TITLE 16. ECONOMIC REGULATION

PART 9. TEXAS LOTTERY COMMISSION

CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT

The Texas Lottery Commission (Commission) adopts amendments to 16 TAC §401.158 (Suspension or Revocation of License), §401.160 (Standard Penalty Chart), §401.301 (General Definitions), §401.302 (Scratch Ticket Game Rules), §401.304 (Draw Game Rules (General)), §401.305 ("Lotto Texas®" Draw Game Rule), §401.307 ("Pick 3" Draw Game Rule), §401.308 ("Cash Five" Draw Game Rule), §401.312 ("Texas Two Step" Draw Game Rule), §401.315 ("Mega Millions" Draw Game Rule), §401.316 ("Daily 4" Draw Game Rule), §401.317 ("Powerball®" Draw Game Rule), §401.320 ("All or Nothing" Draw Game Rule), §401.321 (Instant Game Tickets Containing Non-English Words), §401.322 ("Texas Triple Chance" Draw Game Rule), §401.351 (Proceeds from Ticket Sales), §401.353 (Retailer Settlements, Financial Obligations, and Commissions), §401.355 (Restricted Sales), §401.363 (Retailer Record), §401.366 (Compliance with All Applicable Laws), and §401.368 (Lottery Ticket Vending Machines). The rules are adopted without changes to the proposed text as published in the June 26, 2020, issue of the Texas Register (45 TexReg 4252) and will not be republished.

The rule amendments are a result of the Commission's recent rule review conducted in accordance with Texas Government Code §2001.039. The amendments will simplify and update the rules to conform to industry best practices. The amendments also include updates and clarifications of certain terms to conform usage of those terms throughout the rules (e.g., replacing the terms "instant ticket" and "instant game" with "scratch ticket" and "scratch ticket game").

Among the more significant changes, the amendments move the draw game "playslip" and "entry of play" provisions from various specific draw game rules to the definitions and general draw game rule with language that will apply consistently to all draw games. Likewise, the amendments move the general provisions regarding authorized promotions and retail bonus/incentives from individual draw game rules to the general draw game rule. The amendments also update the various game trademarks and definitions of "playboard" for consistency purposes.

The amendments to Rule 401.158 (Suspension or Revocation of License) and the penalty chart in Rule 401.160 (Standard Penalty Chart) update and clarify lottery enforcement policy and practice. The amendments also remove certain outdated requirements from the licensing rules and retailer rules.

Additionally, the amendments include the repeal of §401.322 ("Texas Triple Chance" Draw Game Rule) because that draw game is no longer offered. The amendments also remove references to "Lotto Texas® Winner Take All®" from §401.305 ("Lotto Texas®" Draw Game Rule) because that promotion was never implemented. The removal of the foregoing provisions will further streamline and simplify the Commission's rules.

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

SUBCHAPTER B. LICENSING OF SALES AGENTS

16 TAC §401.158, §401.160

These amendments are 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.

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 August 10, 2020.

TRD-202003283

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: August 30, 2020

Proposal publication date: June 26, 2020

For further information, please call: (512) 344-5392


SUBCHAPTER D. LOTTERY GAME RULES

16 TAC §§401.301, 401.302, 401.304, 401.305, 401.307, 401.308, 401.312, 401.315 - 401.317, 401.320, 401.321

These amendments are 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.

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 August 10, 2020.

TRD-202003288

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: August 30, 2020

Proposal publication date: June 26, 2020

For further information, please call: (512) 344-5392


16 TAC §401.322

This repeal 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.

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 August 10, 2020.

TRD-202003285

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: August 30, 2020

Proposal publication date: June 26, 2020

For further information, please call: (512) 344-5392


SUBCHAPTER E. RETAILER RULES

16 TAC §§401.351, 401.353, 401.355, 401.363, 401.366, 401.368

These amendments are 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.

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 August 10, 2020.

TRD-202003289

Bob Biard

General Counsel

Texas Lottery Commission

Effective date: August 30, 2020

Proposal publication date: June 26, 2020

For further information, please call: (512) 344-5392