Part 9.
TEXAS LOTTERY COMMISSION
Chapter 401.
ADMINISTRATION OF STATE LOTTERY ACT
Subchapter E. RETAILER RULES
16 TAC §401.369
The Texas Lottery Commission proposes new rule 16 TAC §401.369
relating to online self-service terminals. The new rule sets out the requirements
imposed on a retailer for placement of a self-service terminal at the retailer's
location. Specifically, the rule defines the term self-service terminal, indicates
that a retailer must comply with the criteria established by the Executive
Director for placement and retention of a self-service terminal, requires
the retailer to certify whether the location is greater than 1,000 feet from
a pre-school, elementary or secondary school, provides for the use of a remote
shut off device for locations within 1,000 feet of a pre-school, elementary
or secondary school, requires the retailer to keep the self-service terminal
stocked with printer supplies and online roll stock, requires the retailer
to undergoing training relating to use and maintenance of the terminal, and
requires the retailer to allow service technicians access to the terminal
during normal business hours.
Lee Deviney, Financial Administration Director, has determined for each
year of the first five years the section is in effect there will be the following
fiscal implications, net revenue gain to the state, for state or local government
as a result of enforcing or administering the rule: FY 2004, $4.3 million;
FY 2005, $5.9 million; FY 2006, $5.9 million; FY 2007, $5.9 million; and FY
2008, $5.9 million. There will be no fiscal implications for local government
as a result of enforcing or administering the rule. There will be a positive
fiscal impact on small businesses, micro businesses or local or state employment
as a result of implementing the section as follows: FY 2004, $0.6 million;
FY 2005, $0.8 million; FY 2006, $0.8 million; FY 2007, $0.8 million; and FY
2008, $0.8 million.
Toni Erickson, Acting Marketing Director, has determined that each of the
first five years the section as proposed is in effect, the public benefit
anticipated as a result of the proposed amendments is the potential for additional
revenue to the State as well as to the retailer. Additionally, another benefit
to the retailer is potential lower operating costs since the self-service
aspect of the terminal reduces the need for labor time for the retailer.
Written comments on the proposed new rule may be submitted to Kimberly
L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin,
Texas 78761-6630. Comments must be received by the Commission within 30 days
after the proposed new rule is published in the Texas Register to be considered.
The new rule is proposed under Government Code, §466.015
which authorizes the Commission to adopt all rules necessary to administer
the State Lottery Act and to adopt rules governing the establishment and operation
of the lottery, and under Government Code, §467.102 which authorizes
the Commission to adopt rules for the enforcement and administration of the
laws under the Commission's jurisdiction.
§401.369.Online Self-Service Terminals.
(a)
No retailer may sell commission online game tickets from
an online self-service terminal, except those online self-service terminals
supplied and placed by the commission. For purposes of this section an online
self-service terminal is defined as a terminal that dispenses online lottery
game tickets without the assistance of a retailer's personnel.
(b)
Online self-service terminals may be placed by the commission
or the commission's designated representative in a retailer’s business
location based upon criteria established by the executive director. The criteria
may include, but is not limited to, consideration of the location of the retailer,
the type of the business to which a license is assigned, the size of the retailer’s
location and a minimum sales criteria which shall be provided to the retailers
prior to implementation of such criteria.
(c)
A retailer must maintain the minimum sales criteria established
by the executive director to retain an online self-service terminal. A retailer
who does not maintain minimum sales in accordance with such sales criteria
may be placed in a sales review period unless good cause exists as determined
by the executive director. After the retailer's sales review period has expired,
the retailer's sale of online lottery game tickets shall be reviewed. If the
retailer has not maintained the minimum sales level in accordance with the
minimum lottery ticket sales criteria during such sales review period, the
commission or commission's designated representative may remove the online
self-service terminal.
(d)
The minimum sales criteria established by the executive
director shall be provided to retailers at least 30 days prior to implementation
of such minimum sales criteria.
(e)
Online self-service terminals may only be placed within
the retailer's location in a site and manner approved by the commission.
(f)
A retailer shall certify whether or not the location is
greater than 1,000 feet from any preschool, elementary school, middle school
or high school.
(g)
A retailer's location within 1,000 feet from any preschool,
elementary school, middle school or high school shall be equipped only with
an online self-service terminal(s) containing a remote shut off device.
(h)
A retailer shall keep the online self-service terminal
stocked with printer supplies and online roll stock that is authorized by
the commission for use with the online self-service terminal.
(i)
A retailer shall maintain the key to the self-service terminal.
If the retailer loses the key, the retailer shall pay $100 per terminal for
the service call to install new locks and key.
(j)
A retailer and certain retailer employees shall undergo
required training and comply with requirements identified in the training
relating to the use and maintenance of online self-service terminals.
(k)
A retailer shall allow service technicians access to the
online self-service terminal during normal business hours to service and repair
the online self-service terminal.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on December 19, 2003.
TRD-200308702
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: February 1, 2004
For further information, please call: (512) 344-5113
Chapter 402.
BINGO REGULATION AND TAX