CHAPTER 466. STATE LOTTERY

GOVERNMENT CODE

TITLE 4. EXECUTIVE BRANCH

SUBTITLE E. OTHER EXECUTIVE AGENCIES AND PROGRAMS

CHAPTER 466. STATE LOTTERY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 466.001. SHORT TITLE. This chapter may be cited as the

State Lottery Act.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993.

Sec. 466.002. DEFINITIONS. In this chapter:

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

(2) "Director" means the director of the division.

(3) "Division" means the lottery division established by the

commission under Chapter 467.

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

commission.

(5) "Lottery" means the procedures operated by the state under

this chapter through which prizes are awarded or distributed by

chance among persons who have paid, or unconditionally agreed to

pay, for a chance or other opportunity to receive a prize.

(6) "Lottery game" includes a lottery activity.

(7) "Lottery operator" means a person selected under Section

466.014(b) to operate a lottery.

(8) "Player" means a person who contributes any part of the

consideration for a ticket.

(9) "Sales agent" or "sales agency" means a person licensed

under this chapter to sell tickets.

(10) "Ticket" means any tangible evidence issued to provide

participation in a lottery game authorized by this chapter.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.01,

eff. Sept. 1, 1995.

Sec. 466.003. APPLICATION OF SUNSET ACT. (a) The lottery

division is subject to Chapter 325 (Texas Sunset Act). Unless

continued in existence as provided by that chapter, the division

is abolished and this chapter expires September 1, 2005. In the

review of the lottery division by the Sunset Advisory Commission,

as required by this section, the sunset commission shall limit

its review to the appropriateness of recommendations made by the

sunset commission to the 78th Legislature. In the Sunset Advisory

Commission's report to the 79th Legislature, the sunset

commission may include any recommendations it considers

appropriate.

(b) A contract between the division and a lottery operator under

Section 466.014(b) must contain a provision allowing the contract

to be terminated without penalty should the division be

abolished.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1999, 76th Leg., ch. 587, Sec. 1, eff.

June 18, 1999; Acts 2003, 78th Leg., ch. 1112, Sec. 1.03(b), eff.

Sept. 1, 2003.

Sec. 466.004. EXEMPTION FROM TAXATION. (a) A political

subdivision of this state may not impose:

(1) a tax on the sale of a ticket;

(2) a tax on the payment of a prize under this chapter; or

(3) an ad valorem tax on tickets.

(b) The receipts from the sale, use, or other consumption of a

ticket are exempt from taxation under Chapter 151, Tax Code.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993.

SUBCHAPTER B. ADMINISTRATION

Sec. 466.012. DIVISION EMPLOYEES. Division employees are

specifically exempted from Chapter 654. The director shall set

the salaries of these employees.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.02,

eff. Sept. 1, 1995.

Sec. 466.014. POWERS AND DUTIES OF COMMISSION AND EXECUTIVE

DIRECTOR. (a) The 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.

(b) The executive director may contract with or employ a person

to perform a function, activity, or service in connection with

the operation of the lottery as prescribed by the executive

director. A person with whom the executive director contracts to

operate a lottery must be eligible for a sales agent license

under Section 466.155.

(c) The executive director may award a contract for lottery

supplies or services, including a contract under Subsection (b),

pending the completion of any investigation authorized by this

chapter. A contract awarded under this subsection must include a

provision permitting the executive director to terminate the

contract without penalty if the investigation reveals that the

person to whom the contract is awarded would not be eligible for

a sales agent license under Section 466.155.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.03,

eff. Sept. 1, 1995.

Sec. 466.015. RULES. (a) The commission shall adopt all rules

necessary to administer this chapter. The executive director may

propose rules to be adopted by the commission, but the executive

director's proposed rules have no effect until adopted by the

commission.

(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 this

chapter;

(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 a lottery

game by telephone.

(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) 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.

(d) Repealed by Acts 2009, 81st Leg., R.S., Ch. 74, Sec. 1, eff.

May 20, 2009.

(e) Expired.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(83),

(94), 6.04, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 592,

Sec. 3.01, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1353,

Sec. 1, 2, eff. June 19, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

74, Sec. 1, eff. May 20, 2009.

Sec. 466.016. ANNUAL REPORT. The commission shall make an

annual report to the governor and the legislature that provides a

summary of lottery revenues, prize disbursements, and other

expenses for the fiscal year preceding the report. The report

must be in the form and reported in the time provided by the

General Appropriations Act.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.04,

eff. Sept. 1, 1995.

Sec. 466.0161. REVIEW BY COMPTROLLER. (a) Annually, the

comptroller shall review the management and operations of the

lottery. The comptroller may examine books, records, documents,

things, or persons as necessary for that purpose.

(b) The comptroller shall report the results of the review to

the governor, the lieutenant governor, and the speaker of the

house of representatives.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 6.05, eff. Sept. 1,

1995.

Sec. 466.017. AUDITS. (a) The executive director shall provide

for a certified public accountant to conduct an independent audit

for each fiscal year of all accounts and transactions of the

lottery. The certified public accountant may not have, as

determined by the executive director, a significant financial

interest in a sales agent, lottery vendor, or lottery operator.

The certified public accountant shall present an audit report to

the executive director, the commission, the governor, the

comptroller, and the legislature not later than the 30th day

after the submission date for the annual financial report

required by the General Appropriations Act. The report must

contain recommendations to enhance the earnings capability of the

lottery and improve the efficiency of lottery operations. The

state auditor may review the results of and working papers

related to the audit.

(b) Each lottery operator's and sales agent's records are

subject to audit by the commission and the state auditor. For the

purpose of carrying out this chapter, the executive director or

state auditor may examine all books, records, papers, or other

objects that the executive director or state auditor determines

are necessary for conducting a complete examination under this

chapter and may also examine under oath any officer, director, or

employee of a lottery operator or sales agent. The executive

director or state auditor may conduct an examination at the

principal office or any other office of the lottery operator or

sales agent or may require the lottery operator or sales agent to

produce the records at the office of the commission or state

auditor. If a sales agent refuses to permit an examination or to

answer any question authorized by this subsection, the executive

director may summarily suspend the license of the sales agent

under Section 466.160 until the examination is completed as

required. Section 321.013(h) does not apply to an audit of a

lottery operator or sales agent.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.06,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1035, Sec. 66, eff.

Sept. 1, 1997.

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 commission or its employees, a sales agent, a

lottery vendor, or a lottery operator.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.07,

eff. Sept. 1, 1995.

Sec. 466.019. ENFORCEMENT. (a) The executive director or

designated personnel of the 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 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 occurred.

(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 of

Title 2 of the Tax Code:

(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

commission.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03, eff. Aug. 30,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.07, eff.

Sept. 1, 1995.

Sec. 466.020. SECURITY. (a) The executive director shall

maintain a department of security in the commission. The

executive director shall appoint a deputy to administer the

department. The deputy must be qualified by training and

experience in law enforcement or security to supervise, direct,

and administer the activities of the department.

(b) The executive director may employ security officers or

investigators as the executive director considers necessary and

may commission security officers or investigators as peace

officers. The deputy and all investigators employed by the

department of security as peace officers must meet the

requirements under Chapter 415 for employment and commission as

peace officers.

(c) A security officer or investigator employed by the

department of security or a peace officer who is working in

conjunction with the commission or the Department of Public

Safety in the enforcement of this chapter, without a search

warrant, may search and seize a lottery vending machine, lottery

computer terminal, or other lottery equipment that is located on

premises for which a person holds a sales agent license issued

under this chapter.

(d) The Department of Public Safety, at the commission's

request, shall perform a full criminal background investigation

of a prospective deputy or investigator of the department of

security. The commission shall reimburse the Department of Public

Safety for the actual costs of an investigation.

(e) At least once every two years, the executive director shall

employ an independent firm that is experienced in security,

including computer security and systems security, to conduct a

comprehensive study of all aspects of lottery security,

including:

(1) lottery personnel security;

(2) sales agent security;

(3) lottery operator and vendor security;

(4) security against ticket counterfeiting and alteration and

other means of fraudulent winning;

(5) security of lottery drawings;

(6) lottery computer, data communications, database, and systems

security;

(7) lottery premises and warehouse security;

(8) security of distribution of tickets;

(9) security of validation and payment procedures;

(10) security involving unclaimed prizes;

(11) security aspects of each lottery game;

(12) security against the deliberate placement of winning

tickets in lottery games that involve preprinted winning tickets

by persons involved in the production, storage, transportation,

or distribution of tickets; and

(13) other security aspects of lottery operations.

(f) The executive director shall provide the commission with a

complete report of the security study conducted under Subsection

(e). The commission shall provide the governor and the

legislature, before the convening of each regular legislative

session, with a summary of the security study that shows the

overall evaluation of the lottery's security.

(g) Expired.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.08,

eff. Sept. 1, 1995.

Sec. 466.021. DEMOGRAPHIC STUDIES. (a) The executive director

shall, every two years, employ an independent firm experienced in

demographic analysis to conduct a demographic study of lottery

players. The study must include the income, age, sex, race,

education, and frequency of participation of players.

(b) The executive director shall report the results of the

demographic study conducted under Subsection (a) to the

commission, the governor, and the legislature before the

convening of each regular legislative session.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.09,

eff. Sept. 1, 1995.

Sec. 466.022. CONFIDENTIAL INFORMATION. (a) Except as

otherwise provided by law, all commission records are subject to

public inspection in accordance with Chapter 552.

(b) In addition to 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 commission designed to

ensure the integrity and security of the operation of the

lottery;

(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; and

(3) the street address and telephone number of a prize winner,

if the prize winner has not consented to the release of the

information.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(94),

6.09, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 792, Sec. 1,

eff. Sept. 1, 1997.

Sec. 466.023. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a) Except

as otherwise provided by this chapter, all files, records,

information, compilations, documents, photographs, reports,

summaries, and reviews of information and related matters

collected, retained, or compiled by the Department of Public

Safety in the discharge of its duties under this chapter are

confidential and are not subject to public disclosure. Each of

those items is subject to discovery by a person that is the

subject of the item.

(b) An investigation report or other document submitted by the

Department of Public Safety to the commission becomes part of the

investigative files of the commission and is subject to discovery

by a person that is the subject of the investigation report or

other document.

(c) Information that is in the form available to the public is

not privileged or confidential under this section and is subject

to public disclosure.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.10,

eff. Sept. 1, 1995.

Sec. 466.024. PROHIBITED GAMES. (a) The executive director or

a lottery operator may not establish or operate a lottery game in

which the winner is chosen on the basis of the outcome of a

sports event.

(b) The commission shall adopt rules prohibiting the operation

of any game using a video lottery machine or machine.

(c) In this section:

(1) "Sports event" means a football, basketball, baseball, or

similar game, or a horse or dog race on which pari-mutuel

wagering is allowed.

(2) "Video lottery machine" or "machine" means any electronic

video game machine that, upon insertion of cash, is available to

play or simulate the play of a video game, including video poker,

keno, and blackjack, using a video display and microprocessors in

which the player may receive free games or credits that can be

redeemed for cash, coins, or tokens, or that directly dispenses

cash, coins, or tokens.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.11,

eff. Sept. 1, 1995.

Sec. 466.025. REPORTS OF TICKETS SOLD AND PRIZES AWARDED. For

each lottery game, after the last date on which a prize may be

claimed under Section 466.408(d), the director shall prepare a

report that shows the total number of tickets sold and the number

and amounts of prizes awarded in the game. The report must be

available for public inspection.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993.

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 commission shall disseminate

Amber Alert information at its retail locations through the

lottery operator system.

Added by Acts 2003, 78th Leg., ch. 544, Sec. 1, eff. Sept. 1,

2003.

Sec. 466.027. VETERANS' ASSISTANCE GAME. (a) The commission

shall operate an instant-ticket lottery game to benefit the fund

for veterans' assistance established by Section 434.017.

(b) The 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 commission.

(c) The 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 Texas

Lottery Commission relating to the marketing and advertising of

the game.

(d) The 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.

(e) No organization that would otherwise be eligible to receive

funds from the state lottery account attributable to any lottery

game authorized by this section may receive any such funds if it

conducts illegal gambling or the illegal operation of gambling

devices as defined by Chapter 47, Penal Code, or allows illegal

gambling or the illegal operation of gambling devices to be

conducted on its property or in its facilities.

Added by Acts 2009, 81st Leg., R.S., Ch.

1385, Sec. 5(a), eff. June 19, 2009.

SUBCHAPTER C. PROCUREMENT; ADVERTISING

Sec. 466.101. PROCUREMENT PROCEDURES. (a) The executive

director may establish procedures for the purchase or lease of

facilities, goods, and services and make any purchases, leases,

or contracts that are necessary for carrying out the purposes of

this chapter. The procedures must, as determined feasible and

appropriate by the executive director, promote competition to the

maximum extent possible.

(b) In all procurement decisions, the executive director shall

take into account the particularly sensitive nature of the

lottery and shall act to promote and ensure integrity, security,

honesty, and fairness in the operation and administration of the

lottery and the objective of producing revenues for the state

treasury.

(c) The procurement procedures adopted by the executive director

must, as determined feasible and appropriate by the executive

director, afford any party who is aggrieved by the terms of a

solicitation or the award of a contract an opportunity to protest

the executive director's action to the commission. The protest

procedures must provide for an expedient resolution of the

protest in order to avoid substantially delaying a solicitation

or contract award that is necessary for the timely implementation

of a lottery game. A protest must be in writing and be filed with

the commission not later than 72 hours after receipt of notice of

the executive director's action.

(d) A party who is aggrieved by the commission's resolution of a

protest under Subsection (c) may file an action in the district

court of Travis County. The court shall give preference to

hearings and trials of actions under this section. If the party

filing the action seeks to enjoin the implementation of a

solicitation or contract, the party shall post a bond that is

payable to the state if the party does not prevail in the appeal,

and is in an amount sufficient to compensate the state for the

revenue that would be lost due to the delay in lottery

operations.

(e) The commission shall require any person seeking to contract

for goods or services relating to the implementation and

administration of this chapter to submit to competitive bidding

procedures in accordance with rules adopted by the commission.

The procedures must be for the purpose of ensuring fairness and

integrity.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,

eff. Sept. 1, 1995.

Sec. 466.102. LIQUIDATED DAMAGES; PERFORMANCE BOND. A contract

for the acquisition or provision of facilities, supplies,

equipment, materials, or services related to the operation of the

lottery must provide for liquidated damages and a performance

bond in an amount equal to the executive director's best

available estimate of the revenue that would be lost if the

contractor fails to meet deadlines specified in the contract.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,

eff. Sept. 1, 1995.

Sec. 466.103. PROHIBITED CONTRACTS. (a) Except as provided by

Subsection (b), the executive director may not award a contract

for the purchase or lease of facilities, goods, or services

related to lottery operations to a person who would be denied a

license as a sales agent under Section 466.155.

(b) Subsection (a) does not prohibit the executive director from

awarding a contract for the purpose of conducting a promotional

event to a person who would be denied a license as a sales agent

under Section 466.155(a)(4)(C) but not under any other provision

of Section 466.155.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,

eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 678, Sec. 1, eff.

Sept. 1, 1999.

Sec. 466.104. ASSISTANCE OF COMPTROLLER. (a) On request of the

executive director, the comptroller shall assist the executive

director in:

(1) acquiring facilities, supplies, materials, equipment, and

services under Subtitle D, Title 10; or

(2) establishing procedures for the executive director's

accelerated acquisition of facilities, supplies, materials,

equipment, and services for the operation of the lottery.

(b) The comptroller may request assistance from the Texas

Facilities Commission in performing its facilities-related duties

under this section.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.12,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 17.19(5),

eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 1.51, eff. September 1, 2007.

Sec. 466.105. APPLICABILITY OF OTHER LAW. (a) A contract for

the acquisition or provision of facilities, supplies, equipment,

materials, or services related to the operation of the lottery is

not subject to:

(1) Chapter 2054 or 2254; or

(2) Subtitle D, Title 10.

(b) Notwithstanding the provisions of Title 2, Utilities Code,

the commission may negotiate rates and execute contracts with

telecommunications service providers for the interexchange

services necessary for the operation of the lottery. The

commission may acquire transmission facilities by lease,

purchase, or lease-purchase. The acquisition of transmission

facilities must be done on a competitive bid basis if possible.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(14),

6.13, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec.

17.19(5), eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec.

18.21, eff. Sept. 1, 1999.

Sec. 466.106. PREFERENCE FOR TEXAS BUSINESSES. (a) In all

contracts for lottery equipment, supplies, services, and

advertising, the 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 equal.

(b) If equipment or supplies produced in this state or services

or advertising offered by a bidder from this state are not equal

in cost and quality, then equipment or supplies produced in

another state or services or advertising offered by a bidder from

another state shall be given preference over foreign equipment,

supplies, services, or advertising.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.14,

eff. Sept. 1, 1995.

Sec. 466.107. MINORITY BUSINESSES. (a) The executive director

and each lottery operator shall take positive steps to:

(1) inform minority businesses of opportunities to:

(A) provide lottery equipment and supplies to the commission;

(B) provide services, including advertising, to the 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

commission; and

(7) require all bidders or contractors, when appropriate, to

include specific plans or arrangements to use subcontracts with

minority businesses.

(b) In this section:

(1) "Minority business" means a business entity at least 51

percent of which is owned by minority group members or, in the

case of a corporation, at least 51 percent of the shares of which

are owned by minority group members, and that:

(A) is managed and, in daily operations, is controlled by

minority group members; and

(B) is a domestic business entity with a home or branch office

located in this state and is not a branch or subsidiary of a

foreign corporation, firm, or other business entity.

(2) "Minority group members" includes:

(A) African Americans;

(B) American Indians;

(C) Asian Americans; and

(D) Mexican Americans and other Americans of Hispanic origin.

(c) The commission shall annually report to the legislature and

the governor on the level of minority business participation as

pertains to both the 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.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.15,

eff. Sept. 1, 1995.

Sec. 466.108. TELEVISION CONTRACTS. If the drawing or selection

of winning tickets is televised under a contract with the

commission, the contract must be awarded by competitive bid. The

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.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.16,

eff. Sept. 1, 1995.

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 commission, may not appear in an

advertisement or promotion for the lottery that is sponsored by

the 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 commission.

(b) In connection with providing security for the lottery, this

section does not prohibit a security officer or investigator

employed by the commission from appearing in a televised lottery

drawing or other promotion for the lottery that is sponsored by

the commission .

(c) Notwithstanding this section, the executive director may

designate an employee of the commission to participate in a

promotional event.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.16,

eff. Sept. 1, 1995.

Sec. 466.110. PROHIBITED ADVERTISEMENTS. The legislature

intends that advertisements or promotions sponsored by the

commission or the division for the lottery not be of a nature

that unduly influences any person to purchase a lottery ticket or

number.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.17,

eff. Sept. 1, 1995.

SUBCHAPTER D. LICENSING OF SALES AGENTS

Sec. 466.151. LICENSE REQUIRED. (a) If the executive director

authorizes a person who is not an employee of the commission to

sell tickets, the person must be licensed as a sales agent by the

commission.

(b) The executive director may establish a provisional license

or other classes of licenses necessary to regulate and administer

the quantity and type of lottery games provided at each licensed

location.

(c) The director shall attempt to license minority businesses as

sales agents in at least 20 percent of the licenses issued.

Implementation of this subsection must be consistent with

Sections 466.152-466.154 and the rest of this section.

(d) The director may license as a sales agent each person the

director believes will best serve the public convenience. The

director may not issue a license to a person to engage in

business exclusively as a sales agent. A license may not be

transferred or assigned to any other person or location.

(e) The director may issue a license to a person only if the

director finds that the person's experience, character, and

general fitness are such that the person's participation as a

sales agent will not detract from the integrity, security,

honesty, and fairness of the operation of the lottery.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.18,

eff. Sept. 1, 1995.

Sec. 466.152. LICENSE APPLICATION; FEE. (a) An applicant for a

license under this subchapter must apply to the division under

rules adopted by the commission, provide information necessary to

determine the applicant's eligibility for a license under Section

466.155, and provide other information considered necessary by

the commission.

(b) The applicant must include an application fee with each

application. The director shall set the application fee in an

amount that is at least sufficient to cover the costs incurred by

the division and by the Department of Public Safety to process

the application. The director shall determine from information

provided by the department the amount required for costs incurred

by the department and shall allocate those amounts to the

department at least monthly. If the director denies an

application for a license based on a factor listed in Section

466.154, the director shall refund one-half of the application

fee to the applicant. If the director denies an application based

on another factor, the director may not refund any part of the

application fee.

(c) Applications for licenses must be available for public

inspection during regular office hours.

(d) A separate license is required for each location at which

tickets are to be sold. A person who desires to operate more than

one location to sell tickets must submit a separate application

for each location.

(e) Fees collected under this section shall be deposited in the

state treasury to the credit of the state lottery account.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.19,

eff. Sept. 1, 1995.

Sec. 466.153. CHANGE IN APPLICATION INFORMATION. (a) Except as

provided by Subsection (b), an applicant or sales agent shall

notify the director of any change in the information in the

applicant's or sales agent's most recent application for a

license or renewal of a license. The applicant or sales agent

shall notify the director of the change in the information not

later than the 10th day after the date of the change.

(b) A corporate applicant or sales agent is not required to

notify the director under Subsection (a) of a transfer of less

than 10 percent of the corporate stock unless the transfer

results in a shareholder who previously held 10 percent or less

of the stock holding more than 10 percent of the stock.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993.

Sec. 466.154. RULES. The commission shall adopt rules under

which, before issuing a license to an applicant, the director

shall consider:

(1) the financial responsibility and security of the applicant

and the business or activity in which the applicant is engaged;

(2) the public accessibility of the applicant's place of

business or activity;

(3) the sufficiency of existing sales agents to serve the public

convenience;

(4) whether individuals under 18 years of age constitute a

majority of the applicant's customers or as customers provide a

majority of the applicant's sales volume;

(5) the volume of expected sales; and

(6) any other factor that the director considers appropriate.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.20,

eff. Sept. 1, 1995.

Sec. 466.155. DENIAL OF APPLICATION OR SUSPENSION OR REVOCATION

OF LICENSE. (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:

(A) delinquent in the payment of a tax or other money collected

by the comptroller, the Texas Workforce Commission, or the Texas

Alcoholic Beverage Commission;

(B) in default on a loan made under Chapter 52, Education Code;

or

(C) in default on a loan guaranteed under Chapter 57, Education

Code;

(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 beer

retailer's permit, mixed beverage permit, mixed beverage late

hours permit, private club registration permit, or private club

late hours permit issued under Chapter 25, 28, 29, 32, or 33,

Alcoholic Beverage Code; or

(5) has violated this chapter or a rule adopted under this

chapter.

(b) If the director proposes to deny an application for a

license or the 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 commission's

records. A notice must be served or mailed not later than the

20th day before the date of the hearing. The commission shall

provide for a formal administrative hearings process.

(c) At a hearing, an applicant or sales agent must show by a

preponderance of the evidence why the application should not be

denied or the license suspended or revoked.

(d) The director shall give an applicant or sales agent written

notice of a denial of an application or a suspension or

revocation of a license.

(e) The director may not issue a license to a person who has

previously had a license under this chapter revoked unless the

director is satisfied the person will comply with this chapter

and the rules adopted under this chapter. The director may

prescribe the terms under which a suspended license will be

reissued.

(f) The director may not issue a license to an applicant who

fails to certify to the director the applicant's compliance with

the federal Americans with Disabilities Act of 1990 (42 U.S.C.

Section 12101 et seq.).

(g) For purposes of Subsection (a)(3), the comptroller, Texas

Workforce Commission, Texas Alcoholic Beverage Commission, Texas

Higher Education Coordinating Board, and Texas Guaranteed Student

Loan Corporation shall each provide the executive director with a

report of persons who have been finally determined to be

delinquent in the payment of any money owed to or collected by

that agency. The commission shall adopt rules regarding the form

and frequency of reports under this subsection.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.21,

eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 696, Sec. 1, eff.

Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1275, Sec. 51, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 394, Sec. 1, eff. Sept.

1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 14.760, eff. Sept.

1, 2001.

Sec. 466.156. BOND; INSURANCE. (a) Each sales agent shall post

a cash bond, surety bond, letter of credit, certificate of

deposit, or other security approved by the executive director,

including the contribution of cash to a pooled bond fund

established by the executive director to protect the state from

possible losses. The amount of the security shall be determined

by the executive director and must reflect the possible losses to

the state from the operation of the sales agent. The total amount

retained in a pooled bond fund established under this subsection

may not exceed $5 million.

(b) The executive director may also require a sales agent to

maintain insurance if necessary to protect the interests of the

state.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.22,

eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 458, Sec. 1, eff.

Sept. 1, 1999.

Sec. 466.157. DISPLAY OF LICENSE. As prescribed by rule, each

sales agent shall prominently display the license in each place

of business or activity at which the sales agent sells tickets.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.22,

eff. Sept. 1, 1995.

Sec. 466.158. EXPIRATION OF LICENSE; RENEWAL. (a) Unless

suspended or revoked, a license expires on the date specified in

the license, which may not be later than the second anniversary

of its date of issuance.

(b) The commission shall adopt rules for the renewal of

licenses. The director shall set the fee for a renewal of a

license in an amount at least sufficient to cover the cost of

processing the renewal.

(c) A sales agent must file a renewal application and pay the

renewal fee before the sales agent's license expires.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.23,

eff. Sept. 1, 1995.

Sec. 466.159. DEATH, DISSOLUTION, OR BANKRUPTCY OF SALES AGENT.

(a) A license issued under this chapter expires on:

(1) the death of a sales agent who is an individual;

(2) the dissolution of a sales agent that is not an individual;

or

(3) the bankruptcy or receivership of a sales agent.

(b) If a license expires under Subsection (a) and the sales

agent's successor in interest desires to operate the sales

agency, the successor shall file an application for an extended

license not later than the 30th day after the date the license

expired. The application must state the basis for the applicant's

claim to be the successor in interest to the sales agent and must

contain a certification that the applicant would be eligible for

a license under Section 466.155. The director shall permit a

qualified applicant to operate under an extended license for not

more than one year or until a new license is issued to the

applicant, whichever occurs first.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993.

Sec. 466.160. SUMMARY SUSPENSION OF LICENSE. (a) The

commission may suspend a sales agent's license summarily without

notice or hearing if the 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 state and:

(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 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 commission may summarily suspend a sales agent's license

if proceedings for a preliminary hearing before the commission or

the commission's representative 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.

(c) At the preliminary hearing, the sales agent must show cause

why the license should not remain suspended pending a final

hearing on suspension or revocation. Chapter 2001 does not apply

in the administration and enforcement of the summary suspension

of a license under this section. The rules governing a hearing on

any other license suspension or revocation under this chapter

govern a final administrative hearing under this subsection.

(d) To initiate a proceeding to summarily suspend a sales

agent's license, the 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 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 commission.

If notice is served by mail, the sales agent shall immediately

return the license to the commission. If the sales agent uses an

on-line electronic terminal to sell tickets, the director or a

lottery operator on the instructions of the director may

terminate the connection of the terminal to the commission's

lottery computer at the time:

(1) the proceeding to summarily suspend the license is

initiated; or

(2) the 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 (a)(1).

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(50),

6.24, eff. Sept. 1, 1995.

Sec. 466.161. IMMUNITY; CIVIL ACTIONS. (a) A sales agent

acting in good faith is immune from civil liability for an act or

omission within the course and scope of the agent's license under

this chapter.

(b) This section does not waive any immunity of the commission

or this state.

(c) This section does not create a cause of action against this

state, the commission, a commission employee, or a sales agent.

(d) The immunity provided by Subsection (a) does not apply to a

cause of action for personal injury or wrongful death.

Added by Acts 2005, 79th Leg., Ch.

713, Sec. 1, eff. June 17, 2005.

SUBCHAPTER E. CRIMINAL HISTORY INVESTIGATIONS

Sec. 466.201. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION.

(a) The 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 investigation of:

(1) a sales agent or an applicant for a sales agent license;

(2) a person required to be named in a license application;

(3) a lottery operator or prospective lottery operator;

(4) an employee of a lottery operator or prospective lottery

operator, if the employee is or will be directly involved in

lottery operations;

(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 to the lottery;

(6) a person who has submitted a written bid or proposal to the

commission in connection with the procurement of goods or

services by the 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 commission to supply goods or services to the

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 person;

(C) holds an equitable interest greater than 10 percent in the

person;

(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 lottery-related

activities;

(F) shares or will share in the profits, other than stock

dividends, of the person;

(G) participates in managing the affairs of the person; or

(H) is an employee of the person who is or will be involved in:

(i) selling tickets; or

(ii) handling money from the sale of tickets.

(b) The 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 director;

or

(2) an employee or prospective employee of the commission.

(c) Not later than the first anniversary after the date of each

renewal, the commission shall obtain criminal history record

information maintained by the Department of Public Safety on a

sales agent whose license is renewed under Section 466.158.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.25,

eff. Sept. 1, 1995.

Sec. 466.202. FINGERPRINTS. (a) The executive director may

discharge from employment an employee of the 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 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 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.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.26,

eff. Sept. 1, 1995.

Sec. 466.203. DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS OF

INVESTIGATION. (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 for

the actual cost of an investigation.

(b) The executive director may require a person who is subject

to investigation to pay all costs of the investigation and to

provide any information, including fingerprints, necessary to

carry out the investigation or facilitate access to state or

federal criminal history record information. Payments made to the

executive director under this subsection shall be deposited in

the general revenue fund and may be used to reimburse the

Department of Public Safety for the actual costs 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 shall notify the executive director

of any change in information provided to the executive director

when the department learns of the change.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.27,

eff. Sept. 1, 1995.

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 Service

on:

(1) a sales agent or an applicant for a sales agent license;

(2) an employee or prospective employee of the commission;

(3) a person required to be named in a license application;

(4) a lottery operator or prospective lottery operator;

(5) an employee of a lottery operator or prospective lottery

operator, if the employee is or will be directly involved in

lottery operations;

(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 to the lottery;

(7) a person who has submitted a written bid or proposal to the

commission in connection with the procurement of goods or

services by the 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 commission to supply goods or services to the

commission.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.27,

eff. Sept. 1, 1995.

Sec. 466.205. CONFIDENTIAL INFORMATION. (a) All information

received by the executive director from the Internal Revenue

Service is confidential and may only be used as provided by the

contract between the comptroller and the Internal Revenue Service

under which the information was obtained.

(b) The commission shall adopt rules governing the custody and

use of criminal history record information obtained under this

subchapter. The comptroller shall adopt necessary rules

governing the custody and use of information obtained from the

Internal Revenue Service under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.28,

eff. Sept. 1, 1995.

SUBCHAPTER F. REGULATION OF GAMES

Sec. 466.251. TICKETS. (a) The executive director shall

prescribe the form of tickets.

(b) Repealed by Acts 2003, 78th Leg., ch. 198, Sec. 2.72(b).

(c) The overall estimated odds of winning a prize in a

particular lottery game must be printed on each ticket and

prominently displayed in association with the sale of lottery

products. The estimate must be based on reasonable projections

and past experience.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.29,

eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 198, Sec. 2.72(b),

eff. Sept. 1, 2003.

Sec. 466.252. PURCHASE OF TICKET AGREEMENT TO ABIDE BY RULES.

(a) By purchasing a ticket in a particular lottery game, a

player agrees to abide by and be bound by the commission's rules,

including the rules applicable to the particular lottery game

involved. The player also acknowledges that the determination of

whether the player is a valid winner is subject to:

(1) the commission's rules and claims procedures, including

those developed for the particular lottery game involved; and

(2) any validation tests established by the commission for the

particular lottery game involved.

(b) If the lottery uses tickets, an abbreviated form of the

rules or a reference to the rules may appear on the tickets.

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug.

30, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 6.30,

eff. Sept. 1, 1995.

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 the person is:

(1) a member, officer, or employee of a person that has a

contract with the 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 leasin