Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 9 - TEXAS LOTTERY COMMISSION › Chapter 401 - ADMINISTRATION OF STATE LOTTERY ACT › Subchapter B - LICENSING OF SALES AGENTS › Section 401.158 - Suspension or Revocation of License

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  The commission may suspend or revoke any license issued under this subchapter
				  if the commission finds that any factor listed as grounds for denial of a
				  license under §
										RSA
				  401.153<subdiv>(b)</subdiv> of
				  this title (relating to Qualifications for License) or any factor listed in
				  subsection (b) of this section apply to the licensee. The commission shall
				  inform the sales agent in writing of the decision to suspend or revoke a
				  license for any of these reasons. In addition, in the event of a license
				  suspension under this section, the director of the Lottery Operations Division
				  shall also inform the licensee of the terms under which the suspended license
				  may be reissued.
(b) Without
				  limiting the commission's ability to consider factors listed in §
										RSA
				  401.153<subdiv>(b)</subdiv> of
				  this title as grounds for suspension or revocation of a license issued under
				  this subchapter, the commission may also suspend or revoke a license for
				  reasons including, but not limited to, any of the following:
(1) licensee engages in telecommunication or
				  printed advertising that the director determines to have been false, deceptive
				  or misleading;
(2) licensee
				  conditions redemption of a lottery prize upon the purchase of any other item or
				  service;
(3) licensee imposes a
				  restriction upon the redemption of a lottery prize not specifically authorized
				  by the director;
(4) licensee fails
				  to follow instructions and procedures for the conduct of any lottery game,
				  lottery special event or promotion;
(5) licensee and/or its employee(s) exhibit
				  discourteous treatment including, but not limited to, abusive language toward
				  customers, commission employees or commission vendors;
(6) licensee fails to establish or maintain
				  reasonable security precautions regarding the handling of lottery tickets and
				  other materials;
(7) licensee fails
				  to deface a validated ticket;
(8)
				  licensee sells a draw game ticket for a draw that has already taken place;
(9) licensee fails to follow
				  validation procedures, including, but not limited to, paying a claim without
				  validating the ticket, failing to pay a valid prize after validating a
				  customer's winning ticket, or retaining a customer's winning ticket that has
				  not been validated;
(10) licensee
				  violates any directive or instruction issued by the director of the Lottery
				  Operations Division;
(11) licensee
				  violates any express term or condition of its license not specifically set
				  forth in this subchapter;
(12)
				  licensee sells a scratch ticket from a game that has closed after the date
				  designated for the end of the game;
(13) licensee refuses to refund or properly
				  cancel a Pick 3 or Daily 4 ticket;
(14) licensee fails to return an exchange
				  ticket to a prize claimant claiming a prize on a multi-draw ticket if an
				  exchange ticket is produced by the licensee's terminal;
(15) licensee fails to keep accurate and
				  complete records of all tickets that have not been sold from confirmed, active,
				  and settled packs;
(16) licensee
				  fails to meet any requirement under §
											RSA
				  401.368 of this title (relating to Lottery
				  Ticket Vending Machines), if the licensee has been supplied with a self-service
				  lottery ticket vending machine by the commission;
(17) licensee fails to take readily
				  achievable measures within the allowed time period to comply with the barrier
				  removal requirements regarding the ADA;
(18) licensee fails to prominently post
				  license;
(19) Licensee sells
				  tickets that were assigned to another licensed location;
(20) licensee knowingly sells a ticket or
				  pays a lottery prize to another person who is:
(A) an officer or an employee of the
				  commission;
(B) an officer, member,
				  or employee of a lottery operator;
(C) an officer, member, or employee of a
				  contractor or subcontractor that is excluded by the terms of its contract from
				  playing lottery games;
(D) the
				  spouse, child, brother, sister, or parent of a person described by subparagraph
				  (A), (B), or (C) of this paragraph who resides within the same household as
				  that person;
(21)
				  Licensee endangers the security and/or integrity of the lottery games operated
				  by the commission;
(22) licensee
				  intentionally or knowingly sells a ticket at a price the licensee knows is
				  greater than the price set by the executive director;
(23) Licensee charges a fee for lottery
				  ticket purchases using a debit card and/or requires a minimum dollar amount for
				  debit card purchases of only lottery tickets;
(24) licensee sells tickets at a location
				  that is not licensed;
(25) licensee
				  intentionally or knowingly sells a ticket by extending credit or lends money to
				  enable a person to buy a ticket;
(26) licensee intentionally or knowingly
				  sells a ticket to a person that the licensee knows is younger than 18
				  years;
(27) licensee intentionally
				  or knowingly sells a ticket and accepts anything for payment not specifically
				  allowed under the State Lottery Act;
(28) licensee sells tickets over the
				  telephone or via mail order sales, establishes or promotes a group purchase or
				  pooling arrangement under which tickets are purchased on behalf of the group or
				  pool and any prize is divided among the members of the group or pool, and the
				  licensee intentionally or knowingly:
(A) uses
				  any part of the funds solicited or accepted for a purpose other than purchasing
				  tickets on behalf of the group or pool; or
(B) retains a share of any prize awarded as
				  compensation for establishing or promoting the group purchase or pooling
				  arrangement;
(29)
				  licensee intentionally or knowingly alters or forges a ticket;
(30) licensee intentionally or knowingly
				  influences or attempts to influence the selection of a winner of a lottery
				  game;
(31) licensee intentionally
				  or knowingly claims a lottery prize or a share of a lottery prize by means of
				  fraud, deceit, or misrepresentation; or aids or agrees to aid another person or
				  persons to claim a lottery prize or a share of a lottery prize by means of
				  fraud, deceit, or misrepresentation;
(32) licensee intentionally or knowingly
				  tampers with, damages, defaces, or renders inoperable any vending machine,
				  electronic computer terminal, or other mechanical device used in a lottery
				  game, or fails to exercise due care in the treatment of commission
				  property;
(33) licensee:
(A) induces another person to assign or
				  transfer a right to claim a prize;
(B) initiates or accepts an offer to sell the
				  right to claim a prize;
(C)
				  initiates or accepts an offer of compensation from another person to claim a
				  lottery prize; or
(D) purchases,
				  for anything of value, a lottery ticket from a person who is not a licensed
				  lottery retailer;
(34)
				  licensee intentionally or knowingly makes a statement or entry that the person
				  knows to be false or misleading on a required report;
(35) licensee fails to maintain or make an
				  entry the licensee knows is required to be maintained or made for a required
				  report;
(36) licensee knowingly
				  refuses to permit the director of the Lottery Operations Division, the
				  executive director, commission, the lottery operator, the employees or agents
				  of the lottery operator, or the state auditor to examine the agent's books,
				  records, papers or other objects, or refuses to answer any question authorized
				  under the State Lottery Act;
(37)
				  licensee intentionally or knowingly makes a material and false or incorrect, or
				  deceptive statement, written or oral, to a person conducting an investigation
				  under the State Lottery Act or a commission rule;
(38) licensee commits an offense of
				  conspiracy as defined in the State Lottery Act;
(39) licensee sells or offers for sale any
				  interest in a lottery of another state or state government or an Indian tribe
				  or tribal government, including an interest in an actual lottery ticket,
				  receipt, contingent promise to pay, order to purchase, or other record of the
				  interest;
(40) licensee incurs four
				  (4) notices of nonsufficient fund transfers or non-transfer of funds within a
				  12-month period;
(41) licensee
				  fails to pay the full amount of money owed to the commission after a
				  nonsufficient funds transfer or non-transfer of funds to the commission's
				  account; or
(42) licensee has
				  violated a provision of the State Lottery Act, Government Code, Chapter 466, or
				  a commission rule adopted under the State Lottery Act.