SB 3070

relating to the abolishment of the Texas Lottery Commission and the
transfer of the administration of the state lottery and the
licensing and regulation of charitable bingo to the Texas
Commission of Licensing and Regulation; creating a criminal
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 411.093(a), Government Code, is amended
(a)  The Texas Department of Licensing and Regulation is
entitled to obtain criminal history record information as provided
by Subsection (b) that relates to:
(1)  an applicant for or the holder of:
(A)  a driver education instructor license under
(B)  a license under Chapter 466;
(C)  a license under Chapter 202, Occupations
(D) [(C)]  a license under Chapter 401,
(E) [(D)]  a license under Chapter 402,
(F)  a license under Chapter 2001, Occupations
(G) [(E)]  an instructor license or motorcycle
school license under Chapter 662, Transportation Code;
(A)  an applicant for or the holder of a license
under Chapter 91, Labor Code; or
(B)  a controlling person, as defined by Chapter
91, Labor Code, of an entity described by Paragraph (A); or
(A)  is an applicant for or the holder of a license
under Chapter 455, Occupations Code; or
(B)  has an interest described under Section
455.1525(e), Occupations Code, in an entity described by Paragraph
SECTION 2. Section 411.467(d), Government Code, is amended
(d)  The department shall also send the alert to:
(1)  any appropriate law enforcement agency;
(2)  the Texas Department of Transportation;
(3)  the Texas Department of Licensing and Regulation
(4)  the Independent Bankers Association of Texas.
SECTION 3.  Sections 466.002(1), (3), and (4), Government
Code, are amended to read as follows:
(1)  "Commission" means the Texas [Lottery] Commission
(3)  "Department" or "division [Division]" means the
Texas Department of Licensing and Regulation [lottery division
established by the commission under Chapter 467].
(4)  "Director" or "executive [Executive] director"
means the executive director of the department [commission].
SECTION 4.  Subchapter A, Chapter 466, Government Code, is
amended by adding Section 466.005 to read as follows:
Sec. 466.005.  LIMITED-SCOPE SUNSET REVIEW OF STATE LOTTERY.
The Sunset Advisory Commission shall conduct a limited-scope review
of the state lottery during the state fiscal biennium ending August
31, 2027, in the manner provided by Chapter 325 (Texas Sunset Act).
The review must provide an evaluation and recommendations regarding
the continuation of the state lottery. Unless continued in
existence, the state lottery is abolished and this chapter expires
SECTION 5.  The heading to Section 466.014, Government Code,
Sec. 466.014.  POWERS AND DUTIES OF DEPARTMENT [COMMISSION]
SECTION 6.  Sections 466.014(a) and (d), Government Code,
are amended to read as follows:
(a)  The department [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.
(d)  A contract between the department [division] and a
lottery operator under Subsection (b) must contain a provision
allowing the contract to be terminated without penalty if the
department [division] is abolished.
SECTION 7.  Section 466.015(b), Government Code, is amended
(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
(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 or
facilitating the play of a lottery game by telephone or through an
Internet application or mobile Internet application in violation of
SECTION 8.  Section 466.018, Government Code, is amended to
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
department [commission] or its employees, a sales agent, a lottery
SECTION 9.  Section 466.019, Government Code, is amended to
Sec. 466.019.  ENFORCEMENT.  (a)  The executive director or
designated personnel of the department [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 department
[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
(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
(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 department [commission].
SECTION 10.  Sections 466.020(a) and (d), Government Code,
are amended to read as follows:
(a)  The executive director shall maintain a department of
security within the financial crimes intelligence center
established under Chapter 2312, Occupations Code [in the
commission].  The executive director shall appoint a deputy to
administer the department of security.  The deputy must be
qualified by training and experience in law enforcement or security
to supervise, direct, and administer the activities of the
(d)  The Department of Public Safety, at the department's
[commission's] request, shall perform a full criminal background
investigation of a prospective deputy or investigator of the
department of security.  The department [commission] shall
reimburse the Department of Public Safety for the actual costs of an
SECTION 11.  Section 466.022, Government Code, is amended to
Sec. 466.022.  CONFIDENTIAL INFORMATION.  (a)  Except as
otherwise provided by law, all department [commission] records are
subject to public inspection in accordance with Chapter 552.
(b)  In addition to department [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 department
[commission] designed to ensure the integrity and security of the
(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;
(3)  the street address and telephone number of a prize
winner, if the prize winner has not consented to the release of the
(4)  except as otherwise authorized by Section 466.411,
all personally identifiable information of a natural person who is:
(A)  a lottery prize winner and who has chosen to
remain anonymous under Section 466.411; or
(B)  an owner of a beneficial interest in a legal
entity that is a lottery prize winner and who has chosen to remain
anonymous under Section 466.411.
SECTION 12.  Section 466.023(b), Government Code, is amended
(b)  An investigation report or other document submitted by
the Department of Public Safety to the department [commission]
becomes part of the investigative files of the department
[commission] and is subject to discovery by a person that is the
subject of the investigation report or other document.
SECTION 13.  Section 466.026, Government Code, is amended to
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 department [commission] shall
disseminate Amber Alert information at its retail locations through
SECTION 14.  Sections 466.027(a), (b), (c), and (d),
Government Code, are amended to read as follows:
(a)  The department [commission] shall operate an
instant-ticket lottery game to benefit the fund for veterans'
assistance established by Section 434.017.
(b)  The department [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 department [commission].
(c)  The department [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 department
[Texas Lottery Commission] relating to the marketing and
(d)  The department [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 15.  Section 466.105(b), Government Code, is amended
(b)  Notwithstanding the provisions of Title 2, Utilities
Code, the department [commission] may negotiate rates and execute
contracts with telecommunications service providers for the
interexchange services necessary for the operation of the
lottery.  The department [commission] may acquire transmission
facilities by lease, purchase, or lease-purchase.  The acquisition
of transmission facilities must be done on a competitive bid basis
SECTION 16.  Section 466.106(a), Government Code, is amended
(a)  In all contracts for lottery equipment, supplies,
services, and advertising, the department [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
SECTION 17.  Sections 466.107(a) and (c), Government Code,
are amended to read as follows:
(a)  The executive director and each lottery operator shall
(1)  inform minority businesses of opportunities to:
(A)  provide lottery equipment and supplies to the
(B)  provide services, including advertising, to
the department [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
(7)  require all bidders or contractors, when
appropriate, to include specific plans or arrangements to use
subcontracts with minority businesses.
(c)  The department [commission] shall annually report to
the legislature and the governor on the level of minority business
participation as pertains to both the department's [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.
SECTION 18.  Section 466.108, Government Code, is amended to
Sec. 466.108.  TELEVISION CONTRACTS.  If the drawing or
selection of winning tickets is televised under a contract with the
department [commission], the contract must be awarded by
competitive bid.  The department [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.
SECTION 19.  Section 466.109, Government Code, is amended to
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 department [commission],
may not appear in an advertisement or promotion for the lottery that
is sponsored by the department [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 department [commission].
(b)  In connection with providing security for the lottery,
this section does not prohibit a security officer or investigator
employed by the department [commission] from appearing in a
televised lottery drawing or other promotion for the lottery that
is sponsored by the department [commission].
(c)  Notwithstanding this section, the executive director
may designate an employee of the department [commission] to
participate in a promotional event.
SECTION 20.  Section 466.110, Government Code, is amended to
Sec. 466.110.  PROHIBITED ADVERTISEMENTS.  The legislature
intends that advertisements or promotions sponsored by the
department [commission or the division] for the lottery not be of a
nature that unduly influences any person to purchase a lottery
SECTION 21.  Section 466.151(a), Government Code, is amended
(a)  If the executive director authorizes a person who is not
an employee of the department [commission] to sell tickets, the
person must be licensed as a sales agent by the department
SECTION 22.  Sections 466.155(a), (b), (e), and (f),
Government Code, are amended to read as follows:
(a)  After a hearing, the executive director shall deny an
application for a license or the department [commission] shall
suspend or revoke a license if the executive director or department
[commission], as applicable, finds that the applicant or sales
(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
(D)  is an officer or employee of the department
[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
(A)  is an officer or director of the applicant or
(B)  holds more than 10 percent of the stock in the
(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
(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
(3)  has been finally determined to be delinquent in
the payment of a tax or other money collected by the comptroller,
the Texas Workforce Commission, or the Texas Alcoholic Beverage
(4)  is a person whose location for the sales agency is:
(A)  a location licensed for games of bingo under
Chapter 2001, Occupations Code;
(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
malt beverage retailer's permit, mixed beverage permit, mixed
beverage permit with a retailer late hours certificate, private
club registration permit, or private club registration permit with
a retailer late hours certificate issued under Chapter 25, 28, 29,
or 32, Alcoholic Beverage Code, other than a location for which a
person holds a wine and malt beverage retailer's permit issued
under Chapter 25, Alcoholic Beverage Code, that derives less than
30 percent of the location's gross receipts from the sale or service
(5)  has violated this chapter or a rule adopted under
(b)  If the executive director proposes to deny an
application for a license or the department [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
department's [commission's] records.  A notice must be served or
mailed not later than the 20th day before the date of the hearing.
The department [commission] shall provide for a formal
administrative hearings process.
(e)  The executive director may not issue a license to a
person who has previously had a license under this chapter revoked
unless the executive director is satisfied the person will comply
with this chapter and the rules adopted under this chapter.  The
executive director may prescribe the terms under which a suspended
(f)  The executive director may not issue a license to an
applicant who fails to certify to the executive director the
applicant's compliance with the federal Americans with
Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).
SECTION 23.  Sections 466.160(a), (b), and (d), Government
Code, are amended to read as follows:
(a)  The department [commission] may suspend a sales agent's
license summarily without notice or hearing if the department
[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
(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 department [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 department [commission] may summarily suspend a
sales agent's license if proceedings for a preliminary hearing
before the State Office of Administrative Hearings 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.
(d)  To initiate a proceeding to summarily suspend a sales
agent's license, the department [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 department's [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 department [commission].  If notice is served by mail, the sales
agent shall immediately return the license to the department
[commission].  If the sales agent uses an on-line electronic
terminal to sell tickets, the executive director or a lottery
operator on the instructions of the executive director may
terminate the connection of the terminal to the department's
[commission's] lottery computer at the time:
(1)  the proceeding to summarily suspend the license is
(2)  the department [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
SECTION 24.  Sections 466.161(b) and (c), Government Code,
are amended to read as follows:
(b)  This section does not waive any immunity of the
department [commission] or this state.
(c)  This section does not create a cause of action against
this state, the department [commission], a department [commission]
SECTION 25.  Section 466.201, Government Code, is amended to
Sec. 466.201.  ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION.  (a)  The department [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
(1)  a sales agent or an applicant for a sales agent
(2)  a person required to be named in a license
(3)  a lottery operator or prospective lottery
(4)  an employee of a lottery operator or prospective
lottery operator, if the employee is or will be directly involved in
(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
(6)  a person who has submitted a written bid or
proposal to the department [commission] in connection with the
procurement of goods or services by the department [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 department [commission] to supply goods or
services to the department [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
(C)  holds an equitable interest greater than 10
(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
(F)  shares or will share in the profits, other
than stock dividends, of the person;
(G)  participates in managing the affairs of the
(H)  is an employee of the person who is or will be
(ii)  handling money from the sale of
(b)  The department [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
(2)  an employee or prospective employee of the
(c)  Not later than the first anniversary after the date of
each renewal, the department [commission] shall obtain criminal
history record information maintained by the Department of Public
Safety on a sales agent whose license is renewed under Section
SECTION 26.  Section 466.202, Government Code, is amended to
Sec. 466.202.  FINGERPRINTS.  (a)  The executive director
may discharge from employment an employee of the department
[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 department [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 department [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.
SECTION 27.  Sections 466.203(a) and (c), Government Code,
are amended to read as follows:
(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 of Public Safety
[department] for the actual cost 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 of Public Safety [department]
shall notify the executive director of any change in information
provided to the executive director when the Department of Public
Safety [department] learns of the change.
SECTION 28.  Section 466.204, Government Code, is amended to
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
(1)  a sales agent or an applicant for a sales agent
(2)  an employee or prospective employee of the
(3)  a person required to be named in a license
(4)  a lottery operator or prospective lottery
(5)  an employee of a lottery operator or prospective
lottery operator, if the employee is or will be directly involved in
(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
(7)  a person who has submitted a written bid or
proposal to the department [commission] in connection with the
procurement of goods or services by the department [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 department [commission] to supply goods or
services to the department [commission].
SECTION 29.  Section 466.254, Government Code, is amended to
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
(1)  a member, officer, or employee of a person that has
a contract with the department [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 leasing the
goods or performing the services that are the subject of the
contract with the department [commission];
(2)  a member, officer, or employee of a lottery
(3)  an officer or employee of the department
(4)  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 Subdivision (1), (2), or (3).
SECTION 30.  Subchapter F, Chapter 466, Government Code, is
amended by adding Section 466.255 to read as follows:
Sec. 466.255.  LIMITATION ON NUMBER OF LOTTERY TICKETS PER
TRANSACTION.  A person may not sell to one individual more than 100
lottery tickets in a single transaction.
SECTION 31.  Section 466.302(a), Government Code, is amended
(a)  A person commits an offense if the person intentionally
or knowingly sells a ticket at a price the person knows is greater
than that fixed by the department [commission] or by the lottery
operator authorized to set that price.
SECTION 32.  Sections 466.3051(a) and (d), Government Code,
are amended to read as follows:
(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.
(d)  It is a defense to the application of Subsection (b)
that the individual younger than 18 years of age is participating in
an inspection or investigation on behalf of the department
[commission] or other appropriate governmental entity regarding
SECTION 33.  Section 466.3052(a), Government Code, is
(a)  A person commits an offense if the person intentionally
or knowingly sells a ticket and the person accepts anything other
than the following as payment for the ticket:
(2)  a negotiable instrument in the form of a check that
meets the requirements of Section 3.104, Business & Commerce Code;
(3)  a debit made through a financial institution debit
(4)  a coupon or voucher issued by the department
[commission] for purposes of purchasing a lottery ticket; or
(5)  a mail order subscription on a mail order
subscription form authorized by the department [commission].
SECTION 34.  Section 466.311(b), Government Code, is amended
(b)  A person commits an offense if the person knowingly
refuses to produce for inspection by the [director,] executive
director, department [commission], or state auditor a book, record,
or document required to be maintained or made by this chapter or a
rule adopted under this chapter.
SECTION 35.  Subchapter G, Chapter 466, Government Code, is
amended by adding Section 466.318 to read as follows:
Sec. 466.318.  PLAY OR FACILITATING PLAY BY TELEPHONE OR BY
INTERNET OR MOBILE INTERNET APPLICATION.  (a)  A person may not by
telephone or through an Internet application or mobile Internet
(1)  purchase or order the purchase of a ticket for a
(A)  accept an order for a ticket for a lottery
(B)  sell a ticket for a lottery game to a player;
(i)  to purchase a ticket on behalf of a
person playing a lottery game; or
(ii)  for another person to purchase a
ticket on behalf of a person playing a lottery game.
(b)  A person commits an offense if the person violates this
(c)  An offense under Subsection (a)(1) is a Class C
(d)  An offense under Subsection (a)(2) is a Class A
SECTION 36.  Sections 466.408(a), (c), and (f), Government
Code, are amended to read as follows:
(a)  The department [division] shall retain an unclaimed
prize on a winning ticket for payment or delivery to the person
entitled to the prize for 180 days after the date on which the
(c)  If a claim is not made for a prize other than prize money
on or before the 180th day after the date on which the winner was
selected, the prize shall revert to the department [division] for
(f)  The department [commission] may deduct money paid to an
eligible person under Subsection (e) from prize money that would
otherwise be deposited under Subsection (b).
SECTION 37.  Sections 466.410(a), (b), (d), (f), (g), and
(j), Government Code, are amended to read as follows:
(a)  A person may assign, in whole or in part, the right to
receive prize payments that are paid by the department [commission]
in installments over time if the assignment is made to a person
designated by an order of a district court of Travis County, except
that a person may not assign the right to receive prize payments if
the person is subject to a child support order and is delinquent in
making support payments under that order.
(b)  A district court shall issue an order approving a
voluntary assignment and directing the department [commission] to
direct prize payments in whole or in part to the assignee if:
(1)  a copy of the petition for the order and copies of
all notices of any hearing in the matter have been served on the
executive director not later than 20 days prior to any hearing or
entry of any order.  The department [commission] may intervene in a
proceeding to protect the interests of the department [commission]
but shall not be considered an indispensable or necessary party.  A
petition filed under this section shall include in the caption the
prize winner's name as it appears on the lottery claim form;
(2)  the assignment is in writing, executed by the
assignor and assignee (or designated agent), and by its terms
subject to the laws of this state; and
(3)  the assignor provides a sworn and notarized
affidavit stating that the assignor:
(A)  is of sound mind, over 18 years of age, is in
full command of the person's faculties, and is not acting under
(B)  is not delinquent in payment of child support
under a court or administrative order issued in this state or
(C)  has been advised regarding the assignment by
independent legal counsel and has had the opportunity to receive
independent financial and tax advice concerning the effects of the
(D)  understands that the assignor will not
receive the prize payments, or portions of the prize payments, for
(E)  understands and agrees that with regard to
the assigned payments, the state, the department [commission], and
its officials and employees will have no further liability or
responsibility to make the assigned payments to the assignor;
(F)  has been provided a one-page written
disclosure statement stating, in boldfaced type, 14 points or
(i)  the payments being assigned, by amounts
(ii)  the purchase price being paid, if any;
(iii)  if a purchase price is paid, the rate
of discount to the present value of the prize, assuming daily
compounding and funding on the contract date; and
(iv)  the amount, if any, of any origination
or closing fees that will be charged to the assignor; and
(G)  was advised in writing, at the time the
assignment was signed, that the assignor had the right to cancel
without any further obligation not later than the third business
day after the date the assignment was signed.
(d)  With respect to any given prize, the order shall also
recite and identify all prior assignments by amount of or fraction
of payment assigned, the identity of the assignee, and the date(s)
of payment(s) assigned.  A court order obtained pursuant to this
section, together with all such prior orders, shall not require the
department [commission] to divide any single prize payment among
more than three different persons.
(f)  A certified copy of a court order granted under this
section shall be delivered to the department [commission] and such
order must be provided to the department [commission] no later than
20 days prior to the date upon which the first assigned payment is
to be paid to the assignee.  Within 20 days of receipt of the court
order, the department [commission] shall acknowledge in writing to
both the assignor and the assignee its receipt of said court order.
Unless the department [commission] provides written notice to the
assignor and assignee that the department [commission] cannot
comply with the court order, the department [commission] shall
thereafter make the prize payments in accordance with the court
(g)  The department [commission] shall establish and collect
a reasonable fee to defray any administrative expenses associated
with an assignment made under this section, including the cost to
the department [commission] of any processing fee imposed by a
private annuity provider.  The department [commission] shall
establish the amount of the fee to reflect the direct and indirect
costs associated with processing the assignment.
(j)  After receiving a letter or ruling from the Internal
Revenue Service or a published decision of a court as provided by
Subsection (i)(1) or (2), the executive director shall immediately
file a copy of the letter, ruling, or published decision with the
secretary of state.  When the executive director files a copy of the
letter, ruling, or published decision with the secretary of state,
an assignor is ineligible to assign a prize under this section, and
the department [commission] shall not make any payment to an
assignee pursuant to a court order entered after the date of such
SECTION 38.  Sections 466.411(b) and (d), Government Code,
are amended to read as follows:
(b)  The department [commission] may release or disclose the
personally identifiable information of a natural person who is a
lottery prize winner if the person chooses to have the prize paid in
periodic installments.  The department [commission] may only
disclose the information on or after the 30th day after the date the
person claims the lottery prize if the person chooses to remain
anonymous under Subsection (a).
(d)  This section does not prohibit release of a natural
person prize winner's city or county of residence or prevent the
department [commission] from releasing the person's personally
identifiable information to the Health and Human Services
Commission or as necessary to comply with Section 466.407 or
SECTION 39.  Section 466.451, Government Code, is amended to
Sec. 466.451.  MULTIJURISDICTION AGREEMENT AUTHORIZED.  The
department [commission] may enter into a written agreement with the
appropriate officials of one or more other states or other
jurisdictions, including foreign countries, to participate in the
operation, marketing, and promotion of a multijurisdiction lottery
game or games.  The commission may adopt rules relating to a
multijurisdiction lottery game or games.
SECTION 40.  Section 466.452(b), Government Code, is amended
(b)  The department [commission] may deposit a portion of the
revenue received from the sale of multijurisdiction lottery game
tickets in this state into a fund shared with other parties to an
agreement under this subchapter for the payment of prizes awarded
in multijurisdiction lottery games in which the department
[commission] participates.  The department [commission] may retain
that revenue in the fund for as long as necessary to pay prizes
claimed during the period designated for claiming a prize in the
multijurisdiction lottery game.
SECTION 41.  Section 466.453, Government Code, is amended to
Sec. 466.453.  PAYMENT OF COSTS AUTHORIZED.  The department
[commission] may share in the payment of costs associated with
participating in multijurisdiction lottery games.
SECTION 42.  Section 544.0456(c), Government Code, is
(c)  On a monthly basis, the commission shall:
(1)  conduct electronic data matches with the Texas
Department of Licensing and Regulation [Lottery Commission] to
determine whether a recipient of supplemental nutrition assistance
benefits or a recipient's household member received reportable
(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
(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 43.  Sections 572.003(b) and (c), Government Code,
are amended to read as follows:
(1)  the banking commissioner [Banking Commissioner]
of the Texas [The Banking] Department of Banking [Texas];
(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 executive director of the [bingo division of
the] Texas Department of Licensing and Regulation [Lottery
(6) [(8)]  the secretary of state.
(c)  The term means a member of:
(1)  the Public Utility Commission of Texas;
(2)  the Texas Commission on Environmental Quality;
(3)  the Texas Alcoholic Beverage Commission;
(4)  the Finance Commission of Texas;
(5)  the Texas Facilities Commission;
(6)  the Texas Board of Criminal Justice;
(7)  the board of trustees of the Employees Retirement
(8)  the Texas Transportation Commission;
(9)  the Texas Department of Insurance;
(10)  the Parks and Wildlife Commission;
(11)  the Public Safety Commission;
(12)  the Texas Ethics Commission;
(13)  the State Securities Board;
(14)  the Texas Water Development Board;
(15)  the governing board of a public senior college or
university as defined by Section 61.003, Education Code, or of The
University of Texas Southwestern Medical Center, The University of
Texas Medical Branch at Galveston, The University of Texas Health
Science Center at Houston, The University of Texas Health Science
Center at San Antonio, The University of Texas M. D. Anderson Cancer
Center, The University of Texas Health Science Center at Tyler,
University of North Texas Health Science Center at Fort Worth,
Texas Tech University Health Sciences Center, Texas State Technical
College--Harlingen, Texas State Technical College--Marshall, Texas
State Technical College--Sweetwater, or Texas State Technical
(16)  the Texas Higher Education Coordinating Board;
(17)  the Texas Workforce Commission;
(18)  the board of trustees of the Teacher Retirement
(19)  the Credit Union Commission;
(21)  the board of the Texas Department of Housing and
(22)  the Texas Racing Commission;
(23)  the State Board of Dental Examiners;
(25)  the Board of Pardons and Paroles;
(26)  the Texas State Board of Pharmacy;
(27)  the Department of Information Resources
(28)  the board of the Texas Department of Motor
(29)  the Texas Real Estate Commission;
(30)  the board of directors of the State Bar of Texas;
(32)  the Health and Human Services Commission;
(33)  the Texas Funeral Service Commission;
(34)  the board of directors of a river authority
created under the Texas Constitution or a statute of this state; or
(35)  [the Texas Lottery Commission; or
[(36)]  the Cancer Prevention and Research Institute of
SECTION 44.  Sections 467.001(3), (4), (5), (6), (7), (8),
(9), (10), and (11), Government Code, are transferred to Section
51.001, Occupations Code, redesignated as Sections 51.001(1-b),
(2-a), (2-b), (4-a), (4-b), (4-c), (4-d), (4-e), and (4-f),
Occupations Code, and amended to read as follows:
(1-b) [(3)]  "Communicate directly with" has the
meaning assigned by Section 305.002, Government Code.
(2-a) [(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.
(2-b) [(5)]  "Legislation" has the meaning assigned by
Section 305.002, Government Code.
(4-a) [(6)]  "Member of the legislative branch" has the
meaning assigned by Section 305.002, Government Code.
(4-b) [(7)]  "Participated" means to have taken action
as an officer or employee through decision, approval, disapproval,
recommendation, giving advice, or similar action.
(4-c) [(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
(4-d) [(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
(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
(4-e) [(10)]  "Political committee" has the meaning
assigned by Section 251.001, Election Code.
(4-f) [(11)]  "Political contribution" has the meaning
assigned by Section 251.001, Election Code.
SECTION 45.  Section 51.002, Occupations Code, is amended to
Sec. 51.002.  APPLICATION OF SUNSET ACT.  The Texas
Commission of Licensing and Regulation and the Texas Department of
Licensing and Regulation are subject to Chapter 325, Government
Code (Texas Sunset Act).  Unless continued in existence as provided
by that chapter, the commission and the department are abolished
and Chapter 2001 of this code expires September 1, 2033.
SECTION 46.  Section 51.053, Occupations Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1)  In addition to the eligibility requirements provided
by Subsection (b), a person is not eligible for appointment as a
member of the commission if the person:
(1)  has been convicted of a felony or of any crime
(2)  is not a citizen of the United States.
SECTION 47.  Section 467.025, Government Code, is
transferred to Subchapter B, Chapter 51, Occupations Code,
redesignated as Section 51.061, Occupations Code, and amended to
Sec. 51.061  [467.025].  PROHIBITED CONDUCT.  (a)  A
(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.
(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.
SECTION 48.  Section 467.036, Government Code, is
transferred to Subchapter B, Chapter 51, Occupations Code,
redesignated as Section 51.062, Occupations Code, and amended to
Sec. 51.062  [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
(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.
SECTION 49.  Section 467.101, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.2011, Occupations Code, and amended to
Sec. 51.2011  [467.101].  POWERS AND DUTIES OF COMMISSION
REGARDING STATE LOTTERY AND BINGO REGULATION.  (a)  The commission
has broad authority and shall exercise strict control and close
supervision over all activities authorized and conducted in this
(1)  Chapter 2001 [, Occupations Code]; and
(2)  Chapter 466, Government Code [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
(1)  Chapter 2001 [, Occupations Code]; and
(2)  Chapter 466, Government Code [of this code].
SECTION 50.  Section 467.104, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.212, Occupations Code, and amended to
Sec. 51.212  [467.104].  LOTTERY AND BINGO PROGRAM RECORDS.
(a)  Except as otherwise provided by law, all commission records
relating to the state lottery under Chapter 466, Government Code,
and the regulation of charitable bingo under Chapter 2001 are
subject to public inspection in accordance with Chapter 552,
(b)  The executive director shall keep the records described
by Subsection (a) [of the commission].
SECTION 51.  Section 467.105, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.213, Occupations Code, and amended to
Sec. 51.213  [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
SECTION 52.  Section 467.106, Government Code, is
transferred to Subchapter D, Chapter 51, Occupations Code,
redesignated as Section 51.214, Occupations Code, and amended to
Sec. 51.214  [467.106].  GIFT OR POLITICAL CONTRIBUTION TO
OFFICER OR EMPLOYEE.  (a)  A commission member, the executive
director, or a