SB1990 - Relating to the operation and administration of the state lottery and repeal of the prohibition on imposing taxes on lottery tickets or prizes.

  89R12518 BEE-D     By: Hall S.B. No. 1990       A BILL TO BE ENTITLED   AN ACT   relating to the operation and administration of the state lottery   and repeal of the prohibition on imposing taxes on lottery tickets   or prizes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 466.015(c), Government Code, is amended   to read as follows:          (c)  The commission may adopt rules governing the   establishment and operation of the lottery, including rules   governing:                (1)  the type of lottery games to be conducted;                (2)   subject to Section 466.251(d), the price of each   ticket;                (3)  the number of winning tickets and amount of the   prize paid on each winning ticket;                (4)  the frequency of the drawing or selection of a   winning ticket;                (5)  the number and types of locations at which a ticket   may be sold;                (6)  the method to be used in selling a ticket;                (7)  the use of vending machines or electronic or   mechanical devices of any kind, other than machines or devices that   dispense currency or coins as prizes;                (8)  the manner of paying a prize to the holder of a   winning ticket;                (9)  the investigation of possible violations of this   chapter or any rule adopted under this chapter;                (10)  the means of advertising to be used for the   lottery;                (11)  the qualifications of vendors of lottery services   or equipment;                (12)  the confidentiality of information relating to   the operation of the lottery, including:                      (A)  trade secrets;                      (B)  security measures, systems, or procedures;                      (C)  security reports;                      (D)  bids or other information regarding the   commission's contracts, if disclosure of the information would   impair the commission's ability to contract for facilities, goods,   or services on terms favorable to the commission;                      (E)  personnel information unrelated to   compensation, duties, qualifications, or responsibilities; and                      (F)  information obtained by commission security   officers or investigators;                (13)  the development and availability of a model   agreement governing the division of a prize among multiple   purchasers of a winning ticket purchased through a group purchase   or pooling arrangement;                (14)  the criteria to be used in evaluating bids for   contracts for lottery facilities, goods, and services; or                (15)  any other matter necessary or desirable as   determined by the commission, to promote and ensure:                      (A)  the integrity, security, honesty, and   fairness of the operation and administration of the lottery; and                      (B)  the convenience of players and holders of   winning tickets.          SECTION 2.  Section 466.027(b), Government Code, is amended   to read as follows:          (b)  The commission shall:                (1)  determine the ticket price subject to Section   466.251(d) , payout amounts, and manner in which the game is   conducted;                (2)  make tickets to the game available for sale   continuously to the extent practicable; and                (3)  change the design or theme of the game regularly to   ensure that the game remains competitive with other instant-ticket   lottery games offered by the commission.          SECTION 3.  Section 466.155(a), Government Code, is amended   to read as follows:          (a)  After a hearing, the director shall deny an application   for a license or the commission shall suspend or revoke a license if   the director or commission, as applicable, finds that the applicant   or sales agent:                (1)  is an individual who:                      (A)  has been convicted of a felony, criminal   fraud, gambling or a gambling-related offense, or a misdemeanor   involving moral turpitude, if less than 10 years has elapsed since   the termination of the sentence, parole, mandatory supervision, or   probation served for the offense;                      (B)  is or has been a professional gambler;                      (C)  is married to an individual:                            (i)  described in Paragraph (A) or (B); or                            (ii)  who is currently delinquent in the   payment of any state tax;                      (D)  is an officer or employee of the commission   or a lottery operator; or                      (E)  is a spouse, child, brother, sister, or   parent residing as a member of the same household in the principal   place of residence of a person described by Paragraph (D);                (2)  is not an individual, and an individual described   in Subdivision (1):                      (A)  is an officer or director of the applicant or   sales agent;                      (B)  holds more than 10 percent of the stock in the   applicant or sales agent;                      (C)  holds an equitable interest greater than 10   percent in the applicant or sales agent;                      (D)  is a creditor of the applicant or sales agent   who holds more than 10 percent of the applicant's or sales agent's   outstanding debt;                      (E)  is the owner or lessee of a business that the   applicant or sales agent conducts or through which the applicant   will conduct a ticket sales agency;                      (F)  shares or will share in the profits, other   than stock dividends, of the applicant or sales agent; or                      (G)  participates in managing the affairs of the   applicant or sales agent;                (3)  has been finally determined to be delinquent in   the payment of a tax or other money collected by the comptroller,   the Texas Workforce Commission, or the Texas Alcoholic Beverage   Commission;                (4)  is a person whose location for the sales agency is:                      (A)  a location licensed for games of bingo under   Chapter 2001, Occupations Code;                      (B)  on land that is owned by:                            (i)  this state; or                            (ii)  a political subdivision of this state   and on which is located a public primary or secondary school, an   institution of higher education, or an agency of the state; [ or ]                      (C)  a location for which a person holds a wine and   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   of alcoholic beverages; or                       (D)     a location within 800 feet of the campus of a   church or a public, private, or open-enrollment charter school; or                (5)  has violated this chapter or a rule adopted under   this chapter.          SECTION 4.  Section 466.251, Government Code, is amended by   adding Subsection (d) to read as follows:           (d)     The commission or lottery operator may not set a retail   price for an instant-ticket lottery game in an amount greater than   $20 per ticket.          SECTION 5.  Subchapter F, Chapter 266, Government Code, is   amended by adding Section 466.257 to read as follows:           Sec.   466.257.     PROHIBITED VENDING MACHINE SALES. A ticket   may not be sold through a ticket dispensing machine that dispenses   lottery tickets without the assistance of a sales agent's   personnel.          SECTION 6.  Section 466.355, Government Code, is amended by   adding Subsection (d) to read as follows:           (d)     Notwithstanding any other provision of this section,   not less than 40 percent of the total revenue received from the sale   of tickets and license and application fees under this chapter   shall be deposited to the credit of:                 (1)  the foundation school fund; and                 (2)     the fund for veterans' assistance established by   Section 434.017.          SECTION 7.  Section 466.004, Government Code, is repealed.          SECTION 8.  As soon as pr [Text truncated for display. Full text available on LegiScan.]