TITLE 16. ECONOMIC REGULATION

PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

SUBCHAPTER B. LICENSING OF SALES AGENTS

16 TAC §401.153

The Texas Lottery Commission (Commission) adopts amendments to 16 TAC §401.153 (Qualifications for License), without changes to the proposed text as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4217). The purpose of the amendments is to add language required by newly-enacted HB 1555 concerning certain locations licensed to sell alcoholic beverages. Specifically, the statute permits the Commission to license these locations if they derive less than 30 percent of their gross receipts from the sale or service of alcoholic beverages.

The Commission received no written comments on the proposed amendments during the public comment period.

These amendments are adopted under Texas Government Code §466.015, which authorizes the Commission to adopt rules governing the operation of the lottery; and Texas Government Code §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This adoption is intended to implement Texas Government Code, Chapter 466.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 6, 2017.

TRD-201704026

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: October 26, 2017

Proposal publication date: August 25, 2017

For further information, please call: (512) 344-5102


SUBCHAPTER C. PRACTICE AND PROCEDURE

16 TAC §401.207

The Texas Lottery Commission (Commission) adopts new 16 TAC §401.207 (Written Answer; Default Proceedings) with changes to the proposed text as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4218). The purpose of the new rule is to set forth the Commission's process for handling default contested case proceedings. In addition to describing the Commission's recently developed default process, the new rule requires a respondent or applicant file a written answer to the Commission's notice of hearing with the State Office of Administrative Hearings (SOAH) at least 10 calendar days prior to the date of the hearing (or at least 3 calendar days prior to the date of the hearing in lottery summary suspension cases) if the respondent/applicant intends to appear at the hearing and contest the allegations in the notice of hearing. The proposed rule required the respondent in a lottery summary suspension case to file an answer at least 5 calendar days prior to the date of the hearing; however, upon further consideration, the Commission believes 3 calendar days is more reasonable in view of the short time period between the date the notice of hearing is issued and the hearing date in those cases. If no answer is filed, or if the respondent/applicant does not appear at the hearing, SOAH and the Commission staff may proceed to dispose of the case by default. If an applicant or respondent appears at a hearing without first filing a written answer, the rule contemplates that Commission staff generally would request a continuance of the hearing in order to prepare for a fully litigated contested case.

Several other non-substantive changes were made to the proposal.

The Commission received no written comments on the proposed new rule during the public comment period.

The new rule is adopted pursuant to Texas Government Code §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction; Texas Government Code §466.015(a), which authorizes the Commission to adopt rules necessary to administer Chapter 466; and Texas Government Code §2001.004(1), which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures.

This adoption is intended to implement Texas Government Code, Chapter 466.

§401.207.Written Answer; Default Proceedings.

(a) The Commission may dispose of a contested case by default if a State Office of Administrative Hearings (SOAH) administrative law judge (ALJ) remands the case to the Commission for informal disposition upon proof that adequate and sufficient notice of hearing was mailed to, or personally served on, the respondent or applicant, and the respondent or applicant failed to either:

(1) file a written answer to a notice of hearing in accordance with subsection (d) of this section; or

(2) appear in person or through an authorized representative on the day and at the time set for the hearing of the case, regardless of whether a written answer has been filed.

(b) In addition to providing service of notice of hearing by mail or personal service, the Commission shall send a copy of a notice of hearing to a respondent or applicant by email if the respondent or applicant has provided the Commission with their email address.

(c) The Commission's default order shall state that the matters set forth in the notice of hearing are deemed admitted as true, and may grant the relief requested in the notice.

(d) A respondent or applicant must file a written answer to the allegations in a Commission notice of hearing with SOAH at least 10 calendar days prior to the date of the hearing set forth in the notice (or at least 3 calendar days prior to the date of the hearing in lottery summary suspension cases conducted pursuant to Texas Government Code §466.160), and must provide the Commission a copy of the answer provided to SOAH. A general denial of matters pleaded by the Commission in the notice shall be sufficient to comply with this subsection.

(e) If a respondent or applicant fails to file a written answer to a notice of hearing as required by this section, but appears in person or through an authorized representative on the day and at the time set for the hearing of the case, good cause exists for the ALJ to grant a continuance to schedule an evidentiary hearing at the request of the Commission.

(f) Following the Commission's issuance of a default order, and upon the timely filing of a motion for rehearing by the respondent or applicant in the contested case, the Commission, for good cause shown, may grant rehearing and request that SOAH schedule an evidentiary hearing in the case.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 6, 2017.

TRD-201704027

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: October 26, 2017

Proposal publication date: August 25, 2017

For further information, please call: (512) 344-5012


SUBCHAPTER D. LOTTERY GAME RULES

16 TAC §401.323

The Texas Lottery Commission (Commission) adopts the repeal of 16 TAC §401.323 ("MONOPOLY MILLIONAIRES' CLUB™" Game Rule), without changes to the proposed text as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4217). The purpose of the repeal is to remove references to a discontinued multi-jurisdiction lottery draw game no longer offered by the Commission. Staff anticipates the public will benefit by the elimination of references to a discontinued game as well as the minimization of player confusion.

The Commission received no written comments on the proposed repeal during the public comment period.

This repeal is adopted under Texas Government Code §466.015, which authorizes the Commission to adopt rules governing the operation of the lottery; Texas Government Code §466.451, which authorizes the Commission to adopt rules relating to a multi-jurisdiction lottery game; and Texas Government Code §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

This adoption is intended to implement Texas Government Code, Chapter 466.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 6, 2017.

TRD-201704024

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: October 26, 2017

Proposal publication date: August 25, 2017

For further information, please call: (512) 344-5012


16 TAC §401.324

The Texas Lottery Commission (Commission) adopts new 16 TAC §401.324 (Prize Winner Election to Remain Anonymous), without changes to the proposed text as published in the August 25, 2017, issue of the Texas Register (42 TexReg 4219). The purpose of the new rule is to implement recent legislative changes made by House Bill 59, relating to certain lottery prize winners' choice to remain anonymous. House Bill 59 establishes Texas Government Code §466.411, effective September 1, 2017, which will apply to any lottery prize claim submitted after January 1, 2018. This legislation permits a lottery prize winner of $1,000,000 or more, who is a natural person, the opportunity to elect to remain anonymous, in certain instances, by prohibiting all personally identifiable information from being released to the public. Prior to this legislation, the name of the prize winner, whether a natural person or legal entity, was released to the public pursuant to the Texas Public Information Act. Additionally, the name of a prize winner who elects to receive the prize payments in periodic installments will only be withheld for thirty (30) days from the date of the claim. House Bill 59 requires the Commission to adopt rules and procedures to implement this law no later than December 1, 2017.

The Commission received no written comments on the proposed new rule during the public comment period.

The new rule is adopted under Texas Government Code §466.015, 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 adoption is intended to implement Texas Government Code, Chapter 466.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 6, 2017.

TRD-201704030

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: October 26, 2017

Proposal publication date: August 25, 2017

For further information, please call: (512) 344-5012