PART 9. TEXAS LOTTERY COMMISSION
CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT
SUBCHAPTER B. LICENSING OF SALES AGENTS
The Texas Lottery Commission (Commission) proposes amendments to 16 TAC §401.158 (Suspension or Revocation of License) and §401.160 (Standard Penalty Chart). The purpose of the proposed amendments is to reinforce the Commission's zero tolerance policy regarding a Texas Lottery sales agent (retailer) selling lottery tickets to a minor by requiring revocation of the retailer's license in all cases involving a violation of a law or Commission rule where the licensee intentionally or knowingly sells or offers to sell a lottery ticket to a person that the licensee knows is younger than 18 years of age. See Texas Government Code §466.3051(a) (Sale of Ticket to or Purchase of Ticket by Person Younger Than 18 Years of Age).
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 that Texas Lottery retailers will clearly understand that the penalty for selling or offering to sell a Texas Lottery ticket to a person younger than 18 years is license revocation, which is anticipated to result in enhanced protection against the sale of lottery tickets to minors.
Sergio Rey, 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, Sergio Rey, 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 do not require an increase or decrease in fees paid to the Commission.
(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 may be submitted to Bob Biard, 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.
These amendments are proposed under Texas Government Code §466.015(b)(3), which requires the Commission to adopt rules governing the enforcement of prohibitions on the sale of tickets to or by an individual younger than 18 years of age, 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.
§401.158.Suspension or Revocation of License.
(a) (No change.)
(b) Without limiting the commission's ability to consider factors listed in §401.153(b) of this title as grounds for suspension or revocation of a license issued under this subchapter, the commission may also suspend or revoke a license for reasons including, but not limited to, any of the following:
(1) - (25) (No change.)
[(26) licensee intentionally or knowingly
sells a ticket to a person that the licensee knows is younger than
18 years;]
(26) [(27)] licensee intentionally
or knowingly sells a ticket and accepts anything for payment not specifically
allowed under the State Lottery Act;
(27) [(28)] licensee sells tickets
over the telephone or via mail order sales, establishes or promotes
a group purchase or pooling arrangement under which tickets are purchased
on behalf of the group or pool and any prize is divided among the
members of the group or pool, and the licensee intentionally or knowingly:
(A) - (B) (No change.)
(28) [(29)] licensee intentionally
or knowingly alters or forges a ticket;
(29) [(30)] licensee intentionally
or knowingly influences or attempts to influence the selection of
a winner of a lottery game;
(30) [(31)] licensee intentionally
or knowingly claims a lottery prize or a share of a lottery prize
by means of fraud, deceit, or misrepresentation; or aids or agrees
to aid another person or persons to claim a lottery prize or a share
of a lottery prize by means of fraud, deceit, or misrepresentation;
(31) [(32)] licensee intentionally
or knowingly tampers with, damages, defaces, or renders inoperable
any vending machine, electronic computer terminal, or other mechanical
device used in a lottery game, or fails to exercise due care in the
treatment of commission property;
(32) [(33)] licensee:
(A) - (D) (No change.)
(33) [(34)] licensee intentionally
or knowingly makes a statement or entry that the person knows to be
false or misleading on a required report;
(34) [(35)] licensee fails to
maintain or make an entry the licensee knows is required to be maintained
or made for a required report;
(35) [(36)] licensee knowingly
refuses to permit the director of the Lottery Operations Division,
the executive director, commission, the lottery operator, the employees
or agents of the lottery operator, or the state auditor to examine
the agent's books, records, papers or other objects, or refuses to
answer any question authorized under the State Lottery Act;
(36) [(37)] licensee intentionally
or knowingly makes a material and false or incorrect, or deceptive
statement, written or oral, to a person conducting an investigation
under the State Lottery Act or a commission rule;
(37) [(38)] licensee commits
an offense of conspiracy as defined in the State Lottery Act;
(38) [(39)] licensee sells or
offers for sale any interest in a lottery of another state or state
government or an Indian tribe or tribal government, including an interest
in an actual lottery ticket, receipt, contingent promise to pay, order
to purchase, or other record of the interest;
(39) licensee intentionally or knowingly sells or offers to sell a ticket to a person that the licensee knows is younger than 18 years (revocation only);
(40) - (42) (No change.)
§401.160.Standard Penalty Chart.
(a) - (g) (No change.)
(h) Standard Penalty Chart.
Figure 16 TAC §401.160(h) (.pdf)
[Figure 16 TAC §401.160(h)]
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 September 11, 2024.
TRD-202404413
Bob Biard
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: October 27, 2024
For further information, please call: (512) 344-5392