S.B. No. 3070         AN ACT   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 criminal   offenses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 411.093(a), Government Code, is amended   to read as follows:          (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   Chapter 1001, Education Code;                      (B)  a license under Chapter 466;                      (C)  a license under Chapter 202, Occupations   Code;                      (D) [(C)]  a license under Chapter 401,   Occupations Code;                      (E) [(D)]  a license under Chapter 402,   Occupations Code; [or]                      (F)  a license under Chapter 2001, Occupations   Code; or                      (G) [(E)]  an instructor license or motorcycle   school license under Chapter 662, Transportation Code;                (2)  a person who is:                      (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                (3)  a person who:                      (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   (A).          SECTION 2. Section 411.467(d), Government Code, is amended   to read as follows:          (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   [Lottery Commission]; and                (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   of Licensing and Regulation.                (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   PROGRAM. (a)  The Sunset Advisory Commission shall conduct a   limited-scope review of the state lottery program during the state   fiscal biennium ending August 31, 2029, in the manner provided by   Chapter 325 (Texas Sunset Act).          (b)  In conducting the limited-scope review under this   section, the Sunset Advisory Commission's staff evaluation and   report must be limited to:                (1)  assessing whether the department has sufficient   tools, programs, and procedures to ensure the integrity of the   state lottery program;                (2)  the transfer of the state lottery program to the   department;                (3)  the extent to which the department is implementing   and enforcing statutory changes enacted by the 89th and 90th   Legislatures; and                (4)  whether the department remains the appropriate   agency to administer the state lottery program.          (c)  Unless continued in existence, the state lottery is   abolished and this chapter expires September 1, 2029.          SECTION 5.  The heading to Section 466.014, Government Code,   is amended to read as follows:          Sec. 466.014.  POWERS AND DUTIES OF DEPARTMENT [COMMISSION]   AND EXECUTIVE DIRECTOR.          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, Government Code, is amended by   amending Subsection (b) and adding Subsection (d) to read as   follows:          (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 or   facilitating the play of a lottery game by telephone or through an   Internet application or mobile Internet application in violation of   Section 466.318.          (d)  The commission may not adopt a rule under this section   that is inconsistent with any provision of state law.          SECTION 8. Subchapter B, Chapter 466, Government Code, is   amended by adding Section 466.0171 to read as follows:          Sec. 466.0171. ANNUAL AUDIT.  (a)  The state auditor shall   annually conduct a comprehensive audit of the department's state   lottery program, including any department action taken relating to   the program.          (b) Each audit required by Subsection (a) must specifically   identify any lottery program action or activity that varies from a   lottery program action or activity identified in a preceding audit   conducted by the state auditor.          SECTION 9.  Section 466.018, Government Code, is amended to   read as follows:          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   vendor, or a lottery operator.          SECTION 10.  Section 466.019, Government Code, is amended to   read as follows:          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   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 department [commission].          SECTION 11.  Sections 466.020(a), (c), and (d), Government   Code, are amended to read as follows:          (a)  The executive director shall maintain an office [a   department] of security within the department [in the commission].     The office of security shall assist the executive director in   addressing any security-related matter arising under this chapter   or Chapter 2001, Occupations Code.  The office may coordinate as   necessary with the financial crimes intelligence center   established under Chapter 2312, Occupations Code, for assistance   with investigations, to receive guidance on security-related   matters, and to provide information relevant to the office's   operations [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].          (c)  A security officer or investigator employed by the   office [department] of security or a peace officer who is working in   conjunction with the department [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 department's   [commission's] request, shall perform a full criminal background   investigation of a prospective [deputy or] investigator of the   office [department] of security.  The department [commission]   shall reimburse the Department of Public Safety for the actual   costs of an investigation.          SECTION 12.  Section 466.022, Government Code, is amended to   read as follows:          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   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;                (3)  the street address and telephone number of a prize   winner, if the prize winner has not consented to the release of the   information; and                (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 13.  Section 466.023(b), Government Code, is amended   to read as follows:          (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 14.  Section 466.026, Government Code, is amended to   read as follows:          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   the lottery operator system.          SECTION 15.  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   advertising of the game.          (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.          SECTION 16.  Subchapter B, Chapter 466, Government Code, is   amended by adding Sections 466.029 and 466.030 to read as follows:          Sec. 466.029.  PRESERVATION OF LOTTERY-RELATED DOCUMENTS.   (a)  Notwithstanding any other law, the department shall preserve   all department records, including e-mails, relating to the   operation of the state lottery until at least the first anniversary   of the last date the record is modified.          (b)  The department may not use a software program to   automatically delete a record relating to the operation of the   state lottery on a date earlier than the last day of the period   specified by Subsection (a).          Sec. 466.030.  REQUIRED RECORDING OF CERTAIN STATE LOTTERY   MEETINGS.  (a)  The department shall make and maintain a recording   of any formal meeting of the commission related to the state lottery   or of the lottery advisory committee.          (b)  The department shall maintain the recording described   by Subsection (a) until at least the fifth anniversary of the   meeting date.          SECTION 17.  Section 466.105(b), Government Code, is amended   to read as follows:          (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   if possible.          SECTION 18.  Section 466.106(a), Government Code, is amended   to read as follows:          (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   equal.          SECTION 19.  Sections 466.107(a) and (c), Government Code,   are amended to read as follows:          (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   department [commission];                      (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   department [commission]; and                (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 20.  Section 466.108, Government Code, is amended to   read as follows:          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 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 21.  Section 466.109, Government Code, is amended to   read as follows:          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 22.  Section 466.110, Government Code, is amended to   read as follows:          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   ticket or number.          SECTION 23.  Section 466.151(a), Government Code, is amended   to read as follows:          (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   [commission].          SECTION 24.  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   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 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   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                (5)  has violated this chapter or a rule adopted under   this chapter.          (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   license will be reissued.          (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 25.  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   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 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   initiated; or                (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   (a)(1).          SECTION 26.  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]   employee, or a sales agent.          SECTION 27.  Section 466.201, Government Code, is amended to   read as follows:          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   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 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   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 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 director; or                (2)  a [an employee or] prospective employee of the   department who the executive director determines:                      (A)  has or will have access to sensitive or   confidential data relating to this chapter or Chapter 2001,   Occupations Code; or                      (B)  has or will have as the employee's or   prospective employee's primary role the administration of this   chapter or Chapter 2001, Occupations Code [commission].          (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   466.158.          SECTION 28.  Section 466.202, Government Code, is amended to   read as follows:          Sec. 466.202.  FINGERPRINTS.  (a)  The executive director   may discharge from employment or [an employee of the commission who   fails to provide a complete legible set of fingerprints on   request.  The executive director may] refuse to consider, as   applicable, an employee or [a] prospective employee of the   department [commission] who fails to provide a complete legible set   of fingerprints for purposes of conducting an investigation and   obtaining criminal history record information under Section   466.201(b)(2) [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 29.  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 30.  Section 466.204, Government Code, is amended to   read as follows:          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   department [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 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 31.  Section 466.254, Government Code, is amended to   read as follows:          Sec. 466.254.  PURCHASE OF TICKET BY OR PAYMENT OF PRIZE TO   CERTAIN PERSONS; CRIMINAL OFFENSE.  (a)  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 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   operator;                (3)  an officer or employee of the department   [commission]; or                (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).          (b)  A person commits an offense if the person violates   Subsection (a). An offense under this subsection is a Class A   misdemeanor.          SECTION 32.  Subchapter F, Chapter 466, Government Code, is   amended by adding Sections 466.255, 466.257, 466.258, and 466.259   to read as follows:          Sec. 466.255.  LIMITATION ON NUMBER OF LOTTERY TICKETS PER   TRANSACTION; CRIMINAL OFFENSE.  (a)  A person may not sell to one   individual more than 100 lottery tickets in a single transaction.          (b)  A person commits an offense if the person violates   Subsection (a).  An offense under this subsection is a Class B   misdemeanor.          Sec. 466.257.  METHOD, LOCATION, AND HOURS FOR PURCHASE OF   TICKET.  A person may only purchase a ticket:                (1)  in person;                (2)  at the location of a licensed sales agency; and                (3)  during the normal business hours of the licensed   sales agency.          Sec. 466.258.  REQUIRED AGE VERIFICATION OF TICKET   PURCHASER; CRIMINAL OFFENSE.  (a)  A licensed sales agent or an   employee of a sales agent shall use an age verification process   prescribed by commission rule to verify the age of each ticket   purchaser at the point of sale.          (b)  A person who violates Subsection (a) commits an offense.   An offense under this subsection is a Class B misdemeanor.          Sec. 466.259.  LIMITATION ON CERTAIN LOTTERY EQUIPMENT. (a)     The commission by rule shall limit the access at a sales agent's   licensed location to lottery vending machines, lottery computer   terminals, or other equipment that prints lottery tickets in a   number disproportionate to the amount of legitimate retail business   conducted at the location.          (b)  Unless otherwise provided by commission rules adopted   under Subsection (a), the department may not provide to a sales   agent's licensed location more than five lottery vending machines,   lottery computer terminals, or other equipment dedicated to   printing lottery tickets.          SECTION 33.  Section 466.302(a), Government Code, is amended   to read as follows:          (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 34.  Section 466.3051, Government Code, is amended   by amending Subsections (a) and (d) and adding Subsection (g) 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   compliance with this section.          (g)  The commission or department may not take any   disciplinary action against a sales agent to whom Subsection (a)   applies if:                (1)  the sales agent's employee electronically accessed   the electronically readable information on the ticket purchaser's   driver's license, commercial driver's license, or personal   identification certificate; and                (2)  the transaction scan device used to electronically   access the purchaser's electronically readable information   identified the license or certificate as valid and the purchaser as   18 years of age or older on the purchase date.          SECTION 35.  Section 466.3052(a), Government Code, is   amended to read as follows:          (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:                (1)  United States currency;                (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   card;                (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 36.  Section 466.311(b), Government Code, is amended   to read as follows:          (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 37.  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   application:                (1)  purchase or order the purchase of a ticket for a   lottery game; or                (2)  for compensation:                      (A)  accept an order for a ticket for a lottery   game from a player;                      (B)  sell a ticket for a lottery game to a player;   or                      (C)  arrange:                            (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   section.          (c)  An offense under Subsection (a)(1) is a Class A   misdemeanor.          (d)  An offense under Subsection (a)(2) is a Class A   misdemeanor.          SECTION 38.  Section 466.401(a), Government Code, is amended   to read as follows:          (a)  The office [department] of security shall supervise   ticket validation and lottery drawings.          SECTION 39.  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   winner was selected.          (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   use in subsequent games.          (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 40.  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   duress;                      (B)  is not delinquent in payment of child support   under a court or administrative order issued in this state or   another state;                      (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   assignment;                      (D)  understands that the assignor will not   receive the prize payments, or portions of the prize payments, for   the assigned years;                      (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   larger:                            (i)  the payments being assigned, by amounts   and payment dates;                            (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   order.          (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   letter or ruling.          SECTION 41.  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   466.4075.          SECTION 42.  Subchapter I, Chapter 466, Government Code, is   amended by adding Section 466.412 to read as follows:          Sec. 466.412.  REQUIRED FORM FOR PRIZE WINNERS.     Notwithstanding any other law, the director may not authorize   payment of a prize until the prize winner submits to the department   any form required by the Internal Revenue Service and the   department independently verifies the form information.          SECTION 43.  Section 466.451, Government Code, is amended to   read as follows:          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 44.  Section 466.452(b), Government Code, is amended   to read as follows:          (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 45.  Section 466.453, Government Code, is amended to   read as follows:          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 46.  Section 544.0456(c), Government Code, is   amended to read as follows:          (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   lottery winnings;                (2)  use the database system developed under Section   532.0201 to:                      (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   terminated; and                (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 47.  Sections 572.003(b) and (c), Government Code,   are amended to read as follows:          (b)  The term means:                (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   Utility Counsel;                (4)  the executive director of the State Bar of Texas;                (5)  [the director of the lottery division of the Texas   Lottery Commission;                [(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   Commission]; or                (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   System of Texas;                (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   College--Waco;                (16)  the Texas Higher Education Coordinating Board;                (17)  the Texas Workforce Commission;                (18)  the board of trustees of the Teacher Retirement   System of Texas;                (19)  the Credit Union Commission;                (20)  the School Land Board;                (21)  the board of the Texas Department of Housing and   Community Affairs;                (22)  the Texas Racing Commission;                (23)  the State Board of Dental Examiners;                (24)  the Texas Medical Board;                (25)  the Board of Pardons and Paroles;                (26)  the Texas State Board of Pharmacy;                (27)  the Department of Information Resources   governing board;                (28)  the board of the Texas Department of Motor   Vehicles;                (29)  the Texas Real Estate Commission;                (30)  the board of directors of the State Bar of Texas;                (31)  the Bond Review Board;                (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   Texas.          SECTION 48.  Section 2054.007(a), Government Code, is   amended to read as follows:          (a)  The lottery program [division] of the Texas [Lottery]   Commission of Licensing and Regulation is not subject to the   planning and procurement requirements of this chapter.          SECTION 49.  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   judicial or other proceeding.                (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   advertising;                      (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                      (D)  a sales agent.                (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 50.  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   involving moral turpitude; or                (2)  is not a citizen of the United States.          SECTION 51.  Section 467.025, Government Code, is   transferred to Subchapter B, Chapter 51, Occupations Code,   redesignated as Section 51.061, Occupations Code, and amended to   read as follows:          Sec. 51.061  [467.025].  PROHIBITED CONDUCT.  (a)  A   commission member may not:                (1)  accept any employment or remuneration from:                      (A)  a person that has a significant financial   interest in the lottery; or                      (B)  a bingo commercial lessor, bingo   distributor, or bingo manufacturer;                (2)  play any lottery or bingo game conducted in this   state;                (3)  accept or be entitled to accept any part of the   winnings to be paid from a lottery or bingo game conducted in this   state;                (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 52.  Section 467.036, Government Code, is   transferred to Subchapter B, Chapter 51, Occupations Code,   redesignated as Section 51.062, Occupations Code, and amended to   read as follows:          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   to appoint to the commission.          (b)  The department [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   department employs or [commission] intends to employ who has or   will have access to sensitive or confidential data relating to this   chapter, Chapter 466, Government Code, or Chapter 2001 of this   code.          SECTION 53.  Section 467.101, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.2011, Occupations Code, and amended to   read as follows:          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   state under:                (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   under:                (1)  Chapter 2001 [, Occupations Code]; and                (2)  Chapter 466, Government Code [of this code].          SECTION 54.  Section 467.104, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.212, Occupations Code, and amended to   read as follows:          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,   Government Code.          (b)  The executive director shall keep the records described   by Subsection (a) [of the commission].          SECTION 55.  Section 467.105, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.213, Occupations Code, and amended to   read as follows:          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   criminal proceeding.          SECTION 56.  Section 467.106, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.214, Occupations Code, and amended to   read as follows:          Sec. 51.214  [467.106].  GIFT OR POLITICAL CONTRIBUTION TO   OFFICER OR EMPLOYEE.  (a)  A commission member, the executive   director, or an employee of the department [commission] may not   intentionally or knowingly accept a gift or political contribution   from:                (1)  a person that has a significant financial interest   in the lottery;                (2)  a person related in the first degree of   consanguinity or affinity to a person that has a significant   financial interest in the lottery;                (3)  a person that owns more than a 10 percent interest   in an entity that has a significant financial interest in the   lottery;                (4)  a political committee that is directly   established, administered, or controlled, in whole or in part, by a   person that has a significant financial interest in the lottery; or                (5)  a person who, within the two years preceding the   date of the gift or contribution, won a lottery prize exceeding $600   in amount or value.          (b)  A person may not make a gift or political contribution   to a person known by the actor to be a commission member, the   executive director, or an employee of the department [commission],   if the actor:                (1)  has a significant financial interest in the   lottery;                (2)  is related in the first degree of consanguinity or   affinity to a person that has a significant financial interest in   the lottery;                (3)  owns more than a 10 percent interest in an entity   that has a significant financial interest in the lottery;                (4)  is a political committee that is directly   established, administered, or controlled, in whole or in part, by a   person that has a significant financial interest in the lottery; or                (5)  within the two years preceding the date of the gift   or contribution, won a lottery prize exceeding $600 in amount or   value.          (c)  A person commits an offense if the person violates this   section.  An offense under this section is a Class A misdemeanor.          SECTION 57.  Section 467.107, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.215, Occupations Code, and amended to   read as follows:          Sec. 51.215  [467.107].  GIFT OR POLITICAL CONTRIBUTION TO   FORMER OFFICER OR EMPLOYEE.  (a)  A former commission member,   former executive director, or former employee of the department   [commission] may not, before the second anniversary of the date   that the person's service in office or employment with the   department [commission] ceases, intentionally or knowingly accept   a gift or political contribution from:                (1)  a person that has a significant financial interest   in the lottery;                (2)  a person related in the first degree of   consanguinity or affinity to a person that has a significant   financial interest in the lottery;                (3)  a person that owns more than a 10 percent interest   in an entity that has a significant financial interest in the   lottery;                (4)  a political committee that is directly   established, administered, or controlled, in whole or in part, by a   person that has a significant financial interest in the lottery; or                (5)  a person who, within the two years preceding the   date of the gift or contribution, won a lottery prize exceeding $600   in amount or value.          (b)  A person may not make a gift or political contribution   to a person known by the actor to be a former commission member,   former executive director, or former employee of the department   [commission], if the actor:                (1)  has a significant financial interest in the   lottery;                (2)  is related in the first degree of consanguinity or   affinity to a person that has a significant financial interest in   the lottery;                (3)  owns more than a 10 percent interest in an entity   that has a significant financial interest in the lottery;                (4)  is a political committee that is directly   established, administered, or controlled, in whole or in part, by a   person that has a significant financial interest in the lottery; or                (5)  within the two years preceding the date of the gift   or contribution, won a lottery prize exceeding $600 in amount or   value.          (c)  A person commits an offense if the person violates this   section.  An offense under this section is a Class A misdemeanor.          SECTION 58.  Section 467.108, Government Code, is   transferred to Subchapter D, Chapter 51, Occupations Code,   redesignated as Section 51.216, Occupations Code, and amended to   read as follows:          Sec. 51.216  [467.108].  REPRESENTATION BY FORMER OFFICER   OR EMPLOYEE.  (a)  A former commission member or[,] former   executive director[, or former director] may not:                (1)  for compensation, represent a person that has made   or intends to make a bid to operate the lottery before the   department or commission before the second anniversary of the date   that the person's service in office or employment with the   department or commission ceases;                (2)  represent any person or receive compensation for   services rendered on behalf of any person regarding a particular   matter in which the former officer or employee participated during   the period of service or employment with the department or   commission, either through personal involvement or because the   matter was within the scope of the officer's or employee's official   responsibility; or                (3)  for compensation communicate directly with a   member of the legislative branch to influence legislation on behalf   of a person that has a significant financial interest in the   lottery, before the second anniversary of the date that the   person's service in office or employment with the department or   commission ceases.          (b)  A person commits an offense if the person violates this   section.  An offense under this section is a Class A misdemeanor.          SECTION 59.  Subchapter D, Chapter 51, Occupations Code, is   amended by adding Sections 51.217 and 51.218 to read as follows:          Sec. 51.217.  LOTTERY ADVISORY COMMITTEE. (a)  The   commission shall establish a lottery advisory committee to provide   external expertise on the lottery.  The commission shall appoint to   the advisory committee members who represent a balance of   interests, including representatives of:                (1)  the public;                (2)  licensed sales agents;                (3)  interest groups with divergent viewpoints on the   lottery and lottery operations; and                (4)  entities associated with or benefiting from the   lottery's contributions to this state.          (b)  In appointing advisory committee members under   Subsection (a), the commission shall appoint:                (1)  one member with experience in lottery law   enforcement;                (2)  one member with experience in lottery legal   matters; and                (3)  one member with experience in lottery finance.          (c)  A lottery advisory committee member serves at the   pleasure of the commission.          (d)  A lottery advisory committee member is not entitled to   receive compensation or reimbursement for serving as a member.          (e)  The lottery advisory committee shall:                (1)  advise the commission and department on the needs   and problems of this state's lottery industry;                (2)  provide input on proposed lottery rules during   development and before final adoption unless an emergency requires   immediate action by the commission;                (3)  report regularly to the commission and department   on the advisory committee's activities;                (4)  regularly brief the commission and department on   advancements and challenges in this state's lottery industry; and                (5)  perform other duties as determined by the   commission or department.          (f)  The commission shall adopt rules to govern the lottery   advisory committee, including rules on:                (1)  member composition, appointment procedures, and   terms;                (2)  quorum requirements for advisory committee   meetings;                (3)  additional representation requirements for and   qualifications of advisory committee members, including experience   or geographic location;                (4)  any necessary training requirements for advisory   committee members; and                (5)  the method for the public to provide comments on   issues the advisory committee considers.          (g)  The lottery advisory committee shall meet quarterly or   at the commission's or department's request.          (h)  The commission may not adopt a rule that restricts the   lottery advisory committee from discussing any lottery-related   topic.          (i)  Each meeting of the lottery advisory committee shall be   open to the public.          Sec. 51.218.  ANNUAL REPORT. (a)  The department annually   shall submit a report to the governor and the legislature that:                (1)  includes a summary of lottery revenue, prize   disbursements, and other expenses for the state fiscal year   preceding the report;                (2)  includes a comprehensive business plan to guide   the department's major lottery initiatives that contains:                      (A)  specific goals for the department; and                      (B)  an evaluation of:                            (i)  the department's overall performance on   lottery operations;                            (ii)  the effectiveness of specific lottery   programs and initiatives;                            (iii)  the efficiency of the department's   lottery operations;                            (iv)  the amount of lottery revenue   generated for state purposes other than the payment of prizes; and                            (v)  the factors affecting the amount of   lottery revenue received and disbursed, including ticket sales and   administrative efficiency;                (3)  addresses the trends and issues related to   violations of state laws under the department's lottery and bingo   jurisdiction identified:                      (A)  in complaints submitted under Section 51.252   as analyzed to identify the trends and issues by alleged violation   type and to evaluate the effectiveness of the department's   enforcement process; and                      (B)  through an inspection, audit, or other means   of regulating lottery operations under Chapter 466, Government   Code, and bingo under Chapter 2001;                (4)  includes for the preceding calendar year   charitable bingo information on:                      (A)  the total amount reported by licensed   authorized organizations of adjusted gross receipts from bingo   operations under Chapter 2001;                      (B)  the total amount reported by licensed   authorized organizations of net proceeds from bingo operations   under Chapter 2001; and                      (C)  a comparison of the amounts reported under   Paragraphs (A) and (B), including the percentage the net proceeds   represents compared to the adjusted gross receipts; and                (5)  provides biennial recommendations to the   legislature on emerging trends, technological advancements,   regulatory developments, and market dynamics affecting the lottery   and bingo industries.          (b)  For purposes of Subsection (a)(4):                (1)  the term "adjusted gross receipts" means the   amount remaining after deducting prizes paid but excluding prize   fees collected from bingo players; and                (2)  the department shall determine the total amount of   net proceeds in a manner that does not reduce gross receipts by the   amount of rent paid for the rental of bingo premises by a licensed   authorized organization to another licensed authorized   organization if the other organization pays rent for the premises   to a licensed commercial lessor.          SECTION 60.  Section 2001.002, Occupations Code, is amended   by amending Subdivisions (8) and (25-a) and adding Subdivisions   (8-a) and (10) to read as follows:                (8)  "Commission" means the Texas [Lottery] Commission   of Licensing and Regulation.                (8-a) "Department" means the Texas Department of   Licensing and Regulation.                (10)  "Executive director" means the executive   director of the department.                (25-a)  "Regular license" means a license to conduct   bingo issued by the department [commission] under Subchapter C that   is not a temporary license.          SECTION 61.  Section 2001.003, Occupations Code, is amended   to read as follows:          Sec. 2001.003.  REGULATORY FUNDING FROM LICENSE FEES AND   BINGO PRIZE FEES.  It is the intent of the legislature that the   funding necessary for the administration of this chapter by the   department [commission] be collected by the department   [commission] from commercial lessor, manufacturer, and distributor   license fees and money paid to the department [commission] by bingo   players as bingo prize fees.          SECTION 62.  The heading to Subchapter B, Chapter 2001,   Occupations Code, is amended to read as follows:   SUBCHAPTER B. DEPARTMENT [COMMISSION] POWERS AND DUTIES          SECTION 63.  Subchapter B, Chapter 2001, Occupations Code,   is amended by adding Section 2001.0501 to read as follows:          Sec. 2001.0501.  ALLOCATION OF POWERS AND DUTIES. A power   granted or duty assigned to the commission under this chapter is a   power or duty of the executive director, the department, or the   commission, as established by commission rule.          SECTION 64.  Section 2001.053, Occupations Code, is amended   to read as follows:          Sec. 2001.053.  OFFICERS AND INVESTIGATORS.  The department   [commission] may employ officers or investigators the department   [commission] considers necessary to administer this chapter.          SECTION 65.  Sections 2001.056(b), (c), (d), and (e),   Occupations Code, are amended to read as follows:          (b)  A license holder may not use or distribute a bingo card   unless the card has been approved by the department [commission].          (c)  The department [commission] may set the price or adopt a   schedule of prices for the sale or provision of bingo cards by a   licensed authorized organization.          (d)  A licensed authorized organization may not sell or   provide a bingo card at a price other than a price authorized by the   department [commission] or a schedule adopted by the department   [commission].          (e)  The commission by rule may require a licensed authorized   organization to notify the department [commission] of the price for   bingo cards the organization will use for one or more reporting   periods.          SECTION 66.  Section 2001.057, Occupations Code, is amended   by amending Subsections (a), (d), (e), (f), and (g) and adding   Subsection (h) to read as follows:          (a)  The commission shall [may] appoint a bingo advisory   committee consisting of nine members.  The commission shall appoint   members representing a balance of interests including   representatives of:                (1)  the public;                (2)  charities that operate bingo games; and                (3)  commercial and charity lessors that participate in   the bingo industry.          (d)  A committee member is not entitled to receive   compensation or reimbursement for serving as a member.  [A   committee member is entitled to reimbursement for reasonable   expenses incurred in performing duties as a member.]          (e)  The bingo advisory committee shall [may]:                (1)  advise the commission and department on the needs   and problems of the state's bingo industry;                (2)  provide input [comment] on rules involving bingo   during their development and before final adoption unless an   emergency requires immediate action by the commission;                (3)  report regularly [annually] to the commission and   department on the committee's activities; [and]                (4)  regularly brief the commission and department on   advancements and challenges in this state's bingo industry; and                (5)  perform other duties as determined by the   commission or department.          (f)  The bingo advisory committee shall [may] meet quarterly   or at the commission's or department's request.          (g)  The commission shall [may] adopt rules:                (1)  to govern the operations of the bingo advisory   committee; and                (2)  to prohibit the committee's involvement in   committee member selection.          (h)  The commission may not adopt a rule that prohibits or   restricts the bingo advisory committee from discussing any   bingo-related topic.  This subsection may not be construed to   require action by the commission on each item submitted by the   committee or otherwise alter the commission's decision-making   authority.          SECTION 67.  Section 2001.058, Occupations Code, is amended   to read as follows:          Sec. 2001.058.  PUBLIC INFORMATION.  (a)  The department   [commission] shall provide to any person on request a printed copy   of this chapter and the rules applicable to the enforcement of this   chapter.          (b)  The department [commission] may charge a reasonable   amount for a copy provided under this section.          SECTION 68.  Sections 2001.059(b) and (f), Occupations Code,   are amended to read as follows:          (b)  The commission shall respond to a request under   Subsection (a) not later than the later of the second commission   meeting or the 60th day after the date a request is received, unless   the commission determines that the request does not contain   sufficient facts to provide an answer on which the requestor may   rely.  In that event, the commission shall request additional   information from the requestor not later than the 10th day after the   date the request is received.  If the commission requests   additional information, the commission shall respond to the request   not later than the later of the second commission meeting or the   60th day after the date additional information is received pursuant   to the request for additional information.          (f)  The commission may delegate all or part of the authority   and procedures for issuing advisory opinions under this section to   an employee of the department [commission].          SECTION 69.  Section 2001.152, Occupations Code, is amended   by amending Subsection (b) and adding Subsection (c) to read as   follows:          (b)  Notwithstanding Subsection (a) and subject to   Subsection (c), a person who was a licensed commercial lessor on   June 10, 1989, whose license has been in effect continuously since   that date, and who is otherwise eligible for the license may renew   the license.          (c)  The commission may place an administrative hold on the   license of a licensed commercial lessor described by Subsection (b)   for a period the commission determines not to exceed 10 years.  If   the administrative hold on the license remains on the last day of   that period:                (1)  the commission shall remove the administrative   hold; and                (2)  the lessor is not eligible to renew the license as   a continuous license holder under Subsection (b).          SECTION 70.  Section 2001.407, Occupations Code, is amended   by amending Subsection (c) and adding Subsections (c-1), (c-2),   (c-3), and (c-4) to read as follows:          (c)  Except as provided by Subsection (c-1), a [A] licensed   distributor may not receive by purchase or otherwise bingo   equipment or supplies from a person other than a licensed   manufacturer or another licensed distributor.          (c-1)  A licensed distributor may receive bingo equipment or   supplies from a licensed authorized organization if:                (1)  the distributor delivered the equipment or   supplies to the organization; and                (2)  the equipment or supplies were:                      (A)  defective;                      (B)  not ordered by the organization; or                      (C)  delivered in a quantity that exceeds the   quantity the organization ordered.          (c-2)  A licensed authorized organization that returns bingo   equipment or supplies to the licensed distributor as provided by   Subsection (c-1) shall:                (1)  maintain a record specifying for each returned   equipment or supply:                      (A)  a reason for the return from the reasons   listed in Subsection (c-1)(2); and                      (B)  the quantity returned; and                (2)  provide a copy of the record to the distributor.          (c-3)  A licensed distributor that receives returned   equipment or supplies from a licensed authorized organization as   provided by Subsection (c-1) shall:                (1)  maintain a record showing receipt of the returned   equipment or supplies; and                (2)  provide a copy of the record to the organization.          (c-4)  A licensed authorized organization may transfer a   card-minding device from the premises of the organization to the   premises of another licensed authorized organization if each   licensed authorized organization agrees to the transfer.          SECTION 71.  Sections 2001.451(h) and (j), Occupations Code,   are amended to read as follows:          (h)  Except as provided by Subsection (j), a licensed   authorized organization or a unit of licensed authorized   organizations may retain operating capital in the organization's or   unit's bingo account in an amount that:                (1)  is equal to the organization's or unit's actual   average bingo expenses per quarter based on the preceding license   period, excluding prizes paid; and                (2)  does not exceed a total of $100,000 [$50,000] for a   single organization or $100,000 [$50,000] for each member of a unit   unless:                      (A)  the commission by rule establishes a higher   amount for all organizations or units or one or more classes of   organizations or units; or                      (B)  the bingo operations director, on request,   raises the operating capital limit for one organization or unit as   necessary to facilitate the operation of the organization or unit.          (j)  The commission shall adopt rules allowing a licensed   authorized organization to retain a maximum amount of operating   capital in the bingo account in excess of the amount provided by   Subsection (h) if the organization:                (1)  has conducted bingo for less than one year;                (2)  has been closed for at least six months;                (3)  experiences circumstances beyond the control of   the organization, including force majeure, that necessitate an   increase in operating capital; or                (4) [(3)]  provides to the commission a credible   business plan for the conduct of bingo or for the organization's   existing or planned charitable purposes that an increase in   operating capital will reasonably further.          SECTION 72.  Section 2001.557, Occupations Code, is amended   by amending Subsection (a) and adding Subsection (c) to read as   follows:          (a)  The department [commission], its officers or agents, or   a state, municipal, or county peace officer may enter and inspect   the contents of premises where:                (1)  bingo is being conducted or intended to be   conducted; or                (2)  equipment used or intended for use in bingo is   found.          (c)  In developing and implementing a policy or procedure   under Subsection (b), the commission shall consult with the bingo   advisory committee established under Section 2001.057 to   collaboratively define and implement specific fiscal   accountability criteria for inspections of premises.          SECTION 73.  Sections 2001.560(c), (c-1), (c-2), and (e),   Occupations Code, are amended to read as follows:          (c)  The department [commission] or a person authorized in   writing by the department [commission] may examine the books,   papers, records, equipment, and place of business of a license   holder and may investigate the character of the license holder's   business to verify the accuracy of a return, statement, or report   made, or, if no return is made by the license holder, to ascertain   and determine the amount required to be paid.          (c-1)  The commission by rule shall develop a policy for   auditing license holders.  The department [bingo division] shall   use audit risk analysis procedures established by the commission   to:                (1)  annually identify the [which] license holders   [are] most at risk of violating this chapter or rules adopted under   this chapter, including consideration of license holder compliance   history in the identification; and                (2)  develop a plan for auditing the identified license   holders that includes:                      (A)  a schedule for the audits of the identified   license holders;                      (B)  procedures to annually update the plan based   on successive risk analyses; and                      (C)  a completion date for each audit that is not   later than the fifth anniversary of the date the license holder was   identified as a candidate for audit.          (c-2)  The department [bingo division] shall provide to the   commission a copy of the auditing plan developed under Subsection   (c-1).          (e)  If the department [commission] determines that a person   is not complying with this chapter, the department [commission]   shall notify the attorney general and the governing body of the   appropriate political subdivision.          SECTION 74.  Section 47.09(a), Penal Code, is amended to   read as follows:          (a)  It is a defense to prosecution under this chapter that   the conduct:                (1)  was authorized under:                      (A)  Chapter 2001, Occupations Code;                      (B)  Chapter 2002, Occupations Code;                      (C)  Chapter 2004, Occupations Code;                      (D)  Subtitle A-1, Title 13, Occupations Code   (Texas Racing Act); or                      (E)  Chapter 280, Finance Code;                (2)  consisted entirely of participation in the state   lottery authorized by Chapter 466, Government Code; or                (3)  was a necessary incident to the operation of the   state lottery and was directly or indirectly authorized by:                      (A)  Chapter 466, Government Code;                      (B)  [the lottery division of the Texas Lottery   Commission;                      [(C)]  the Texas Department of Licensing and   Regulation [Lottery Commission]; or                      (C) [(D)]  the executive director of [the lottery   division of] the Texas Department of Licensing and Regulation   [Lottery Commission].          SECTION 75.  Section 721.003(a), Transportation Code, is   amended to read as follows:          (a)  The governing bodies of the following state agencies or   divisions by rule may exempt from the requirements of Section   721.002 a motor vehicle that is under the control and custody of the   agency or division:                (1)  Texas Commission on Fire Protection;                (2)  Texas State Board of Pharmacy;                (3)  Department of State Health Services [and   Department of Aging and Disability Services];                (4)  Department of Public Safety of the State of Texas;                (5)  Texas Department of Criminal Justice;                (6)  Board of Pardons and Paroles;                (7)  Parks and Wildlife Department;                (8)  Railroad Commission of Texas;                (9)  Texas Alcoholic Beverage Commission;                (10)  Texas Department of Banking;                (11)  Department of Savings and Mortgage Lending;                (12)  Texas Juvenile Justice Department;                (13)  Texas Commission on Environmental Quality;                (14)  Texas Department of Licensing and Regulation    [Lottery Commission];                (15)  the office of the attorney general;                (16)  Texas Department of Insurance;                (17)  Texas Military Department; and                (18)  an agency that receives an appropriation under an   article of the General Appropriations Act that appropriates money   to the legislature.          SECTION 76.  The following provisions are repealed:                (1)  Section 232.0021, Family Code;                (2)  Section 411.108, Government Code;                (3)  Section 466.012, Government Code;                (4)  Section 466.016, Government Code;                (5)  Section 466.020(b), Government Code;                (6)  Section 466.028, Government Code;                (7)  Sections 467.001(1) and (2), Government Code;                (8)  the heading to Section 467.001, Government Code;                (9)  Section 467.002, Government Code;                (10)  Section 467.021, Government Code;                (11)  Section 467.022, Government Code;                (12)  Section 467.023, Government Code;                (13)  Section 467.024, Government Code;                (14)  Section 467.0255, Government Code;                (15)  Section 467.026, Government Code;                (16)  Section 467.027, Government Code;                (17)  Section 467.028, Government Code;                (18)  Section 467.029, Government Code;                (19)  Section 467.030, Government Code;                (20)  Section 467.031, Government Code;                (21)  Section 467.032, Government Code;                (22)  Section 467.033, Government Code;                (23)  Section 467.034, Government Code;                (24)  Section 467.035, Government Code;                (25)  Section 467.037, Government Code;                (26)  Section 467.102, Government Code;                (27)  Section 467.103, Government Code;                (28)  Section 467.109, Government Code;                (29)  Section 467.110, Government Code;                (30)  Section 467.111, Government Code;                (31)  the headings to Subchapters A, B, and C, Chapter   467, Government Code;                (32)  the heading to Chapter 467, Government Code;                (33)  Section 2001.051, Occupations Code;                (34)  Section 2001.052, Occupations Code;                (35)  Section 2001.060, Occupations Code;                (36)  Section 2001.061, Occupations Code;                (37)  Section 2001.307, Occupations Code; and                (38)  Section 721.003(e), Transportation Code.          SECTION 77.  (a)  On September 1, 2025:                (1)  all functions and activities performed by the   Texas Lottery Commission relating to the state lottery under   Chapter 466, Government Code, and the regulation of bingo   operations under Chapter 2001, Occupations Code, immediately   before that date are transferred to the Texas Commission of   Licensing and Regulation or the Texas Department of Licensing and   Regulation, as applicable;                (2)  a rule, policy, procedure, decision, or form   adopted by the Texas Lottery Commission relating to Chapter 466 or   467, Government Code, or Chapter 2001, Occupations Code, is a rule,   policy, procedure, decision, or form of the Texas Commission of   Licensing and Regulation or the Texas Department of Licensing and   Regulation, as applicable, and remains in effect until amended or   repealed by that commission or department unless the rule, policy,   procedure, decision, or form conflicts with the changes in law made   by this Act;                (3)  unless the context clearly indicates otherwise, a   reference to the Texas Lottery Commission in a law or   administrative rule that relates to Chapter 466 or 467, Government   Code, or Chapter 2001, Occupations Code, means the Texas Commission   of Licensing and Regulation or the Texas Department of Licensing   and Regulation, as applicable;                (4)  a complaint, investigation, or other proceeding   before the Texas Lottery Commission that is related to Chapter 466   or 467, Government Code, or Chapter 2001, Occupations Code, is   transferred without change in status to the Texas Department of   Licensing and Regulation, and the Texas Department of Licensing and   Regulation assumes, as appropriate and without a change in status,   the position of the Texas Lottery Commission in an action or   proceeding to which the Texas Lottery Commission is a party;                (5)  a license, permit, certification, or registration   in effect that was issued by the Texas Lottery Commission under   Chapter 466 or 467, Government Code, or Chapter 2001, Occupations   Code, is continued in effect as a license, permit, certification,   or registration of the Texas Department of Licensing and   Regulation;                (6)  all money, contracts, leases, property, and   obligations of the Texas Lottery Commission relating to Chapter 466   or 467, Government Code, or Chapter 2001, Occupations Code, are   transferred to the Texas Department of Licensing and Regulation;   and                (7)  the unexpended and unobligated balance of any   money appropriated by the legislature for the Texas Lottery   Commission related to Chapter 466 or 467, Government Code, or   Chapter 2001, Occupations Code, is transferred to the Texas   Department of Licensing and Regulation.          (b)  On the effective date of this Act, the Texas Lottery   Commission shall grant the Texas Department of Licensing and   Regulation access to:                (1)  all licensing, enforcement, and examination   software or computer systems used by the Texas Lottery Commission   in administering or enforcing Chapter 466 or 467, Government Code,   or Chapter 2001, Occupations Code; and                (2)  the uniform statewide accounting system, the state   property accounting system, the uniform statewide payroll system,   and the human resources information system for the Texas Lottery   Commission.          (c)  On the effective date of this Act, the Texas Lottery   Commission shall agree with the Texas Department of Licensing and   Regulation to transfer any property of the Texas Lottery Commission   to the Texas Department of Licensing and Regulation to implement   the transfers required by this Act.          (d)  The Texas Department of Licensing and Regulation and the   Texas Lottery Commission shall coordinate implementation of this   section.  The Texas Lottery Commission shall cooperate with the   Texas Department of Licensing and Regulation in transferring all   data and records necessary to implement the transfers required by   this Act.          (e)  Not later than December 1, 2025, the Texas Lottery   Commission and the Texas Department of Licensing and Regulation   shall develop and enter into a memorandum of understanding   regarding the transfers required by this Act.  The memorandum must   include a transition plan with a timetable and specific steps and   deadlines required to complete the transfer.          (f)  Not later than December 1, 2025, a manufacturer of bingo   equipment or supplies that submitted to the Texas Lottery   Commission a bond as required under Section 2001.204, Occupations   Code, before September 1, 2025, that is in effect on the effective   date of this Act must amend the bond to name the Texas Department of   Licensing and Regulation as the payee for the bond.          SECTION 78.  The changes in law made by this Act to Chapter   2001, Occupations Code, apply only to a tax or fee charged on or   after September 1, 2025.  A tax or fee charged before September 1,   2025, is governed by the law in effect immediately before that date,   and the former law is continued in effect for that purpose.          SECTION 79.  (a)  The change in law made by this Act applies   only to an offense committed on or after the effective date of this   Act.  An offense committed before the effective date of this Act is   governed by the law in effect on the date the offense was committed,   and the former law is continued in effect for that purpose.  For   purposes of this section, an offense was committed before the   effective date of this Act if any element of the offense occurred   before that date.          (b)  Section 2001.152, Occupations Code, as amended by this   Act, applies to a license placed on an administrative hold on or   after the effective date of this Act.  A license placed on   administrative hold before the effective date of this Act may   continue on hold for a period not to exceed 10 years from the   effective date of this Act as determined by the Texas Commission of   Licensing and Regulation.          SECTION 80.  As soon as practicable after the effective date   of this Act, the Texas Commission of Licensing and Regulation shall   adopt rules necessary to implement this Act.          SECTION 81.  On September 1, 2025, all full-time equivalent   employee positions at the Texas Lottery Commission become positions   at the Texas Department of Licensing and Regulation.          SECTION 82.  (a) Not later than December 1, 2025, the Texas   Department of Licensing and Regulation shall initiate an   independent review of each existing contract of the Texas Lottery   Commission relating to Chapter 466 or 467, Government Code, or   Chapter 2001, Occupations Code, to determine whether to renew,   amend, or terminate the contract.          (b)  Not later than September 1, 2026, the Texas Department   of Licensing and Regulation shall amend the existing contract for   lottery operations and services to extend the contract term for not   more than two years beyond the expiration date of the contract.          SECTION 83.  As soon as practicable after the effective date   of this Act, the Texas Commission of Licensing and Regulation   shall:                (1)  appoint members to the lottery advisory committee   and adopt rules to govern the operations of the committee as   required by Section 51.217, Occupations Code, as added by this Act;   and                (2)  appoint members to the bingo advisory committee   and adopt rules to govern the operations of the committee as   required by Section 2001.057, Occupations Code, as amended by this   Act.          SECTION 84.  Not later than December 1, 2026, the Texas   Department of Licensing and Regulation shall submit to the Sunset   Advisory Commission and each standing committee of the legislature   with primary jurisdiction over the state lottery or regulation of   charitable bingo any legislative recommendations necessary to   improve the lottery or charitable bingo.          SECTION 85.  Not later than December 1, 2026, the Texas   Department of Licensing and Regulation shall submit the first   annual report required by Section 51.218, Occupations Code, as   added by this Act.          SECTION 86.  Not later than August 31, 2028, the State   Auditor's Office shall complete the first annual audit required by   Section 466.0171, Government Code, as added by this Act.          SECTION 87.  Unless otherwise provided by this Act, the   changes in law made by this Act apply beginning September 1, 2025.          SECTION 88.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 3070 passed the Senate on   May 15, 2025, by the following vote: Yeas 31, Nays 0; and that the   Senate concurred in House amendments on May 30, 2025, by the   following vote: Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 3070 passed the House, with   amendments, on May 26, 2025, by the following vote: Yeas 112,   Nays 27, one present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor