagering is allowed.
(2) "Video lottery machine" or "machine" means any electronic
video game machine that, upon insertion of cash, is available to
play or simulate the play of a video game, including video poker,
keno, and blackjack, using a video display and microprocessors in
which the player may receive free games or credits that can be
redeemed for cash, coins, or tokens, or that directly dispenses
cash, coins, or tokens.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.11,
eff. Sept. 1, 1995.
Sec. 466.025. REPORTS OF TICKETS SOLD AND PRIZES AWARDED. For
each lottery game, after the last date on which a prize may be
claimed under Section 466.408(d), the director shall prepare a
report that shows the total number of tickets sold and the number
and amounts of prizes awarded in the game. The report must be
available for public inspection.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993.
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 commission shall disseminate
Amber Alert information at its retail locations through the
lottery operator system.
Added by Acts 2003, 78th Leg., ch. 544, Sec. 1, eff. Sept. 1,
2003.
Sec. 466.027. VETERANS' ASSISTANCE GAME. (a) The commission
shall operate an instant-ticket lottery game to benefit the fund
for veterans' assistance established by Section 434.017.
(b) The 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 commission.
(c) The 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 Texas
Lottery Commission relating to the marketing and advertising of
the game.
(d) The 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.
(e) No organization that would otherwise be eligible to receive
funds from the state lottery account attributable to any lottery
game authorized by this section may receive any such funds if it
conducts illegal gambling or the illegal operation of gambling
devices as defined by Chapter 47, Penal Code, or allows illegal
gambling or the illegal operation of gambling devices to be
conducted on its property or in its facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
1385, Sec. 5(a), eff. June 19, 2009.
SUBCHAPTER C. PROCUREMENT; ADVERTISING
Sec. 466.101. PROCUREMENT PROCEDURES. (a) The executive
director may establish procedures for the purchase or lease of
facilities, goods, and services and make any purchases, leases,
or contracts that are necessary for carrying out the purposes of
this chapter. The procedures must, as determined feasible and
appropriate by the executive director, promote competition to the
maximum extent possible.
(b) In all procurement decisions, the executive director shall
take into account the particularly sensitive nature of the
lottery and shall act to promote and ensure integrity, security,
honesty, and fairness in the operation and administration of the
lottery and the objective of producing revenues for the state
treasury.
(c) The procurement procedures adopted by the executive director
must, as determined feasible and appropriate by the executive
director, afford any party who is aggrieved by the terms of a
solicitation or the award of a contract an opportunity to protest
the executive director's action to the commission. The protest
procedures must provide for an expedient resolution of the
protest in order to avoid substantially delaying a solicitation
or contract award that is necessary for the timely implementation
of a lottery game. A protest must be in writing and be filed with
the commission not later than 72 hours after receipt of notice of
the executive director's action.
(d) A party who is aggrieved by the commission's resolution of a
protest under Subsection (c) may file an action in the district
court of Travis County. The court shall give preference to
hearings and trials of actions under this section. If the party
filing the action seeks to enjoin the implementation of a
solicitation or contract, the party shall post a bond that is
payable to the state if the party does not prevail in the appeal,
and is in an amount sufficient to compensate the state for the
revenue that would be lost due to the delay in lottery
operations.
(e) The commission shall require any person seeking to contract
for goods or services relating to the implementation and
administration of this chapter to submit to competitive bidding
procedures in accordance with rules adopted by the commission.
The procedures must be for the purpose of ensuring fairness and
integrity.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,
eff. Sept. 1, 1995.
Sec. 466.102. LIQUIDATED DAMAGES; PERFORMANCE BOND. A contract
for the acquisition or provision of facilities, supplies,
equipment, materials, or services related to the operation of the
lottery must provide for liquidated damages and a performance
bond in an amount equal to the executive director's best
available estimate of the revenue that would be lost if the
contractor fails to meet deadlines specified in the contract.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,
eff. Sept. 1, 1995.
Sec. 466.103. PROHIBITED CONTRACTS. (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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,
eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 678, Sec. 1, eff.
Sept. 1, 1999.
Sec. 466.104. ASSISTANCE OF COMPTROLLER. (a) On request of the
executive director, the comptroller shall assist the executive
director in:
(1) acquiring facilities, supplies, materials, equipment, and
services under Subtitle D, Title 10; or
(2) establishing procedures for the executive director's
accelerated acquisition of facilities, supplies, materials,
equipment, and services for the operation of the lottery.
(b) The comptroller may request assistance from the Texas
Facilities Commission in performing its facilities-related duties
under this section.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,
eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 17.19(5),
eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.51, eff. September 1, 2007.
Sec. 466.105. APPLICABILITY OF OTHER LAW. (a) A contract for
the acquisition or provision of facilities, supplies, equipment,
materials, or services related to the operation of the lottery is
not subject to:
(1) Chapter 2054 or 2254; or
(2) Subtitle D, Title 10.
(b) Notwithstanding the provisions of Title 2, Utilities Code,
the commission may negotiate rates and execute contracts with
telecommunications service providers for the interexchange
services necessary for the operation of the lottery. The
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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(14),
6.13, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec.
17.19(5), eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec.
18.21, eff. Sept. 1, 1999.
Sec. 466.106. PREFERENCE FOR TEXAS BUSINESSES. (a) In all
contracts for lottery equipment, supplies, services, and
advertising, the 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.
(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, services, or advertising.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.14,
eff. Sept. 1, 1995.
Sec. 466.107. MINORITY BUSINESSES. (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 commission;
(B) provide services, including advertising, to the 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
commission; and
(7) require all bidders or contractors, when appropriate, to
include specific plans or arrangements to use subcontracts with
minority businesses.
(b) In this section:
(1) "Minority business" means a business entity at least 51
percent of which is owned by minority group members or, in the
case of a corporation, at least 51 percent of the shares of which
are owned by minority group members, and that:
(A) is managed and, in daily operations, is controlled by
minority group members; and
(B) is a domestic business entity with a home or branch office
located in this state and is not a branch or subsidiary of a
foreign corporation, firm, or other business entity.
(2) "Minority group members" includes:
(A) African Americans;
(B) American Indians;
(C) Asian Americans; and
(D) Mexican Americans and other Americans of Hispanic origin.
(c) The commission shall annually report to the legislature and
the governor on the level of minority business participation as
pertains to both the 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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.15,
eff. Sept. 1, 1995.
Sec. 466.108. TELEVISION CONTRACTS. If the drawing or selection
of winning tickets is televised under a contract with the
commission, the contract must be awarded by competitive bid. The
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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.16,
eff. Sept. 1, 1995.
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 commission, may not appear in an
advertisement or promotion for the lottery that is sponsored by
the 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 commission.
(b) In connection with providing security for the lottery, this
section does not prohibit a security officer or investigator
employed by the commission from appearing in a televised lottery
drawing or other promotion for the lottery that is sponsored by
the commission .
(c) Notwithstanding this section, the executive director may
designate an employee of the commission to participate in a
promotional event.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.16,
eff. Sept. 1, 1995.
Sec. 466.110. PROHIBITED ADVERTISEMENTS. The legislature
intends that advertisements or promotions sponsored by the
commission or the division for the lottery not be of a nature
that unduly influences any person to purchase a lottery ticket or
number.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.17,
eff. Sept. 1, 1995.
SUBCHAPTER D. LICENSING OF SALES AGENTS
Sec. 466.151. LICENSE REQUIRED. (a) If the executive director
authorizes a person who is not an employee of the commission to
sell tickets, the person must be licensed as a sales agent by the
commission.
(b) The executive director may establish a provisional license
or other classes of licenses necessary to regulate and administer
the quantity and type of lottery games provided at each licensed
location.
(c) The director shall attempt to license minority businesses as
sales agents in at least 20 percent of the licenses issued.
Implementation of this subsection must be consistent with
Sections 466.152-466.154 and the rest of this section.
(d) The director may license as a sales agent each person the
director believes will best serve the public convenience. The
director may not issue a license to a person to engage in
business exclusively as a sales agent. A license may not be
transferred or assigned to any other person or location.
(e) The director may issue a license to a person only if the
director finds that the person's experience, character, and
general fitness are such that the person's participation as a
sales agent will not detract from the integrity, security,
honesty, and fairness of the operation of the lottery.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.18,
eff. Sept. 1, 1995.
Sec. 466.152. LICENSE APPLICATION; FEE. (a) An applicant for a
license under this subchapter must apply to the division under
rules adopted by the commission, provide information necessary to
determine the applicant's eligibility for a license under Section
466.155, and provide other information considered necessary by
the commission.
(b) The applicant must include an application fee with each
application. The director shall set the application fee in an
amount that is at least sufficient to cover the costs incurred by
the division and by the Department of Public Safety to process
the application. The director shall determine from information
provided by the department the amount required for costs incurred
by the department and shall allocate those amounts to the
department at least monthly. If the director denies an
application for a license based on a factor listed in Section
466.154, the director shall refund one-half of the application
fee to the applicant. If the director denies an application based
on another factor, the director may not refund any part of the
application fee.
(c) Applications for licenses must be available for public
inspection during regular office hours.
(d) A separate license is required for each location at which
tickets are to be sold. A person who desires to operate more than
one location to sell tickets must submit a separate application
for each location.
(e) Fees collected under this section shall be deposited in the
state treasury to the credit of the state lottery account.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.19,
eff. Sept. 1, 1995.
Sec. 466.153. CHANGE IN APPLICATION INFORMATION. (a) Except as
provided by Subsection (b), an applicant or sales agent shall
notify the director of any change in the information in the
applicant's or sales agent's most recent application for a
license or renewal of a license. The applicant or sales agent
shall notify the director of the change in the information not
later than the 10th day after the date of the change.
(b) A corporate applicant or sales agent is not required to
notify the director under Subsection (a) of a transfer of less
than 10 percent of the corporate stock unless the transfer
results in a shareholder who previously held 10 percent or less
of the stock holding more than 10 percent of the stock.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993.
Sec. 466.154. RULES. The commission shall adopt rules under
which, before issuing a license to an applicant, the director
shall consider:
(1) the financial responsibility and security of the applicant
and the business or activity in which the applicant is engaged;
(2) the public accessibility of the applicant's place of
business or activity;
(3) the sufficiency of existing sales agents to serve the public
convenience;
(4) whether individuals under 18 years of age constitute a
majority of the applicant's customers or as customers provide a
majority of the applicant's sales volume;
(5) the volume of expected sales; and
(6) any other factor that the director considers appropriate.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.20,
eff. Sept. 1, 1995.
Sec. 466.155. DENIAL OF APPLICATION OR SUSPENSION OR REVOCATION
OF LICENSE. (a) After a hearing, the director shall deny an
application for a license or the commission shall suspend or
revoke a license if the director or 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 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:
(A) delinquent in the payment of a tax or other money collected
by the comptroller, the Texas Workforce Commission, or the Texas
Alcoholic Beverage Commission;
(B) in default on a loan made under Chapter 52, Education Code;
or
(C) in default on a loan guaranteed under Chapter 57, Education
Code;
(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 beer
retailer's permit, mixed beverage permit, mixed beverage late
hours permit, private club registration permit, or private club
late hours permit issued under Chapter 25, 28, 29, 32, or 33,
Alcoholic Beverage Code; or
(5) has violated this chapter or a rule adopted under this
chapter.
(b) If the director proposes to deny an application for a
license or the 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 commission's
records. A notice must be served or mailed not later than the
20th day before the date of the hearing. The commission shall
provide for a formal administrative hearings process.
(c) At a hearing, an applicant or sales agent must show by a
preponderance of the evidence why the application should not be
denied or the license suspended or revoked.
(d) The director shall give an applicant or sales agent written
notice of a denial of an application or a suspension or
revocation of a license.
(e) The director may not issue a license to a person who has
previously had a license under this chapter revoked unless the
director is satisfied the person will comply with this chapter
and the rules adopted under this chapter. The director may
prescribe the terms under which a suspended license will be
reissued.
(f) The director may not issue a license to an applicant who
fails to certify to the director the applicant's compliance with
the federal Americans with Disabilities Act of 1990 (42 U.S.C.
Section 12101 et seq.).
(g) For purposes of Subsection (a)(3), the comptroller, Texas
Workforce Commission, Texas Alcoholic Beverage Commission, Texas
Higher Education Coordinating Board, and Texas Guaranteed Student
Loan Corporation shall each provide the executive director with a
report of persons who have been finally determined to be
delinquent in the payment of any money owed to or collected by
that agency. The commission shall adopt rules regarding the form
and frequency of reports under this subsection.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.21,
eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 696, Sec. 1, eff.
Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1275, Sec. 51, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 394, Sec. 1, eff. Sept.
1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 14.760, eff. Sept.
1, 2001.
Sec. 466.156. BOND; INSURANCE. (a) Each sales agent shall post
a cash bond, surety bond, letter of credit, certificate of
deposit, or other security approved by the executive director,
including the contribution of cash to a pooled bond fund
established by the executive director to protect the state from
possible losses. The amount of the security shall be determined
by the executive director and must reflect the possible losses to
the state from the operation of the sales agent. The total amount
retained in a pooled bond fund established under this subsection
may not exceed $5 million.
(b) The executive director may also require a sales agent to
maintain insurance if necessary to protect the interests of the
state.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.22,
eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 458, Sec. 1, eff.
Sept. 1, 1999.
Sec. 466.157. DISPLAY OF LICENSE. As prescribed by rule, each
sales agent shall prominently display the license in each place
of business or activity at which the sales agent sells tickets.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.22,
eff. Sept. 1, 1995.
Sec. 466.158. EXPIRATION OF LICENSE; RENEWAL. (a) Unless
suspended or revoked, a license expires on the date specified in
the license, which may not be later than the second anniversary
of its date of issuance.
(b) The commission shall adopt rules for the renewal of
licenses. The director shall set the fee for a renewal of a
license in an amount at least sufficient to cover the cost of
processing the renewal.
(c) A sales agent must file a renewal application and pay the
renewal fee before the sales agent's license expires.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.23,
eff. Sept. 1, 1995.
Sec. 466.159. DEATH, DISSOLUTION, OR BANKRUPTCY OF SALES AGENT.
(a) A license issued under this chapter expires on:
(1) the death of a sales agent who is an individual;
(2) the dissolution of a sales agent that is not an individual;
or
(3) the bankruptcy or receivership of a sales agent.
(b) If a license expires under Subsection (a) and the sales
agent's successor in interest desires to operate the sales
agency, the successor shall file an application for an extended
license not later than the 30th day after the date the license
expired. The application must state the basis for the applicant's
claim to be the successor in interest to the sales agent and must
contain a certification that the applicant would be eligible for
a license under Section 466.155. The director shall permit a
qualified applicant to operate under an extended license for not
more than one year or until a new license is issued to the
applicant, whichever occurs first.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993.
Sec. 466.160. SUMMARY SUSPENSION OF LICENSE. (a) The
commission may suspend a sales agent's license summarily without
notice or hearing if the 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 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 commission may summarily suspend a sales agent's license
if proceedings for a preliminary hearing before the commission or
the commission's representative 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.
(c) At the preliminary hearing, the sales agent must show cause
why the license should not remain suspended pending a final
hearing on suspension or revocation. Chapter 2001 does not apply
in the administration and enforcement of the summary suspension
of a license under this section. The rules governing a hearing on
any other license suspension or revocation under this chapter
govern a final administrative hearing under this subsection.
(d) To initiate a proceeding to summarily suspend a sales
agent's license, the 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 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 commission.
If notice is served by mail, the sales agent shall immediately
return the license to the commission. If the sales agent uses an
on-line electronic terminal to sell tickets, the director or a
lottery operator on the instructions of the director may
terminate the connection of the terminal to the commission's
lottery computer at the time:
(1) the proceeding to summarily suspend the license is
initiated; or
(2) the 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).
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(50),
6.24, eff. Sept. 1, 1995.
Sec. 466.161. IMMUNITY; CIVIL ACTIONS. (a) A sales agent
acting in good faith is immune from civil liability for an act or
omission within the course and scope of the agent's license under
this chapter.
(b) This section does not waive any immunity of the commission
or this state.
(c) This section does not create a cause of action against this
state, the commission, a commission employee, or a sales agent.
(d) The immunity provided by Subsection (a) does not apply to a
cause of action for personal injury or wrongful death.
Added by Acts 2005, 79th Leg., Ch.
713, Sec. 1, eff. June 17, 2005.
SUBCHAPTER E. CRIMINAL HISTORY INVESTIGATIONS
Sec. 466.201. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION.
(a) The 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
commission in connection with the procurement of goods or
services by the 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 commission to supply goods or services to the
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 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 commission.
(c) Not later than the first anniversary after the date of each
renewal, the 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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.25,
eff. Sept. 1, 1995.
Sec. 466.202. FINGERPRINTS. (a) The executive director may
discharge from employment an employee of the 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 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 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.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.26,
eff. Sept. 1, 1995.
Sec. 466.203. DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS OF
INVESTIGATION. (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 for
the actual cost of an investigation.
(b) The executive director may require a person who is subject
to investigation to pay all costs of the investigation and to
provide any information, including fingerprints, necessary to
carry out the investigation or facilitate access to state or
federal criminal history record information. Payments made to the
executive director under this subsection shall be deposited in
the general revenue fund and may be used to reimburse the
Department of Public Safety for the actual costs 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 shall notify the executive director
of any change in information provided to the executive director
when the department learns of the change.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.27,
eff. Sept. 1, 1995.
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 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
commission in connection with the procurement of goods or
services by the 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 commission to supply goods or services to the
commission.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.27,
eff. Sept. 1, 1995.
Sec. 466.205. CONFIDENTIAL INFORMATION. (a) All information
received by the executive director from the Internal Revenue
Service is confidential and may only be used as provided by the
contract between the comptroller and the Internal Revenue Service
under which the information was obtained.
(b) The commission shall adopt rules governing the custody and
use of criminal history record information obtained under this
subchapter. The comptroller shall adopt necessary rules
governing the custody and use of information obtained from the
Internal Revenue Service under this subchapter.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.28,
eff. Sept. 1, 1995.
SUBCHAPTER F. REGULATION OF GAMES
Sec. 466.251. TICKETS. (a) The executive director shall
prescribe the form of tickets.
(b) Repealed by Acts 2003, 78th Leg., ch. 198, Sec. 2.72(b).
(c) The overall estimated odds of winning a prize in a
particular lottery game must be printed on each ticket and
prominently displayed in association with the sale of lottery
products. The estimate must be based on reasonable projections
and past experience.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.29,
eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 198, Sec. 2.72(b),
eff. Sept. 1, 2003.
Sec. 466.252. PURCHASE OF TICKET AGREEMENT TO ABIDE BY RULES.
(a) By purchasing a ticket in a particular lottery game, a
player agrees to abide by and be bound by the commission's rules,
including the rules applicable to the particular lottery game
involved. The player also acknowledges that the determination of
whether the player is a valid winner is subject to:
(1) the commission's rules and claims procedures, including
those developed for the particular lottery game involved; and
(2) any validation tests established by the commission for the
particular lottery game involved.
(b) If the lottery uses tickets, an abbreviated form of the
rules or a reference to the rules may appear on the tickets.
Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.
30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.30,
eff. Sept. 1, 1995.
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 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 leasin