Relating to the abolishment of the state lottery.

89(R) SB 1988 - Introduced version - Bill Text

89R11183 BEE-D

By: Hall

S.B. No. 1988

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:

Art. 2A.001. PEACE OFFICERS GENERALLY. The following are

peace officers:

(1) a sheriff, a sheriff's deputy, or a reserve deputy

sheriff who holds a permanent peace officer license issued under

Chapter 1701, Occupations Code;

(2) a constable, a deputy constable, or a reserve

deputy constable who holds a permanent peace officer license issued

under Chapter 1701, Occupations Code;

(3) a marshal or police officer of a municipality or a

reserve municipal police officer who holds a permanent peace

officer license issued under Chapter 1701, Occupations Code;

(4) a ranger, officer, or member of the reserve

officer corps commissioned by the Public Safety Commission and the

director of the Department of Public Safety;

(5) an investigator of a district attorney's, criminal

district attorney's, or county attorney's office;

(6) a law enforcement agent of the Texas Alcoholic

Beverage Commission;

(7) a member of an arson investigating unit

commissioned by a municipality, a county, or the state;

(8) an officer commissioned under Section 37.081
or

37.0818
, Education Code, or Subchapter E, Chapter 51, Education

Code;

(9) an officer commissioned by the Texas Facilities

Commission;

(10) a law enforcement officer commissioned by the

Parks and Wildlife Commission;

(11) an officer commissioned under Chapter 23,

Transportation Code;

(12) a municipal park and recreational patrol officer

or security officer;

(13) a security officer or investigator commissioned

as a peace officer by the comptroller;

(14) an officer commissioned by a water control and

improvement district under Section 49.216, Water Code;

(15) an officer commissioned by a board of trustees

under Chapter 54, Transportation Code;

(16) an investigator commissioned by the Texas Medical

Board;

(17) an officer commissioned by:

(A) the board of managers of the Dallas County

Hospital District, the Tarrant County Hospital District, the Bexar

County Hospital District, or the El Paso County Hospital District

under Section 281.057, Health and Safety Code;

(B) the board of directors of the Ector County

Hospital District under Section 1024.117, Special District Local

Laws Code;

(C) the board of directors of the Midland County

Hospital District of Midland County, Texas, under Section 1061.121,

Special District Local Laws Code; or

(D) the board of hospital managers of the Lubbock

County Hospital District of Lubbock County, Texas, under Section

1053.113, Special District Local Laws Code;

(18) a county park ranger commissioned under

Subchapter E, Chapter 351, Local Government Code;

(19) an investigator employed by the Texas Racing

Commission;

(20) an officer commissioned under Chapter 554,

Occupations Code;

(21) an officer commissioned by the governing body of

a metropolitan rapid transit authority under Section 451.108,

Transportation Code, or a regional transportation authority under

Section 452.110, Transportation Code;

(22) an investigator commissioned by the attorney

general under Section 402.009, Government Code;

(23) [
a security officer or investigator commissioned

as a peace officer under Chapter 466, Government Code;

[
(24)
] an officer appointed by an appellate court

under Subchapter F, Chapter 53, Government Code;

(24)
[
(25)
] an officer commissioned by the state fire

marshal under Chapter 417, Government Code;

(25)
[
(26)
] an investigator commissioned by the

commissioner of insurance under Section 701.104, Insurance Code;

(26)
[
(27)
] an
officer appointed by the inspector

general of
[
apprehension specialist or inspector general

commissioned by
] the Texas Juvenile Justice Department [
as an

officer
] under Section 242.102 [
or 243.052
], Human Resources Code;

(27)
[
(28)
] an officer appointed by the inspector

general of the Texas Department of Criminal Justice under Section

493.019, Government Code;

(28)
[
(29)
] an investigator commissioned by the Texas

Commission on Law Enforcement under Section 1701.160, Occupations

Code;

(29)
[
(30)
] a fire marshal or any related officer,

inspector, or investigator commissioned by a county under

Subchapter B, Chapter 352, Local Government Code;

(30)
[
(31)
] a fire marshal or any officer, inspector,

or investigator commissioned by an emergency services district

under Chapter 775, Health and Safety Code;

(31)

a fire marshal or any officer, inspector, or

investigator of a municipality who holds a permanent peace officer

license issued under Chapter 1701, Occupations Code;

(32) an officer commissioned by the State Board of

Dental Examiners under Section 254.013, Occupations Code, subject

to the limitations imposed by that section; and

(33) an
Alamo complex ranger commissioned by the

General Land Office under Section 31.0515, Natural Resources Code,

subject to the limitations imposed by that section
[
investigator

commissioned by the Texas Juvenile Justice Department as an officer

under Section 221.011, Human Resources Code
].

SECTION 2.02. Section 411.108(a-2), Government Code, is

amended to read as follows:

(a-2) Subject to Sections 411.087[
, 466.201,
] and

467.036(b) of this code and Section 2001.3025, Occupations Code,

and consistent with the public policy of this state, the Texas

Lottery Commission is entitled to:

(1) obtain through the Federal Bureau of Investigation

criminal history record information maintained or indexed by that

bureau that pertains to a person described by Subsection [
(a) or
]

(a-1); and

(2) obtain from the department or any other criminal

justice agency in this state criminal history record information

maintained by the department or that criminal justice agency that

relates to a person described by Subsection [
(a) or
] (a-1).

SECTION 2.03. Section 434.017(a), Government Code, is

amended to read as follows:

(a) The fund for veterans' assistance is a special fund in

the state treasury outside the general revenue fund. The fund is

composed of:

(1) money transferred to the fund at the direction of

the legislature;

(2) gifts and grants contributed to the fund;

(3) the earnings of the fund;

(4) [
money transferred to the fund from proceeds of

the lottery game operated under Section 466.027 or transferred to

the fund under Section 466.408(b);

[
(5)
] money deposited to the credit of the fund under

Section 502.1746, Transportation Code;

(5)
[
(6)
] money deposited to the credit of the fund

under Sections 521.008 and 522.0295, Transportation Code;

(6)
[
(7)
] money deposited to the credit of the fund

under Section 12.007, Parks and Wildlife Code; and

(7)
[
(8)
] money deposited to the credit of the fund

under Section 411.1741.

SECTION 2.04. Section 544.0456(c), Government Code, as

effective April 1, 2025, is amended to read as follows:

(c) On a monthly basis, the commission shall:

(1) [
conduct electronic data matches with the Texas

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

(2)
[
(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 2.05. Section 572.003(b), Government Code, is

amended to read as follows:

(b) The term means:

(1) the
banking commissioner of the Texas Department

of Banking
[
Banking Commissioner of The Banking Department of

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 director of the bingo division of the Texas

Lottery Commission; or

(6)
[
(8)
] the secretary of state.

SECTION 2.06. Section 2113.102(a), Government Code, is

amended to read as follows:

(a) A state agency may not use appropriated money to

contract with a person to audit the financial records or accounts of

the agency except as provided by:

(1) Subsections (b), (c), and (d);
and

(2) [
Chapter 466, pertaining to the state lottery;

[
(3)
] Chapter 2306, pertaining to the Texas Department

of Housing and Community Affairs[
; and

[
(4)

Chapter 361, Transportation Code, pertaining to

the Texas Turnpike Authority division of the Texas Department of

Transportation
].

SECTION 2.07. Section 47.02(c), Penal Code, is amended to

read as follows:

(c) It is a defense to prosecution under this section that

the actor reasonably believed that the conduct:

(1) was permitted under Chapter 2001, Occupations

Code;

(2) was permitted under Chapter 2002, Occupations

Code;

(3) was permitted under Chapter 2004, Occupations

Code;

(4) [
consisted entirely of participation in the state

lottery authorized by the State Lottery Act (Chapter 466,

Government Code);

[
(5)
] was permitted under Subtitle A-1, Title 13,

Occupations Code (Texas Racing Act); or

(5)
[
(6)
] consisted entirely of participation in a

drawing for the opportunity to participate in a hunting, fishing,

or other recreational event conducted by the Parks and Wildlife

Department.

SECTION 2.08. 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:

(1)
[
(A)
] Chapter 2001, Occupations Code;

(2)
[
(B)
] Chapter 2002, Occupations Code;

(3)
[
(C)
] Chapter 2004, Occupations Code;

(4)
[
(D)
] Subtitle A-1, Title 13, Occupations Code

(Texas Racing Act); or

(5)
[
(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 Lottery Commission; or

[
(D)

the director of the lottery division of the

Texas Lottery Commission
].

SECTION 2.09. The following provisions are repealed:

(1) Section 9.406(k), Business & Commerce Code;

(2) Section 232.0021, Family Code;

(3) Section 411.108(a), Government Code;

(4) Section 467.030(b), Government Code;

(5) Section 2054.007, Government Code; and

(6) Section 2002.056(c), Occupations Code.

SECTION 2.10. 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 3. CONFLICT OF LAW; EFFECTIVE DATE

SECTION 3.01. To the extent of any conflict, this Act

prevails over another Act of the 89th Legislature, Regular Session,

2025, relating to nonsubstantive additions to and corrections in

enacted codes.

SECTION 3.02. This Act takes effect September 1, 2025.