HB2918 - Relating to the abolishment of the state lottery.

  89R11183 BEE-D     By: Shaheen H.B. No. 2918       A BILL TO BE ENTITLED   AN ACT   relating to the abolishment of the state lottery.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. ABOLISHMENT OF STATE LOTTERY          SECTION 1.01.  Section 467.002, Government Code, is amended   to read as follows:          Sec. 467.002.  APPLICATION OF SUNSET ACT. The commission is   subject to review under Chapter 325 (Texas Sunset Act). Unless   continued in existence as provided by that chapter, the commission   is abolished and this chapter[ , Chapter 466 of this code, ] and   Chapter 2001, Occupations Code, expire September 1, 2029.          SECTION 1.02.  Sections 467.024(a) and (c), Government Code,   are amended to read as follows:          (a)  An individual is not eligible to be an appointed member   of the commission if the individual:                (1)  is registered, certified, or licensed by a   regulatory agency in the field of bingo [ or lottery ];                (2)  owns or controls, directly or indirectly, more   than a 10 percent interest in a business entity or other   organization regulated by the commission or receiving funds from   the commission;                (3)  is employed by or participates in the management   of a business entity or other organization regulated by or   receiving funds from the commission;                (4)  uses or receives a substantial amount of tangible   goods, services, or funds from the commission, other than   compensation or reimbursement authorized by law for commission   membership, attendance, or expenses;                (5)  is an officer, employee, or paid consultant of a   Texas trade association in the field of bingo [ or lottery ];                (6)  is required to register as a lobbyist under   Chapter 305 because of the person's activities for compensation on   behalf of a profession related to the operation of the commission;                (7)  is married to an individual described by   Subdivisions (2)-(6);                (8)  has been convicted of a felony or of any crime   involving moral turpitude; or                (9)  is not a citizen of the United States.          (c)  A person may not be a commission employee employed in a   "bona fide executive, administrative, or professional capacity,"   as that phrase is used for purposes of establishing an exemption to   the overtime provisions of the federal Fair Labor Standards Act of   1938 (29 U.S.C. Section 201 et seq.), if:                (1)  the person is an officer, employee, or paid   consultant of a Texas trade association in the field of bingo [ or   lottery ]; or                (2)  the person's spouse is an officer, manager, or paid   consultant of a Texas trade association in the field of bingo [ or   lottery ].          SECTION 1.03.  Section 467.025(a), Government Code, is   amended to read as follows:          (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.          SECTION 1.04.  Section 467.031, Government Code, is amended   to read as follows:          Sec. 467.031.   BINGO DIVISION  [ DIVISIONS ]. The commission   shall establish a division [ separate divisions ] to oversee bingo   [ and the state lottery ].          SECTION 1.05.  Section 467.035(a), Government Code, is   amended to read as follows:          (a)  The commission may not employ or continue to employ a   person who owns a financial interest in [ :                [ (1) ]  a bingo commercial lessor, bingo distributor, or   bingo manufacturer[ ; or                [ (2)  a lottery sales agency or a lottery operator ].          SECTION 1.06.  Sections 467.101(a) and (c), Government Code,   are amended to read as follows:          (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 of this code ].          (c)  The commission also has the powers and duties granted   under[ :                [ (1) ]  Chapter 2001, Occupations Code[ ; and                [ (2)  Chapter 466 of this code ].          SECTION 1.07.  Section 467.108(a), Government Code, is   amended to read as follows:          (a)  A former commission member, 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   commission before the second anniversary of the date that the   person's service in office or employment with the 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 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 commission   ceases ].          SECTION 1.08.  Section 467.111(f), Government Code, is   amended to read as follows:          (f)  The commission shall prepare a report on the trends and   issues identified under Subsection (e) and make the report   available to the public.  The commission shall address the   identified trends and issues, including trends and issues related   to the regulation [ of lottery operations under Chapter 466 and ] of   bingo under Chapter 2001, Occupations Code.          SECTION 1.09.  The following provisions of the Government   Code are repealed:                (1)  Chapter 466;                (2)  Section 467.001(9); and                (3)  Sections 467.106 and 467.107.          SECTION 1.10.  (a) Subject to Subsection (b) of this   section, on January 1, 2026:                (1)  the lottery division of the Texas Lottery   Commission is abolished and all division powers and duties related   to lottery prize payments, penalties, enforcement provisions, and   any necessary continued operations under Chapter 466, Government   Code, as it existed immediately before the effective date of this   Act, and other law are transferred to the Texas Lottery Commission;                (2)  all obligations, rights, contracts, bonds,   appropriations, records, and property of the lottery division are   transferred to the commission;                (3)  a rule, policy, procedure, or decision related to   lottery prize payments, penalties, enforcement provisions, and any   necessary continued operations of the lottery division continues in   effect until superseded by a later act of the commission; and                (4)  a reference in law to the lottery division means   the commission.          (b)  Any lottery division funds that on January 1, 2026, are   allocated to specific lottery operations shall be deposited in the   state treasury and may be used only for Foundation School Program   purposes.          SECTION 1.11.  (a) Not later than October 1, 2025, the Texas   Lottery Commission shall adopt a comprehensive transition plan for   the transfer described by Section 1.10 of this article and identify   any essential lottery division personnel necessary for the   continued payment of lottery prizes and assessment and enforcement   of penalties.          (b)  This section takes effect September 1, 2025.          SECTION 1.12.  (a) Notwithstanding the repeal by this Act of   Chapter 466, Government Code, that chapter as it existed   immediately before the effective date of this Act continues in   effect for the payment of lottery prizes and the assessment and   enforcement of penalties until each lottery prize and installment   prize payment is made to the lottery prize winner entitled to the   payment and each penalty assessment is finally determined as   required by that chapter and rules adopted under that chapter as   they existed immediately before the effective date of this Act.          (b)  On or after the effective date of this Act, a lottery   sales agent may not sell or offer to sell a lottery ticket for a   lottery game authorized under Chapter 466, Government Code, as   repealed by this Act.          SECTION 1.13.  The changes in law made by this article apply   to an offense committed on or after the effective date of this Act.   An offense committed before that date is governed by the law as it   existed on the date the offense was committed, and the former law is   continued in effect for that purpose.   ARTICLE 2. CONFORMING AMENDMENTS          SECTION 2.01.  Article 2A.001, Code of Criminal Procedure,   is amended to conform to Section 2, Chapter 624 (H.B. 4372), Section   1, Chapter 870 (H.B. 3981), Section 1, Chapter 950 (S.B. 1727), and   Section 1, Chapter 984 (S.B. 2612), Acts of the 88th Legislature,   Regular Session, 2023, and further amended to read as follows:          Ar [Text truncated for display. Full text available on Congress.gov.]