CHAPTER 467. TEXAS LOTTERY COMMISSION

GOVERNMENT CODE

TITLE 4. EXECUTIVE BRANCH

SUBTITLE E. OTHER EXECUTIVE AGENCIES AND PROGRAMS

CHAPTER 467. TEXAS LOTTERY COMMISSION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 467.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Texas Lottery Commission.

(2) "Executive director" means the executive director of the

Texas Lottery Commission.

(3) "Communicate directly with" has the meaning assigned by

Section 305.002, Government Code.

(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.

(5) "Legislation" has the meaning assigned by Section 305.002.

(6) "Member of the legislative branch" has the meaning assigned

by Section 305.002.

(7) "Participated" means to have taken action as an officer or

employee through decision, approval, disapproval, recommendation,

giving advice, or similar action.

(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.

(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.

(10) "Political committee" has the meaning assigned by Section

251.001, Election Code.

(11) "Political contribution" has the meaning assigned by

Section 251.001, Election Code.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1441, Sec. 1, eff.

Sept. 1, 1997.

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

subject to Chapter 325 (Texas Sunset Act). Unless continued in

existence as provided by that chapter, the commission is

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

2001, Occupations Code, expire September 1, 2013.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 1112, Sec. 1.03(a),

eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1227, Sec. 3.08, eff. September 1, 2005.

Acts 2009, 81st Leg., 1st C.S., Ch.

2, Sec. 2.03, eff. July 10, 2009.

SUBCHAPTER B. COMMISSION

Sec. 467.021. MEMBERSHIP. (a) The commission is composed of

three members appointed by the governor with the advice and

consent of the senate.

(b) In making appointments to the commission, the governor shall

strive to achieve representation by all the population groups of

the state with regard to economic status, sex, race, and

ethnicity.

(c) One member must have experience in the bingo industry.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.022. TERM OF OFFICE. Members hold office for staggered

terms of six years with one member's term expiring February 1 of

each odd-numbered year.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.023. RESIDENCE REQUIREMENT. An individual is not

eligible to be a member of the commission unless the individual

has been a resident of this state for at least 10 consecutive

years immediately before appointment.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.024. ELIGIBILITY. (a) An individual is not eligible

to be an appointed member of the commission if the individual:

(1) owns or controls, directly or indirectly, more than a 10

percent interest in a business entity or other organization

regulated by the commission or receiving funds from the

commission;

(2) is employed by or participates in the management of a

business entity or other organization regulated by the commission

or receiving funds from the commission;

(3) uses or receives a substantial amount of tangible goods,

services, or funds from the commission, other than compensation

or reimbursement authorized by law for commission membership,

attendance, or expenses;

(4) is an officer, employee, or paid consultant of a Texas trade

association in the field of bingo or lottery;

(5) is required to register as a lobbyist under Chapter 305

because of the person's activities for compensation on behalf of

a profession related to the operation of the commission;

(6) is married to an individual described by Subdivision

(1)-(5);

(7) has been convicted of a felony or of any crime involving

moral turpitude; or

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

(b) In this section, "Texas trade association" means a

nonprofit, cooperative, and voluntarily joined association of

business or professional competitors in this state designed to

assist its members and its industry or profession in dealing with

mutual business or professional problems and in promoting their

common interest.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 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.

(c) Repealed by Acts 1997, 75th Leg., ch. 1441, Sec. 5, eff.

Sept. 1, 1997.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.49, eff.

Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1441, Sec. 5, eff. Sept.

1, 1997.

Sec. 467.026. REMOVAL OF COMMISSION MEMBER. (a) The governor

may remove a commission member if the member:

(1) does not have at the time of appointment the qualifications

required for appointment to the commission;

(2) does not maintain during service on the commission the

qualifications required for appointment to the commission;

(3) violates a prohibition established by Section 467.025;

(4) cannot discharge the member's duties for a substantial part

of the term for which the member is appointed because of illness

or disability; or

(5) is absent from more than half of the regularly scheduled

commission meetings that the member is eligible to attend during

a calendar year unless the absence is excused by majority vote of

the commission.

(b) The validity of an action of the commission is not affected

by the fact that it is taken when a ground for removal of a

commission member exists.

(c) If the presiding officer has knowledge that a potential

ground for removal exists, the presiding officer shall notify the

governor.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.027. COMPENSATION AND EXPENSES. (a) A commission

member is not entitled to compensation for serving on the

commission.

(b) A commission member is entitled to reimbursement for actual

and necessary expenses incurred in performing the member's

duties, subject to any applicable limitation in the General

Appropriations Act.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.028. OFFICES. The commission shall maintain its

general office in the city of Austin. The commission may also

establish branch offices.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.029. PRESIDING OFFICER. The governor shall designate

one member of the commission as presiding officer of the

commission to serve in that capacity at the pleasure of the

governor.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.030. MEETINGS. (a) The commission shall hold at least

six regular meetings each year on dates fixed by the commission.

The commission may meet at other times at the call of the

presiding officer or as provided by commission rule.

(b) Section 551.002 does not apply to a closed meeting of the

commission relating to the negotiation of a lottery operator's

contract if the commission determines, in writing, that an open

meeting would have a detrimental effect on the commission's

position in the negotiations.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 1242, Sec. 1, eff.

June 15, 2001.

Sec. 467.031. DIVISIONS. The commission shall establish

separate divisions to oversee bingo and the state lottery.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.032. EXECUTIVE DIRECTOR. (a) The commission shall

employ an executive director to administer this chapter.

(b) The executive director holds office at the will of the

commission and is specifically exempted from Chapter 654.

(c) The executive director or an acting executive director shall

be appointed by the commission no later than November 1, 1993.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.50, eff.

Sept. 1, 1995.

Sec. 467.033. DIVISION DIRECTORS. The executive director shall

employ a director to oversee each division. A division director

serves at the will of the executive director and is specifically

exempted from Chapter 654.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.51, eff.

Sept. 1, 1995.

Sec. 467.034. EMPLOYEES. The executive director shall employ

other personnel necessary to administer the laws under the

commission's jurisdiction. Commission employees serve at the will

of the executive director.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.035. RESTRICTIONS ON EMPLOYMENT. (a) The commission

may not employ or continue to employ a person who owns a

financial interest in:

(1) a bingo commercial lessor, bingo distributor, or bingo

manufacturer; or

(2) a lottery sales agency or a lottery operator.

(b) The commission may not employ or continue to employ a person

who 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 who is subject to a disqualification prescribed by

Subsection (a).

(c) In employing the executive director and other employees, the

commission shall strive to reflect the diversity of the

population of the state as regards race, color, handicap, sex,

religion, age, and national origin.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 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.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 467.101. POWERS AND DUTIES OF COMMISSION. (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 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 of this code.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.52, eff.

Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1420, Sec. 14.762, eff.

Sept. 1, 2001.

Sec. 467.102. RULES. The commission may adopt rules for the

enforcement and administration of this chapter and the laws under

the commission's jurisdiction.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.103. DUTIES OF EXECUTIVE DIRECTOR. (a) The executive

director shall perform all duties required by the commission to

administer this chapter and the laws under the commission's

jurisdiction. The executive director may not hold other

employment.

(b) The executive director may create, abolish, transfer, and

consolidate bureaus and other units that are part of the

commission and that are not expressly established by law as the

executive director determines to be necessary for the efficient

operation of the commission.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.104. RECORDS. (a) Except as otherwise provided by

law, all commission records are subject to public inspection in

accordance with Chapter 552.

(b) The executive director shall keep the records of the

commission.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 792, Sec. 2, eff.

Sept. 1, 1997.

Sec. 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.

Added by Acts 1993, 73rd Leg., ch. 284, Sec. 1, eff. Sept. 1,

1993.

Sec. 467.106. GIFT OR POLITICAL CONTRIBUTION TO OFFICER OR

EMPLOYEE. (a) A commission member, the executive director, or

an employee of the 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 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.

Added by Acts 1997, 75th Leg., ch. 1441, Sec. 2, eff. Sept. 1,

1997.

Sec. 467.107. GIFT OR POLITICAL CONTRIBUTION TO FORMER OFFICER

OR EMPLOYEE. (a) A former commission member, former executive

director, or former employee of the commission may not, before

the second anniversary of the date that the person's service in

office or employment with the 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 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.

Added by Acts 1997, 75th Leg., ch. 1441, Sec. 3, eff. Sept. 1,

1997.

Sec. 467.108. REPRESENTATION BY FORMER OFFICER OR EMPLOYEE. (a)

A former commission member, 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

commission before the second anniversary of the date that the

person's service in office or employment with the 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 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 commission ceases.

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

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

Added by Acts 1997, 75th Leg., ch. 1441, Sec. 4, eff. Sept. 1,

1997.