SB 1988

relating to the abolishment of the state lottery.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1.  ABOLISHMENT OF STATE LOTTERY
SECTION 1.01.  Section 467.002, Government Code, is amended
Sec. 467.002.  APPLICATION OF SUNSET ACT.  The commission is
subject to review under Chapter 325 (Texas Sunset Act).  Unless
continued in existence as provided by that chapter, the commission
is abolished and this chapter[, Chapter 466 of this code,] and
Chapter 2001, Occupations Code, expire September 1, 2029.
SECTION 1.02.  Sections 467.024(a) and (c), Government Code,
are amended to read as follows:
(a)  An individual is not eligible to be an appointed member
of the commission if the individual:
(1)  is registered, certified, or licensed by a
regulatory agency in the field of bingo [or lottery];
(2)  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
(3)  is employed by or participates in the management
of a business entity or other organization regulated by or
receiving funds from the commission;
(4)  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;
(5)  is an officer, employee, or paid consultant of a
Texas trade association in the field of bingo [or lottery];
(6)  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;
(7)  is married to an individual described by
(8)  has been convicted of a felony or of any crime
(9)  is not a citizen of the United States.
(c)  A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), if:
(1)  the person is an officer, employee, or paid
consultant of a Texas trade association in the field of bingo [or
(2)  the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of bingo [or
SECTION 1.03.  Section 467.025(a), Government Code, is
(a)  A commission member may not:
(1)  accept any employment or remuneration from [:
[(A)  a person that has a significant financial
[(B)]  a bingo commercial lessor, bingo
distributor, or bingo manufacturer;
(2)  play any [lottery or] bingo game conducted in this
(3)  accept or be entitled to accept any part of the
winnings to be paid from a [lottery or] bingo game conducted in this
(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.
SECTION 1.04.  Section 467.031, Government Code, is amended
Sec. 467.031.  BINGO DIVISION [DIVISIONS].  The commission
shall establish a division [separate divisions] to oversee bingo
SECTION 1.05.  Section 467.035(a), Government Code, is
(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
[(2)  a lottery sales agency or a lottery operator].
SECTION 1.06.  Sections 467.101(a) and (c), Government Code,
are amended to read as follows:
(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].
(c)  The commission also has the powers and duties granted
[(1)]  Chapter 2001, Occupations Code[; and
[(2)  Chapter 466 of this code].
SECTION 1.07.  Section 467.108(a), Government Code, is
(a)  A former commission member, former executive director,
[(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
[(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
SECTION 1.08.  Section 467.111(f), Government Code, is
(f)  The commission shall prepare a report on the trends and
issues identified under Subsection (e) and make the report
available to the public.  The commission shall address the
identified trends and issues, including trends and issues related
to the regulation [of lottery operations under Chapter 466 and] of
bingo under Chapter 2001, Occupations Code.
SECTION 1.09.  The following provisions of the Government
(3)  Sections 467.106 and 467.107.
SECTION 1.10.  (a)  Subject to Subsection (b) of this
(1)  the lottery division of the Texas Lottery
Commission is abolished and all division powers and duties related
to lottery prize payments, penalties, enforcement provisions, and
any necessary continued operations under Chapter 466, Government
Code, as it existed immediately before the effective date of this
Act, and other law are transferred to the Texas Lottery Commission;
(2)  all obligations, rights, contracts, bonds,
appropriations, records, and property of the lottery division are
(3)  a rule, policy, procedure, or decision related to
lottery prize payments, penalties, enforcement provisions, and any
necessary continued operations of the lottery division continues in
effect until superseded by a later act of the commission; and
(4)  a reference in law to the lottery division means
(b)  Any lottery division funds that on January 1, 2026, are
allocated to specific lottery operations shall be deposited in the
state treasury and may be used only for Foundation School Program
SECTION 1.11.  (a)  Not later than October 1, 2025, the Texas
Lottery Commission shall adopt a comprehensive transition plan for
the transfer described by Section 1.10 of this article and identify
any essential lottery division personnel necessary for the
continued payment of lottery prizes and assessment and enforcement
(b)  This section takes effect September 1, 2025.
SECTION 1.12.  (a) Notwithstanding the repeal by this Act of
Chapter 466, Government Code, that chapter as it existed
immediately before the effective date of this Act continues in
effect for the payment of lottery prizes and the assessment and
enforcement of penalties until each lottery prize and installment
prize payment is made to the lottery prize winner entitled to the
payment and each penalty assessment is finally determined as
required by that chapter and rules adopted under that chapter as
they existed immediately before the effective date of this Act.
(b)  On or after the effective date of this Act, a lottery
sales agent may not sell or offer to sell a lottery ticket for a
lottery game authorized under Chapter 466, Government Code, as
SECTION 1.13.  The changes in law made by this article apply
to an offense committed on or after the effective date of this Act.
An offense committed before that date is governed by the law as it
existed on the date the offense was committed, and the former law is
continued in effect for that purpose.
ARTICLE 2.  CONFORMING AMENDMENTS
SECTION 2.01.  Article 2A.001, Code of Criminal Procedure,
is amended to conform to Section 2, Chapter 624 (H.B. 4372), Section
1, Chapter 870 (H.B. 3981), Section 1, Chapter 950 (S.B. 1727), and
Section 1, Chapter 984 (S.B. 2612), Acts of the 88th Legislature,
Regular Session, 2023, and further amended to read as follows:
Art. 2A.001.  PEACE OFFICERS GENERALLY.  The following are
(1)  a sheriff, a sheriff's deputy, or a reserve deputy
sheriff who holds a permanent peace officer license issued under
Chapter 1701, Occupations Code;
(2)  a constable, a deputy constable, or a reserve
deputy constable who holds a permanent peace officer license issued
under Chapter 1701, Occupations Code;
(3)  a marshal or police officer of a municipality or a
reserve municipal police officer who holds a permanent peace
officer license issued under Chapter 1701, Occupations Code;
(4)  a ranger, officer, or member of the reserve
officer corps commissioned by the Public Safety Commission and the
director of the Department of Public Safety;
(5)  an investigator of a district attorney's, criminal
district attorney's, or county attorney's office;
(6)  a law enforcement agent of the Texas Alcoholic
(7)  a member of an arson investigating unit
commissioned by a municipality, a county, or the state;
(8)  an officer commissioned under Section 37.081 or
37.0818, Education Code, or Subchapter E, Chapter 51, Education
(9)  an officer commissioned by the Texas Facilities
(10)  a law enforcement officer commissioned by the
(11)  an officer commissioned under Chapter 23,
(12)  a municipal park and recreational patrol officer
(13)  a security officer or investigator commissioned
as a peace officer by the comptroller;
(14)  an officer commissioned by a water control and
improvement district under Section 49.216, Water Code;
(15)  an officer commissioned by a board of trustees
under Chapter 54, Transportation Code;
(16)  an investigator commissioned by the Texas Medical
(17)  an officer commissioned by:
(A)  the board of managers of the Dallas County
Hospital District, the Tarrant County Hospital District, the Bexar
County Hospital District, or the El Paso County Hospital District
under Section 281.057, Health and Safety Code;
(B)  the board of directors of the Ector County
Hospital District under Section 1024.117, Special District Local
(C)  the board of directors of the Midland County
Hospital District of Midland County, Texas, under Section 1061.121,
Special District Local Laws Code; or
(D)  the board of hospital managers of the Lubbock
County Hospital District of Lubbock County, Texas, under Section
1053.113, Special District Local Laws Code;
(18)  a county park ranger commissioned under
Subchapter E, Chapter 351, Local Government Code;
(19)  an investigator employed by the Texas Racing
(20)  an officer commissioned under Chapter 554,
(21)  an officer commissioned by the governing body of
a metropolitan rapid transit authority under Section 451.108,
Transportation Code, or a regional transportation authority under
Section 452.110, Transportation Code;
(22)  an investigator commissioned by the attorney
general under Section 402.009, Government Code;
(23)  [a security officer or investigator commissioned
as a peace officer under Chapter 466, Government Code;
[(24)]  an officer appointed by an appellate court
under Subchapter F, Chapter 53, Government Code;
(24) [(25)]  an officer commissioned by the state fire
marshal under Chapter 417, Government Code;
(25) [(26)]  an investigator commissioned by the
commissioner of insurance under Section 701.104, Insurance Code;
(26) [(27)]  an officer appointed by the inspector
general of [apprehension specialist or inspector general
commissioned by] the Texas Juvenile Justice Department [as an
officer] under Section 242.102 [or 243.052], Human Resources Code;
(27) [(28)]  an officer appointed by the inspector
general of the Texas Department of Criminal Justice under Section
(28) [(29)]  an investigator commissioned by the Texas
Commission on Law Enforcement under Section 1701.160, Occupations
(29) [(30)]  a fire marshal or any related officer,
inspector, or investigator commissioned by a county under
Subchapter B, Chapter 352, Local Government Code;
(30) [(31)]  a fire marshal or any officer, inspector,
or investigator commissioned by an emergency services district
under Chapter 775, Health and Safety Code;
(31)  a fire marshal or any officer, inspector, or
investigator of a municipality who holds a permanent peace officer
license issued under Chapter 1701, Occupations Code;
(32)  an officer commissioned by the State Board of
Dental Examiners under Section 254.013, Occupations Code, subject
to the limitations imposed by that section; and
(33)  an Alamo complex ranger commissioned by the
General Land Office under Section 31.0515, Natural Resources Code,
subject to the limitations imposed by that section [investigator
commissioned by the Texas Juvenile Justice Department as an officer
under Section 221.011, Human Resources Code].
SECTION 2.02.  Section 411.108(a-2), Government Code, is
(a-2)  Subject to Sections 411.087[, 466.201,] and
467.036(b) of this code and Section 2001.3025, Occupations Code,
and consistent with the public policy of this state, the Texas
Lottery Commission is entitled to:
(1)  obtain through the Federal Bureau of Investigation
criminal history record information maintained or indexed by that
bureau that pertains to a person described by Subsection [(a) or]
(2)  obtain from the department or any other criminal
justice agency in this state criminal history record information
maintained by the department or that criminal justice agency that
relates to a person described by Subsection [(a) or] (a-1).
SECTION 2.03.  Section 434.017(a), Government Code, is
(a)  The fund for veterans' assistance is a special fund in
the state treasury outside the general revenue fund.  The fund is
(1)  money transferred to the fund at the direction of
(2)  gifts and grants contributed to the fund;
(4)  [money transferred to the fund from proceeds of
the lottery game operated under Section 466.027 or transferred to
the fund under Section 466.408(b);
[(5)]  money deposited to the credit of the fund under
Section 502.1746, Transportation Code;
(5) [(6)]  money deposited to the credit of the fund
under Sections 521.008 and 522.0295, Transportation Code;
(6) [(7)]  money deposited to the credit of the fund
under Section 12.007, Parks and Wildlife Code; and
(7) [(8)]  money deposited to the credit of the fund
SECTION 2.04.  Section 544.0456(c), Government Code, as
effective April 1, 2025, is amended to read as follows:
(c)  On a monthly basis, the commission shall:
(1)  [conduct electronic data matches with the Texas
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
(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
(2) [(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 2.05.  Section 572.003(b), Government Code, is
(1)  the banking commissioner of the Texas Department
of Banking [Banking Commissioner of The Banking Department of
(2)  the administrative director of the Office of Court
Administration of the Texas Judicial System;
(3)  the chief executive of the Office of Public
(4)  the executive director of the State Bar of Texas;
(5)  [the director of the lottery division of the Texas
[(6)  the deputy in charge of the department of
security in the lottery division of the Texas Lottery Commission;
[(7)]  the director of the bingo division of the Texas
(6) [(8)]  the secretary of state.
SECTION 2.06.  Section 2113.102(a), Government Code, is
(a)  A state agency may not use appropriated money to
contract with a person to audit the financial records or accounts of
the agency except as provided by:
(1)  Subsections (b), (c), and (d); and
(2)  [Chapter 466, pertaining to the state lottery;
[(3)]  Chapter 2306, pertaining to the Texas Department
of Housing and Community Affairs[;  and
[(4)  Chapter 361, Transportation Code, pertaining to
the Texas Turnpike Authority division of the Texas Department of
SECTION 2.07.  Section 47.02(c), Penal Code, is amended to
(c)  It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1)  was permitted under Chapter 2001, Occupations
(2)  was permitted under Chapter 2002, Occupations
(3)  was permitted under Chapter 2004, Occupations
(4)  [consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
[(5)]  was permitted under Subtitle A-1, Title 13,
Occupations Code (Texas Racing Act); or
(5) [(6)]  consisted entirely of participation in a
drawing for the opportunity to participate in a hunting, fishing,
or other recreational event conducted by the Parks and Wildlife
SECTION 2.08.  Section 47.09(a), Penal Code, is amended to
(a)  It is a defense to prosecution under this chapter that
(1) [(A)]  Chapter 2001, Occupations Code;
(2) [(B)]  Chapter 2002, Occupations Code;
(3) [(C)]  Chapter 2004, Occupations Code;
(4) [(D)]  Subtitle A-1, Title 13, Occupations Code
(5) [(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
[(C)  the Texas Lottery Commission; or
[(D)  the director of the lottery division of the
SECTION 2.09.  The following provisions are repealed:
(1)  Section 9.406(k), Business & Commerce Code;
(2)  Section 232.0021, Family Code;
(3)  Section 411.108(a), Government Code;
(4)  Section 467.030(b), Government Code;
(5)  Section 2054.007, Government Code; and
(6)  Section 2002.056(c), Occupations Code.
SECTION 2.10.  The changes in law made by this article apply
to an offense committed on or after the effective date of this Act.
An offense committed  before that date is governed by the law as it
existed on the date the offense was committed, and the former law is
continued in effect for that purpose.
ARTICLE 3.  CONFLICT OF LAW; EFFECTIVE DATE
SECTION 3.01.  To the extent of any conflict, this Act
prevails over another Act of the 89th Legislature, Regular Session,
2025, relating to nonsubstantive additions to and corrections in
SECTION 3.02.  This Act takes effect September 1, 2025.