Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 9 - TEXAS LOTTERY COMMISSION › Chapter 401 - ADMINISTRATION OF STATE LOTTERY ACT › Subchapter E - RETAILER RULES › Section 401.362 - Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Damaged or Rendered Unsaleable, for Winning Lottery Tickets Paid and for Lottery-Related Property

Current through Reg. 49, No. 28; July 12, 2024
(a) Responsibility for
				  Lottery Tickets Received.
(1) Except as otherwise
				  expressly provided by this subsection or by §
											RSA
				  401.370 of this title (relating to Retailer's
				  Financial Responsibility for Lottery Tickets Received and Subsequently Stolen or
				  Lost), each retailer shall bear the risk of loss for all lottery tickets received.
				  Receipt of tickets by a retailer shall constitute a purchase of such tickets, and
				  each retailer shall be liable to the commission for the retail sales price of such
				  tickets, less any applicable commission or credit.
(2) A retailer may return full and complete packs
				  of unactivated tickets in original condition and receive an accounting indicating
				  that the packs have been removed from the retailer's inventory. Nothing in this
				  subsection waives the requirements of §
											RSA
				  401.361 of this title (relating to Required Sales
				  of Lottery Tickets).
(3) A retailer must
				  report damage to or destruction of tickets to the commission's lottery operations
				  division through the retailer hotline as soon as reasonably practicable under the
				  circumstances, but no later than three (3) weeks from the occurrence or event. A
				  ticket is considered "damaged" or "destroyed" if rendered unsaleable through
				  circumstances or events not the fault of the retailer.
(4) Under the circumstances set out in this
				  paragraph, the director may credit a retailer for activated tickets that are damaged
				  or destroyed.
(A) The director may credit a
				  retailer's account for a range of activated tickets in a pack reported as damaged or
				  destroyed providing:
(i) no validations have
				  occurred on tickets in the range reported as damaged or destroyed;
(ii) the retailer has complied with paragraph (3)
				  of this subsection;
(iii) if the tickets
				  were damaged or destroyed by fire, the retailer made a formal report of the fire to
				  appropriate fire department authorities within 24 hours of the discovery of the
				  fire, and has provided to the commission's lottery operations division a copy of a
				  report by a Fire Marshal that identifies the location and the cause of the fire or
				  the commission's lottery operations division has obtained written documentation from
				  lottery operator field staff verifying the reported fire damage; or
(iv) if the tickets were damaged or destroyed
				  other than by fire, the retailer has provided to the commission's lottery operations
				  division a copy of an insurance claim or a receipt for repairs that identifies
				  damage at the retail location that is related to the damaged or destroyed
				  tickets.
(B) The director may
				  not grant credit under subparagraph (A) of this paragraph in connection with more
				  than two separate incidents in a twelve-month period.