Part 1. RAILROAD COMMISSION OF TEXAS
Subchapter B. ACCESS TO AND CHARGES FOR RECORDS
The Railroad Commission of Texas (Commission) adopts amendments to §20.101, relating to Access to and Charges for Commission Records, without changes to the version published in the April 13, 2007, issue of the Texas Register (32 TexReg 2078).
The Commission adopts the amendments pursuant to Senate Bill 452 and Senate Bill 727, 79th Legislature, 2005, which transferred the duties of the Texas Building and Procurement Commission (TBPC) under the public information law to the Office of the Attorney General (OAG). The TBPC rules regulating charges for copies of public information were previously located under Title 1, Part 5, Chapter 111, Subchapter C, of the Texas Administrative Code, and were transferred to the OAG and reorganized under Title 1, Part 3, Chapter 70, of the Texas Administrative Code effective September 1, 2005, as published in the September 29, 2006, issue of the Texas Register (31 TexReg 8251). The Commission's adopted amendments to §20.101 add the OAG rule numbers and update the adopted or amended dates in subsection (a)(1) - (11).
The Commission received no comments on the proposed amendments.
The Commission adopts the amendments under Texas Government Code, §2161.003, which requires the Commission to adopt the rules of the Texas Building and Procurement Commission promulgated under Texas Government Code, §2161.002, as the Commission's own rules; and Texas Civil Statutes, Article 6447, which authorizes the commissioners to make all rules necessary for their government and proceedings.
Statutory authority: Texas Government Code, §2161.003 and Chapters 2155, 2158, 2161, 2162, 2166, 2252, and 2254; and Texas Civil Statutes, Article 6447.
Cross-reference to statute: Texas Government Code, §2161.003 and Texas Civil Statutes, Article 6447.
Issued in Austin, Texas, on May 15, 2007.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 15, 2007.
TRD-200701876
Mary Ross McDonald
Managing Director
Railroad Commission of Texas
Effective date: June 4, 2007
Proposal publication date: April 13, 2007
For further information, please call: (512) 475-1295
Chapter 401. ADMINISTRATION OF STATE LOTTERY ACT
Subchapter D. LOTTERY GAME RULES
The Texas Lottery Commission (Commission) adopts amendments to 16 TAC §401.302 (relating to Instant Game Rules), with changes to the proposed text as published in the April 6, 2007, issue of the Texas Register (32 TexReg 1981).
The rule as adopted changes subsection (j)(1)(B) to conform the rule language with the proposed Texas Lottery Commission Rider 14, General Appropriations Act, H.B. 1, 80th Leg., R.S. (2007) at VII-11 (ver.A362 Sen-7) language. The proposed Rider 14 language provides that out of the funds appropriated in Strategy A.1.7, Instant Ticket Production Contract, $3,000,000 in GR-Dedicated-Lottery Account No. 5025 funds in each fiscal year are contingent upon the commission adopting rules governing instant ticket games that close games after the final top prize in the a game has been claimed and rules that provide procedures for ending the sale of an instant ticket game within 45 days of the game being closed.
The purpose of the rule amendment is to provide for the closing of instant games in which all top prizes have been claimed. The rule, as amended, will provide for the implementation of agency procedures that require timely closing for instant games after all top prizes have been claimed and shorten the time period after the initiation of the game closing process to expeditiously collect these games from retailer locations, thus effectively ending the sales of these instant games. Prior to these procedural changes, the game closing process was initiated on a monthly basis and the fact that all top prizes had been claimed was not a factor considered for closing a specific instant game. Due to public concern, the agency decided to review its procedures relating to closing instant games and to propose this rule amendment relating to these procedures. As a result of the agency's review, the agency decided to revise its instant game closing process to address the concerns expressed. The rule amendment sets out the underlying foundation for the agency procedures. Additionally, at the time of its March 23, 2007 Commission meeting when the Commission voted to propose these amendments, it was aware of proposed legislation, specifically S.B. 1200, relating to rules governing the sale of tickets to an instant lottery game. Subsequent to the commission meeting, Texas Lottery Commission Appropriations Rider 14 was proposed and contained specific language requiring the adoption of rules for ending the sale of an instant ticket game within 45 days of the game being closed. The Rider makes $3,000,000.00 of dedicated funds contingent upon the adoption of these rules. Further, on May 3, 2007, House Committee on Licensing and Administrative Procedures substituted C.S.S.B 1200. C.S.S.B. 1200 requires the adoption of rules prohibiting the sale of instant tickets after the 46th day after which the commission initiates procedures to close the game. In order to conform the rule language to both the proposed legislation and the proposed appropriations rider, the agency revised the language in subsection (j)(1)(B).
This change in the rule language is a rule change that does not require republication of the proposed rule. Pursuant to Texas Workers' Compensation Commission v. Patient Advocates of Texas and Allen J. Meril, M.D. , 136 S.W.3d 643 (Tex. 2004), this rule language change from the language "no later than the 46th day after game closing procedures have been initiated" to the language "within 45 days after game closing procedures have been initiated" does not materially alter issues raised in the proposed rule or affect persons other than those previously on notice. Therefore, republication is not required.
A public comment hearing was held on April 20, 2007. There was no one present at the hearing. No written comments were received during the comment period.
The amendments are adopted under Texas Government Code, §466.015, which provides the Commission with the authority to adopt rules governing the operation of the lottery. The section is also adopted under Texas Government Code, §467.102, which provides the Commission with the authority to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
Texas Government Code, Chapter 466, is affected by this rule.
§401.302.Instant Game Rules.
(a) Sale of instant game tickets.
(1) Only retailers who have been licensed by the commission are authorized to sell instant game tickets, and tickets may be sold only at a licensed location.
(2) Each instant game ticket shall sell for the retail sales price authorized by the executive director and stated in the individual game procedures.
(3) Each instant game ticket shall state the overall estimated odds of winning a prize of any kind, including a break even prize.
(b) Game procedures.
(1) The director of the marketing division may approve and publish individual game procedures prior to each instant game being introduced for sale to the public. Game procedures shall be published in the Texas Register and shall be made available upon request to the public.
(2) At a minimum, the game procedures for each game shall contain the following information:
(A) confirming captions;
(B) game name;
(C) game number;
(D) prize structure;
(E) playstyle;
(F) play symbols;
(G) ticket order quantity;
(H) retail sales price;
(I) dollar amount of prizes that may be paid by retailers; and
(J) eligibility requirements for a prize drawing, if any.
(3) The play style for an individual game shall be fully described in the game procedures and may take the form of one of the following methods of play:
(A) match up;
(B) add up;
(C) three in a line;
(D) key number/symbol match;
(E) yours beats theirs;
(F) prize legend;
(G) cards;
(H) bingo;
(I) directional arrows through maze;
(J) bonus game features; or
(K) any other approved play style or bonus game feature developed by the commission.
(c) Determination of prize winner.
(1) The play symbols shall be used by a player to determine eligibility for instant prizes. Qualifying play symbols are stated in the game procedures.
(2) A player's eligibility to win a prize is subject to the ticket validation requirements provided in subsection (d) of this section.
(3) For each individual game, the player shall rub off the latex covering on the front of the ticket to reveal the play symbols. Eligibility to win a prize is based on the approved play style as follows.
(A) Match up. If the designated number of identical play symbols is revealed on the ticket, the player shall win the prize indicated.
(B) Add up. If the player adds up all of the play symbols printed on the ticket and the amount is greater than or equal to the required total amount printed on the ticket, the player shall win the prize indicated.
(C) Three in a line. If the player reveals three identical play symbols, either diagonally, vertically, or horizontally, on the same ticket, the player shall win the prize indicated.
(D) Key number/symbol match. If the player reveals a play symbol that matches the designated key play symbol, the player shall win the prize indicated.
(E) Yours beats theirs. If the player reveals a play symbol designated as yours that is greater than the play symbol(s) designated as theirs, the player shall win the prize indicated.
(F) Prize legend. If the player reveals the designated number of play symbols, the player wins the prize amount that corresponds to the legend.
(G) Cards. If the player reveals the play symbol needed for that particular card game in a winning combination, the player shall win the prize indicated.
(H) Bingo. If the player matches their Bingo card numbers with all of the Caller's Card numbers and reveals certain patterns as specified on the ticket, the player shall win the prize indicated for that Bingo card and pattern.
(I) Directional arrows through maze. If the player follows the directional arrows to make a path or paths through a maze and the path(s) leads to a prize amount, the player shall win that prize.
(J) Bonus game features. These features are added to the game for extra play value and entertainment. The specific variants, as described below, are used for a particular game and are described in the individual game procedures:
(i) Doubler. If the player reveals the designated play symbol as part of the winning combination of the game, the player doubles their prize. The player may also reveal the "doubler" play symbol in a prize box, in which case the prize amount that the player won is doubled.
(ii) Wild card. The player may use this designated play symbol as part of the winning combination of the game.
(iii) Double and Double Doubler. If the player reveals one of these designated play symbols as part of the winning combination of the game, the player either doubles or quadruples their prize respectfully, as stated in the game card itself. The player may also reveal the "double" or "double doubler" play symbols in a prize box, in which case the prize amount that the player won is either doubled or quadrupled respectfully, as stated in the game card itself.
(iv) Tripler. If the player reveals the designated play symbol as part of the winning combination of the game, the player triples their prize. The player may also reveal the "tripler" play symbol in a prize box, in which case the prize amount that the player won is tripled.
(v) Auto win. If the player reveals the designated play symbol, the player wins the corresponding prize automatically.
(vi) Entry ticket. If the player reveals the designated play symbol, the player may use the ticket as a means of entering a drawing, subject to the game procedures for each game.
(K) Any other approved play style or bonus game feature developed by the Texas Lottery. If the player reveals the designated play symbols or bonus play features, the player shall win the prize(s) as indicated.
(d) Ticket validation requirements.
(1) Each instant game ticket shall be validated according to validation procedures prior to payment of a prize.
(2) An instant game ticket shall comply with all of the following.
(A) The ticket shall not be stolen or appear on any list of omitted tickets on file with the commission.
(B) The ticket shall not be counterfeit or forged, in whole or in part.
(C) The ticket shall not be mutilated, altered, unreadable, reconstituted, or tampered with in any manner.
(D) The ticket shall have been issued by the commission in an authorized manner.
(E) The ticket shall have been received or recorded by the commission by applicable deadlines.
(F) The ticket shall pass all the confidential validation and security tests appropriate to the applicable playstyle.
(G) The validation number of an apparent winning ticket shall appear on the commission's official list of validation numbers of winning tickets for the particular game and pack. A ticket with that validation number shall not have been paid previously.
(3) The commission may pay the prize for a ticket that is partially mutilated or not intact if the ticket can still be verified as a valid ticket and validated by the other validation requirements and procedures.
(4) Any ticket not passing all of the validation tests and requirements is void and ineligible for any prize and shall not be paid. The executive director may, at his/her exclusive determination, reimburse the player for the cost of the void ticket.
(5) If a defective ticket is purchased and is void, the sole remedy available against the commission and the commission's sole liability shall be, at the executive director's sole discretion, reimbursement for the cost of the void ticket, or replacement of the defective ticket with another unplayed ticket in that Instant Game (or a ticket of equivalent sales price from any other current Instant Game).
(e) Payment of low-tier and mid-tier prizes.
(1) Low-tier and mid-tier prizes shall be paid by any retailer or claim center.
(2) Retailers may pay cash prizes in cash or by certified check, cashier's check, or money order. Retailers may also pay prizes by business check if acceptable to the claimant. If a retailer decides to pay a prize with a business check, the retailer shall inform the claimant prior to ticket validation.
(3) Retailers may pay claims for prizes during their normal business hours, if the commission's validation system is operational.
(4) Before paying a prize, retailers shall validate the winning ticket according to established validation requirements and procedures.
(5) Payment of a prize by a retailer will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification, if appropriate.
(6) If a low or mid-tier claim is presented to the commission, the claimant shall follow all procedures of the commission related to claiming a prize, including but not limited to filling out a claim form, presenting appropriate identification if required, completing the back of the ticket, and submitting these items including the apparent winning ticket to the commission by mail or in person. Upon validation of a winning ticket, the commission shall present or mail a check to the claimant in payment of the amount due. If the ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Tickets will not be returned to the claimant.
(f) Payment of high-tier prizes.
(1) High-tier prizes must be presented for payment to the commission. For purposes of this provision, the term "commission" includes claim centers located throughout Texas. In connection with certain instant games, the top level prizes must be claimed at commission headquarters.
(2) If a high tier claim is presented to the commission, the claimant shall follow all procedures of the commission related to claiming a prize, including but not limited to filling out a claim form, presenting appropriate identification if required, completing the back of the ticket, and submitting these items including the apparent winning ticket to the commission by mail or in person. Upon validation of the ticket as a winning ticket, the commission shall pay the claimant the amount due in accordance with commission procedures. If the ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Tickets will not be returned to the claimant.
(3) Before paying any prize, claim center personnel shall validate the winning ticket according to established validation requirements and procedures.
(4) All prizes shall be subject to tax withholding, offsets, and other withholdings as provided by law.
(5) If a person is indebted or owes delinquent taxes to the state, other than those specified in paragraph (4) of this subsection, the winnings of a person shall be withheld until the debt or taxes are paid.
(6) When paying a prize of $600 or more, the commission shall file the appropriate income reporting form with the Internal Revenue Service.
(7) Payment of a prize will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification.
(8) The director shall recognize only one person as claimant of a particular prize. A claim may be made in the name of a person other than an individual only if the person possesses a federal employer identification number (FEIN) issued by the Internal Revenue Service and such number is shown on the claim form. Groups, family units, clubs, organizations, or other persons without an FEIN shall designate one individual in whose name the claim is to be filed. If a claim is erroneously entered with multiple claimants, the claimants shall designate one of them as the individual recipient of the prize, or, if they fail to designate an individual recipient, the director may designate any one of the claimants as the sole recipient. In either case, the claim shall then be considered as if it were originally entered in the name of the designated individual and payment of any prizes won shall be made to that single individual. Once a ticket is validated, it will not be returned to the winner, but will be forwarded to the lottery, along with the completed claim form.
(9) The executive director has discretion to set a maximum total cash amount or maximum payment time period for each prize level.
(g) Payment of prize awarded to minor.
(1) A person 18 years of age or older may purchase a ticket to give as a gift to another person, including a minor.
(2) If a minor is entitled to a cash prize of less than $600, the commission shall deliver to an adult member of the minor's family or to the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor.
(3) If a minor is entitled to a cash prize of more than $600, the commission shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor.
(4) If a minor is entitled to a prize other than money, the commission shall pay the cash equivalent of such prize in the manner provided by paragraphs (2) and (3) of this subsection.
(5) A retailer is not authorized to pay a prize claimed by a minor.
(h) Ticket responsibility.
(1) A ticket is a bearer instrument until signed on the back by the ticket holder.
(2) The commission shall not be responsible for lost, stolen, or destroyed tickets.
(3) The commission shall not be responsible for erroneous or mutilated tickets.
(4) The commission shall not be responsible for tickets claimed by a player in error for a lower prize at a retailer.
(5) The commission shall not be responsible for tickets delivered to any address other than that designated by the commission for such purpose.
(i) Disputed ticket. If a dispute arises between the commission and a ticket claimant concerning whether the ticket is a winning ticket and if the ticket prize has not been paid, the executive director may, exclusively at his/her determination, reimburse the claimant for the cost of the disputed ticket. This shall be the claimant's exclusive remedy.
(j) Game closing.
(1) The executive director or his/her designee shall determine the closing date for an individual instant game in accordance with an instant game closing procedure that defines the criteria used to monitor Instant Ticket sales performance and that identifies when instant games should be closed.
(A) The procedure shall provide for the timely closing of an instant game after all top level prizes in the game have been claimed or on an earlier date as determined by the executive director.
(B) The procedure shall provide for ending ticket sales in an instant game within 45 days after game closing procedures have been initiated.
(2) No tickets in an instant game may be sold after the instant game closing date.
(k) Governing law. In purchasing an instant game ticket, the lottery player agrees to comply with and abide by Texas law, all rules, procedures, and final decisions of the commission, and all procedures and instructions established by the executive director for the conduct of the instant game.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 21, 2007.
TRD-200701974
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: June 10, 2007
Proposal publication date: April 6, 2007
For further information, please call: (512) 344-5113
The Texas Lottery Commission (Commission) adopts the repeal of 16 TAC §401.307 (relating to "Pick 3" On-Line Game Rule), without changes to the proposed text as published in the December 29, 2006, issue of the Texas Register (31 TexReg 10488). By separate action, the Commission adopts new 16 TAC §401.307 (relating to "Pick 3" On-Line Game Rule), which authorizes a new version of the Pick 3 on-line lottery game to be played in Texas. The Commission is adopting a new rule, rather than adopting amendments to the existing rule, in order to make the rule easier to understand by clarifying language and eliminating unnecessary language throughout the rule.
A public comment hearing on the repeal was held on January 11, 2007. There were no members of the public present at the hearing. No written comments were received during the comment period.
The repeal is adopted under Texas Government Code, §466.015, which authorizes the Commission to adopt rules governing the operation of the lottery, including the type of lottery games to be conducted. The repeal is also adopted under 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, Chapter 466, is affected by the adopted repeal.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 21, 2007.
TRD-200701975
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: June 10, 2007
Proposal publication date: December 29, 2006
For further information, please call: (512) 344-5113
The Texas Lottery Commission (Commission) adopts new 16 TAC §401.307 (relating to "Pick 3" On-Line Game Rule), with changes to the proposed text as published in the April 6, 2007, issue of the Texas Register (32 TexReg 1982). The rule as adopted changes subsection (d)(14) to make clear that a player may continue to purchase up to 12 consecutive day plays or 12 consecutive night plays.
The Commission, by separate action, adopts the repeal of existing Title 16, Part 9, Chapter 401, §401.307 (relating to "Pick 3" On-Line Game Rule), without changes to the proposed text as published in the December 29, 2006, issue of the Texas Register (31 TexReg 10488).
The Commission is committed to generating revenue for the State of Texas through the responsible management and sale of entertaining lottery products. Pick 3 is currently the Commission's best selling on-line game, and the Commission believes that the many choices the game offers players, such as selection of play type and base play amount, in addition to the twelve drawings offered per week, contribute to the game's success. The Commission believes that the addition of a new feature will keep Pick 3 fresh and interesting so that Pick 3 will continue to generate revenue for the state.
The new Pick 3 rule changes the old Pick 3 rule by adding a Sum It Up feature. The Sum It Up feature allows a second play in connection with any other type of Pick 3 play. A Sum It Up play is a winning play if the sum of the player's three single-digit numbers is the same as the sum of the three single-digit numbers drawn in the applicable drawing.
The new rule changes the old rule by eliminating the concept of "prize pool." The old rule allocates a percentage of Pick 3 ticket sales to a "prize pool." Commission rules define the term "prize pool" as the percentage of ticket sales that is allocated to prizes for a particular draw period. 16 T.A.C. §401.301(43). The concept is not applicable in a game such as Pick 3 in which the amount of sales devoted to prizes in connection with a drawing varies over time because of guaranteed prizes.
The new rule changes the old rule by deleting references to a prize reserve fund. The Commission has determined that a prize reserve fund is an unnecessary accounting mechanism because the State Lottery Account is available for the payment of prizes for any game and there is therefore no need to segregate proceeds by game.
The new rule also clarifies definitions and deletes unnecessary definitions and provisions that are redundant of statutory provisions.
The Commission is adopting a new rule, rather than adopting amendments to the existing rule, in order to make the rule easier to understand by clarifying language and eliminating unnecessary language throughout the rule.
A public comment hearing was held on April 20, 2007, in regard to the proposed text as published in the April 6, 2007, issue of the Texas Register (32 TexReg 1982). There were no members of the public present at the hearing. No written comments were received during the 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. The section is also adopted under 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, Chapter 466, is affected by this rule.
§401.307."Pick 3" On-Line Game Rule.
(a) Pick 3. The executive director is authorized to conduct a game known as "Pick 3." The executive director may issue further directives and procedures for the conduct of Pick 3 that are consistent with this rule. In the case of conflict, this rule takes precedence over §401.304 of this title (relating to On-Line Game Rules (General)).
(b) Definitions. When used in this rule, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.
(1) Play--A play other than a Sum It Up play consists of:
(A) the selection of a play type;
(B) the selection of a Pick 3 base play amount of $.50, $1, $2, $3, $4 or $5;
(C) the selection of a draw date and time;
(D) the selection of numbers in accordance with subsection (c) of this section; and
(E) the purchase of a ticket evidencing those selections.
(2) Sum It Up Play--A Sum It Up play consists of:
(A) the selection of the Sum It Up play type in connection with an exact order play, an any order play, an exact order/any order play, or a combo play;
(B) the selection of a Sum It Up base play amount of $.50, $1, $2, $3, $4 or $5; and
(C) the purchase of a ticket evidencing those selections.
(3) Playboard--A panel on a playslip containing three fields of numbers for use in selecting numbers for a Pick 3 play, with each field of numbers containing the numbers 0, 1, 2, 3, 4, 5, 6, 7, 8 and 9.
(4) Playslip--An optically readable card issued by the commission for use in making selections for one or more Pick 3 plays.
(c) Play types
(1) Pick 3 may include the following play types: exact order, any order, exact/any order, combo, and Sum It Up.
(A) An "exact order" play is a winning play if the player's three single-digit numbers match in exact order the three single-digit numbers drawn in the applicable drawing.
(B) An "any order" play is a winning play if the player's three single-digit numbers match in any order the three single-digit numbers drawn in the applicable drawing.
(i) An any order play is a 3-way play when any order play is selected as the play type in connection with a set of three single-digit numbers that includes two occurrences of one single-digit number and one occurrence of one other single-digit number. A 3-way any order play involves three possible winning combinations.
(ii) An any order play is a 6-way play when any order play is selected as the play type in connection with a set of three single-digit numbers that includes a single occurrence of three different single-digit numbers. A 6-way any order play involves six possible winning combinations.
(iii) Any order play is not permitted in connection with a set of numbers that includes three occurrences of one single-digit number.
(C) An "exact order/any order" play is a winning play either if the player's three single-digit numbers match in exact order the numbers drawn in the applicable drawing or if the player's three single-digit numbers match in any order the numbers drawn in the applicable drawing.
(i) An exact order/any order play is a 3-way play when exact order/any order play is selected as the play type in connection with a set of three single-digit numbers that includes two occurrences of one single-digit number and one occurrence of one other single-digit number. An exact order/3-way any order play involves three possible winning combinations.
(ii) An exact order/any order play is a 6-way play when exact order/any order play is selected as the play type in connection with a set of three single-digit numbers that includes a single occurrence of three different single-digit numbers. An exact order/6-way any order play involves six possible winning combinations.
(iii) An exact order/any order play is not permitted in connection with a set of numbers that includes three occurrences of one single-digit number.
(D) A "combo" play combines all of the possible straight (exact) plays that can be played with the three single-digit numbers selected for the play.
(i) A combo play may be a 3-way combo play or a 6-way combo play.
(ii) 3-way combo play is combo play in connection with a set of three single-digit numbers that includes two occurrences of one single-digit number and one occurrence of one other single-digit number. A 3-way combo play involves three possible winning combinations.
(iii) 6-way combo play is combo play in connection with a set of three single-digit numbers that includes a single occurrence of three different single-digit numbers. A 6-way combo play involves six possible winning combinations.
(iv) Combo play is not permitted in connection with a set of numbers that includes three occurrences of one single-digit number.
(E) A Sum It Up play is a winning play if the sum of the player's three single-digit numbers is the same as the sum of the three single-digit numbers drawn in the applicable drawing. A Sum It Up play must occur in connection with a play of some other play type.
(2) The executive director shall determine a start date for Sum It Up play. The start date shall be no later than August 31, 2008. Otherwise, the executive director may allow or disallow any type of play described in this subsection. Currently available play types must be posted on the commission's web site.
(d) Plays and tickets
(1) A ticket may be sold only by an on-line retailer and only at the location listed on the retailer's license. A ticket sold by a person other than an on-line retailer is not valid.
(2) A Pick 3 play involves the selection of three single-digit numbers, with each selected from the numbers 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9.
(3) The cost of an exact order play is the same as the Pick 3 base play amount selected for the play.
(4) The cost of an any order play is the same as the Pick 3 base play amount selected for the play.
(5) The cost of an exact order/any order play is:
(A) $1 if the Pick 3 base play amount selected for the play is $.50;
(B) $2 if the Pick 3 base play amount selected for the play is $1;
(C) $4 if the Pick 3 base play amount selected for the play is $2;
(D) $6 if the Pick 3 base play amount selected for the play is $3;
(E) $8 if the Pick 3 base play amount selected for the play is $4; or
(F) $10 if the Pick 3 base play amount selected for the play is $5.
(6) The cost of a combo play is determined by multiplying the Pick 3 base play amount selected for the play by the number of winning combinations possible with the three single-digit numbers selected for the play.
(7) The cost of a Sum It Up play is the same as the Sum It Up base pay amount selected for the Sum It Up play. The cost of a Sum It Up play is in addition to the cost of the connected Pick 3 play.
(8) The cost of a ticket is determined by the total cost of the plays evidenced by the ticket.
(9) A player may complete up to five playboards on a single playslip.
(10) A person may select numbers for a play by:
(A) using a self-service terminal;
(B) using a playslip;
(C) requesting a retailer to use Quick Pick; or
(D) requesting a retailer to manually enter numbers into an on-line terminal.
(11) A player may select the play type, base play amount, and drawn date and time for a play by:
(A) using a self-service terminal;
(B) using a playslip; or
(C) requesting a retailer to manually enter the selections.
(12) Playslips must be completed manually. A ticket generated from a playslip that was not completed manually is not valid.
(13) An on-line retailer may accept a request to manually enter selections or to make quick-pick selections only if the request is made in person.
(14) A player may purchase one or more plays for any one or more of the next 12 drawings after the purchase and may purchase up to 12 consecutive night plays or 12 consecutive day plays.
(15) An on-line retailer shall issue a ticket as evidence of one or more plays. A ticket must show the numbers, play type and base play amount selected for each play; the number of plays, the draw date(s) for which the plays were purchased; and the security and transaction serial numbers. Tickets must be printed on official Texas Lottery paper stock.
(16) A playslip has no monetary value and is not evidence of a play.
(17) The purchaser is responsible for verifying the accuracy of the numbers and other selections shown on a ticket.
(18) The commission shall establish a time period before each drawing during which tickets may not be sold.
(19) An unsigned winning ticket is payable to the holder or bearer of the ticket if the ticket meets all applicable validation requirements.
(e) Cancellation of plays
(1) An on-line retailer may cancel a Pick 3 play only in accordance with the following provisions:
(A) The ticket evidencing the play must have been sold at the retail location at which it is cancelled;
(B) The on-line retailer must have possession of the ticket evidencing the play;
(C) All Pick 3 plays evidenced by a single ticket must be cancelled;
(D) Cancellation may occur no later than 60 minutes after sale of the ticket evidencing the play;
(E) Cancellation must occur before the beginning of the next draw break after the sale of the ticket evidencing the play; and
(F) Cancellation must occur before midnight on the day the ticket evidencing the play was sold.
(2) An on-line retailer must retain the ticket and the cancellation receipt for the play(s) evidenced by that ticket for at least 30 days after the cancellation.
(f) Drawings
(1) Pick 3 drawings shall be held twice a day, Monday through Saturday, at 12:27 p.m. and 10:12 p.m., central time. The executive director may change the drawing schedule, if necessary.
(2) At each Pick 3 drawing, three single-digit numbers shall be drawn. Each single-digit number will be drawn from a set that includes a single occurrence of all ten single-digit numbers (0, 1, 2, 3, 4, 5, 6, 7, 8, and 9).
(3) Numbers drawn and the order in which the numbers are drawn must be certified by the commission in accordance with the commission's drawing procedures.
(4) The numbers selected in a drawing and the order of the numbers selected in the drawing shall be used to determine all winners for that drawing.
(5) Each drawing shall be witnessed by an independent certified public accountant. All drawing equipment used shall be examined by a commission drawings representative and the independent certified public accountant immediately before each drawing and immediately after each drawing.
(g) Prizes
(1) Prize payments shall be made upon completion of commission validation procedures.
(2) A person may win only one prize per play per drawing. A player who holds a valid ticket for a winning play is entitled to the highest prize for that play.
(3) A Sum It Up play is a separate play from the exact order play, any order play, exact order/any order play, or combo play with which it is connected.
(4) The executive director may temporarily increase any prize set out in this paragraph for promotional or marketing purposes.
(5) A person who holds a valid ticket for a winning exact order play is entitled to a prize as shown.
(6) A person who holds a valid ticket for a winning 3-way any order play is entitled to a prize as shown.
(7) A person who holds a valid ticket for a winning 6-way any order play is entitled to a prize as shown.
(8) A person who holds a valid ticket for a winning exact order/3-way any order play is entitled to a prize as shown.
(9) A person who holds a valid ticket for a winning exact order/6-way any order play is entitled to a prize as shown.
(10) A person who holds a valid ticket for a winning combo play is entitled to a prize as shown.
Figure: 16 TAC §401.307(g)(10)
(11) A person who holds a valid ticket for a winning Sum It Up play is entitled to a prize as shown. A Sum It Up prize is in addition to a prize, if any, for the exact order play, any order play, exact order/any order play, or combo play to which the Sum It Up play is connected.
Figure: 16 TAC §401.307(g)(11)
(h) The executive director may authorize promotions in connection with Pick 3. Current promotions must be posted on the commission's web site.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 21, 2007.
TRD-200701976
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: June 10, 2007
Proposal publication date: April 6, 2007
For further information, please call: (512) 344-5113
The Texas Lottery Commission (Commission) adopts new 16 TAC §401.316 (relating to "Daily 4" On-Line Game Rule), with changes to the proposed text as published in the April 6, 2007, issue of the Texas Register (32 TexReg 1984). The rule as adopted corrects the tense of a verb in subsection (c)(1)(C). In addition, the rule as adopted changes subsection (d)(11) to make clear that a player may purchase up to 12 consecutive day plays or 12 consecutive night plays.
The Commission is committed to generating revenue for the State of Texas through the responsible management and sale of entertaining lottery products. The adopted new rule will authorize a new on-line lottery game. In August 2004, the commission conducted research regarding a daily four-digit numbers-style lottery game. At that time, the game was called Pick 4 for research purposes. The commission conducted research in two ways: quantitatively through a link on the Commission's web site and qualitatively through moderated focus-group discussions. Slightly more than 40 percent of on-line players indicated that they would be very or somewhat likely to purchase tickets to play the game if the game were offered. The greatest support for the four-digit game came from current players of Pick 3 and Cash 5.
Pick 3 is currently the Commission's best selling on-line game; and the Commission believes that the many choices the game offers players, such as selection of play type and base play amount, in addition to the twelve drawings offered per week, contribute to the game's success. Daily 4 is a similar game, and the commission believes that the addition of the Daily 4 game will be appealing to Pick 3 players as well as others.
A public comment hearing was held on April 20, 2007. There were no members of the public present at the hearing. No written comments were received during the 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, including the type of lottery games to be conducted. The section is also adopted under 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, Chapter 466, is affected by this rule.
§401.316."Daily 4" On-Line Game Rule.
(a) Daily 4. The executive director is authorized to conduct a game known as "Daily 4." The executive director may issue further directives and procedures for the conduct of Daily 4 that are consistent with this rule. In the case of conflict, this rule takes precedence over §401.304 of this title (relating to On-Line Game Rules (General)).
(b) Definitions. When used in this rule, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.
(1) Play--A play other than a Sum It Up play consists of:
(A) the selection of a play type;
(B) the selection of a Daily 4 base play amount of $.50, $1, $2, $3, $4 or $5;
(C) the selection of a draw date and time;
(D) the selection of numbers in accordance with subsection (d) of this section; and
(E) the purchase of a ticket evidencing those selections.
(2) Sum It Up Play--A Sum It Up play consists of:
(A) the selection of the Sum It Up play type in connection with a straight play, a box play, a straight/box play, a combo play, a front-pair play, a mid-pair play, or a back-pair play;
(B) the selection of a Sum It Up base play amount of $.50, $1, $2, $3, $4 or $5; and
(C) the purchase of a ticket evidencing those selections.
(3) Playboard--A panel on a playslip containing four fields of numbers for use in selecting numbers for a Daily 4 play, with each field of numbers containing the numbers 0, 1, 2, 3, 4, 5, 6, 7, 8 and 9.
(4) Playslip--An optically readable card issued by the commission for use in making selections for one or more Daily 4 plays.
(c) Play types
(1) Daily 4 may include the following play types: straight, box, straight/box, combo, front-pair, mid-pair, back-pair, and Sum It Up.
(A) A "straight" play is a winning play if the player's four single-digit numbers match in exact order the four single-digit numbers drawn in the applicable drawing.
(B) A "box" play is a winning play if the player's four single-digit numbers match in any order the four single-digit numbers drawn in the applicable drawing.
(i) A box play may be a 4-way box play, a 6-way box play, a 12-way box play, or a 24-way box play.
(I) A box play is a 4-way box play when box play is selected as the play type in connection with a set of four single-digit numbers that includes three occurrences of one single-digit number and one occurrence of one other single-digit number. A 4-way box play involves four possible winning combinations.
(II) A box play is a 6-way box play when box play is selected as the play type in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and two occurrences of another single-digit number. A 6-way box play involves six possible winning combinations.
(III) A box play is a 12-way box play when box play is selected as the play type in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and one occurrence of two other single-digit numbers. A 12-way box play involves 12 possible winning combinations.
(IV) A box play is a 24-way box play when box play is selected as the play type in connection with a set of four single-digit numbers that includes a single occurrence of four different single-digit numbers. A 24-way box play involves 24 possible winning combinations.
(ii) Box play is not permitted in connection with a set of numbers that includes four occurrences of one single-digit number.
(C) A "straight/box" play is a winning play either if the player's four single-digit numbers match in exact order the numbers drawn in the applicable drawing or if the player's four single-digit numbers match in any order the numbers drawn in the applicable drawing. The prize amount is greater if the player's four single-digit numbers match in exact order the numbers drawn in the applicable drawing.
(i) A straight/box play may be a 4-way straight/box play, a 6-way straight/box play, a 12-way straight/box play, or a 24-way straight/box play.
(I) A straight/box play is a 4-way straight/box play when straight/box play is selected in connection with a set of four single-digit numbers that includes three occurrences of one single-digit number and one occurrence of one other single-digit number. A 4-way straight/box play involves four possible winning combinations.
(II) A straight/box play is a 6-way straight/box play when straight/box play is selected in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and two occurrences of another single-digit number. A 6-way straight/box play involves six possible winning combinations.
(III) A straight/box play is a 12-way straight/box play when straight/box play is selected in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and one occurrence of two other single-digit numbers. A 12-way straight/box play involves 12 possible winning combinations.
(IV) A straight/box play is a 24-way straight/box play when straight/box play is selected in connection with a set of four single-digit numbers that includes a single occurrence of four different single-digit numbers. A 24-way straight/box play involves 24 possible winning combinations.
(ii) Straight/box play is not permitted in connection with a set of numbers that includes four occurrences of one single-digit number.
(D) A "combo" play combines into a single play all of the possible straight plays that can be played with the four single-digit numbers selected for the play.
(i) A combo play may be a 4-way combo play, a 6-way combo play, a 12-way combo play, or a 24-way combo play.
(I) 4-way combo play is combo play in connection with a set of four single-digit numbers that includes three occurrences of one single-digit number and one occurrence of one other single-digit number. A four-way combo play involves four possible winning combinations.
(II) 6-way combo play is combo play in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and two occurrences of another single-digit number. A six-way combo play involves six possible winning combinations.
(III) 12-way combo play is combo play in connection with a set of four single-digit numbers that includes two occurrences of one single-digit number and one occurrence of two other single-digit numbers. A 12-way combo play involves 12 possible winning combinations.
(IV) 24-way combo play is combo play in connection with a set of four single-digit numbers that includes a single occurrence of four different single-digit numbers. A 24-way combo play involves 24 possible winning combinations.
(ii) Combo play is not permitted in connection with a set of numbers that includes four occurrences of one single-digit number.
(E) Pair play
(i) A "front-pair" play is a winning play if the player's two single-digit numbers match in exact order the first two single-digit numbers drawn in the applicable drawing.
(ii) A "mid-pair" play is a winning play if the player's two single-digit numbers match in exact order the second and third single-digit numbers drawn in the applicable drawing.
(iii) A "back-pair" play is a winning play if the player's two single-digit numbers match in exact order the last two single-digit numbers drawn in the applicable drawing.
(F) A Sum It Up play is a winning play if the sum of the player's two or four single-digit numbers, as applicable, is the same as the sum of the four single-digit numbers drawn in the applicable drawing. A Sum It Up play must occur in connection with a play of some other play type.
(2) The executive director may allow or disallow any type of play described in this subsection. Currently available play types must be posted on the commission's web site.
(d) Plays and tickets
(1) A ticket may be sold only by an on-line retailer and only at the location listed on the retailer's license. A ticket sold by a person other than an on-line retailer is not valid.
(2) The selection of numbers for a straight play, a box play, a straight/box play, or a combo play involves the selection of four single-digit numbers, with each selected from the numbers 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9.
(3) The selection of numbers for a front-pair play, a mid-pair play, or a back-pair play involves the selection of two single-digit numbers, with each selected from the numbers 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9.
(4) The cost of a play varies according to the play type selected for the play and the base play amount selected for the play.
(A) The cost of a straight play is the same as the base play amount selected for the play.
(B) The cost of a box play is the same as the base play amount selected for the play.
(C) The cost of a straight/box play is:
(i) $1 if the base play amount selected for the play is $.50;
(ii) $2 if the base play amount selected for the play is $1;
(iii) $4 if the base play amount selected for the play is $2;
(iv) $6 if the base play amount selected for the play is $3;
(v) $8 if the base play amount selected for the play is $4; or
(vi) $10 if the base play amount selected for the play is $5.
(D) The cost of a combo play is determined by multiplying the base play amount selected for the play by the number of winning combinations possible with the four single-digit numbers selected for the play.
(E) The cost of a front-pair, mid-pair, or back-pair play is the same as the base play amount selected for the play.
(F) The cost of a Sum It Up play is the same as the Sum It Up base play amount selected for the Sum it Up play. The cost of a Sum It Up play is in addition to the cost of the Daily 4 play with which the Sum It Up play is connected.
(5) The cost of a ticket is determined by the total cost of the plays evidenced by the ticket.
(6) A player may complete up to five playboards on a single playslip.
(7) A person may select numbers for a play by:
(A) using a self-service terminal;
(B) using a playslip;
(C) requesting a retailer to use Quick Pick; or
(D) requesting a retailer to manually enter numbers into an on-line terminal.
(8) A player may select the play type, base play amount, and draw date and time for a play by:
(A) using a self-service terminal;
(B) using a playslip; or
(C) requesting a retailer to manually enter the play type.
(9) Playslips must be completed manually. A ticket generated from a playslip that was not completed manually is not valid.
(10) An on-line retailer may accept a request to manually enter selections or to make quick-pick selections only if the request is made in person.
(11) A player may purchase one or more plays for any one or more of the next 12 drawings after the purchase and may purchase up to 12 consecutive night plays or 12 consecutive day plays.
(12) An on-line retailer shall issue a ticket as evidence of one or more plays. A ticket must show the numbers, play type and base play amount selected for each play; the number of plays, the draw date(s) for which the plays were purchased; and the security and transaction serial numbers. Tickets must be printed on official Texas Lottery paper stock.
(13) A playslip has no monetary value and is not evidence of a play.
(14) The purchaser is responsible for verifying the accuracy of the numbers and other selections shown on a ticket.
(15) The commission shall establish a time period before each drawing during which tickets may not be sold.
(16) An unsigned winning ticket is payable to the holder or bearer of the ticket if the ticket meets all applicable validation requirements.
(e) Cancellation of plays
(1) An on-line retailer may cancel a Daily 4 play only in accordance with the following provisions:
(A) The ticket evidencing the play must have been sold at the retail location at which it is cancelled;
(B) The on-line retailer must have possession of the ticket evidencing the play;
(C) All Daily 4 plays evidenced by a single ticket must be cancelled;
(D) Cancellation may occur no later than 60 minutes after sale of the ticket evidencing the play;
(E) Cancellation must occur before the beginning of the next draw break after the sale of the ticket evidencing the play; and
(F) Cancellation must occur before midnight on the day the ticket evidencing the play was sold.
(2) An on-line retailer must retain the ticket and the cancellation receipt for the play(s) evidenced by that ticket for at least 30 days after the cancellation.
(f) Drawings
(1) Daily 4 drawings shall be held twice a day, Monday through Saturday, at 12:27 p.m. and 10:12 p.m., central time. The executive director may change the drawing schedule, if necessary.
(2) At each Daily 4 drawing, four single-digit numbers shall be drawn. Each single-digit number will be drawn from a set that includes a single occurrence of all ten single-digit numbers (0, 1, 2, 3, 4, 5, 6, 7, 8, and 9).
(3) Numbers drawn and the order in which the numbers are drawn must be certified by the commission in accordance with the commission's drawing procedures.
(4) The numbers selected in a drawing and the order of the numbers selected in the drawing shall be used to determine all winners for that drawing.
(5) Each drawing shall be witnessed by an independent certified public accountant. All drawing equipment used shall be examined by a commission drawings representative and the independent certified public accountant immediately before each drawing and immediately after each drawing.
(g) Prizes
(1) Prize payments shall be made upon completion of commission validation procedures.
(2) A person may win only one prize per play per drawing. A player who holds a valid ticket for a winning play is entitled to the highest prize for that play.
(3) A Sum it Up play is a separate play from the play with which it is connected.
(4) The executive director may temporarily increase any prize set out in this subsection for promotional or marketing purposes.
(5) A person who holds a valid ticket for a winning straight play is entitled to a prize as shown.
(6) A person who holds a valid ticket for a winning 4-way box play is entitled to a prize as shown.
(7) A person who holds a valid ticket for a winning 6-way box play is entitled to a prize as shown.
(8) A person who holds a valid ticket for a winning 12-way box play is entitled to a prize as shown.
(9) A person who holds a valid ticket for a winning 24-way box play is entitled to a prize as shown.
(10) A person who holds a valid ticket for a winning straight/4-way box play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(10)
(11) A person who holds a valid ticket for a winning straight/6-way box play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(11)
(12) A person who holds a valid ticket for a winning straight/12-way box play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(12)
(13) A person who holds a valid ticket for a winning straight/24-way box play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(13)
(14) A person who holds a valid ticket for a winning combo play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(14)
(15) A person who holds a valid ticket for a winning front-pair, mid-pair, or back-pair play is entitled to a prize as shown.
Figure: 16 TAC §401.316(g)(15)
(16) A person who holds a valid ticket for a winning Sum It Up play is entitled to a prize as shown. A Sum It Up prize is in addition to a prize, if any, for a straight play, a box play, a straight/box play, or a combo play.
Figure: 16 TAC §401.316(g)(16)
(h) Start of Play. The executive director shall determine the start date for Daily 4. The start date shall be no later than August 31, 2008.
(i) The executive director may authorize promotions in connection with Daily 4. Any current promotions must be posted on the commission's web site.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 21, 2007.
TRD-200701977
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Effective date: June 10, 2007
Proposal publication date: April 6, 2007
For further information, please call: (512) 344-5113