PART 9. TEXAS LOTTERY COMMISSION
CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT
The Texas Lottery Commission (Commission) proposes amendments to 16 TAC §401.152 (Application for License), §401.302 (Scratch Ticket Game Rules), §401.362 (Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Damaged or Rendered Unsaleable, for Winning Lottery Tickets Paid and for Lottery-Related Property), and §401.370 (Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost).
The proposed amendment to §401.152 defines the term "director" throughout the rules to mean the lottery operations director.
The proposed amendment to §401.302 eliminates a redundant word related to the payment of scratch ticket prizes and makes the terms identical to those of draw games.
The proposed amendments to §401.362 provide for an additional documentation option other than a Fire Marshal's report for reporting fire damaged or destroyed lottery tickets and eliminate the $25 administrative fee for a pack of unactivated tickets that is unsaleable due to damage or destruction.
The proposed amendments to §401.370 eliminate the $25 administrative fee for each unactivated pack of stolen or lost tickets and update the requirement for reporting lost or stolen tickets to the Commission's enforcement division through the lottery operator hotline.
Robert Tirloni, Lottery Operations Director, has determined that for each year of the first five years the proposed amendments will be in effect, the public benefit expected is more clarity in the rules, the elimination of certain fees for retailers, and a more efficient process for reporting damaged or destroyed lottery tickets.
Kelly Stuckey, Controller, has determined that for each year of the first five years the amendments will be in effect, there will be no significant fiscal impact for state or local governments as a result of the proposed amendments. There will be no adverse effect on small businesses or rural communities, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the amendments, as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed amendments will not have an adverse economic effect on small businesses or rural communities as defined in Texas Government Code §2006.001(1-a) and (2).
Pursuant to Texas Government Code §2001.0221, the Commission provides the following Government Growth Impact Statement for the proposed amendments. For each year of the first five years the proposed amendments will be in effect, Kelly Stuckey, Controller, has determined the following:
(1) The proposed amendments do not create or eliminate a government program.
(2) Implementation of the proposed amendments does not require the creation of new employee positions or the elimination of existing employee positions.
(3) Implementation of the proposed amendments does not require an increase or decrease in future legislative appropriations to the Commission.
(4) The proposed amendments require a decrease in fees paid to the Commission as a result of the elimination of a $25 administrative fee for each unactivated pack of stolen or lost tickets or unactivated tickets that are unsaleable due to damage or destruction. This reduction in fees does not have a material impact.
(5) The proposed amendments do not create a new regulation.
(6) The proposed amendments do not expand or limit an existing regulation.
(7) The proposed amendments do not increase or decrease the number of individuals subject to the rule's applicability.
(8) The proposed amendments do not positively or adversely affect this state's economy.
The Commission requests comments on the proposed amendments from any interested person. Comments on the proposed amendments may be submitted to Tyler Vance, Assistant General Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at legal.input@lottery.state.tx.us. Comments must be received within 30 days after publication of this proposal in the Texas Register to be considered.
SUBCHAPTER B. LICENSING OF SALES AGENTS
These amendments are proposed under Texas Government Code §466.015(c), which authorizes the Commission to adopt rules governing the operation of the lottery, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
This proposal is intended to implement Texas Government Code Chapter 466.
§401.152.Application for License.
(a) - (b) (No change.)
(c) An applicant shall, under penalty of perjury, complete, sign, date, and submit all forms and related information and documents required. By signing and submitting the application form, the applicant agrees to allow the director of the Lottery Operations Division (hereinafter "director") to investigate the credit, criminal, and tax background of the applicant and other matters as authorized under the State Lottery Act, Government Code, Chapter 466.
(d) - (f) (No change.)
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 17, 2023.
TRD-202303037
Bob Biard
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: October 1, 2023
For further information, please call: (512) 344-5392
These amendments are proposed under Texas Government Code §466.015(c), which authorizes the Commission to adopt rules governing the operation of the lottery, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
This proposal is intended to implement Texas Government Code Chapter 466.
§401.302.Scratch Ticket Game Rules.
(a) - (d) (No change.)
(e) Payment of low-tier and mid-tier prizes.
(1) (No change.)
(2) Retailers may pay [cash] prizes in cash.
If acceptable to the claimant, retailers may also pay cash prizes
by business check, certified check, cashier's check, money order,
gift card, stored-value card, or store merchandise. If a retailer
decides to pay with anything other than cash, it is the responsibility
of the retailer to ensure the claimant has voluntarily agreed to the
non-cash prize payment.
(3) - (6) (No change.)
(f) - (k) (No change.)
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 17, 2023.
TRD-202303038
Bob Biard
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: October 1, 2023
For further information, please call: (512) 344-5392
These amendments are proposed under Texas Government Code §466.015(c), which authorizes the Commission to adopt rules governing the operation of the lottery, and §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
This proposal is intended to implement Texas Government Code Chapter 466.
§401.362.Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Damaged or Rendered Unsaleable, for Winning Lottery Tickets Paid and for Lottery-Related Property.
(a) Responsibility for Lottery Tickets Received.
(1) - (3) (No change.)
(4) Under the circumstances set out in this paragraph, the director may credit a retailer for activated tickets that are damaged or destroyed.
(A) The director may credit a retailer's account for a range of activated tickets in a pack reported as damaged or destroyed providing:
(i) - (ii) (No change.)
(iii) if the tickets were damaged or destroyed by fire,
the retailer made a formal report of the fire to appropriate fire
department authorities within 24 hours of the discovery of the fire,
and has provided to the commission's lottery operations division a
copy of a report by a Fire Marshal [Marshall]
that identifies the location and the cause of the fire or the
commission's lottery operations division has obtained written documentation
from lottery operator field staff verifying the reported fire damage; or
(iv) (No change.)
(B) (No change.)
[(5) There is an administrative fee of $25 for a pack of unactivated tickets that is unsaleable. The director may waive the administrative fee of $25 if the tickets are unsaleable because of damage or destruction caused by an overwhelming, unpreventable event caused exclusively by forces of nature and the retailer complied with the reporting requirements under paragraph (4)(A) of this subsection, as applicable.]
(b) - (d) (No change.)
§401.370.Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost.
(a) (No change.)
(b) Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost.
(1) - (2) (No change.)
(3) Notwithstanding paragraph (1) of this subsection, the director may charge a retailer full face value of an activated pack of tickets if prizes have been paid from the pack. The director may credit a retailer's account for a range of activated tickets in a pack reported as stolen or lost provided that no validations have occurred on tickets in the range reported as stolen or lost if:
(A) the pack has been stolen and the retailer, within 24 hours of the discovery of the theft, has made a formal report of such theft to both:
(i) appropriate local law enforcement authorities; and
(ii) the commission's enforcement [security
] division through the lottery operator [retailer] hotline;
(B) the pack has been lost and cannot be located by
the retailer and the retailer, within 24 hours of discovery of the
loss, has made a formal report of the loss to the commission's enforcement
[security] division through the lottery operator
hotline [retailer hotline; or]
[(4) Notwithstanding paragraph (1)
of this subsection, the director may charge a retailer an administrative
fee of $25 for each unactivated pack of tickets if:]
[(A) the pack has been stolen and the retailer, within 24 hours of the discovery of the theft, has made a formal report of such theft to both:]
[(i) appropriate local law enforcement authorities; and]
[(ii) the commission's security division through the retailer hotline;]
[(B) the pack has been lost and cannot be located by the retailer and the retailer, within 24 hours of discovery of the loss, has made a formal report of the loss to the commission's security division through the retailer hotline.]
(4) [(5)] A retailer shall report
each stolen or lost pack of tickets to the commission's enforcement [security] division through the lottery operator [retailer
] hotline within 24 hours of the discovery of the theft or loss.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 17, 2023.
TRD-202303039
Bob Biard
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: October 1, 2023
For further information, please call: (512) 344-5392