SB 2402

relating to the continuation and functions of the Texas Lottery
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 466.3051(a), Government Code, is amended
(a)  A sales agent or an employee of a sales agent commits an
offense if with criminal negligence the person [intentionally or
knowingly] sells or offers to sell a ticket to an individual that
the person knows is younger than 18 years of age.
SECTION 2.  Section 467.002, Government Code, is amended to
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, 2037 [2025].
SECTION 3.  Subchapter A, Chapter 467, Government Code, is
amended by adding Section 467.003 to read as follows:
Sec. 467.003.  LIMITED-SCOPE SUNSET REVIEW OF COMMISSION.
(a)  Separate from the review of the commission required under
Section 467.002, the commission is subject to a limited-scope
review under Chapter 325 (Texas Sunset Act) of the commission's
compliance with the statutory changes enacted by the 89th
Legislature and the management actions adopted by the Sunset
Advisory Commission as part of its review of state agencies
scheduled to be abolished in 2025.  The limited-scope review
required under this section must be completed before the regular
session of the 91st Legislature is convened.
(b)  This section expires September 1, 2029.
SECTION 4.  Section 467.0255, Government Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
(b)  The training program must provide the person with
(1)  the law governing [legislation that created the]
(2)  the programs, functions, rules, and budget of the
(3)  the scope of and limitations on the rulemaking
(4)  the results of the most recent formal audit of the
(5) [(4)]  the requirements of:
(A)  laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
(B)  other laws applicable to members of a state
policy-making body in performing their duties; and
(6) [(5)]  any applicable ethics policies adopted by
the commission or the Texas Ethics Commission.
(d)  The executive director shall create a training manual
that includes the information required by Subsection (b).  The
executive director shall distribute a copy of the training manual
annually to each member of the commission.  Each member of the
commission shall sign and submit to the executive director a
statement acknowledging the member received and has reviewed the
SECTION 5.  Section 467.033, Government Code, is amended to
Sec. 467.033.  DIVISION DIRECTORS.  (a)  The executive
director shall employ a lottery director to oversee the lottery
[each] division.  The lottery [A division] director serves at the
will of the executive director and is specifically exempted from
(b)  The commission shall employ a bingo director to oversee
the bingo division as described by Section 2001.052, Occupations
Code.  The bingo director serves at the will of the commission and
is specifically exempted from Chapter 654.
SECTION 6.  Section 467.101, Government Code, is amended by
adding Subsections (d), (e), and (f) to read as follows:
(d)  The commission shall establish subcommittees of the
commission to improve opportunities for commission members to
engage commission personnel and oversee policy development.  The
subcommittees at a minimum must include:
(e)  The commission by rule shall establish a formal
(1)  resolving questions regarding the commission's
statutory and rulemaking authority; and
(2)  addressing the commission's approach to statutory
(f)  The procedure established under Subsection (e) must at a
minimum provide a process for the commission to:
(1)  request an opinion from the attorney general; and
(2)  present questions regarding the commission's
statutory and rulemaking authority to the legislature through the
report required under Section 467.113.
SECTION 7.  Subchapter C, Chapter 467, Government Code, is
amended by adding Sections 467.112 and 467.113 to read as follows:
Sec. 467.112.  LOTTERY ADVISORY COMMITTEE.  (a)  The
commission shall establish a lottery advisory committee to provide
external expertise on the lottery.  The commission shall appoint to
the advisory committee members who represent a balance of
interests, including representatives of:
(3)  interest groups with divergent viewpoints on the
lottery and lottery operations; and
(4)  entities associated with or benefiting from the
lottery's contributions to this state.
(b)  A lottery advisory committee member serves at the
(c)  A lottery advisory committee member is not entitled to
receive compensation for serving as a member.  A member is entitled
to reimbursement for reasonable expenses incurred in performing
(d)  The lottery advisory committee shall:
(1)  advise the commission on the needs and problems of
(2)  comment on proposed lottery rules during
development and before final adoption unless an emergency requires
immediate action by the commission;
(3)  annually report to the commission on the advisory
(4)  annually brief the commission on advancements and
challenges in this state's lottery industry; and
(5)  perform other duties as determined by the
(e)  The commission shall adopt rules to govern the lottery
advisory committee, including rules on:
(1)  member composition, appointment procedures, and
(2)  quorum requirements for advisory committee
(3)  additional representation requirements for and
qualifications of advisory committee members, including experience
(4)  any necessary training requirements for advisory
(5)  the method for the public to provide to the
commission comments on issues the advisory committee considers.
(f)  The lottery advisory committee shall meet quarterly or
(g)  The commission may not adopt a rule that restricts the
lottery advisory committee from discussing any lottery-related
Sec. 467.113.  ANNUAL REPORT.  (a)  The commission annually
shall submit a report to the governor and the legislature that:
(1)  includes a summary of lottery revenue, prize
disbursements, and other expenses for the state fiscal year
(2)  includes a comprehensive business plan to guide
the commission's major initiatives that contains:
(A)  specific goals for the commission; and
(i)  the commission's overall performance;
(ii)  the effectiveness of specific
commission programs and initiatives;
(iii)  the efficiency of commission
(iv)  the amount of lottery revenue
generated for state purposes other than the payment of prizes; and
(v)  the factors affecting the amount of
lottery revenue received and disbursed, including ticket sales and
(3)  addresses the trends and issues related to
violations of state laws under the commission's jurisdiction
identified in complaints under Section 467.111(e) and identified
through an inspection, audit, or other means, including the
regulation of lottery operations under Chapter 466 and of bingo
under Chapter 2001, Occupations Code;
(4)  includes for the preceding calendar year
charitable bingo information on:
(A)  the total amount reported by licensed
authorized organizations of adjusted gross receipts from bingo
operations under Chapter 2001, Occupations Code;
(B)  the total amount reported by licensed
authorized organizations of net proceeds from bingo operations
under Chapter 2001, Occupations Code; and
(C)  a comparison of the amounts reported under
Paragraphs (A) and (B), including the percentage the net proceeds
represents compared to the adjusted gross receipts; and
(5)  provides biennial recommendations to the
legislature on emerging trends, technological advancements,
regulatory developments, and market dynamics affecting the lottery
(b)  For purposes of Subsection (a)(4):
(1)  the term "adjusted gross receipts" means the
amount remaining after deducting prizes paid but excluding prize
fees collected from bingo players; and
(2)  the commission shall determine the total amount of
net proceeds in a manner that does not reduce gross receipts by the
amount of rent paid for the rental of bingo premises by a licensed
authorized organization to another licensed authorized
organization if the other organization pays rent for the premises
to a licensed commercial lessor.
SECTION 8.  Section 2001.052, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
(b)  The director of bingo operations shall administer the
bingo division under the direction of the executive director of the
(c)  At each regular commission meeting, the director of
bingo operations shall report to the commission on bingo operations
SECTION 9.  Section 2001.057, Occupations Code, is amended
by amending Subsections (a), (e), (f), and (g) and adding
Subsection (h) to read as follows:
(a)  The commission shall [may] appoint a bingo advisory
committee consisting of nine members.  The commission shall appoint
members representing a balance of interests including
(2)  charities that operate bingo games; and
(3)  commercial and charity lessors that participate in
(e)  The bingo advisory committee shall [may]:
(1)  advise the commission on the needs and problems of
(2)  comment on rules involving bingo during their
development and before final adoption unless an emergency requires
immediate action by the commission;
(3)  report annually to the commission on the
(4)  annually brief the commission on advancements and
challenges in this state's bingo industry; and
(5)  perform other duties as determined by the
(f)  The bingo advisory committee shall [may] meet quarterly
or at the commission's request.
(g)  The commission shall [may] adopt rules:
(1)  to govern the operations of the bingo advisory
(2)  to prohibit the committee's involvement in
(h)  The commission may not adopt a rule that prohibits or
restricts the bingo advisory committee from discussing any
bingo-related topic.  This subsection may not be construed to
require action by the commission on each item submitted by the
committee or otherwise alter the commission's decision-making
SECTION 10.  Section 2001.059(b), Occupations Code, is
(b)  The commission shall respond to a request under
Subsection (a) not later than the later of the second commission
meeting or the 60th day after the date a request is received, unless
the commission determines that the request does not contain
sufficient facts to provide an answer on which the requestor may
rely.  In that event, the commission shall request additional
information from the requestor not later than the 10th day after the
date the request is received.  If the commission requests
additional information, the commission shall respond to the request
not later than the later of the second commission meeting or the
60th day after the date additional information is received pursuant
to the request for additional information.
SECTION 11.  Section 2001.152, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
(b)  Notwithstanding Subsection (a) and subject to
Subsection (c), a person who was a licensed commercial lessor on
June 10, 1989, whose license has been in effect continuously since
that date, and who is otherwise eligible for the license may renew
(c)  The commission may place an administrative hold on the
license of a licensed commercial lessor described by Subsection (b)
for a period the commission determines not to exceed 10 years.  If
the administrative hold on the license remains on the last day of
(1)  the commission shall remove the administrative
(2)  the lessor is not eligible to renew the license as
a continuous license holder under Subsection (b).
SECTION 12.  Section 2001.557, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c)  In developing and implementing a policy or procedure
under Subsection (b), the commission shall consult with the bingo
advisory committee established under Section 2001.057 to
collaboratively define and implement specific fiscal
accountability criteria for inspections of premises.
SECTION 13.  Section 2001.560(c-1), Occupations Code, is
(c-1)  The commission by rule shall develop a policy for
auditing license holders.  The bingo division shall use audit risk
analysis procedures established by the commission to:
(1)  annually identify the [which] license holders
[are] most at risk of violating this chapter or rules adopted under
this chapter, including consideration of license holder compliance
history in the identification; and
(2)  develop a plan for auditing the identified license
(A)  a schedule for the audits of the identified
(B)  procedures to annually update the plan based
on successive risk analyses; and
(C)  a completion date for each audit that is not
later than the fifth anniversary of the date the license holder was
identified as a candidate for audit.
SECTION 14.  The following provisions are repealed:
(1)  Section 466.016, Government Code;
(2)  Section 466.028, Government Code;
(3)  Section 467.111(f), Government Code;
(4)  Section 2001.059(f), Occupations Code; and
(5)  Section 2001.060, Occupations Code.
SECTION 15.  (a)  Except as provided by Subsection (b) of
this section, Section 467.0255, Government Code, as amended by this
Act, applies to a member of the Texas Lottery Commission appointed
before, on, or after the effective date of this Act.
(b)  A member of the Texas Lottery Commission who, before the
effective date of this Act, completed the training program required
by Section 467.0255, Government Code, as that law existed before
the effective date of this Act, is only required to complete
additional training on the subjects added by this Act to the
training program required by Section 467.0255, Government Code.  A
member described by this subsection may not vote, deliberate, or be
counted as a member in attendance at a meeting of the Texas Lottery
Commission held on or after December 1, 2025, until the member
completes the additional training.
SECTION 16.  (a)  The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act.  An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose.  For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
(b)  Section 2001.152, Occupations Code, as amended by this
Act, applies to a license placed on an administrative hold on or
after the effective date of this Act.
SECTION 17.  As soon as practicable after the effective date
of this Act, the Texas Lottery Commission shall:
(1)  establish audit, legal, and planning
subcommittees as required by Section 467.101(d), Government Code,
(2)  appoint members to the lottery advisory committee
and adopt rules to govern the operations of the committee as
required by Section 467.112, Government Code, as added by this Act;
(3)  adopt rules necessary to implement this Act.
SECTION 18.  This Act takes effect September 1, 2025.